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

126 replies

Helpmenotpanic · 10/02/2024 16:05

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!!!

OP posts:

rainbowunicorn · 12/02/2024 20:34

5thCommandment · 11/02/2024 07:43

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.

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The 35 years contributions only applies to people who start paying NI from 2016 onwards. The calculation is different for people that have been working and paying contributions before that. Someone of 45 may very well not be far off the full amount needed in their circumstances.

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