What is your pension status? If you hadn't started it by late thirties, what would you do?

[Latetofinancialparty]

I feel utterly clueless. When I try to learn about pensions, use forecasting tools etc, it seems really giant sums of money would need to be saved every month?

I have a disability which has really hampered my earning potential, despite being well educated. Have some (modestly) good work opportunities now that I am very grateful for, and was hoping to finally start saving this year. But is it simply too late for me to realistically save a good amount?

It's especially worrying because obviously if my disability gets worse my future earning power might stagnate again.

Anybody have a shaky start with a pension, and feeling more confident about it now?

What is your current pension like and how did you do it?

@Beddfellows only if she were to purchase a single life annuity without guarantees. That is only one option of many.

Better late than never OP.

@SleepingRedSnowBootsAndThePea Yes, I was thinking about the annuity scenario, which is clearly now out of date, though I'm not sure about the current position with final salary schemes.

I am in a defined pension scheme (not final salary sadly). You can usally nomiate someone to get a pay out if you die before you get a chance to claim it.

Many people in decent defined benefit scheme use this, rather than life insurance especially if they don't have any dependents. When my sister in law's husband died suddenly her pay out from his pension paid off the mortgage.

A pension is a two step process, the building up of a 'pot' and the way you take out of that pot. For most people this is buying an 'annuity' ie you give your money to a pension provider and they pay you a pension every month.

@sashh I don' think annuity is the way to go for most people these days. As @SleepingRedSnowBootsAndThePea says upthread they are very poor value.

I retired about 18 months ago and I am taking money out of my pension pot via drawdown.

Fair enough.

It's still a two stage process, for most people though, with various options at stage 2.

I'm only 27 but I've been at my job since I was 16 and fresh out of school and have been paying max contributions since I was 17 if I continue in my job then I should have a very decent either lump sum or monthly payment when I retire in 40 years (if we're allowed to retire by then 🙄🙄 )

DH has just started to receive money from a final salary scheme he was in a few jobs back. If he goes before me then apparently I continue to get 50%.

Interestingly he had the choice of:
a) Amount £X per year
b) Largish one of payment plus smaller amount £x per year.

After careful consideration he chose option b). Yet if he dies first then the amount I would get is 50% of the larger amount £X. Surprised at that but that is clearly what is described in the details of the scheme.

Martin's money tips had advice on how much you need to put away according to age

It's never too late and iou have plenty of time to invest and grow a pension pot.