How do I start saving for a pension at 51?

[Malinia]

I'm 51 and I don't really have a pension. I worked PAYE from age 19 to my late 20s so I have some pensions from those times but after that I went self employed and somehow never set one up, then I had to stop working because I have a disabled child and I'm her carer.

My husband has a pension, and my parents are well off and have told me I don't need to worry, but they are starting to need care and I know how expensive that is, and I think I need to sort something out. I do think I will inherit a decent amount still as they own property and have investments, but I feel vulnerable relying on that.

Where could I calculate how much I would need to put into a pension now to have something worthwhile in 15 years time? We have some savings we could use I just don't know where to start.

If start with asking your parents about their wills if they already need care. That needs sorting to save some money from the council.

1. check your state pension entitlement. Just Google state pension forecast and you'll be guided to create an account.
2. If you're not in track for full entitlement, the join the FB group "state pensions. UK" where you will get expert help
3. what is "something worthwhile" to you. State pension is approx £12500 pa. You should consider this carefully and you can find lots of I do about income on retirement on line.
4. if you need or want more than state pension entitlement when you retire then Google pension wise for free guidance

There's a lot of help available to set up a pension and it would be complicated to type it all up here, but Pension Wise is a great starting point, then come back here with specific questions

Regarding inheritance, if one parent needs care, that will cost £4k a month. If both parents need care that will £8k a month. Your parents will have to pay for this themselves. If they both live to over 100 then they may well spend a very large part or all of their money just to live. So don't rely on an inheritance for your pension.

Do you know what's in their will? They might leave everything to a cat charity!

You would need 250 to 500k to retire comfortable
So you looking at 1500 a month if you can.

I think you maybe talking about depravation of assets, which is illegal.

🙄

Off topic but do you have power of attorney for your parents and also have you checked hoe much you have in your old pensions? They may have grown more than you think.

Combine all your old pensions
Pay all ni backdated if youul need to

Call Pensionwise for an appointment. They are really helpful. First step is check state pension entitlement and forecast and think about paying any missed years. Then combine all old pensions into a SIPP and start making contributions. If you are not working currently there is a limit to how much you can pay in (2,880 per annum - but this also attracts tax relief so will be worth £3,600)

Have a look at your state pension forecast, and look at getting that maximized.

If you can find £2880 a year, the government will top it up to 3600 with tax relief, even tho you aren't earning.

Id start with those.

As pp says, start by checking your NI contributions. You should have 10 years paid from your 20s. If you have received Child benefit since your dc was born, you should also have NI payments from those years as well. How old is your child? You need 35 years NI paid for a full state pension, and you have 16 years to go so hopefully you have at least 19 years already paid. You can check your current status at www.gov.uk

Then talk to your dh. Can he contribute to a private pension for you? Do you work now? Or could your parents start a pension for you now?

Please don't combine your old pensions without advice from a finance professional.

The amount of years needed for the full state pension varies.

The care costs might be under estimated here. I have a family member in assisted living and the rent alone is £6k a month and actual care costs £1.5-2k on top of that, but for one person.

No, I don’t think PP is, I think she means as each parent dies their assets should be passed down to the next generation rather than the surviving spouse and then being used to fund their care.

It’s not deprivation of assets if surviving spouse never owned it at all.

35 years for state pension won't apply to OP. This only applies to people born from 2000 onwards. OP could need anything from 28 to 49 years depending on her own circumstances.

If you don't have any income the maximum you can pay in is £2880 per year net. The government will add £720 tax relief even if you don't pay tax. Put in as much as you can afford.

If you have an income the you can put it all in a pension up to a maximum of £60k. The old rule of thumb is half your age as a percent so 25%.

There are lots of online calculators if you have a target income in mind. Look up retirement living standards.

Exactly this. And also a very good example of why you need an actual financial advisor and not mumsnet.

Also I love your user name. Mine’s also a Shrinking reference!

if one parent needs care, that will cost £4k a month. If both parents need care that will £8k a month.

£2k per week would be a more realistic estimate. For each person.

No that's not possible at all. I manage to save about £300 a month that's the best I can do. It's my carers allowance. We usually use it to pay for the family holiday though. We couldn't afford one otherwise.

They don't actually need that kind of care. My mum is dying, she's at home and will need to go into a hospice for her final days. Dad is ok so far, has some health issues, they pay for a gardener and cleaner and would benefit from someone popping in once a day to help with meds (I'm too far away) but they don't need Care with a capital c.

They are leaving it to each other in the first instance, with a little to go to my children, mum will die first as she's not long left, then when dad dies it will be between me and my brother, again with some to my children.

I will get the full state pension, I don't think it's enough though, most people have private pensions don't they?

My brother has poa but they are going to add me.

I've no idea what's in those old pensions! I have the paperwork though, I need to look at it.

What bills do you need to pay?

Do you mean for our house etc? We still have a mortgage at the moment, DH earns 70k and we have almost nothing left at the end of the month, I don't know all the figures without going to look but we review the budget regularly.