Is anyone going to be living just on state pension when they retire?

[Shinyseas]

It looks like I will be. Never really earned enough to put money aside for a pension, married someone who was terrible with money and at the age of 51, have youngish DC so even though I’m earning better money now, I’ve got to get them through teenage years, then off to Uni. All feels too late to save anything decent. I’ll be early 60s before my youngest leaves home.

When I checked this week, my private pension is set to give me 1.5k a year 🙁

People do survive on the state pension I know - but it must be very very tight.

The thing with having a small pension is you are probably better with no private pension…that way you can at least claim pension credit….council tax benefit and housing benefit….maybe get some advice

Yes me. I do pay into a private pension but it won't be giving me much I don't think. Also don't own a property so god knows where I will live on the minimal funds I will be getting. It keeps me awake at night occasionally worrying about it but I haven't come up with a solution yet.

I understand just over half of OAPs are actually in receipt of means tested benefits to top it up to around £185 per week which is the new full contributions related ( not means tested)state pension. Not everyone has made enough contributions to qualify for the full state pension. What kitcat 15 says about the problem of small private pensions is horribly true. If you're not on means tested benefits you lose out on a lot of additional cash and service benefits.

me probably! Always dream that I could rent my house out to earn some money while I backpack around cheaper countries (maybe live in a beach hut on a beach in Goa for a year then move on somewhere else 🙈) I just try not worry too much

There's going to be millions living on it in a few years. People in their 30s or 40s now that are barely affording to survive are unlikely to be planning private pensions etc.

I’d like to be more relaxed about it but it keeps me awake at night, worrying how I’ll live and support myself. I’ve always worked, and would love to be looking forward to some sort of retirement but actually it’s a huge source of anxiety for me. When friends talk about retiring I really struggle - I imagine I’ll have to move and will be hiding away, living on the breadline, trying to do something part time while they’re all off travelling somewhere 😓

I though that if you got the full state pension then you were above the threshold for pension credit? Am a bit hazy on that so may well be wrong.

My mum lives on it. Her bills are only £200 a month so that helps, but she can't afford much in the way of holidays etc. If she gets ill or frail she'll be able to claim attendance allowance of a few extra hundred a month. Before that it's probably best to keep working if you can, even part time.

OP have your checked your state pension forecast and are you due to get the full amount?

Is the £1.5k a year from the private pension what you have already built up from your contributions to date? Are you still paying in?

At 51, you have time to save though. I know you said money is tight, but I would honestly prioritise putting something extra into your pension.

If you own your home & will be mortgage free by retirement that’s a good position to be in, but living off state pension only will be a pretty miserable existence.

Yes, that’s what I’ve built up so far. I can continue to put into it but I have so little spare a month - think £100 or so - it hardly seems worth it. I’ve checked over and over but my finances are unlikely to change much in the next few years. My outgoings are high.

At 51 you still have time to start a private pension. I appreciate you said it feels like you can’t afford to put anything aside but I would work on the principal that something is better than nothing. You say you’re earning better money now. So could you put aside anything? You’ve 10-15 years of working still?

£100 a month is better than nothing. In a year you’ve put away £1200.

My MIL has no savings or private pension. She gets £187 per week, plus housing benefit, council tax reduction, and all the little things like free travel and prescriptions etc. It's not a fortune, but nor is she in poverty. No idea whether that's going to be comparable in 15 years though.

Can I ask what the position would be state pension/ benefit wise if you own your home out right or still have a small mortgage left on your property and minimal savings say around £5k what could you hypothetically claim then?

I meant to add and no significant personal pension?

Is there any way you can save for a nest egg?

This compound interest calculator is good to see what different savings amount could achieve. www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Are you working op? You should be getting employer’s contributions too if so plus tax relief.

Yes this is true. Anyone getting the new state pension is above the threshold for pension credit unless you are disabled which would increase the threshold for getting it. I guess some people will not have enough years of contributions for new state pension so may get some pension credit but also depends on things like savings etc.

If you own your own home then obviously you won't need help with mortgage. If you have a mortgage to pay there would be no help with that unless you want to claim help with mortgage interest support but I'm not sure of the criteria for claiming that post state pension age and even then it is a loan. If state pension is not a full state pension then you claim pension credit to top your income up to the amount that the government sets as the minimum you need to live off.

There will e many more joining us op, as the rising cost of living bites. There are posters in other threads that have decided to give up their pension contributions in favour of being able to get to work or eat now.

My advice is something is better than nothing. No matter how little you put away each month It will always put you in a better position and even if that's not by much at least its something.

I will have enough contributions for full state pension and also a small NHS pension but it won't be much as I have had a few gaps, been part time for years ( 4 kids), lived abroad for four years. I guess my main plan would be to downsize at retirement age and use some of that to fund retirement and also try to save as much as I can between now and retirement but that could be tricky with 2 kids still to get through Uni.

I will have a full state pension, a small Civil Service pension & my PIP, I will actually be better off than I am now.