Over the Christmas/New Year break I read plenty of news stories about Australia’s major mining houses (BHP/BMA, Anglo, Santos, Rio etc.) continuing their cost cutting measures by shedding staff and contractors. I’ve spoken with many people who have been impacted by this personally and whilst the majority saw it coming, it’s still a difficult situation to deal with.
So what should be done? Apart from the obvious job hunting, there may be some other things you can do in relation to your superannuation and insurance. With any change in circumstance whether it be employment, starting a family, buying a house and so forth, you should review your superannuation and insurance needs.
For example, if you’ve just left the mining industry, or have taken on a new role, it’s imperative that you review your personal insurances. Chances are your salary has changed and from the insurance companies point of view your occupation rating may have changed. What does this mean? Simply, it means you could be over insured, under insured or paying inappropriate premiums due to your change in occupation.
If you were previously working as a geologist earning $150,000 per year and now you’re in a different role on a lower income, you may be paying higher premiums than you need to be. Depending upon the structure of your existing insurances, it may be appropriate to make some changes. Why pay more than you need to? Particularly if what you’re paying for may no longer be appropriate to your needs.
2016 may be a tough year for some. There’s little point dwelling on things that are beyond our control. Focus on the things you can control and take the opportunity to review and improve your superannuation and insurance. Don’t just simply “set it and forget it”. Changes you make now (however small) will have a big impact in the long term.