Tiny pension at 43

[Needtorelax1]

Hi everyone
I need a bit of a hand hold as I am currently in a total panic….
43, and have about £15k in pensions. I worked part time to look after my daughter and then had a second daughter that I lost at 3 months and I’ve just never gotten on my feet really work wise after that.
fast forward to know and I am in a full time job paying £30k a year but I’m single. I do have £270k coming my way very soon which I will use approx £190k to buy a house with so I will be mortgage free. I’m just terrified that I will be penniless in old age.
Am I being ridiculous? I spoke to a financial advisor who if I’m being honest felt that he was a very wealthy man who has no idea of living as I have done and said that most women of my age have £100k saved in pensions?! I find this difficult to believe given the state of things at the moment in the country but it’s terrified me.
Am I too late to even think that I could have any sort of decent pot for when I retire? I need to keep some of the remaining money aside for savings because it has to work for me for my life.
some friends have said that I am in a much better position than a lot of people as I will be mortgage free etc but I’m struggling to see the wood for the trees at the moment and just need to feel that things will be ok?
sorry for the long post…just need a hand hold xx

How's your state pension eligibility? How many qualifying years do you have?

It's not really all that helpful to compare to what other women your age have got, because it'll range from the square root of fuck all to several million. You need to work off what situation you want to be in in retirement and go backwards from there. An outright owned home will definitely be a big advantage.

So you'll soon have a mortgage-free home of your own and another £80k or so to invest? I'd say that will put you in a pretty good position compared to lots of women at your age. No point fretting about past financial decisions - presumably you were just getting by and doing your best for your DC. Put by what you can from now on, and make sure you're maximising any employer contributions if applicable.

Dont waste your time on IFAs at this level of wealth.

Here's what I would do....

• With the remaining 80k of the "coming your way" money put 40k in ISAs (20k using 25/26 financial year and 20k in mid April 26 using the 26/27 year)

• Put the remaining 40k in a pension (you will get tax relief of 20%) AND will be able to add this much assuming you worked for 30k a year for a couple of years (your allowance rolls over)

• When you buy your house - rent a room to a female lodger or international student (its a nice bit of passive income- that £ then goes into pension or ISA)

• From now onwards try and put 10% or so of your salary into a company pension or SIPP.

You can't go back you can only go forward....

I wouldn’t panic too much, being mortgage free is a game changer. Going forward you can now add a lot more to your pension instead of paying a mortgage and the pounds will build up quickly. Also do the ISA thing, you want two, one for this year and one for next, they will also compound and build up nicely. 43 is still young.

I wouldn't worry. Ideally yes you would have more in your pension at 43, but it sounds like if you are coming into a sum of money that will allow you to buy a house and be mortgage free and still have a chunk of money left over you have options to catch up a little. The fact you are even thinking about this is a massive plus.

The plus side is that you do still have time on your side, at the moment the earliest you would be able to access any pension savings is in 15 years time (this may change), so lets say in theory you have 20 years + of working and being able to make provisions for retirement.

Comparing yourself to others or what the 'average' person has in their pension is futile in my opinion. Try looking at the meaningful money channel on YouTube, loads of great content on there from a guy called Pete. Will help you start to understand what your retirement requirements are and what are some routes to get you there.

Agree with others, there is still time and being mortgage free is a game changer to quote @Blackbookofsmiles1 Over the next 20 years focus on building up some savings and putting into your company pension (maximising whatever your employer offers). As another user suggested, check out the government gateway and see how many more years you need to contribute for state pension. Your SPA is currently 68 so you'll just need to consider how much you need to fund until you can draw that plus what extra you need.

Don't worry about what everybody else is doing just focus on yourself and your family.

well I am 55 and have no pension at all, I just try not to think about it🙄 I probably won't live too long anyway, I cannot work due to ill health so what can I do?

Thankyou all so much for your replies. I think I have just been plodding and just haven’t realised the importance of it until it’s hit me in the face. I do think I will qualify for full state pension.
I just very much feel that people of my age just weren’t given enough advice on this back in the day when auto enrolment wasn’t a thing.
But the reassurance you’ve given me is very appreciated. Maybe I just need to breathe a little bit..as you can probably tell I’m an anxious person anyway. Xx

Depending what job you do , you could always consider a move into the public sector later on -. They do very generous pension contributions

https://www.charles-stanley.co.uk/insights/commentary/average-pension-pot-by-age-uk The average pot for a woman in her 40s is £28,300. He talked a lot of rot and was just worrying you.

Don't waste time and money with an IFA- you don't need one.

1. Check your state pension entitlement online- don't assume.
2. Use your spare £80k to give yourself a rainy day fund of around £15k in cash (if you don't have one already) in a high interest easy access account. Put £20k into a S&S ISA invested in a global tracker. The rest can go into your pension (or the iSA) this year and next.
3. Check what your pension is invested in. If you have never looked at this, it may well be in a lower risk fund which is not going to get you the returns you want.
4. How much are you paying into the pension each month? Is your employer putting the max in? Would suggest that you set it up so that whatever you are currently spending on housing goes straight into your pension instead.

What @Lafufufu said.

Save consistently (pension and ISAs) and invest wisely - educate yourself via MSE, websites like Hargreaves Lansdown and investment books so you feel more in control. Remember that managed funds rarely perform better than trackers in the long run.

Examine your expenditure and don't waste money, especially on impulse purchases and subscriptions you don't need.

Do a yearly review of your finances.

Thankyou all so much.
I need to try to stop panicking so much I know because all it’s doing is robbing me of my life now.
My daughter is now 13 and I just so desperately want to be able to help her with uni etc. Her dad earns a lot of money and he has already said he will help her…but the thought that I might not be able to kills me with guilt. A lot of my friends have just said to let him…if it helps her then why should I feel guilt over it. I have to budget more than he ever will and it is just the way it is. The pressure I feel is so immense I need to let go a little bit xx

@Needtorelax1 Some really good advice on here.

• check your state pension https://www.gov.uk/check-state-pension
• I assume you are currently paying rent, once you buy your home that should free up cash each month. Use that freed up cash to do 3 things - pension, saving and living your life I.e. have some fun.
• WRT your daughter and uni costs - you have to be realistic and put your own life jacket on first. Modern Apprenticeships can be a good alternative to uni, fees paid, earning a wage and getting experience = no uni debt.
• I agree with a pp, public sector pensions are good and it’s worth looking at the career opportunities.
• Practice good financial management I.e. plan and track expenditure. Learn about pensions, savings and investments. I am a firm believer in teaching children from a young age about money and finances this is something you can do together. These are good resources:
• https://www.moneysavingexpert.com/news/2021/10/first-ever-financial-education-textbook-arrives-in-welsh-schools/
• https://www.moneyhelper.org.uk/en

I’m so grateful to you all. All is not lost. Certainly won’t be seeing an IFA again any time soon xx