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?

@TheHoneyBadger I really didn’t find it that hard to get started with a SIPP and I knew next to nothing when I started. I just keep mine really simple and invest in the Vanguard Life Strategy funds. All you have to do is choose which level of risk you’re happy with, then start buying. The value of your SIPP bumps up and down (though mostly up) and you get a feel for how much you’re ok with all the variation. If it feels too risky you can swap it for a lower level of risk, and if you reckon you’re prepared to go a bit higher you can swap it for that. Knowing that there’s an extra 25% which you would never have had in your pocket anyway helps to cope with any dips while you get used to the feel of investing.

Another thing about NI that still annoys me is that if you went to a Polytechnic in the 80s you did not get your NI paid for, however you did if you went to a University. It's too late to make up for that as well.

This is my biggest worry, I usually avoid these threads as people start saying how they have 250k etc in a pension and it horrifies me.
I'm 46, single, private rent and had no pension until it became law, I never earned enough to afford it and was also made bankrupt ten years ago. While I now earn a good salary my rent is also high, I have about 1k in savings and thanks to lockdown which I spent at my mum's I've been able to pay more in my work pension than normal. I pay in as much as possible and live as frugally as I can to support paying into my pension.
My mum owns her house but is housebound with multiple conditions, I could inherit the house in theory but it's highly likely she will need to go into a home at some point which obviously I want what's best for her.
I worry massively about my future, how will I afford to rent anywhere let alone eat.

I'm 64 and never managed to save into a private pension due to a low income. I'm lucky that my DH was able to claim pension credit five years ago for us both as a couple so I was able to retire at 59. It's not a large amount but we are able to manage on it as we own our home outright, we can get a full council tax reduction, we usually use our Freedom Passes for travel (but not recently due to Covid) and we also get PIP and carers allowance to top up our income. Plus extra bits at certain times of year, like Winter Fuel Allowance, Warm Homes Grant, help with water bills. Our DCs have done well in life and kindly help us out with things like upgrading our gadgets and paying for holidays.

DH claims a partial State Pension due to working part time for some of his working life. I am due to get a full state pension in a couple of years but we will still be eligible for Pension Credit since DH doesn't have a full State Pension. Overall, since we had low paid/part time jobs before retiring, our disposable joint income is slightly better than when we were working. We were always used to being frugal so we know how to shop for bargains and budget well. So I guess what I am saying is that there are still options available even if you haven't been able to save, the government are not allowing elderly people to starve on the streets.

It’s never too late to start, OP. Never.

I’m 49 too. We won’t get our state pensions until we are 67. As a PP notes, you can save a lot in 18 years. Even if it’s just £20 a week, it adds up, particularly with tax relief.

I’m with @BobbingPuffins when it comes to SIPPs. I have one and it is really easy to use. You don’t need to be a high net worth, sophisticated investor; it’s not much more complicated than online banking. It’s good fun choosing investments and seeing how they perform, and you don’t have to choose single shares or risky stuff. I also like the Vanguard funds mentioned upthread: they spread the risk really effectively and the charges are cheap.

Make setting one up your Christmas present to yourself. Peace of mind and goodwill to all women!

Why should anyone who works and pays in to the system for 35+ years live in poverty in old age?

But that's what happens now - £760 a month, think about it.

@soundsoloud

I'm 64 and never managed to save into a private pension due to a low income. I'm lucky that my DH was able to claim pension credit five years ago for us both as a couple so I was able to retire at 59. It's not a large amount but we are able to manage on it as we own our home outright, we can get a full council tax reduction, we usually use our Freedom Passes for travel (but not recently due to Covid) and we also get PIP and carers allowance to top up our income. Plus extra bits at certain times of year, like Winter Fuel Allowance, Warm Homes Grant, help with water bills. Our DCs have done well in life and kindly help us out with things like upgrading our gadgets and paying for holidays.

DH claims a partial State Pension due to working part time for some of his working life. I am due to get a full state pension in a couple of years but we will still be eligible for Pension Credit since DH doesn't have a full State Pension. Overall, since we had low paid/part time jobs before retiring, our disposable joint income is slightly better than when we were working. We were always used to being frugal so we know how to shop for bargains and budget well. So I guess what I am saying is that there are still options available even if you haven't been able to save, the government are not allowing elderly people to starve on the streets.

Your income is decent because you get PIP and carers allowance though which will give you bigger reductions on your council tax and more pension credit than someone without a disability. People without a disability benefit in place would get nowhere near as much . Mixed age couples ( where one is pension aged and one below pension age ) now can no longer claim pension credit they have to claim Universal credit instead which is generally less and forces the one below pension age to keep looking for work until they reach pension age. Things are a lot worse for people now than they were a few years ago as in your situation where you could claim pension credit.

