Pension is utterly terrible. Any advice much appreciated due to current panic!

[AuADHD]

I’m 50. I was a registered nurse and have an NHS pension. I’ve not worked in the NHS or paid into that pension since July 2013.
Those savvy with money with be horrified I’m sure but there are reasons for my situation being as it is including ADHD and autism, divorce, financial abuse from my exH, post metal depression after my first child that resulted in me being unable to go back to work as planned when she was 6 months old, terrible money habits in my family so no good role models or education about finances. Since divorce I’ve mainly been looking after my youngest who has autism and ADHD, my mum the who I am her full time carer, and just trying to survive. My physical health has been quite poor throughout my working life with some chronic conditions. All a big mess really.

I wanted to check how much my pension is worth so contacted them then other day. It is as follows:

Normal pension age is 60.
Current values:
pension £2,994.63
lump sum £8,893.87

standard benefits if taking the maximum lump sum:
pension £2,406.40
lump sum 16,042.65

contributions for 2013 up to when I left employment in July:
employee £237.62
employer £602.26

No contributions since. I joined the scheme in 2002 when I was doing my nurse training and worked as an HCA part time.

I have 3 years missing from my NI contributions from when I was at University.

My pension age is 67 according to the government website.

I don’t own any property and am private renting with 2 of my 3 dc. All 3 dc gave additional needs. The middle one will hopefully go to university in 2028. The youngest has a significant inheritance from his father dying so he’s set up well.

I will be a carer for my mum until she passes away. Then it’s me that will be responsible for sorting out everything that follows that which I know will take all my mental and physical reserves. My brother is skip executor but lives too far away to be of any practical assistance.

I want to work when the time comes but currently don’t know what I would like to do. Whatever is available I think! I’d have to do a return to nursing course and I’m not sure at the moment if I want to. It’s an option though. So say in 5 years I might be doing that which would give me hopefully 11 or 12 years of employment to pay into a pension.
There’s a chance I could currently work one day a week between caring for my mum and dc. I suffer from autistic burnout so have to be careful. This time last year was awful for me and I was barely functioning.

I have no savings. I should get around £35,000 in inheritance but it’s not guaranteed.

Caring for my mum suits our family and our needs at the moment and she does pay me out of her attendance allowance. Otherwise I’m on UC, with child benefit for 2 children, housing benefit pays 3/4 of the rent. I work very hard for my mum putting in around 40 hours a week, a fair bit of that is physical stuff like gardening and cleaning. Essentially I’m
running two households. I’m a hard worker and never still. I don’t want anyone thinking I’m work shy.

I feel like I am royally fucked and would be very grateful for any advice as to how to improve my retirement. Dd plans on getting a farm and we’ve joked about a granny annexe but realistically I need a plan. I didn’t expect my life to turn out like this and feel very upset and panicked. Please be gentle.

You'll have the state pension. Do you claim carers allowance to protect your NI contributions? Although CB continues until 19, the NI contributions stop at 12.

Your NHS pension does seem low for being in it for 11 years. Were you FT or PT?

I do claim the carers element of UC for looking after my mum.
I was part time from 2002-2005, full time from 2005-2007, then part time until 2013. The early year varies on the part time but the latter part time was 22.5-30 hours a week depending. I had 2 lots of maternity leave between 2007 and 2010.

I don't think that's a bad pension for 11 years, presumably low paid work.

Added to your SP (assuming you are full by then), you would have roughly £15k pa in today's money. How much do you live on now? I am guessing you live pretty frugally now so it might be ok for you?

Of course, the only way to better your pension is to work and put some of it away. Do you need to do 40 hours a week for your mum? It seems a lot. If you could divert, say 20 hours of that to paid employment (with a decent pension associated), you could significantly improve your forecast and overall position over the next 15 years or so. The NHS would be the obvious choice for you.

As your DC age, will your benefits reduce so do you need to take that into account?

I have to do 35 hours a week to claim the carers element of UC. The hours at my mums are unpredictable and varied hence saying I could work one day a week elsewhere and it would be school hours only due to DS’s additional needs.

Yes, once they reach 19 the child element will stop. I will need to downsize but the properties to rent that are smaller are the same price as the one we are in. This one is below market value at £1300 a month.
Child maintenance will also stop for Dd when she leaves college in 2 years. DS’s continues until he’s early 20s if in full
time education.

