How to decide whether to take voluntary redundancy: 5 things to think about
Being offered voluntary redundancy can feel like both a curveball and an opportunity. Whether it’s a corporate restructure or early retirement offer, the decision can shape the next chapter of your life. Do you take the package and leap into the unknown, or stick with the familiar?
Here are five key things to help you think it through.
1. Your Financial Runway: Covering the Basics
Before anything else, take an up-close look at your finances.
How long could you realistically support yourself if you stopped working tomorrow?
It can take anywhere from 3 to 9 months (sometimes more) to land another job, start a business, or transition into a new career.
So ask:
How many months of living expenses will your redundancy package and savings cover?
Do you have any major financial obligations or debts to service?
Will you be eligible for benefits or other income support?
Understanding your financial runway is the foundation for the decision you make.
2. What Kind of Change (If Any) Are You Ready For?
This could be more than a career break, it might be a career turning point. If you take voluntary redundancy you have 3 options as to what to do next, Stick, Twist or Bust -
A. Stick (Same job, different place):
Maybe you enjoy your work and want to do the same role elsewhere.
If so, check the job market:
What jobs are out there right now?
Are recruiters interested in your profile?
How strong is your network, contacts?
B. Twist (New way to use your skills):
This might be a chance to move into a different space while staying true to your expertise. What are your skills and strengths that could be used in a different way? Could you teach, coach, consult, or mentor using what you already know? This is about evolving your current identity rather than leaving it behind.
Consider:
What skills or knowledge do people often come to you for?
Could you package what you know into a service, course, or offering?
Is there a demand for your kind of experience in a new format?
What other industries, audiences, or causes could benefit from your expertise?
C. Bust (Complete career / life change):
Feeling the pull to do something totally different? This might be your moment to retrain, upskill, or follow a long-held dream. It’s a bold move, but sometimes redundancy is the nudge we need to reinvent ourselves. This is about letting go of your current track and building something new.
Ask yourself:
What would you do if money wasn’t a factor for 12 months?
Is there a dream you’ve been postponing because of stability or fear?
Are you curious about something entirely different, tech, creative work, healthcare, trades?
Are there lifestyle changes you’d need to make to support a fresh start?
Does the idea of reinvention feel freeing or overwhelming?
3. Know Your Market Value and Appetite for Risk
Now’s the time to audit your worth and ask: how employable am I? This is not just about skills and knowledge, it’s also about aptitude, openness to learn and grow, and ability to coach.
Are your skills still in demand?
Have you kept pace with industry trends, tools, or certifications?
Would a hiring manager see you as current and competitive?
If the answer is unclear, test the waters, talk to a recruiter, scan job ads, or apply for a couple of roles.
Also tune into your risk appetite:
Are you someone who thrives with uncertainty?
Or someone who needs a clear path forward?
Does it feel like a ‘gamble’ or a calculated risk’?
4. Lifestyle Fit, Purpose, and Priorities
Work isn’t everything and redundancy can give you a rare moment to recalibrate. Think about your wider life goals. What are your priorities? Coudl this be about creating space for something else? Family, friends, interests, health, adventure.
Think about:
What kind of lifestyle do you want?
What are your priorities outside of work; health, family, travel, learning?
Will this decision bring you closer to or further from your values?
This isn’t just a career question. It’s a life alignment question.
5. The Risk and reward of Staying Put
It’s tempting to feel like staying is the safe option. So check-in: what’s the risk and reward of staying?
Will your role or workload change - for better / for worse?
Is there still joy, is morale low / high, is there hope and a future vision?
Is there an opportunity if you stay?
Sometimes, staying carries its own risks, stagnation, burnout, or being caught off-guard by future layoffs. Sometimes staying carries opportunity that you might not have considered. Look in all the corners so you can feel like you’ve thought about it. You might not be able to get all the answers, but awareness helps guide your decisions.
Making the decision
There is no crystal ball. But know that you will make the right decision, with all the resources, information, feelings you have, for you right now. And trust that whatever the decision is, you will work to make it a good decision.
That’s all you owe yourself - to back yourself when your decision is made.
Voluntary redundancy isn’t just about leaving a job, it’s about deciding what kind of future you want to create. If you're offered the chance, take the time to reflect. Talk it through with a trusted adviser, and weigh both the emotional and practical sides.
You don’t have to know all the answers today.
But asking the right questions will get you closer.