Severances reach $26.1 trillion in 2025 and nearly 54% of these were allocated to housing
Severances were used for the purchase or improvement of housing Photo: iStock
TL;DR
- Severance funds reached a historic high of $26.1 trillion in 2025, a 17% increase from the previous year.
- Over 54% of severance withdrawals in 2025 were used for housing: $3.3 trillion for improvements/debt and $2.9 trillion for purchases.
- Severances can be used for various housing options, including purchasing new or used homes, building on own land, renovations, and paying off mortgages.
- The legal deadline for employers to deposit 2025 severance funds is February 16th.
- Fedelonjas advises seeking professional guidance before making housing investment decisions with severance funds.