Pension pot age 37

[sunshinedaises]

I’m 37 and my pension has £17000 in it and it’s saying it will be worth £120,000 when I retire. This is dire for my age but I’ve had 2 maternity leaves and currently only working 15 hours a week. I have increased my contributions so I pay 21% in total and my company pay 3% (they won’t increase this). There is nothing more I can do at this point because I can’t afford to put away any more and it’s probably going to be years before I have a pay rise. Working more hours isn’t an option at this point either. Is my situation as bad as I think it is? I also have a s&s ISA I pay £20 a week into but that isn’t going to get me very far.

Hi, it sounds like you’re doing the very best you can so don’t beat yourself up.

Plus you are in a better position than many others.

My own DM is 71 and retired, she only gets state pension plus £200 a month from a private pension and lives simply but has a nice life. She runs a small car and can socialise etc.

Are you still with the DCs DF? Are you married? If he is on the scene then he needs to be making contributions towards your pension as you are the one that is sacrificing your financial security.

In recent years I have started to contribute heavily to a SIPP in addition to my works pension. I'm by no means an expert but the tax relief back on contributions is a real incentive. Perhaps you could reduce the amount you pay into your ISA and add some to a SIPP.

Hi sunshinedasies, sounds like you're doing great. I was in similar circumstances, part time worker at 37 around the same amount saved. As I headed towards 41 I had £30k saved and decided I needed to change tack. I moved to a local government job which provides a defined benefit pension (guaranteed income) and bought additional pension contributions and converted my £30k pot into a defined pension value (£3k income year at state pension age). I stayed part time until kids were 6 and 8 then moved full time. I've been fortunate enough to get 2 job changes where I work and increased my salary. I'm now 46 with guaranteed income through defined benefit at state pension age of £11k/ year banked and a separate AVC (pot) of £30k through saving anything I earn over £50k into my pension, estimated over £1M pot at retirement with my defined pension worth around £42k at retirement age ( unlikely I'll stay until then!). I would suggest looking at civil service or local government benefits if they have jobs that could work for you, it's worked for me. Circumstances change and you're thinking about your situation which is the main thing. Good luck!

I’m 39 and mine is 33k. It’s only recently now my dc are older and I’m working full time that I’m paying into it meaningfully so it’s going up quite fast. I wouldn’t worry in your shoes - you’ll be able to work more hours and get a pay rise in future then it’ll go up faster.

I only started contributing heavily around 48; similar to you I worked part time; we had large mortgage, etc. My pot is 135k do still quite low as I am early 50s. Wished I have started earlier.

I think I still need to do 7 years of nic for full state pension

You’re doing all you can with your contributions; so I’d also encourage looking at what your pot is invested in. At 37 you would ideally be invested entirely (or almost entirely) in equities to maximise your returns.

I am a little confused about the amounts. If you already have £170k at 37, it should be worth more at retirement age, even if you don’t add anything more. Where has the £120k number come from?

£17,000 not £170,000

She said 17k

It does sound like you are putting away as much as you can and at least you are aware of how much is there and trying to do the best you can, many aren't

Oops, should have my glasses on! Sorry folks