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 have a workplace pension (as does DH) but it's not going to give us amazing money on retirement. But I guess once our mortgage is paid off hopefully that will be just enough.

In an ideal world I'd have a private pension too, but me and DH are both working full time pretty much just to cover living and spiralling costs. I can't see me getting a private pension right now.

I had to take a pension break for 10 years because I couldn't afford to pay the mortgage and bills being a single mother , but I can see the light at the end of the tunnel 9 more years I will be mortgage free and some of the biggest debts I inherited from my ex-husband should be paid off by next year its been a long road but I will be back on track with my pension contributions and will be able to treat my little family to a holiday as well. My parents have always instilled in us to make provisions for retirement because its not fair to rely on your kids to look after you in these changing times and unfortunately its seems to be the other way round grown up kids relying on their elderly parents to look after them

I don't have a mortgage, can't afford to buy at the moment as a single parent. I have a workplace pension but can't afford to pay into a private one.

I'm trying not to think about the future too much to be honest. I will have to work until I can get state pension (if it still exists when I am that age as I'm only 29!)

Hopefully I will buy a house at some point.

We have (manageable) debt. We have also been paying interest only on our mortgage. No doubt many will disapprove. Our lump sums on retirement will cover our mortgage and we’ll get at least £40k a year in addition. We’re taking the view that we’d rather enjoy life now whilst kids are at home and we’re working hard.

A couple of years ago, a financial journalist Cassandra wrote an article suggesting that all those people planning to sell their large houses to fund retirement were going to run into the twin brick walls of a smaller buying generation and a glut of family properties for sale. Which is bad news, both for the vendors of property and their heirs

I disagree with this.

Property will only go up because it's a business now, not just investment. Property developers will take larger properties on and turn them in to a bunch of smaller flats like is done already in and around London. Globalisation means that we are going to get higher levels of immigration, not less. Brexit will just change where they come from. I think I read an article a day or so ago about the loss of European immigrants being replaced by Asian immigrants in the NHS. In order to get trade deals, more of that will probably happen. The more people in the country = more demand for housing = higher rents = people doing anything to buy property and the property prices rising

And I know many people of my age (mid 50s) who have no pension at all.

More fool them. I'm not that far off your age (mid 40s) and joining work pension schemes was always advised ever since i started full time work in the early 90s. If you've consistently ignored that advice and got to your 50s without a pension, that's very short-sighted.

Putting your house in your childrens' names and then surviving 7 years might help with inheritance tax but it won't help if you need funding for care. It would be regarded as "deliberate deprivation of assets" and Councils can make a claim on it.

Also has anyone considered what the change to stamp duty (being applied to sellers instead) is going to do to the property market?

You will have far more people who cannot afford to leave meaning less housing stock overall. Houses will be going up.

I rent, but have no debt whatsoever. I pay into private pension scheme too, and I also expect to receive full state pension as I have been paying into national insurance too.

I might not have equity from property, but I consider myself well off because I live within my means.

It is risky. People are living longer, at the same time lots of people dont make it past 70, there has been lots of deaths in the area lately, most of the older residents raised their families here so all around 65 to 70.
I see lots of people in really bad health too.
If I get to 70 without to many health issues I'll be happy enough, I know it isn't particularly old but not young either.

Every now and again this type of thread comes up and gets me worrying

I have a work based pension but it's not great from what I can tell (I don't really understand and will probably have to sit down with my dad)

I'm 33 at the moment and a single parent so haven nothing left to save to put into a private pension. There are opportunities to increase earning potential a bit as I move up the scales but it's still scary.

I am in social housing too and doubt I will ever be in a position to own my own home.

I'm hoping that when DS is older and working himself, I may be able to start an ISA or something (recommended over a private pension by my dad)

Our plan is to pay off the mortgage ASAP and then look into private pensions. I'm just grateful to be on the property ladder.

Let's face it, many (most?) women in their 70s and 80s didn't work, or if they did, they were part-time.

Err - yes, they did. Are you sure you weren't thinking of the 50's/60's.

They didn't say women didn't work much/not FT in the 70s or 80s, they said women who are in their 70s/80s now.

Oh and by the time it comes to retirement age for me, there may not be a state one with the way things are going.

I would be happy to work past 68, but that depends on me still having all my faculties

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).

When pension funds buy shares in a company they're not buying them from the company, they're buying them from other investors who happen to be selling at the time. So they don't benefit directly, and as PP pointed out, it's certainly not going to hurt their sales.

