Redundancy contingency plan.
Discussion
The Spectre of redundancies at work again, I am not at risk this time but it is making me squirm a little as there is rumours of a "restructure" later in the year.
In that situation, what would you give up and how would you cope ?
Not allowing for any redundancy payment, using savings or getting another job straight away.
I reckon I need about £1600 - £1800 each month to cover basics, £405 of which is Uni fees.
Ditch Sky, Dog insurance (sorry dog), lottery, ditch packaged bank account, flog my car and drop to two, drop Netflix, Spotify, Bupa, magazine subscription would go, sons driving lessons, stop boozing, no takeaways, Cut spedning on shopping by £200 a month, reduce petrol spend by £100.
No mortgage so very lucky there.
Anyone been through it, any tips ?
In that situation, what would you give up and how would you cope ?
Not allowing for any redundancy payment, using savings or getting another job straight away.
I reckon I need about £1600 - £1800 each month to cover basics, £405 of which is Uni fees.
Ditch Sky, Dog insurance (sorry dog), lottery, ditch packaged bank account, flog my car and drop to two, drop Netflix, Spotify, Bupa, magazine subscription would go, sons driving lessons, stop boozing, no takeaways, Cut spedning on shopping by £200 a month, reduce petrol spend by £100.
No mortgage so very lucky there.
Anyone been through it, any tips ?
All those things are nice to have, but sometimes its those that make life otherwise "OK". If you go completely cold turkey you (or your family) may come to resent it all rather quicker. So don't make the bump too hard. Maybe categorise them first and try a few at a time - if you can afford the lead-in time.
That said, I dropped stuff like netflix etc, and never went back. Shows how easy it is to waste money when 'stuff' is only a few pounds per month.
That said, I dropped stuff like netflix etc, and never went back. Shows how easy it is to waste money when 'stuff' is only a few pounds per month.
kiethton said:
Redundancy protection insurance now or as soon an I had an inkling that something may happen in the future (whilst meeting the conditions) to cover the amount needed giving me 12/24 months to find a new, better job.
Cheers, will look at that, good tip, had never heard of it.Ozzie's guide to redundancy,
Remember, competent people get jobs.
- Get another job a.s.a.p. Even if the pay is less it will keep the routine bills paid, enabling you to
- Look for a job from a job rather than having to explain why you're not working, and
- Pocket the redundancy money as a windfall. It's not every day a lump of cash turns up uninvited at your front door!
Remember, competent people get jobs.
chip* said:
Plan your meals, learn new dishes, and change your shopping habits can make significant savings and health benefits too. Worth catching the programme "Eat Well for Less" which shows how much £ are wasted due to poor food shopping choice & meal preps.
Yeah, am pretty good like that, its booze and takeaways, plus buying steak and stuff at £25 for us, could shop a lot cheaper, even though most of it is done at Aldi, I budget £700, could half that with the pointers you give, just dont need to at the moment. its not happening just yet, but have gone three rounds, just not sure how long I will end up staying, the new CIO is apparently into outsourcing, i am fairly well entrenched and have a lot of knowledge but no man is an island !
Ozzie Osmond said:
Ozzie's guide to redundancy,
Remember, competent people get jobs.
I get offered jobs fairly regularly, I dont think it would be a problem, just might not be ont he same money, need more commuting etc but totally agree the longer you are off, the more difficult it is to explain, a recently redundant person is a good bet as no notice usually and you can explain why you dont have a job, i.e. its not you were s- Get another job a.s.a.p. Even if the pay is less it will keep the routine bills paid, enabling you to
- Look for a job from a job rather than having to explain why you're not working, and
- Pocket the redundancy money as a windfall. It's not every day a lump of cash turns up uninvited at your front door!
Remember, competent people get jobs.
t, it is that the business is on its back foot, been through three rounds so not first out of the door.As has been said, a redundancy protection, otherwise known as "lifestyle protection" policy will give you some peace of mind. They generally run for 12 months, and have a ceiling of the amount they pay both in terms of a percentage of your current salary, and as an absolute max if you happen to be a high earner.
