Voluntary parting package

[bigdecisionaboutwork]

There's a very good package on offer from work at the moment.
I've been there nearly 20 years and have always considered this as an option in the future - but now it's here and I only have 6 weeks to decide to apply or not!

It would pay off about 70% of my debt (mortgage, car loan) and leave me with a monthly repayment of about £330 vs current of £720. Also the term left on the remaining loan would reduce from 14 years to 5 years. (mortgage reducing from £80K to 25K)

I have a spare bedroom so could take a lodger (that was the plan for this year anyway until Covid interfered...) and the income from that would pay all the running costs on the house (electricity, broadband, house maintenance)
The other bedroom is set up as an office, but I could convert it back if I really needed to - could actually get by with 2 lodgers without working but it would be tight. That would be the rock bottom back up plan.

All I would have to earn would be my day to day costs - food, social life, clothing, hols, and the £330 loan repayment.

So even with a salary drop of 50% I could still live the same lifestyle - I could change career to something less well paid, or go to 3 days per week.

If I got a similar salary I would overpay the rest of the mortgage and clear it asap.

Having spent 20 years commuting 3 hours per day (and realising that although I can do my current role from home, I have to force myself to put the hours in every day) this is looking very tempting. I've just turned 50 and I like working/being busy/having a structure - but am looking forward to a change.
However with the looming recession, am I mad???
I put the figs in stg for handiness, but I'm actually in the EU.

Current role - about £45K. Very flexible - we are full time wfh till Jan at least, and before Covid the company was introducing a flexible working policy. Good, challenging work, some people management, some technical expertise - a nice mix. Not a vocation though. Some fabulous people in the company - but not seeing anyone in person till at least next year.

I live about 30 miles from a large city, to which I commuted all my working life. I also live walking distance from a small town - county seat - so there may be opportunities on my doorstep.

DD is grown up and moved out, so no dependents (bar a cat)

Very nice partner of 3 years, we don't live together but are both in it for the long haul - he has grown up children also.

Pros
Debt significantly reduced and potentially completely mortgage free in another 4-5 years
More spare time
I work in a big industry and have several relevant qualifications so could get similar work in the industry if necessary
My company is not a great payor - but has a great rep for training and people. However I've done about 5 industry qualifications that the co paid for - wouldn't do any more. Anyone I know who has left in the last 3-4 years moved for a significant salary increase.
Possible career change (I have a couple of ideas) - would be self employed, could work anywhere
Possible part time working
Would fit in with plans for future with partner


Cons
Not guaranteed a job on same salary (but wouldn't need the same level to survive)
Recession on the way
Length of service - I might be institutionalised!

I went for a new position internally about 3 years ago, but decided it was not a good fit and pulled out. Was hugely relieved when I made that decision (and subsequent events proved I had made the right choice for me)

But I have the opposite feeling about this potential change - gut feeling is now or never and I'm excited about it!
(even if I apply I might not get offered the package but people in similar positions in their careers have been offered packages in the last few years so I think I've a good chance)

Congratulations if you got through that wall of text....what do people think?

[bigdecisionaboutwork]

Oh dear god that was a long one!

Summary - take voluntary redundancy now, pay off nearly all loans, can change career, go part time, or take similar job for a few years and pay off rest of loans.

Mad to do it or good opportunity?

[TH22]

As someone who has taken the leap themselves, I would say DO IT!
I was with my company for 10 years and could've easily stayed and progressed. But I felt myself stagnating and knew there was a bigger world out there.
Whilst I had a fair few 'omg what am I doing' moments, it was by far one of the best decisions I've made!
Your pros far outweigh your cons. To significantly reduce your mortgage will be a huge relief. Whilst I know you fear you may not, you absolutely will get another job. It might not be to the same level, it might be even higher!
I walked into a new job after only 3 weeks, I was incredibly fortunate. Job hunting is scary but you sound like you have built up a great career that will absolutely stand you in good stead to get another job!
I say...do it! Good luck :)

[DragonflyInn]

It sounds to me that if you don’t apply for it you might really regret it in the future. I’ve stayed with one company way too long in the past because it was fine, sensible etc. it was only when I took the leap of faith and left that I discovered a role I really loved. I’d do it. You sound as though you’re starting to think beyond your current company anyway, so you really may as well be paid to leave!

Good luck

[BackforGood]

I think I'd do it, with all you've told us.

I do think it will be difficult to just walk into a job at this time (nearly all the young people in my family have been made redundant, or are currently on furlough waiting for their redundancy, or have graduated and can't find work- so I do realise it won't be easy) but you could just about get by with one shift a week in a shop / bar / restaurant etc, or with some short term or seasonal work and periods of unemployment.
I think you'd regret it if you didn't.

[MissTediousGirl]

I'm in a similar position and planning on pursuing redundancy option. I've been with employer for 20 years and need a change anyway, so I reckon why not take advantage of opportunity to leave with a decent payment. It's a calculated risk but the potential benefits are good in your case. The jobs market is horrible (particularly for young people) but, depending on the sector you work on, the market may be better for someone with your experience at a company with a good reputation?

[LemonBreeland]

It sounds like it would be a good option for you. What is the job market like for your industry, or skills? Have you checked that out? THat would be my biggest worry.

[bigdecisionaboutwork]

Thank you all for the answers! I know I'm incredibly lucky in the current climate to have this opportunity and (finally) after raising my daughter solo for 20 years she's no longer dependent so I'm only risking myself. I applied for a statement of my figures today and unless my own estimates were entirely off I'm going for it! Told my manager on a zoom call on Tuesday that this is my plan ( I absolutely love her and wanted to give her as much advance warning as possible) - she's considering it herself. She said the only issue is that she's been talking me up to our director do he might not want to lose me 😆 so I'm not taking it as gospel that I will get the package, but fingers crossed x

[bigdecisionaboutwork]

Lemon I have an idea for self employment that can be done anywhere with WiFi and part of the package is that they will pay an extra €5k for training which I've already researched (can be done online)

[RainbowDash101]

Going against everyone else, I don’t think I would unless you are sure you can find something else. I have a couple of friends who have struggled to find something else after 50 .

[RainbowDash101]

Oops sorry missed your message that you’d gone for it. I hope it works out for you .

[bigdecisionaboutwork]

Hi Rainbow, I haven't actually applied till I get confirmation my calcs are correct but thanks for the good wishes (hopefully my calcs are ok, I'm fond of a spreadsheet and have rechecked it about 10 times!)
I reckon 2 days week on min wage will give me enough to live on (so not relying on my self employment idea - which, if successful, will completely replace current salary). Am excited!

[RainbowDash101]

Oh good 😊

[bigdecisionaboutwork]

Oh and have just re read my OP - I had got my original figs wrong - I'll have about 2k debt left AND I hadn't included my pension ( pension? Fuck am I old?!) so may have no debt at all plus a few k in savings - apologies to anyone who made comments based on original info.