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Original poster

Concerned that my pension pot is on the lower end of what it should be...

288 replies

hyperbole001 · 04/07/2021 12:23

I'm 36 and have to be honest, I haven't given a great deal of thought to my pension. I probably started paying into one from 2009 onwards, but have had various jobs over the course of my employment history, and until recently hadn't put any effort into trying to track them down. Naively, I had assumed that the govt would be able to do this by simply using my NI number but doesn't seem to be a straightforward as that.

Anyway, from those I've been able to track down and have contacted, I've estimated that my pot is currently sat at around £26k. Does this see on the low side for my age, and should I be consciously trying to increase my contributions?

OP posts:
Snog · 04/07/2021 20:08

If you already have £9k from your state pension and need another £21k from your personal Pension then you will need around £500k in your pension pot at age 67 so probably need to be saving around £15k each year into a pension from now until age 67.

notapizzaeater · 04/07/2021 22:01

Can the inland revenue trace pensions ? I know you can find details out at www.gov.co.uk/find-pension-contact-details

notapizzaeater · 04/07/2021 22:02

Or pension tracing service on 0800 7310193

iloverock · 04/07/2021 22:02

www.gov.uk/find-pension-contact-details

iloverock · 04/07/2021 22:03

I used the tracing service and they were really good. Sent me a letter with all my pension info on.
I'm not saying you should consolidate but you should take some proper advice.

caringcarer · 04/07/2021 22:14

Pay anything over higher rate tax into your pension. You will just pay it to the chancellor otherwise. I paid into Teachers Pension Scheme for 25 years but I also paid into a stakeholder too. I will have £8600 from state pension at 67, £8.4k from Teachers pensions at 60 and £59k in stakeholder, and I also get message I have not paid in enough. Mortgage will be paid and I have invested into several btl so think I will be ok but still get panicky feeling when calculator days I need to pay in more. You really need to up your payments as you can't trust any government not to put up age for pension to 68 or even 69 and who on earth would want to still have to work full time at that age?

HandlebarLadyTash · 04/07/2021 22:26

The future looks hard, I have 'pot' type pensions, took out a vanguard one earlier this yr when I cleared my mortgage.
The calculators say I'm not saving enough... I don't earn enough to be able to save the amounts needed.

All this and at the mercy of the stock market, where all the money could go tits up.

State pension needs to be higher at least to support a half decent standard of living, not just relying on benifits to top up the poor.
I would support national insurance increase, uk has one if not the lowest state pensions.

Original poster
hyperbole001 · 04/07/2021 22:36

@iloverock

I used the tracing service and they were really good. Sent me a letter with all my pension info on. I'm not saying you should consolidate but you should take some proper advice.
Which service did you use? Because the gov.uk site asks you contact your old employer, or the pension provider direct. What do you mean by they sent you a letter? As in a letter with info on all previous pension pots, because that service would be ideal if it existed.
OP posts:
Bigoldmachine · 04/07/2021 22:44

Yeah I’ve got nothing! Well, I have equity in my house so could sell up to fund retirement. Would love to put towards a pension but I’m self employed and there’s nothing left of my pay to put in a pension!

SciFiScream · 04/07/2021 23:01

I have no idea where I read this but I'm aiming to have £250,000 in my pension pot. It probably won't be enough but it will have to do.

A neighbour who works in pensions told me he was aiming for £150,000! That doesn't seem enough.

Minezatea · 04/07/2021 23:08

I can't really help, OP, other than to say that are your age, it doesn't sound awful as my OH is mid-50's and he doesn't have much more in his pot (which worries me but we don't earn about to do much about it).

Meanwhile, can anyone translate "in today's money" for me? that is said on my pension quote and I have no idea whether it means
a) the amount of money which would have the equivalent buying power of that amount of money today (i.e. it will be more in simple numbers) or
b) this is the actual amount you will get, so by the time you retire, it might buy a pint of milk if you are lucky

Anordinarymum · 04/07/2021 23:34

OP When I left my job I was encouraged by the company to move my pension elsewhere. They were very insistent that I did and said it was a good move so I did.