What did you do with the money that didn't go into a pension?

I also worry about the people on interest only mortgages who dont seem to understand that they also have to pay back the capital.

I am in social housing too and doubt I will ever be in a position to own my own home
That is a bonus as you'll have a home in old age.
Hopefully there will be a pension fund, employment is constantly rising, by 37 you'll be in a better decision to put money away, you'll have 30 years to save some retiring at 67.

2 people I work, have told me they have opted out of the work pension as they don’t see the point and would rather have the money now. They will get to retirement age and expect help. This sums up the current generation. There are probably a whole lot more.

It's not about getting to retirement age & expecting help it's about being able to afford to live now!

I pay £35 a month into my workplace pension & I'm seriously considering opting out as that £35 is a weeks food shop for me & DD or a weeks fuel to get to work - things I need now.

I'm convinced there'll be no state pension by the time I retire at 68 (if they don't raise the age again before I get there) we'll all be on a version of UC!

£167 p/w (state pension) is enough not to have to starve or freeze. Retirees who rent can get housing benefit so the 167 is just for food and bills. When I was a single parent on benefits I got £120 a week for me and 2 kids for bills and food and we managed. Yes there were no luxuries but we were never cold or hungry. I know lots of working people who don’t have nearly £700 a month left after rent and commuting costs.

It’s true. It is those who have scrimped and scraped to buy a small home who will be worst hit. They will have to budget for home repairs whereas renters don’t. Or those with just enough savings not to get additional help, but not enough to have a good lifestyle. Sadly, it’s those people who have tried to sort themselves out, who will find it comes back to shoot them in the foot!

I have had to take a pragmatic approach. I am nearly 50 and live alone. It’s too late for me to sort a decent pension now, numerous reasons why I hadn’t done so earlier. But I live in SH so housing benefit will cover my rent. I won’t have any household repairs. I don’t drive and have never had a car (live in London so I don’t need one). I work right now but I spend around 100-120 a week on food and bills so yes 167 will cover that, with a small amount left over. There is no point in me having more than 10k in the bank upon retirement because it will be docked from any benefits I get. It may be a selfish attitude but what’s the alternative? I can’t be worrying about how “unsustainable” it all is or what will happen to future generations. I have to look after myself.

I dropped out of my first degree, completed a 2nd but then could only get a cash in hand job so retrained (1 yr post graduate course).

That's a lot of years not paying in. I wonder, would it make sense to buy back some years for my state pension?

Used money not put into pension to (a) create deposit for flat 1, then after that mortgage paid (b) bought property 2 using some capital from flat 1

What will become of us all?

I fear you'll live in poverty in your old age. All the people saying they'll just keep working, what if ill health prevents you? What is no one wants to employ someone of 75 years old? It's a very risky thing indeed to save little or nothing for your old age. Whether you pay into a pension scheme, invest wisely, buy property you can sell, whatever you do, do something. It shocks me how many people just shrug their shoulders and hope that someone else will pay for them. Have you looked at what the OAP is these days? Have you considered how you will live on it, if you're unable to work?

I was watching that programme 'Broke' that was on BBC2 and in the first episode there was a couple in their 50s living waaaay beyond their means. They were MC, but lived in a coucil flat, he was an Uber driver, she taught the odd Pilates class, but otherwise seemed to do bugger all and her lack of concern for the future was chilling and, I think, very typical of large numbers of people who are frittering away their last decent years of potential earning by hoping for the best, yet not preparing for the worst.

What would happen, Missconduct, if no one wanted to buy shares in things which kill/wreck the plant? Many large organisation/banks/churches abstain from making money by investments in things which are morally abhorrent. Are you saying that what they are doing is pointless?

I’m the same age as you, OP, and do not recognise taking out loans for everything. I did it in my younger days for cars and house repairs that were essential, but never for kitchens, holidays and the like. Those things were saved for.

Re pensions - I have a hotch potch of arrangements as I’ve moved work, some final salary and some money purchase. When it was the latter, I put in the maximum amount I was allowed to. So I will have several pensions, none of which would be lavish on their own, but taken together I will be OK.

It is possible to save into ethical funds - we do this for our other investments and specified a number of exclusions.

Not saying I'm whiter than white by a long stretch. Just that I'd rather try to funnel my money into things I believe in rather than being willfully blind.