Active discussions

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Rate my financial situation

163 replies

Juniperberry55 · 07/07/2025 15:25

Everything finance wise on Mumsnet seems to be very polarised, either those on £100k+ income with tens of thousands in savings and a holiday home, or not having 2 pennies to rub together

I'm quite curious to see how people would rate my financial situation on average for my age

So I'm 33, live alone
I own a house worth roughly £220k with around £45k mortgage left to pay
Around £14k in debt on 0% credit cards and a low interest loan all due to be paid off in around 2 years
Income around £42k a year
Almost no money in savings, currently trying to build up an emergency fund of a couple of months pay
£0 retirement

I'm guessing there will be the odd comment about this being a stealth post. It is not, I am in debt, I think my finances are not great in some areas, in others I think they're not too bad

Score me 0-10 on how you think my financial situation is for my age 0=awful 5= average 10=Jeff bazos level 😂

OP posts:
Middlechild3 · 07/07/2025 16:47

Oh well fingers crossed OP!

Ohmygodthepain · 07/07/2025 16:46

Your mortgage is £500 a month with a take-home of £2800 - you need to find out where the rest is going. £2300 minus bills excluding mortgage is over £500 a week with nothing to show for it.

You have a great amount of equity.

Cc debt, no pension and no savings need to be addressed as a priority

Original poster
Juniperberry55 · 07/07/2025 16:43

Jellycatspyjamas · 07/07/2025 16:41

The reason not to consolidate and add to your mortgage is that if you fall on hard times you can negotiate with the credit card companies, freeze interest or enter a debt management plan. If you add it to your mortgage and fall on hard times, they’ll take your house. Even if your mortgage rate was less than your credit card rate you’d be very foolish to consolidate on your mortgage unless there was literally no other option.

Edited
Show quote history

Yep like I said, no plan to consolidate onto my mortgage

OP posts:
Original poster
Juniperberry55 · 07/07/2025 16:42

Middlechild3 · 07/07/2025 16:36

You don't seem to fully understand it though, even delaying at 33 to 35 won't just have a 2 year subtraction from the end amount value. There are calculators out there OP which show how much more you would have to pay into a pension at different ages to get the same income. It's sobering! Anyway your take home is what circa £2750 a month? Smallish mortgage, after bills there's still plenty to put towards improving your situation quickly.

Show quote history

I'm aware how pensions work, the earlier you contribute the better, it compounds, I get it
But like I said I am prioritising being in a secure financial position over the next couple of years over a bit of extra income at retirement.
I am paying £500 mortgage £600 debt so that takes my income down to £1650 before I've paid for bills and groceries and savings(emergency fund). I currently only have £600 in a savings account, I am prioritising getting this upto a level that would mean I don't immediately end up in a situation I can't pay bills if I lose my job. I will start my pension contributions in about 2 years, it can then compound for the next 33 years and I may even be able to invest more elsewhere once mortgage is paid off etc

OP posts:
Jellycatspyjamas · 07/07/2025 16:41

Juniperberry55 · 07/07/2025 16:37

Yep not planning on consolidating onto a mortgage when I get get it paid on 0% credit cards and low interest loan over the next 2 years, I don't see the point tbh. Also my mortgage rate is very low in comparison to today's rates and I don't want that changing

Show quote history

The reason not to consolidate and add to your mortgage is that if you fall on hard times you can negotiate with the credit card companies, freeze interest or enter a debt management plan. If you add it to your mortgage and fall on hard times, they’ll take your house. Even if your mortgage rate was less than your credit card rate you’d be very foolish to consolidate on your mortgage unless there was literally no other option.

Middlechild3 · 07/07/2025 16:40

PeapodMcgee · 07/07/2025 15:56

It's not advice, but I have seen others paying sooo much into their pensions, only to drop down dead in their 50s and 60s. There is no guarantee of retirement and there has to be a balance. I think paying off debt should come first, in my opinion.

Show quote history

There's also lots of people who haven't made pension provisions living into a ripe old age in miserable poverty.

ItsFineReally · 07/07/2025 16:40

@Juniperberry55 how do you feel about your financial situation? It sounds like you have a solid plan. Does that align with your future goals - both financial and non-financial?

In terms of pension, I won't echo the others as although it was the first thing I thought too, the standard personal finance flowchart (so often referenced) suggests building up an emergency fund first too.

The only thing I will say is given you are single and are worried about what could happen if you lose your job, you may want to look into critical illness and income protection insurances. They can provide an additional level of comfort for minimal expense and if the worst happens you'll be very glad you did it.

Viviennemary · 07/07/2025 16:37

About 3. You have a reasonable salary but a lot of debt. Why?

