Savings

[Nicetobenice67]

Just curious are ppl able to save I’ve twelve thousand in the bank I’m single and 57 most of my friends live month to month

I save, but I'm pretty financially savvy and didn't borrow for anything other than my mortgage (now paid off) going without or buying second hand. I'm pretty unusual as friends have "nicer" stuff, bigger homes, new car on lease yet no significant savings at 50. This isn't about those on very low incomes these are all earn above average wages and live in areas where that income can afford a good lifestyle without borrowing, it's about choices eg changing sofa every 3 years or holidays that cost ££ twice a year.

As advised the other day, it's definitely worth opting back in to your employers scheme.

Basically saving is a choice not everyone makes, even when they can! I don't judge others but won't have much sympathy when they moan about still working and I've retired!

I need professional advice as to how much ect what I put in and get out but I guess it’s never to late to start I just have to get thing right in my head advice ect just the way I am got e few weeks off soon so will get that advice and get things moving before I get used to the extra money from paying off mortgage

It’s just curiosity because of the present climate we are living in and hearing different people’s situations you really don’t need to answer the way you did

Answer the way I did? 🤷🏻‍♀️ You’re clearly over sensitive.

The word surely I found a little patronising maybe I am over sensitive as I suffer G.A.D. Maybe that’s why you have that opinion

What kind of scheme is your employers pension, defined benefit or contribution? Are you a higher rate tax payer? This will influence advice given to you on here or by a professional.

I am a similar age to you and have a decent pension and savings and have already retired early and drew my pension at 55.

Yes, possibly your anxiety makes you think the worst of people. All I can say is that my post wasn’t meant the way you have taken it. 💐

It seems your thread was started because you have concerns about lack of pension as you head into older age rather than your original question. The best thing you can do is get some sound financial advice which you plan on doing. Good luck.

Well done …no I’m on minimum wage I work 50hrs a week the the basic government pension scheme is the one I’m talking about..>thanks for taking the time to reply

I hear you OP. I understand what you are asking and some replies have been very curt. I was in a similar position and I eventually took financial advice. I had put it off as thought it would cost me. It didn't cost anything and my adviser took into account my family circumstances, my equity in the house, the small private pension I have saved and when the state pension kicks in (I'm fully paid up with my state contributions). It was a massive relief. I'm self employed on a low income, but have saved small amounts via the Chip app where I can. It really helps that the savings are 'peeled off' every few days without me having to do anything. I also knew what kind of lifestyle a wanted, which is relatively low cost. My main issue was not having to sell my house in order to live, which was looking likely. I don't want to retire, just work part time. And I don't want to travel/have expensive holidays abroad. I want to have enough to live comfortably with a bit extra to take my kids out and afford my pets. I have decided I want to be comfortable now-as by 67 I may not have my health. I lost my best friend to cancer early 50's and know of so many other people who have lost their lives way before retirement, which influenced my decision. I'm single, and plan on being so for my remaining days.

I didn’t start that minutes ago it was an hour ago and there really is no need for this leave me alone please

Thank you for your reply I will get advice and get my pension sorted

Thank you!yes maybe it’s not worded right in the title maybe it is I’m interested to know how other ppl manage ect because like I said the present climate we are living in everything is so expensive thanks for your reply appreciate it

I came out of my NHS pension in my 20's as it was taking so much a month and I couldn't survive. Any overtime I did basically just went into my pension which felt like a waste of time for me when i was working my ass off for nothing. I was a band 2 at the time, which was just over minimum wage (band 2 is about to become actual minimum wage for anyone who's interested). So I understand why you would need to do the same OP and I don't judge you for it at all. But I am 20 years younger than you and I opted back in once I hit 30 so I had enough time to work up a good pot. I don't retire for another 30 years.
I'm not always able to save much every month still. I wait till payday then transfers any left form the month into my lifetime ISA. Sometimes it's over £100, sometimes it's nothing. I have £5k in the ISA now and have just paid off my credit card too, so i'm also debt free now and it feels good.
I think it's great that you are mortgage free and have that £12k in your savings account. Many people aren't even as fortunate as that, you just won't hear them on MN. I echo others, seek some financial advice about your pension. And in the mean time carry on saving what you can, when you can.

You can go on to government gateway and make an account or ring up the pensions helpline if you prefer. They will be able to tell you how many years of NI contributions you have. You need 35 years for a full state pension. If you have gaps from having your children and claimed child benefit in your name when your children were young you will have been credited with NI contributions. Those contributions can cover up to 12 years. You can also pay extra in to cover missing years, though legislation has changed currently.

We do have a decent income but due to our knowledge and investing we are far better off than people would expect. This we keep to ourselves. I would advise you to not let people know you have paid off your mortgage. This indicates you have spare money and it’s always best to not let people know that. Because they may then ask to borrow money or have an expectation that you will always pay for coffee or treats when out and about.

Thank you so much

Thank you I have full NI contribution so that’s ok ..will take what you have said on board I do have good friends they never ask to borrow although if I could I would help anyone

@Nicetobenice67 Just to reiterate what other have said. Please check on your qualifying years for national state pension. If you haven't got much in your work pension, then you will need to rely more on the state pension . So, making sure you have a fill 35 years of qualifying years is important. However, you also need to think if you could realistically work until 67 y/o. If you can, then one thing less to worry.
Next, you need to look at your annual bill now and take out work related expenses. Then, multiply this by 1.25. This number is just rough approximation of an increase in your bills due to inflation (2.5% per year). You can make it higher if you want. Then, compare this annual bill with the current state pension. If there is any gap between the two, then your work pensionor saving can be used to fill in the gap. You can use drawdown calculator or annuities calculator to figure out the total amount you need to fill the gap. Then work your way back to figure out how much you need to contribute/save monthly.

In addition to defined contribution, I also save in ISA (shares and stocks) so I will use them to supplement my pension without getting taxed. If you withdraw from your pension fund, your withdrawal is considered as an income and will be taxed. However, you get exempted from NI and tax contribution. So, swing about really.

@Marmut can you still top it up if it's less than 35 years NI? I remember my father doing that for my mother.

@Nicetobenice67 you should be fine, good luck with opting back in.

Don’t help anyone, I mean that because you are alone and have no back up financially. So many people never repay money they have borrowed. I have never lent money nor asked for a loan, it’s life advice my Mother gave me.

Your username is nice to be nice and you also have some MH difficulties you are exactly the kind of person people will take advantage of. One of my sisters has some MH issues, I’m one of 5 girls. She has been taken advantage of so many times financially and especially by men. She is almost too good for this world.

Awww thanks for your advice I will take that on board x

The advantage of the workplace pension is your employer has to pay in too, so you get extra money for nothing :) as well as the tax benefits. Someone may have signposted similar on your other thread, but this will give you an idea of how much you would pay in from your earnings and how much extra your employer would have to pay in. You'd need to see what your specific contract says re percentages, but the basic is 5% employee, 3% employer I believe

https://www.moneyhelper.org.uk/en/pensions-and-retirement/auto-enrolment/use-our-workplace-pension-calculator

I have GAD and have help with that I’m quite strong and don’t feel like I would let anyone take advantage of me but I understand what you are saying I’m not vulnerable in any other way just my anxiety