To think that a lot of people don't seem to understand that part-time work = much smaller pension?

[AHedgehogCanNeverBeBuggered]

I work with a lot of women in their 50s, several of whom have expressed their shock/disgust at how little occupational pension they'll be receiving when they retire, even proportionally compared to FT workers. They have all had DC then remained PT even after the DC became teenagers and eventually left for uni. I didn't want to say anything to them when they were complaining to me how hard done by they are, but surely it's basic maths to know that the more you invest (and the earlier) the more it grows and therefore the greater the pension? How can they now claim to be so surprised and hard done by?

The problem is there are 5 people working for every one pensioner so no problem in funding their pensions. By 2035 there will be two people funding one pensioner

There is a demographic time bomb on the way 💐

It's definitely something I consider, and I'm mid 30's. I've had an excellent NHS pension since I was 21 and am very grateful for it. I reduced my hours to 30 after DC, and would like to do so further. However I'm mindful that I'd be taking almost a double whammy financial hit - less earnings now so limited ability to save as a family + significantly less pension in the long term. It certainly makes me wonder what the right decision is and have put a lot of thought into it.

I've friends who earn a lot less who have drastically reduced their hours. We all discuss finances/working patterns but pension is rarely spoken of.

It's a choice at the end of the day though. We didn't have a lot of financial security growing up and I think it has certainly impacted on my approach to finances. I'm very careful. My mum in the other hand has little to no financial security in her 60's.

How can they now claim to be so surprised and hard done by

Because many don't think of the future, they put their wants first rather than look into things etc. More and more feel entitled to have everything for little effort and seem surprised when that doesn't work.

I'll overpay when I've finished paying off my mortgage. I'd rather invest time in my children now than regret not spending time with them later.

I'm a music teacher so will probably do instrumental teaching to make up the shortfall later on.

I think whoever thinks the state pension will exist or be more than a few pennies when they reach retirement age in 10 years and onwards are naive at best. The couple of quids difference you will get between Ft and PT work will make 0 difference to your life.

Unless you work hard on a way to have an income when you retire, you are screwed. I do mean that. Some elderly people have to survive in horrendous "care" homes today, tomorrow will be even worst.

If the government trying to penalise people buying their pension pot via buy-to-let, and people can't even relay on properties to fund their old age, it's going to be very nasty for people my age when we are old.

I work for the Local Government in a gold plated compared to most scheme. I'm dumbfounded by how many of my colleagues don't even pay into the pension.

Tarra- I agree that the state pension will be virtually non existent before long.
I don’t know what you mean when you say the difference between working full time and part time is 0 though ... there’s a massive difference in what your occupational pension will be worth depending on how much you work. I dropped to 3 days a week for a very small number of years and even that’s knocked a few thousand a year off my pension. God knows how people manage when they stay part time for decades

I’ve always assumed I won’t get a state pension.
I work 30 hours a week (25 in school hours, the rest in the evenings ). I accept that means a reduced pension but the trade off is one I am happy with. I love being there when the children finish school. I don’t think I would enjoy a leisurely retirement anyway, I didn’t like doing nothing on maternity leave. I would ideally want some kind of flexible retirement where I kept doing some work for as long as possible.

I agree with Snowsnow that not all baby boomers worked for companies that offered occupational pensions schemes. I didn't, for one, until my mid thirties. Where pension plans were offered they were also very inflexible. Every time my dh moved jobs his pension pot took a battering because each firm had a different type of pension funding provision. The idea of portable pensions, introduced in the 1980s, didn't improve matters at all. Despite paying into different occupational pension plans over the last 40 years his pension is laughably small.

My mother worked all her life, even when we were small and never had the opportunity to join a pension scheme and my father was often out of work through illness.

I don’t know what you mean when you say the difference between working full time and part time is 0 though ...

I just mean that when state pension is virtually nothing, you won't even notice the difference between FT and PT. By the time I reach retirement age, it will be probably pushed at 89 or something, and be something like £25 a month. I wish I was joking, but I honestly think we will have next to nothing.

I think it only dawns on you when you get close to retirement.

I was briefly part time and it has affected my pension but if I could go back in time I still would have chosen part time hours as that was important to the family at that time.

There's a woman in my office who has the same complaint. She works 3 days a week, children left home a few years ago, which seems perfectly reasonable, her choice etc - but then was complaining about the fact her pension projection was significantly lower than her (full time) colleague.

