Talking to a friend who may be offered a deal to leave the public sector early as part of the cut backs. Say he earns around £30k per year, he would be offered twice that amount (one month for every year worked and say he has worked for 30 years) making a total of over £30k. Then he would be offered a pension of about 50% and be able to commute part of his pension, say 3x his pension. So he would be offered around £60k plus £15k per year, index linked, for life. One way or the other, as some people say, he would receive nearly £100k plus his pension.
So if ten of his chums with similar service sit down for a farewell lunch, there will be nearly £1million round the table. Multiply that by a few tens of thousands of people who may be leaving the public sector and there will be a sizeable chunk of cash looking for a home.
Wonder if any will chose to invest in a technology start-up and need a business plan resource? That is the puzzle as the cash may have to last for many years and if it is left in cash or near cash with little risk, the purchasing power will decline rapidly if we have any inflation. Touch decisions to be made.
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