So now all I need to do is save up 300K--is this for real?

[Coffeetree]

An article from This Is Money showed up on my feed this morning. Basically someone with £290K in pension pots at 50 years old, asking whether they're on the right track for retirement. The rest of the article was various investment advice. Generally the advice was "You're nearly there."

I read these articles and I feel like someone is playing a joke on me. I usually feel very very privileged in that, at 52, I have a mortgage that I'll hopefully be able to pay off in 4 years, plus about £50K in pensions. No inheritances on the horizon. I've worked in charities my whole life, then became single about five years ago, hence not much saved.

So, after paying off my mortgage, I then need to buckle down and save up 300K? That's not going to happen. My plan is to keep working and then go part-time or contract when I reach retirement age.

Am I the only one who thinks these "retirement advice" articles are really out-of-touch?

and for those saying oh I don’t understand my pension then do something to understand it, ask someone, ask your boss , google.

Or just starts by engaging in MN threads discussing pensions? “Asking” suggests you know what question to ask. Engaging in a conversation is a great first step. How many people do you think have seen the OP and clicked off because they don’t want to engage? The people that are here are here because they want to learn more. No need to get snippy.

Do you mean a civil service pension? How much will your actual yearly pension be?

I don't want to be rude but what would the advice be?

If you haven't got much money there's not a lot you can do. My mum is in a slightly worse positon than you, no savings or private pension at all (but she is mortgage free) there's no advice that can sort that she'll just need to hope benefits and pension credit hold up then do an equity release scheme if she needs more 🤷🏻‍♀️

I'm fairly lucky to have 11 years service in a role where I had a DB pension (amounts to around £9k a year) and have built up a pot in a DC scheme in the 12 years since. I'm 45 and it's only been in recent years that I've fully educated myself on the tax benefits of pensions and now I salary sacrifice a pretty big amount from my monthly salary. I could have contributed more in years past if I wanted but prioritised other things. But feel like DH and I are now on track for a reasonable retirement by around 65 after a proper over-haul of what we contribute. Education is key and that's something people do need to take personal responsibility for.

This - even if she’s on minimum wage, she should be putting £30-50 towards her pension (10-15%)

had no where near that maybe 100k we didn't invest it took the lot as a lump sum paid tax but got it back the following year we are taking it out bank locking in a safe then no government or care home needs to know what we have

Thanks all good points to check and clarify,

I think that it’s important to inform young people but also be realistic about working life for most twenty somethings. It took me two degrees and a load of part time and unstable fixed term contracts until I was nearly 30 to establish my career. I needed to keep savings accessible for the times my contract ended and/or I needed to move house or city for work or due to private renting (eg housemates move out). Not to mention student loans.
It really isn’t that easy to just start a decent pension contribution at age 18.

Yep. Depressing as hell.

Op I'm sure it's been said but your 50 grand shoud be 200 by 70 years.

People, open sipp for your children, self invested perosnal pensions.
100 to open generally but getting one open is the biggest challenge. Once it's there they can't touch it until retirement and encourage them to put tiny amount in as they work. Teeny bit of any bday, Xmas money.

We are in late 40s just taken new mortgage, one pension that only began last year, no savings and no inheritance expected (nor would I rely on one!)
We are screwed and will work until we drop I think.
Mostly it doesn't worry me but occasionally I have a very panicky moment!
All due to sheer ignorance and perhaps lack of good advice when younger and a couple of bad choices along the way.
My kids will be starting pension pots the second they are able.

I don't want to be rude but I've already received really helpful advice on this thread about prioritising my pension over mortgage repayment.

I am 34 and assume by the time I am pension age (which for me is likely to be well into my 70s I suspect), the world will be pretty much knackered anyway so I can't really get worked up about it.

I wish someone at school or college had explained things like pensions to me. We weren't told about graduate schemes.

I would have worked in the public service if I had understood.

I'm playing catch-up now but also doubt I'll get near the recommended levels.

Thank you for starting this thread. I’ve been putting £125 a month away for just a few years and topped it up when ever I could. Surprisingly I now have £20,000 in an SIPP and LISA. I also have £33,000 in an old workplace pension.

Im 40 next year and need to save around £926 per month to achieve a pension pot I’d be happy with. My husbands salary pays for day to day cost and starting next year I’ll be in charge of school fees and my pension. This means when I returned to work after my LO starts school I only need to earn after deductions £2500.

We recently had my husbands pension statement and did feel worried. My parents didn’t save any additional money for their pensions so this is new to me and todays advice and my subsequent calculations have relived a significant worry.

£10pcm with 4% interest (compounded) is about £30k. It's good, but realistically, it's about 10% of what they currently need, and will be of a smaller value in 50-60 years time.

There is also a problem for women on low incomes who forgo pension share for equity when they divorce. This is usually in an effort to stay on the housing ladder or in the family home.

They can often be trapped into this decision because it’s the only way they can get a mortgage. Otherwise they would be renting. Any capital share would erode in rent and interfere with entitlement to UC.

Divorcing men tend to defend their pension to the death. If they have a big enough income and a bit of equity they will get back in the property ladder and have a retirement vehicle.

A lot of women don’t think through the implications of career and income sacrifice. All too often it is a simple equation about the cost of childcare v salary. A lot of men don’t accept that if they want a SAHP then they need to cover two pensions.

Surely though it has to be the least secure job out there? Every 5 years you have to be re elected. I wonder how many politicians get to clock up 20 years service.

Too many people don't take pensions seriously enough when they are younger. I've statred pensions for my kids and they all have around 60k in each and I've about 500k in mine. I'm 48 so it should be around 600k when I retire at 55. There's not much to be done if you haven't started soon enough really, hence the lack of advice.

@LemonTT I agree; we hear it time and time again on MN - 'it's not worth me working because of childcare costs.'

Working is not just about the money in your pocket in the here and now. It's about investing in the future too. I stayed in work even when childcare costs were the equivalent of my take home pay, precisely because of the long term benefits

Yes but some people just can't afford it unfortunately. As a lone parent I can barely afford to pay into my own pension (although I do but it's not much) let alone start one for DS.

There are several MPs who've been in house of commons for 20 plus years.

But yes....it is an insecure job so call it £10K index linked pension after 5 years. An extremely good deal which virtually nobody else will get.

And don't get me started on the severance deal they get if they are voted out....

EDIT: Actually £10K per year is pretty close to the pension you'd get with a £300k pot!

I have a private pension but can only seem to see what I'll be entitled to not what I currently have in the pot / what I'll have when I retire. Should I be able to see this somewhere?

how come? how much did you have? were your pots all in high risk funds?