Okay this is deathly dull, but please talk to me about pensions.

[KitKat1985]

Hi wise Mumsnetters.

So I'm 33 and on about 31k a year, and DH is 38 and on about 26k a year. We both have workplaces pensions with the NHS. Our finances are relatively stretched right now and we have two young children and associated nursery fees etc and a big mortgage.

Do we need private pensions as well as workplace ones? And if so how much do you have to pay into them?

Do you know what scheme you're on? I believe the NHS pension scheme is a pretty good one. I am in the police pension scheme, I pay 14% of my earnings so couldn't afford to pay any more than that anyway.

If you've been considering retirement planning, have you thought about how much income you would like to have in retirement? You then need to work backwards from this to look at how much you would need to be putting away now and over the coming years to meet that target income. Find out what is the shortfall between your current pension contributions and what you should be saving. That should guide you towards an answer to your questions.

If you are auto enrolled into a pension you need to read this, it happens in 6 weeks and I don’t think many people know about it

www.bbc.co.uk/news/business-47269042

Thank you for the advice. Will read that link Paddington. x

Do we need private pensions as well as workplace ones

I'd say no, although some savings and investments will be useful when you can afford them. On retirement, you'll have your NHS pensions and state pensions and all being well you won't have a mortgage or any dependants, so your income could be similar to what it is now with much lower outgoings. There might also be scope to downsize to release capital.

Once the nursery fees and mortgage go down, you can look at saving or investing some of the money released. Probably in a mix of cash, shares, maybe premium bonds. Also consider that you might be expected to support your DC through university, so will need money for that.

A lot also depends on your income and whether you expect to stay in the NHS long term, eg are you cleaners or doctors? Also the unexpected such as death or divorce - good reasons to have money you can access just in case.

Okay that's reassuring. I'd like to think that by the time the mortgage is paid off, and we have two lots of workplace pensions and state pensions coming in then that would be enough, although obviously who knows what the cost of living will be then. Maybe rather than pensions I'll focus on some general long-term savings.

If you are in the NHS scheme you do not need another pension

Please ignore the people talking about AE contribution rates and investment lump sums
as they do not apply to your scheme

NHS pension is a good one.

You should get regular updates. Are you in a union? If you are your union will be able to give you specific advise.

Just make sure you continue to pay in and when you reach your 50s look at AVCs.

Your fine for now - unlike a lot of people.

The NHS pension is currently a good one, but it does not mean you are growing your own pension pot so you are dependent on it still being good in the future. For reference DH has been in the NHS for about 30 years and his pension is currently looking at about 50% of his final salary. State pension will not make up the rest of his salary and we paid off the mortgage years ago so will not see a sudden drop in outgoings when he retires.

However, if you haven’t got any spare money right now - which is perfectly understandable - its more of an issue for the future when things get easier.

so you are dependent on it still being good in the future
But pension entitlements accrued are not removed
future entitlements may drop
but DB will ALWAYS be better than DC schemes