To think this is enough and I shouldn't panic?

[MagicKingdomDizzy]

I made the mistake of going onto the Pension board, after a conversation with friends turned to retirement and how we would cope.

Most of my friends have pensions and have had uninterrupted careers, but most of them don't have children either.

I'm currently a SAHM for a variety of reasons but have tried to work part-time where I can to keep my hand in with my profession.

Currently I have no pension at all. Nothing.
My friends were horrified. And after a look on the pension boards it appears I'm probably in the minority.

I'm 34 so have a decent working life left, once my children are more self sufficient.

My husband has an excellent pension (he pays in 5% his company pays in 15%) and it's currently forecast at 500-600k at retirement age. We could easily live on this, or if (God forbid) we divorce, I would get half.

At the moment I would rather pay extra towards the mortgage or put into an ISA rather than a pension. But the money is currently not spare anyway.

Am I the only one at my age with no pension, and have I been financially reckless? 🙈

I wouldn’t rely on your husband having a pension. It’s one of the main reasons I decided not to be a SAHM. If I were you I would probably prioritise a pension over your ISA unless there is something specific you feel you need to save for.

Are you considering returning to work at all?

I'm 30 and not sure how much I have in a pension, but I have a feeling it will be bare minimum as it's only been a work pension that's been added to through my min wage job.

We struggle with money as it is & don't manage to save very much as it is, so can't see how we can afford to then also add in extra pension money

I'll admit at the age of 30 I actually have no idea how pensions really work, I really think things like this - basic finance stuff should be included in school education.

user1480880826

I'm planning to. Our youngest was born with health issues, and due to the amount of surgery/care/support she requires it's been hard to get back to work. I have tried, and I manage just under a year, then had to leave. My husbands career has definitely been prioritised over mine, one of us has to be at home.

The reason for the ISA instead of a pension is because I would have more control over the money and how it is invested.

My dad paid into a private pension for his entire working life, and it's now worthless. It puts me off pensions somewhat.

@covetingthepreciousthings you’re not alone with not understanding how they work.

I find them incredibly complex. I tried to move one (as I had moved jobs) and it was so difficult I ended up not doing it. So now I have four different pension pots. Not ideal!

You can get a self managed pension fund, which you can invest in shares or other methods. Might be worth having a look?

HypatiaCade

Will take a look, thanks!

500-600k at retirement age. We could easily live on this

Have you done the maths to check this? Assuming he retires at 65 and you both live to 90, you're talking about approx £40k (inc. state pension at today's rates). And that's gross, you're still going to get taxed above your personal allowances, which assuming they stay roughly the same leaves you with a total household annual income after tax of £36k. Is that enough to live your lives as normal?

Caveat - my maths might be off! Not swearing this is 100% accurate

DerelictWreck

If your maths is correct, its definitely enough for us. Factoring in 2 state pensions, no mortgage and a small amount of savings, that's plenty for us.

I'm in the same boat as you. Whenever I get some spare money I put it into my Isa. The interest is pretty good. Ill just keep filling it up when I go back to work.

The cost of living will be much higher in 35 years remember.
If you build up substantial savings then yes, this would cushion the blow. You also have to have worked enough years to qualify for full state pension (currently 35 years).
There's still time, don't worry!

Once you are back at work, your workplace pension will have the additional benefit of employer contributions (a key benefit over an ISA) - so don't give up the free money!

Also we all underestimate our longevity. I was born in 1984 and 1 in 6 women born then will reach 100.

Finally, should you get divorced, do remember to push for pension entitlements - most women focus on the house instead.

Went down the internet rabbit hole about something else and came across this in the FT (in an article about women and maths).

I actually think that a judicious bit of panicking (like worrying) can be productive if it means you start to do something about it. You're still young enough to make up the loss/plan for a secure retirement even if you're no longer married.

@Needallthesleep
It may not be a bad thing to have 4 small separate ones. If one goes bust at least your risk is spread. They won't all perform the same either

Rem you also get great benefits from a work pension. You pay into it before tax and ni contributions. ISAs are after tax and ni contributions