Considering Early Retirement - What am I missing ?

MoneyGeoff

It's a no brainer to leave, the question is how. Have you looked into your company's policy regarding a sabbatical? After 40 years at a finance company it's likely you are entitled to a sabbatical.

It's unpaid of course but gives you 12 months to experience 'retirement'. I'm assuming you can live for 12 months from savings and ISAs without having to make any drastic pension decisions.

You may find you want to go back to work! Or you could hit the holy grail and get made redundant! More likely it will confirm that you really can and should leave. Being an extra year older and with 12 months of being switched off from work you may find your company more willing to compromise on the 12 month notice period.

JoeEngland

If it doesn't adversely affect your pension you could just stop doing any proper work and behave so badly that they fire you! If I were in your place I'd tell my manager I'm stressed and need to leave and can only manage 1 month notice, but if they can't accept that would say I'll ask the GP to sign me off due to stress.

k6chris

I would imagine a 12 month notice period on top of a 30% reduction would cause you a lot of stress......

Clive_Woody

Sounds like they have taken you for a ride.

An alternative strategy would be have some fun and "gross misconduct" your way out. Not suggesting trying anything illegal of course but it's not like you are going to need a reference...

Someone with more of a HR background may be able to advise why this is a bad idea :beer:

SB1961

Thanks for the numerous further replies.


Unfortunately a TUPE is not applicable in this instance for complex reasons, as the acquiring company bought the assets and not the company and set up a new company and all employees had to sign new contracts. It is very complex with restrictive covenants in previous contracts and other detail, which I won't go into but I have now consulted an HR lawyer for advice.


I have now negotiated reducing my working week from 5 to 4 days at the same salary/package, so this offsets my reduction in salary/pension to a certain degree.


Wrongly or rightly, I have decided I am going to give it 3 months on this new basis to give it one last go and then make a decision then.


I have been reassured by comments made that my savings/pension pot is sufficient to take early retirement should I decide to do so. However for added peace of mind I am seeing an IFA next week.

MallyGirl

good luck with it.

Terron

SB1961 wrote: »

- I am unable to work elsewhere in the same type of job as I have a two year non compete contract

That sounds excessive and so might well be unenforcable. Consult a lawyer though.

enthusiasticsaver

I personally would not be happy with the treatment your employer is meting out to you but if they have agreed a 4 day work at the same salary that is a start so long as you are not expected to fit 5 days work into 4 days. 30% drop in salary would amount to 30% drop in workload too.

We retired at 58 and prepared for it a few years previously so you might like to do a few things to see if you will be ok financially.

First of all get all your pension details and familiarise yourself with how they work. DC or DB? If you take a DB pension early what drop in benefits will you suffer. Make a note of your outgoings and work out how much you will need in total monthly or annually to live. 40 years of your salary in savings though is enormous. Are you anywhere near the LTA? I certainly would be using the 4 days drop as a stepping stone to early retirement early. With 40 years salary and presumably a state pension at some point it is a no brainer to go soon. You may spend a lot at the beginning of retirement but less later on unless you need care but presumably you have a house to sell.

I certainly would not worry about finding things to do. I am out and about all the time. U3A have branches all over the country and they have all sorts of clubs you can join. I do lots of coastal walking, national trust properties, gym and pool visits, grandchildren, theatre and lunches out with friends and my husband. I sometimes wonder how I found time to work.

Mick-H

Don't over complicate it.
If you can retire and still have the same standard of living as you have now, why continue to work?

atush

so long as you are not expected to fit 5 days work into 4 days. 30% drop in salary would amount to 30% drop in workload too.

This is important. if you are expected to fit 5 days of work into 4 days, you should be paid for 5 days. The comany shoud put 20% of yor workload onto someone else.