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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Please tell me I am not the only oldish person without a pension plan

579 replies

QuentinLettsisAbitofAtool · 19/11/2018 17:45

Not a TAAT well it is a bit but sod it

I'm having a bit of a panic attack brought on by the MN survey about pensions. I don't have one, have a big mortgage, not due any parental inheritances and am in my 50s.

Please tell me I'm not alone as that might make me feel less dumb!

Oh and I put "oldish" in the thread title because I mean old in terms of a pension. Twenty somethings who don't have a pension don't fit my criteria!

OP posts:
Craft1905 · 19/11/2018 21:15

My Dad spent all his life saving for his retirement. He died at 66 and didn't get to enjoy his money.

My dad didn't believe in pensions. He lived until 103 in abject poverty, when all his mates were down the golf club or away on cruises.

liquidrevolution · 19/11/2018 21:15
  1. I had one for 3 years but then quit work to study for 6 years and couldn't afford one after with high rent, baby. DD just started school so childcare has dropped so I investigated it last month. If I save 300 a month until I retire I'll get 267 a month pension.

Financial advisor says I should up my workplace pension and save alongside. Fortunately my mortgage will be paid off in 10 years thanks to DH inheritance and there may be money from my parents and in laws.

It's a shame I can't do more than a savings account for DD but I started with nothing so hopefully she will be ok.

Talkinpeece · 19/11/2018 21:15

TBH the LGPS is irrelevant to OP.

What is available to the millions of people without DB employer schemes are low return DC schemes
and its really tricky to decide what to do for most people.

Lineofbeauty · 19/11/2018 21:16

And people who go on about public sector pensions seem never to have opted for public sector roles.... hmmmm scratches chin why would that be?!?!?

I do NOT include charity workers in that, because I consider them to be public sector workers without the perks...

Undercoverbanana · 19/11/2018 21:17

I’m pretty much screwed and will probably just keep working.

MrsGrindah · 19/11/2018 21:17

JoyceThey are in lots of ways..a freeze when prices go up Iis effectively a cut, benefits cap, two child limit

Original poster
QuentinLettsisAbitofAtool · 19/11/2018 21:17

Why are people who have pensions posting on this thread? Confused

I'll make an exception for Talkingpeece who is making some interesting points. Please tell me about your pension plans, TP.

OP posts:
MrsGrindah · 19/11/2018 21:20

To people saying you might die first...well yeah but that’s a pretty unreliable plan!

FuzzyCustard · 19/11/2018 21:20

Why are people who have pensions posting on this thread?

Just using my very small pension as an example. But I take your point. I'm off.

Lineofbeauty · 19/11/2018 21:20

Im posting on here because I actually didn't have any pension till I was 38.

There are still choices to be made until you are about 50. 20 yrs of contributions will be significant. Especially if you go for a public sector role with a good scheme.

apostropheuse · 19/11/2018 21:20

I'm almost 57 and my employer started paying into my pension 18 years ago. It's estimated that my monthly private pension will be about £400 per month, which is of course taxable, if I retire at 65. I can't retire until I'm 67 so my pension contributions will continue until then and very slightly increase my pension. I have enough contributions to get the full state pension. My house isn't big, so can't really downsize.

I'm not going to worry about it, because we don't know what's ahead of us. My parents both died in their early sixties and didn't get much benefit from their pensions at all. I suppose, as I will by then be mortgage free, it shouldn't be too bad.

I may try to continue working part time after 67 if necessary, but I don't know if my health would allow it - I have some health issues already.

Talkinpeece · 19/11/2018 21:21

Quentin
I am a tax accountant, I give advice to my small business clients, hence why I read up on LOTS of types of pensions.