Original poster
Juniperberry55 · 07/07/2025 16:37

ItsFineReally · 07/07/2025 16:34

Because your ltv is small in terms of mortgage can you consolidate your debt onto the mortgage and reduce interest payments that way ?

@GasPanic Why on earth would you transfer unsecured credit card debt and loans on low rates to secured mortgage debt?

[Edited to say: I hadn't seen that Jellycat said the same!]

Edited

Yep not planning on consolidating onto a mortgage when I get get it paid on 0% credit cards and low interest loan over the next 2 years, I don't see the point tbh. Also my mortgage rate is very low in comparison to today's rates and I don't want that changing

OP posts:
Middlechild3 · 07/07/2025 16:36

PeapodMcgee · 07/07/2025 16:29

I've not said 'don't ever pay into a pension', have I??

I do have one, I'm not an idiot.

Edited
Show quote history

You don't seem to fully understand it though, even delaying at 33 to 35 won't just have a 2 year subtraction from the end amount value. There are calculators out there OP which show how much more you would have to pay into a pension at different ages to get the same income. It's sobering! Anyway your take home is what circa £2750 a month? Smallish mortgage, after bills there's still plenty to put towards improving your situation quickly.

Original poster
Juniperberry55 · 07/07/2025 16:35

CrystalSingerFan · 07/07/2025 16:32

OP, apologies if it's obvious, but what kind of pensions are we talking about here? State? Workplace? Other (private?)

I'm 66 and have both the full state pension for a single woman and some disappointingly small workplace pensions. Nothing else. Do you have the kind of job where you pay your NI contributions and plan to accumulate 35 years' worth? That'll help. Plus, as the PP says, "You mention company pension scheme. Does that mean you are effectively missing out on “free money” by not joining now?"

Here's a useful link: "For many people, the State Pension is only part of their retirement income. For example, they may also have money from a workplace pension, other pension and/or earnings." Good luck.

https://www.gov.uk/government/publications/your-new-state-pension-explained/your-state-pension-explained

Show quote history

State pension will be fine I pay national insurance and have done at all jobs since I was 17 so by the time I hit retirement age I'll be entitled to the state pension.
When I say I have no pension I mean I'm not paying into a pension fund where my employer would also contribute. This is in addition to state pension. I plan on starting contributing when I am 35 debt free and have an emergency fund

OP posts:
ItsFineReally · 07/07/2025 16:34

Because your ltv is small in terms of mortgage can you consolidate your debt onto the mortgage and reduce interest payments that way ?

@GasPanic Why on earth would you transfer unsecured credit card debt and loans on low rates to secured mortgage debt?

[Edited to say: I hadn't seen that Jellycat said the same!]

CrystalSingerFan · 07/07/2025 16:32

CaptainSevenofNine · 07/07/2025 16:05

Absolutely this. You mention company pension scheme. Does that mean you are effectively missing out on “free money” by not joining now?

find a way to join now please.

Show quote history

OP, apologies if it's obvious, but what kind of pensions are we talking about here? State? Workplace? Other (private?)

I'm 66 and have both the full state pension for a single woman and some disappointingly small workplace pensions. Nothing else. Do you have the kind of job where you pay your NI contributions and plan to accumulate 35 years' worth? That'll help. Plus, as the PP says, "You mention company pension scheme. Does that mean you are effectively missing out on “free money” by not joining now?"

Here's a useful link: "For many people, the State Pension is only part of their retirement income. For example, they may also have money from a workplace pension, other pension and/or earnings." Good luck.

https://www.gov.uk/government/publications/your-new-state-pension-explained/your-state-pension-explained

Your State Pension explained

https://www.gov.uk/government/publications/your-new-state-pension-explained/your-state-pension-explained

Original poster
Juniperberry55 · 07/07/2025 16:29

Middlechild3 · 07/07/2025 16:25

Get a pension sorted now, you'll thank us later

Show quote history

What if I lost my job and couldn't pay my bills because I hadn't paid off my debt or created an emergency fund to get me through the rough patch? The pension pot wouldn't help me through
I'm happy to join the pension once I'm stable but not at the risk of being able to survive a job loss
I feel like I'd rather lose the £100 a month extra pension once I'm retired than risk losing my house for the sake of waiting a couple years to join the pension fund

OP posts:
PeapodMcgee · 07/07/2025 16:29

Middlechild3 · 07/07/2025 16:27

It's free cash though as the employer pays in too. It's not just a savings account!

Edited
Show quote history

I've not said 'don't ever pay into a pension', have I??

I do have one, I'm not an idiot.

