To ask if anyone else aged 45 and over hasn't got a gold plated pension and other funds

[ChristmasShearwater]

I know you're out there. Show yourselves
Its not a TAAT - it's a topic that comes up frequently on MN and every bugger other than me seems sorted!

My civil service pension is currently projecting £600 per mth if (when) I retire at 60.

On the basis we own our house and don’t have a mortgage, plus won’t have to fund ds2 at Uni at that point, that’s my plan.

Dh will keep working though as he’s had a bit of a chequered work history.

I'm not going to buy an annuity with my pension fund: I'm going to drawdown 5% a year. I understand the (probably small) risk that the capital might be at risk but annuities just seem like poor value.

I will only have the state pension but I live in an HA property so I’ll get full housing benefit (no bedroom tax for pensioners) and no repair bills. If there is an issue/changes re HB I can rent out one room for almost as much as my full rent. I don’t drive so no car/running costs. Full council tax relief.

So I’ll get just shy of £180 per week basic state pension. More if I have a health issue or whatever. My mum gets approx £1000 p/m and she’s still mobile etc. My utilities cost approx £30 a week. That leaves me £150 a week with only food left to buy. I think that’s fine. I know working people who manage on less, after all outgoings.

My only real expense currently is travel (in normal times) I do that a lot and otherwise live frugally. My thinking is, if post 67 I am still fit for long haul flights etc. Then I’ll just work a couple of days a week to pay for it. In my job that’s perfectly possible. If I’m too unfit to work 2 days, then I’m too unfit to travel and vice versa. At which point I will stay at home and stop working. However I am doing all my travelling during my working years as I want to enjoy it while I can. So if I can’t travel I won’t feel I’ve missed out.

So in summary I am not worried at all. I don’t foresee an issue. I’m already in my 50s so don’t expect huge changes in how things work between now and then. There will always have to be a state pension, even if it ends up being means tested. Everything I buy for the house now is bought with the view of lasting until I die! (Except appliances). I’m not big on fashion/beauty treatments etc. I’m happy reading, crafting, etc. Nothing that costs huge amounts.

Currently you need £100k to purchase a £4k annuity, therefore you'd need £250k ish for a £10k one
So you need to claim the annuity for 25 years to break even. Realistically who lives for 25 years after retirement? The average lifespan is 81 - you’d have to retire at 56 just to break even! By the time I retire the retirement age will be 68-70, I have no chance of claiming 25 years pension. It just seems like you’d be better off with that money in the bank.

49,self employed and no private pension.
Trying to overpay mortgage before DS gets to 18 in four years when I lose tax credits and maintanance and then I will make plans to have a lodger. I work as a cleaner and can't see me doing this in my late sixties!

Me. LP of two with no pension. I'm so screwed but I just haven't a clue what to do about it and too late to sort it anyway, probably (I'm 49).

I have enough savings in the bank to last me a year but that's it.

Yep, me. Had a succession of jobs in private sector, none of the employers had pension schemes, so very late to the party in terms of saving. These weren't tin pot unskilled jobs either - I'm a qualified accountant. Unfortunately, never lived near the major cities, so without relocating, I just had a choice of small, private practices to work at. I contributed what I could into pensions, but it was pitiful as wages were low too - eg I've never even earned enough to pay higher rate tax, even when working full time! I laugh at people who think professionals in the private sector earn shed loads of cash - the lucky few who get top jobs in the big city firms maybe, but certainly not in small regional practices.

@Borka

Me, my latest pension statement forecasts an annual income of £1300 when I retire.

Yep, same as me. Not worth the paper it’s written on.

I am glad that I read this thread , because it reminded me to check my National Insurance record..and I thought that because I hadn't received any bill or reminder from NI since leaving work in 2019 at age 61 with a full (as then) contribution record that id paid enough for full state pension..

Seems not..as I was 'opted out' due to my previous public sector employment before 2016 and so still have 3 years to pay if I want to receive the full state pension .. So I just spent a jolly 30 mins waiting on the phone to HMRC NI .. and they are now billing me quarterly! But you do have to request them to do so , as no longer to they automatically let you know that you need to pay to top up ..

Luckily I am in a position to make up the shortfall. But if you are not working and have no other NI credits .. ( such as carers or childcare ) and can afford to pay ... dont let it build up as it makes quite a difference ..

