Early retirement / voluntary redundancy

ja4me

I have worked for local government for 20 years (17 years term time only) and I am 55 I have been accepted for ER/VR.

Is it wise to take the highest lump sum redundancy and pension combined. I am intending to work part time.


Or have a higher pension and smaller lump sum. The smallest pension I can take is £500 per month highest just over £600.

cyclonebri1

ja4me wrote: »

I have worked for local government for 20 years (17 years term time only) and I am 55 I have been accepted for ER/VR.

Is it wise to take the highest lump sum redundancy and pension combined. I am intending to work part time.


Or have a higher pension and smaller lump sum. The smallest pension I can take is £500 per month highest just over £600.

Purely from a personal perspective I would simply ask myself if I actually needed the cash right now??

You will have the redundany package too so the larger pension over a longer period may be your best option.

I went for the highest cash lump sum at the same age, 55, interest rates haven't done me any favours though, :eek:;);).

It's your money and your choice, hope you make the right one:)

CLAPTON

depends upon the numbers which you haven't quoted
and on your person situation (do you have debts etc)

ja4me

I have a small mortgage (20,000) credit cards (6,000) service charges (4,000) these are only debts.

I was thinking of paying these off and I will have no debt just day to day living expenses.

If I paid these off I would have about £40,000 - this is the amount left if I took smaller pension and largest lump sum

JOHNGT

OK, so your max lump sum is about £70K but what is a) the reduced pension that goes with it and b) the pension you would get if you took no tax-free lump sum?

If you provide these figures we can work out whether taking cash is a good financial choice.

Can you also state that if you did not take cash so kept your debts, whether you can afford to service the repayments - i.e. how much do these cost in total each month and when does each one end (except credit card which is open ended).

cyclonebri1

ja4me wrote: »

I have a small mortgage (20,000) credit cards (6,000) service charges (4,000) these are only debts.

I was thinking of paying these off and I will have no debt just day to day living expenses.

If I paid these off I would have about £40,000 - this is the amount left if I took smaller pension and largest lump sum

So considerable debts?

Maybe disposing of those would leave you financialy and mentally better off??