Would you take voluntary redundancy at 60 in these circumstances?

[Anytimelikenow]

Voluntary redundancy at 60?

I have been offered voluntary redundancy. Payout will be about 32k, I think, a year’s salary.

I am unlikely to ever find another job. My industry is dead in the water and I just don’t have the energy or willpower for applications and interviews. I’ve done this job for 30 years and I’m out of touch. I also have stage 4 cancer but I am well and you wouldn’t know. I do not know my prognosis.

I am not entitled to any benefits. I guess I’d be entitled to contributions based job seekers allowance or whatever it’s called, for a while.

I like my job. I’m good at it and it’s good for my mental health. I work full time. It’s a good company to work for.

I don’t have life insurance or critical illness cover. My mortgage was paid off years ago. If I’m still employed at time of death, there’s a four-times-salary death in service payout. But nothing for long term ill health. If I’m off sick for a long time, I’ll be fired.

I have some savings and a pension I can cash in. The pension pot has 160k in it. It’s not a defined benefit one, just a cash pot. My employer puts in 6% of salary. My state retirement age is 67.

I worry a lot about money and running out of money and paying bills. I have two young 20- something DC who are semi independent and I worry about them and want to leave them as much money as I can.

What would you do?

Stay, you need the money and your industry is dead and sadly you’re at an age where finding work will be difficult even if it wasn’t.

hope you stay healthy and good luck

What’s the alternative? If you don’t take it how long will you likely have a job for before you’re made compulsorily redundant? Is the £32k tax free and does that make it more like 15 months salary?

if you have no outgoings and your mortgage is paid off I don’t see why this couldn’t be a good thing. There are always opportunities to earn a bit of extra money, even in your sixties. My parents are retired both both inviligate exams at the local college which earns them a couple of thousand £ a year. My dad also works very part time hours in retail - he basically covers the 2-5pm slot that working parents don’t want and college kids can’t always commit to!

DC in their 20’s shouldn’t be your financial burden.

Honestly,

Stay. You dont have a big enough pension to leave. I feel for you, it must be exhausting.

I would be taking it but that’s because I’m praying we get a vs package in the next two years. I presume they may go to compulsory redundancy if people don’t take voluntary? If so you might go anyway. Can’t you do volunteering or find another avenue for your mental health?

I would take the voluntary redundancy. The first £30k will be tax free. You may also be eligible for some benefits with stage 4 cancer - Macmillan can help advise, would be PIP and/or ESA. Yes and jobseekers or whatever its called now for 6 months after 3 months if voluntary and you look for work. If savings go below 16k you would be eligible for universal credit.

It does depend on how likely compulsory is as well if you turn down voluntary. If its more or less certain turning it down you could just end up with a lower payment. It would be useful to have an idea of life expectancy, the type of cancer I had stage 4 was 3 year average but can understand if you don't want to know.

I’m a bit surprised by the statement that my pension isn’t big enough. It’s much bigger than the median U.K. salary pot at retirement age, which is about between 60k to 107k. Obviously, mine would have to kick in sooner but isn’t likely to be needed for so long into retirement. 😭 Average life expectancy I know is about three years but it could be considerably less, or yet again considerably more. It depends on what treatment can be done.

Yes, if they don’t get enough volunteers for voluntary severance, they will look at compulsory. I could easily be forced in that compulsory group, I think. Payout for statutory is around 20k, I think. Not too sure.

I’m not entitled to any benefits even with stage 4 cancer, not Pip or Esa. I’ve already investigated with Macmillan and Maggie’s. Eg, for PIP you need to be deemed “terminal”. Stage 4 in itself isn’t enough. Maybe I could get Esa if unemployed. But I just will struggle with applying and interviewing for jobs that I don’t know about.

I know my DC shouldn’t be my financial burden but I can’t help but worry about them. They’re going to lose their only parent and be alone in the world. It terrifies me.

Yes just take it and let your time be your own for the remaining years.

I would take the money. When that runs out, start to draw down your private pension.

As you have paid off your mortgage your kids will presumably inherit your home, so they are going to have a financial boost. Also they got to have you as their Mum so they are very lucky in life anyway!

Definitely take the redundancy - the amount you have is fine. The redundancy first £30k will be tax free as well so it will last you longer than 12 months.

PIP and ESA you don't need to be terminal to get but it does depend on symptoms. ESA if you are doing chemo you get the higher support group rate. PIP its things like do you need help communicating, going to toilet, cooking, with meds, walking. If you can do everything unaided you wouldn't qualify but if you got more ill you then would. Both can take a long time to come through but are backdated. I'ld be surprised if you couldn't get ESA if you are in active treatment for stage 4.

Its normal to worry about your children but if they are semi independent you are doing well and they will have the house and the benefits system is there as back up if they lose jobs etc and don't have savings.