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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:
chickydoo · 05/06/2013 23:43

My DM care/nursing home costs my DF1300 a week, she has been there 4 years. It was most definitely not what any of us expected. My DF has only a small amount of money left now & is worried incase he needs looking after. His house is worth around 400k
If he needs care the assets from the sale of his house will fund that.
Glad I wasn't relying on any inheritance.

Morloth · 05/06/2013 23:46

In your position OP I would buy another house (possibly with a smallish mortgage that the rent will cover).

Right now we are in the middle of a biggish mortgage which we envisage having cleared by about 40.

We will then buy an investment property.

I don't intend to get 'old' at 70 all bets are off, I will be smoking and drinking and there will be no more vegetables, just lots of cheese and chocolate. I need enough money to be able to travel to some nice 'dangerous' places.

Fuck getting old.

ouryve · 05/06/2013 23:46

Less mortgage than you. Enough savings to replace the car if it breaks completely and live off for a few months but too much to receive UC when that kicks in, if we find ourselves in dire straits. Mortgage on a house that's too small for us paid off. I have about 2K pa worth of pension and DH has whatever he's managed to contribute - 5 years of that was equitable life so worth shite all.

chickydoo · 05/06/2013 23:56

Squeaky Toy!!
How can I look after DM with major nursing needs at Home? I work full time & have 4 DC.
We would have to have 24 hr nurses & adapt our sitting room for a hospital bed, & the hoist & equipment that would be required, we would need to build a downstairs bathroom as DM is totally paralysed. She has dementia too, and can not even take a sip of water on her own. Please think before you say that we should look after our parents when they become elderly/infirm. My DM has a wonderful nursing home, a family member visits her every day. She gets great care, is always clean & comfortable. She is also only just 70 ( strokes are cruel) In a dream world I would be there for her 24/7, in reality I need to feed my children & work.

chickydoo · 05/06/2013 23:57

And Morloth she had the stroke because of too much cheese & chocolate

Morloth · 06/06/2013 00:03

Yeah, not too much cheese and chocolate until 70 is the plan.

After that why bother? 70 seems to be the point where people start to be 'old'.

Humans were never meant to live so long, it looks like torture.

This is my plan, I like my plan and have every intention of having a living will and a DNR. Not everyone wants to be alive as long as possible.

chickydoo · 06/06/2013 00:09

Good luck with that, hope it works out for you

Morloth · 06/06/2013 00:15

Me too, if not there are other ways to avoid getting too old.

My mum is certainly enjoying herself a lot more now she is 72. Why not? What is the point of fighting for a couple more years of health food and restrictive life?

Inlaws are doing the same thing, they are rarely not heading off somewhere crazy and eat whatever they want these days.

Burn up the last of your money and not worry about the future - because there doesn't have to be one.

The trick I think is to make this a plan while you still can and to let the people around you know what that plan is both emotionally and legally.

I will be sad when my Mum and Inlaws pass, of course, but it will be tempered by the fact that they had a good time while they were here.

What scares me is not having the power to do this stuff, to lose the capability earlier than my plan, hence why I am careful of my health for now.

zlist · 06/06/2013 00:36

I am also 40 - we do still have a mortgage but our savings could pay it off and leave a modest amount over (we resisted moving up the property ladder and are fortunate that our income is quite a bit more than we need for the lifestyle we have).
DH and I have both paid into our respective pensions since our early twenties and for many years overpaid. No idea whether it was wise or not. I couldn't tell you what the pension pot is worth (DH could but he is asleep) but I do know that it is on track to provide enough to easily maintain the kind of lifestyle we have now.

FreyaSnow · 06/06/2013 00:44

I'm sort of in agreement with Morloth. I can't see that I'll live much past seventy.

BonaDrag · 06/06/2013 00:47

I've lots of debt...

But I'm really goodlooking :o

I'm hoping that will somehow see me through..

80sMum · 06/06/2013 00:59

OP, you might want to consider a self - invested personal pension (SIPP). If you get one from a funds supermarket or an execution - only broker, you can take full control of how your money is invested.

Don't dismiss pensions until you've thoroughly researched them. They are the most tax-efficient savings vehicle for retirement.

You are only 40 (lucky you!) so you have 25 years or more till retirement. That's enough time to weather a few storms with equities and grow your funds. Someone earlier in the thread recommended Africa. That is certainly a high growth area and will likely be so for the next several years. However, it's also very high risk and I personally wouldn't put more than about 5 to 10 percent of my funds there for that reason.

I have found the most stable investments to be UK equity income funds. They have steadily grown in value and dividends are reinvested.

The above may not be suitable for your needs though, so the best thing would be to get some professional advice if you're uncertain of the way forward.

You are right that £150k won't get you very far, but remember that you will receive tax relief on all payments you make into your pension and you have plenty of time to build up your funds, especially if you are able to make regular monthly payments.

