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?

Wife is superannuated and I have 15 years in on superannuation and 10 years where I have paid in a hell of a lot per month and my employer 10% (so about £800 a month going in to that one). We try to take very little credit, if we can't pay for it, we don't have it.

We have a mortgage and I really do need to sort that in the next few months, as there is a chunk on interest only. No real concerns about the future here as yet, but who knows what's around the corner.

I think people advising strongly to pay into a pension as soon as they can aren’t talking about people that CAN’T for whatever reason (v low wage/high living costs/sickness/caring responsibilities). What annoys me is people who CAN afford to fund/top up their own retirement and choose not to, or put it off, making less social care & benefits funding available for people like you, @littleblueorchid, who really do need the help through no choice of their own.

As for whoever said that our economy would be in a dire state if we all saved everything for our retirement rather than spending it, well, perhaps the planet would be in a lot better state if that were the case. Very few people using air travel or gas guzzling cars, no-one buying fast fashion which destroys the environment. Everyone going back to a grow your own and make do and mend kind of lifestyle. Back to an earlier age, I suppose.

Although, come to think of it, exactly how are pension funds going to make any money if the only companies left are ethical ones?

I dunno. It’s hard to predict the future and what society should for the best. I do think people should be acting for the good of the whole though. Which includes paying for yourself when you can and supporting others when they can’t by paying a bit more.

Lofty ideals Curly, and worthy ones, but unless everyone takes the responsibility for their own retirement security seriously, there will be conflict between the ants and the grasshoppers. Ants will get it together and lay in stocks; grasshoppers will dream and assume the state will stump up. WE, all of us, are the state.

I do hope all the political parties' HQs policy wonks are reading this thread attentively.

lego totally with you. Life doesn't always turn out like you think, and many of us have simply no way of paying into a pension despite knowing how important it is. Sorry to hear about your daughter.

What we should be very worried about is our Pension Funds. Not just what we put in, put the financial stability of the funds themselves.

colouringinpro thank you 😊

I’m probably more sensitive due to my current situation and I do appreciate that not all of these comments are aimed at people like me....but as you said, who knows what life will throw at any of us?

As long as the gov doesn't screw the teachers pension by the time I retire, I'll have over £100k per year. Based off the pension calculation... Same for my wife.

Yes yes yes! I have a pension and have since i was 25. It’s a pretty good one too but DH is in his 40s and doesn’t.

We also spend far too much money on EVERYTHING! It’s not good is it 🤦🏼‍♀️

I'm in the same position as BarberaofSeville.
My father instilled the need to be saving from the day I started full time work after college, training etc and I've always been the breadwinner and was never very well off! I'd love to have married a man who provided but that didn't happen and now I'm damn glad I worked the hours and paid into my pension, which wouldn't have happened should that man earned a good salary. I've brought my sons up single handed and now they also pay into a pension, even though they don't earn a great deal. I have never borrowed for a car, as money down the drain so always had a smallish car cheaper to run! I remortgaged twice to cover the kitchen, bathroom, etc but never bought property beyond realistic means..

Pineapple1 are you sure you have calculated correctly!

@moccaicecream and @legodisasterzone the young women I advise starting a pension are 18,19,20 and working. Single, child free, not carers - I work in the third sector I'm very aware of the needs of carers and in fact other multiple deprivations faced by many, many people. I find that no one has ever advised these young women to start pensions and take advantage of the employers contribution. I am, of course, considerate. So perhaps saying "every young women" was an exaggeration but I didn't really think I needed to spell it out!

Even tiny amounts plus an employers contribution at age 18,19,20 can make a big difference.

Do you seriously see that as wrong?

It's not smug advice. It's the very definition of practical advice.

I’ll be working until I’m 67. That’s when I get my state pension......if I get it.
I’m 56 with no personal pension or savings.
( that’s having 4 children for you )

This is a bubble waiting to burst. Many of The older generation were fortunate in buying a home when it was affordable and now as they reach retirement have paid off their mortgage and can live mortgage free, often with final salary pensions. Generation rent can’t afford to contribute much to a pension scheme as they are paying such high rents. They will either have to work ‘till they drop to keep a roof over their heads or if old age/health prevents them working they will have to depend on the state to house them and I can’t see that happening.

