To think that a lot of us will be in trouble when we retire...

[Fleetheart]

This generation seems very unlike the previous ones in that we take out loans for everything, buy holidays on credit, kitchens on credit, new clothes etc etc. And pension schemes are getting less and less generous. And most of us don’t understand them anyway. I’ve always earned well, but have split up from partner, so still have s lot on my mortgage, no savings, and really not very much in my random pension schemes most of which are money purchase schemes and won’t pay a lot. And I know many people of my age (mid 50s) who have no pension at all. And meanwhile the govt is being less and less generous. What will become of us all?

I agree and like you, I don't know. Unlike the boomers most won't be helping their kids either.

I'm wondering the same.

By rights I should probably be saving half of my p-time wage towards my old age. I opted out of a pension on ethical grounds (lots of high earning investments are in things like weapons, tobacco etc, looked into it quite closely).

Might be time for me to investigate ethical pension funds...I'm 40's

DH input is for us to rent out house and live in a caravan. I may have to 'invest' in a lot of woolly garments.

I asked my DH what he thaught about saving for retirement. He said it was pointless, as society will have collapsed by then.

I think the idea of 'retirement' as we know it was a one-generation anomaly. The fact is that for most of time people have worked till they died.

I agree with Timshelthechoice, I don’t think ‘retirement’ as it exists in society at the moment is sustainable. I don’t expect to retire, I expect to either become too unfit to work or die.

Tbf the advances in medicine have created an issue that nobody seems to have thought about. We can be kept alive potentially decades longer than we would have lived in the past but not necessarily in a state that we would be capable of working to support ourselves.

A relative of mine had two serious strokes in his forties and is now well into his sixties. It’s amazing what can be done but realistically just 100 years ago he would have died within a couple of years due to the problems that he was left with. That’s a fairly extreme example but will become more common as people live longer.

I opted out of a pension on ethical grounds (lots of high earning investments are in things like weapons, tobacco etc, looked into it quite closely).

I can’t fathom why you would cut off your nose to spite yourself like this. Most of our taxes are spent the same way - you simply don’t get a choice in the matter but to be looking at serious poverty as a pensioner just to take the moral high ground is absolutely bananas to me

I'm in my 50s and have been paying into my pension since I was 18. Have also been through a divorce and had to start again. I made myself understand the schemes I've been in because it's important, by asking loads of questions and doing some research.

I can see that for younger people, where pensions offer less and at an older age, there will be a big issue, but for those of us in our 50s, we've been the lucky ones.

No, I think the lucky ones are the older generation who have benefited from the final salary pension schemes. I know many people in their 70s/80s who have a very comfortable retirement due to these schemes.

I worry for single people like myself with no partner to share living expenses with and there are more people living alone than ever.

I am 50 and I agree that people of our age will be ok. I believe there will still be a state pension for us. I have no idea if the qualifying age will increase past 67. I am going to assume that it may and hope that it doesn’t. Mind you I know people who have no idea that they need to work for 35 years to qualify for the full amount.

I worry more for the younger generations.

I'm in a final salary scheme kwest as are many NHS staff in their 50s who were in the 95/08 schemes. Let's face it, many (most?) women in their 70s and 80s didn't work, or if they did, they were part-time.

It’s true . I actually have pensions but I don’t save nearly as much as I should
And many of my friends have nothing
Nothing !
I will basically have to die , at least I can leave a house to my children as hopefully mortgage will be paid off

I'll be fine. I have a good pension I contribute 8% my company contributes 16% so total 24% pretty decent.

On track and plan to retire at 55

I worry too. I am now 47, and working 25 hours a week, after years of being a SAHM. With hindsight, this was a terrible move.

But, DH has invested heavily in property over the past 15 years, some of which currently does, and will continue to will provide us with a regular income, some of which we will sell to pay off the mortgage when the time is right. We are mortgaged up to the hilt, so it's just as well - certainly won't have our mortgage paid off in the next 5/10 years, like many of our peers will.

A cousin of mine has recently divorced, aged 50, and has forgone rights to a claim on her exDH's pension. She was off sick for a considerable time, and worked PT for years to raise their children. She's now seriously worried about not being able to afford to retire when she reaches "retirement age".

Personally, I hope to work until I can't physically work any more because I love my job, but only in a PT capacity.

DH isn't blessed with good health, and worries about his capacity to carry on working beyond his mid 50s.

Also the younger generations are renting more than buying. At least those that own will have the option of downsizing to release some equity and once the mortgage is paid won’t have housing costs. Those that rent will never have that. They will have to pay rent on a pension. With people living well into their 80’s and beyond the claims for housing benefit are going to be immense.

Why are you buying things you can’t afford? A holiday and clothes on credit is madness.

Belindabelle

I didn't know that you have to work for 35 years to qualify for the full amount of state pension, either!

35 years FT do you mean - is that 37 hours?

Well the average cost of raising a child to 21 is £231,843, so I figure by not having children that saves me almost half a million for the pension pot!

My FIL retired at 55 on a great pension and has paid off his mortgage. However, he always lived very much within his means, simple holidays, meals out only for birthdays etc, save for a new telly, but furniture in the January sales etc. so he is well off now but would never have dreamed of buying kitchens and holidays on credit and stuff. I don’t understand how people have got into this situation. Why do people buy what they can’t afford? I don’t understand where this notion that we all ‘deserve’ all this stuff came from.

What I don't get is how people who are stuck with private renting as their only option are going to continue to do so on a pension. I mean it's a big enough chunk out of a full time wage. Giant benefit bill? Cheaper warehouse type accommodation for retired people to be moved to?

kwest I know people in their 40s who are on final salary pension schemes. Great if you could get it.

But so many people nowadays opt out of pension schemes for such crap reasons and the willfull lack of understanding about compound interest is bizarre

I'm going to be living much more frugally after reading this post. Although, most of my clothes are bought either in sales or from charity shops and I have my hair cut about every 8 months by a mobile hair dresser who charges next to nothing.

I agree there is a ticking pension time bomb.... Discussing in a meeting a few years ago the need to save a £300k pension fund for £800 a month pension. A colleague nearly 30 saving for her wedding & house deposit while paying off her university debt stated she realistically couldn't start to save for pension till 40... When hopefully married with mortgage & children out of full time nursery.
The pensions advisor told her that was fine... 300 pay days till 65 so just needed to put aside 1k a month... Made everyone in room realise just how much needed to be put away and that for many they would have a retirement in poverty as wouldn't put away nearly enough...

I pay 8% of my income into a pension as does my employer, I then have another pension that I pay 20% in. I have bought a property so in 10-15 years (depending on how much I over pay) I will be mortgage free.

I’m 31, I have friends who have nothing beyond NI credits, it’s very risky.

I think you're right, but I think that the situation is partly of our own making, as our expectations are pretty high.

DH and I have been pretty sensible, both always worked hard and to the main extent lived within our means. We will have to make proper sacrifices when we retire fully.