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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

..to be slightly concerned at my pension pot age 30?!

116 replies

Zara87 · 17/10/2018 21:38

I have just checked and I have a grand total of £3790 in my pension.
I'm 30.
This is really bad isn't it Shock
How does this compare to the rest of you?

With my childcare bills at £1600 a month for the next 18 months, and 2 very young dc, there is no way I can pay any more than I already am!

OP posts:
MorbidlyObese · 17/10/2018 22:46

This reply has been withdrawn

Message from MNHQ: This post has been withdrawn

springmachine · 17/10/2018 22:46

I'm 32 and my pension pot is currently just over £1k, I have only recently started it

Thundercracker · 17/10/2018 22:47

The statutory minimum employer contribution is only 2% at the moment (of qualifying earnings - not whole amount) if employee putting in 3%. This will go up in April to 3% if employee putting in 5%. So 3% on whole amount is more than minimum, OP!

SucculentChineseMeal · 17/10/2018 22:49

RedDwarves, where did you get that 9.5% mandatory figure from?

The minimum employer pension contribution is 2% (employee has to put in 3%) going up to 3% employer (5% employee contribution) in April next year

Original poster
Zara87 · 17/10/2018 22:50

Yeah they do match what we put in. I return from mat leave early next year so will make this a priority to increase to nearer 10%

OP posts:
Zigazagazoo · 17/10/2018 22:51

I’m 30 and have nothing. Just had a baby and self employed so really no hope of starting something anytime soon.

Original poster
Zara87 · 17/10/2018 22:53

@zig it's shit isn't it :(

OP posts:
MicroManaged · 17/10/2018 23:05

I don’t pay anything into a pension, never have...but my employer pays in 10%.

I’m 32 and it’s around £24k at the moment which, if it continues at this rate until retirement (so another 70k or so in, giving a pot of over £100k probably) apparently gives me a pension of £4K a year.

Kr1stina · 17/10/2018 23:11

When you return from mat leave you need to buy back that extra year on your pension. It’s not fair that you have taken that financial hit when your partner (i asume ) has continued to work Ft and pay into his pension.

You need to prioritise this. How are you paying £3,200 a month on childcare ? Do you have a nanny ?

pastabest · 17/10/2018 23:14

RedDwarves is in Australia succulent it says so in the post. Grin

I have no idea what's in my pension or exactly what percentage I pay in, I'm in the local government pension scheme though so which I assume is reasonably decent.

pastabest · 17/10/2018 23:18

I think it's really unfair Kr1stina, like anyone has the equivalent of a year's worth of pension hanging around in their bank account at the end of mat leave. You literally get a few weeks to pay it in full in my scheme, surely it would be much fairer to have the option to pay it in instalments.

Original poster
Zara87 · 17/10/2018 23:19

@Kr1stina it's £1600 on childcare p/m.
That includes ds1s 30 free hours too!
Unfortunately we have no help with childcare

How do i buy back that year on my pension?

OP posts:
Rhiannon13 · 17/10/2018 23:20

I'm mid-forties and don't have a pension as I've been self-employed for years, have no mortgage and have made plans to downsize when necessary. My DD is 17 and her private pension is worth £10,500 at the moment (I set it up when she was 5). Not sure which is the best idea though!

IsTheRainEverComingBack · 17/10/2018 23:28

I’m the same as you OP, and same age. Due to mental illness I didn’t really start working until 27, and I’ve wobbled in that time, but will get a grip on it over the next year and start paying in a bigger amount. I do expect to work till 70 though.

Kr1stina · 17/10/2018 23:41

@Kr1stina it's £1600 on childcare p/m.
That includes ds1s 30 free hours too!
Unfortunately we have no help with childcare

When you said you paid 1600 I assumed that was half the childcare had that your children’s father is paying the other half . Why on earth are you paying all of the childcare if they are his children too ?

How do i buy back that year on my pension?

I meant on your occupational pension , I just had to speak to my employers . They tried to take it all out my first months salary ( which left me with nothing ) but I managed to get them to take it over the first few months .

It’s a big dent in your pension if you have taken two years maternity leave close together and its not fair of your childrens father to expect this of you.

