Rubbish Retirement/Pension

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I'm 57. Throughout my adult life, I made sure my priority was to raise my only child and to provide a normal, decent life for her. I went into jobs that were rubbish, mainly NMW ones and never thought I'd be the one without a decent pension.

I live in a housing association property, so I'll not be able to pay for it out of my state pension so I'll have to either carry on working past the expected pension age at 67 or I claim benefits. I didn't grow up with anyone telling me that I ought to save for my pension. I worked two jobs that had pension schemes that I paid into, but I got it all back when I left them. I'm in a job that's only paying 24,500K and I've paid the minimum amount until about 8 months ago when I thought, shxt I need to up my game and started paying in 12%. I know I need to be increasing this a lot more.

I'm not sure exactly how much it is forecasted to be, but I reckon it's only about £3Kpa. I did a pension forecast thing and it suggested I pay around £600pm towards my pension if I wanted a comfortable retirement. My disposable income is around £700pm. I have about £7000 in savings. What do I do?

All you can do is pay as much as you can extra into your pension but not so much as you end up in debt. Try to increase it if your income increases. You can also go on gov.uk to check if you’re up to date with your NI contributions and get a forecast of what your state retirement pension will be.

www.citizensadvice.org.uk/about-us/information/pension-wise/

Did you know you could claim housing benefit and continue working (if you’re a low earner by then)?

Hey @Happyher, Thanks so much for responding so quickly.

I am at the highest salary for my job and there's no way of increasing my income unless I go for a managerial role (not interested in ticking boxes/more admin work) or I take on a second job. I have reached the threshold for NI contributions so I'll get the max. state pension (34 years, right?)

I've signed up with Money Helper and have already booked a tel. appt. for Oct. Hopefully, I'll get some decent advice on what I should do. I could increase my pension contributions to 20%. I already put aside £300pm towards savings (hence, 7K already built up). I don't have any debt whatsoever and live within my means (no credit cards/loans/hire purchase).

Yes, I knew that but I wouldn't want to apply for benefits as I'd like to live a comfortable retirement but just don't know how to achieve this.

Just contribute what you can.
Like PP don't get into debt.
Don't cut into savings.
Try and buy your own home, a small and well insulated one.
If you have a mortgage free home - a small pension or state pension will be OK ish.

Pensions are a gamble anyway.
No one knows what their private or state portfolio will look like when the time comes.

Don't make your day to day living hard.

At 57 and earning MW , OP is unlikely to be able to buy her own home

I can't imagine I can obtain a mortgage at my age on the pay that I am. I gave up the idea of owning my own home years ago. (I did own once, I but split up with my partner then and spent the equity on family life. Also, got gazumped too many times so didn't bother in the end.) Sadly, I will never own a home.

Could you and your child buy together?
Child an adult?

No, I'm too embarrassed and ashamed my adult child sees me as a failure when they have succeeded so well in their life (owns a 500K home, bought on a tiny mortgage as saved for 10 years for their first home). They have never offered, and I doubt very much they will help me out financially.

They'll be options.
You might have a friend you can move in with in 10 years time.
Your kid and you could rent together.
Mobile home.
Maybe the government will come up with a scheme, shared house for women pensioners only.
Who knows.
However, don't put a massive amount of your disposable income into pension if it means your day to day life is hard and miserable and devoid of the slightest joy or luxury.

They saved that tiny deposit over 10 years because their mother sacrificed her own life to look after them. If you had put yourself first you would've had a £500k home too. Your kid needs a wake up call.
OK, forgot the kid.
God doesn't let selfless people down.
You'll be OK.
Think outside of the box when the time comes.
Hopefully, the government will recognise that their is an older population in crisis due to affordable housing.

How about shared ownership? You could find a two bedroom flat and rent out the other room.

www.sharetobuy.com/guides-and-faqs/older-persons-shared-ownership/

Out of interest your child a male?

Yes, I knew that but I wouldn't want to apply for benefits as I'd like to live a comfortable retirement but just don't know how to achieve this.

I can’t work out what this means! You’re entitled or you’re not.

Massive silver lining here: sounds like secure housing. Is it 2 bed, from when your daughter was living there? If so, get a lodger. Put as much income from that as you can get tax relief for into a pension and save it all.

The lodger income isn’t taxable up to just over £7k pa (Google rent a room allowance). But by having that rental income, you’ll be able to afford to save more of your job income into a pension - complete with tax relief.

£300 a month for 10 years is £36K, that’s a lot of rent covered from age 67 to 77.

Because you rent, you will get housing benefit to pay that rent. Luckily it's a housing association property so the tenancy is secure, and if course, they will pay for/do all the maintenance so you don't have to worry about that either. With a full state pension and a small private pension, you will be fine.

No, I've a daughter who's 32.

Thanks for all your suggestions. Let me explain my thoughts on them -

1. Can't sublet the spare room as it's social housing. Also, daughter and partner visits about 4 times a year. (I wouldn't want to share my home with another. Too private.)
2. Shared ownership are a pain if you want to sell. Have considered this before.
3. Can't ask daughter for borrow money as she's too frugal and is saving to retire early.
4. I won't inherit as disinherited from parents' will due to bad upbringing.
5. No-else in my life who can help.

What do you mean you wouldn't want to claim benefits?

If you don't have enough funds to pay rent, you claim housing benefit.

OP is in a HA place. Her tenancy is secure. No need to think about ways to buy And if your income in retirement is low enough to qualify for HB then claim it - you're as entitled as anyone else.

Just increase your pension conts as much as possible. But don't kill yourself doing so.

You can have a lodger in social housing as long as you get permission. (But it a personal decision and lots of people don't want to share living space in that way)

sometimes you are better off with no private pension than a small one as you then qualify for things like rent support, council tax support , winter fuel allowance and free dentist amongst other things

Because you rent, you will get housing benefit to pay that rent.

To pay some of it, if OP is still earning a low income by then. The housing benefit won't pay the whole rent.

Also if she’s getting a private pension …this will reduce the amount she can claim

Check your state pension forecast here:

www.gov.uk/check-state-pension

Yes, I am aware that I can obtain full state pension which is currently £200pw and a small pension that will probably be no more than a few hundred a month at the most. I won't be able to keep the lifestyle that I'm currently in. I'll still have to pay my rent. I won't be able to go out for dinner or have a nice holiday if I wanted to. (I haven't been on one for years, but do go for occasional breaks for about £700pa.)

I'm aware that to claim pension credit, your savings should be less than 16K, but if my savings amount to more than that, I wouldn't be eligible.