Good salary but not much to show for it after years of working

[Notcontent]

I know I am not badly off compared to most people but just feeling a bit sorry for myself. I suspect there are many other women in my position.

I have worked in professional job, earning a good salary for 25 years. I thought I did everything right - bought a flat as soon as I started working, always tried to save a bit. But then in my early 30s I became a lone parent with a baby (not by choice - being left by my exH was a shock) and all those efforts came undone. I was ok financially but my focus was on being able to pay my mortgage and childcare. My career did not progress as I was unable to do the same long hours as my colleagues and I was just managing to juggle a demanding job and being a lone parent with very little support.

And now suddenly I am 50 and worried about my future. I do have a very small house (although still paying the mortgage) but very little private pension ( a laughable amount, as my focus was on my mortgage so I could provide a home for my dc). I suspect I will need to sell my house in the future and find something even smaller in a cheaper area.

I feel annoyed at myself but not sure what I could have done differently (other than not marrying my exH!).

Anyone else in the same position?

You will have a house and a state pension which is about £10k so hopeful enough to pay for what you need.

You can start now putting into a pension from your gross salary. It will grow. It might not be huge but it will be something.

What profession?

Are there any opportunities for you to make a change now to improve your financial position, eg move jobs, lobby for a promotion, get a board seat?

Thanks for the replies. Unfortunately I don’t think I will get the full state pension (as I have not lived in the uk my whole working life). In any case I don’t think £10,000 would be enough to cover all my bills and food. But I will just keep working and hope for the best….

Hi,
I have a colleague who was not able to afford to be in the pension scheme or save anything when her children were young but now she is in the pension scheme, is mortgage free and her kids are adults and she saves hgard, saving over half her wage each month. She would like to retire early (before state pension) so each month she works now and saves over half her wage is a month that she can retire early hopefully.

Will your mortgage finish soon? It sounds like your child is becoming an adult? - are they financially independent or are you supporting them e.g. at uni?

When your financial obligations fall save hard. If you feel at some point you can't keep working full time you might be able to live on part time wages (once you are mortgage free with no dependents) which will mean you can leave your savings or private pension untouched for longer.

You are doing fine. You own a home, you have a secure job and a small amount of pension. Having all that whilst being a single mother is an achievement to be massively proud of, imo.

It's fine to need to downsize when you retire. Most people do. Just start looking for cheaper areas that you could be happy in.

I’m in a similar position, reasonably well paid job and I do 3/4 hours overtime every week to pay for holidays. Single parent who took on a new mortgage at 50 that runs until I am 67. The be relentless of surviving on one salary is exhausting with no chance of reducing hours or early retirement for me. I don’t live in an expensive area so to downsize would mean moving to a less desirable area and why, I worked hard all my adult life having two degrees and occupation specific post grad qualifications.
people with two salaries have absolutely no idea of the stress

If you have a spare room consider renting it out to a midweek lodger. My friend worked away and lodged Mon to Thurs with the same family for about two years, it’s tax free to a certain amount. They don’t need notice and they are at work in the week and just at yours those four evenings. He would turn up Monday evening and then leave Friday morning.

@Notcontent

Are you able to make additional NI Contributions to increase your U.K. State Pension?

www.gov.uk/voluntary-national-insurance-contributions/deadlines
www.gov.uk/voluntary-national-insurance-contributions/deadlines#:~:text=You%20can%20usually%20pay%20voluntary,the%20deadline%20has%20been%20extended.

Also are there any career improvements you can make and earmark for your pension. Are you also able to make additional payments into your company's pension scheme (Additional Voluntary Contributions/AVC) or work a second job and pay that money into a private pension scheme? Also perhaps consider not claiming your UK Pension when you're eligible (Look up "Deferred Pension"). You'll get some interest on deferring drawing down your state pension. It all helps. Maybe look online in www.gov.uk or www.moneyhelper.org.uk. I hope you manage to get things sorted out - you do still have time before you retire. 🌹

How long do you have to go on the mortgage? Have you extended the term?

Surely you've nearly paid it off now and benefited from the rise in the value of your home? Plus your mortgage must be quite small if you bought so long ago?

Plus if you have 'a good professional salary' you must be able to save more now?

Check your state pension forecast, but you might not need to top it up as you only need to make 35 years contribution and you have about 50 years in which to do it.

Then open a private pension and save what you can in that.