Financially Screwed at 52 - What Should I Do?

[RedPeony21]

I started work at at 17 and worked full time in a few different jobs until I was 29. I paid tax and NI but no pensions. When I was 29 I married and my husband and I emigrated to Canada. He worked full time for 8 years then we set up a business where he was self employed, joint partnership. During the years he was employed I worked part time as I was at home with my son. When the business was set up I worked full time in the business. During the 18 years in Canada we paid there equivalent of NI and tax.
After 18 years our marriage broke up we sold the house and collapsed the business and returned to the UK, we then separated after 6 months.
We had £50k in cash we split between us. I bought a car with my money and then had a few thousand in the bank.

I rented a flat for me and my son, I had to go on UC as I was only working 20 hours a week the cash lasted a few years but now I have only about £600 in savings.

Fast forward 5 years from returning to the UK, my son now lives with his dad to be near college. I had to give up the flat as I could not afford it as no UC and even though I got a full time job, my salary would not cover rent, bills, car, food etc. My mum offered me to live with her. I did stay with her for six months.

For the last 4 years I have been in a relationship with a lovely man, we finally decided it would be a good time for me to move into his home and start our life together. So I left my mums to do this.

My partner rents his home, after his divorce he didn't have money to buy another house.
He has a solid well paid job, he has credit card debt and loans totalling approx 16k, an overdraft of approx £600. He has no savings. He pays approx £1000 per month into pension and tells me he can't afford to save anymore money after Bill's etc are paid. I do contribute to bills, although I only work 30 hours per week which he is happy with as he says he does not want me working longer hours as feels I don't need to, I do have some health issues so this makes sense. Although I would be happy working full time if I could help out more.

I constantly worry about what would happen later in life. I do not own a home, I have missed many years of paying into a pension in the UK, I may not get a Canadian pension (reason being possible tax problem so my ex husband has informed me) if anything happened to my partners job we have no savings, his pension would go directly to his 3 children if anything happened to him (rightly so). So basically I feel screwed, I have been a fool not taking care of money, but my life situation hasn't helped.

My partner is 50 and I am 52. I talk about our retirement and how we will live, his pension is at £70k right now, more years of working ahead, my pension pot from the government will be peanuts I'm sure, I don't see how we can live in our retirement. I am worrying all the time, what can I do?

I do not know the status of my Canadian pension. It's on my to do list to check this out.

I am looking for a job with more hours but I know I would not be entitled to any benefits.
My son is 20, he was in a apprenticeship and going to college. Unfortunately, his apprenticeship has gone as he was laid off with Covid, but is still going to college. I helped him apply for UC and now he has some money coming in while he looks for a job/apprenticeship. I am not contributing to any maintenance for him.

My car was bought new when we returned from Canada, so I kept it within our agreement. Its paid off in full and is now 5 years old. I cannot sale this as it's my mean of transport to work and to see my son. I do not have any other assets. With buying a car and replacing household furniture etc from our move back from Canada. There wasnt nowhere enough for a deposit on a house. I did not have a job that would carry a mortgage and no credit history after living abroad for 18 years. Moving back was stressful enough, then worrying about my don in a English curriculum and how he would cope. He was a SEN child but no statement here in UK. It was a struggle. Saving money was furthest from my mind then.

I am not named as beneficiary on his pension, his children are. Yes his ex wife took 1/2 of his pensions in divorce settlement which is why he is trying to build this back up.

I have not looked at any ISA or any other investments as I have had no money to save over the last few years. Now I am more serious about this as am scared for the future. This is all on my to do list this week.

You have all been great, I appreciate every comment. Thanks

I have only ever worked for the same company so appreciate that I am not sure how common pension benefits are in the wider working world but it might be a good idea to focus your job search around pension matching opportunities and things- a lot of companies match whatever amount you put in which really helps accumulate a lot.

He is paying £1000 per month into a pension, and yet has £16k debt. His money priorities are wrong. The interest on that must be huge. He should be paying off all debts before paying into a pension.

Incidently, how many people can afford to pay that much into a pension? How much is he earning?

@Standrewsschool

He is paying £1000 per month into a pension, and yet has £16k debt. His money priorities are wrong. The interest on that must be huge. He should be paying off all debts before paying into a pension.

