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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To take voluntary redundancy @ £115k

206 replies

anon5mill · 13/08/2023 19:22

Around £80k after tax. Or should I stay in current role with package of £140-150k + pension, healthcare. Current role is comfortable and suits lifestyle. Could be difficult to find another role with the same flexibility and money. Have niggling doubt about taking the redundancy. Have dependents, already own home, no debts. Likely to be made redundant within next 18 months if not now.

OP posts:
Lookingatthesunset · 13/08/2023 20:21

billy1966 · 13/08/2023 20:18

I would hang on.

You will get a package in 18 months and will have time to upskill, get organised.

If you could walk into some convenient quickly, or even contracting, wfh, would it suit you to do that if you think the offer in 18 months would be basic.

^this.

murasaki · 13/08/2023 20:23

I've just taken it on 56k, a year, first 30 tax free. Money to arrive in two weeks....it was restructuring issue to for me. I will start looking in month or so, expect to have something by march, or temp if not.

backoffbuster · 13/08/2023 20:24

If you are earning the big bucks and not particularly stressed or Overworked , then I would stick with it.

edwinbear · 13/08/2023 20:25

I’ve been in a similar position, my pay out was £130k, but it was towards the end of the tax year so paid a HUGE amount of tax on it. It took me 10 months to find another job, on about 80% of my previous salary. I’d be tempted to take it, on account of the fact they will probably be paying more now, than they will in 18 months time, especially if the company isn’t doing so well. But just be prepared that it might take a while to find another well paid role.

Heatherbell1978 · 13/08/2023 20:25

It's a hard one. I work in a role where if I was offered redundancy it'd be decent - maybe £50k after tax. And also mid 40s with primary aged kids. I've always told myself I wouldn't take any redundancy offer until I had at least the max offer available to me for which I'd need another 13 years service as it's capped at 24 years service. And by then I'd be close enough to retirement to make the money stretch. But I'm also not in a role which feels at risk. If the amount on offer will be the same in 18 months (more I'd guess?) I'd stay.

mainbrochus · 13/08/2023 20:25

As your kids are young I would not take the money and keep the flexi job. It’s very useful so you can be at the school gates sometimes and just available for them.

mine kids are older and I am taking the redundancy….. the bugger is that when I get a new role will be taxed at 45%.

Luckygreenduck · 13/08/2023 20:27

If you want to take some time off with your children then this is your big chance. I would really consider it. You probably won't get that opportunity again if they are primary age. One year at home would be amazing and you could do some training or freelance work to keep your hand in without losing any money. Perhaps go on a big trip once you get a job lined up and blow whatever you have remaining.
Personally I would take the chance with both hands- life is too short!

Lifeomars · 13/08/2023 20:27

F0RBIDDEN · 13/08/2023 19:42

I have reached peak disappointment in myself. I earn 20k. MN makes me feel like such a fucking failure all the time.

Same here, I have never lived in a lovely home, been married to a man on £80k, or had a great job with a wonderful package of perks. The most I have ever earned is £27k . I feel deeply inadequate when I read the stuff on here about work and salaries. I feel like the average Mums Netter would faint with horror if they saw where I live or knew my life story. God only knows where I went wrong but by the standards of the lifestyles I read about on here, go wrong I certainly did!

Original poster
anon5mill · 13/08/2023 20:30

Womencanlift · 13/08/2023 20:21

When I took mine it was mainly due to the rumours at the time that redundancy packages were likely to change in the future. At that time I was being offered 3.5 weeks per year and I had about 15 years service.

I knew I wouldn’t get through another 15 years without redundancy threat and I would have been gutted if it dropped to 1 week per year which was the rumour

I was lucky to get a new, higher paid job very quickly so my redundancy package went straight into savings

OP if I were you the main factor for me would be is your package in 18 months going to be significantly different as that would make or break it for me

It's just an unknown on what redundancy package could be going forward. It is currently 2 weeks per year and I am at the cap already.

OP posts:
Totalwasteofpaper · 13/08/2023 20:30

Im in tech so prob better placed to advised than some others.
i am guessing its a non tech role as they are most heavily impacted.
When you say own your own home do you mean mortgage free?
In your situation I'd be inclined to take it BUT my strategy is to go into contracting / dial back from work once my oldest hits 10 to prep for entrance exams and be there for transition to secondary. I am already smashing cash onto my pension and used my mat leaves to stay tax efficient and under the threshold.

Based on the last round of redundancies at my company (one of the FAANG companies) this is a SOLID offer.
i had good visibility on offers made and your stacks up really well for uk. If you go through consultation redundancy may be lower than this and if you think redundancy is inevitable this is your least bad choice.