Middlechild3 · 07/07/2025 16:27

PeapodMcgee · 07/07/2025 15:39

See, I disagree with prioritising a workplace pension to the detriment of today. Most people do end up inheriting something (not guaranteed, but most do), and OP will have few outgoings in her 70s, unless she wants to let rip.

It's free cash though as the employer pays in too. It's not just a savings account!

PeapodMcgee · 07/07/2025 16:27

Middlechild3 · 07/07/2025 16:25

Get a pension sorted now, you'll thank us later

Show quote history

You are not listening.

Middlechild3 · 07/07/2025 16:25

Juniperberry55 · 07/07/2025 15:30

Nope, the plan is to join pension fund once the 14k debt is cleared and I have an emergency fund. So will probably join when I'm 35

Show quote history

Get a pension sorted now, you'll thank us later

Original poster
Juniperberry55 · 07/07/2025 16:25

Middlechild3 · 07/07/2025 16:21

Not bad but would be much better with a cushion of savings. Harsh reality is you are possibly one job loss/redundancy away from seriously at risk of needing to sell your house to pay debts. 6 months living expenses saved would give you a buffer to get another job, or a lodger in etc if the worst happened. It's not just about saving for good things, it's about coping with any bad unexpected things. Forgot to add no pension at your age is dangerous. The longer you leave it the more you have to put in monthly for the same income up to a point where you can't catch up.

Edited

Yep, that's basically how I feel I'm doing. Not bad but not great and the single income, lack of savings and debt is what's concerning me at the moment if I was ever to lose my job. So prioritising debt payments and emergency fund. Hoping in 2 years, I'll be debt free, emergency fund sorted and can join the pension. I would then only have around £37k on the mortgage and would feel very secure financially

OP posts:
Brickiscool · 07/07/2025 16:21

Not having a pension at your age is crazy. Your company would pay into it and you would contribute too. I'd start that immediately and pay off the debt slower.

Middlechild3 · 07/07/2025 16:21

Not bad but would be much better with a cushion of savings. Harsh reality is you are possibly one job loss/redundancy away from seriously at risk of needing to sell your house to pay debts. 6 months living expenses saved would give you a buffer to get another job, or a lodger in etc if the worst happened. It's not just about saving for good things, it's about coping with any bad unexpected things. Forgot to add no pension at your age is dangerous. The longer you leave it the more you have to put in monthly for the same income up to a point where you can't catch up.

Original poster
Juniperberry55 · 07/07/2025 16:17

CaptainSevenofNine · 07/07/2025 16:05

Absolutely this. You mention company pension scheme. Does that mean you are effectively missing out on “free money” by not joining now?

find a way to join now please.

Show quote history

Yes I will be missing out on free money, however I live alone with minimal savings, so I want an emergency fund before I start paying into my pension as I'm in a position if I lose my job and don't find a new one instantly I could lose my house, go into more debt. So pension contributions currently on hold. J would possibly consider paying into my pension now and start paying into my pension if I had another person's income to fall back on if I lost my job. But that isn't the case. So working on making myself a bit more financially secure now and then start paying into a pension in a couple years, where I'll still have 32/33 years to contribute

OP posts:
Jellycatspyjamas · 07/07/2025 16:15

Because your ltv is small in terms of mortgage can you consolidate your debt onto the mortgage and reduce interest payments that way ?

Its usually a bad idea to move unsecured debt to debt secured against your house, better to work aggressively at paying it down.

Original poster
Juniperberry55 · 07/07/2025 16:14

Parmaviollets · 07/07/2025 16:04

So how much savings do you have if you are able to save a few hundred each month?

Get a sipp open now with 100 and leave it .
When you can start to add bits here and there
25 a month now can make a big difference with the time lapse.

About £600 currently should have about £5000 in there by this time next year

OP posts:
Original poster
Juniperberry55 · 07/07/2025 16:13

GasPanic · 07/07/2025 16:03

You need to be aggressive about seeking out money. Remember every pay rise you don't get now is not just you losing that money for that year. If you fail to get say 1K this year that will lower your salary by that for the rest of your working life so 65-33=32x whatever you fail to get.

Your debt position does not really look job re your job security tradeoff. It's people who are confident of their debt position that can negotiate most aggressively as losing their job has less fear/impact.

Always remember that storing money in say a savings account gives you more flexibility than paying off a mortgage or putting in a pension, even if it costs you more in terms of interest.

Because your ltv is small in terms of mortgage can you consolidate your debt onto the mortgage and reduce interest payments that way ?

My mortgage rate is very low so I wouldn't want to remortgage
My pay rises are set nationally, so there is no negotiation to get a higher pay rise.
Working on my emergency fund now

OP posts: