Posting for traffic - anyone with financial sense? What should we do!

[Traitorbaiter]

These are our circumstances.

Husband 59, just been offered 30k early release from his job. He currently earns 25k.

I’m 51 working FT earning 40k.

He has a flexible pension with 68k in it and a DB scheme that will pay out £50k lump sum and 10kpa when he reaches 65.

I have a flexible pension that is projected to be 180k by the time I am 60 and I also have a DB pension that will pay £40k lump sum and 8kpa when I reach 65.

We have no mortgage or debt and 70k in savings.

Big decision is whether hubby takes the 30k and gives his job up or goes part time / finds another FT job - he doesn’t feel ready to fully retire but doesn’t want to pass up the offer of the early release lump sum.

What do we do!!!! 🤷‍♀️

My heart would say take the money and enjoy life - I could always get a little part time job (not a career based one) but my head would say get financial advice due to the tax implications.

Sorry, that's not much help really.

Your pensions aren’t bad and you have no mortgage. Does your salary cover all your outgoing? If yes then I’d take the money and invest it, then get a part time job for some extra income.

Does he have an option to stay?

Same as @DatingDinosaur

If he is happy to go and do something , and isn't enjoying his job, then I'd do that. But, finishing your 'career job' early, doesn't just mean you lose that salary, it means you are not longer paying into your pension, so I'd get some predictions of the difference that makes before committing to anything.

It also depends on his skills, and his willingness to 'do something else'.
I know of two "handy" people who retired from pressured jobs early, and started doing 'DIY' stuff for family and friends. From recommendations, they could work all day, every day, at a decent wage, if they wanted to, and the crucial part is, they are enjoying it, and they work for themselves and can work as many or as few days as they want. I know someone else who works for an agency, taking admin roles. I guess a lot of this depends on them working in a City where there are more opportunities.

I would absolutely take the lump sum even if it meant risking that I wouldn't get another part time job. You can actually live on a lot less than you think and you have decent savings. You are in a very similar situation to me and dh and if he was offered this I would strongly encourage my dh to take the money !

Thanks all, DH is not quite ready to retire so he’d rather look for another job if he leaves. It somewhat defeats the purpose as far as I’m concerned though. I’m also concerned that for the next 5 years the onus is on me to continue working. What happens if I become ill or lose my job?

How soon does he need to decide?
Can he apply for a few jobs, and see what response he gets?
Because I'm getting flat out no's right now.

If he doesn't take the money will he end up being made redundant with less money?

I'd absolutely take the lump sum and then look for another job.

I work in an industry that you can retire at 60 .
I know many male colleagues retire and then get part time jobs that have no responsibly as such ( work in retail , B &Q , seasonal work in council parks , golf clubs , libraries , driving kids to school in minibus etc.
And they say they enjoy doing that much more than their actual profession.
Has your dh thought of that ?

Take the lump sum and find another job? How employable is he? Has he put any feelers out? Feels too young to retire so i would want something lined up either more money but part time, a bit more money and about the same hours.

basically if hes employable with another business take the money and run.

if hes just cashing out with no plan. Dont do it.

What savings does he/do you have? Depending on his skillset and his health his options may be limited in terms of getting another job quickly.

I think your husband should take the money and look for another job.

Minimum wage has gone up quickly recently so he could do any full time job and not earn much less than he earns currently.

He could look for something related to his experience or something completely new.

If he finds something in a few months that matches his wage he'll have 25k ish to bank or take you on some great holidays.

My opinion does rely on the assumption that your husband is motivated to find new work.

I'd try to project how much more he'd add to his pension if he stayed. Longer term, that might actually be more than a 30K lump sum now. Also, how would that 30K be taxed? It might evaporate very quickly in the face of HMRC.

Also, as PPs have suggested, he should put out some feelers for new jobs. In my industry, they're hiring the high energy whippersnappers at the bottom of the payscale first. It would be nearly impossible to find a job at 59 and/or it would require working like a 39 yr old for half the pay which would totally defeat the purpose.

Definitely take it and do a hobby job. Hope your 70k aren't just in a savings account though, they'll depreciate. You should invest it in an investment ISA really. Bonds should soon deliver good returns. Maybe that's what you meant.

If they are offering him a year's salary to go, it seems they really want him out. I'd be worried if he didn't go they'll then force him out later for less money. I'd say take the money, enjoy the summer off, then look for another job to work for a few more years until he's ready to retire.

If we were in a similar situation I'd be taking the out providing DH got another job on a similar salary.

But it would also depend upon pension impact etc.

Aside from pension do you have other savings? Children? What age were you intending to retire? I'm in my early 50's and plan to retire at 65, so how does this impact your plans? If your DH isn't ready to retire what would he want to do?

Do you have dependent children, or young people at university? I’d be more inclined to take a punt if it were only the two of us affected.

Also…you were asking for money advice not marriage guidance…but if he retires and doesn’t do 75%+ of the domestic chores, shopping and admin, you might end up resenting him. This problem is more likely to arise if he doesn’t pull his weight currently. Not casting aspersions, just saying!

It’s an early release scheme that’s being offered to all employees - basically they have too many perm staff and they’ll be replacing these jobs with agency workers.

The scheme can be withdrawn without notice at any time, he’s factory worker and had worked in manufacturing all his life. He’s got no qualifications but lots of experience.

No mortgage. No debts. No dependents.