Make sure you'll get the full state pension and have enough contributions Take in casual work now to supplement and save some money - dog sitting, cat sitting? If you can get back to doing nursing at some point that's a good idea as the defined pension is good.

@AuADHDofficial child maintenance is only payable until the end of A levels or equivalent, not for university. Obviously it can be continued
voluntarily but is not obligatory.

What exactly are you worried about? When your kids leave and your caring duties come to an end, you might have to work for a few years to support yourself (could do anything though not necessarily nursing) but then you would get pension credit at 67/8 and all the associated benefits.

You need to work, it’s the most obvious answer. But more broadly, have you thought about where you’re going to be living in retirement and how it’s going to be paid for, as well as having a quality of life?

It can be worth claiming carer’s allowance itself. It will be deducted £ for £ from UC but gives a better class of NI credits than UC does.

Not pension related, but are you receiving DLA/PIP for DC3 (and potentially your other DC depending on their needs)?

Have you checked if you are eligible for council tax reduction/support?

You mentioned gardening and cleaning for your mum

Attendance allowance isn’t that much so she can’t be paying you that much

You would be better off working as I’m sure you know

But because you mentioned gardening and cleaning, I’m wondering how much personal care she actually needs

I know if you’re doing personal care it can seem like it’s a better option than paying someone else to do it

But you are losing out on the earnings and all the associated useful things about that

So that’s why I’m wondering what exactly does she need? Because if you can free up even two days a week for work that would be much better.

Have you had a benefit statement or does the NHS pension have a member portal? If so you can use that to see how much you would get based on what age you retire. You may be able to take it early under ARR terms, so reduced amount for the entirety of your pension, but you can take it earlier that notional pension age.

You’ve had so much to manage, so please don’t be hard on yourself. Speaking to Pension Wise or an independent adviser could help you understand your options and build a realistic plan for retirement.

It’s my living arrangements I’m worried about most. I can’t realistically work two days a week at the moment. I’ve not had a day off to myself in weeks now.

I really do need to apply for DLA for Ds although he’s improved since secondary school so I’m not sure he’d meet the criteria.

The pension has a portal and that’s the latest information on there.

Could I set up a pension myself as though self employed?

Anyone can contribute to a SIPP they set up themselves.

Apart from living with your daughter on a farm do you have any alternative plans re living arrangements as this would also be really worrying me if I was in your situation.

No idea. Apply for a council property if push comes to shove.

I joined the NHS as a HCA in 2004 and retired 12 years later at 55, why is the OP not getting a pension at 55?

Mine is about £400 a month.

Any benefits you get may not cover your rent and other bills, food, leisure costs, whether you end up privately renting or in social housing. You could be in poverty in old age.

Thank you, that’s reassuring and helpful.

I second the idea of getting some proper advice about this. Pension wise would be a good starting point.

Definitely look into whether any of your dc qualify for any benefits, and look at what your mum is paying you. Would it be more sensible for her to have LA carers, enabling you to work some hours, and start paying into a pension again? You need to put yourself first here.

Well, what do you want? I said earlier the best option is to work, to focus on what you can do now to build up a buffer and invest via a SIPP so you don’t end up in a bad way in twenty odd years.

Somehow you need to go back to work . Gardening and cleaning is not essential caring tasks that take time out the day , other people do that around full time work . At the very least you need to work 3 days a week and divert that money to yourself , make sure your NI contributions are maxed otherwise you won’t get a full state pension. As a single person when your kids leave home it’s not as easy as saying you’ll get a council property , they are rare and families are prioritised . Your situation is dire but better you realise now than when you hit retirement age .

From your post you should be entitled to carer's allowance. I was getting £80+ a week for looking after DH. DWP were really kind and helpful and you can apply online.

Once you’re 55, take the minimum lump sum from your NHS pension and use it to pay for the gaps in your NI contributions.

Considering OP only worked less than eleven years and most of it part time, it's jolly good if she has some roof over her head and some food at taxpayer's expense.

OP, you need to work. Carers are in high demand, nursing, whatever you can do, you need to work. It's pretty normal not to have any time for yourself, plenty of working parents live like this. Your DC are now older, your mum's unpredictable care needs - what are they? is she incontinent, immobile or needs occasional support with a medical appointment?
You need to get a job.