Moneymakeover Redundant at 52, is returning to the workforce the best use of my time?

Sarenco said:

I think the first thing you need to do is figure out your “burn rate” - what are you currently spending every year as a couple?

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This is key and something that many people seem to have no clue about unfortunately.

As a mother of grown and flown it can all change abruptly and you might find yourself suddenly “redundant “ again.

Both of ours upped sticks and took their careers abroad fairly suddenly. It was just post covid so they had been fairly constrained in terms of college and travel for a while but both had jobs in Dublin.

So our household shrunk and we were able to downsize etc. A new era for us.

If you plan to be occupied running the house it’s a job with zero job security. Just something to bear in mind. Your kids could move out with their partners etc.

Sarenco said:

I think the first thing you need to do is figure out your “burn rate” - what are you currently spending every year as a couple?

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Great point. I didn't know offhand but I've looked back over my spreadsheets. Non-discretionary spend ~27-30k, Discretionary ~15k. I don't really know what's average, but we're a bit anti-consumerist, so not big spenders. It's just not of interest to us.

conor_mc said:

What are the statuses of both your COAP’s? You probably have about 30 of the required 40 years of contributions?

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Correct, I have just 30years. This concerns me ... it would be a key reason to take parttime employment, ie. not for the income now, but to make up 40 years contributions by the time I reach retirement, age 67? As I don't have a DB pension, I consider a full state pension very valuable. I actully have very little idea of how to make my shares/assets/pension work for me. I just always availed of any company saving scheme (shares/AVCs) to the max.

Annieindublin said:

If you plan to be occupied running the house it’s a job with zero job security. Just something to bear in mind. Your kids could move out with their partners etc.

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No, I do not need them to keep me busy - they've largely been responsible for their own laundry, transportation and capable of cooking for themselves since they've been about 12. However I see that them owning their own place as opposed to renting is very difficult. A large part of our financial independence has come from buying our house early in life. I view travel as incredibly formative and would encourage them to spend a year+ abroad, but while we are all getting along well (more as equals than a nuclear family), while they choose to live in Dublin it makes a lot of sense for them to live at home. They're good craic too.

To be even more honest, I'm shy to admit it, but I guess I do aspire to an alternative life. I would like the chance to begin again. It seems in a way like the easiest thing (if I could) to go back to a job similar to before. That would be the safe option.

I feel like I've had a good innings, but I'm looking for a second round.
I think I'm really looking for assurances that I'm not being reckless here, that we're meeting our responsibilities to our family, but life is short and (provided my spouse is onboard ) I'd like the adventure to begin from scratch (maybe as a carpenter's apprentice, or an artist, or an activist, or student, or ...)

I would say if you can inject some of that enthusiasm and independence to your kids with some hard work and good fortune they will be able to make their own way in life. We don't exist just to get our kids ahead! So you can take the deposit out of the equation and see where that gets you.

J Mount said:

They're good craic too.

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That’s a fantastic compliment to be able to pay your kids!!

J Mount said:

I think I'm really looking for assurances that I'm not being reckless here, that we're meeting our responsibilities to our family, but life is short and (provided my spouse is onboard ) I'd like the adventure to begin from scratch (maybe as a carpenter's apprentice, or an artist, or an activist, or student, or ...)

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You were doing so well up until you said become a student again… €€€€….

I think you definitely have the option of retiring early (with spouse on board, as you said) so anything above that in terms of income is fair game.

J Mount said:

If my current finances don't realistically allow me to leave the paid workforce now I'd try harder to return to the previous status-quo if needed,

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Annieindublin said:

As a mother of grown and flown it can all change abruptly and you might find yourself suddenly “redundant “ again.

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The decision you make now is not a final decision. Why not take two years off and do what you want? Keep half an eye out for consulting projects or other work which you would like. But turn them down if they don't suit you.

Review the decision from time to time. Maybe you will get bored not working professionally and may need to go back to full time work for your sanity.

J Mount said:

Summary of Assets and Liabilities
Family home value: 700k, no mortgage
Cash: 120k (from redundancy, not sure what to do with it, sitting in a bankaccount losing against inflation)
Defined Contribution pension fund: 920k
Company shares : 120k

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1) Get rid of the company shares if it's tax efficient to do so. You should not have such a high proportion of your assets in one company.

2) You can well afford to stop work now if you want.

3) You will be a long time burning through your spouse's salary and €1,160k and the Contributory Old Age Pensions.
4) And when you do burn through them, you will be able to raise finance on the value of your home.

5) You probably can't gift each of your children €100k. But you can certainly lend them €100k and ask them to return it if you need it.

I am very grateful for all the AAM helpful input!

@Brendan Burgess - What you've said above, NOW makes sense to me. I couldn't see it before, but it summarizes and points me the direction forward. Mile Buiochas!

I've learnt a hell of a lot from this dialogue. I know I am 'avoidant' when it comes to all things financial, it has taken me a long time to gather my resources to submit my details for a Money Makeover post but I'm so glad I did. Some views expressed "I'd resent my spouse if...", "What's your burn rate?" initially seemed almost like blunt blows, but I so appreciate the straight talking - I don't get that elsewhere and it's exactly what I need to work through this stuff.
And other commentators just swelled my heart and have really boosted my confidence (@conor_mc , @misemoi , & others!). As a new member I don't think I can thumbs up/heart a comment but please know the sharing of your time and empathy in contributing on this forum is really appreciated.