40% pay cut - should I do it?

[Nutbutter]

Name changed because some details here are a bit outing.

I appreciate this is really a first world problem. Sorry in advance.

Live in London, work as a lawyer earning c.£100k. DH is an academic on £30-35k (changes depending exactly how much teaching he does). Our mortgage payments are £2300 pcm which is c.30% of our joint income.

Thing is, we’ve just had a baby and I can’t face the thought of returning to a job that means I’ll never see her during the week (usual hours are 9.30-10pm, and often much later, plus some weekends). There’s a job going in the public sector where I may be able to work 5 days over 4 and generally be able to leave the office at a better time and might be able to do nursery pick ups etc. Downside is the pay is £60k. This would mean our mortgage payments would be around 40% of income. We’d be able to save £500 pcm for emergencies etc on this (also includes £1000 nursery fees).

Does this sound doable or is it a terrible idea? Ideally I’d like to have another baby in the next couple of years. I could stay at my current firm to do this but the public sector role doesn’t come up very often.

That is a very large pay cut, is there opportunity to progress in the public sector role? Could your DH progress to make up the loss?

Thanks Pinkyyy yes my salary would increase in the new role up to c.£85k after 4-5 years, which would be a lot more comfortable. DH can’t really earn more than he’s doing at the moment. He will be looking after our daughter 1 day a week and I’d rather he did that than more work I think.

Due to income tax rates, going from £100K to £60K won't result in a 40% drop in take home pay, maybe more like 30%, but appreciate it's still a chunk of money to drop even if still a substantial salary.

I've downsized my job and salary substantially in the last few years too and although I don't have the same disposable income and 'luxuries', I'm so much more satisfied with my life.

Yes sorry I should have been clearer - I’d lose c.£2k pcm in take home pay. Though might now be entitled to child benefit etc that I wouldn’t have got which would help a bit. Also if I could do compressed hours and take the baby 1 day a week we’d save c.£250 pcm in nursery fees.

I’d really like to make it work but it’s such a big change and maybe it’s foolish in the current climate.

Really good to hear littlebittykitty

What makes you think you'll go from £60k to £85k in the public sector over a few years, as it generally doesn't work like that unless you get promoted to a much higher grade?

Can your DH go part time to really cut down the childcare needed - it will be taking up most of his pay anyway.

What are your current pension arrangements? If you join a public sector scheme, it's likely to cost £3-400 pm on that salary, but it will mean that your effective salary is reduced and you'll be entitled to some child benefit.

Your mortgage is very high - any chance of remortgaging to get a better deal and increasing the term for now to reduce the payments?

I wouldn’t work 12 hour days and weekends with a young family for all the money in the world.

So yes, I’d take the £60k job every time.

Go for it!

Nowhere near the same money but I left the legal industry for the same reason. My health and potential family were worth far more than money could buy.

If you can manage, I’d make the change, you can’t get that time back and I always remember someone saying, who on their death bed wished they’d spent more time at work.

Id do it in a heart beat. Sounds like money wise you'd still be ok and when you're old and wrinkly will you be thinking of your money or your child. I know it's not that simple but you get my drift. I spent lots of time with my dds when they were young but still worked and returned to work much sooner than I would have liked and it's such a huge regret that j didn't have more time!

I’d do it. And move for a smaller mortgage to negate the difference

Go for it! Will make a much better work life balance. Money isn't everything, and you'd still have a great wage. Everyone says it, but children really do grow up fast. Hope everything works out whichever decision you make.

Yes, in a heartbeat. A good work life balance is absolute priority. It might feel like more of a squeeze because of your outgoings but you will never get this time back and I think you'd regret it otherwise.

Where in the public sector? For that much money where I work you are still expected to work over and above the contracted hours. The public sector is tough at the moment so as long as you don't go in thinking it's an easy life I'd do it but we've had people move from private sector and then be horrified by what's expected of them on so much less money. And that's at the 40k level.

So you'd have a lower wage, but less tax, less travel, less childcare costs?
Would it be possible to freelance in your present role if you were short of money?

Either way, I'd take the new job tbh, family time is more important.

Have a job on slightly less and I also have 2 young kids
If I could get that ratio I’d take the new job in a heart beat

Speaking as an ex-lawyer (albeit not a City one) I suspect that even if you don't make the break now, you will eventually. Took me 3 kids to ditch the legal career altogether. Trying to compete as a successful female lawyer and balance motherhood involves a whole new world of guilt and sacrifice. If you think you could squirrel away some of your higher earnings in order to make a buffer for a drop in salary at a later date that might be a halfway house for now?

I’d do it. No amount of money compensates for not seeing your child during the week and having a more healthy, flexible work life balance.

Though don’t bank on your salary increasing by £25k in a couple of yrs in the public sector and nor will you be eligible for child benefit on £60k pa.

With those hours I assume you’re in corporate/m&a? Have you looked in-house? There are loads of opportunities for corporate lawyers in particular and while the hours aren’t 9-5, you will have a lot more flexibility than you do in private practice and may be able to do some days from home. It might give you the best of both worlds - far better money than public sector law but with more opportunity to see your DC. Fwiw I moved in house a few years ago and never looked back - I have 2 DC and despite working full time, feel I have a good balance. There is much more to law than private practice

Are you sure your existing company won't let you come back part time? I was an Exec in the City (not a lawyer but similar salary) when I had my first and managed to negotiate a 4 day week with one of those days working from home. I was the only woman on the team at the time so the first person to negotiate this. It wasn't easy but ultimately, my company wanted to keep me. I work with in house lawyers in my bank who are mothers and similarly, they were offered flexibility. Given your position, I would exhaust all options with your current employer before taking that sort of pay cut. A lower salary doesn't equate less stress or more job security IMO.

City lawyer here. I also wonder whether going in-house or moving to a less intense firm might be better. I am in a fairly large city firm and I don’t regularly work those kinds of hours. If they’re only paying you £100k to be honest I think you’re being mugged off. Sounds like you work US/MC firm hours. I know people who work 9-5 in house and get paid more than £100k.

I’d be wary of assuming that you won’t end up working long hours in the public sector - can still be very high pressure with a lot less support (secretaries etc)

Thanks so much for the replies.

To answer some of the questions, the job spec states that salary will increase by 10% after the first year and 25% after 4-5 years, presumably subject to good performance etc etc! It’s a very niche and specialist legal role in the cabinet office.

At the moment I pay 11% of my salary into a pension and my employer contributes I think around 6% so have a good pension pot already.

I’m in disputes at the moment and in house roles in my area are few and far between. I could ask for 4 days in my current role but in my experience people tend to still work 5 days but on 80% of the pay, and the 4 days id be in the office would be even longer than they are now. Before I had the baby I thought I’d be happy to go back - foolishly had no idea how motherhood would change everything.

DH is an expert in his field and has worked really hard to establish a fantastic career in an area he is passionate about. I wouldn’t want him to cut back and anyway it wouldn’t really help the issue as my problem is I want to spend time with the baby!

We fixed our mortgage for 5 years just before the baby was born so can’t remortgage. It’s a family home and we don’t ever see ourselves moving.

Any more thoughts very welcome.

I'd do it. No one on their deathbed ever wishes that they spent more time at work.

Those working in the public sector who work beyond their contracted hours - how much and how often?