Please help Voluntary Redundancy dilemma

[rookiemere]

Hi
I'm aware that I'm fortunate to be in this scenario but I'm finding t hard to figure out what to do.

I have been offered VR from my current company. It works out at about 2 years salary plus the first £30k is tax free.

I'm 54 and whilst we can't afford for me to retire - and I don't want to anyway - we are lucky enough to have paid off the mortgage and DS is heading off to uni soon with a reasonable CTF so our expenses should go down.

My parents are elderly and I am an only DC, so I suspect demands on my time will increase, but I am not cut out to be much of a carer. If I got an internal role I've got the credibility to take whatever time I need.

I've dipped my toes in the job market for the last few months and there is very little out there for my skill set and role, certainly nothing that pays anywhere near what I am on. I'm struggling trying to get to grips with LinkedIn and all my networks are in my current company.

An internal role has been advertised that is in a good area and a friend works there who could give me a recommendation, so I would have a good chance of getting it.

I'm torn, DH wants me to take the VR, I'm nervous that I will never earn as much as I do now - but of course I wouldn't need to.

Please help me decide what to do.

Also to add DH says I should take a work break, but I don't particularly feel that I want to.

I would go for the internal role.

If you don't actually want to stop working and the job market doesn't look promising externally, I would forego the £££ dancing in front of his eyes in pushing you to take the VR.

Stopping work is a massive adjustment even if you'd planned it in advance and had structure and social support in place. I don't think it's worth gambling with the damage it could do to your mental wellbeing to abruptly pack in work without a viable re-entry route into work.

Thanks @atticstage I am applying for other roles though, and I feel I would do something if I couldn't get a role in my current line of work.

I hear what you're saying though and that's the dilemma. DS is off to uni in Sep and that already feels like a big change.

If I could at least get one interview I'd feel more reassured about my ability to get another external job.

I hadn't really thought about my mental well being so it is a really good point.

What about taking some time out and upskilling? It will give you longevity and help you land a role that pays more rather than less. I would use the VR to do that.

Alternatively if there isn't the pressure on you to earn as much, can you think of some more fun alternative roles or would that hit your pension too hard?

If made redundant without the voluntary part, you would get a smaller pay out. How high is the risk of that now or in the future? That would also factor into my thinking.

In your situation, with your life about to change when child leaves home, I'd want to have some idea of what you're going to do for the next few years.

As PP says, could you take redundancy and then spend time upskilling in an area of interest? This may give you a whole new interest and, as you say, it won't matter if you're taking a pay cut.

If you've no idea what you might do other than care for elderly parents, then I'd probably try and stay put. Although there is a risk involved in that if the company has to make further cuts in the future

It's a good point about the company future. It's hard to tell and one of the reasons why VR is attractive as there's no future guarantees.

However I have been there for a long time and have a good reputation so I think I would be ok. VR in two years would have been perfect, but there's absolutely no guarantees of that. I can return to the company in 2 years if there are any roles to apply for at that time.

I have currently started a technical IT evening course in Cybersecurity to try and make me seem a bit more current- I'm not sure it's my role of the future though. Keeping busy will be important to me I think.

So you have 13 years to go until you can claim your state pension. I would be very cautious. If you leave work and are unemployed / economically inactive, you could potentially be at everyone’s beck and call - informal, unpaid care for your parents, ‘Oh, our daughter doesn’t work, she can do X, Y,Z….’, picking up all the housework / chores at home if your DH works, in competition with younger colleagues, perhaps with better academic qualifications, if you want a stimulating role, or left doing something low paid / mind numbingly boring.

Why do you say that "VR in two years would have been perfect"?
I.e. what would make that timing perfect? Would another two years of working really make a massive difference to your finances/pension?

@LadyLapsang we're lucky enough to have work pensions that mean we'll be able to retire age 60 or a little bit earlier.

@Annalouisa yes its a good question, if it was two years in the future then I'd he that bit closer to being able to take work pensions and not needing as much of a buffer.

Argh it's a tricky one, both decisions are good ones.

Grab it with both hands

it’s well and truly liberating
once a company starts offering VR it’s generally a sign change are afoot

forget saving or spending any of that 30k that’s part of your wage for the next 6 years

any job you get now is disposable if you leave you aren’t sacrificing length of service pension etc do something you want to do

you can take a lower paid job because you can pay yourself £400 a month for the next 6 years out of the 30k

I'd 100% take it

2 years with 30k tax free takes you to 56/56.5

Even if you take a break or do something else lower paid like freelance, consult, start a business that £££ buffers you and your commitments are low as mortgage free

Could you make plans for the next two years that excite you and help you transition to the next stage in your life - e.g. go on a 6 month holiday and then return to a job that can be done part-time, so it helps you bridge the gap to your work pension? E.g. a more junior version of your role, freelance work in the same sector, or some form of teaching/tutoring if your area of expertise lends itself to that? It just seems like such a good opportunity to let slip through your hands.

