Redundancy Looming - Shall I Give Up Work

KittyS
KittyS Posts: 46
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I've had the consultation meeting and now in the 30 day consultation.  I will not get much redundancy but the company I work for has to give me my pension annually as I am over 55.

I am trying to work out my income without working and I can do it.  I have no mortgage or debt.  I know I am very lucky.  However, I have struggled with health issues for a number of years but kept plugging away at work.  I work part time now.  Had numerous occupational health and access to work appointments.   My question really is.

With my pensions I am £1000 away from the personal budget limit allowance and I can have £18500 a year to live on.  Shall I just give up work?  Live on my £18k and a few savings.  I have no one to leave my money too.  Or shall I do part time work and have to pay income tax.  I have enough NI and tax to get my pension in 11 years time.

What do you think.  My redundancy package will be small.  I am just fed up of the rat race.  
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  • njkmr
    njkmr Posts: 103
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    Personally I would say if your confident you can live on the money you will get them take it. Life's too short.
    Enjoy the next chapter of your life without the burden of work dictating what you can an can't do.
    Freedom beckons...!
    Good luck whatever you choose.
  • KittyS
    KittyS Posts: 46
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    Thank you - I had a personal advisor tell me I need £2000 to live on a month - which I think is a bit overboard.  So I can probably get £18k without breaking into my savings and just using the other £4k of my saving.  I have enough in my savings to go until retirement.  I don't leave any savings when I die as I have no one to leave them too.  It is good writing it down as it makes the decision quite easy.  
  • KittyS
    KittyS Posts: 46
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    I know it is really nice to be in this position, but sometimes we are bred to have to work...
  • gwynlas
    gwynlas Posts: 1,622
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    It depends on what you plan to do with your time in retirement and whether working gives you a sense of worth. Iff you have health issues mght continuing to work part itme help take your mind off thngs? Are there other activities you could take up to take the place of work such as volunteering in some capacity? The financial side of things is only part of the equation with no mortgage you should be able to manage on what you have and when it comes your statutory pension will be a bonus.However don't forget that unless your pension keeps place with inflation your pension might not seem so good in a few years time. I was luckily able to retire when made redundant at 52 and chose not to return to paid employment with no regrets but that was my decision in different circumstances.
  • YBR
    YBR Posts: 528
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    Perhaps consider drawing your pension and still working part-time - some people find it helps their health to have some routine and it would give a financial cushion or some treats. 
    See how it goes and you know you have the option to change your mind (and or time to find the right part-time work to suit you).

    Particularly worth considering if there are few other activities to give you human contact and routine, but that may not be you, or the flexibility of volunteering may suit better.

  • infj
    infj Posts: 67
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    YBR is right. Try it and see. There's no law saying you can't look for a part time job later if you find it financially or socially challenging. 
    Pop over to the over 50s board too. There are people on there managing on small amounts and less obsessed with dying with a million pounds in the bank than some on the pensions board.



  • KittyS
    KittyS Posts: 46
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    Thanks everyone and will certainly now look at the 50s board.

    I already volunteer for two lovely chairites which I love x   Infj you are so right - life is so precious.  Thanks again for the advice.  I have drawn my deferred pension last year.  The new one is very tiny but is good enough xx It is so helpful to write it down on paper.

  • KittyS
    KittyS Posts: 46
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    Wow that 50s board is great.  Another idea I would like to do is study for an MA - self financed my BA :)  x so many choices and love this forum
  • Grumpy_chap
    Grumpy_chap Posts: 14,418
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    KittyS said:

    With my pensions I am £1000 away from the personal budget limit allowance and I can have £18500 a year to live on.  Shall I just give up work?  Live on my £18k 
    How does that £18k income compare with your income while working?

    Will your expenditure increase if you have more time in which to spend?

    A mid-point option is to take the redundancy and take a period of non-working time to reflect.  You may find you don't enjoy being retired.  If the financial pressures are gone (or reduced), and you feel that you wish to return to paid work of some kind, you can select something that is more pleasurable rather than jumping right back into the rat race.
  • Hoenir
    Hoenir Posts: 1,236
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    Have you checked to see what your state pension entitlement is? 
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