Pension or lack of at 48

[Katie7June]

My pension is non existent. Looking at paying out £50 a month on retirement. Is there anything I can do to sort this out? I have hardly any extra at the end of the month. After looking at some pension calculators even if I manage to save £400 a month it looks like far too little too late. Husband the same situation minimum payments in a low paying job. Do I need to use the works pension or is there a better way. I’m beginning to panic do any help would be much appreciated. Ahhhhhhh!

I'm in a similar boat. Years of shit jobs that work around the kids..

You have nearly 20 years to pay into your pension scheme if you work to state pension age. Works pension is supposed to be better as employers contribute too.

It’s crap isn’t it. Wish I had looked at this years ago but it’s not like there’s been loads of spare money hanging around.

Even with 20 years the calculators are showing around £4000 a year!

Same age and only started myself a year or two ago.

No excuse from me, just bad with money.

All I can say is do something now - book in with 3 financial advisers (get a personal recommendation if you can) and start getting something in place.

Don't delay.

Sadly this isn't unusual. You mustn't feel judged by people who have had better opportunities than you. When I had a young family we struggled to put food on the table - a pension was a long way off of my radar.

The good news is that you have time in hand. If your employer offers a scheme then do join it now. They will add contributions to whatever you put in, so it's like having a pay rise. I have stepped back into a low paid part time job, and put £14 per month into the pension scheme - but my employer adds another £30! To not do this would be like turning down free money!

Thanks partyatthepalace. Do you think you can do enough to turn it round? Do you mind me asking how much you are putting in now and is it in your works one or something else?

Do feel a bit judged and a lot stupid to be honest! But at the same time not sure what we could have done different. Going to book in with an advisor this month snd see what can be done.

1. don't panic, you can't wind back the clock.
2. You need to give yourself a financial grilling. Go through everything you spend and be ruthless with contracts and subscriptions. moneysavingexpert.com is a good place to get budget planners and ideas for saving money. Work out what you spend and why.
3. decide how much you need to save into the pension pot. Then work out your budget accordingly. You will need to make some cutbacks, but it will be worth it in the long run.
4. 100% use your employers scheme.

If your employer offers a scheme (likely) join it.

I am putting a lot in right now! But my job is very insecure so really not sure I will be able to continue with it.

All I can say is just look forward not back - you will feel so much better if you do. We've made mistakes - but so have millions of people.

I don't have a work one because freelance, but think they are a good idea if you can.

Good luck

It's never too late. Tax relief on your pension contributions means of course, it's worth doing especially with another 20 yrs to go before the state pension kicks in.

It's not too late but be realistic that about what you are going to get at the end of it - it's not going to be £1000s per year

You need to use some online calculators about what you "think" you might need financially when you retire?

Will your mortgage be paid off - hope so - otherwise that is a huge issue and you'll need to continue working

Look at how much your house is worth if you'lll be mortgage free by retirement - it's by far the biggest asset you'll own but you still need money via a pension to heat it etc or you'll need to sell and downsize and live off the equity

If you don't have a house and only rent then you'll need to look at what help there is for retirees in terms of housing benefit

The thing to do is look at it as a savings plan. So you are saving and employer ( or gov if private pension ) are adding extra each month on top for free. So a no brainer. You couldnt earn anywhere near the same amount in interest in a savings account at present either.
And you do not need to take an annuity at retirement unless you want to ( which gives so much a year ) . You can choose
to draw down cash as you need it instead ( tax free if you stay under the limit ) . So you will have a nest egg to supplement the state pension and cushion you in retirement.
It really is that simple and every penny saved now will make your retirement that bit more comfortable.
I think pensions seem a bit overwhelming and scary but are really just a tax efficient way of saving.

Op, remember that if you pay into your works pension, your employer and the govt will pay in too. It is definitely worth doing with another 20 years to run.

Also remember £4000 a year will be in addition to the state pension.

If you and your DH have bought a house by then, you won't pay rent or mortgage out of your pension, and any children will have left home by then, meaning you could downsize to a smaller home which is less expensive to run. You could move to a less expensive area. There are lots of ways to flex.

£4k a year plus £9k state pension equals £13k x 2 people £26k a year. If you're not having to pay rent because your mortgage free then this isn't too bad.

OP I don’t think you are alone. There are so many people with nothing left at the end of the month to save. Do you own your own home or rent?

£4K on top of state pension starts to look do-able if you both have that.

If you can’t afford your rent there will be HB if needed and eligible. If your mortgage is paid off even better.

Having your mortgage paid off will make a huge difference. As others have said 4K + state pension isn’t too bad if you both have this much.

You can often buy APCs (Additional Pension Contributions) or AVCs (Additional Voluntary Contributions) through your work scheme. Have a look at these and see which suits you best.

Going to speak to work in the morning. Don’t think it would be possible for us both to put away enough for us both to get to the £4000 a month payout. Thanks for all the advice.

I think ops are saying 4000 a year each plus state pension is possible to live on as a couple

Ppl not ops

Yes, £4K a year plus state pension!

£4K a month would be a massive pension on top of state. In my life, anyway!

The trouble with a low income is the unexpected bills. Even if your mortgage is paid off there will still be maintenance on the house. It's the unexpected bills that are the problem even when you make ends meet on a monthly basis.

OP, look for a pension thread that was on here last week. There was a lot of good advice for professional advisors. It was about getting a job in companies that offer a defined pension scheme (or similar). A professional pointed out that it's still possible at 50 years old to seek a medium to well-paid role in local government, civil service etc and get £10-20k pension per year from that for the last 16 years of our work life. That on top of £8k state pension would make all the difference.