Implications of giving up work?

simonineaston

Hi WelshMoney,
a couple of things spring to mind - 200k is enough to give you choices - even just having that money tucked away somewhere safe for the time being, will give you the opportunity to Feel Good about things. Secondly, you now have the flexibility to look for different sorts of work, either a temporary easy-peasy job, maybe part-time, while you find somewhere to work where you can enjoy the job (Good Luck with that one ;-) or else, mix and match - find work you can tolerate, and add the salary to your income from investments to end up with a monthly sum you need. In order to achieve all this, start by working out exactly what you will need on a monthly basis - be realistic. Once you've done that task, you can slot all the other pieces into place. Have Fun!!
BTW, a friend of mine who, like you, has always found the world of permanent work difficult, has recently got a lot of satisfaction by working as an extra, in film and telly... just a thought!

steampowered

£200k is not enough to live off for an extended period of time. And you will probably need it to supplement your pension.

In your head I think you need to separate the inheritance from the job issues you are experiencing. These are two separate issues.

If you do not like your job, start searching for a new one. But I wouldn't resign from your current job until you find something else. If you end up being unemployed for a long period of time that will make you less employable.

Eco_Miser

steampowered wrote: »

£200k is not enough to live off for an extended period of time.

I found half that more than sufficient to live off the income for the seven years between retiring and taking my pension. I calculated it would last me over forty years, if I were careful.
It depends how much the OP needs to live comfortably. If they can manage on £4k a year (I did, but that was then) then £200k could last them to age 101 (assumes the investment return just matches inflation, should be better).

OP, know that just spending your inheritance to live on until pension age, gives you £12,500 a year (beware of inflation though). Invest most of it to give you an income and it will last longer and/or you can spend more. Make sure you pay sufficient NI contributions to get your full state pension.

So you know you can quit your job whenever you want, so perhaps with that knowledge you can keep it until you find a more satisfying, perhaps less well paid one.

You have MH problems, perhaps an MH charity has low paid jobs or volunteer positions that will give you the social side of work, without the stress of your present position?

Mojisola

welshmoneylover wrote: »

I have MH issues and I just cannot tolerate the stress of working

I only go as I enjoy the social side of work but I desperately need a better work/life balance.

Eco_Miser wrote: »

So you know you can quit your job whenever you want, so perhaps with that knowledge you can keep it until you find a more satisfying, perhaps less well paid one.

I second this ^

Knowing that you have the option of just walking away if you want to can reduce the stress of a job enormously. It gives you power and control over your life.

As others have suggested, I would look for a part-time job that isn't too stressful and use your lump sum to cover the rest of your costs.

With more time on your hands, you may find you can reduce your costs by growing some veggies, shopping around to find bargains, making things at home, etc.

If the job is really intolerable, it could be worth the risk of leaving and taking a couple of months to reduce your stress levels while looking for another job. Weigh up the stress of going to this job every day versus the more rapid reduction in your capital.

Engineer87

The only thing id day is iv always found it easier to get work when you've got work if you know what I mean. Why not start looking now while still working and who knows in a few months?

welshmoneylover

Thank you all for your comments. I fully appreciate that I am very lucky the money will give me choices but it's not a fortune to be squandered so I have decided to remain in my job and the powers that be have allowed me to go part time so I can pursue other interests.

dividendhero

xylophone wrote: »

You can check your pension here

https://www.gov.uk/check-state-pension

https://www.gov.uk/new-state-pension/how-its-calculated

Thanks for links - but it's odd how occupational pensions automatically send you an annual statement, but no such obligation with the state pension..

greenglide

Thanks for links - but it's odd how occupational pensions automatically send you an annual statement, but no such obligation with the state pension..

DB schemes in particular generally don't send send annual statements when you leave the employment as there is no "new money" put in.

To supply annual statements of the State Pension would cost a huge amount of money. Say 25 million forecasts per year to produce and mail plus the huge fall out to be handled (address out of date, queries over amounts etc).

There was an exercise in 2004 or so to send very one a forecast (called an Automatic Pension Forecast) to the "whole population". It took several years and cost a fortune. As an exercise it was a "good idea" and should probably have repeated every 5 years or so.

However how effective that was is open to question - one of the first targeted groups was the females who would be affected by the change of female SPa but WASPI seem to have conveniently forgotten!

Eco_Miser

You should work out how much of your inheritance you are likely to spend over the next five years, and keep it in high-interest easy-access accounts, then invest the rest to produce an income.
http://monevator.com/category/deaccumulation-2/ is a good starting place to learn about that, followed by other articles on that site, and some of the links from it, as well as this very forum.

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest is a starting place for cash savings.