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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To become intentionally unemployed?

28 replies

BurntOutro · 22/08/2023 23:35

I’ve recently come into a large amount of money, the equivalent of a few years salary so significant but not life changing. Although I’m educated to postgrad level, I fell into low paid, flexible, part time jobs that worked around my DC. Now they’re older, I have thought about retraining or trying to use my degree but I don’t know what or how to go about it.

The truth is, I just don’t want to work at the moment. I’m burnt out and really not enjoying my current role and want out of this sector as a whole. I’m looking at what’s available at the moment for my skill set but all just fill me with dread, let alone the application and interview process.

There are so many sensible things I should/could do with my windfall - pay off the mortgage, put it in a pension, carry out the much needed repairs to the house - but what I really want to do is drop out of the rat race and live off it for a while.

Would I be really crazy to do this? What would you do in my situation? I’d be grateful for any advice.

OP posts:

SocialHistoryStereotypes · 22/08/2023 23:36

I would pay off the mortgage and look for a job I enjoyed.

Annaishere · 22/08/2023 23:37

Yeah take a year out x

burnoutbabe · 22/08/2023 23:41

I did that with voluntary redundancy-had my 37 year old equivalent of a gap year!
Got kitchen redone and enjoyed a nice year off.

nadine90 · 22/08/2023 23:42

It depends how much you have I suppose, and your other circumstances. Do you have a partner? Could you pay off the mortgage and live off their salary for a year or two while you retrain in something you’d love? Could you set up your own business? I don’t blame you for feeling how you do and would be contemplating the same in your shoes. But you don’t want to end up back in the same position in a few years. It’s an opportunity to change your life for the better x

Original poster

BurntOutro · 23/08/2023 11:16

Thanks for the advice all. I probably should have mentioned that I’m 40, a lone parent, the two youngest are still at home (15 & 13). XH has recently agreed to start paying maintenance again at a reduced rate (part of the windfall was back CM) but I don’t want to rely on that for obvious reasons.

I have around £100k in windfall and existing savings. Mortgage is £80k and the house needs at least £50k spending on it. I earn around £20k and receive top ups which I was surprised to find out are not affected by my windfall immediately. I will lose these if I quit working so that’s another factor to consider.

I think it would be an easier decision if I had a sense of what I want to do, what job I’d enjoy or a great business idea. I did start a wedding stationery business a few years ago and loved it but it was time consuming alongside the kids and work and I had to stop due to ill health.

All I can think is that I don’t want to work at the moment! I just want to enjoy myself but the thought of being anything less than financially prudent after many years of struggling is making me think this is a bad idea that I may regret.

@burnoutbabe, did you manage ok during your gap year? Did it affect your employment prospects when you returned?

OP posts:

murasaki · 23/08/2023 11:19

Voluntary redundancy for me too. Having a gap summer before I start job hunting, although I might make it a few months.....not working is great. I'm paying myself my same salary from the payout, and reckon it will last 15 months, but ideally I'll be back in work by jan/Feb.

burnoutbabe · 23/08/2023 11:24

no consequences at all - i put on CV - voluntary redundancy and took time to do XYZ house projects. i then got a contract role when i started work again and then into role i have been for last 11 years.

Chersfrozenface · 23/08/2023 11:26

OP, if you spend the windfall on, basically, paying yourself a wage to make up for your lost salary and benefits, how long will it last?

And after that, since you will still have bills to pay, repairs to make and presumably the mortgage to continue repaying, how easy will it be to get another job? Realistically. Including explaining the gap in you CV.

ClawedButler · 23/08/2023 11:33

It sounds like you're burnt out, in which case a proper break could be just the thing. Yes, it would be more sensible on paper to pay off the mortgage and stick at your job, but to my mind life is for living. I once quit a job with no job to go to, and I've never regretted it - and I didn't have a sum of money to tide me over either. (I did a bit of temping to pay the bills, and enjoyed the chop-and-change and low-stress nature of temp jobs).

These days a gap on your CV is not a bar to future employment - it's perfectly legitimate to say you took 3/6/12 months out to focus on creative projects or travelling or career re-mapping. And in that time you can be looking into ways of using your qualifications, perhaps doing some relevant training.

BMW6 · 23/08/2023 11:36

Pay off the mortgage.
Resign job and take 6 months off to recuperate.

BarbaraofSeville · 23/08/2023 11:40

Could you use the money to subsidise working part time in something you enjoy so it feels less like work?

That and making sure all the money is in the best paying accounts (you'll need to consider tax, but putting some of it in 2/3 year fixes means that you'll get a good rate and the interest doesn't count until the end of the term for tax reasons I think, and you get £1000 pa tax free allowance, but also put some in ISAs) means that the money could last 5/10 years if you're careful. Then when your DC are older and you've had a break, you might feel up to upping your hours, starting a business, whatever.

Depending on what work your house needs and what you're capable of, you might be able to do some of the work yourself as another way of making the money go further.

Or using the money to help you retrain (maybe in a couple of years when you've had a rest?) will be a good use.

I wouldn't rush to pay off your mortgage if the rate is still low either.

Summerrainagain1 · 23/08/2023 11:48

Are you able to find another job relatively easily? It so I would be inclined to take 6 months off and have a break. use the time to reflect on what you could do instead to improve your life.

HebeJeeby · 23/08/2023 11:49

Can you pay off the mortgage and reduce your hours or get a part-time job somewhere else? Then you have £20k to cushion the drop in wages a well as no mortgage payments going out each month. I think you would be unwise (from a financial point of view) to spend the money as a wage.

