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.

Take it. I know people who have turned down a great voluntary deal (1 year salary + all RSUs in cash), only to be made involuntarily redundancy at statutory rates later on. Also tech sector.

Lol

I took way way way less redundancy during COVID. I hated the job but had been treading water for ages as job hunting and writing applications were grim, and almost needed to be fired from the cannon.

What was crucial in me deciding was as it was just me and one other in our department, I thought I was safe. To have that shattered would have meant I would always be looking over my shoulder waiting for the next round. I had my consultation call and everything they said confirmed my suspicion that if it wasn't now it would be eventually so I told them I wanted voluntary, took the money and ran. It helped I hated the role and so the fact they were effectively paying me to leave, yes please!

However I very much discussed it with OH and applied for everything going even if it was a case of taking SOMETHING while I continued to look. Fortunately I got one of the roles I wanted before my notice came to an end

The fact you own your house and you have no debts and the amount you'd get would be life changing for me would make me take it. Could you put a decent chunk in something like premium bonds which can hopefully just stay safe but also acts as emergency fund if it takes longer to get a job than you think?

*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 🙂
*
@Rollonsept - I just wanted to say thank you for these words. I know it's not my thread and I interrupted and everyone told me so which is fine. But I was having a shit day and shouldn't have opened or commented on it. These words really cheered me up today. You are right and I did make choices similar to yours and I wouldn't take those back! Must remind myself of that!

Thanks again

Back to your predicament OP!

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 🙂

I work in the tech industry and I'm a high earner. I walk the kids to school in the morning and walk them home at pickup, i do every sports day, nativity, and so on. My job enables me to work remotely, live by the sea and take my kids to the beach after school in the summer.

I have zero desire to kill for what you have because I already enjoy it. I prioritise being a mum by working in an industry that provides flexibility and reward. I appreciate you're trying to make someone feel better but don't do it by throwing the rest of us under the bus.

Take it.

1. First round is always the most generous.
2. If you don't, you will spend every day of work wondering when/if the second round is coming.
3. Don't underestimate how depressing is working in a business that is in trouble and everyone is scared for their job.

@Heatherbell1978

Thank you, we were totally broke when I first joined here, just read the threads that I could relate to.

Now we are not as broke I begrudge being made to feel guilty for it. 😡

But the key thing is by claiming the OP will have her NI contributions credited, which might be important from a state pension perspective in the future. She's as entitled as anyone to the contributions based payment, though I think that's only for 6 months?

@MaryQueenofSocks me too, tech sector and a lone parent, it's a fantastic sector for flexibility in life.

OP if you take the package and go for a new job the tech sector is pretty buoyant but it depends what you do. First 6 months in new role is usually demanding yes but once you are in the rhythm of the business I bet you'd still get the same balance back you get now.

@jeaux90 I know right!

I love it, and I know I can push my career as far as I want without sacrificing time with my kids. I'm at my peak earning capacity and I work less hours than I did when I was earning a third of what I do now.

I just wish we would stop encouraging women to buy into the 'either or' narrative when it comes to be a mum. You either choose your kids or you have a rewarding career. It's not binary anymore. There are so many opportunities to have both in emerging industries.

I'm trying to persuade my DD to be a Techie, I keep telling her how great it is for women. She's only 6 so I've got time!

I thought it was only the first £30k that was tax free. It was the case for me about 10 years ago. I was speaking to a friend yesterday and he’s taking voluntary redundancy and he said the first 30k was tax free.

It is the first £30k. Anything above that is best invested in a pension.

Do you get more if you take voluntary redundancy now then might get less in 18 months? If no difference, I'd stay in my current role but try to network across sectors to set myself up in case mandatory redundancy in 18 months.

@luckygreenduck, you sound like a party animal. When I was young I'd say this too, but now I'm older I'm more cautious.

😂😂😂 yore not wrong.

Only the first £30k of redundo is tax free. The rest is taxable at your highest rate so OP is correct to say she will pay tax on it. She could ask to have some of the excess over £30k paid into a pension, which will give tax relief on that contribution. Worth asking your employer to fund independent financial advice given it is a relatively large sum.

Just catching up.

I am leaning towards staying...

1. It is a very large company and redundancies happen all of the time for various reasons, I don't think the scenario of 1st offer being best will apply. The company overall is very stable and the redundancy terms are only likely to change if something significant were to happen the business. Still a risk.

1. I want to remain financially independent. I have good savings so even if I take the VR I will be independent but I would weaken my situation.

1. Current job market in tech sector (which I realise could be worse in another 18 months)

1. High risk that a new role will mean not being able to do school runs, long hours, lots of travel etc. I think for me this outweighs the risk of the future redundancy package being at a lower amount.

All of that said, I am still tempted to just go for it

Either way I will def apply some of the advice on this thread so thank you again.

Adding my 2 cents re. Job seekers allowance, I probably wouldn't claim because it would be taxed @ 60% anyway (would check NI implications). However I have worked since I was 16 and have paid at least £500k in taxes and NI excluding non income taxes. I have never claimed any kind of benefit but would not feel bad if I did.

No it’s not’s

No it’s not I meant !

I took a lump sum that worked out to over a year’s salary after tax, then started up a consultancy and went contracting. Would that work for you? Contracting paid more than twice my old salary. And I was back at the same company before too long.

Worth checking out if any tax efficient implications to use your redundancy money for. For example I’ve known people put it into their pensions to save tax and draw it out again, dependent on your pension scheme this may be an option

Oh yes I agree with you, I’ve seen the same with people freelancing or “consulting”. I was just pointing out it’s not illegal for companies to have the policy that they won’t reemploy for 6 months or more (even though they often find loopholes!)

Bloody hell grab it and run to the hills screaming FREEDOM!!!!

Id be staying firmly put OP, especially if it's a job that affords you flexibility and is relatively well paid

@MaryQueenofSocks

Yes Queen (of socks!) Thank you.

I get 2 hours quality time with my daughter every day, and have the flex to take her to the park for a play if i fancy a late start / early finish. I can work remotely from our families summer house in ireland when we want. My dh and i go out on date night once a week. Life is good.

I hate that narrative i am a shit and/or absent mum/wife because i work full time in a demanding job. That I have "sacrificed" "precious moments that you never get back" "working for the man".
It's just bollocks. We live in a beautiful house we can do nice things (nicer than i ever wanted to be honest) and i have never earned as much and been able to work as flexibly as i have now.