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  • FIRST POST
    • flopsy1973
    • By flopsy1973 13th Jan 19, 2:26 PM
    • 236Posts
    • 19Thanks
    flopsy1973
    New job and savings dilemma
    • #1
    • 13th Jan 19, 2:26 PM
    New job and savings dilemma 13th Jan 19 at 2:26 PM
    Hi
    I have recently taken new job with the same employer and taken a 10 k basic pay cut and am losing a further 10k in overtime and shift payments. I have done this as I was working a lot of unsocial hrs and not happy in the job and stress that went with it. Now I am unsure if I have done the right thing and maybe should have stuck out a few more years and then taken the pay cut? I have saved very well over the years and have about 700k of assets. I live with my fiancee in her house which we plan to rent out and buy another property. I also have about 80k in work pension. I live very modestly, am 46 and would like to travel more in the future. Does it sound like I have done the right thing now to be be able to have a comfortable retirement . I can cover my bills on this new salary but obviously will not be saving much anymore.
    Has anyone else had this sort of dilemma any opinions or advice would be appreciated
Page 1
    • Alexland
    • By Alexland 13th Jan 19, 2:33 PM
    • 4,193 Posts
    • 3,505 Thanks
    Alexland
    • #2
    • 13th Jan 19, 2:33 PM
    • #2
    • 13th Jan 19, 2:33 PM
    Who knows but you can't change the past.

    Build a financial plan based on your new position which should tell you when you can afford to retire and then consider if that meets your aspirations.

    Alex
    • EachPenny
    • By EachPenny 13th Jan 19, 3:47 PM
    • 9,627 Posts
    • 26,832 Thanks
    EachPenny
    • #3
    • 13th Jan 19, 3:47 PM
    • #3
    • 13th Jan 19, 3:47 PM
    I have done this as I was working a lot of unsocial hrs and not happy in the job and stress that went with it. Now I am unsure if I have done the right thing and maybe should have stuck out a few more years and then taken the pay cut?
    Originally posted by flopsy1973
    Based on the experience of friends and family I'd say it is very difficult to make important decisions about work when you are reliant on the income from a stressful job which consumes excessive amounts of your time and energy. It becomes very difficult to 'see the wood for the trees'. Many people struggle on until they reach breaking point and end up being off sick with stress.

    Only you can know for sure, but based on what you say I personally think you've done the right thing to take a step back and create some time and space to think about your priorities.

    In additon to Alexland's comments about making a financial plan, I think you should also look at the job. If you were in any way unhappy about the company that won't have changed by taking on a lower-level role. I'd also say it is likely that the skills and experience you have from the previous position will be something the company will still want to exploit... you may find yourself coming under pressure to 'help out' or 'advise' people in your previous role. Being asked to do the work of a more senior position whilst employed (and paid) at a lower level has the potential to breed bitterness and resentment.

    I would suggest you think about other options including changing employer, or perhaps doing some consultancy work (if applicable) in the same field?

    One of the things people worry about is how things will look on your CV. So another possible consideration is to take a bit of time out of work now to do some of the travelling you hope to do 'one day' - and then treat this 'change of gear' as a sabbatical. Most decent employers won't bat much of an eyelid at a prospective employee who has taken a bit of time away from work to do something different.... far better that than suffer a stress-related breakdown and have to explain that to a future potential employer.

    Keep an open mind on your options. Hope it all works out well for you.
    "In the future, everyone will be rich for 15 minutes"
    • kidmugsy
    • By kidmugsy 13th Jan 19, 7:04 PM
    • 12,400 Posts
    • 8,791 Thanks
    kidmugsy
    • #4
    • 13th Jan 19, 7:04 PM
    • #4
    • 13th Jan 19, 7:04 PM
    When you look back on it in a few decades time you might think "Thank God I had saved up so much that I could afford to get out of that unpleasant job".
    Free the dunston one next time too.
    • justme111
    • By justme111 13th Jan 19, 11:56 PM
    • 3,127 Posts
    • 3,007 Thanks
    justme111
    • #5
    • 13th Jan 19, 11:56 PM
    • #5
    • 13th Jan 19, 11:56 PM
    Yes you have gone the right thing. One's health, time and looks are finite and they all are spent when one works like what you described. You have 700 k how, how would it change to you if you had 800k or 900 k ? Probably you would feel not or less the same.
    • TubbyDown
    • By TubbyDown 14th Jan 19, 12:02 AM
    • 59 Posts
    • 45 Thanks
    TubbyDown
    • #6
    • 14th Jan 19, 12:02 AM
    • #6
    • 14th Jan 19, 12:02 AM
    You've got to be happy! Yes you had ample opportunity to save, but at what cost? Sounds like you now have some firm foundations to enjoy life and do what you want! You've worked hard, enjoy!
    • enthusiasticsaver
    • By enthusiasticsaver 14th Jan 19, 12:37 AM
    • 7,663 Posts
    • 17,065 Thanks
    enthusiasticsaver
    • #7
    • 14th Jan 19, 12:37 AM
    • #7
    • 14th Jan 19, 12:37 AM
    You have 700k of assets. Where are those invested? 80k in a works pension is not a great deal at 4 years shy of 50. Can you move some of those assets to there? Do you have any SIPPS? I would argue investing a large proportion of your wealth into property may be a tad risky particularly given the prediction Brexit will affect property prices.