Incidently, how many people can afford to pay that much into a pension? How much is he earning?

Actually his priorities are correct. £70k at age 50 is nothing. He needs to be putting in as much as he can. Debts can wait.

@WeirdlyOdd Have you looked at a lifetime ISA

Not available for those aged 40 and over.

You absolutely need to get to the bottom of your Canadian pension. Even if self employed, you should have been paying into the CPP, which is surely separate to taxation, just as it is here.
You are strangely passive about something so important! That has to be your first priority. You need to ask your ex husband to explain what he’s talking about, then you need to get information from him in writing - any documentation from Canada if he has it and you don’t.
I’m not sure whether Canada has a reciprocal agreement that allows you to buy into UK pension, but you can certainly have a CPP paid to you in the UK.

Google tells me this is the place to find out what your CPP status is:
www.canada.ca/en/employment-social-development/corporate/contact/cpp.html

Then, you need to check your UK pensions status. You might already have 12 qualifying years from before you went to Canada, and probably 5 since you got back. At 52, you have a fair amount of time to add to that, even if you can’t afford to buy missing years.

Your boyfriend’s finances are frankly none of your concern.

Your partner is probably being sensible paying into a pension - the employer contributions, tax relief and his age make this more appropriate than debt repayments (although he should have a plan for that too).

However his position is academic - you’re not married and can’t rely on him. Look after yourself: start maximising your income and your savings.

I've got a question for those who are saying OP should try and pay NIC she's missed. I thought you got pension credit if you didn't have enough working years for a full state pension. Am I wrong?

@MoiraRoseismyStyleIcon

I've got a question for those who are saying OP should try and pay NIC she's missed. I thought you got pension credit if you didn't have enough working years for a full state pension. Am I wrong?

Yes you do if your joint income is low enough. So if op was on her own in retirement with a low state pension then she would get topped up by pension credit and if she was renting she would get housing benefit paid i full but if she stays with her partner long term and he has a decent pension ( which he is likely to if he is paying £1000 a month into it ! ) then it will be based on joint pensions etc and they very likely won't qualify.

@RedPeony21 - so great you are looking into things. Just look at all you are entitled to ( e.g. Canadian pension - do make this a priority in case money there here - you would not want to leave that on the table ) plus whatever you have as UK pension ( all those things go on to the plus side of money ) - and work on from there when you know what you have . It sounds like you have a very good to do list and I wish you well In truth , I agree with previous posters - very very sensible to have your own money - but if you and Dp stay together - it will help both of you - if you do not it will help you to have money of your own But just try to put your own money aside for yourself - just in case - hope for the best - plan for the worst - ( other cliches available on demand )
I do wish you well

Today I have had a chat with my manager, there is a job coming up in January which requires traing for, it's more money and hours. Apparently if I start the training now I can apply for the job in December.

Thanks everyone, a kick up the backside was needed so I have now made a start on my 15 year life plan to earn as much as I can before retirement. Tomorrow I start on my to do list on Pension information and investing.

Feeling positive 😀

Great work! What an exciting possibility

his pension would go directly to his 3 children if anything happened to him

How old are his children? I thought that would only happen if they were dependents, so under 18 or in full time education.

Lifetimes ISAs are for under 40s only.

His 70k pension wont go far as it is still a low amount. Paying 1k per month in is loads, it doesn't add up. Same re jet skis and caravans?

Go online and look at how much NI you accrued from 17 to 29 years of age. Then check your Canadian pension situation yourself. Then see how many years NI you have accrued since returing to the UK. Set out how much pension you will get from each of these. Also work out how many NI years you would contribute if you worked full time from now until you are 67. You might be eligible to pension credit if you fall short of the state pension. All needs investigating and establishing definitively.

You need to find a way to increase your income - more hours, side hustles etc, and absolutely ensure you are paying NI now. Assume the scenario that you will not end up in any way financially reliant on your partner.

That's fantastic news OP.

Remember you do not have to retire at the state retirement age, you can defer your state pension and carry on paying ni. You can find out exactly how many years you have paid in and get an estimate on the amount at your state pension age (66 I think). Can't help with Canada but I'm sure you paid something in

Have you had chance to check the government website to see how many years you have? I was pleasantly surprised that I had contributed enough during my part time jobs when I was still at school and uni, so it might be that you be more than you think.

