Voluntary Redundancy

record45

I have the chance of taking a good voluntary redundancy; 33 years in role pre tax £51K would be paid. already have £13K in savings and after clearing debts (Inc Mtge) would leave £20K in savings. I am (only !) 51 years old. With the job market it is and could be, I am really stuck with my decision. If I was a little older, probably yes, a little younger, probably no. Anyone in a similar position ? A generous payout, but maybe not life changing. Any thoughts.

gwynlas

I retired through redundancy at 52 and sacrificed most of lump sum in order to obtain pension early  so it was fine for me. But you have not said if you have private pension arrangement or working spouse so what would you live on?
Might compulsory redundancy be on the cards in the future?
In your position I would weigh this up with until working to staturtory retirement age 67. Being mortgage free with money in the bank, likelihood of obtaining further work if you wanted though possiby at minimal wage. In my area there appear to be people of a similar age to myself working in retail. You have not said what your job is or what skills might be transferable to a new role/

record45

gwynlas...I work in a high street bank, with an accrued non-contributory pension through work. As I say, we have a Mortgage to clear and would have £20,000 in savings but debt free. Unfortunately, my spouse has just been made compulsory redundant, so you can see with one dependent child, £20K would not last forever. Any ideas again ? Thanks.

sharpe106

Unless you can easily find a suitable job then I would not take the redundancy as it will only you a year or two, with your wife being made redundant she might not easily be able to find another job either.  

 

olsim

My friend took a VR. When he was paid they deducted a lot of money from him including some for the student loan. But he was not earning over £26k when you need to start repayments. Can they actually do that? 

sharpe106

https://www.gov.uk/hmrc-internal-manuals/collection-of-student-loans-manual/cslm17055

getmore4less

Looks like you would still need income/new jobs, paying of the mortgage may not be the best option.

With rates so low keep it in cash as that gives you more time to find work before you have to take any job going.
Two lots of JSA will give you some income while looking for work.

Even if you stay it is time to cut the spending back and increase savings because chances are there may be another round and you can be better prepared for it. 

olsim

sharpe106

So looks like they can’t take it. Am I right? I am in the same position. If they deduct the money is there any way to get it back? 

Thank you 

sharpe106

If they take it and refuse to give it back you will probably have to contact ACAS or CAB for further advice on what to do then. 

Thrugelmir

Having known many people who took VR in later working life. Majority ultimately had regrets.  While the lump sum is attractive. Continuing to earn a monthly wage and accrue further pension benefits shouldn't be underestimated. Even if it just postpones the inevitable.