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AIBU?

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Original poster

AIbu to wonder how I’ll cope when I retire?

116 replies

HurricaneZeldaAndToto · 02/02/2024 21:02

Oh wise Mumsnet, I really need your help as I’m getting increasingly worried about the future and how we’ll support ourselves when we retire.

I’m 48. I currently work part-time and my income is 60k pa. DH earns the same and pays 50% of all bills etc. We have a mortgage with 20 years left to run at £1.5k per month. This will increase to £2k when our deal ends next year.

Neither of us have any savings, we used them all to buy our house 7 years ago and for various repairs since.

I only have £6k in a pension pot, as I’ve worked for myself most of my adult life. DH had
has only £4k.

Foolish, I feel like we’ve left it too late to properly plan for retirement and we have no idea what we should be doing!!

DH and I have only approx £60k inheritance in the (hopefully long distance) future.

What should we do? Neither of us have the kind of families who could help out with advice and this is not something I’d feel comfortable speaking to my friends about, as they will all inherit enough to never have to worry.

AIBU to think I’ve left it too late?

Where do we start?

OP posts:
Original poster
HurricaneZeldaAndToto · 02/02/2024 21:24

@NotFastButFurious We spent our late 20s/30s saving a deposit to buy. We had no family help. We have then spent the last 7 years doing up the house, as it needed lots of work. So we’ve lived pretty much in our overdrafts since then. We just finished the last final big job, so now we actually have the space and time to think about what comes next.

Now I’m flapping as I’m hoping we haven’t left it too late to properly support ourselves during retirement.

OP posts:
Ozgirl75 · 02/02/2024 21:22

Also, don’t bank on the inheritance - care home fees can eat away at this. A close friend kind of relaxed about future planning as she had a rich grandma, but that grandma lived to 101 and spent the last 20 years in an expensive care home, and there was very little money left by the end.

Ozgirl75 · 02/02/2024 21:20

Also, what does your husband do that means he’s got such a small pension? Has he had long periods out of work?

NotFastButFurious · 02/02/2024 21:19

£60k for part time hours and £750 mortgage per person and you don’t have any savings or pension?!! What on earth are you spending all your money on?? I earn slightly less working full time, pay £700 on my mortgage and bills are only paid by one person so proportionally higher than splitting between two and I easily pay extra into my pension and savings every month! Have you got 16 children or something that you failed to mention??

Ozgirl75 · 02/02/2024 21:18

Concerned not convinced.

Original poster
HurricaneZeldaAndToto · 02/02/2024 21:18

@Greensleevevssnotnose that is a very good point! Downsizing to a 2 bed would generate about £250k is that enough in a pension pot when you retire? As it won’t have had any time to grow.

OP posts:
Ozgirl75 · 02/02/2024 21:18

Not sure why you can’t work more - if you’re convinced about money there are always other jobs out there also part time to fit in with what you’re doing.
I do sympathise though, 40s should be when you can relax a bit and have a fun time, but if you have so little savings you do have to prioritise that, otherwise your retirement will be a little bleak.
Can you overpay on the mortgage?

Catza · 02/02/2024 21:18

HurricaneZeldaAndToto · 02/02/2024 21:10

Is money in the pension pot the only option?

I have no idea how much I should be putting in or for how long. What will that look like when we retire?

I can’t go full-time, there is not the work to make it happen.

Speak to a pension adviser, CAB… You earn good salary and run your own business, it seems you have capacity to gather information about your financial options.

Original poster
HurricaneZeldaAndToto · 02/02/2024 21:16

@SmallestInTheClass thank you, I’ll look on Moneysavings expert.

OP posts:
Greensleevevssnotnose · 02/02/2024 21:15

HurricaneZeldaAndToto · 02/02/2024 21:14

@anythinginapinch we can’t really downsize, we’re SE so that’s a tiny mortgage for the area. Also we need all the bedrooms and office, so couldn’t really go smaller.

I also can’t work full-time. My comment base is extremely limited and I’ve just about maxed them out.

I know that sounds like excuses, but it’s really not.

When you retire you will only need one bedroom, that's when you downsize

Original poster
HurricaneZeldaAndToto · 02/02/2024 21:14

@anythinginapinch we can’t really downsize, we’re SE so that’s a tiny mortgage for the area. Also we need all the bedrooms and office, so couldn’t really go smaller.

I also can’t work full-time. My comment base is extremely limited and I’ve just about maxed them out.

I know that sounds like excuses, but it’s really not.

OP posts:
SmallestInTheClass · 02/02/2024 21:14

Pay as much as you can into a pension as soon as you can. You'll be working for the next 20 years or so while you pay the mortgage off so definitely not too late. But pensions only work well if they have time to grow, so don't wait. Read up on Money saving expert about the best pensions. It's far better from a tax perspective than just putting in a savings account.

Original poster
HurricaneZeldaAndToto · 02/02/2024 21:10

Is money in the pension pot the only option?

I have no idea how much I should be putting in or for how long. What will that look like when we retire?

I can’t go full-time, there is not the work to make it happen.

OP posts:
anythinginapinch · 02/02/2024 21:09

Well, work full time, downsize the house, and pile £ into a pension.

Catza · 02/02/2024 21:08

Your combined salary is 120k a year. You currently looking at paying 24k mortgage per year which leaves you with plenty of money to spare. Why not pay more? Why not increase your pension pot with the remaining money?
20 years is plenty to pay off your mortgage, build a savings pot and increase your pension contribution. Not to mention that you can downsize.

GOODCAT · 02/02/2024 21:07

The way to look at it is that anything you can save into your pension is going to be a plus. You should also end up with a mortgage free home.

Can you go full time?

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