Sister is at the Crossroads - redundancy

[Ignis Fatuus]

My sister is 52 and she has been offered redundancy by the big bank she works for. £70k pay off and and 11k pension she can take in three years time

but she is terrified. She's been working so long that the thought of not having a steady job frightens her a lot.

She is right to worry. My partner did similarly, and bitterly regrets it. She is now desperately lonely, bored, and aimless (having a partner who is always away doesn't help). The money can be easily planned, it is the life or lack of it that it the real risk.

[lukemg]

What IF said, not as simple as it sounds especially for people who have been in one place forever, they invest a lot in the job, see themselves in relation to the occupation etc. It provides a framework for their lives and they can be lost without it if they dont have other activities that they would love to spend more time on.
I struggle myself between contracts for just this reason.
Moneywise - that 70k needs to be earning its keep and I am cringing to think about the IFA's rubbing their hands when you call them up.
I would be looking at share ISA's (probably low, low cost tracker, regular payment NOT lump sum), combined with 3yr + 5yr retail bonds for simple fixed interest with no risk.
Without any previous knowledge/skills/experience I would not consider buying a 'little business' to run, they can be a lot of grief and a good way to burn through 70k with jack to show for it.
Standard reaction to huge life change is fear, better than even chance she will find a niche, part-time work, other activities and tell you it was the best thing that could have happened to her in 6 mths from now.

[vetran]

Considering Nigella is also 52, would MTT?

she is, cor I always wanted to be a toyboy - Nigella , Mitch you get slopply 2002nds.


I think the thing is to transition, if she just stops it will be a crisis, if she reduces and and maintains her lifestyle it might well be quite good.
Can she get a consulting gig based on her experience? 2 days a week or 6 months of the year contracting, the rest wood carving / making jam/ running a bird refuge?

Agree £70k would be swallowed by an IFA, its enough to stack her ISA's and some decent small safe investments.

Both My Father & Father in law retired and are now better off mentally & monetarily than when they worked, plenty of work out there for those willing to graft with 20 years expertise.

[Dallas]

My parents retired about 4 years ago and spent the first 2 years feeling guilty and recluse going to several supermarkets everyday as produce was being reduced was the only other social interaction they had. I saw them age physically and mentally at least 10 years during that time.

More recently they have been listening to me and joined various groups: tai chi, table tennis, hiking, bowls, bridge, swimming lessons. They now have a better social life than me, go on group holidays, dinner parties etc.

Financially, both on final salary pensions, sold the house and pay themselves from their investments.

I remember when I was little my Nan joined 'Cruise' (I think) dancing and holidays for singletons - looking back they were probably all 'at it' too go Nan!

I think just turning the TV on during the day is your catalyst for a downward spiral - write a bucket list and go.