Being made redundant ....woohoo.....

sgx2000

I am 64

I am being made redundant in July or August
(Or to be precise.  I am being made volentary redundant.  Which leaves my job open to a younger colleague who would otherwise be finished)

So being retired 19 months early, helping a younger colleague, and getting a 'bung' ....woohoo...

The redundancy will cover the lack of state pension for the next 19 months
And I already have a db pension paying.  Together thay will cover my expenses until state pension cuts in....

This then means I can leave my workplace dc pension in place for another 2 years to hopefully compound a bit further ... or move it somewhere else to change the 'lifestyling'

Lets hope we dont have a major stock market crash..........

At this moment I feel very lucky.....

Anyone have any advise on things I should be doing in the next 2 months to prepare?
Or worse, things I haven't considered.....

Abbafan1972

i don’t have any practical advice for you I’m afraid, but just wanted to wish you the best of luck. 

Sarahspangles

That’s the ideal - you already knew you were retiring so this is a bonus!

If your current DB pension doesn’t use all of your personal tax allowance, you could take some of your DC pension next year to maximise tax free income. You could also pay some of your redundancy payment into a pension (could even open a SIPP) for the tax relief.

July or August you say? Stock up on sun cream.

Pat38493

Lucky you - I was hoping for the same when my employer went through some restructuring recently - even dropped some hints to senior management - but no such luck they kept me on and got rid of a bunch of other people who mostly didn't want to leave.

One thing is that if you don't have many hobbies or activities outside work, start to research what you want to do - they say it's important to have something to retire to, rather than just "retiring from" work.

Financially - i would suggest you investigate the best way to deploy your new situation from a tax perspective - redundancy pay above £30K can be sacrified into a pension if it makes sense, which it usually does.  Also if there are very large amounts involved like above £200K or more, be aware of taper allowances.

kipsterno1

sgx2000 said:

Anyone have any advise on things I should be doing in the next 2 months to prepare?
Or worse, things I haven't considered.....

Start stocking up on printer paper, post-it notes and pencils 

DE_612183

Buy a motor home and start travelling!

pensionpawn

When colleagues ask me for advice I always tell them (assuming they are fiscally prepared) that you're not ready to retire until you can't do the other things in life that you want to do because work keeps getting in the way. Yes you might hate your job etc however sitting at home looking for (artificial...?) interests is not good or mentally healthy. For those people maybe partial retirement is better? I'm also hoping for a VR situation in the next 13 months however I will not continue past next June solely on the basis of a possible VR. Good luck!

El_Torro

sgx2000 said:

This then means I can leave my workplace dc pension in place for another 2 years to hopefully compound a bit further ... or move it somewhere else to change the 'lifestyling'

Lets hope we dont have a major stock market crash..........

Rather than crossing your fingers and hoping there isn't a stock market crash it's worth looking at when you will want to access your DC pension and how much of it you will need in the coming years. The money you will take soon can be de-risked, maybe even have some of it in cash, still in your pension. 

Congrats on the voluntary redundancy by the way, good timing for you it seems.

Sarahspangles

pensionpawn said:

When colleagues ask me for advice I always tell them (assuming they are fiscally prepared) that you're not ready to retire until you can't do the other things in life that you want to do because work keeps getting in the way.

That is a great way to look at it. I worry that by retiring I will be ‘giving up’. Even though most days I’m more frustrated about not being able to be creative, or join OH in things he’s getting up to.

kempiejon

pensionpawn said:

When colleagues ask me for advice I always tell them (assuming they are fiscally prepared) that you're not ready to retire until you can't do the other things in life that you want to do because work keeps getting in the way. Yes you might hate your job etc however sitting at home looking for (artificial...?) interests is not good or mentally healthy. For those people maybe partial retirement is better? I'm also hoping for a VR situation in the next 13 months however I will not continue past next June solely on the basis of a possible VR. Good luck!

I agreed for those defined by their job partial retirement is a good idea. Once you are fiscally prepared you're free to pursue what isn't work. Work gets in the way of other distractions because you've been obliged to go to work for so long you've forgotten how not to. Those people who wouldn't know what to do without work have my sympathy and admiration. It's sad that work is the big thing in their life that defines them but how marvellous for them to be able to derive fulfilment and purpose for something I've always seen as a draw on my choices with what I do with my time. 
I have been out of mainstream employment quite a few times in and every time I have relished in having my time back, never had any problem filling it for my pleasure but eventually I run out of money and have to look for fiscal reward. I stepped back back from permanent full time employment before Christmas and have been busy and lazy since then.

sgx2000

pensionpawn said:

When colleagues ask me for advice I always tell them (assuming they are fiscally prepared) that you're not ready to retire until you can't do the other things in life that you want to do because work keeps getting in the way. 

Work has been getting in the way for 46 years now.... lol