Do you worry about retirement? Pension etc

[putchyrsg]

I've never given much thought to the fact that one day I'll be much older and will one day want to retire. I'm 42 now but have been out of work 10 years due to being a SAHP . Before this I only ever had retail jobs with no pension contributions. My DH has always been very well paid but 2 years ago was made redundant and while he got a good job he's had to take a Big pay cut. I feel we are pushing on a bit and because of one thing and another we won't have a particularly good pension ( I won't have anything really) I'm starting to worry that we will both be working until we literally drop, unlike our grandparents who retired young and had/ have wonderful holidays filled lives.

Am I alone ?

Well yes - being blunt you can have your money now or you can have it when you retire. At your age you need to start saving

Get H to use any company contributions and start investing in pension. We started late 30s, H salary has increased so we keep ploughing more and more in.

being blunt you can have your money now or you can have it when you retire

In a nutshell! I've actually chosen the former. I've seen too many friends/family either die around retirement age or suffer ill health. Maybe it's just my circle but I don't know anyone off globe trotting in their late 70's/80's. I'm doing everything I want to do now. I will probably work until at least 67, even if part time (currently PT in my 50s). I have a lot of low cost hobbies, live in London where there's plenty of cheap or free stuff for oldies! I'm not really worried. There are ways I can make extra cash if needed.

I do have a pension as I always worked at least part time. But now I’m in my 50s it’s looking a lot less then I would like to live on so I’m looking at how to boost it.

It’s not too late at 42 to get going OP, you have 25 years of working life left to save into a pension.

At 42 you still have time to build up a pension. Compound interest will still have time to build up. Start a pension now and set up a direct debit, however small. You can always increase it when finances allow.

As they say, the best time to start paying into a pension was 10 years ago. The second best time is today.

Also, are your NI contributions on track so you at least get the full state pension? You can back date them now if not:-

www.moneysavingexpert.com/news/2023/02/martin-lewis-urgent-state-pension-boost/?utm_source=MSE_Newsletter&utm_medium=email&utm_term=28-Feb-23-08f422f27244d4e90a7-63fe739d0fadeddceeaced41fc38f4d2&source=CRM-MSETIP-08f422f27244d4e90a7&utm_campaign=nt-oneliners-one&utm_content=1

Yes make sure you are on track to get the full state pension, or you might find life grim with no pension provision whatsoever.

You can back date them now if not

But only for the next few weeks, then it will be limited to only the past 6 years, so check now.

Find out how much your DH in his schemes, check your own NI contributions.
You need to be proactive.

@Fuwari same here. No point in worrying about retirement if you can’t afford to be fed, warm and houses today. Have seen my pension pts reduced to practically peanuts via various government strategies and retirement being pushed further and further away. Add in bad genetics which mean I will probably die before the current retirement age, or if very lucky a year or two afterwards - I’ll take my chances with saving a bit for the future somewhere I can access it now if I need it, rather than tie it up in a pension which only a pension fund may benefit from.

When I first started work, my mum’s two pieces of advice were, ‘join a union and save into a pension.’ I’ve always done both. At one point childcare and my public sector sector pension savings took up every penny of my wage.

Early investments in a pension plan make a huge difference, and at 42 you’ll need to invest a fair chunk of your wage, but it’s doable.

It’s all very well people advising to enjoy life now, but the reality is that we don’t save nearly enough for old age in this country. And old age will happen for the great majority people, and sooner than we think.

You need to start your own pension ASAP. You don’t want to be reliant on just a state pension. I’ve got a good defined benefit work pension, but I pay extra in to make sure I’ll have a good standard of living when I retire.

My employer is trying to replace our excellent pension with one that's got fewer benefits (cheaper) and we're having an industrial dispute over it. But it made me realise that apart ftom a couple of grand in an easy access savings account I've got bugger all to fall back on, so I've just decided to open an ISA. I'm 45. If'll chuck in whatever I have spare every month.

Hi OP,

I find my colleague quite inspiring where this is concerned.
When her children were young she couldn't afford to save anything and wasn't in the work pension.

Now in her 50s she is in the work pension. Her mortgage is paid off and she saves at least £1000 a month (from an income that will be under £2000).
Each month she works and saves is a month she can retire early give or take.
So say for example she saves £1000 every month from 50 to 60 years old she can retire at 60 if she wants with enough cash to see her until her state pension and delay taking her occupational pension.
She might go part time at 60 to keep working and hang onto her cash.

You are 42 and don't work.
If you start to work you could save most of that money for your (and your husbands retirement) after all you have managed without it so far.

I would join any occupational pension scheme but personally consider carefully before putting all your savings into a private pension as I hear the government might be putting the age up to access private pensions from 55 to 57 years.
If they keep putting it up you might not be able to access it when you want to.
I would save into ISAs.
I save into pensions for my kids (they are only 5 years and 13 years) and I'll probably stop if the age goes up as I was thinking they might like to finish their mortgage with it when they are 55 etc not thinking it will be withheld longer and longer.

I worry a lot. I feel like I did everything 'right' in that I had a pension from 21. I did that half my age thing and that was all great until about 35, when i was forced to be part time.
I get stressed by just how much you need in your pot to live off and cant see how I would ever buikd up more than enough to pay my council tax.

I also get stressed by all the "there wont be a state pension' talk or means testing suggestions as I think there will be loads of people just over thresholds that will be in more poverty than if they hadnt bothered to save and had spent their contribution on a better house or nicer food and healthcare instead. Or stuff like just being a year younger than a friend and you are 8k a year worse off

I hear the government might be putting the age up to access private pensions from 55 to 57 years.
If they keep putting it up you might not be able to access it when you want to.

This isn't a 'might'. It's been done. But it only affects new pensions started after the change, it doesn't change the terms on ones that are already being paid into.

Op, you’re not alone.

I’m mid 30’s and it dawned on me that I also will want to retire… and ‘haven’t pot piss in’ as they say.

I have an LO whom I stay at home for but have realized this IS NOT A SMART PLAN. Anything can happen. My DH is the main breadwinner and if he decides to leave us, I’d be fucked. I mean, I do have parents and they have a business I will inherit one day, but still… seems risky to play off that.

I’ve decided to go back to school and become a highly specialized nurse, so that I am making low $200k a year in 7-9 yrs. It’s not too late for you… 42 is still young! Just look after your health and you’ll hopefully live a long, good life.

If I had any advice to anyone (sorry I know this does not help OP) it is to consistently work and pay into a pension. Don't go part-time, don't take years out - it really is the only way pensions work for average earners. I did this, not because I planned, I just had to keep working. I went part time at 60 - which isn't fantastic but I can do it without worry because my pension compensates for the lost salary. Its dull and boring but it worked for me. Sixty comes sooner than you think.