To not prioritise my pension?

[Towardsthenorth]

My parents paid loads into their pensions and both died without really benefiting from them. In part, I do attribute their early deaths down to stress leading to poor decisions.

AIBU then in not worrying about working PT because of pension)

My Mum never worried about a pension & died age 52, so I can see where you're coming from. I'm not worried about mine because I'm very good at living within my means (hence username ). Agree with PP who says you do you. There is no way I would have thought I'd be working until age 67 before getting my state pension when I entered the workforce. I say this as an example of no-one knowing what the lay of the land will be when you are due your pension.

I think it depends whether for example you own a property. My parents had a tiny pension but their house trembled in value and they took out their maximum mortgage twenty years ago.had they been more risk averse or paid more into their pension, they wouldn't have been able to get the house. Twenty years later - they can downsize and have plenty of money for their retirement. But thats London where houses went from 500k to 1.5mil in twenty years. Not sure that this will happen again. But downsizing is always an option as a three bed house will always be more than a one bed flat even if prices crash

We do own property but then if we didn’t I’d definitely prioritise that over pension.

On the fence. My parents provided for themselves and having a comfortable retirement and are in their 80s. Parents sibling and partner didnt. Have watched them scrape, lose their house as couldnt afford it, end up in horrible rented accomadation finally offered council elderly housing in late 60s. I would not want that

But there is a middle ground. Not prioritising a pension just means I think I am inclined to enjoy life a bit now - part time, and so on - rather than not having a pension at all.

And if you do own property then the state pension isn’t too bad, as far as I can see.

My DF died before he could take his private or OAP pension, and he didn’t leave a will so second wife got everything.
So personally I’d say don’t sweat it if you can’t afford it.
I personally prefer money in the bank that I can get anytime, rather than waiting to be old enough to get at it.

@Towardsthenorth

But there is a middle ground. Not prioritising a pension just means I think I am inclined to enjoy life a bit now - part time, and so on - rather than not having a pension at all.

And if you do own property then the state pension isn’t too bad, as far as I can see.

I am 46 and assume that there won't be a state pension if I get there, or it will be a lot lower, or means tested.

I think that if you have property and you're enjoying life then it sounds like you could prioritise saving and investing.

It's not just a choice between working more or not. There are other ways to save for the future.

My father in -law is 91, he has a local government pension(so do I). He was made redundant in his late 50s and hasn't worked since. I think he's got his money's worth, don't you?

The benefit of planning and paying into a pension now means you shouldn’t be living on the breadline in your retirement. We choose to plan for our retirement but if we die before then/early into retirement, then our DC will still benefit.

Obviously everyone’s financial situation varies but if you can save for retirement then I think you should, or have some sort of other backup plan like investing in property, or stocks and shares etc. You could be retired for 30-40 years and that’s a long time living on a tiny state pension.

@loislovesstewie

My father in -law is 91, he has a local government pension(so do I). He was made redundant in his late 50s and hasn't worked since. I think he's got his money's worth, don't you?

Definitely! My dad had an excellent pension too. He used to tell me frequently how I should choose jobs according to pension.

It’s more to do with not placing all my eggs in a future basket which may never be needed.

Don't place all your eggs (money) in any basket, future pension or current spending. Place a bit in each; enjoy life today and provide for the future.

Check (don't guess / assume) how many years National Insurance contributions you have, and that you'll reach 35 years in due course to receive a full pension (otherwise consider voluntary contributions to make up the shortfall). Check where you are with your workplace pension. This will help you decide whether to go part-time, or continue full-time at least for now.

You own your house and have some level of workplace pension, so are well-placed to have a nice life now and when retired if you are sensible.

To not plan for retirement is foolhardy, and if you are able to save/invest for it then you should (obviously some just can’t do this).

