To think Mumsnet is not an accurate reflection of most women’s pension provision?

[Helpmenotpanic]

I have name changed for this although I am a regular poster.

I have always found Mumsnet really supportive but recently I think I have been hanging around on the wrong threads, because I am starting to feel worse about my life! In particular, there have been quite a few pension threads, as this has been in the news recently.

It feels like everyone on mumsnet has retired/is going to retire on at least £50,000 per year or more and it’s all down to “working hard”.

my future looks very different despite hard work and planning.

I have worked non stop since graduating from university. Full time or nearly full time, earning a pretty decent salary that probably puts me in the top 10%. I even only took a short maternity leave. BUT - it has always been private sector and various events completely outside of my control (including becoming a lone parent with a tiny baby following divorce) have meant all my efforts have been focused on keeping us financially stable right now.

So at 50, my work pension pot is currently a measly £50,000. I have £100,000 in savings (to keep me and teen dd afloat if I lose my job) and I am still paying a mortgage. I still have quite a few years left on my mortgage (thanks to my divorce, which was not my choice) so I suspect there will come a
point where I will probably use my savings to help pay off my mortgage as in the future I think my salary will be significantly lower (for various reasons I don’t think I can stay in my current job past 55).

i think there must be lots of women like me, or in fact much worse off, but maybe just not on the mumsnet pension threads!!!

I think a lot of people underestimate the security owning your home gives... I rent, have always rented, can't afford to get out of renting.. so a huge chunk of anything I will have when I retire is going to continue to go on housing costs which are already astronomical so sadly for me, OP, you're in a hugely privileged position (and that's not even counting the £100k savings - that's HUGE!)

Have a proper look at your pension statement. With the LGPS they give two figures, what it's worth now (if you were to leave/stop contributing) and your predicted pension at SPA if you continue making similar contributions until then. It might be that £123 a month is what it's worth right now. You'll also get a death in service benefit.

I am foreign so my view is probably skewed slightly. At school we spent a lot of time understanding pensions and compound interest. At home we were told how we need to build a pension and put as much as possible aside as early as possible.

I am therefore looking a very good pension when I come to retire. I was also a single mum for a while before I met my partner. I prioritised pension saving over everything. Never put less than 10%. Even when my wage was low and I had nursery fees.

In contrast in the UK priority always seems to be housing and owning your own home as early as possible. I do own my own mortgaged house now but I always prioritised pension over saving for a deposit.

I think that pension awareness and education in the UK is now at the forefront and things will shift for the next generation of women.

The Civil Service is crying out for experienced people in senior(ish) roles, so if a gold plated pension is what you want then it’s easily accessible only be aware that final salary pension schemes closed in 2015 and your pay is likely to be significantly less than for comparable roles in the private sector. Pension is still good though some of us stay/join for that reason and accept that our salary will be lower. You are unlikely to earn in the top 10%.

I have to admit I come on MN mainly for the entertainment value.

If what people post on here was my life and all I had to worry about I would be a very happy person

In some cases women make choice to be financially dependent on a man from their late 20s and may come to regret if in their late 50s.

Agree wholeheartedly with this

Think it's one of those threads where the OP wants reactions from people worse off in order to feel better.

100% this is the case!

"Oh woe is me I only have £100k in my bank and therefore I am a peasant".

🤨🤨🤨

I am so glad ZebraPensAreLife posted this because it gives such a clear picture of the gender gap.

In contrast to the women who are very comfortably off in retirement, one thing I have noticed on MN is how risky it can be to marry/live with a man who keeps his assets hidden so that pensions are not split fairly if the relationship ends.

Keep on doing what you are doing HelpMeNotPanic. I think the trick is to start retirement with as little debt as possible and to split your money into an everyday 'regular' budget and another one for things like a new boiler.

Thank you very much for the helpful cooments.

Correct

Agree with everyone your doing so well. Ignore the other threads.

I dont have a pension pot as I stopped working what I do have is tiny tiny.
But instead I have savings and investments mainly gold and land.
DH has a good pension pot so together and inheritance on both sides later on. So whem the time comes we will be fine. We don't stress about it and try to focus on the here and now. We are sensible with savings and spending.
Have no clue if you will wake up in the morning let alone retire.

But it's not just Mumsnet. Here's a recent BBC article which suggests you'll need more than £31k a year to retire. So you are very behind. People saying you are doing well are just in a worse situation than you. I really wouldn't take that advice.

https://www.bbc.co.uk/news/business-68222807

Truth is, we are never taught about pensions or given any financial literacy. As a result, many of us may very well die in poverty. I'm in my mid 30s and just figuring it now- I've wasted a decade of my working life where I should have been contributing and benefiting from compound interest. Only option is to work harder now.

If I were you, I would seriously consider paying for an hour or two with a good pension adviser. They'll be able to tell you how best to distribute your £150k and maximise any returns while minimising tax.

Is your 100k in a stocks and shares ISA?

You're 45 so can't possibly have 35 year's contributions for the state "pension"

I say "pension" as it's tiny, and there's no way I'm working until my late 60s either.

As the poster above me says, the issue is education - pensions are not taught. Everyone should have to contribute 10% from 18 until the age they choose to retire, then you've have a decent pot.

