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Original poster

100k pension pot at 42

376 replies

hlu2 · 27/01/2023 10:08

I've finally checked my pension pot and age 42 it's currently 100k. Putting into random calculators, it seems ok at current money but with inflation in 25 years time, it seems tiny. And yes I should have been keeping up with this more, but I didnt start working until I was 30 (postgrad degrees and two pregnancies) so have only had 12 years of working and saving and with two kids and a house - pensions just didnt seem all that relevant until now. How much does everyone else have around this age?

OP posts:
theemmadilemma · 27/01/2023 11:14

47 and 160k.

I did a review 2 years ago, consolidated a few old pots and am working with a pension planner to work hard to bump that up considerably over the next 10 years ideally.

I really didn't plan well enough, I'm simply fortunate that I always joined every jobs pension plan which eventually ended up with a few nice pots of money.

Mia85 · 27/01/2023 11:14

OP there are some helpful pieces of research that look at how much people spend on retirement for different lifestyles and how you get there:

www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/how-much-will-you-need-to-retire-aNmlv7V7sVe9

www.retirementlivingstandards.org.uk

I would start by making sure that you understand as much as possible about your current pensions. Is this pot a work pension? If so, do you know how much your employer is paying in and whether they'll match any additional contributions? Do you know what its invested in and what your charges are?
Do you have any other workplace pensions or similar as well as this pot? If so track them down and get as much information as you can.

Your partner can register here www.uss.co.uk/register-for-my-uss to find out what his USS pension is worth. If he's been earning at that kind of level for 12 years he's probably built up a reasonably annual pension and a small extra pot. USS is not worth anything like what it once was but with a defined benefit pension it is probably worth much more than your pot and he should make sure that he's filled in the forms to nominate your for a survivors pension in the worst case. That said, I would never rely on a partner's pension in planning for myself.

pompomdaisy · 27/01/2023 11:14

You need about 350k for a decent pension monthly payout I think so keep going

Interested in this thread?

Then you might like threads about these subjects:

General money Retirement & pensions
Floofyduffypuddy · 27/01/2023 11:15

@EducatingArti

What did you spend please and you will get about 300 £ a month? Is that correct?

WestendVBroadway · 27/01/2023 11:15

^^boast, not boost!

L0bstersLass · 27/01/2023 11:17

hlu2 · 27/01/2023 11:11

Would a financial adviser be useful at our level? I thought it was mainly for those with large pots of money. In our case, we dont have much money and just have a massive mortgage

They can be useful for financial planning. To help you prioritise and explain the benefits of differing approaches.
Consider paying for one session of advice.

fgswhywouldIdothat · 27/01/2023 11:17

I have just about reached the national median salary aged 47. I have been saving into a pension since 23, with titchy employer contributions. My pot is about £120 000, which might sound like a lot but seems to be buying me an annual income of £4000, assuming it grows well for the next 20 years. Which is shit. Seriously I am thinking why did I bother? No, I can't afford to save more.

Floofyduffypuddy · 27/01/2023 11:21

@fgswhywouldIdothat

That's not too bad. It sounds crap but if it's invested properly it will keep growing and you draw down the capital.

That 300 a month should be supplemented by the state pension, hopefully no mortgage.

It should also be supplemented perhaps by an ISA and sipp...

L0bstersLass · 27/01/2023 11:21

@hlu2 - the limit you can pay into your pension in one financial year is £40k - which includes your employer contributions. Obviously, that's not possible for you now, however bear in mind that once you've paid off your mortgage and you have more disposable income you can actually overpay for 3 years without incurring any tax liability, which is how I've been able to stick 58% of my salary into mine.
I'll need to lower the payments this year as I've come to the end of that 3 year window of opportunity.

Greensleevevssnotnose · 27/01/2023 11:21

I don't know why you are getting so much grief. It's absolutely no where near enough! I have £110k in mine at 52 and my partner has started one this month! My financial advisor says I need at least £1m in various bonds and such which is never going to happen we will be benefit pensioners but it is what it is, we've left it too late to fix it.

theemmadilemma · 27/01/2023 11:22

hlu2 · 27/01/2023 11:11

Would a financial adviser be useful at our level? I thought it was mainly for those with large pots of money. In our case, we dont have much money and just have a massive mortgage

An indepedant one absolutely is, yes.

They are there to assist people like you and me, who know we need a pension and to plan, but above that have no real insight into what the right thing to do is.

They can give you options and work with you. I would 100% advise it. I now have a basic understanding of what I need in my pot for the life I want to live in retirement and what I need to do to get there.

At 47 I'm playing high risk with a large portion of my pension pot, but I have the time to do that.

bedisbest · 27/01/2023 11:22

hlu2 · 27/01/2023 10:20

I earn 60k which the last time i checked is not a massive amount

Actually that is a lot, it’s about double the average household income ( that’s housed, not individual).

its way more than the clear majority of people in this country ever earn.

