Redundancy- Am I mad?

CramCycle

https://www.boards.ie/discussion/comment/121547480#Comment_121547480

Is it really? 25 years left on the mortgage, got it a few years ago, probably under 1.5k a month and certainly acceptable within current lending rules. Certainly less than rent in Dublin. It's not a little bit it's certainly affordable considering other options in Ireland

CramCycle

https://www.boards.ie/discussion/comment/121548340#Comment_121548340

I disagree, 40 is not old and people now more than ever continue to change roles in their 40s. 40s means you have a.lot of good years left in you, probably identify with your interviewers.and have experience that many others won't. There are no guarantees but don't let being in your 40s lead you to rue the next 25 years of your working life.

listermint

https://www.boards.ie/discussion/comment/121551404#Comment_121551404

Suggest read again ... ..

Pawwed Rig

https://www.boards.ie/discussion/comment/121551413#Comment_121551413

Just speaking from personal experience. I changed career in my 30s and once I turned 40 jobs were harder to come by. Recruiters actually mentioned it specifically as an issue. As above no company would admit to this though.

US MNCs are particularly bad for this.

Idbatterim

Is redundancy taxed ? Also I believe welfare will be e450 for the first 3 months shortly. Ill bank the money and tahe a break potentially... paying off mortgage or large chunk of it, depending on interest rate.

Idbatterim

Assuming you have some savings now that could pay off some of the debts you mention? If you don't, then you can also ad loan interest sajinv onto the 200k. Also a few online banks now offering 4% interest...

CramCycle

https://www.boards.ie/discussion/comment/121551462#Comment_121551462

Fair enough but which bit? A quick Google says you'd get a 25 year mortgage with a 90k salary of over 300k. I'm not far off the same position and the repayments are under 1.1k a month. Have loans, I just don't think it's as bad as you seem to think it is.

This said, I disagree with the belief it's difficult to change careers at 40. If I had 200k as a redundancy, I'd take it and start retraining while looking for work without stress. Your won't get back to that wage immediately but people put value in experience (unless its PS or CS where they care more about a degree).

CramCycle

https://www.boards.ie/discussion/comment/121551486#Comment_121551486

Very true about US MNCs if not a high level position, but the few I knew who didn't move in at an equivalent or higher level in another industry, the rest went in lower and escalated quicker than a young uns as they had experience and sense alot at a younger age don't have. Just an opinion course

baldbear

Was made redundant 2 years ago. Got a job straight away on 20k more. If I had the choice i would have said in my old job as it meant more time with my family and to myself .

All jobs steal time from the important things in life. Well that's the way I think.

Furze99

OP is still going to have to earn something somewhere somehow. €200K sounds a lot but you'd burn a good hole in that fairly quick these days. Money just ain't worth what it used to be :(

Iwantone

You’d never save cash like that. Take the money and run. Lots of work out there for 40 somethings. You could always retrain.

Pay everything off the mortgage. Debt is always first to go.

Kaisr Sose

https://www.boards.ie/discussion/comment/121551404#Comment_121551404

He was quoting text from the post which first brought up the level of debt as being high..

@listermint actually saying it's not a lot of debt.

Easy to be confused due to the format of the post.

antimatterx

https://www.boards.ie/discussion/comment/121551831#Comment_121551831

He's getting 4.5 years of gross salary. If I had that offer I'd be gone out the door.

Donald Trump

https://www.boards.ie/discussion/comment/121552008#Comment_121552008

Did he not say he's on 90k a year?

chrisd2019

https://www.boards.ie/discussion/2058327954/redundancy-am-i-mad

Definitely not mad, based on what you wrote, sounds like you suspect the next offer from the organisation might be less and not as voluntary.

Many companies go stale and individuals prosper by moving to another company.

Do up your CV and look at what might interest you.

chrisd2019

https://www.boards.ie/discussion/comment/121548340#Comment_121548340

Possibly more difficult, but currently there is such a shortage of competent staff, that hiring Managers are attracted to mature people with a career history.

