Losing sleep over pensions-only early 40's!

[MoleInaComa]

Long story short, married young, worked part time when children young whilst husband pursued career, divorced a few years ago, have invested all money in buying a house for stability, and now just managing to cover bills with salary-very little left for saving in ISA etc. I know I have years ahead, hopefully, and am hoping to start full time work next year, but I keep getting myself into an absolute panic about how I will manage financially in old age. What are other people doing? Will I be destined to live on beans on toast for 30 years??

I'm in my mid forties and my husband is almost 50 and I also really worry about this. I do have a decent career but after being very part time for years on end after having 4 kids, and 10 years not paying into my pension at all because of working abroad and doing a full time degree , I fear my pension pot will be very little! My husband didn't really get his career properly going til he was 40, so also has little. I guess I'll just have to hope the kids will sub me in my old age or I'll come into some inheritance ! Unfortunately I think there will be alot of people in the same situation. Even saving a little each month can be helpful especially if your employer contributes too.

I think my girl friends and I are hatching a plan to buy a dilapidated old house and spend our dotage making gin from foraged fruits and growing vegetables! I think you're right, that it will be a very common thing and our generation will be working well past the previous norm for retirement-I don't mind that as would rather be occupied, it is just if ill health intervenes and means I am unable to work.It's a bugger!

It could be worth getting some independent financial advice. Retirement planning is an art rather than a science, highly individual and it pays to spread the risk by having two or three options rather than all your eggs in one basket. You could start contributing to a portable pension fund, the advantage there being that your contributions attract tax relief. Employers are having to offer access to a pension scheme nowadays but if they are willing to add to your fund, that's also good. You could go the ISA route but the returns, although tax free, are quite low. Property has traditionally been a good investment and, despite some ups and downs, is still a pretty solid and appreciating asset. Then there are straightforward investments, tracker and other funds, bonds... all kinds of places to put your money, some riskier than others.

Thanks Cogito-Really need to start looking into it more seriously instead of being like a headless chicken!

Totally agree with cogito... Invest now in a bit of independent financial advice, and I bet you'll come out feeling a lot more confident about your future. But as you know, the longer you put it off, the harder it'll get. Much, much harder.

I think a lot of us will be working into our 70's - which if we are fit and healthy is fine. However, would like to take lots of holidays!!

You should really have a stake in your husbands pension that he accumulated when you were married - it might be worth having a look into that!

I pay 5% of my salary into my pension and my employer matches that. I do worry about it though and hopefully will be able to tie some of it up in property in the future. Should hopefully get some inheritance as well!

With the universal pension & auto enrolment on the horizon, saving even a little towards your retirement is likely to be more beneficial than saving nothing. I say 'towards your retirement' as there are different ways of achieving this. I would however suggest that investing some money in professional advice is money well spent.

When you have a product: keep an eye on the charges, don't put in place then ignore it for 20 years and ensure you think about the time you have to invest - 20+ years means inflation is a more important consideration than short term risk.

Do something though.

I am saving towards later in my life, but not into a pension.
And I do not plan to completely retire, ever

Thanks all, am going to speak to an advisor and start saving even just a wee bit each month, then next year try to get a better job, am studying towards that now!