You'd kick yourself if you get made redundant next year on less generous terms. Also bear in mind that if people around you get made redundant, you inevitably end up picking up their work...

I’m your age and would struggle with your dilemma. I’ve recently been approached about 3 jobs (all senior) and although the multiple interviews went well, I’ve not had an offer. VR is attractive but if you need to work again, the sad fact is you’ll be a less attractive option in a years time with a break in your cv. If you can afford not to work again it’s a different situation.

Argh conflicting views - it's like the voices in my head speaking out loud!

@Annalouisa that is a good point about redundancies not being a good sign, and one of the reasons I was keen to go is I know the company needed restructuring but I'm not at all sure that the changes they are implementing will help with anything at all.

I don't particularly want to take a break.

DH has a good contract and if he left I doubt he would find anything as good. The thought of knocking round the house whilst he WFH is not appealing, but nor is throwing myself into the new set up at work which I fundamentally don't agree with.

Financially we don't need me to earn as much as I currently do, and I'd be more than happy to take a sideways step into a less well paid public sector version of what I currently do, if only I could get a whiff of an interview ( although to be fair I have only applied for a couple like that and not heard back yet).

Away with friends and one is very certain I shouldn't give up work, says there are no jobs out there, but then I only need one.

The default is I stick to the VR as that's where I am signed up for atm.I'd just really like some celestial sign I am thinking either a rejection from something or an interview could push me either way.

I am being made redundant through the school where I work closing. Whilst my payout will be good it sounds like it is nowhere near yours. I will then not be able to take a permanent job for a month so will be looking for a new job for October. Yes this is a strange time to get a teaching job and it may only be a temporary one but that break is really what I need this opportunity may not ever happen again.

I worked out that a new job would take years to equal the payout and I could get a good job straight away or in January. It's an opportunity to really think about what you want to do.

Enjoy your break @wonderingwhatlifemeans .

VR doesn't equate to "stopping working" - it isn't one or the other.

I would definitely take the VR, you'll never get a lump sum (inc £30K tax free) again in your lifetime.

don't focus on trying to get back to the salary you're on currently. That won't happen immediately, but look for opportunities where you can re-use existing skills and learn new ones. I've been made redundant 3 times in my career and each time it took me on to much better things.

it'll feel strange leaving the safe routine of a steady job, but life always includes an element of risk. Enjoy the freedom and the ability to make new choices while benefitting from the financial padding you'll get from the VR. Your employer should pay the solicitors fees to have the redundancy offer reviewed. Don't forget that if you have any accrued holidays on your final day, those should be paid for outside the VR payment.

use Linked In to track down agencies who recruit in your industry sector. Have you thought of doing some contract work in the meantime as this gives you a risk free way of going into companies, seeing what they're like as an employer and possibly finding a permanent job from there? I got my big career break doing that.

don't listen to your friend saying "there are no jobs out there", that's a ridiculous thing to say.

I would take the redundancy!

A company that has to make jobs redundant might not be doing well anyway and there is no guarantee that you won't be in the same situation a year from now even if you take another internal role and there might be less money available then for redundancy packages.

Then take some time to upskill as suggested and find something part-time maybe or you can volunteer for a bit while you search for a new job to gain some new experience and skills.

"don't listen to your friend saying "there are no jobs out there", that's a ridiculous thing to say."
I was reflecting on this overnight. She was referring to her DH who is in an existing job so will only be looking at the higher paid options whereas I'm open to public sector roles as well. Also open to contract work but there is precious little of that about atm as well.

I've had a good think about it and I think I should go ahead with the redundancy payment. There are pros and cons, but that was my gut instinct and part of the problem is my end date has been extended so I can wrap up what I am doing so I am trying to job hunt and work at the same time.

I wanted to give an update on this.

I managed to get a couple of interviews in the sector I'm in currently and didn't get offers, because subconsciously I wanted a change.

I had an offer of an internal secondment until the end of the year, which would have been fine, but then I saw an advert for a mat leave role at a charity, kind of doing what I do now but for completely different purposes and I got the job ! I am beyond excited about the new role and although it's quite a pay drop, the redundancy offers enough of a cushion that it doesn't matter.

It's been such a roller coaster, and I'm so glad I didn't opt to stay as now here I am age 54 about to embark on a career in a new sector.