Redundancy Looming - Shall I Give Up Work

KittyS

Hoenir said:

Have you checked to see what your state pension entitlement is? 

I'm only 56 so not at that stage yet.  Thank you

KittyS

Grumpy_chap said:

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.

Probably about £12k less a year but I don't spend that much.  Not sure my expenditure will increase as have put that in my budget.    I think you are right.  Have some time out to reflect and then sort out a part time job that I am enjoy with no pressure.  I don't want to go back into the rat race.  Good points and thank you. I'm tempted to do a MA on a subject that I love too.  Be nice to get myself better as well.  Thank you - value the discussions.

Grumpy_chap

KittyS said:

Hoenir said:

Have you checked to see what your state pension entitlement is? 

I'm only 56 so not at that stage yet.  Thank you

Regardless, it is worth checking what your state pension entitlement is.
You may have already accrued sufficient NI years that there can be no further increase to state pension by accruing further NI years.
If you have not, you may wish to consider the accrual of further NI years in your planning of the next steps.

KittyS

thanks Grumpy - yes I have got enough contributions to NI and will get a full state pension when I turn 67.  I have checked that already.  But thank you as it is very important.

Grumpy_chap

It does not sound as though the OP is considering, or eligible for, UC.  There would be no harm in checking entitlement using one of the online calculators.

One thing that the OP may wish to consider if applying for nJSA (new-style Job Seekers Allowance).  This is available based on NI record (which it appears the OP has satisfactory contributions) and would mean some extra income for a few months.  It is quite likely that there would be a "light touch" approach initially and the Work-Coach may be able to put the OP in touch with services that can provide exactly the type of guidance that the OP seems to be seeking - to assess skills and aptitude and identify opportunities that might match well.  It may not show anything the OP has not thought of anyway, but may just give a spark for something entirely different.

KittyS

I had to look up what OP meant.  But not I am not eligible for UC due to savings.  But I will check and thank you for raising it.  That sounds great and it is good to comment as this might help other people.  Thanks Grumpy chap - can I ask are you really grumpy as you are giving great advice x

KittyS

Grumpy_chap said:

It does not sound as though the OP is considering, or eligible for, UC.  There would be no harm in checking entitlement using one of the online calculators.

One thing that the OP may wish to consider if applying for nJSA (new-style Job Seekers Allowance).  This is available based on NI record (which it appears the OP has satisfactory contributions) and would mean some extra income for a few months.  It is quite likely that there would be a "light touch" approach initially and the Work-Coach may be able to put the OP in touch with services that can provide exactly the type of guidance that the OP seems to be seeking - to assess skills and aptitude and identify opportunities that might match well.  It may not show anything the OP has not thought of anyway, but may just give a spark for something entirely different.

Thanks @Grumpy_chap I checked and I can get ESA due to disability.  Thank you so much.

mark_cycling00

I'm sure you feel fed up and annoyed but I really wouldn't stop earning at 56 years old 

Inflation means that when you're 68, your £18,000 pension has the buying power if £9,000
At 70 it's £4,500. 

Getting more miserable as costs rise and you are constantly cutting back might be much worse than being in the "rat race" for a bit longer.

Silvercrest

Please bear in mind that private pension income of more than £85 weekly will affect any ESA entitlement award. I believe 50% of anything over £85 will be fully offset against the ESA amount. You would be wise to use a benefits calculator such as turn2us to see what effect your net private pension could have. Also, I note that you have mentioned health conditions. Have you looked up the Personal Independence Payment rules? Maybe you could qualify for this. It is totally non-means tested and non-taxable if you should qualify for it. Just a suggestion!

KittyS

mark_cycling00 said:

I'm sure you feel fed up and annoyed but I really wouldn't stop earning at 56 years old 

Inflation means that when you're 68, your £18,000 pension has the buying power if £9,000
At 70 it's £4,500. 

Getting more miserable as costs rise and you are constantly cutting back might be much worse than being in the "rat race" for a bit longer.

I don't think I have that much choice at the moment due to a few disability issues.  I am struggling at work and have already reduced my hours and will have to reduce them again.  I probably have a break and then take a job where I can work 10 hours or less a week.