Anyone else with virtually no pension?

[Yogapoga123]

Cheery post for the weekend

I’m 49, and have pretty much zero in my pension pot. Wonderingly if it’s now really too late to start - there seems little point at my age unless you can afford to squirrel away £400+ a moth. Which I can’t!

I’ve never earned enough to put anything significant away. Anyone else in a similar boat?

Er, *month.

I'm also 49 and have no pension. I can't afford to put away £40 a month, let alone £400.

Me!! I’ve checked my NI subs and I’m on track to get the full state pension (if they’re still doing one then 😱), but bugger all otherwise. A couple of years ago on a panic I started a personal Nest pension. And DH has a pension plan. But if we split up or anything, I’m screwed.

My partner is 49 and has nothing. He also does sporadic work and has only worked a few hours a week for the last four years. He doesn't seem overly worried... but it worries me!

Was the Nest thing easy to set up and use, @MacbookHo (LOVE the name, btw)

Nest is SO SO easy, yes, @chickenshedinthesky Even for impatient technophobes like me. :)

I'm 49,self employed with no pension.
I'm overpaying my mortgage to pay that off and then will either have to downsize ( house worth 175k so will have to find a tiny flat) or get a lodger in one day.
Or up my hours.
It's the one thing on my mind every day.

Me neither. I'm 45 and live abroad. Now self employed and don't eran enough to put away for a pension, previously was a TEFL teacher so the same situation and no company pension. I'll get an old age pension here but it won't be much. Will have paid off the mortgage by 65 though so that will help.

1.Have you any debts? Your priority is paying them off. Go through your spending each week with a fine tooth comb. Set a rigid budget after bills for food - stick to it and set a target for saving each week. No self indulgent treating. No expensive holidays, clothes, meals out etc. until you've saved your target each month. If bus fares / travel is expensive walk more and save.

1. It's never too late to save. You need an emergency fund now but even more in retirement. If £20 a month is not doable save £10 or less.

Even £10 a month will be £216 + interest by 67. 3.If you are working part time you should up your hours to full time. This would be my FIRST choice of action. ( Difficult I know, particularly in the present job market.) But, no excuses - I've heard them all." We don't live long in our family so it's not worth my while to save', 'I'd rather spend and enjoy myself now", 'I can't work full time because I like to see my Mum on Tuesdays', 'I like to do the weekly shop on Fridays', 'I like to have more time to myself, ' etc etc.

1. Can you retrain for a better paid job?

The advantage of saving into a pension is the tax relief ie you are actually investing £100 for every £80 you put in. The Government gives the extra £20. The advantage /disadvantage ( depends on how you look at it ) is that it is not easily accessible.

An alternative would be monthly saving into a lowish risk investment ISA. £20 a month used to be the least you could save - maybe more now. £40? The risk of investing monthly is lower than putting in a lump sum because if the market falls you get more units : if the market rises you get the gain.

I've never met anyone who said 'I wish I hadn't saved for my retirement' but loads who wish they'd spent a tenth, no a hundredth, of the time they'd spent planning meals out /holidays/shopping all day at weekends on planning their retirement.

My cousin is 81, lives in US. Spent her youth not working, doing PT bits of jobs , no pensions, generally faffing about - she has just retired. A cautionary tale!
If you don't work and save when young, you work when you are old.

I only recently started paying into one as I was on benefits for a while as a single parent. I don't earn much so don't pay in a massive amount. I doubt I'll have enough to retire on if there is no state pension by the time I get there. I'll be working until I drop!

I own my house and I'm focusing on getting the mortgage paid off at least.

@MacbookHo

Me!! I’ve checked my NI subs and I’m on track to get the full state pension (if they’re still doing one then 😱), but bugger all otherwise. A couple of years ago on a panic I started a personal Nest pension. And DH has a pension plan. But if we split up or anything, I’m screwed.

If you split up you would divide your assets ( house, savings, investments etc.) between you. This might well include a share of his pension fund.

Do you know what your DH has? Find out. The first thing a man does when he's contemplating a split up, is hide away his assets / clear your joint account.

I've only just started seriously paying into one

£200 a month from me £250 a month from my employer.

Late 30s hope it is enough

Set worth starting now - pensions freedoms means it’s like a savings account but with huge tax advantages. You should be able to take anything out when you’re 55 so we’ll worth saving just now

I honestly don't think it's too late. Even small amounts add up over time. I save £2 a week for my youngest sister.

Oh gosh, this is pretty scary. I guess you could work for another 30 years but believe me, you won't want to. What will you live off when you stop work?

Me. I have no pension and very little spare money left over to save at the end of every month.

I have work pension (nhs) but have heard a rumour that by the time its time for me to reach state pension age in just under 40 years those of us who have private/occupational pension won't be able to access the state pension!

I have work pension (nhs) but have heard a rumour that by the time its time for me to reach state pension age in just under 40 years those of us who have private/occupational pension won't be able to access the state pension!

This is already the case in Australia where I am.

I think she knows it’s pretty scary Mrs Brunch .
I’m in a similar position, small bits of pension but it’s a real worry for me. My big regret is not training in something secure and reasonably lucrative - Chose something arty and badly paid 😒

No pension here at 58 as I have never earned enough to save or lock money away (pensions weren't a well known option really when I was a young worker) . Still only just making ends meet. Hoping to supplement the state pension with a lodger or something.

I'm 60 have a tiny pension, about £900 a year (paid twice a year.) That's it, few hundred pounds in savings too. Im up to date with NI contributions and rent a housing association flat. Am single with grown up children. My government pension will kick in in 2026. Hope I can live on it. Im quite frugal but it is a worry

I'm on course for a full state pension, if I continue to contribute for the next 22 years that is.
I pay into a workplace pension, changed jobs recently, but previous one was nest, I started paying about 7/8 years ago maybe when workplace pensions were brought in and you had to opt out, but I've always been on nmw, or just above, and at times a zero hours contract too, so it doesn't have much in it and won't be enough to live on I shouldn't think, though I do wonder if whatever I get from there will be deducted from state pension by the time I'm old enough.

Yes same op.
I agree with pp to open nest or sipp and just start.
Just put the minimum in, your biggest enemy is procrastination. Start.

I've saved all sorts of amounts over the years for various things and sometimes it's been 2 a month for Xmas! It helped.. Once your in the habit however and you file your money into different things... When you get more you don't waste it because x goes there and b there.

I've always worked part time and mine is pitiful.

Full state pension works out at about £760 per month. With no mortgage, no kids to fund, no work clothes, lunches, Commuting costs etc the state pension actually goes quite a long way. You might also get things such as winter fuel payment or a free bus pass etc.

You’ll probably work for almost 20 years yet so plenty of time to invest substantial sums especially with the tax efficient arrangement etc. It should be possible for you to have quite a pot by your late sixties that you can use to top up your state pension.

@Didiusfalco

I think she knows it’s pretty scary Mrs Brunch . I’m in a similar position, small bits of pension but it’s a real worry for me. My big regret is not training in something secure and reasonably lucrative - Chose something arty and badly paid 😒

Ok, so what is the plan B?

Or, what do you expect to live off?