Should I or shouldn't I?

gddik

I'm 55, and after several years of hell induced by family health issues (almost lost my 19 year old son to leukaemia, then did lose my wonderful wife to a brain tumour) I now wish to step back from my well-paid but frustrating job in local government, and leave afetr Christmas. My current salary is around £38k.

I have about £130k in savings (£4k of which is in an Icesave ISA!). The rest is spread around unlinked banks' savings accounts.

What I'd like to do is to get a no-hassle job that pulls enough in to pay the bills (about £15-16k would be enough) and to stave off the pressure on my savings to make them go further. I can draw my Local Gov't pension at 60, so I don't think there will be any particular pressure on my savings until then.

I'll get about £40k in a lump sum at 60, and about £15k per year thereafter.

My only concern is being able to get the £15-16k p.a. job.

My question is... is this a flawed plan? Am I being over-simplistic, and are there any potential nasties that I have not taken into account? The current threat of a recession is worrying, but should it stop me doing what I plan?

Any insight or experience-based advice would be VERY welcome.

TIA

Gddik

gddik

Hmmm - the lack of response is discouraging.

Maybe it is too broad a question, but I'm now seeking guidance from the pension fund administrators to see if reducing my hours to part time is a possibility, without loss of the pension that I've accrued over 28 years or so.

gddik

B.E.N

Hi there,

Could you perhaps move to a lower position in local Government? Perhaps within another council, or elsewhere in the Civil Service? Or even, perhaps, as a part-time consultant? (You didn't mention your area of expertise)

As for moving into another line of work, I don't think this is that practical - To be frank, not many employers are going to want to start employing someone that's only got 5 years to retirement age. Merely, because if there is any training involved, they may not get a worthwhile return on their investment. And, if there's no training involved, it's liable to be a minimum (or at least lower-paid) job.

There is a possibility, of course, that if you are working in a managerial role, that you could then become a manager elsewhere, but managerial roles aren't usually regarded as stress-free, so perhaps this isn't the best way to go. However, if you are working in, say I.T., for example, you may be able to find a position in another company that's not as stressful (nothing against I.T. workers intended!) in another company.

I think that for more accurate suggestions, you'll have to give us a bit more detail regarding your current position and what it entails. Employers do like 'transferable skills', so perhaps there is an avenue into another line of work that you would enjoy and would fulfil the various criteria that you have set.

One last issue, is that of the Local Gov't Pension - if it is a 'final salary' scheme, there may be implications for you moving into a lower position (or cutting hours for less pay) shortly before retirement. This could cost you dearly, so it's something important to consider before setting anything in concrete.

Primrose

I can well understand that you feel mentally and physically battered and want "OUT" of any further stress. But you've asked for "flaws" so I'll voice a few thoughts. Having worked in the private sector for many years and through several recessions and seen at first hand the effect they have. I greatly suspect that the "no hassle" jobs around £15K which you would be seeking are rapidly going to disappear as companies make existing staff redundant. So if you leave the security of Local Government, I'm pretty sure you will discover that the jobs are no longer out there. This is already starting to happen and will only get worse. And even those people currently earning £15K who hate their jobs will now be desperately hanging onto them so vacancies will be fewer, and as people leave, they will not be replaced and jobs will be amalgamated. Also, you are hoping to live off your savings for five years. With inflation rising very rapidly, you may find this becomes increasingly difficult as your savings become eroded and interest rates fall. Do you have any special skills which would allow you to become self-employed? That might be an alternative route to consider. The other option is to ask your employers if they would give you a two or three month sabbatical on "Health Grounds". They are probably aware of the family problems you have suffered and obviously your health has to be the prime consideration. If it is possible to have a complete break for this period, you might find you would be able to keep going a little longer, at least until the worst of the recession is peaking out, at which time you could reconsider your options Another way of judging how well you would survive financially is to hang onto your job for the next twelve months and have a trial run of disciplining yourself to live strictly within the forecast £15K of your annual pension. It will delay you implementing your plan, but the experience might show you where any possible reasoning flaws and minefields lie Good luck anyway.

