Has Anyone Benefitted from Redundancy?

SieIso

Hi,

I have always wondered if people have ended up better off as a result of a redundancy? These are stories we rarely hear but there must be some examples.

JGB1955

Yes - my husband was made redundant after 20 years working for a High Street Bank.  It was the best thing the bank ever did for us!  Paid off the mortgage with the lump sum and walked straight into a better paying job within a month.  Great to be mortgage free at 40 years old.  Never looked back since.  The feeling of 'nobody can ever take our home away from us' was priceless.

Soot2006

I was recently made redundant after 15 years.  I was devastated, but found another job quickly and am now applying for more interesting career moves. I haven't yet touched the payment which wasn't life changing, but nonetheless helpful (will pay for a new roof and top up my pension). I probably won't find a job with as high a salary immediately, but I feel confident I can find something more interesting at a time of my life (in my 40s) where a big change is quite welcome and maybe I can work my way up again. So, I don't yet know if I will be "better off". Financially, probably not, but quality of life, very likely. In fact, I think 15 years was too long to stay in the same place now.

Cairnpapple

My dad was made redundant age 55 after 35 years at the same company, the terms were very good. Had a year of contracting while he looked for another permanent job, then worked in the new job till he was 70. So he's considerably better off in retirement than he expected to be (and he already had a good DB pension from job #1).

On the other hand my spouse was made redundant last year and took 9 months to get a job that pays just over half as much as the previous one (though to be fair it's fully home based, very flexible and a lot less stress). 

Edited to add: my coworker in a previous job was going to leave to train as a pilot. Luckily for him there was a voluntary redundancy round at the perfect time and he left with enough money to pay for a lot of his flight training.

YBR

I took Voluntary Redundancy from my first graduate job after a few years. It gave us a deposit for our first house.

I had been looking for other roles anyway and had a week off before starting in another industry. While I started on lower pay, I had left a toxic workplace for somewhere where I thrived and have been much happier. 

20+ years on, I'm now part-time while training for something completely different and can support the family on that part-time salary so I'd say it was good financially too.

baser999

Some years ago a neighbour (and the whole of his team) was made redundant by the PO on the Friday and received payouts, but on the Monday went back in to their same posts albeit under a new departmental name, and at a far better pay rate. 

Tucosalamanca

I was a temporary worker for a large British company when they announced they were closing the factory and moving production abroad.
Many staff had substantial share holdings and good pensions, they also received an excellent redundancy package.
Most paid off mortgages, bought new caravans etc, most over 45/50 were planning to retire.
Chap I was working with bought a Ford Mustang, paid off mortgage and retired.
I thought it was criminal to move quality jobs abroad and felt for the youngsters who were losing very well paid employment (compared to what else was available in the area).
The older ones, with long service couldn't get out the door fast enough.

I was personally made redundant from another job and received a good package.
It took me a good few months to adjust and find alternative employment (at a greatly reduced salary).
Looking back now, I depleted my pot over those few months, it would have been better if I'd taken any old job for a while to at least keep some money coming in.
I would say that I benefitted overall and not just financially. It's all learning...

comeandgo

I had already planned to retire at 60 but was selected for redundancy so got to leave with large lump sum.  

Veteransaver

If it happens at the right stage in life it can be extremely beneficial, Eg in later life coming up for retirement with many years service.
I know a few people who benefited from the removal of mandatory retirement ages, they worked a few years past their original company pension retirement age and were then made redundant with a large payout on 10-20 years service, as well as a better pension!

onejontwo

My wife took a redundancy package around the age of 50 and has never worked since! It enabled us to pay off our mortgage early and leave my wife with a relatively stress free lifestyle. Also I think a lot of workers are not aware of the amount in their pension pots for example a relative who had a mortgage and around 30k credit card debt was in tears and at the end of their tether when they found out that they were about to be made redundant, however when the numbers came through as to what they would receive, they are now debt free, paying a small mortgage and retired early with lots of freedom and a lesson learned.

Mr.Generous

Made redundant from a stressful management job I was growing to hate - 28 years service. Decent pay out, I'd been saving for a buy to let for a while and had paid off my mortgage. My brother was in same boat, we bought run down property and renovated, then sold. Made enough to keep 1 after a year, enough to buy a second after 3 1/2 years.

I retired at 54 with 4 renters owned outright, but added a 5th last year with a withdrawal from pension pot.

Had I stayed in my job (and not gone postal) I'd maybe have 2 renters now and a pension about £6k higher.

I'm about 15k a year better off, and of course own a property portfolio heading for a magical round number.

Working self employed / problem solving / having nobody moan at you and delivering great houses was really satisfying - worth it even if it went belly up.

Thanks for the redundancy B&Q !!