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Retirement

Darlo1973 said:
Tax free is capped at £30k, I believe.
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The tax free element of any payment for loss of office (beyond payments in lieu of notice) is £30k. That is not the same thing as the cap on statutory redundancy.

archiesdad said:
Stat redundancy is capped 21k from memory regardless of service or salary.
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You are right, statutory redundancy is capped at £21,570.

However if you are forcing someone to be redundant, you have to make sure that the job is truly redundant and you have followed all consultation processes, rules and policies to the letter, or you are on the hook for unfair discrimination. So voluntary redundancy processes often pay more in compensation for loss of office to get the leaver to sign a settlement agreement, which is then all but watertight against getting sued after the fact. And if they are getting shot of you while you have a valid case for unfair dismissal, constructive dismissal, or any form of discrimination, then the sky is the limit.
 

NYMackem said:
The tax free element of any payment for loss of office (beyond payments in lieu of notice) is £30k. That is not the same thing as the cap on statutory redundancy.


You are right, statutory redundancy is capped at £21,570.

However if you are forcing someone to be redundant, you have to make sure that the job is truly redundant and you have followed all consultation processes, rules and policies to the letter, or you are on the hook for unfair discrimination. So voluntary redundancy processes often pay more in compensation for loss of office to get the leaver to sign a settlement agreement, which is then all but watertight against getting sued after the fact. And if they are getting shot of you while you have a valid case for unfair dismissal, constructive dismissal, or any form of discrimination, then the sky is the limit.
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My understanding was the job has been be no longer there ,is that still the case ?
The examples here of waves of redundancies,yearly, would suggest a shrinking business ?
 
JAZZMANB said:
My understanding was the job has been be no longer there ,is that still the case ?
The examples here of waves of redundancies,yearly, would suggest a shrinking business ?
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No, if you are paying enough compo to the employee to get a settlement signed, you don't have to actually get rid of the role. You can hire someone else into it the day after.

But if you are forcing someone to take redundancy and only paying the statutory amount, then the role must genuinely be redundant, or the company might be open to an unfair dismissal claim.
 
NYMackem said:
No, if you are paying enough compo to the employee to get a settlement signed, you don't have to actually get rid of the role. You can hire someone else into it the day after.

But if you are forcing someone to take redundancy and only paying the statutory amount, then the role must genuinely be redundant, or the company might be open to an unfair dismissal claim.
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Which is why there will usually be additional compensation on top of the voluntary amount to avoid a potentially expensive legal case.

A well timed redundancy can be fantastic.
 
Our compnay based in London was taken over by a much bigger company whose UK office was based in Souhampton. They announced redundancies at Southampton and a collegue of mine in his 60s who wanted to go and do day trading volunteered and even though he wasn't in the same department the company accepted his offer. His wages were probably double those in Southampton so they probably saved two jobs.
 
SIPP question. All our work pensions are DB. We get some at 60 and some at 67 and plan on using a SIPP to supplement 60-67.
As wife will get 12k per year dB pension at 60 and I'll only get 5k, we've opened the sipp in my name.
If I were to die before we start draw down would she just get the sipp in her name with same rules (25% tax free) and take rest out as wish or would she just get a lump some of money. It's vanguard if that makes a difference.
 
TAD said:
SIPP question. All our work pensions are DB. We get some at 60 and some at 67 and plan on using a SIPP to supplement 60-67.
As wife will get 12k per year dB pension at 60 and I'll only get 5k, we've opened the sipp in my name.
If I were to die before we start draw down would she just get the sipp in her name with same rules (25% tax free) and take rest out as wish or would she just get a lump some of money. It's vanguard if that makes a difference.
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IIRC die before 75 and she could get it all tax free whether a lump sum or income
 
