Should i go or should i stay?

twc58

I have worked for a bank for 30 years plus and have the opportunity of redundancy.
I am single live in my own property with a very small mortgage of10k.If I leave I will receive a redundancy payment of about 50k plus I can take my pension early( a lump sum plus an annual pension of 12k)this has been reduced cos I will be taking it at age 52.
I have no other debts.
On paper it looks like a sure bet but having worked for the same company albeit in different roles I am lacking confidence in terms of getting a new job particularly in the current climate
THIS IS MY ONLY CONCERN
I don't want to stay in Banking.I would hope to get something part time only maybe 3 days a week.
What would you do?

senwar

With experience like you have, I'd think about getting into consultancy work. Its a path many experienced professionals take.

Obviously only you can make the decision, but I know what I'd do if I was you - I'd take the opportunity and go for it. You get a good pay off, a chance to do something different and no major financial worries.

There are jobs out there - I was fortunate enough to start a new job the Monday after taking redundancy from my previous job. I'd got 21 years service, and am 38. I've started doing consultancy work for a new employer and love it.

But as I say, the decision can only be made by you. its a scary decision, but in some cases, its definitely worth taking the chance. Good luck in what you decide.

getmore4less

Is the pension index linked?

Some banks are starting to reduce their generous redundancy packages?

Can you live on the £12k with no mortgage?

What happens if you delay taking the pension,

can you chose when to take it
Is it frozen or does it have some index linking.

Infidel

GO! Work less and enjoy life for a while.

Besides, the world ends in 2012 anyway

kazwookie

Take the money and go.

Good luck for the future

twc58

thanks
yes it is index linked not frozen and i can take it straightaway

u are right some banks will be starting to reduce redund packages

i can live on 12 k plus interest from my lump sum redudnancy and pension but i would want to take on some part time work

ailuro2

If you can live comfortably on the money, then go for it, 52 is not old, you will find something you can really enjoy while you're still young enough to be able to do it - even a bit of voluntary work would be good, doing something you've always wanted to (underpriveliged kids, teen projects, animal shelters etc or just going and visiting people in hospital / care homes etc)

MFWannabe

GO. Take the redundancy and pay off your mortgage. Then as you said you could live off the 12k a year anyway but would choose to work; but you could choose to do a job that you want to do. If you stay are going to be happy working in the bank for another X number of years? By which time you say that they may be reducing redundancies anyway?
I think if you stayed you would just wonder what if all the time.
Take the money and run and enjoy life a bit. That's certainly what i'd do if i had that kind of opportunity.

Uncertain

Providing you are confident you can keep yourself occupied with things you will enjoy more than work then take the money and go.

The NI contribution rules change very soon so you will only need 30 years contributions for a full state pension. So, you probably won't need to pay an NI which also helps. Probably worth getting a state pension forecast just to confirm.

downshifter

GO! There's a whole world out there, once you're not tied to the nine to five you'll have time to discover it. Volunteering is great as already mentioned. You can easily live off £12k a year even if you never work again, and at least it will buy you time to research a new career, hobbies or other options. What are your dreams? You don't have to follow the traditional route until you're 65 when you will then have less time to follow a few of those dreams. Experiencing life outside of your comfort zone is so liberating.

Good luck, please let us know how you get on

DS

getmore4less

twc58 wrote: »

thanks
yes it is index linked not frozen and i can take it straightaway

u are right some banks will be starting to reduce redund packages

i can live on 12 k plus interest from my lump sum redudnancy and pension but i would want to take on some part time work

OK if you can live off the current pension and cash pot then I would seriously consider cashing in the service now.

Cut your budget to be comfortable on the new income levels and keep an eye on inflation/costs. rememebr the state pension will kick in to boost the income.

If planning to work then it might be worth claiming contributions JSA 6 months of extra money if you don't find anything.


Now you have the basics covered any earning you make is ME money for all those extras, you can use this to do extra capital spends that don't impact the general budget in a negative way.

new cars, holidays, extra nights out better TV, what ever.

Most importantly you can so stuff you want to do.