MrsFrugal · 27/01/2023 11:22

I'm in a very similar situation OP, mortgage is 500k but we are mid 30s, both earn similar to you, overpaying at the moment as we are on a low rate but we max out a LISA in addition to help top up retirement.

xogossipgirlxo · 27/01/2023 11:24

Greensleevevssnotnose · 27/01/2023 11:21

I don't know why you are getting so much grief. It's absolutely no where near enough! I have £110k in mine at 52 and my partner has started one this month! My financial advisor says I need at least £1m in various bonds and such which is never going to happen we will be benefit pensioners but it is what it is, we've left it too late to fix it.

Oh dear god, it's rather depressing prognosis for most of us. OK, if you count in property, you have bigger net value etc., but still... £1m is unachievable for most of us.

PermanentlyinUAT · 27/01/2023 11:26

OP ignore people who are so bitter than they can't understand anyone else in a better financial situation than you who also have financial worries etc.
I remember I once responded to a post about whether people are struggling with the cost of living crisis and the vitriol from some posters because I don't have to concern myself about whether I can afford to put my heating on all day or not! As a PP said, it isn't a race to the bottom. Not every mumsnet is living in poverty.

But I digress. It's not a huge pension, no, but in theory you'll also have a state pension of sorts in addition. Do you own your own home? I'm planning on downsizing when I retire to add some extra funds - would that be an option?

Original poster
hlu2 · 27/01/2023 11:27

Unfortunately, I think we'll still be paying off our mortgage until retirement. We live in London and our mortgage only covers a small house. So we wont be mortgage free anytime soon so it's a balance between paying for the house and paying for our future pension plus having kids

OP posts:
BellePeppa · 27/01/2023 11:27

I had to use my private pension when my ex left and dumped financial stuff he should have dealt with on to me. So I have about £45 left in it but I am mortgage free and will have a modest inheritance and state pension. I will have to live frugally when I’m a ‘pensioner’ but I have very low outgoings nowadays. I don’t lose sleep over it.

Floofyduffypuddy · 27/01/2023 11:27

I think most pensions calculator are depressing.

If you look at the fire movement it has good tips and strategies even if you will never be able to reach, financial independence retirement early.

Greensleevevssnotnose · 27/01/2023 11:27

We rent so no property, it's unrealistic for me, but an 18 year old could do it easy

Moveoverdarlin · 27/01/2023 11:28

42 and zero.

fromdownwest · 27/01/2023 11:29

L0bstersLass · 27/01/2023 11:21

@hlu2 - the limit you can pay into your pension in one financial year is £40k - which includes your employer contributions. Obviously, that's not possible for you now, however bear in mind that once you've paid off your mortgage and you have more disposable income you can actually overpay for 3 years without incurring any tax liability, which is how I've been able to stick 58% of my salary into mine.
I'll need to lower the payments this year as I've come to the end of that 3 year window of opportunity.

That is technically incorrect, one can pay in £40k (plus utilise unused previous years) OR

100% of relevant UK earnings

So if you earn £20k, you can only pay in £20k.

bob1985 · 27/01/2023 11:30

Have a look here op

www.moneyhelper.org.uk/en

Floofyduffypuddy · 27/01/2023 11:30

@hlu2

Do you have DC?

If you don't or plan too ,or anyone else on this thread think about using £100 to open them up a self invest personal pension, a sipp.

Getting it open now , just putting little bits of money in will help to accumulate something when they are older .

They don't have to live In punery now but having it there especially when they start work at 20s... putting 20 in here and there will really pay off in 50 years time!
They won't have our worries.

Stuffin · 27/01/2023 11:31

Big pension pots might be unachievable for many but there are a lot of people not on high salaries that still don't value their pensions. All too often you see posts asking whether they should stop a DB (average salary) pension like the NHS one without an understanding of how valuable that it. And smaller DC pots can help bridge that gap when older and faced with not being able to work until the state pension kicks in. I am also amazed that those with DC still think only in annuity terms rather than looking at all the options like drawdown. So yes pots big and small are still valuable and we should talk about what they can provide.

fromdownwest · 27/01/2023 11:32

Floofyduffypuddy · 27/01/2023 11:30

@hlu2

Do you have DC?

If you don't or plan too ,or anyone else on this thread think about using £100 to open them up a self invest personal pension, a sipp.

Getting it open now , just putting little bits of money in will help to accumulate something when they are older .

They don't have to live In punery now but having it there especially when they start work at 20s... putting 20 in here and there will really pay off in 50 years time!
They won't have our worries.

Read the room, the OP has stated that they have a pension pot that would provide next to zero income per year. I am not sure how paying her childs pension is her financial planning priority.

When parents max out ISA's, pensions then they should consider gifting to children.