Heatherbell1978 · 13/08/2023 20:31

Lifeomars you don't need to read these threads though? Surely it was self-explanatory from the title. There are loads of posts from MNetters struggling on the Cost of Living threads if that would help you feel better. It's not a race to the bottom. Some people do ok, some don't.

Original poster
anon5mill · 13/08/2023 20:31

panko · 13/08/2023 20:19

Would the wind down work be interesting to you?

Not really but it also wouldn't be very challenging.

OP posts:
MaryQueenofSocks · 13/08/2023 20:32

I work in the tech industry on a similar level. If part of your company is declining, which is going to lead to further redundancies including yours, I'd take the redundancy package and look to move into a new area of the industry that's more future proofed.

I'd get straight onto a recruiter and let them know you're looking to move and open to using your skills in a new direction. Using as an opportunity to refocus.

Original poster
anon5mill · 13/08/2023 20:32

murasaki · 13/08/2023 20:23

I've just taken it on 56k, a year, first 30 tax free. Money to arrive in two weeks....it was restructuring issue to for me. I will start looking in month or so, expect to have something by march, or temp if not.

Good luck!

OP posts:
Heronwatcher · 13/08/2023 20:41

I’d go if you can manage it. I would put money on the fact that you won’t get such a good package in 18 months if the company is in difficulties. Plus I couldn’t face working somewhere for that time knowing I was going to leave shortly, even if the flexi time was good. Plus you say you don’t enjoy the job now, surely this is going to make it worse.

I think if I were you I’d take the deal now but also try to downsize my expenses (mortgage, childcare, holidays etc) so that the package lasts as long as possible and gives you the best chance to find something suitable.

namethisbird · 13/08/2023 20:41

Timetochangegonzo · 13/08/2023 19:54

I have reached peak disappointment in myself. I earn 20k. MN makes me feel like such a fucking failure all the time

Sorry you feel like this but it has nothing to do with the question - start your own post

Hilarious 😂

MaryQueenofSocks · 13/08/2023 20:44

I also agree that you'll be unlikely to get the same offer in a year or so. It sounds like the business is struggling. Remember they don't have to offer you an enhanced package.

BellaVita · 13/08/2023 20:44

DH said he would jump at the chance if he was offered this tomorrow.

After previously being made redundant (out of the blue) after 20 + years he and others only got the statutory amount.

Take it with both hands and run.

whitebreadjamsandwich · 13/08/2023 20:54

OP, have you had a solicitor look over the redundancy offer? How has the offer come about?

Tracker1234 · 13/08/2023 20:55

NeMama - over £30k is taxed. You could possibly spread over a few years but if you are in a new role you will be taxed at your new role salary PLUS the £30k in that tax year.

I wish people who have no idea what they are talking about re redundancy would keep quiet.

Theonlyoneiknow · 13/08/2023 20:55

It's tricky as nothing is guaranteed in 18 months time, the same offer might not be on the table ... You can take 30K tax free and put the rest in your pension (wouldn't be taxed on the way in) so that's a huge saving right off - If you don't need the cash now that is. I doubt they will assure that the same package will be available in 18 months time. Can you sniff out and see what the vibe is?

Theonlyoneiknow · 13/08/2023 20:57

The opportunity to effectively have a paid career break rarely comes around, something i'd seriously consider!

SiobhanSharpe · 13/08/2023 20:57

I took a redundancy payout of some 150k a few years ago and was able to pay it all apart from the 40k tax free amount into my pension. (Occupational) Then when I retired I took some out again as a lump sum.
I don't know if this is still possible but you can only ask!

Tracker1234 · 13/08/2023 20:58

I took a significant amount of voluntary redundancy and now the FTSE company is capping what they are offering so thank goodness I took the offer.

Lots of people put it in their pensions to save tax. I didn’t but put an extension on the house with the money which we very much enjoy

Original poster
anon5mill · 13/08/2023 20:59

Theonlyoneiknow · 13/08/2023 20:55

It's tricky as nothing is guaranteed in 18 months time, the same offer might not be on the table ... You can take 30K tax free and put the rest in your pension (wouldn't be taxed on the way in) so that's a huge saving right off - If you don't need the cash now that is. I doubt they will assure that the same package will be available in 18 months time. Can you sniff out and see what the vibe is?

A friend suggested asking them to amend my contract to include these current redundancy terms but I really doubt that they will to so. Has anyone ever done or heard of similar?

OP posts: