Good morning fellow Wazuans

It has been ages since I made a post here I hope everyone is ok.

I need your help on this one Someone is considering taking VER. This is the status of the said person;

(1) Turns 50 in March this year thus can drawdown 100% of their PF. Total sum net of tax 13,500,000.

(2) offer given by the company comes to another 4,400,000.

(3) Has one sacco loan of 600,000.

(4) No mortgage, no kids (zero school fees).

(5) Lives in a rental house (30K rent) ... Has a house near Nairobi that is liveable and can be moved into at anytime. The person can also farm vegetables on the parcel of 2.5 acres.

(6) Owns 2 acres of land valued at 6m, and another 1/8th valued at 800k thereabout.

(7) Has fixed income securities that generate 112,000 PA. This is till 2023 when the principal amount will be reimbursed.

(8) In terms of work there is very little room for upward progress in the next 10 years although it is 2 positions away from Director level ( a lot of corporate politics is in play here so this might ever happen).

Should the said person keep working or take the offer.

Asanteni

I can see that you have decided to ditch the sinking KQ ship. Nice move or you sink with it.

How many months current net salo does the 4.4M cover?

Does he want to find another job or pursue other interests?

Is the employer stable enough to keep him employed for another 10 years?

The payout gives him 2 years breathing space to find another job. If employer is not stable, then perhaps its not a bad idea to exit. However, given current conditions, another job may not be so easy to land.

PF should not be considered as that is the real backup post retirement, and I think becomes tax free after the age of 65.

At 50 take your money and go.Look for another job even if its paying less.Meanwhile learn or start something new to push you past retirement.

Take your PF and fix it where it earn you 10% and above.

A company that is going through VER has no room for guys who are 50years.