It turns out it was a bad idea and too late to do anything about it now but i did try some years ago and got nowhere.

It has £29,000 in the pot, and my husband said it will be fine as he has a really good pension and said we would be OK. Then he left me.

My pension does not even cover my community charge.

I would advice anyone to pay as much as they can possibly can into their pension as you are a long time old with not much money at your disposal.
Luckily for me I have other forms of income or I would be stuffed.

SpideyMom · 04/07/2021 23:48

Wished I hadn't clicked too. I am 35 and have less than you. That said I am a low earner and already am paying in more than I can really afford as it is. I know I should be paying more in but I simply can't.

Praying for a miracle lol

ChairOnToast · 05/07/2021 07:15

This reply has been deleted

Withdrawn at the user's request

Undervaluedandsad · 05/07/2021 07:30

www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/how-much-will-you-need-to-retire-atu0z9k0lw3p

I find this Which article reassuring. I’m aiming for comfortable at 60 but by 67 we should be in the luxurious category.

FinallyHere · 05/07/2021 07:38

cannot for the life of me remember the names of the other pension providers I've paid into over the years.

How about contacting the employer to ask them who provided pension during the time you were employed there. That should give you a start with finding the pension supplier.

JoveWhenHeSawMyFannysFace · 05/07/2021 07:43

If you’re planning on using your ISA allowance every year, have you looked at Lifetime ISAs for the first £4k of that, if you don’t think you’ll need it before you’re 60? Can be used alongside pension savings.

Minezatea · 05/07/2021 07:56

That’s not very helpful @Minezatea. Your husbands situation is even worse!

Yeah, it's dire! I was hoping this might help the OP feel more encouraged as she has some time to build a better pot being only 36

FlowerArranger · 05/07/2021 08:14

Don't cash in your final salary pension.
Contact old employers' pension departments to get details of all the schemes you have contributed to.
Consolidate those with a single low cost broker, such as A Bell YouInvest.
Look to transfer your pot into low cost funds from Vanguard, especially index funds.
Work out what size pot you need to meet your needs when you retire.
Contribute as much as you can every month.
Accept that retirement at 60 may not be feadible.

In the meantime live the best life you xan without wasting money on stuff that doesn't add to your quality of life. (I'm thinking take-out meals and coffees, clothes, extravagant holidays, etc. But don't deprive yourself of things that give you joy.)

IndanthroneBlue · 05/07/2021 08:18

I'm confused with all the talk of huge sums of money not being enough in retirement. I am 37 and still trying to scrape money together for a house deposit which I was prioritizing over pension. I have no other savings and I only started a pension a couple of years ago and I'll keep contributing the standard amount to that over the next 30 years so that seemed fine. When I did the calculator I was on track, combined with state pension to be getting the same (low) income I'm on now. I thought that would be fine as I manage to rent and bring up kids on that so presume I'll need less to live on by pension age so would have a bit spare too. Have I got that wrong? Does anyone have a link to a recommended pension calculator? Perhaps I should re-do my calculations

Ramble3Ark · 05/07/2021 08:56

Current UK state pension is paid at age 66 & is approx 9K

You can check your state pension forecast on www.gov.uk

If you want more £ to live on, you need a private pension or some other assets, or work longer

TheWagesOfSin · 05/07/2021 09:01

@SpideyMom do you get tax credits or universal credit? They don't count what you put into your pension as income so you might be able to put in more and claim more benefits back at least until your kids are 18.

Ramble3Ark · 05/07/2021 09:01

Pension age is 68 for younger people & the Government may increase the age

I believe the average life expectancy is in the mid 80s

So possibly 20 years of retirement ?

SpideyMom · 05/07/2021 09:04

Yes I do. But I already pay in more than I can afford. I'm on my own and was left with all the existing debts so right now, financially things sre very tight. Once the debt is gone I'll look to pay more. My pension is poor. My employer only pays £13 a month in. I put in nearly £200

CliftonGreenYork · 05/07/2021 09:16

Apparently to be happy and 'comfortable' you only need £18k a year as a pension as you will be mortgage free. Why do you need/want £30k. Thats well above the average salary and seems quite a lot for a 'pensioner'.

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