To think my sister is being unreasonable

[frillyflower]

My sister has just been offered redundancy with a pension of around £1000 a month. She is early fifties and is divorced. Her kids are grown up and left home. She has no mortgage and no debts and she never really liked her job anyway - but she is terrified of living on a grand a month. I keep telling her it will be fine and nothing to worry about. AIBU?

I think that sounds very generous- and I guess there's nothing to stop her getting a part time job on top of that to top up is there?

That would depend on her lifestyle. Only she knows the maths.

It's her decision though isn't it? She may have other debts to worry about that you are unaware of or she may just feel that she's not ready to give up work yet. She's not and old woman.

She lives in London - but I still think she will manage fine. I think she's also worried that in current job climate and at her age she won't get a part time job anywhere and the pension won't be enough.

Its £250 a week with no rent/mortgage thats a fortune.

How much of a drop will it be for her monthly? I'd be more than happy with that amount a month but you may not know all her financial circumstances as well as you think.

What skills does she have that she could use part time to top up her pension? Could she tutor, for example?

Your sister isn't being unreasonable, because most people about to take redunancy or retirement are fearful. It is livable, but any cut in income means a change of lifestyle, if she doesn't want that change then that is her right.

There may be many different factors in as to why she is worried, including getting old and nolonger being part of working society, don't be hard on her, it might not just be about money.

It isn't certain that she will get another job and if she is alone then she is bound to be concerned, especially if she is used to being independant.

She gets just over 40K a year before tax so it's a drop of course, but as she doesn't like her job I think she would be missing a good opportunity to be paid to leave.

I know she doesn't have any debts (she's really careful with money), but she's always anxious and worries she will end up not being able to manage financially. I just want her to be happy and I really think she will be if I can convince her 1K a month is a doable sum to live on is she can't get another job in a hurry.

Living in London on 1000 per month once the bills are paid

council tax, gas/electric/ ground rent if appartment, water bill, car tax and insurance could well add up to around 600-700 per month leaving possibly 300 a month to live on, which when you are not working and have time on your hands is 75 per week.

Which may sound a lot but if the previous income was 3000 per month then it would be an almighty drop and this is possibly why she is nervous about the prospect as she will have to cut her cloth accordingly

£1,000 a month is actually £230 per week. Tax and Ni to be paid on that? lose 25% takes her to £170 odd per week.

Council tax
Gas
Electric
Water rates
house buildings /contents.
Car insurance
car tax
Tv lic/sky subs
life insurance

She's down to about 100 per week. Not much to actually enjoy any quality of life is it? Thats an existance if she's used to a superior lifestyle.

1. Any reduction in income is hard - if you earn £100K, and your salary drops to £75K you will find it difficult.

1. A job is often about more than money - particularly when redundancy is forced on you.

12k a year is a HUGE drop from 40k a year.

I would be scared too and atm our income is just a smige over the redunancy payments she is being offered.

Its not just the money is it? Its not having a job.
Her kids might have left home but that doesnt mean she doenst have kids.

She would be better off than many but she wouldnt be living the high life or anything like it!

When I say 'unhappy at work - she has been in tears before now. She is a highly qualified and competent woman, but the politics where she works is appalling and she was promoted into a role which was then sidelined. That's why I am bothered about this - otherwise as people have pointed out - it's for her to decide not me!

I would say go for it. Especially if she has skills to supplement it.

Your sister is definitely not being unreasonable. Did you sit down and do the maths before forming your opinion?

Did you consider that pensions do not tend to increase in line with inflation?

That potentially she would be giving up 15 years of earnings and pension contributions on her current salary?

That she might live another 40 years?

That she'll find it difficult to get a job at her level at the moment?

That it's easier to get a new job when you're employed as opposed to unemployed?

That in London, £1000 a month before tax will just about cover her costs, leaving little for clothes, hair, travel, hobbies, courses etc?

I think your sister is being extremely sensible, and you should stop trying to persuade her to do something so utterly stupid.

And by the way, hardly anyone loves or even likes their job - they do it for the money.

Jobs aren't exactly plentiful, especially PT ones that will have every mother with school aged children hunting them out!

if I were her I would look at the alternatives. Temping perhaps. Sub contracting. Agency work.

Redundancy is a big step. It's a life changer. Plus you also have to deal with the feelings of 'rejection' and without making light of it, it can be a kin to berevement. The whole dynamic shift of not having your collegues on a day to day basis. No structure to your day.

To the outsider, redundancy or retirement can sound idyllic but it can become a lonely and sterile existence if there isn't a 'Plan B'.

I hated my job and had§tried finding other jobs for a while. I had always dreamed of being made redundant, but when it happened it was a real shock to the system. My self-confidence took a real bashing so as others have said, maybe it's more than just the money.

The money is a huge drop, even if you are unhappy. I'm working now, but we're struggling compared to how it was before and now I can't pick anything up to buy without thinking about the cost...and I'm just talking about basics.

I think she's being very sensible to be cautious about this.

It might be the right decision, it might not.

But surely you would be more use as a sounding board when she has such a big decision to make? Rather than pushing her into doing what you think she should do?

Going wildly mad - whcih your sister is probably far too sensible to do - I'd be selling the house, buying a camper van and whizzing round Europe having a lot of fun! But I'm a bit mad like that!

Yes, and then you would come back to absolute stress and poverty, troisgarcons, as you would have to pay rent in London out of that £1,000.

Yes - she would never do the camper van thing!

Is 'just been offered redundancy' on Friday afternoon? What's her deadline to reply?

Yes, and then you would come back to absolute stress and poverty, troisgarcons, as you would have to pay rent in London out of that £1,000

Well there is that down side - but I'd have had fun! (we can all dream!)

Random - she has a few weeks left to decide.