£50k Redundancy - Take it and run? 1 October 2021 at 10:14PM in Redundancy & redundancy planning 9 replies 1.3K views

IAMIAM

A friend has been offered this or a reduced pay role. What would you do? Is 50k survival without a job for a year or two? How long would it last you?

I have said leave the job and go. Worst case scenario no job for a year or two?

Disjoint

Such a lack of information - it almost makes me angry.
Location, age, housing, family, job, etc...
If I was 18 living in Wales I'd take it. 
If I have mortgage of £4k a month with no savings private school at £50k a year for 5 kids. 
It might be a struggle. 

Thrugelmir

Many people struggle to find another well paid secure job later in life. 

MalMonroe

Life is short. I'd take the money and go. That would certainly last me for two or three years.

I'd not want to take a lower paid job - but I would if I hadn't been offered £50k.

Your friend could enjoy a few months off and then maybe have a think about retraining for a different career before applying for more jobs.  

I'm retired now but am self employed. Jobs in my career have never been particularly well paid, even though I worked hard for my qualifications but I was never out of work, in spite of actually walking out of two jobs following disagreements with managers. (Thus receiving no references.) And when I was offered a redundancy, I said 'yes, please', took it and went off to study (finally) full time for my undergraduate degree. Graduated with a 2.1 BA Hons - one of the very proud moments of my life. I managed to get a job afterwards. You can always get a job if you are determined enough. I just think there's such a thing as being 'too sensible' sometimes.  

getmore4less

Disjoint said:

Such a lack of information - it almost makes me angry.
Location, age, housing, family, job, etc...
If I was 18 living in Wales I'd take it. 
If I have mortgage of £4k a month with no savings private school at £50k a year for 5 kids. 
It might be a struggle. 

Also
how big a cut in salary.
State of the business
Pecking order(eg valued or getting pushed out)
Likely change in package next time.
Job prospects.
...

Grumpy_chap

IAMIAM said:

A friend has been offered this or a reduced pay role. What would you do? Is 50k survival without a job for a year or two? How long would it last you?

I have said leave the job and go. Worst case scenario no job for a year or two?

As others said, too few details.

What is the benefit of staying in the current employment at reduced salary?
Compared to leaving, taking the £50k (some of which will be taxed) and then obtaining alternative employment elsewhere, which may be lower, same or higher salary than current role.

Possibly, the biggest consideration that might warrant staying would be pension impacts.

Thrugelmir

Grumpy_chap said:

IAMIAM said:

A friend has been offered this or a reduced pay role. What would you do? Is 50k survival without a job for a year or two? How long would it last you?

I have said leave the job and go. Worst case scenario no job for a year or two?

Possibly, the biggest consideration that might warrant staying would be pension impacts.

Often gets overlooked. Jam today or jam tomorrow.  Cost of pension provision is a major consideration from the employers perspective when enticing employees to leave. 

74jax

IAMIAM said:

A friend has been offered this or a reduced pay role. What would you do? Is 50k survival without a job for a year or two? How long would it last you?

I have said leave the job and go. Worst case scenario no job for a year or two?

I would take it.  I have no mortgage and bills are about 400 a month so it would last me years. I've no idea how that helps though. 

macman

Remember that £20K of that is taxable at their marginal rate, which will take min £4k of it, and maybe £8k or £10k.

getmore4less

macman said:

Remember that £20K of that is taxable at their marginal rate, which will take min £4k of it, and maybe £8k or £10k.

Might be the £50k is the total package and already contain other taxable elements eg holiday or PILON, then there is the NI as well as the tax.

the devil is in the non existent details.