I can confirm my finishing date at Work will be 21st December, Officially we close on 30th November but along with a few others I've been asked to stay an extra 3 weeks. This new date is the handover of the site to the new owners.
My final two payments (Nov & Dec) I will be only actually getting 20% cos I've made a decision to put 8o% as voluntary contributions into my works pension. By doing this I can beat the Taxman and significantly boost my pension when I decide to take it.
Don't panic I wont be poor on this rate, ok my Nov pay will be low but my December payment includes on top of my months salary, 3 extra months notice period payed up, my holidays paid up and numerous bonuses. Basically I'll still end up about double what I normally get in my bank and also stop the Taxman getting a huge slice.
On top of this I will also be getting a very good severance payment and a large slice of this is tax free, the 2nd part I pay tax on but have an option of putting in my pension to save the tax. The rate for this isn't as good as for salary "voluntary contributions" so I'm undecided which way I'll go.
Works pension calculations are complicated but its based on aged 60, I have options of taking it early with penalties (6% compound interest per year = 55% pension at 50), I considering taking at 50, 52 or 55, more sums to do.
Anyway the new company may offer me a job but I'm unsure what I'll do, my department is in tatters, of the 5 men I have working for me 3 have found jobs and one is retiring, only leaves two of us. The hassle and stress of trying to keep a 24hr/365day process running may not be worth it. I've never had the ambition of been the richest man in the graveyard.
Well back to my Maths.
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6 comments:
Wow that's a lot of things to consider! Great plan to keep from paying more taxes.
Well whatever you decide I hope it works out for you. Best of Luck!
YIKES, you do have quite a bit on your mind where work is concerned.
I can agree and found amusing your graveyardcomment. Could you stay on for perhaps a year and then retire and offer travel for singles and couples. You certainly seem to know your way around....???
Just a thought to ponder.
Work to live, not live to work. That is a very fine motto.
Things are starting to sort themselves out, and with a bit of luck 2008 will be a very fresh and exciting year for you. :)
hey Mick,
all those decisions, i certainly don't envy you. have you thought of just doing something completely different and working part time rather than taking your pension and paying so many penalties?
better you than me!
hope you're well, i had an excellent b'day party and managed to drink 4 bacardi breezers and a half bottle of white wine whilst singing too much karaoke! my dad in law is a singer and runs a karaoke service so he brought it round for the party, didn't warn the neighbours so hopefully they won't have gotten too much of a fright from my vocal stylings!
hope you're well, look forward to more updates
xxx
Wow, smart move to outsmart the tax man! Hard call on the job, I know. Let us know what you choose to do! We will all be thinking about you.
Hugs,
Rach
RNG,
Yeh its good if you can avoid paying some tax, they take so much.
Rebecca,
Not sure if I want to work there anymore, but I'll still listen to offers. Part time would be good if I can get them to agree.
Airlie,
Exactly my thoughts.
San,
Thing is if I invest a large part of my redundancy into my pension, I've rally got to take the pension cos my money would be frozen in a holding account and not keep up with inflation. I will still be getting a large part of my payment that is tax free, if I take the option of taking the other part and not putting towards the pension I could pay up to 40% tax.
I'm pleased you had fun at your party, wouldn't get me on the Karaoke, well not sober anyway.
Rach,
When I make my final decision I'll be able to give the facts to my friends, including yourself of course.
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