I understand it’s harder if you you are no longer together. I’m guessing this is why he doesn’t pay the childcare. Even then, he should pay on the days that he has the children.

SucculentChineseMeal · 17/10/2018 23:43

Thanks Pastabest, clearly I’m getting too old for this shit as I had no idea what ‘straya meant 😀

Original poster
Zara87 · 17/10/2018 23:46

We are together yes, their childcare is entirely paid for from my salary and then all the bills and living expenses are from his salary. His goes into our joint account and we use that. So neither of us have our own money IYSWIM.
Just the way we've always done it. We've always earned similar amnts and so it just made sense

OP posts:
MercianQueen · 17/10/2018 23:50

We have matched contributions at our company, up to a max of 12% (I could contribute more, but employer contribution is capped at 12%).

I've always seen that for what it is - free money. Better than anything I could get in a bank account. So I've maxed my contributions to get the maximum "free money" out of my employer.

I also consider what I'd be losing if I were to move to a company offering a better salary but a worse pension contribution - on balance, the free money wins out every time!

TC07 · 17/10/2018 23:55

Your employer should have continued paying the same amount of pension contributions as they were paying before you go on maternity leave. So the 2 years maternity leave a PP referred to should only be reduced by the amount you contributed.

For example; if you paid 2% and your employer paid 2% before you went on mat leave. Say this 2% was £50.

When on paid mat leave (so 39 weeks) your employer should continue paying £50 but you will pay 2% of your actual pay (say 2% of the statutory).

Harrassedhubby · 18/10/2018 00:00

Don’t worry, it’s nowhere near too late to start planning! My dad only ever gave me one piece of advice, so I figured I should listen... Find yourself an Independent Pensions Advisor, the initial outlay/% take may seem steep, but if you find a reputable one it’s worth it. I’m 37, my salary now (gross) is £38200, I’ve managed to reach my goal of £20k per year by investing £212 per month, since age 19. At age 30 you will need to find about £340 a month, for a comfortable retirement. But, speak to a professional! Remember, fools worry, wise do!👍

ButtPlugInMyHalloweenHaul · 18/10/2018 06:30

When I started working which was along time ago my Dad advised I put 15% of my wages away into a savings account no matter what. Behave as if it never existed even if it means I didn't have any extras/holidays etc. I did this from day one. If I needed a bit of help I went to him but I always paid him back on the drip.
Hi advice was good advice.

OrcinusOrca · 18/10/2018 07:22

You've still got lots of time, get putting in as much as you can now and you'll get used to the drop in cash each month.

I would love not to have to pay into pension, would have so much extra per month! DH's pension is rubbish though, and mine is you pay in x, we pay in y or nothing. I pay something like 9% and they pay 14%. I think DH's is 3% and 3%. Half the reason I will stay in the kind of area I am work wise is the pension. It's not as good as it used to be by a long way but it's still so much better than most.

BG2015 · 18/10/2018 07:27

I will have a teachers pension and whilst it being good it won't be enough as they changed the scheme in 2015.

I can retire at 60 with a pension of £10k which will then increase when I'm 67 to about £28k (including my state pension if it's still about)

My plan is to bridge the 7 year gap by downsizing.

10 yrs to go. Not teaching past 60, no way!

NeverTwerkNaked · 18/10/2018 07:30

I’m in public sector work. I contribute 6% and my employer contributed 15%, so 21% total.

My twenties were a pretty hit and miss for pension contributions due to a lengthy illness, but working nearly full time now plus overtime means my pension pot is building well. It’s definitely not “too late” to start at thirty.

sashh · 18/10/2018 07:36

OP

Have you considered paying into a pension for your children as well as or instead of an ISA?

Check with your employer if they will match a higher contribution.

I read a tip on money saving expert, this is on top of your current
payments, pay into an isa or savings account, regular saver accounts often pay more interest that ISAs, at the end of the year any money you have not needed for the year you pay into your pension/ Obviously you need your 'emergency' buffer but anything you can save on top of that, even £1 a week can help.

I was lucky that I was with the NHS when I Became disabled so I started getting a pension very young, it's not enough to live on but it certainly helps.

I also have a SIPP, I had various pensions from other employers with not much in, £300 here, £500 there so put them in to a SIPP that I 'play' with, it should give me a lump sum in a few years.