    I think if you find a job stressful though then taking a backward step is fine providing you can still afford to live. Your health is important.

    I would record on a spreadsheet your current assets, how they are performing and when you might need to draw on them. Check on pension forecasts and get quotes for increasing the percentage you put in to them. Are you maximising employers contributions?
    Early retired in December 2017

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    • LHW99
    • By LHW99 14th Jan 19, 2:03 PM
    • 1,667 Posts
    • 1,527 Thanks
    LHW99
    • #8
    • 14th Jan 19, 2:03 PM
    • #8
    • 14th Jan 19, 2:03 PM
    IMO it was a good decision. I + OH did the same almost 20 years ago, choosing to reduce salary to almost 1/3 and (in our case) starting our own business. It was hard at first, and we did have to juggle for a bit and didn't get to add to our savings / pensions for quite a number of years. However you may well be able to catch up later, and working longer if you don't have the stress is not always a problem.
    The benefit of moving investments into a pension is the tax refund. However pension money is taxed on the way out, whereas ISA's are not (you save into them from after tax income) so the benefits can be slim. If you have investments outside either wrapper, them putting them gradually into a pension would probably be a good idea.
    • flopsy1973
    • By flopsy1973 14th Jan 19, 5:00 PM
    • 236 Posts
    • 19 Thanks
    flopsy1973
    • #9
    • 14th Jan 19, 5:00 PM
    • #9
    • 14th Jan 19, 5:00 PM
    You have 700k of assets. Where are those invested? 80k in a works pension is not a great deal at 4 years shy of 50. Can you move some of those assets to there? Do you have any SIPPS? I would argue investing a large proportion of your wealth into property may be a tad risky particularly given the prediction Brexit will affect property prices.

    I think if you find a job stressful though then taking a backward step is fine providing you can still afford to live. Your health is important.

    I would record on a spreadsheet your current assets, how they are performing and when you might need to draw on them. Check on pension forecasts and get quotes for increasing the percentage you put in to them. Are you maximising employers contributions?
    Originally posted by enthusiasticsaver
    Those assets include my former home which I'm renting out about 280k in stocks and shares funds and is as. 50k in company shares through SAYE,. And the rest is in various accounts maximising interest. I plan on spending about 250k on a new house and was planning to leave as much of the stocks and shares bit invested for now?
    • flopsy1973
    • By flopsy1973 17th Jan 19, 7:52 PM
    • 236 Posts
    • 19 Thanks
    flopsy1973
    Those assets include my former home which I'm renting out about 280k in stocks and shares funds and is as. 50k in company shares through SAYE,. And the rest is in various accounts maximising interest. I plan on spending about 250k on a new house and was planning to leave as much of the stocks and shares bit invested for now?
    Originally posted by flopsy1973
    Hi
    been doing some research on my pension and i cant find calculator that will take into account the 280K i have in S and S isa. I dont take a income from it and wont need to for some years so what income can i expect to get from that? and do i transfer some of this over to my pension ? what surely the tax on each one cancels the benefit out ?????
    i just need some help to see what sort of returns i could be getting now i have taken this drastic action
    • justme111
    • By justme111 18th Jan 19, 7:29 AM
    • 3,127 Posts
    • 3,007 Thanks
    justme111
    Depends on whether you pay tax now and what tax you anticipate to pay when you draw it. As you don't have earned income you would not be able to just move money into pension anyway beyond 2880 or thereabouts each year. I am not sure I j sweet and your question about performance- surely investments perform the same whether they are in pension or isa bar small tweaks for charges if they are different? What calculators do you use ?
    • justme111
    • By justme111 18th Jan 19, 7:31 AM
    • 3,127 Posts
    • 3,007 Thanks
    justme111
    The are countless threads here discussing what sort of return one could expect on capital - your question does not have a simple answer.
    • MaxiRobriguez
    • By MaxiRobriguez 18th Jan 19, 9:05 AM
    • 95 Posts
    • 74 Thanks
    MaxiRobriguez
    Capital accumulation is nice but for me it's meant to facilitate a happy, healthy lifestyle, not act against it.

    You have a LOT of money compared to most people and you are still working and earning, just not as much as before. Make a financial plan, but don't be afraid to consider spending cutbacks in the future whether it's on fewer holidays or a smaller house.

    Personally I think working a job you hate is the worst thing in the world. It eats your time, it makes you ill and it wastes your life. Time is finite, try and enjoy it.
    • flopsy1973
    • By flopsy1973 18th Jan 19, 11:35 AM
    • 236 Posts
    • 19 Thanks
    flopsy1973
    The are countless threads here discussing what sort of return one could expect on capital - your question does not have a simple answer.
    Originally posted by justme111
    Can someone send me link to some of these threads. I have tried numerous pension calculator but they don't take into account my savings pot I just need to figure out what I could have in retirement and if possible do it early. Is the state pension guaranteed when I get to that age ?
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