I pay around £125 a month for, I think, £2,500 worth of benefit should I lose my job.
Gotcha's to look out for:
Policies can be found through the comparison sites - lots include illness cover, etc. as well but you can strip that stuff out so it just covers for the loss of a job.
I pay around £125 a month for, I think, £2,500 worth of benefit should I lose my job.
Gotcha's to look out for:
- Period before they start paying out - most will only start once you've lost your job (obviously), but if you were to take payment in lieu of notice some still won't pay out until your notice period is up.
- First payment - generally you can choose here, but the default as offered appears to be a at the end of the month you qualify. So, let's say you have 1 month's notice and lose your job on the 1st. You may be eligible for payment on the 1st of the next month, but you may find that it doesn't actually pay out until the 30th of that month, depending on how you have it set up.
- Contracting - if you're a contractor you can still get these, but it's harder and you need to check the small print. Think the contracts generally have to be at least 6 months in duration.
- Knowing you're at risk generally means a policy won't pay out. So, if you've been told your job is at risk (rather than just hearing a rumour!) then it's too late to get a policy.
- Qualifying period - there will be a period of time after taking out the insurance where you can't claim. Usually 3 months, but double check this... It is, obviously, to prevent people who know they're likely to be out of a job but who haven't been told yet from being able to get a policy before the axe falls. I mention this last one, as you might want to get a move on!
Policies can be found through the comparison sites - lots include illness cover, etc. as well but you can strip that stuff out so it just covers for the loss of a job.
DanL said:
As has been said, a redundancy protection, otherwise known as "lifestyle protection" policy will give you some peace of mind. They generally run for 12 months, and have a ceiling of the amount they pay both in terms of a percentage of your current salary, and as an absolute max if you happen to be a high earner.
I pay around £125 a month for, I think, £2,500 worth of benefit should I lose my job.
Gotcha's to look out for:
Policies can be found through the comparison sites - lots include illness cover, etc. as well but you can strip that stuff out so it just covers for the loss of a job.
I think mine is £45 p/mth for £3k of cover but it won't start paying out until 3mths after redundancy/loss of income I pay around £125 a month for, I think, £2,500 worth of benefit should I lose my job.
Gotcha's to look out for:
- Period before they start paying out - most will only start once you've lost your job (obviously), but if you were to take payment in lieu of notice some still won't pay out until your notice period is up.
- First payment - generally you can choose here, but the default as offered appears to be a at the end of the month you qualify. So, let's say you have 1 month's notice and lose your job on the 1st. You may be eligible for payment on the 1st of the next month, but you may find that it doesn't actually pay out until the 30th of that month, depending on how you have it set up.
- Contracting - if you're a contractor you can still get these, but it's harder and you need to check the small print. Think the contracts generally have to be at least 6 months in duration.
- Knowing you're at risk generally means a policy won't pay out. So, if you've been told your job is at risk (rather than just hearing a rumour!) then it's too late to get a policy.
- Qualifying period - there will be a period of time after taking out the insurance where you can't claim. Usually 3 months, but double check this... It is, obviously, to prevent people who know they're likely to be out of a job but who haven't been told yet from being able to get a policy before the axe falls. I mention this last one, as you might want to get a move on!
Policies can be found through the comparison sites - lots include illness cover, etc. as well but you can strip that stuff out so it just covers for the loss of a job.
DanL said:
* Knowing you're at risk generally means a policy won't pay out. So, if you've been told your job is at risk (rather than just hearing a rumour!) then it's too late to get a policy.
