How much savings do you have - in cash and in your pension pot?

[suebfg]

I am 40 and whilst we have quite a lot in savings (over £150k and no mortgage), my pension provision is practically nil. I chose to pay off my mortgage instead of paying into a pension as tbh, I don't trust pensions.

But it does worry me that I have little saved for my retirement - mainly the equity in the house I guess.

Just interested in what others have done.

I should add that you should undertake a risk assessment with the FA and there are plenty of safe options ( as much as anything can be) for investment that still yield reasonable returns

I agree with babydubs most of my friends have lots of cash from money from their parents given as their early inheritance. Its very common in my circle. Its obviously not the only provision people would make but Im only in my 20s so not something I would be worrying about tbh.

early 40s. No savings :(

Mortgage of £90k on £420k house, two pension pots really, one has been frozen for ten years with about £15k in it, plus I have now had my lovely final salary pension scheme from my current employer frozen and I'm contributing to a salary average scheme which is pretty crap

I'm pinning all my hopes on this week's lottery ticket :o

salary average schemes and f/s pensions are often very similar in outcome.. it depends on your career progression - most people peek about their 40's and as the average earnings are usually index linked it's not usually as bad a people think.

"Thread title does annoy a good few of us by the way... It would never be how much savings do you have, but instead How much money have you saved (or how much in savings do you have, perhaps))."

babydubs - I just think that most people do not realise how quickly a fairly decent sized estate can be swallowed up by care/nursing home fees etc.
If your parents have made provision for this and have a huge estate then fair enough but I think this is the exception and most people are going to end up in a bad financial position if they simply rely on "inheritance" and do not make their own pension/retirement provisions.

OrangeFireandGoldashes I am sorry but those figures just don't add up to me

If you are 65 and retire and the average age at death is 79 or 81 then how do you get an average retirement length of 20 or 23 years? As the difference between 79 and 65 is 14 years or 16 years therefore making the average retirement length 14 or 16 years.

The average age at death is a whole life average, includes children and young adults who died. If you have already lived to 65, your expected age of death is higher than the whole life average.

I agree with you there - bad financial planning is bad financial planning, underestimating inheritance is as bad a ignoring pension options.. however for some inheritance is a viable option.

I am up shit creak financially personally with low household income, a mortgage, and zero savings. I am fortunate that I have a Ddad who provides life's luxuries for us, and I will have a decent inheritance coming. However, if I didn't have my Ddad I would still be in a shit financial position with no room for saving for old age. I think in that situation I would rather live in ignorance than look at an even bleaker future - self preservation for those that have no choice unfortunately involves ignoring the inevitable for as long as possible.

I'm sure orange explained the life expectancy thing earlier in the thread, but I can't find it to quote.

Rule 1 : NEVER rely on an inheritance until it is cleared into your bank

Rule 2 : NEVER rely on an inheritance until it is cleared into your bank

Rule 3 : NEVER rely on an inheritance until it is cleared into your bank

As I turned 40 I had NO savings, a large mortgage, two small kids and declining earnings.
Since then work has settled and I now have climbing savings and a long term plan
that does not involve EVER giving any of my money to "pension experts"

Baby - she tried to but it doesn't add up, that is why I replied that it does stack up she wants to change the average age of death for people with pensions so that they have a different average age at death -but you can't just change the average age of death in this country

Here's a link that might help, ivy, if my explanation wasn't clear:

www.retirement-partnership.co.uk/adviser/learn-discuss/about-annuities/lifeexpectancy.aspx

I think that if you have already lived to 65 you are likely to live to 85. Lots of people die younger, so average life expectancy is lower. But if you don't die before 65 your own life expectancy is higher.

On that link, male life expectancy at 65 is 18 years 11 months, female is 22 years 0 months, so pretty close to the 20 and 23 quoted before.

I can retire at 55 on two years top salary because I qualified as a RNMH prior to 1985. So can DH.

Mind you, I'll be so fucked up with stress by then that I'll have to spend it all on therapy .
Also have a private pension. No mortgage, paid off ten years ago. I know we are fortunate.

The current crop of pensioners are (mostly) on Definded Benefit Index Linked pensions, many of which involved lump sums.

Those of us under the age of 50 generally have Defined Contribution pensions.
NOTHING I have seen anywhere gives me any faith at all that a DC pension pot of under £450,000 will give an income higher than the minimum wage.
Return rates are dire, hidden fees are extortionate, risks are excessive.

I have chosen to put my money in ISAs and land.
I do not plan to retire - just incrementally reduce my hours

And be VERY wary of buyiny an Annuity.
Current rates mean you have to live for 38 years to get your money back.
My aunt died 35 days after buying hers. The bank got to keep the whole £100,000 without ever paying out anything.

It's really not good manners to start a thread boasting about how much money you have. £150k in savings is a lot for a 40-year old, especially since you have no mortgage, and I'm sure you know that. Did you want someone to come and give you a pat on the back?

I'm not saying that out of jealousy by the way - we are well provided for ourselves as our mortgage is only 1 x annual income and we have that amount again in savings too, DH gets good bonuses etc but I really don't think it's nice to come on here and gloat when the vast majority of people live month to month.

TDofA thank you, now it adds up

Why don't you throw caution to the wind and go and buy yourself one of those handbags for £1000? Honestly, you could be dead next week.

I agree that it's important to have some sort of a nest egg for when we're older, but if that compromises the life we're living now, then what's the point?! None of us are here forever. Funny how people so easily forget that though.

"It's really not good manners to start a thread boasting about how much money you have. £150k in savings is a lot for a 40-year old, especially since you have no mortgage, and I'm sure you know that. Did you want someone to come and give you a pat on the back?"

Actually, it's not that much, I'm not boasting and no I don't want a pat on the back. I don't think it is enough and most people on this thread seem to agree with that.

Buying a handbag for £1000 isn't my thing - not nowadays anyway

If I may say so, it is a bit ridiculous to say that it's not good manners to talk about these things when some people are struggling. On that basis, it's not good manners to talk about nice holidays, new cars, private education and endless other things that are discussed on Mumsnet. My thread has a serious point about financial planning - it isn't about spending on 'frivolities'.

What IS relevant is to realise that £150,000 saving is bugger all to live on for a retirement of up to 30 years for a couple ....

Oh god are we back to people telling the OP she's boasting and being rude? And now others saying you don't live forever, spend today.

Um actually while you won't live forever you'll likely live longer than you planned for. That kind of thinking means you'll be relying on the council to look after you in old age, something none of us should aspire to.