Voluntary redundancy offer

jon2432

Having never been in this situation before, I'm not sure of the questions i should be asking.

I've been offered voluntary redundancy, if i go at 55 i get a lump sum of £50k. I can also take my pension early which will be £11,500 per annum plus 3x lump sum.

What sort of things should i be comparing and questioning. If i remain until i'm 60 i get a pension of £15,500 with 3X lumpsum etc.

What do you consider in cases like this. I would have to find another job if i took the offer to make up my shortfall in wages etc.

Any ideas what i should be looking for etc or questioning or comparing.

BobQ

jon2432 wrote: »

Having never been in this situation before, I'm not sure of the questions i should be asking.

I've been offered voluntary redundancy, if i go at 55 i get a lump sum of £50k. I can also take my pension early which will be £11,500 per annum plus 3x lump sum.

What sort of things should i be comparing and questioning. If i remain until i'm 60 i get a pension of £15,500 with 3X lumpsum etc.

What do you consider in cases like this. I would have to find another job if i took the offer to make up my shortfall in wages etc.

Any ideas what i should be looking for etc or questioning or comparing.

You appear to be taking a significant drop in pension for retiring early (quite usual). The figures you quote.... what is the normal retirement age? If its 60, then is the figure you quote at 55 the pension earned at that point? Or is it the pension you would be paid at 55? There is a difference and there may be a further actuarial reduction for early payment.

Do you want to go? If so then what are your chances of getting another job? If they are low you should consider what the future will hold. You will only get JSA for a limited period and it will probably not be paid for several weeks if you volunteer to go. After that you will not be eligible for many benefits (due to your pension income). Not sure what your health is like but you may have a long time until you collect a state pension

What sort of deal do you get for volunteering? Its apparently not statutory redundancy payments. Does ther £50K include the pension lump sum (£34.5K). If its additional you could live on that for a while. Can you take the redundancy without retiring?

What happens if you say no? Will they eventually make you compulsory redundant? Will the deal be worse?

If you can easily get a job and you get a good redundancy package why not leave your pension until normal retirement age for the scheme and get more pension at that point. But you can change your mind about the time you draw it.

So I would say a lot depends on how easy you can get a job and what its likely to pay.That depends on mareketable skills but the climate is not good for those in their late 50s.