Are you contributing to a work place pension?

And have you completed the online request to check your CPP?

Read the barefoot investor - Aussie focus but principles are the same

Yes, focus on your finances. It is good you have a partner and can share costs as it looks like it will be difficult on your own. There is not much you can do worrying about it or punishing yourself for not being more careful?

Get a full time job if you can and start topping up your pensions.

What happened with the house you sold in Canada? Was there only 50k left from that?

Your partner needs to get out of debt - stop his pension contribution until he is debt free. If you are together 20+ years before he dies you should receive some support. Maybe this is a newer relationship, but it's very reasonable that if it is a lasting one when he dies you receive a % of his savings/pension.

You need to work full time and save, save, save. With two of you, you should both aim to save at least 25% of your wage once debt is cleared. If you can't work more at your current job look for another one for 1-2 days a week. Watch all your outgoings, try to shave 10% of the weekly shop, stop smoking if you are smokers, reduce alcohol, whatever it is you spend on.

Do you live in the best housing for your situation? Moving is expensive, but whatever you can reduce will give you more money to save. Set a small amount each month for fun/enjoyment, something like 100/month so that you can live to. But outside of that it's really time to buckle down and save. You can't bring back that 50k (danger of having cash accessible is it gets spent and you have nothing to show for it). But do all you can to get back on track.

@Irisheyesrsmiling I agree with most of what you said apart from the partner stopping pension contributions and prioritising the debt repayment (not that it's any of OPs concern). Yes he needs to pay it off before retirement and needs to keep an eye on the interest rate he is paying but pension contributions are extremely tax efficient is is probably way more worthwhile him continuing his payments and then paying off debt with any extra windfalls he has, and from getting as frugal as possible with spending.

True @HipHipHooray7 it will depend on many factors (tax, work contribution). But it is ridiculous to pay so much into a pension if you are building debt each month. Even if he 1/2'd it and got debt paid. Definitely time to get serious.

Thanks for you comments.

So I have had an afternoon of trying to sort out how much pension is in my pot.

It took me 5 attempts to get a Gateway ID on the govenment website but finally got in. I was losing it at some point.

So it seems I have paid into 17 years but have 19 missing years, I can only pay into back 6 years.
At this point I am not sure if I will do that. I have looked at investing in stocks and ISA. I have looked at pension and SIPPS on the government website so have lots to think about which way I will go. All depends on job in January and how much I can save each month

I have not delved to much into my Canadian pension as all of my paperwork, SIN number etc is in my storage unit and I have no idea which box that may be in. For now I won't be able to sort that out. But I feel I have made progress and my first training course starts tomorrow with my job.

My partners debt isn't my concern, but I do know he has changed his credit card to interest free credit, which was my suggestion 2 years ago.
We have our own bank accounts and I have no way of knowing what he spends on.

We have shaved our shopping as I now meal prep for the week. We do not smoke and hardly drink. We shop at charity shops, only holiday in the caravan where we are Caravan club members so get good rates on sites. We go 2 to 3 x year usually. We buy all our food for holiday and hardly ever go to restaurants. We live in a small thatched cottage, no huge house, cars are paid for. So really we live as frugally as we can. His hobby is jetskiing, so he has an expense there for launching and fuel for it. But is seasonal so goes about 6-8 times a year. Jet ski was on the credit card. But it's his thing to do with his children. He works hard and has a stressful job, this is his release so I do not worry about this.

For now I just need to pick what I will do with investing savings when I can. I appreciate any guidance. 😀

I would be wary about how much the caravan actually costs per night you use it for. My BIL has one and a caravan club membership and from what I recall it means you need a fairly new caravan and premium sites. Plus potentially storage fees, insurance, servicing, extras for it such as awnings, a car suitable to tow it, extra fuel to tow it, site fees, caravan club fees and paying for actual caravan and the depreciation each year/ saving for the next one etc, you might find it cheaper to go to Spain or Mexico or somewhere relatively cheap and all inclusive.

We went away with them for a long weekend and the fees for four nights for one caravan was £350. Not my idea of cheap