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Voluntary redundancy and retirement

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  • onlyroz
    onlyroz Posts: 17,661 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Well you've given us a lot to think about and a way forward to get the answers we need. And yes, it might be the case that it is worthwhile taking a cut in potential pension income if the benefit is that he can leave now rather than having to stick it out for another few years.

    I'm thinking that the £30k should get us most of the way through to the point at which he can actually start drawing a pension - or perhaps we could take £40-50k and pay a bit of tax on some of it, then putting the rest into a SIPP that could be drawn down at 55.

    As for when he starts to draw on his company pension - that's something we would have to carefully consider. I do think that within a few years we would be able to live on my income alone, meaning that any pension he gets could be considered as his own personal spending money.
  • zagfles
    zagfles Posts: 21,409 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Has he not got a scheme booklet explaining how the pension scheme works? It's vital to understand this as with some schemes it can be much better to take the pension on retirement and in others it can be better leaving it.

    I don't understand how taking the pension now requires "approval from the pension board". Unless he is in some unusual occupation that allows early retirement, or it's on ill-health grounds, you can't usually (ever?) take your pension before 55 unless it's a non discretionary right. Not one requiring approval by the trustees/company.
  • xylophone
    xylophone Posts: 45,604 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I have asked OP for clarification on this point but as yet there has been no answer as to whether this scheme has any form of protected pension age.
    My husband is considering applying for voluntary redundancy. He is 53 and has been advised that his payout could be around £100k. He would like to retire and has been told that he could do so immediately upon approval from the pensions board

    The above is obscure because of the reference to "retirement".

    Is the case that he can leave (rather than "retire") at age 53 with a "golden handshake" of three times annual salary and the right to draw an unreduced pension at 55?

    Is the reference to approval by the pensions board a red herring and the scheme rules do give the right to those enrolled before 6 4 2006 to draw an immediate pension before age 55, even if only on redundancy?

    Or can he draw an actuarially reduced pension at 55?

    If there is a VR offer available at the moment, I am rather surprised that there isn't a sheaf of documents available to the staff concerning the bribes - well, let us say terms of participation.:)

    Unless the OP's husband is so fed up he has approached his manager for a one off deal?
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Couldnt he get another job for a few years? At least till 55, then take the new DC pension he funded with the excess redundancy?

    53 is pretty young still.
  • onlyroz
    onlyroz Posts: 17,661 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    xylophone wrote: »
    I have asked OP for clarification on this point but as yet there has been no answer as to whether this scheme has any form of protected pension age.



    The above is obscure because of the reference to "retirement".

    Is the case that he can leave (rather than "retire") at age 53 with a "golden handshake" of three times annual salary and the right to draw an unreduced pension at 55?

    Is the reference to approval by the pensions board a red herring and the scheme rules do give the right to those enrolled before 6 4 2006 to draw an immediate pension before age 55, even if only on redundancy?

    Or can he draw an actuarially reduced pension at 55?

    If there is a VR offer available at the moment, I am rather surprised that there isn't a sheaf of documents available to the staff concerning the bribes - well, let us say terms of participation.:)

    Unless the OP's husband is so fed up he has approached his manager for a one off deal?
    I am trying to find out the answer to all these questions and hope to get them over the next few days. I'll also get him to bring home the documents regarding the voluntary redundancy package on offer.
  • onlyroz
    onlyroz Posts: 17,661 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    atush wrote: »
    Couldnt he get another job for a few years? At least till 55, then take the new DC pension he funded with the excess redundancy?

    53 is pretty young still.
    I'm sure he could get another job if we really needed him to, but we are hoping that this won't be necessary.

    Apart from finding the job stressful there are distinct advantages to having him at home (no childcare costs for a start).
  • xylophone
    xylophone Posts: 45,604 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Apart from finding the job stressful there are distinct advantages to having him at home (no childcare costs for a start).

    He thinks that minding the children will be a walk in the park?:)
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    xylophone wrote: »
    He thinks that minding the children will be a walk in the park?:)

    Swings and roundabouts, mate, swings and roundabouts.
    Free the dunston one next time too.
  • onlyroz
    onlyroz Posts: 17,661 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    xylophone wrote: »
    He thinks that minding the children will be a walk in the park?:)
    They're not babies anymore and he already picks them up from school twice a week.
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    onlyroz wrote: »
    I'm sure he could get another job if we really needed him to, but we are hoping that this won't be necessary.

    Apart from finding the job stressful there are distinct advantages to having him at home (no childcare costs for a start).

    If the CB isnt in his name, he needs to egister as a carer to get NI?
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