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Original poster

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

387 replies

suebfg · 05/06/2013 20:37

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.

OP posts:
Ficidy · 07/06/2013 21:59

I didn't say it was. I was trying to make the point that saving enormous (because that's what you have, no matter what way you look at it) sums of money to keep you going in your old age, is living for a time, which for a lot of us, will never come.

At 40, you could still put a little bit by each month, have enough for your retirement, but have a great old time NOW. Maybe you think you're having fun, but if you're extremely focused on saving for what could be the never-never, then you're hardly living the high-life either.

Ficidy · 07/06/2013 22:08

willamina, no, I stated that it is important to have something put by, but to solely save and not treat yourself to things, if you have the money, is the makings of a pretty pointless life in my opinion.

It's just nice, that if you have that amount of money at your disposal and no large outgoings, such as a mortgage, that you get to enjoy it.

williaminajetfighter · 07/06/2013 22:09

FGS unless you live in Calton it's highly likely that you will live past 65. It's not Victorian times. Most people will make it to old age.

I'd rather save and if I die have something for my children than be destitute at 85.

CointreauVersial · 07/06/2013 22:09

This is a very worthwhile thread, and a few people are missing the point. OP, you are right to be concerned, and there has been some useful advice on the thread.

Our situation is probably the polar opposite of yours - huge mortgage, little savings (apart from some shares) but quite good pensions (DH is 44 and already has 20 years of a Final Salary pension already under his belt). Money In = Money Out at the moment, but we are expecting it to improve in the next 10-15 years, as the DCs leave home, the mortgage is paid off, and (yes) a likely inheritance or two. Or that's the theory....

Ficidy · 07/06/2013 22:15

''I'd rather save and if I die have something for my children than be destitute at 85.''

willamena, you are completely missing my point. I didn't say not to save at all!

Talkinpeace · 07/06/2013 22:15

Rule 1 : NEVER rely on an inheritance until it is cleared into your bank : even if MiL told us only a week before she died (and long after her will was written) that she'd treat us fairly.

Rule 2 : NEVER rely on an inheritance until it is cleared into your bank : even if you have walked around the house being shown what on the will is intended to come to you (legal bills interfered)

Rule 3 : NEVER rely on an inheritance until it is cleared into your bank : even if you have been assured in writing that distributions up to the IHT limit will be made on first death

Rule 4 : NEVER rely on an inheritance until it is cleared into your bank

Rule 5 : NEVER rely on an inheritance until it is cleared into your bank

Rule 6 : NEVER rely on an inheritance until it is cleared into your bank

Original poster
suebfg · 07/06/2013 22:17

"Maybe you think you're having fun, but if you're extremely focused on saving for what could be the never-never, then you're hardly living the high-life either

I try to strike a balance - I love travelling and am happy to spend on trips but have little interest these days in material possessions. So I think I do live the high-life but it's sort of my interpretation of the high life IYSWIM.

OP posts:
marriedinwhiteagain · 07/06/2013 22:25

I haven't read a lot of this but I do hope you are OK.

ThenWeTakeBerlin · 07/06/2013 22:26

Ignore the haters OP, this is an important subject and this thread has certainly opened my eyes.

I'm 33, never paid into a pension and not expecting a state pension to be left when I retire (if I ever do).

My parents are still alive and well but like pp's have said, I try to forget about it as there are no guarantees.

Original poster
suebfg · 07/06/2013 22:29

Thanks ThenWeTakeBerlin

OP posts:
Talkinpeace · 07/06/2013 22:34

OP
When it comes to the nitty gritty, your money willl not go far if you want the sort of retirement that we see the baby boomers currently getting, courtesy of our taxes

(remember that ALL NHS, MOD and Civil Service pensions are funded out of current taxes. THe contributions made by the retirees account for under 20% of the money they spend on cruises and travel and silver surfing. The rest comes out of current taxpayers money)

Those of us under 50 will not get anything like that quality of life in retirement unless we miraculously find a LOT of money ourselves.

Original poster
suebfg · 07/06/2013 22:36

It's so not fair is it?

OP posts:
Sleepyhoglet · 07/06/2013 22:40

26 years old, about 140k equity in house and roughly 40k in cash and investment is a between hubby and I. We both have nhs/ teacher pensions. Feel that is ok. Looking into buy to let a few years down line so can provide for children's uni fees etc.

williaminajetfighter · 07/06/2013 22:41

Ficidy I do get your point. I think I get my shackles up because v working class DP and family just can't and don't consider the 'never never' and it drives me to drink.

