£50k Redundancy - Take it and run?

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?

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    edited 1 October 2021 at 10:40PM
    Many people struggle to find another well paid secure job later in life. 
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
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    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.  
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    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
    Grumpy_chap Posts: 14,880 Forumite
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    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
    Thrugelmir Posts: 89,546 Forumite
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    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
    74jax Posts: 7,921 Forumite
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    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. 
    Forty and fabulous, well that's what my cards say....
  • macman
    macman Posts: 53,098 Forumite
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    Remember that £20K of that is taxable at their marginal rate, which will take min £4k of it, and maybe £8k or £10k.
    No free lunch, and no free laptop ;)
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    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.
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