.
catch 22, don't need it if you are in a secure job. If you think its not secure can't take out a policy. I have been told im not at risk, but I believe I am. will have to look into it..
pmanson said:
I think mine is £45 p/mth for £3k of cover but it won't start paying out until 3mths after redundancy/loss of income
I thought you'd got a bargain for a second! Forgot that other variable, as I wanted paying as soon as someone else stopped paying me. If you want to defer payment for a bit then this also reduces the costs, much as an excess does for other insurance products - it's assumed you're likely to find another job in 3 months.DanL said:
As has been said, a redundancy protection, otherwise known as "lifestyle protection" policy will give you some peace of mind. They generally run for 12 months, and have a ceiling of the amount they pay both in terms of a percentage of your current salary, and as an absolute max if you happen to be a high earner.
I pay around £125 a month for, I think, £2,500 worth of benefit should I lose my job.
Gotcha's to look out for:
Policies can be found through the comparison sites - lots include illness cover, etc. as well but you can strip that stuff out so it just covers for the loss of a job.
Out of interest how long have you been paying £125/PCM for out of work insurance to pay out a maximum of £2.5k?I pay around £125 a month for, I think, £2,500 worth of benefit should I lose my job.
Gotcha's to look out for:
- Period before they start paying out - most will only start once you've lost your job (obviously), but if you were to take payment in lieu of notice some still won't pay out until your notice period is up.
- First payment - generally you can choose here, but the default as offered appears to be a at the end of the month you qualify. So, let's say you have 1 month's notice and lose your job on the 1st. You may be eligible for payment on the 1st of the next month, but you may find that it doesn't actually pay out until the 30th of that month, depending on how you have it set up.
- Contracting - if you're a contractor you can still get these, but it's harder and you need to check the small print. Think the contracts generally have to be at least 6 months in duration.
- Knowing you're at risk generally means a policy won't pay out. So, if you've been told your job is at risk (rather than just hearing a rumour!) then it's too late to get a policy.
- Qualifying period - there will be a period of time after taking out the insurance where you can't claim. Usually 3 months, but double check this... It is, obviously, to prevent people who know they're likely to be out of a job but who haven't been told yet from being able to get a policy before the axe falls. I mention this last one, as you might want to get a move on!
Policies can be found through the comparison sites - lots include illness cover, etc. as well but you can strip that stuff out so it just covers for the loss of a job.
In only 20 months you've paid the entire £2.5k to this provider. Not cheap IMHO - plus £2.5k Max payout is peanuts you want 6-9 months cover at the very least that £2.5k is roughly 1months gross salary of UK average income.
I suspect the redundancy cover would be a non no as have been on the at risk list in the last year
I reckon I would get 15 grand in redundancy/notice, the wife works so between the redundancy, belt tightening and spending the redundancy carefully, I think we would be good for a year without too much trouble, even if I didnt get a job.
Had a look at jobs earlier, enough about, some on the same money or a smidge more, loads for less, so not overly concerned.
Got one of the kids approaching independence, the other two, may be a little while, though to be fair, they have all at least got some paid employment.
Sometimes it takes a bit of a bump in the road to realise you are actually pretty lucky, and a lady from our place left, got paid notice and a bit of redundancy, then joined another company on 60 percent more money, that is the way to do redundancy.
I reckon I would get 15 grand in redundancy/notice, the wife works so between the redundancy, belt tightening and spending the redundancy carefully, I think we would be good for a year without too much trouble, even if I didnt get a job.
Had a look at jobs earlier, enough about, some on the same money or a smidge more, loads for less, so not overly concerned.
Got one of the kids approaching independence, the other two, may be a little while, though to be fair, they have all at least got some paid employment.
Sometimes it takes a bit of a bump in the road to realise you are actually pretty lucky, and a lady from our place left, got paid notice and a bit of redundancy, then joined another company on 60 percent more money, that is the way to do redundancy.
J4CKO said:
No, we have three kids instead, apparently the 19 year old student needs some £500 specs, that was todays announcement by my wife, not sure what is up with specsavers ?
Fair enough, guess it depends on your income too(obviously!)Kids are expensive, my last one has just finished pre school. I do have a mortgage but now I feel rich, pretty much one less mortgage!Gassing Station | Finance | Top of Page | What's New | My Stuff