To take voluntary redundancy @ £115k

[anon5mill]

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.

I think @Dotcheck has a point here, you can own your choice or have it forced upon you. One is easier to deal with mentally than the other.

Please get your own financial advice, I’m sure you will, around the posters saying put it in your pension. I was in a similar position and in your 40's advised not to do it as you are tying your money up for so so long with no access to it if you need it

personally I would take it if the company isn’t doing too well. They can easily slash their redundancy terms in 18 months time

How likely is it your firm will go bust and you will end up out of a job with no redundancy package within that 18m timeframe though? If you're confident that this possibility is low, then hang on for the 18m.

What role do you do, out of interest?
Sorry, not related to OP post but I work for a large multinational firm and we're heading for a round of redundancies too in the tech departments. Mostly senior, non-technical roles though. Lots of ambitious, strategic 'growth' projects have been cut.

A lot of recruitment going on in my area still (infrastructure engineering) but that's probably because so few people have the skills needed. Things like front-end, Java developers etc are getting very competitive.

By my area I meant outside the firm!
I know from my PM, business analysts etc friends those who are more 'project' based the market has been slowing.

All redundancy pay over 30k is taxed

I agree

It’s not illegal. Most companies do this. You can’t take a tax free redundancy payment and then start a new job with the same organisation soon after. HMRC can investigate and ask whether it was a true redundancy in the first place.

Thank you so much to everyone for sharing your experiences, perspectives and advice. Lots more to think about!

It is a really difficult decision but I also know I am really fortunate whichever decision I make.

Responses here are about 50/50. Not sure how I will get off the fence but the comments around the state of the tech sector I think confirm my thinking that it may be pretty difficult to get back into this kind of position at the moment.

No school fees to worry about!

This is exactly what I would tell other women but still find it hard to convince myself

Usually the first round of VS is the best offer....but it depends how many accept and the financial situation of the company.
If no-one goes for it they may up the offer if they can afford to.
If they can't afford to and continue to decline then ultimately the forced option will be closer to statutory.

Typically our highly unionised VS offers have been pretty good and lots of older staff choose to go. But you have to apply, and can be declined if your package works out too expensive or you are considered too critical. So (touch wood) never had a round of forced redundancy....but we do get people transfered to jobs they don't want, who then quit with no package.

If you need a job, and don't think you will find another within 12 months I would hang tight, simply because they may shed enough with this round that you can be secure going forward.

If you want some time with the kids and think you can find an alternative then seriously consider it.
Remember we pay a lot to work...childcare, transport, meals at work, convenience food when too busy yo cook....so you may cope for longer than you think on a payout or transfer to a different type of role.

Neither does your reply. Start your own post 😂

Well errr thanks for sharing that.
Why not start / join a thread that's more your thing then.

I was in a similar (sub 100k salary) position 18 months ago. I vowed during the previous redundancy round that I would go so, had already 50% made the decision, but it was still hard.

Get a calculator out and spreadsheet the hell out of it!
Can you live off your partner's salary?
What is the leaving date? I negotiated to leave 1 May to make the most of tax allowances (and have more time before I had to get a job).
£30k is tax free, then you'll pay tax on the rest at whatever rate for that year. You are in the 60% maginal band, so definitely get the payout at the beginning of a tax year.
You can get 6 months of job seekers allowance even with a large redundancy payout.
Do you have redundancy insurance?
Watch out for the end of corporate things like death in service cover (needed for mortgage) health insurance. Company car.
Expect your tax code to be buggered for the year. Redundancy was paid to me on an emergency tax code, then new work too. So I didn't see the cash until I did self assessment the following April (first time I've ever done it early!).
I paid some money into a personal pension to get under the 60% tax trap. Your employer might let you pay into pension via salary sacrifice, with asking. Mine wouldn't.

I got 11 months salary in April. Picked up a short contract with a supplier for a few weeks, then 6 months off/job hunting. Currently on a fixed term contract for a target company. Lower level job than before but pays more.

Start looking for work properly 6 months before you are able to start. At your level 6 months notice is quite common.

Good luck!

@Rollercoaster1920
I can’t imagine claiming jobseekers on such a high payout. I would hope OP is more responsible than to claim benefits she doesn’t need

I took voluntary redundancy and I was in the first round of redundancies within a couple of years and I had a better deal than those who waited. Everybody was made redundant in the end. So I agree with pps who say take it now.

Btw yes it was taxed over £30k.

I didn’t get back to work as quickly as I hoped due to personal circumstances but as long as you have a plan that you stick to you should manage. I was also desperate to go so in that sense it was a no-brainer.

Why shouldn’t she? This is why she paid national insurance. What a ridiculous, sanctimonious attitude.

Perhaps. But is IS irresponsible to claim for something you don’t need.

I'd suggest speaking to a recruitment agent specialist to your industry if you haven't already OP. I know they all talk themselves up but they should hopefully be able to indicate what the market is like for someone of your experience and level and how flexible employers are.

If they were to enforce redundancy later, I just did a calculator that suggested statutory redundancy for a 45 year old, earning £150k p.a., having worked there for 25 years is only £14,146. Pay is capped at £643 per week for the calculation purposes.

If you think enforced redundancy is likely, and you're hesitant about whether they'd come up with a termination settlement, I'd take it now and start the job search.

To begin with you can focus on finding something that suits you perfectly, then after a few months can consider some compromises. Having a substantial redundancy in your bank account would at least help to pay for any extra childcare costs you might incur if you have to be in the office more regularly, for example.

Unfortunately, I've also known senior people that have been made redundant from the NHS and have then been re-employed almost immediately on a contract basis, earning more than they did as an employee.

Different budget heading isn't it?!

It also makes a mockery of their own rules about re-employment, but it is the NHS, so are we really surprised?!

It's about getting your NI paid.i was told by a friend in the DWP who checked for me that I can't claim UC but ask for no money just NI contributions, I have to claim jobseekers to get the NI. Madness.

This.

You can avoid that to a degree by paying the maximum you can into your pension.

I would take it, and invest the money if you can, take some time off. I’m sure you’ll get another role in the tech industry.

Comparison is the their of joy. Chin up lovely... you likely have something others don't have and would kill for. Our generation lacks being content. I work part time by choice, I prioritise being a mum and making memories with DC who is 8. I do all the school runs this come as a finicial cut for me but in happy with my choices. You do you 🙂