Also disagree that state job pensions are better - the contribution percentage from the employer is better that private sector, but it's a percentage of a lower salary and requires contributions for decades. A slightly lower contribution from a higher private sector salary where you can retire sooner and control your investments is substantially better, again - education.

I feel sorry for those over 60 with small pots, you didn't get the guidance you should have, but anyone in their 20-40s; bluntly there is no excuse, so much help on the net, take responsibility of your future and plan appropriately.

OP has 150k in savings, she would be wiser to put it in ISAs or use it to replace her salary so massive contributions on gross pay could go into her pension. She would effectively contribute 200k+ vs saving 150k. Way more if she's a higher rate tax payer.

@5thCommandment
I feel sorry for those over 60 with small pots, you didn't get the guidance you should have, but anyone in their 20-40s; bluntly there is no excuse, so much help on the net, take responsibility of your future and plan appropriately.

I disagree. I'm over 60 and I knew about pensions and was paying into one when I was 17. I just couldn't imagine myself ever being old enough for them to matter.

I just need a roof over my head and to pay my bills when I'm retired

Same. I’m in my 50s and when it comes to holidays I’m already more or less done with long haul. It’s so exhausting. I’m a committed single and happy now to holiday alone but at 70+, I doubt it. Even just going for weekends away and stuff isn’t much fun alone. I’m fine with being alone, but a lot of people are planning “couple” things which doesn’t apply to me.

I have a secure tenancy in SH so I won’t have any house maintenance to worry about. Live in London and get my free Oyster card at 60! So no car to maintain, I can’t even drive so that’s not a factor. But being in London, there’s plenty of free/low cost stuff for retirees to do. I also enjoy lots of cheap hobbies, crafting and suchlike.

When I work out how much income is mine now (factoring in things I won’t have to pay when I’m retired). I’m left with approx 1k per month. State pension is currently £880 per month (or due to rise to that soon) to pay for the same things. I manage perfectly fine now and could cope with a £30 a week reduction and still be fine. I’ve been investing in my home, decent furniture, decorating throughout etc. To keep costs minimal later on.

I won’t have the retirement that some people on here will have. But it’s not one I’m seeking. I’m looking forward to being able to slow down and spend my time pottering around!

I think that BBC article is very misleading and has worried lots of people. I get my state pension in April this year and have had my teachers pension since I was 60. Like everyone, the cost of living is a worry. We've scaled back on shopping and going out, and I'm grateful that we've paid off our mortgage. We should downside but there doesn't seem to be anything available round here. I worry about how/if my 3 children, all in their later twenties, actually one just 30, will afford somewhere to buy.

@5thCommandment I have full contributions to date, I thought that was obviously what I mean- I'm hardly expecting to draw a state pension at 45 🙄

I'm sorry if that was confusing for you to understand.

I ramped up my pension contributions a few years ago, as used to just rely on the 10% company contribution.

I’m really concerned about my many friends who became SAHMs 15/20 years. They’re absolutely buggered in terms of pensions.

It isn’t something I’d ever mention though.

It’s actually more of a problem if the husbands leave/die/become incapacitated.

Hopefully future generations will be more savvy.

It’s not (just) about being savvy, though.

Cost of living has got to such a high level that a lot of people simply can’t afford to “ramp up” payments into their pension.

There seem to be a lot of people on MN who can’t understand the reality of living on relatively low wages. It’s like a little bubble on here sometimes.

I've been single for 10+ years and that's really affected my ability to save because having one income to pay for everything is so tough. I've also worked in the charity sector for most of my career and got tiny pension contributions. Now I'm self-employed so get nothing at all. I try to put money into a pension now but with cost of living as it is, it's a struggle.

I have some assets (from an inheritance) and plan to work into my early 70s (perfectly possible in my field) but still worry how it will be.

There are people from all walks of life on Mumsnet - that's what I like about it. I get to find and talk with people who have similar interests, sometimes niche, sometimes not.

Hopefully @Helpmenotpanic has found her pension tribe in this thread, but it's equally valid for Mumsnetters who want to talk about managing larger pension pots to find their tribe too. Neither tribe needs to be silent, and if they don't have much in common on pensions I'm sure they'll find they have things in common on other topics.

There’s a difference between talking about how to manage larger pension pots (which is obviously fine) and bragging about how much they have, though. Particularly when the latter comes with a side-order of how poor anyone who doesn’t have the same amount as them is going to be so people should just save more!

Lack of education is an issue.

Yes, there is information out there but you have to know you need to ask. The pension landscape has changed enormously in the last 30 odd years.

When I started work in the late 80s most private sector pensions were some sort of final salary scheme. Some people were in SERPS. There were also company pensions some with a fund but also the pension may have been paid from company funds.

Getting a pension relied on the business staying profitable. This led to some pension scandals (eg Mirror Group, Burlington's) where the pension fund got raided to prop up the company.

It's only since 2012 that employers have had to pay pension contributions and many employers pay the minimum of 3%.

Whe I started work, you had to stay with the company for two years before even becoming eligible to join their pension scheme. And self-invested pensions were way beyond my experience (and income) at that point.