@Monoxide

Currently you need £100k to purchase a £4k annuity, therefore you'd need £250k ish for a £10k one So you need to claim the annuity for 25 years to break even. Realistically who lives for 25 years after retirement? The average lifespan is 81 - you’d have to retire at 56 just to break even! By the time I retire the retirement age will be 68-70, I have no chance of claiming 25 years pension. It just seems like you’d be better off with that money in the bank.

My parents lived until 94 and 96 .. MIL is 94 this year and still living independently.. So hopefully we will both make old bones too..

I've been working for the NHS for around 5 years and currently paying into pension at 5% (ish). As I'm early fifties, that's not so much. Previously worked for a bank for 16 years though and paid into pension all that time, but the funds are just sat there frozen at the moment. Have to say here, I've never been a high earner, always at clerical levels not salary's never been brilliant. Would I be better moving the frozen pension into the NHS? Could do with some advice really I think otherwise I may have to work til I drop dead!

I am disabled and rely on the highest rates of pip indefinitely- I have about £3000k in a pension from when I used to work which I think works out at £6 per year on top of the state pension. Going to be rolling in it.

I have a teacher's pension which is currently forecasting about £13k a year. But I rent since divorcing and will never afford to own a property, so will work until I die. My death in service grant seems quite good though, so dd may be in a better position if that does happen.

Only have about £1000 saved pension wise and am 52. Am lucky house wise though, so am hoping to be able to sell it later and get some pension that way. If not I’ll rent rooms out to lodgers.

Regret not planning a lot of things better and am trying to instil it all into my teen dc.

You're not alone OP. And it's refreshing to read a post where people aren't loaded, though shit for everyone. I paid into a private pension for 10 years. But then 2 kids with additional needs came and I'm getting divorced from a toxic ex so I'm pretty fucked. Will have to move somewhere tiny and hope i can also do some equity release, as well as work...

Been self employed ( both of us ) for many years , all our money is tied up in the business , which we tried to sell
Strangely enough , no one wants to buy a business in these Covid times , so we’ll just carry on working
I’m 60 already , have a small pension I paid into many years ago ( before I was married ) but nowhere near enough to stop working any time soon ( sadly )

Me also unlikely to get a state pension. I'll be working until I can't and saving in the meantime.

I’m 58. Final salary pension gave me a lump sum of £250k about 2 years ago, which was invested in home renovations, holidays and a decent car. Still have the similar to come in maybe another 2 years from other pensions.

Paid in for a lot of years. Worked in finance.

Pay into a good pension scheme, pay as much as you can. Never smoke. My only two pieces of advice to anyone.

@Ilikeknitting.

As op said. Read the room. Not the thread for you. !

My pension from my first job is worth about £400 a year. Subsequent ones are rolled in together and they're not worth a lot either. SAHP for many years (from necessity rather than desire) so paid in nothing for some time. Recent job is part time and not been there long so that won't be worth a lot either. Got 8 years to go before retirement. DH retired already and gets about £500 a month from one pension, sod all from another.

We are tail end of what people describe as the baby boomer generation. Unlike many, neither of us have benefited from that.

Left my husband a couple of years back. We’d agreed he’d work full time as his wage was much better than mine. Now my pension is substantially under par. I’m 52 and catching up at this stage looks very difficult indeed.

So is it better so save every penny towards your pension and not enjoy life only for you to be to old / sick to enjoy retirement, not be able to travel etc and the government ends up taking your assets to pay for your care home costs.

@Ilikeknitting

I’m 58. Final salary pension gave me a lump sum of £250k about 2 years ago, which was invested in home renovations, holidays and a decent car. Still have the similar to come in maybe another 2 years from other pensions.

Paid in for a lot of years. Worked in finance.

Pay into a good pension scheme, pay as much as you can. Never smoke. My only two pieces of advice to anyone.

Some people's lives are a bit more complicated than that.

I’m 34 and worried! I’ve just started work as a TA so I will have whatever I get from that pension 😕 my husband is 44 and only has the workplace pension that was started a few years ago. We rent. 😞

I’m 39 and currently have about £45k in a private pension, determined to get it to 50k by the time I’m 40 and hopefully by the time I’m 50 it’ll be £100k.
My IFA invests it and I’m currently getting good returns of 20%. My DP is 45 and only just started paying in to a pension and only because I nagged him