DH struggling with decision to take redundancy

[Jayjay45]

Looking for some ‘outside’ views on this. DH (early 30’s) has worked for the same company for his whole career, worked up to a reasonable level but stagnated in recent years and isn’t enjoying work. Not because it’s stressful, but because in his words it’s mind numbing and there’s no progression. He earns mid £50k, has very good pension offering and good holiday/flexibility.

He has been offered redundancy but is flapping about it and unsure what to do. There are other career options he’s always wanted to pursue , and the initial wage drop would be offset by his redundancy pay out - he’d receive £30,000 after tax.

Our Mortgage and housing bills equate to about £1400 a month, I contribute £500 of this (work PT as we have a young child). We have existing savings (about £60,000 between us) and along with the redundancy money we would be fine for a while. He would have a 3 month notice period if he accepts it too and he could easily save £1200 a month.

He is worried about months without pension contributions, but he has a healthy pot for his age of around £150,000 invested in a defined contribution scheme which will still grow in the meantime.

I think he should take it - he’s basically being paid to leave a job he no longer enjoys and is young enough to re-train.

All views welcome!

It's got to be his choice.

What are the options if he stays?

Teh first ,£30k if redundancy is tax free by the way, so he'd only pay tax on anything over that.

How long will retraining take? Will he have to pay to retrain or would he be paid as he trains?
And what are the job prospect once he has retrained?

And does he know he will like the new job? Perceptions of what a job will be like and the reality can be miles apart

Of course, not putting any pressure on him.

He stays - it’s no change, in his words he will continue in a role he doesn’t enjoy but keeps the safety net of the salary and benefits.

How long will retraining take? How likely is fast employment? It’s a big deal as the majority earner to put finances at risk so I can see why he’s worried, it sounds like a good opportunity but ultimately it’s up to him. Can you go full time in the short term if needed?

They don't usually offer redundancy to younger team members, and it's less than 6 months pay. Could he get a job he likes paying similar in that time? If so take it. Of not I probably wouldn't (unless you think he will be made redundant on a compulsory basis if he doesn't take it as then the offer may not be as good.

I think he should take it if he isn’t enjoying work. It doesn’t sound like he’ll stay there longer term and may well move in a year or two anyway, but minus the redundancy pay.

I was made redundant 10 years ago and it’s the best thing that ever happened to me. Got a (smaller) redundancy payout and it forced me to leave a job I didn’t even realise I wasn’t enjoying. Now I’m in a job I really enjoy and that fits well around family life, it was a game changer for me!

Honestly, given the jobs market at the moment...I wouldn't.

I've advertised three external roles this year (Civil Service), one at G6, one at SEO (so about £53k a year) and one at EO. Even the EO job had over 50 applicants, many of whom were far too over-qualified but who were clearly applying because they were desperate. 4+ years ago, we'd have been lucky to get 5 applications for those jobs.

I would also echo PPs - jobs are not always what they sound like and even having friends in the industry doesn't prepare you for what it's really like. Grass is always greener...

I’d seriously consider it. You say £30k after tax, do you mean they’re offering £30k, because as another poster pointed out the first £30k is tax free. If it’s more than £30k and some of it is taxable he could reduce the tax element by making a on-off salary sacrifice pension contribution if that’s available. I would have a look at how many months the redundancy pay could last - is it a feasible enough time to retrain/get another job and is there any costs you can trim back temporarily. What is the job market for his intended career path like? Can you take on more hours/get something FT if it’s going to take a while for him to get something.

i retrained in my early 30s and it really paid off, but i took a drop in salary to start with, but DH was able to pick up more of the costs. I now earn double what he earns so he definitely thinks that investment paid off!

If he's not enjoying his role and has a firm idea of what he'd like to do instead, I'd accept. He's unlikely to have another opportunity to have £30k to support this.

Are they likely to make him work his notice, or would he have this time for retraining/job hunting?

Oh just take it. You’re miles ahead of most people our age.

Thanks all, I can’t multi quote so summarising below:

-he completed the qualifications needed to enter the other industry a couple of years ago so has already incurred the cost/time for the studying.

-to whoever said it; you are right, there’s no guarantees he will like a new role, but that’s always going to the the case - it’s a calculated gamble. He’s confident there’s key elements he’ll enjoy.

-It’s a pay out of just over £30,000, of which £30,000 of it would be tax free.

-His after tax take home currently is c.£3000, so it works out around 10 months’ wages.

He has been offered redundancy

he's deluded if he believes his job is safe long-term if he refuses.

He doesn’t

Hi op he could see it as a sign for fresh start having some money in the bank as a backup is really good if he stays next time it might be a compulsory redundancy I would take it as you are ok financially for now. No job is guaranteed whether you love it or hate it. Sometimes things happen for a reason.