TAD said:
SIPP question. All our work pensions are DB. We get some at 60 and some at 67 and plan on using a SIPP to supplement 60-67.
As wife will get 12k per year dB pension at 60 and I'll only get 5k, we've opened the sipp in my name.
If I were to die before we start draw down would she just get the sipp in her name with same rules (25% tax free) and take rest out as wish or would she just get a lump some of money. It's vanguard if that makes a difference.
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You should be able to access all of your DB pensions at 57, however theyll be reduced. But that reduction is based on you taking it for a longer period (assuming you live to average age). As long as you can afford to live on the lower payments, theres a lot of sense in taking it early (also tax beneficial in doing it, providing you dont keep working)
 
42 said:
You should be able to access all of your DB pensions at 57, however theyll be reduced. But that reduction is based on you taking it for a longer period (assuming you live to average age). As long as you can afford to live on the lower payments, theres a lot of sense in taking it early (also tax beneficial in doing it, providing you dont keep working)
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Thank you. I do know that's an option and will probably look at the figures nearer the time and see what works best for us.
 
I've found OPEN AI/Chat GPT to be really helpful with my own financial planning.

Started with basic questions like My Occupational Pension is £xxxxx per year, I'll get a full state pension at 67, I have £xxxxx in an ISA and £xxxxx in cash savings. What is best/tax efficient drawdown strategy assuming I'll live to 90.

It explains things really well and provides sample questions to ask your IFA to make sure you are getting the best advice.

It's also helped me outline an estate plan to minimise the Inheritance Tax my son will need to pay on my death.
 
Slatz63 said:
I've found OPEN AI/Chat GPT to be really helpful with my own financial planning.

Started with basic questions like My Occupational Pension is £xxxxx per year, I'll get a full state pension at 67, I have £xxxxx in an ISA and £xxxxx in cash savings. What is best/tax efficient drawdown strategy assuming I'll live to 90.

It explains things really well and provides sample questions to ask your IFA to make sure you are getting the best advice.

It's also helped me outline an estate plan to minimise the Inheritance Tax my son will need to pay on my death.
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Great advice.
 
Slatz63 said:
I've found OPEN AI/Chat GPT to be really helpful with my own financial planning.

Started with basic questions like My Occupational Pension is £xxxxx per year, I'll get a full state pension at 67, I have £xxxxx in an ISA and £xxxxx in cash savings. What is best/tax efficient drawdown strategy assuming I'll live to 90.

It explains things really well and provides sample questions to ask your IFA to make sure you are getting the best advice.

It's also helped me outline an estate plan to minimise the Inheritance Tax my son will need to pay on my death.
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Yes, I've found Gemini to be good for research. Of course you need to double check everything but it can be useful as a first pass.
 
archiesdad said:
Agreed a compromise agreement today with my boss. Just need to get it approved with owner and I'm done end of Q1. Perfect timing, happy days. Didn't have a fight at all in the end.
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Nice one Mate.
Just have to be calm and sensible with these things. You always have to think sensibly what the other party are doing and often they hang themselves.
Just keep everything to yourself now. 👍
 
Slatz63 said:
I've found OPEN AI/Chat GPT to be really helpful with my own financial planning.

Started with basic questions like My Occupational Pension is £xxxxx per year, I'll get a full state pension at 67, I have £xxxxx in an ISA and £xxxxx in cash savings. What is best/tax efficient drawdown strategy assuming I'll live to 90.

It explains things really well and provides sample questions to ask your IFA to make sure you are getting the best advice.

It's also helped me outline an estate plan to minimise the Inheritance Tax my son will need to pay on my death.
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Been meaning give this a bash, will try it 👍
 
Got my mortgage statement through yesterday. I'm now hitting those levels where I can't afford to just pay it off but it doesn't look like an insanely large amount of money either. The end of that is coming....
 
DaveH said:
Got my mortgage statement through yesterday. I'm now hitting those levels where I can't afford to just pay it off but it doesn't look like an insanely large amount of money either. The end of that is coming....
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Same here. My balance remaining is only 6% of the value of the house. I could afford to pay it off from savings but that would leave my cash safety net a little too low and my monthly repayments are manageable (I was paying more in rent 20 years ago). Current mortgage term ends in 2028 when I will decide whether to pay it off then.
 
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