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.

I would definitely take the redundancy option. You don't sound as if you enjoy your job and am sure you could pick up some hours in a supermarket or similar. Remember you can take 25% of your pension pot as a tax free lump sum so this together with redundancy cash should give you a fair chunk to live off.

I’d keep the job

Sorry only skim read your opening post. You clearly do like your job but if the industry is dying are you likely to be able to work there until you are 67 ?

I would take the money and spend it unwisely making happy memories. You need to be careful about the amount you keep for benefits purposes and re. your pension check inheritance tax facts arriving next April.
Good luck with your health, hope you continue to be well.

Take redundancy. You’re 60, stage 4 cancer and your mortgage is paid off. Please enjoy yourself

Take it and have a lovely time. I would in your situation.

I don't know what to tell you in terms of whether to accept it or not but I just wanted to say I'm sorry you're in this position. May you have many, many years of health ahead of you.

I’m so sorry for what you’re going through with your health OP 💐 One of the things that struck me about your post is that you mentioned that you enjoy work and it’s good for your mental health. I think it’s very important that you do what makes YOU happy - for many people in your circumstances that might mean taking the redundancy money and essentially retiring however that may not be the right option for you. Income aside there is nothing wrong with continuing to work if you find it fulfilling 😊

With your mortgage paid off what are your current outgoings? What are you spending on commute and convenience goods because you’re time poor? Are you saving? Because you like your job it’s a little trickier, but worst case scenario (can’t imagine how you must feel) do you want to work until you die? I’m so sorry if that sounds awful…it comes from a place of wanting you to have some relaxation or fun or different experiences now.

Also make sure you have fully investigated all the ways in which you can access your pension funds - modern pensions such as yours are very flexible. It’s worth speaking to Pensionwise (free Government advice service) if you haven’t already.

Also if you decide to go for the redundancy option have you considered using the skills you have acquired through work in a voluntary capacity?

I would take it in your situation. I’m younger and was offered voluntary redundancy with a decent package. If I’d turned it down I know it would have been compulsory very soon after. Given your personal situation, and the fact you don’t believe you’ll work again, is there any point in pushing for an uplift?

I would take it. Enjoy your remaining years and your children will inherit your home.

I would take the redundancy. You could always get a part time job to give you a bit of money and get out of the house if you wanted to.

@Anytimelikenow

Hi, I'm in a similar situation to you and would probably take the redundancy, subject to a bit more clarification.
I was a civil servant and to be honest have no idea what a 'pension pot' actually gives you a month to live on. That would be my first question.
£32k will be mostly tax free. Depending on your outgoings, and I see you are mortgage free, how long could you make it last?
Forget people talking about making memories- that amoubt of money is not going to get you luxury holidays. Its survival money - so how long could you make it stretch. I think I could go for 18 months on that - and then claim pension.
Im also mortgage free, I'm also not eligible for any benefits. I have a pension which gives me £950 a month and Im struggling. I can't return to my old job but will have to find some way of generating income from Sept.

If you did qualify for JSA that will only give you £95 a week.
I have a 22 year old son. Of course I'd like to be able to leave him money but its not going to happen. I will have no inhitance from my family, at least he is likely to have my house.
I'm sure your children would rather see you comfortable than see you scrimp so you can leave them a few thousand. My son also knows that I can't subsidise him over the summer - he's going to have to help me out.

Find out what the actual timescale for leaving would be. When I took a redundancy a few years ago my exit date was nearly 6 months after it was agreed I was going. If you have a few months grace you can start to reduce your outgoings now and adjust to a different standard of living.
There are a lot of individual considerations at play, you will need to weigh everything up.

Im sorry you are in this situation, Im 61 in a couple of weeks and have always had good health. Never would I have thought that my life would blow up like this.
Cancer sucks, wish you all the best

💐

@Anytimelikenowtaking everything into account and on balance I think staying is your better option.
You enjoy it, feel it's good for you (gives you purpose?) and worry about finances. What would you actually do if you didn't work?
Even if you were made redundant in a year, you would still be a year's salary better off to offset the lower redundancy payment.
You wouldn't be worried about money for that year and you can make the most of your weekends and holidays.
And don't worry about leaving money for your children. A mortgage free property between them is a great inheritance.
Good luck and I hope you have many more good years to come.

I would go for the VR in your circumstances. You will have enough money to live off for a good 18 months I’d guess, then look at drawdown of your pension. Life’s too short xx