Taking early retirement from Civil Service to work in the Private Sector

gazzer

Morning.

Over the last number of months I have been considering taking early retirement from the Civil Service. I think a combination of the pandemic and the benefits of wfh have made me realise that commuting 3 hours a day to work isnt something I need to do anymore. Though I am currently only working 2 days in the office the future is unknown until the offical blended working policy is implemented. It could well be that I would need to work 3 or 4 days in the office.

I have 31 years in the Civil Service (pre 1995) and I have the option of the Cost Neutral Early Retirement scheme. I am considering opening a last minute AVC to make up the shortfall for my lump sum and thinking of retiring at the end of the year. My lump sum payment would be good enough (around 70k tax free) but my weekly pension would be 350 euro a week. As I pay Class D PRSI I would not be entitled to any state pension. I just have this 'life is too short' mentality for a while now and would like to move into a new career path, be it my own small business or even working part time at something I would enjoy. I just love the idea of working in an area that I would get much more back from (maybe working with a charity or working in the community)

I am lucky in that our mortgage is manageable, no children and my partner works full time. Im aware of the tax implications of getting a pension and working but even if I worked say 20 hours a week. I would have much more time to go to the gym, take up more hobbies, do college courses. I wouldnt be taking much less home then I currently am (about 100e a week) when you take into account the commuting costs to travel to Dublin from where I live, plus the long commute I have to and from work. I had applied for the mobility scheme to be nearer home but I have not moved much up the list in the last year so that is not going to happen anytime soon. In addition I am the LSI scale so my salary will not increase for another 2 1/2 years (not including any pay agreements).

I also thought that as I would be 51 I still have a good number of years to work in the private sector, pay Class A PRSI and be able to avail of a State Pension in addition to my CS pension when I hit my late 60's. I still have a lot of thinking to do about this and want to give myself enough time to make an informed decision.

So I have two questions.

1. Am I crazy to even consider this
2. Has anybody here done what I am thinking of doing and if so how did it work out for you?

Sorry for the long post.

Thanks

hardybuck

https://www.boards.ie/discussion/2058247643/taking-early-retirement-from-civil-service-to-work-in-the-private-sector

Why don't you just go down to a 3-4 day week and cut down your hours? Unlikely to be doing anything more than 1-2 days a week in the office if you were working 3-4 days.

Try that for a year and see how you feel, and you might be happier with your work/life balance.

If you really want to go you could also take a career break first so that you'll have a safety net to fall back on.

xeresod

I second the above post, take a career break first - the rules changed a good few years ago to allow for working in the private sector so you wouldn't even need to lie about your reasons for taking it!

Either way know what you want to do first, you seem very vague and working at "something you enjoy" really is more about your mindset/approach to the job rather than the tasks. Plus most charity and community work (unless on a DSP scheme which wouldn't apply to you) is unpaid so you do need to research.

And do a pre-retirement course, any of my staff that have done them have found them great - plus you'll get a couple of nights away with your partner courtesy of the taxpayer....just wait until some of the usual anti-PS find out about that "perk" 😂

Alonzo Mosley

OP, I think you have to be at least 55 to avail of Cost Neutral Early Retirement scheme. I am open to correction though....

Mrs OBumble

Have you tried actually applying for any private sector jobs?

xeresod

https://www.boards.ie/discussion/comment/119121714#Comment_119121714

In the civil service, it's 50.....I'm counting down the time!

gazzer

https://www.boards.ie/discussion/comment/119121221#Comment_119121221

I've been thinking of reducing my hours but it would still mean spending at least one day doing the 3 hour commute.

As for a career break, without the lump sum as a buffer it would be a struggle just working part time but it's certainly something I can consider.

gazzer

https://www.boards.ie/discussion/comment/119122641#Comment_119122641

No not yet. As I'm only considering my options at the moment I've been researching what sort of part time jobs there are in my area. Actually there are a ton more then I would have thought. I've also been researching courses. It's still a bit up in the air in my head so need to tie down certain things before making any final decisions.

gazzer

https://www.boards.ie/discussion/comment/119121629#Comment_119121629

Thanks. Yeah I probably come across slightly vague. Still need to research options before I make an final informed decisions. Never knew that about the retirement course. Good to know

getoutadodge

PM me if u wish to discuss with someone who did something similar

Mrs OBumble

https://www.boards.ie/discussion/comment/119122818#Comment_119122818

There may be an apparent ton of jobs. That doesn't mean a person aged 50+ with only civil service experience will get offered any of them.

Part of your research needs to involve testing if you can actually get offered a job.

Ninthlife

https://www.boards.ie/discussion/comment/119125248#Comment_119125248

Would 'only civil service experience' hamper the persons ability to gain work in the private sector in some way?

gazzer

https://www.boards.ie/discussion/comment/119125248#Comment_119125248

You make it sound like civil service experience is a bad thing lol. There are transferable skills. I've been lucky over my career to work on very interesting projects and policy, marketing, technical work. I have a degree and I'm definitely not afraid of hard work. In any event i won't be looking for a full time job if I take early retirement. 51 is young in todays world.

Emma2019

Civil service wfh plan is available, although due to be updated again. The minimum coming into the office is one day a month. It will depend on your department and your manager as to how much more than that you'll be required to come in.

I have friends in Revenue that will only be going in once every 2 weeks.

gazzer

https://www.boards.ie/discussion/comment/119140474#Comment_119140474

One day a month? I havnt seen that mentioned anywhere. I Do you have a link?

Emma2019

Link to the policy is here.

https://www.gov.ie/en/press-release/67fed-minister-mcgrath-and-minister-of-state-smyth-publish-civil-service-blended-working-policy-framework/#:~:text=The%20Blended%20Working%20Policy%20Framework%20includes%20common%20principles%20to%20apply,business%20needs%20and%20local%20demand.

Page 36 shows that when the system is live you'll request X amount of days either per week, fortnight or month. When they were doing the information sessions they told us the NSSO request system was being set up so that the minimum you had to be in the office was 1 day a month.

We got an email yesterday saying the NSSO request system has been delayed. Our PO told us they're now expecting it to be live in July/August so we wont be going back to the office until then.

Also civil service hours are going back down to 35 hours from 1 July so that's an added bonus.

Mrs OBumble

https://www.boards.ie/discussion/comment/119125412#Comment_119125412

What you or I think is irrelevant.

What matters is what potential employers think.

Try applying for a few jobs, and see how you do. You don't actually have to accept one now if you get offered it. Just apply to test the water.