I have my own company that pays into a SIPP for me - started that after I turned 50
I had some old opt out SERPS money that I rolled into the same SIPP
I have about 50p in an LGPS pension
I have a bit of other savings
I have no mortgage

As an accountant, I never intend to fully retire

Many of my clients are physically broken by the time they are 55 so have to stop work and are then broke / reliant on the basic state pension

MrsGrindah · 19/11/2018 21:22

Quentin...come off it you don’t really mean that do you?

DrMadelineMaxwell · 19/11/2018 21:27

This is one of the few reasons I am glad I'm a teacher. I've been paying into the TPS for more than 20 years. We also had someone from a company come to talk to the staff about AVCs when I was newly qualified and I took one out. All the years I was part time for might just be made up in part by the AVC account I have in addition to my TPS.

DH has bugger all put by - a pitiful private pension that he took out himself but that he can't afford to put much in - and now the standard workplace pension - but he's on £25k so that isn't adding much either.

Our house isn't big enough to downsize at any point either!

Original poster
QuentinLettsisAbitofAtool · 19/11/2018 21:33

MrsGrindah - yes, I did mean it. Whilst I'm not the thread police and anyone can post what they want - I started this thread for people in their 50s without pension provision (like me) I thought that would be clear from title and my first post.

OP posts:
Craft1905 · 19/11/2018 21:37

It's estimated that my monthly private pension will be about £400 per month, which is of course taxable,

Only the bit of your total income that exceeds your annual allowance is taxable. The state pension, is, from memory, about £8K a year. Your private pension will add £4800 to that. So a total of £12800. The tax free allowance as of April 19 is, I think £12500. So if it were happening then, you'd only pay tax on £300! The rest would be tax free.

Original poster
QuentinLettsisAbitofAtool · 19/11/2018 21:38

Thanks, TP, that's interesting.

My plan is to pay off my mortgage as soon as I can. I want to work as long as possible as retirement doesn't appeal. I do make sure I have a good holiday every year - my mum died in her 40s which influences my decision not to put holidays off.

OP posts:
apostropheuse · 19/11/2018 21:41

Craft1905 - good explanation, thanks for that. I will confess, that part confused me!

DrMadelineMaxwell · 19/11/2018 21:54

I'm another 20 years away from retiring, at least, but my pension pot isn't that healthy.

About £20k lump sum, but that scheme has finished now for teachers, so that's not going to grow much at all.

£9k per year pension at the moment.

In my AVC
About £25k of contributions, worth £1000 pension a year.

blue25 · 19/11/2018 21:55

Am surprised someone above has opted out of their NHS pension. It's a great scheme, that most people would love to have. I never thought of a pension as optional TBH & paid in from 23, but obviously this thread isn't for me...

Talkinpeece · 19/11/2018 21:58

blue
I never thought of a pension as optional TBH & paid in from 23
You are lucky that you were in a position to plan ahead / in a job where pensions were offered.

Millions of people in the UK were never / will never be in that situation.

Remember that even with the fanfare of Auto enrollment, many part time workers with the biggest companies in the land are not getting employer contributions.

Starlight345 · 19/11/2018 22:06

I am late 40’s my pension pot is £3,000 so practically no pension.

I have started paying £80 a month into an old pension . Can’t afford the financial advice . Self employed but think it has to be better than nothing 🤔

LagunaBubbles · 19/11/2018 22:12

surprised someone above has opted out of their NHS pension. It's a great scheme, that most people would love to have

Do you mean me? I did say I don't have the £300 it would cost me every month, not sure I'm meant to be part of the scheme then. Confused

iwantasofa · 19/11/2018 22:26

Neither I nor DH have one. Both have always worked freelance in the arts and though we worked for several years teaching our subjects in HE, were never eligible for the pension. luckily we had an inheritance and own our house. At this stage we think it makes more sense to continue to invest any spare money in shares than to start a private pension.

Bettyspants · 19/11/2018 22:32

Blooming heck I was going to post as some advice (mid 40s) but seems op ONLY wants the thread for those 50 + with NO pension . What about those who would actually like to start contributing and making the most of a crappy situation?