lilac_lady

Would you be able to drop some hours at work instead of giving up your job? If so, you'd have more time to do what you want without the hassle of looking for a new job.

tsstss7

I think the problem here is that you wish to earn what to most is a relatively good wage while having little or no stress. There are two issues with this :-

1. There is no guarentee that a 16k wage will mean a stress free life - by which I imagine you mean little overtime and no need to take work home with you (mentally or physically)...Many employers see this as a good stepping stone wage for employees wishing to prove themselves and will still expect you to go the extra mile as would a younger member of staff hoping to be promoted.

2. Many employers will have a problem taking you seriously and doubt your committment to the work..more especially if they think you wish to "coast" to a stress free retirement.

I have a friend who when he works earns 75k plus (contract work) but can easily be out of a job for many months whilehe is lookinhg for his next -very stressful- position. He had the same plan as you and found it near to impossible to get even a minimum wage job so has ended up back in thesame line of business....

Primrose

tsstss7 is makes a very fair point about how some employers might view a middle aged person who has gone from a much higher paid job into a very low paid job. At your age (and this happens to most of us sooner or later as we grow older) you could also find yourself reporting into somebody who is much younger than yourself. Whilst this might not be a problem for you, it could well be a problem for them in that you could be regarded as a severe threat to their promotion prospects (even if you're not seeking promotion) because of all the extra knowledge and experience you've got. And if you do turn out to be far better qualified and more astute than your boss and you are a conscientious individual, this could end up being a highly frustrating experience.

gddik

Thank you, everyone, for your kind help. The general opinion seems to be to proceed with extreme caution, as the prospects of finding the kind of work that I ideally want appear to be very slim - which I was beginning to suspect after doing some initial research.

An added complication is that I live in Wales, and the opportunities are further limited by the need for fluency in Welsh, which I don't have.

I do have marketable skills, though, as I have 36 years of IT experience, and this gives me some options for self-employment.

I'm hoping that my pension can be protected against any short-term reduction in earnings, so that I can consider part-time working (preferably) or even taking a lower-paid job elsewhere in local government.

Part-time working would enable me to develop some self-employment options that would supplement my drop in salary, and give me the potential to test the water before taking the plunge when the waters are a little calmer.

If part-time isn't available, I can just stay put, frustrating though that would be. But there are lots of people who have a harder time at work than I do, so I really shouldn't complain!

The sabbatical isn't really an option, as I had two extended absences during the periods of family illness. My employer was extremely helpful and patient during those times, and I don't want to overdraw on my tolerance account! I do want to manage this in a way that causes least disruption to them and my colleagues, who have also been extremely kind.

Thanks again for all your suggestions and comments - they have been most helpful in opening my eyes to what I was beginning to suspect - now isn't the time to make such a drastic step.

All very much appreciated!

Primrose

This is obviously a rather lonely time for you, trying to mull through your options, especially in these uncertain economic times. I hope that whatever conclusion you come to, you are able to find an option that gives you a little more well-being in your lifestyle. Good luck for the future

Mojisola

gddik wrote: »

Thanks again for all your suggestions and comments - they have been most helpful in opening my eyes to what I was beginning to suspect - now isn't the time to make such a drastic step.

As things are so uncertain at the moment, this is probably right but don't switch off from the idea completely. Keep yourself open to possibilities and you never know what might turn up.

even_grumpier_old_man

I assume you are in the local government pension scheme; check with your council to see if you can go for flexible retirement. you retire and take pension/lump sum but carry on working in a lower graded and/or part time position. there might be a cost to the council as you are under 60, so they are within their rights to refuse, but nothing ventured, nothing gained. speak to your pensions officer in your council. good luck from a fellow traveller.