@legodisasterzone, totally agree about the smugness, it's like being trapped in a burning building screaming for help but all the firefighters can hear are the people on the outside screaming that they are ok.
Also, foodbanks exist and some people live on the streets or in hostels. I know this may come as a shock to some people, judging by some of these entries - that other people do not have 'options'.
HTH

As @CurlyhairedAssassin says, those who could save to look after themselves in their old age but choose not to are putting at risk the benefits so clearly needed by other people who have health issues or care for those who do. It's a kind of selfishness that's utterly immoral IMO.

scifi I don’t see any need for the eye- rolling or confrontational comments.
I didn’t refer to your post specifically- and of course I don’t dispute that young people need sound financial advice.

I take offence to the many comments that are disparaging towards those who don’t have financial security or those who have had a lot of parental support or just pure good luck and feel the need to do the ‘I worked hard for this’ speech.

The definition of practical advice should maybe also include help on how to survive should it all hit the fan and your precious savings and career go down the pan.

@CurlyhairedAssassin has realised what I mean. Those who CAN save, SHOULD save. Even if it's only a tiny amount. Save enough to access the employers contribution and also maintain the lifestyle you wish.

I started out on the minimum (3% and 3%) and without going into details have had my own financial challenges (caring and alcoholic family members being part of that).

Those who can, should.

£100k a year teachers pension?? Are you sure?

I mean the lifestyle you wish when young! So don't feel you should save £500 a month. Save enough but still have a disposable income if you can. It's about finding the balance that works for you.

I'm not repeating the mistakes of my Dad and in-laws.

So I save.

These things go in cycles.

When I started ft work in 1986 I was automatically enrolled in my employer’s pension scheme - no choice in the matter. A few years later the law made it optional, so I could have opted out. But that struck me as a bad idea, as I was managing on my earnings so long as I didn’t go mad. So I stayed in the scheme. New starters had to opt in, and I suppose many chose not to.

Now there is auto enrolment (although still with the possibility of opting out). I think that is a good thing, although the downside is that the contribution levels are not really enough to provide a comfortable retirement. So I would encourage anyone who is in an automatic workplace pension to look at the projections they will be sent, and consider if they can contribute a bit more. The earlier you start, the less you have to put in, iyswim.

The big change for me is the change in pension age and energy levels as I get older. When I started work, retirement age for women was 60, and my occupational scheme was the same. A few years in I was given the option of changing my normal pension age to 65 but told that I could still retire at 60 if I wanted to, but would have the option of continuing to 65. So I said yes, because I couldn’t see any downside.

Then I had a career change in my early 40’s, with the expectation I would work in my new career till 65. But then they changed the pension age of that scheme to be in line with state pension age, which for me is 67. And as I pass the mid point of my 50’s, I am finding maintaining full time work harder and harder. The thought of another 12 years, or even another 10 to my original retirement age, is just too much to cope with.

I am very fortunate that, we have sufficient investments that we can afford to retire in a couple of years and bridge the gap until I reach the normal pension age of each of the schemes I’ve been in. Were that not the case, I think I would be looking to go part time. That’s the only way I could envisage keeping going to 67.

I don't understand why you would assume most people borrow money on the things you listed, especially holidays, that's a luxery.

I'm just worrying about the lack of pension and will probably work till the age of 75 like my Nana did.

Pineapple1 - unless you have lots of other investments to achieve the £100,000 you talk about then you really should use the teachers pension calculator to see how much you will get on retirement.- unless this is a joke or you are being ironic- hope so - otherwise you are in for a big disappointment.

There's no disagreement with the save if you can, even if it's not as much as you'd like. And, on my part, no quarrel that if you need to take from the social pot, you should. My quibble is with the mid range where individuals don't need help now, but assume it will be available to them in later life, despite having not contributed. Which is, apart from those here present, a large % of the population. Everyone who has posted on this thread is aware of the issue and either planning or terrified of the future. But only a tiny % of registered MN users have participated. That worries me.

@Pineapple1

I really don't think your 100k is correct. Are you superhead of several massive London schools?

Anyway, I am afraid that Teachers' Pensions are under threat.
From September this year the Government has increased the employer contribution to TPS from 16.4% to 23.6% - a massive 44% rise. Or a 6% rise in staff costs.
State schools have been promised the additional funding required for a single year. Independent schools have to find the money themselves at fairly short notice.
This has resulted in some indy schools leaving TPS from September and it is unclear what will happen with state schools in the future.

This is despite a "once in a generation" change to teachers' pensions which happened nine years ago (which moved retirement age from 60 to 65). And a further recent change to career-average for new service.