@JoJoSM2

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.

Just working through the thread now, @JoJoSM2 - where did you get your monthly figure from? I make it £580 per month?

I also don't agree that goes very far at all with council tax, utilities, phone, internet etc.

I give 2 bits of advice to all young women I know and/or come to meet. Always keep earning and pay as much as you can, as soon as you can into a pension.

My DH and I started pensions for our 2 DC 3 years ago. Stakeholder pensions with Standard Life we pay £20 per month each. We wanted to do this as money locked away until their older, they get £5 top up every month and sentimentally I want them to know when they are older that we loved them for every day of their lives.

OP you could work for another 20 years so start saving now. Look up stakeholder pensions or add to your work one.

Also see if you can get into a job that you'd be able to (and happy to) continue working in part time past retirement age.

I too am wondering where the £780 is coming from? I got my state pension forecast recently and it was around £140 per week.

The full state pension is £175.20 per week.

So 175.20 x 52 = 9110.40

9110.40 /12 = 759.20

If your prediction was for less than the full amount you obviously haven't qualified for the full state pension.

You need 35 years of qualifying NI contributions to get the full state pension.

www.gov.uk/new-state-pension/what-youll-get

I'm 47, I've got nothing, and haven't even paid enough N.I. to get a full state pension. However, I was diagnosed with metastatic breast cancer two years ago, so I think I'll have the last laugh- BACK OF THE NET!

@BitOfFun

I'm 47, I've got nothing, and haven't even paid enough N.I. to get a full state pension. However, I was diagnosed with metastatic breast cancer two years ago, so I think I'll have the last laugh- BACK OF THE NET!

@BitOfFun - I'm really sorry to hear this 😢

@BitOfFun

I'm 47, I've got nothing, and haven't even paid enough N.I. to get a full state pension. However, I was diagnosed with metastatic breast cancer two years ago, so I think I'll have the last laugh- BACK OF THE NET!

😔

@BitOfFun have you had some advice about the money you are entitled to?

Sorry to read your news. I wish you all the best.

Thanks for the good wishes. I don't want to derail the thread though- it's just the joke I make whenever somebody mentions pensions. Dark humour helps sometimes in my situation! Please carry on: it's an important topic for women especially.

I really don't understand pensions. Ive got a tiny pension which I receive twice a year. Its just under £900 per year. My official retirement date is April 2026 I think. Im assuming its too late to pay into one now?
Think I'm stuffed!

I probably have a few grand spread over several pensions I've had from working over the years. I don't have a clue how to amalgamate them all tbh. My goal at the moment is to buy a house, I've been squirrelling away for 7 years now and should have enough for a deposit on a tiny house next year. After that my focus will be on savings and pension. I'm 32 so still have nearly 40 years to work on it. I also don't might working whilst I'm in my 70s, as long as it's very part time and stress free work.

@BitOfFun

Thanks for the good wishes. I don't want to derail the thread though- it's just the joke I make whenever somebody mentions pensions. Dark humour helps sometimes in my situation! Please carry on: it's an important topic for women especially.

The awful thing is I’m planning a similar way out. I’m purposely leaving something that I know has the potential to become life threatening over time, because I don’t want to be here when I’m elderly. Can’t afford to be! Its terrible really .

@DianaT1969

We're not being glib about the future being one of no state pension or means tested one because the Government are already working on it sicne all the reports in financial times etc. have been saying state pensions from 2036 are not going to be sustainable

The new auto enrollment pension was to get lots of workers in pension to start saving up 'privately' meaning they can phase state pension out for many by making it means tested.

It is incredibly important people right now who have 20yrs + until retirement to be wise enough to protect themselves finacially in retirement and not expect to rely on the state. If when it comes to retirement there is still a state pension - excellent you'll be better off.

What type of retirement do you want? one where your watching the pennies or one of freedom

I choose freedom

@justanotherneighinparadise that is awful to hear and really is not the solution. Please go to a doctor.

@BitOfFun

I'm 47, I've got nothing, and haven't even paid enough N.I. to get a full state pension. However, I was diagnosed with metastatic breast cancer two years ago, so I think I'll have the last laugh- BACK OF THE NET!

I am so sorry to hear this too.

Those that have little pots spread over the place might want to look into moving them into a provider such as Pensions Bee

Yes, but I'm "only" in my mid 30s. My workplace pot is about a grand IIRC, it needs to grow a lot.

And I do sometimes think there could well be a hyperinflation or a punitive tax that would strip all our savings and pensions anyway.