His parents have a cradletograve mentality about govt support and he also somehow feels it will be the same for him. These sorts of attitudes still prevail across the UK and are dangerous. i just don't think it's the way responsible adults are meant to think. Seriously we should be doing everything in our power to ensure the govt and councils have as limited input into our lives as possible especially as we get older.

Sorry bit a big fan if govt intervention... My nightmare at 80 would be being plopped in some council run care home and having to deal with muppets at the council about care interventions or my personal needs or shelter. Yuck.

williaminajetfighter · 07/06/2013 22:43

...sorry not a big fan...

Sleepyhoglet · 07/06/2013 22:44

Now I'm worrying about our nhs/ teacher pensions. Poo

Pitmountainpony · 07/06/2013 22:45

I am in the US and they recommend you put away 1 million dollars each in savings for your pension....to pay health insurance and the like. The thought of it makes me panic as I am a sahm for now and we have not even started saving for college funds. But we do have savings and equity in a flat to put a healthy deposit on a house when we but.....renti g for now. But honestly I think we are all going to need more than we realize when we retire.....we will bein our homes so that money may not be released.......as soon as I start working again we will save my entire salary as we have learnt how to live on one salary now.....just cut most of the luxuiries like flights..second cars......new clothes....coffees...meals out.....it soon adds up. Living in the US has taken away that sense that someone else as in the state, will look after me if I can,t......and I am not sure the state will look after people in the UK in the way it does now. Americans are shocked when I explain all the benefits available in the UK if you are unable to work or find work. It really is as cushy a country as you will find outside of Scandanavia but for how much longer? The money pot has run dry right?

lookout · 07/06/2013 22:46

I'm crap with money, I don't understand pensions, I'm a SAHM mum, dh works part-time at a school, we have money for the moment and no way to put anything aside, we live in my parents house and have nothing of our own. No bloody idea what the future holds for us and threads like this scare the shit out of me.

PrincessOfChina · 07/06/2013 22:49

Interesting threat, despite the derailment attempts.

We've gone the route of overpaying the mortgage rather than DP opening a pension which would probably cost more in fees than he can on tribute. I have a work pension - defined benefit so not quite o good as final salary but good for this day and age. I contribute 6% I think, work 8%.

Mortgage is about £95k, so almost 50k equity there now,about 5k in savings but similar amounts of debt (all 0% so shuffled regularly).

And although we not count on it, DP is an only child so his inheritance is likely to be substantial.

Talkinpeace · 07/06/2013 22:50

Sleepyhoglet
Pension entitlement accrued is safe : in the public sector at least.
Private comany retirees are stuffed if their company has to enter the PPF
Entitlemtents in the public sector for younger employeesare a fraction of what the current pensioners get

Governments will NEVER cut into accrued pensions because pensioners vote in much greater numbers than the young.

pitmountain
When I looked at moving to the US, self employed health insurance for me, DH and the kids would have been around $1000 a month just to get equivalent to the NHS.
THe US tax system on entitlemts is so different from Europe its really hard to actually compare, but yes. you have to put away shed loads of money if you want to live well after you stop working.

AudrinaAdare · 07/06/2013 22:59

I think this thread is very informative.

3K between us and starvation, social housing, because we are both carers to our DC.

If you think the OP is bad, when I first joined there was a thread bemoaning only earning £150k every year and it not going far enough because of the price of fresh cut flowers Grin

Sleepyhoglet · 07/06/2013 22:59

Pitmountain....am I right in thinking that house prices in the USA are more sensible than here in uk? Perhaps Americans have to sspend less on mortgage and can spend more on pension/health insurance?

Talkinpeace · 07/06/2013 23:02

Sleepy
House prices in the US are linked to the price of land
and the fact that you pay CGT on your primary residence
and the fact that you pay annual land taxes even on empty houses
and the fact that US mortgages are usually fixed for the whole term
and that many states have non recourse mortgages
its a totally different market

Sleepyhoglet · 07/06/2013 23:09

What is non recourse and cpg?

Talkinpeace · 07/06/2013 23:12

CGT : capital gains tax : to pay tax on the amount by which your house has increased by more than inflation - in the UK that is a LOT!

Non recourse : hand the keys back, the lender owns the house but all the arrears and negative equity are written off on the spot
unlike in the UK where people are still paying off arrears from the early 1990's