My current role bring me into contact with many industries through out Ireland, for most if not all hiring staff and retaining them is their main challenge.

antimatterx

https://www.boards.ie/discussion/comment/121552069#Comment_121552069

Yeah but he's getting 200K tax free. To net that from a salary he needs 400K roughly.

Donald Trump

https://www.boards.ie/discussion/comment/121552178#Comment_121552178

So you mean he is getting 4.5 years of net salary?

Did he say it was tax free? You can get some redundancy money tax free I think, but there are caps.

Buddy Bubs

I'd be all over that, go for it. If you're on 90k you've some skills and education behind you I imagine you'll be employable.

CramCycle

Back of the envelope at 90k/year, 20 years service, so about €24600 statutory tax free, plus €10160 basic and €15300 for 20 years service. Then you have the ScSB, so at 20 years it will be 1.33 times 90k, so another 120k.

So (and I could be very wrong) it's €145k tax free and then €55k taxable, so if paid near the start of the year and he is taking a break, maybe loses €15k, obviously worse the later in the year it is.

I'm 3 beers in so could be way off.

listermint

https://www.boards.ie/discussion/comment/121551518#Comment_121551518

You definitely didn't read my posts...

kaymin

https://www.boards.ie/discussion/comment/121552411#Comment_121552411

Why don't you clear it up then? You stated '250k on house at 40 is alot of debt' and CramCycle argued against that.

Now if you said '250k on house at 40 is alot of debt?' that might explain things, but you didn't

Personally I wouldn't like to owe a quarter of a million on a 90k salary at 40.

Buddy Bubs

https://www.boards.ie/discussion/comment/121552502#Comment_121552502

@listermint was quoting a previous post and disagreeing with it. He doesn't think it's a huge amount of debt. And either do I to be honest

kaymin

https://www.boards.ie/discussion/comment/121552405#Comment_121552405

You take the highest of the three calculations as the tax exempt amount. You don't add them together.

CramCycle

https://www.boards.ie/discussion/comment/121552621#Comment_121552621

You are 100% and I'm way passed 3 beers

SuperBowserWorld

I'm always amazed at these huge optional redundancy figures. First world problems. I am only a little bit jealous 😁

Victor

Get advice on how to handle the money when you get it. Some methods may be more efficient than others.

Adrift

In respect to the “I wouldn’t like to owe 250k in my 40s remark. I’d say a sizeable chunk of the population are in that bracket. Going forward that’ll only increase. Most properties are more expensive than the boom years now and as I pointed out earlier the average age of a first time buyer is 35 so unless you’ve found a hut somewhere 250k in your 40s is a reality.

NewClareman

This is a very big decision and it is important that you think it through, thoroughly. It could work out very well, or not so good. Either way it will be life changing. It is a big sum of money, even after tax, so I understand why you are tempted. However, when you consider your day to day commitments, you might be surprised how quickly you could burn through it. Some areas you might want to consider:

1. If your new job paid 20% less, with no benefits such as bonus or health insurance, would you be able to manage?
2. What supports are available while job hunting and/or retraining. Depending on your current qualifications, and what you want to train for, these could be substantial.
3. What alternative jobs are available, at what salary, without further training. Maybe talk to a recruitment agency to get a feel. It is much more difficult to get a job when unemployed, so one way of lowering the risk would be to look for a new job before taking a package.
4. With retraining, what jobs should be available and at what salary. Again, talking to a recruitment agency would be a good start. I would specifically mention your age, as it is important, more especially when changing role/skillset.
5. Try and think of the worst case scenario, maybe unemployed for a long period, how would you manage?

I'm sure that you'll be able to think about many questions of your own. The main thing is to realise just how big a decision you have to make. Many companies provide professional help with decision making. If not I recommend you see an independent financial advisor, as a minimum.

Best of Luck.

893bet

What’s your current job?