How many pensioners are leading a comfortable retirement with nothing but the paltry state pension? It is not unheard of for many pensioners to be unable to afford heating, decent food etc. They don’t get an annual heating allowance and free TV license because they have ample income. That is possibly the future for those who choose to ignore that beyond retirement they could still live for a few more decades yet, and will need more than the state pension to live a good life rather than just live hand to mouth on very little ££.

It wasn’t so much that they cut themselves off, more than they both persisted in jobs they loathed. At one point, my mother was caring for her elderly parents too and started to drink very heavily, which led to her death.

But earlier you said your father retired at 53, which is young. And it seems your mother died from alcoholism, not from the effects of continuing to work in order to maximise her pension.

Get some advice — someone who can crunch the numbers, work out how much your state and work pension will be — and take it from there. I wouldn't want to be heading into my 60s and 70s on the minimum, but maybe you have family who'll bolster you and inheritances to come and it makes sense for you.

Why do you assume that, @EmmaH2022? Has there been any suggestion that the state pension will be scrapped?

(Just in case, that is a genuine question borne out of curiosity not an aggressive grilling!)

@loislovesstewie but if I was made redundant in ten years, I’m not sure my parents would have recommended never working again. Well, perhaps my dad, although he retired rather than being made redundant!

I suppose if it doesn’t much matter to you where you work or how long you spend there choosing a job by pension makes sense but to me, it seems to suggest misery and frugality in 30s, 40s and 50s in exchange for living it up in your 60s and beyond, except you may not get there.

You can’t live totally in the moment but I don’t think it’s wise to solely live in the future either.

I felt a little like you .My DF died when I was young ,and had no retirement to speak of .I have been a SAHM for a while now ,and previously had a small pension from my FT job in my 20s and 30s .I think its always hard to see into the future TBH.I mean you could live to 100 and need every penny . I often think peoples expectations of Retirement can be unrealistic as well .People on average salaries expect world class cruises,retirement bungalows and so on .Would you want a 5 star retirement funded by a longer working life .Or happy with a break in England and a small flat?

@Pluvia, he retired after her death, then died himself a few years later.

The current state pension is just under £180 a week, which tbh is more than I get now. I earn more at the moment, but then my outgoings are high.

Op did you not inherit your dp pensions?

What's a fortune in old age?

For me it would be security to buy a new car if needed.
Pay for works around the House, new heating And not having to worrying.

Money to spend on DC and if I'm privileged enough.. GC

It depends on both your future goals and current finances.

I would like to retire in my 50’s, so I have paid heavily into my pension and I have overpaid my mortgage. If I die before 50 50% of my pension goes to my husband, the rest will go to my children.

My mum doesn’t have a private pension, she also didn’t have full stamp when she turned 65, if it wasn’t for her son buying her a house and being able to give her an allowance she would be having to work at least 20 hours a week as a 68 year old.

I think it's about balance, and actually your posts all you are planning to do is get a better balance. Working part time in a well paid job sounds like a sensible balance. And might give you the headspace to think about whether there is a job you would enjoy more etc too

The point is that when he was paying into his pension he didn't notice it. He still earned enough to have a good lifestyle, and now he doesn't have to worry about 'heating or eating' or whether he can afford any little luxury. Clearly at 91 he's not gadding about as much, but in all honesty it wasn't an either/or situation. He saved into a pension but also had enough to pay his way when he was working.

I think you would be very silly if you were one of these people choosing not to contribute to their workplace scheme just to have a little bit extra now. However I don’t see a problem with sacrificing extra pension to be able to have a less stressful life of part time working

Anyway as ever these things are about balance.

If you can put even 10 away each months into a sipp or an ISA... invested into companies this Will be better than nothing And at least grow to something by retirement.

But it's a luxury to earn enough for pensions

OP - there has been no suggestion, I just think we might be going that way.

Op did you not inherit your dp pensions

No - they stopped upon their deaths, although I did get a small amount from my mothers as I was still in full time education when she died.

This isn’t about whether or not to pay into a pension, it is about whether or not to add to my stress / workload now and reap the benefits in retirement and the latter isn’t something I feel I want to do.