Tarra we’re all agreed the state pension is shit and will only get Shitter! It makes it all the more important that people realise the importance of making their own pension provision

Don’t quite know what the hell im going to do we are in our forties and rent with a pre schooler and primary school age who have additional needs so I’m not working and still Paying off debts at 37% apr husband has no pension either he’s nearly fifty
Don’t know what I’m dojng to do

I am aware of this. I have an NHS pension but a lot of my career has been very part time ( 4 kids). I spent almost 5 years working abroad ( I'm not sure if there's any way I can access the New Zealand pension I paid into for that time. I now only work 15 hours a week in the NHS so not currently paying much in although I have another part time job but they only pay £70 a month in and I make no contribution ( not sure if I can ). I have about 15 years left to work but I'm unlikely to go back to the NHS full time.

I have a colleague who has always impressed on younger employees how important it is to pay into their pension, consider the impact of part time hours etc etc. I used to think, stop banging on about it all the time. He was right.

I know. There's a woman I used to work with, about 20 years older than me & on several thousand more per year despite us both doing the same job, complaining about her pension pot. Actually in tears over it. Despite having her mortgage paid off on her own house plus a rental property she owns. She knew I was supporting my student DH & young DD on my (lower) wage, & that while she will get a state pension, I won't. I'm afraid that although I helped her understand how to amend her contributions if she wanted & see what it would do to her salary & pot, I wasn't sympathetic. This is the same woman who had previously called me a mug for paying maximum contributions in my 20s when I could afford to, on the basis that she had opted out so she could afford holidays etc.

I don't have a pension other than two trivial pots as have never earned enough. I do have my house though which is where all my money has gone so will have to seriously downsize which is fine. When I was a young worker nobody I knew took Private pensions out and it wasn't a thing we were made very aware of in 1980. Luckily I live frugally anyway and current state pension is only about six thousand a year less than I have now. I think the op is right that few people make the link between part time work and later implications for pension.

I’ve worked part-time for the last 17 years, some of that time was self-employed. I’m 51. Luckily I took out a private pension for the self-employed part, so have some contributions for then. I should get full state pension and have some old final salary schemes. My current pension looks rubbish though. I’m fortunate that I don’t have a mortgage and also own a rental flat (mortgage free), otherwise I would be very concerned. I will get about £7k pension when I’m 60, so maybe able to reduce hours a bit more then. The pensions time bomb is ticking though.

That's because it's not fair.

Why should women pay a financial penalty for raising the next generation?

No wonder they are surprised. All that hard work, care work, and love, totally unvalued. It is insane that we let this happen. The point is that they didn't do part-time jobs so that they could watch telly the rest of the time, did they?

They'll get universal credit to make it up to the same amount. People should have private pensions!

A lot of part-timers weren't previously entitled to workplace pensions. I know this was a battle my mum fought as her (council!) employer didn't years ago.

Women in their 50/60s are at a disadvantage because of issues like this and it is a bit poor to make out that it's just poor planning on their part. A lot has changed in the last 30 years!

I'm happy to take the pension hit as a trade off for the quality of life I've gained by being a SAHM for several years and, later, working part time. I've had time to smell the roses. I didn't want to leave my baby in a nursery so I could keep my work pension going. I'd rather have picked DC up from school every day than enjoy cruises in my 70s. We all make our choices and I'm happy with mine.

I upped my % contribution when I started working PT. Love being PT though, not sure I'll ever go back full time.

I think part of the problem is pension projections used to get done assuming something like 5% return. I don't think that's happened over recent years. And annuity rates are much lower than they used to be too, so not only is your pot smaller than predicted, you get less pension for it.

For most of us, we will accumulate a pension pot over our working lives and buy an annuity with it when we retire. It's up to you if that's a single life annuity (stops when you die), or a joint life annuity, and if so what proportion still goes to the surviving spouse. So normally if it's the husband's pension he can choose at the point of retirement whether to hand over 100% to wife after his death or none or anything in between. Obviously with the joint options the pension that you get is initially smaller in return for the potentially longer payment period. www.moneyadviceservice.org.uk/en/articles/individual-or-joint-annuities

I didnt give my pension any thought till I was turning 50. Thankfully for me I couldnt afford to go part time/SAHM when I had dc. I would have loved to at the time. I dont think its that unusual not to think about pensions in 20s and 30s. It seems like there's plenty time.