SoggySummer · 06/06/2013 01:05

There is no way I would even consider topping up my NI contributions so I get a full state pension. I am 40 I very much doubt there will be much in the way of state pensions by the time I get to retirement age - if I ever get there. I dont expect returement age to stay where it is - it will definately increase before I get anywhere near my mid sixties.

Topping up NI contributions today - is like thowing money away or gmabling. I would rather save it elsewhere - I have no doubt that one day soon the interest rates will rise again, there is no way they will stay this low for ever.

SoggySummer · 06/06/2013 01:06

Alot of modern/new pension plans are utter shite too. Forget the tax benefits because they are all eaten up (and more) by the fees.

Thesunalwayshinesontv · 06/06/2013 01:27

My first post was not entirely tongue in cheek, my DC are my pension. Just like I am my parents'. They have been good to me, and I will be good to my children. It's an absolute win-win situation, from start to finish.

If they need professional help in their old age, they have savings that can pay for that (as have I if I need it). Care at home is better and cheaper than a care home.

Outsourcing old people - nice ones - just doesn't sit right with me.

Toxic ones, well that's a whole different matter. There is just no point AT ALL in being nasty, it will always come back to bite you in the bum.

zebrafinch · 06/06/2013 04:40

Divorced, , no cash savings but large equity in home and 13 years finally salary scheme pension scheme contributions from before my son was born. Unable to work as my son is very seriously disabled and will be always totally dependent he is life limiting. I don' t think I will make pension age, my blood pressure is high from the stress of caring. I am frightened that I will go like my mum, she had a catastrophic stroke but lived 5 years in a nursing home before dying. Enjoy life while you can, you never know what is around the corner even if you plan meticulously.

Numberlock · 06/06/2013 06:18

Well said chickydoo.

peteypiranha · 06/06/2013 06:38

People saying about the care home cost thing of course people shouldnt accept the inheritance of they are not going to be able to pay care fees. Most people in their 60s are sitting on 400/500k houses to pay for that. I am mainly talking cash assets being left before death. Obviously dont accept it if it leaves your parents poor but most people I know in their 60s who have both worked are far from that position.

lucidlady · 06/06/2013 06:47

The thing to remember about employer pension schemes is that if your employer pays in, it's basically free money. I pay 4% into my pension, and my employer pays 8%. That's 8% I wouldn't get otherwise.

janey68 · 06/06/2013 07:07

Most people in their 60s are sitting on 400/500k houses? Hmm
I seriously doubt that. But frankly, even when they are, I still think it's madness to assume that through gifts or inheritance from your parents, you will be able to live comfortably through your own retirement. And I speak as someone who does have parents with a house in the Home Counties worth shed loads... The point is, loads of things could happen over the next 20 or so years. And anyway it's not my money. I know my elderly parents have shares and bonds too but I'm assuming those will have had thousands of their value wiped out just as is the case for everyone.

It will be nice if I do inherit one day, but frankly it's not something I'm going to count on. It's up to me to fund my retirement- anything from my DH and my parents is a bonus. I think this is where many people are going wrong really... Thinking (hoping??) that either elderly parents or spouse will see them through

Mutley77 · 06/06/2013 07:09

Wow I honestly find this thread a bit worrying that people are speculating so wildly and taking uninformed views on what is sensible to do about future retirement.

I am lucky that I know we will stand to inherit significantly from my parents - they have way more than enough for care homes each for years plus to provide me and DSis with a significant amount of money each. Not a boast - they have worked hard, been careful, benefitted from a massive property boom in their lifetime, and taken very good financial advice. However DH and I don't bank on that money for us (who knows when they will die, we may have retired before that all being well!) - but we do consider that money will be hopefully beneficial for our children's future - and their children.

On the basis of my parent's situation I have considered it very important to take independent financial advice and we have therefore spread what we have (not a lot of money - we are fairly average earners and have 2 DC with another on the way) so as to minimise risks but maximise profit so there is some in shares, some in property, both of us have good pension schemes. We keep a bit in the bank but that is more a safety net - cash will be worth nothing long term.

peteypiranha · 06/06/2013 07:16

Janey as I said its just advice see if your parents will give it to you whilst they are still in their 60s. I think it makes more sense and I want to do the same for my own children.

ImTooHecsyForYourParty · 06/06/2013 07:16

How do you know they are uninformed? Perhaps people have done some research?

TheDoctrineOfSnatch · 06/06/2013 07:36

Absolutely agree with 80sMum. If you don't trust equities, you can invest in other things through a SIPP. You can make catch up contributions from your savings and you will get tax relief on them.

Is some of your £150k in ISAs, OP?

janey68 · 06/06/2013 07:38

I agree with the principle of 'spreading the risk'- some property, some shares etc.
Having said that, would be lovely if some posters could share details of their fantastic investments because most people I know have seen the value of their savings drop a lot over the last 6 or so years!!
I do wonder what the future will hold for our children, retirement wise (will they get to retire at all?!)
I count DH and I very fortunate to be among the last generation to have really good final salary pensions.
Mind you, I also think the future will be renting rather than buying properly, which will make far more sense in terms of job mobility