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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To not be bothered about my pension?

51 replies

mytartanscarf · 15/02/2015 11:11

I paid in for ten years and now I'm taking some "time out" to "find myself." I know that is an extremely poncey statement!

I think my mum and dads influence is leaning very heavily on me because they were very concerned with pensions and used to regularly tell me to pay extras in so I could retire early.

So - aibu for not being bothered just at the moment (am 32?)

OP posts:

SomewhereIBelong · 15/02/2015 11:19

Continually paying into my own pension and investments - from leaving school at 16 - has meant I can retire at 55 (am 50 now) - otherwise I would have to wait for my state pension at 67. Paying in earlier rather than later in life makes the biggest difference.

So no you are not BU for not being bothered, but neither should you expect that it will have little effect on future plans.

HowCanIMissYouIfYouWontGoAway · 15/02/2015 11:23

Not at all. It's up to you. As long as you have enough to support yourself during what will probably be 30 odd years of retirement and bugger all state pension and don't complain when you're 80 that you have nothing.

Tough times are coming. I am shit scared and squirrelling away everything I can and I'm only 41

If you're 32 and you've already got yourself sorted out then bloody good for you and you deserve a break to "find yourself" no matter how poncy it is and I am

Bowlersarm · 15/02/2015 11:26

I think YABU. At your age thinking about pensions etc shouldn't be all consuming, but the years fly by, you'll be retired in no time, and you won't be thanking your younger self for not taking care of your older self.

valrhona · 15/02/2015 11:28

If I continue as I am, I will get a smallish pension from work, and the state pension whatever that will be then. The mortgage will be paid off, my eldest will be older than OP is now. God I don't want to work til I'm that old!! I need to start thinking a bit more about all this! Thank you OP!

museumum · 15/02/2015 11:33

I've got a private pension as s-e. I don't think I'd ever stop paying in entirely but I think it's perfectly reasonable to reduce payments to a bare minimum for a year or two if you are taking time out of paid employment.

My wonderful fabulous amazing aunt and uncle who I loved dearly were in the height of good health till they hit 60 when one got a blood cancer, suffered for a few years and died, the other never recovered and was dead three years after. I am very thankful that they lived wonderful lives up till then. I dread to think how sad it would have been if they'd put their life on hold till retirement.
So I would always advise caution and saving and sensible financial planning but do not let that stop you living now.

Original poster

mytartanscarf · 15/02/2015 11:43

Well, I daresay I will go back to my job at some point (possibly around 2016/17/18 - not decided yet) and then pension contributions will start again. I just mean I'm not worried about not contributing for the two/three years or so I am NOT working if you see what I mean.

It's highly unlikely I'll have 30 years of retirement! I'd be nearly 200!

OP posts:

Fluffy40 · 15/02/2015 11:52

If you get behind on pension payments you can usually pay extra later on.

Don't worry , take a year off , but not any longer .

Original poster

mytartanscarf · 15/02/2015 11:55

It's more like 2/3 years and to be honest I think there are probably things i'd rather spend the money on than pensions.

I guess I am just wondering as my dad would go on and on about it and I was always taught never to have a break from work or if I did to pay more into my pension and I just can't get too fussed about it.

OP posts:

OhFlippityBolax · 15/02/2015 11:55

I'm the same age as you OP and have been paying into a pension since I was 18 and got my first job. I did it so I could take time out for children and not have to worry about topping up later.

Sadly the number of children I had planned for hasn't happened so I may do as you are doing and take a career break instead.

HermioneWeasley · 15/02/2015 11:57

Well, your contributions are "worth" more the younger you are when you make them, so it might take 6 years worth to catch up on not paying for 2/3 years.

Original poster

mytartanscarf · 15/02/2015 12:04

Well yes but if I don't see the need to catch up that isn't an issue is it? I suppose I am just thinking that I taught full time for 10 years coming straight out of university - many people go to teaching later, aged 27/28/29? So it's only really the same?

Sorry to hear that flipparty

OP posts:

SomewhereIBelong · 15/02/2015 13:11

Well yes but if I don't see the need to catch up - that is fine, but you will have to work longer and/or get less.

no use putting your head in the sand - it is the same as SOME other people yes, like many people who start work later and don't bother pension planning - otherwise known as planning for your OWN future - theirs will be a less comfortable future than those who do take it seriously...

Do you want to be on the same crappy money per month as those who came to teaching later, do you want to work until you are 70, or do you want to be on your own planned and budgeted pension from an age you have calculated to be affordable. I want to be better off than most, not penny pinching.

Arsenic · 15/02/2015 13:19

2/3 year break isn't huge. I wouldn't get too worked up. Catch up with additional contributions, if you can, though. You don't know what might happen later.

Original poster

mytartanscarf · 15/02/2015 13:35

Somewhere - I'm not sure. I don't think 3 years out means I'll be on crappy money though.

