49 and no pension to speak of- where to start?

[Ichangedmynameonce]

I've worked in public and charity sector since graduating, always in roles with minimal pensions (though none had a pension till I was about 28).

Had 3 years off for maternity leaves and have worked part time since first DS born 17 years ago.

Is there anything I can do now to improve the situation? My DH has a decent workplace pension, if that's relevant.

I've thought of seeing a financial advisor, but night sure how that works, always assume they just sell you products.

I don't have life insurance either.

I think I'd probably start with a piece of paper and try and map a timeline of employment. Then note which ones had pensions that you can remember.

Get onto Google and start researching to find out contact details so that you can find any preserved pensions that you may have.

Once you've gathered all the info, that would be the time you'd see a financial adviser to consider bringing them all together in one pot as it will consolidate the charges. (This would be mainly relevant for defined contribution schemes not defined benefit* although some DC schemes do have guarantees which wouldn't be in your best interests to transfer - a financial adviser would help with that.)

*DC = you and employer pay money into a pot, it grows and you have various options at retirement.
DB = employer pays money which 'promises' you a pension at retirement based on your years of service and salary. There's no specific 'pot'. You can make additional payments to enhance the pension you'd get.

If you're working now, make sure you're in the scheme as it's free money. Contribute personally what you can too.

Check out the Meaningful Money podcasts. Loads of great info on them..

Have you got a mortgage? Generally need life assurance to support that.

I have no life insurance but a mortgage. It was never specified as being necessary. I was expecting and waiting for it, but wasn’t there in the end.

Something to talk to a financial adviser about then.. or try Lifesearch. Does your husband have any?

Have you checked your national insurance for state pension contributions? You can sign up to do this on the .gov website.

Check your national insurance contributions and what state pension entitlement you've built up so far.

Put together a list of workplace pensions you have. If they're small it may be worth consolidating them.

If you can afford to make additional pension contributions you could consider additional voluntary contributions in your current work pension or start a private pension, eg stakeholder pension.

I've worked in public and charity sector since graduating, always in roles with minimal pensions (though none had a pension till I was about 28).

Really? I’m a few years younger than you and started work in the public sector at 18 and all my roles had amazing pensions! Did you opt out?

Dependents pensions are usually a fraction of the whole pension so relying on your husband is foolhardy.

Have you got enough NI contributions for the state pension at least?

General rule of thumb is to pay a percentage of your gross salary equal to half your age when you start a pension, which is going to be pretty hefty.

https://www.investmentguide.co.uk/does-t

Thanks all.

I know which employers had pensions andvi have the contact details. I'm not aware if they are DB or DC but I think DC.

@AddictedtoCrunchies I'm a bit frightened of FA due to horror stories in the past about their lack of transparency and motivation to sell stuff- has that changed?

I'm also concerned about pooling pensions for similar reason- but I'm aware that fear and worry are preventing me from doing anything!

If relevant, I have around 15 years of old style NHS pension, though for part time work.

We do have a mortgage and DH has life insurance through work.

BTW I'm also addicted to crunchies 😁

Wouldn't NHS pension be Defined Benefit? Which is the best kind.

@Plexie I think I'm demonstrating my general ignorance- will dig out paperwork this week.

Does that mean they can tell me now what I'll get and it won't change?

Thanks

Well you have 18 more years of work to add to a pension. Look on Martin Lewis website

www.moneysavingexpert.com/investments/

If your other half is a higher earner, get him to increase his contributions rather than you start a pension now. The compound growth would be better.

If you have old style NHS pension you might be pleasantly surprised. I have 10 years in the 1995 scheme.

Phone them up and ask for a statement.

I’d be really surprised if you didn’t have a DB pension. It’s really key to find out because the figures are meaningless otherwise-

£20k in a public sector DB pension means £20k per annum, index linked and for life- amazing.

£20k in a DC pension means £20k in total and equates to an income of about £1000 a year if you’re lucky.

Also check your NICS- you can do this online.

If you had a Defined Benefit scheme, you built up a guaranteed pension income based on a percentage of your annual salary for each year you contributed.

I don't know the NHS percentage, but say it was one 60th of your salary. So you would work out one 60th and multiple it by the number of years you contributed. The result will be the amount you will receive each year after you reach the retirement age set out in the scheme rules.

Some schemes also have an additional lump sum, eg 3 x annual pension entitlement but I don't know if NHS pension includes that.

If you have any DB schemes, check what age they will start paying. Some had a fixed age but some are pegged to state pension age, which obviously keeps increasing as government changes the age.

Caution is good but not all financial advisers are crooks. Mine sorted my pension consolidation into one pot which I now contribute to monthly. I also pay into my employers scheme. It feels good having it all tidied up.

If you are M4 corridor I can recommend mine.

NHS scheme is defined benefit. A good scheme.

And the worst happens and they separate? She needs her own pension. Never too late to start.

Forgot to add, DB schemes increase your pension entitlement by a certain percentage each year, to take into account inflation (although not necessarily by the entire amount of inflation). So the starting calculation was based on your salary back in 2000 or whenever, but it will have increased slightly each year. You really need to get an up to date statement.

NHS pension changed in 2015 (became less valuable) so you’ll effectively have 2 pots. If you’re not a nurse with special status you’ll have to wait till state pension age to take it without penalties.

You’d have to pay FA quite a bit of money in fees to even consider taking you on.

you don’t need an adviser to tell you to take advantage of your workplace pension. Start with your employer. You need to start contributing as much as you can afford now!

Don’t waste your money on an IFA- people on MN are mad for recommending you pay for advice when it’s completely unnecessary. Once you hit 50 uou can make a free appointment with the Pension Wise scheme. Use the time between now and then to get together all the info on what you have.

If you've claimed child benefit that will have counted towards NI contributions too so definitely check your state pension forecast per pp

This is all a really helpful starting point for me, thanks all.

Thanks for all the info on NHS pension. I'm definitely in the old one and stayed in it when it changed. I'll investigate this Week. I'll also dig out the others.

I'm in current work pension but it's one of those obligatory ones that's minimal I think.

@5thCommandment whilst we have no plans to separate 🙂I'd like to aim for financial independence .

@AddictedtoCrunchies were in London but I'd still welcome the recommendation please, as I'm sure lots work remotely now.

One other important thing maybe people can help with- years ago I opted out of serps. I have no idea of the significance of this and how I check if its still the case. Any thoughts welcomed.

Thanks everyone