Lastqueenofscotland2 · 23/08/2023 11:51

Could you pay off the mortgage and maybe take 3-6 months out?

Cantstaystuckforever · 23/08/2023 11:56

If you were working full time with younger kids I'd say yes, but honestly - if you're working part time only, with older teen kids, you should already have a fair bit of time to yourself. You also don't have that much in savings if you consider the amount you say needs to be spent on the house, plus the fact that your kids are getting older and will be off to uni soon.

I'd say keep working part time, put aside a chunk of money for savings, some for the house and use the rest to look at investing in a career change or new direction and in the meantime make your life easier while working - e.g. can you get a cleaner?

Calmdown14 · 23/08/2023 12:03

If by top ups you mean universal credit, you can't claim this with savings over 100k so it will stop, even if you continue to work.

Surely you secure your housing by paying off the mortgage and then you don't need to earn much to survive. Use 10-15k to do the most essential repairs.

You'll get a tapered amount of UC with between 6k and 16k in savings so you can retain an emergency fund.

Apply for new jobs, perhaps part time.

You'll never get this again and could secure an easier life for much longer. Surely that's better than a year or two out?

Tapasita · 23/08/2023 12:05

Following with interest as I'm in the same position. I have recently had a windfall, about £80,000 but planning to spend at least £20,000 doing the house up (it badly needs it.) I would love love love to just hand my notice in, and take a year off (still pay the bills obviously out of my savings.) I work full time, my youngest is about to start school in September and I could just..........do with dropping to the kerb.

Thing is i'm about to start a vocational qualification in my field, which work are funding so that's kinda keeping me from handing my notice in!!

I don't know what to do really. I too worry about what would happen after the year, would I struggle to find employment? Possibly, I don't know

Pinkdelight3 · 23/08/2023 12:14

I think it's madness not to pay off the mortgage. That means you still effectively have the money in the house but you'll have saved money on interest hikes, your outgoings will be minimal and you'd be in a secure position to plan the next phase rather than just giving up work and living off the money. The 20k left after paying off your mortgage will give you a nice base if you do decide to take a few months off to R&R or retrain or whatever you choose to do. But being mortgage-free will give you more choices ultimately as you have your home sorted and don't need to factor that into whatever you do next.

FarmGirl78 · 23/08/2023 12:21

I got a lump sum recently and, along with some savings, paid my mortgage off. I'm still working but the weight lifted off my shoulders by having mortgage gone is incredible. My future job security isn't looking great so I know if it goes tits up for me I can get by with a minimum wage job. I'm currently off sick after emergency surgery and my recovery isn't going to plan. I'm reassured knowing that if I can't go back to work I can hopefully scrape through life on benefits for a while.

The freedom of being mortgage free is incredibly luberating. Perhaps going into work knowing you don't actually have to might help?

maddiemookins16mum · 23/08/2023 12:22

I was made redundant at 53. Decent payout. I paid half the mortgage off and took six months off. Paid my NI stamp though.
By the end of six months I was ready to go back to work.
It took 18 months to get a job! That was clearly because of my age, despite an excellent work record and masses of experience.

Silvers11 · 23/08/2023 12:28

Another one here saying pay off the Mortgage. It's a no-brainer because then no matter what happens you won't be affected by changes in interest rates, you won't be paying out for that any more, every month and in the long run will give you more financial freedom to do more of what you would like to do

knobheed99 · 23/08/2023 12:36

You should pay off the mortgage, without a doubt.
Having paid that off, not having to make payments monthly will mean you free up money to save.
You can make plans to change job, retrain etc once you have that cushion of not having to pay the mortgage.

I wouldn't just quit and spend the money as income because it will be gone sooner than you think if you do that.

SleepQuest33 · 23/08/2023 12:39

You are 40, still have a way to go before retirement.
if you are burnt out due to work you don’t enjoy, you will become even more burnt out if you fall into unemployment and poverty.
I would continue very part time and at the same time look into investing into your retraining or refreshing of previous studies. Then look to start a job you actually enjoy.

SunRainStorm · 23/08/2023 12:40

I would pay off the mortgage, then save the equivalent of my mortgage repayments for 6 months or so.

Take that saved money, and use it to have as long a career break as it allows. I would also use that time to do some study or training to pivot into a sector I would enjoy more.

You will be able to relax more with no mortgage, and you won't have a gap on your CV, and you'll not just be recuperating, you'll be setting yourself up for a better life in the long run.

Original poster

BurntOutro · 23/08/2023 12:59

Thanks so much everyone. The replies reflect my inner turmoil in that I really want a break from work but also feel it’s unwise financially.

I'm on a fixed deal with a hefty early repayment fee so ideally I need to wait until 2025 before I pay my mortgage off. My repayments are around £270 a month but I’m overpaying to reduce it as much as possible before my fixed deal ends.

I work 30 hours a week mon-fri with occasional weekends but really it’s the type of work and my manager that are the problem. I preferred my previous role but did a side ways move for better pay although it’s slightly more hours. I just feel like it’s bull shit though - we’re supposed to be making a difference to people but in reality we’re just taking credit for what communities are going themselves. I’m seeing a different side to my manager lately as well and I don’t like it.

i think my first job is to ask to reduce my hours so I can free up time to look into retraining and applying for other things.

OP posts:

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