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?

Absolutely don’t do this! It means your child is pressured into helping you financially.
I have a lovely work colleague whose child doesn’t want to stay committed to the mortgage!

OP's kid doesn't want to help her anyway.

If you can't help your own parents what use are you to the world?

(Not people with nasty parents obviously)

You may find reading this helpful:

www.mumsnet.com/talk/money-matters/5138402-whats-the-point-of-private-pension-if-youll-never-own-a-home?page=1

Oh, forgot, you also get your council tax paid as well if you claim full housing benefit and your only income is state pension.

You could probably downsize with the housing association if they have one bed properties available, so rent could be lower.

Generally only a few quid in it….it’s a fiver difference where I am

Thanks for pointing this out, the 35 years is very new and most of us older people need a lot more than 35 years.

It is catching a lot of people out.

Check up your own on the Gov Gateway

your kid needs a wake up call
What? They've done well and been sensible.
Cashing in pensions was not sensible.

Cashing in pensions was not sensible.

I’m not sure. I guess it depends on how much OP’s pot will be. I’ve read that to have a comfortable retirement you need a pot of at least £300K. I’ve just looked up what you’re entitled to with Pension Credit and it’s a lot to effectively give up, which OP will have to do if she doesn’t cash in her private pension.

It can be very sensible for some people with small pots

I didn't say to cash in pensions - what are you on about?
Kid does need a wake up call this kid thinks they are a success and the mum is a failure - how did they become a success without a loving and sacrificing mum?!

This is incorrect. Why do people state things as fact when they’re not even accurate.

As others have said, the only way to know is to check the Gov website. It’s a different amount for different people depending on various things e.g. if you were ever contracted out.

Yes £300,000 will give you £1k a month. Not a lot, if you're having to find rent and council tax too.

It’s not bad combined with the state pension, which OP is entitled to. But looking again at the figures OP has mentioned and her income, a pot of at least £300K just won’t accrue in ten years time.

If you are getting a full new SP, you won't get Pension Credit, I am not sure why people suggesting that. Some people on the old SP will as that is lower. Pension Credit level = new SP.
If you have a private pension plus a full SP, you will be better off that just a full SP.

you will get housing benefit and council tax benefit and winter fuel allowance though

you will get housing benefit and council tax benefit and winter fuel allowance though

As well as free dental treatment, help with the cost of glasses and contact lenses and when OP reaches 75 she won't be paying for her TV licence

Are you sure your previous pensions aren't still there? It would be pretty unusual for them to automatically get cashed in when you leave. Unless you did this yourself? I thought it was very difficult to do.

I recommend checking if you have any pensions still sat there. There's advice on money saving expert on how to do this

If you haven’t been in the pension for a period of time , usually 2 years, it’s easy to cash in ….just fill out a form….OP said she did this

Thanks, I missed that!

Have you considered ways to earn extra money, such as pet sitting or house sitting? I’m a cat sitter on the website Cat In a Flat and have had a good experience with them over the last few years. There are - of course - many other websites and companies available, but that’s the only one I know of.

Other ways to earn extra money include being an exam invigilator at local schools (for example), but I know that’s term time only, or perhaps working as a receptionist at a local hospital (a friend of mine does this as casual work). Have you considered other temp work - eg on weekends - to do alongside your current job, if possible?

You could also consider investing some of your money each month, as it will have time to grow by a bit over the next few years, before you retire.

Is there anywhere in your current budget where you could cut back on spending at all, so you can save a little more each month?

You’re absolutely right OP, taking pension benefits as a lump sum counts as “savings” for the purposes of claiming benefits. You need some decent advice around this point

Maybe OP could spend that lump sum, so there won’t be any savings.

The point is that you’re deemed to have deprived yourself of that lump sum by spending it, therefore for benefit purposes you’re treated as though you still have it

OK, I didn’t think that DWP would go as far to check your financial affairs from years before claiming with regards to pension credit entitlement (as local authorities do with deprivation of assets and care costs). But like you said, OP needs professional advice.