Should I take the plunge?

thescarfmyfatherwore

I have the opportunity to take VR/Early retirement from local government the VR is enhanced.

I will get lump sums from the VR and pension and pension payment (not huge amounts). Unfortunately the pension amount is not enough to live on by its self. I am pondering to use some of pot to reduce the mortgage by around 50% and therefore reduce my payments but this will still leave a shortfall on what I need to live on. The plus side is that i will not need to find full time employment as a p/time job will suffice (2 to 3 days a week). My biggest worry is that the PT job is going to be elusive and I will start eating away at the remains of my pot.

If I dont take VR there is the very strong chance of Compulsory Redundancy for around 10 to 20% of the staff in the department for April 2011 and further cuts in 2012..... and there wont be any enhanced VR in 2012.

Should I take the plunge!!! Any advice on where to find decent p/t work, I wont be setting my sights to high.

Thanks

getmore4less

If you don't take the pension how much better will it get if you stay on?

That would be my initial analysis.

Can you use any of the money to enhance the pension?
can you delay the pension to improve it.

When will state pension kick in?

What costs disapear if you stop work?

WhiteHorse

You've pretty much answered your own question. If you are sure about your assessment of the situation and redundancy with a much reduced package is on the horizon, then it may be best to jump ship now.

Drastically reducing your mortgage would certainly be a good thing, particularly as interest rates will inevitably go back up.

Work availability depends on your skills. Part-time bookeepers are always in demand for instance. Any area of expertise such as a particular field of law? If you just want a basic income, you could look at part-time retail jobs with someone like B&Q.

thescarfmyfatherwore

getmoreforless

Thanks for the response

1. Good question, until Uncle George Osborne announces his ideas on culling LGP's no-one knows, hoever one of the options is to go from final sdalary to average earnings , not good.
2.Not gone into the final detail on that at the moment.
3. State pension 9 years at todays rate!
4. None really.

thescarfmyfatherwore

Thanks Whitehorse.

Yolina

I would consider:
- How big is the shortfall you'd need to make up? Any expenses you could cut back on to narrow the gap?
- If you use part of your redundancy payment to reduce your mortgage, how long could you live using what's left of your pot? I wouldn't worry too much about eating into it - that's exactly why it's given to you: to tide you over until you can find something else
- It's probably easier to find a part-time job than full time
- how much worse off would you be if you decide not to go for VR and are made redundant a few months down the line?

From personal experience, the earlier you go, the more generous the companies are... there's usually far less money available to dish out later on.

smitchy73

I'm in roughly the same boat and also in LG, we've been approached about early exit, and the figures were almost twice what was offered last year, however, if you are selected you have to leave by 30th March, so we get PILON(pay in lieu of notice). I've applied for it, as under current wages, i'll have an amount of 13-15 months salary tax free based on what I take home just now, plus I wouldn't have to find the money for travelling expenses either, so it gives me a chance to regroup and reorganise things.
I have applied for it, so that I can get the actual figures for what I would receive, and if acceptable, I sign on the line and leave, or if I don't agree with the figures I just say I have changed my mind.

I don't think anyone can really tell you what to do, but if you're in similar circumstances then it won't be hard to get the official figures, then spend a couple of days working things out and then completely decide, but if you're like me, whatever you decide to do, don't look back and regret it if it turns out bad, just move on to the next chapter.

I fancy shelf filling in Asda for a wee extra pocket money earner!!

thescarfmyfatherwore

smitchy73

Have got my figures, the VR is less than on offer last year and the next round it maybe down ro statutory payout? I was told today that i need to close this door before i can open up another, so need to make my mind up in the next few days.

Thanks for the advice and good luck whatever you choose to do.

TSMFW