Both my mum and dad were v young when they died - still in their 50s. To be honest I can't see me living to 70. Or not long after if I do and I really don't want to put money into a pension I doubt I'll live long enough to see!

Of course I don't mean I'll conpletely ignore my future but what I mean is, right now, I'm more concerned with the present.

OP posts:

Postchildrenpregranny · 15/02/2015 13:47

Depends what sort of lifestyle you want in retirement . As soon as we could afford it, DH and I both paid AVCs (additional voluntary contributions) to pension-we were about 55.He had an 8 yr period of intermittent work with an Equitable Life (laughs bitterly) pension into which he paid as and when. I took some-not a lot-of time out to SAHM . It's also tax efficient .
I have already retired (aged 60)on a pension which, together with my state Pension, comfortably supports both of us, at least day -to-day (holidays come out of savings). He will claim his in another year , when we will have almost as much disposable income as when we were working . We are still quite fit , and hope to remain so, andenjoy being able to 'help' our children,eat out, go to concerts , nice holidays etc and have far more time for it than when working .
Some people prefer to live for the day . I was never one of them .
But I can't imagine how people live on the state pension and not much else . Yes you might die young, but then again you might not. And a decent pension would go a long way to paying residential home fees without eroding any savings/ house value .
Trouble is, these decisions have far reaching consequences . I read in an article the other day that a 30 yr old should be putting 12% ( some of it paid by employer) into a pension plan to retire on an income which would reflect their current salary/ lifestyle (I've sent it to my DDS).

Original poster

mytartanscarf · 15/02/2015 13:51

Yes it was AVCs my Dad was always on about.

It isn't so much living for the moment (as I have said I will have a teachers' pension) but I'm not getting overly worked up about what will happen more than thirty years down the line especially as there is a strong possibility I won't be alive then!

For now I just want to travel and sight see and enjoy life and I guess I'd rather do it now than in my 70s, if I live to see my 70s!

OP posts:

KnittedJimmyChoos · 15/02/2015 14:00

I dread to think how sad it would have been if they'd put their life on hold till retirement.

Many do.

My tartan I dont think there is any big deal to what your doing, sounds fine and you still have a pension, after all, just a few years less.

Has to be a balance. Live now and save for later.

Original poster

mytartanscarf · 15/02/2015 14:19

Yeah both my parents did. I know theirs is an extreme example but in my case while I don't think a total abdication of future planning is wise I'm also not going to postpone my dreams for some point in the future that may never happen.

I'm currently studying, writing a crap! book and working a bit of supply and a bit of ad hoc work. Next year I want to travel.

OP posts:

Ehhn · 15/02/2015 14:33

It's worth speaking to an independent financial advisor/planner. I am self employed and have had sketchy income (varying wildly month to month from not much to ridiculous amounts). I have a personal pension into which I only pay £80 per month. You can pay as little as £65-70. In other words, a tank and a half of petrol. If you could manage to keep that going, you would hopefully manage to live for today and for tomorrow.

Original poster

mytartanscarf · 15/02/2015 14:36

Thanks but I don't think I need to (willing to be corrected) because my pension is through the teaching work I did. I stopped teaching in August and plan tentatively to go back September 2016 but possibly 17.

£70 is a lot as im not on a lot and I suppose my priority is making sure I have enough to retire on if I do live that long, but with the disclaimer I most probably won't!

OP posts:

Dowser · 15/02/2015 14:43

By a quirk of fate my OH managed to retire at 58 . To say we've had a fantastic four years is an understatement.

Now it's all about staying well to continue with this.

We don't live extravagantly. We look for deals , pensioners specials etc

Too many people don't live to retirement age.

Live for now...if you can.

TalkinPeace · 15/02/2015 14:49

Retirement is an idea that has had its time.
It did not exist before around 1890. It will soon cease to exist.

I do not plan to retire, ever.
I just plan to work less months of the year as I get older.

The vast, vast majority of DC pensions are going to pay out such piss little amounts (even with employer contributions of 6%) that people will have to keep working anyway.

OP If you have access to a DB pension like the Teachers one, you are very, very lucky.

Arsenic · 15/02/2015 14:53

But, of course, you are not a manual worker Talk

What about the people who have destroyed their knees and their backs doing essential work? Or those who can't continue in their trades due to heart disease or arthiritic hands?

It's rather blase to blithely announce; Retirement is an idea that has had its time.

RubySparks · 15/02/2015 14:55

Worth remembering that if you do pay into a private pension that the government tops it up. Also that new rules mean you can take it all back out again and don't have to buy an annuity so the money is not so locked away as it used to be (though you may pay tax if you take more than the personal allowance level outin any one year).

TalkinPeace · 15/02/2015 14:55

arsenic
Yup. Lots of my clients are physically broken by age 55.
But they have no pensions so are finding odd jobs and B&Q work to make ends meet.
Its either that or poverty.
retirement when you are on state pension plus an extra £100 a month is not a barrel of laughs.

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