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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

to think I don't actually need to pay into a pension?

11 replies

1NewMessage · 11/01/2013 14:24

Sorry, it's a boring one!

To cut a long story short I would like to change career, which would mean I would no longer be paying into a company pension (the new career would mean working for myself). My DH thinks this is reckless and I will need the pension.

I am 35 and have paid in the maximum amount I can for the past 10 years. A lot of my peers (that I know) either don't pay into a pension at all or pay the minimum they can get away with.

We have 2 properties which we have been killing ourselves to pay off. I have always thought of these as being an 'investment for retirement' sort of thing. I have more faith in land, bricks and mortar than I do in what seems like a virtual fund sitting in a computer somewhere.

I'm starting to think - and I know it's mostly driven by my desire to change career - that it is pointless saving for retirement because the money will not be useful to us at that point (without wishing to sound morbid, even if I make it that far my DH will likely be gone by then, he is a fair bit older than me) However, it would be useful to us now as it would mean we could be happier. I am sick of having little money, hating my job, never seeing my children, and not really having any hope that it's going to change.

Would it be really reckless to give up a 'total reward package' that includes a company pension in order to be happier? I have always been very cautious but I cannot continue being this unhappy. I would try to pay into a private pension once I established my business.

OP posts:

INeedThatForkOff · 11/01/2013 14:26

I cannot continue being this unhappy.

You've answered your own question. This isn't about the pension.

fedupwithdeployment · 11/01/2013 14:29

I am a risk averse sort of person, and I think pensions are important. The state pension is peanuts, and isn't going to improve. Ever. So the question to ask yourself is whether you will be able to survive on what you have when you retire.

I know a lot of people think that their house(s) will be their retirement fund, but how does that work if eg your older DH gets ill and needs to pay for care...the money in those houses would soon be eaten up. No idea of the legalities of things, but it is something to think about.

Timetoask · 11/01/2013 14:31

I am sick of having little money, hating my job, never seeing my children, and not really having any hope that it's going to change.

You got me at "never seeing my children". Far more important things in life than money.
You are still very young, you have a plan in your mind. I would go for it.

sooperdooper · 11/01/2013 14:32

I prefer to make myself happy now than think about the future too much, I do have a pension but I also changed jobs recently to a place that has a much worse scheme, but on a day to day basis I'm so much happier in my life I don't care tbh

PoppettyPing · 11/01/2013 14:38

Pensions are not necessarily secure. Nothing is. Do whatever makes you happy and healthy NOW. People put too much trust in banks.

BonaDea · 11/01/2013 14:41

As long as you are paying into something and / or doing some retirement planning - and it sounds like you have that via the property - I don't see why a pension of itself is the be all and end all.

That of itself would certainly not make me stay in a job I hate!

And you can always pay into a personal pension and enjoy the tax breaks even if it is not part of a group scheme.

NationalLottie · 11/01/2013 15:55

You might be able to continue paying into you pension even if you move - I did when I left my company to go freelance, as it was a stakeholder pension.
Alternatively you have probably built up a reasonable enough amount to have a break for 12 months while you get yourself into a position to buy a private pension.

HeadFairy · 11/01/2013 15:59

I would try to pay into a private pension once I established my business I think this is your best course of action. Being very risk averse I have had a pension since I was 23 (42 now) but I agree your current happiness is much more important, and if it's a choice between seeing your children more and being happier yourself and taking a break in pension payments for a few years, then I'd definitely take a break from it and when you can start contributing to a scheme again (doesn't have to be a pension, could just be a few ISAs)

BackforGood · 11/01/2013 16:07

I think paying into a pension is important, but not to the extent that it means I wasn't seeing my children and I was unhappy with my life now.
YOu need to think about being happy with life now as well as the future, and find the right balance for you.

Anniegetyourgun · 11/01/2013 16:14

At 35, and with 10 years' worth already in the pot, you can afford to take a bit of a pension holiday, I reckon.

haventgotaclue · 11/01/2013 16:19

You do need to save for retirement, but that doesn't need to be in a pension. It can be other long term savings, property etc.

As you are planning on paying off mortgages on the properties you own, presumably you'll have some rental income from those to help support you?

I would say that future security needs to be balanced with current happiness. But a good pension scheme wouldn't be enough to keep me in a job that was making me miserable. (And I say that as someone who used to work in pensions!).

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