Retirement - what, if anything, are you doing to prepare?

[Earlybird]

I keep thinking I need to pay more attention to this because it is not as far off as it once was!

Would love to hear of what provisions people have made. Also, if you've got a pension or other retirement fund, have you made changes in how it is invested given the recent economic downturn, and if so, to what?

Any general ideas about the age you anticipate retiring?

I keep thinking I haven't done nearly enough, and what I have done is shrinking dramatically due to the market downturn, as the cost of living rises. Help!

Interesting thread - currently for a woman to get a full state pension, you need to contribute into the NI pot for 39 years in total. I work FT, and my employer puts in 8% on top of the 3% I contribute, which is pretty generous I think. I also have a London flat which I've let out for the past 7 years, and whilst it only just washes it face in terms of mortgage/rent coverage, I'm hopeful that as a long-term investment it will grow steadily. I think the important thing is not to bury your head in the sand, and to spread your investments across e.g pension/property/stockmarket. I would never rely on inheritance, since you never know whether those you stand to inherit from might need full-time care in a home etc, which effectively sucks up all that money very quickly.
By contrast, my DS has been burying head in sand for quite some time - this has reminded me to gently raise the topic with him once more about upping his pension payments...

I don't imagine most women/mothers will contribute to NI for 39 years, so guess that means they (we) are doomed to not receiving a full state pension.

i thought it was paid for all the years you received child benefit

but i thiunk it will all be scrapped and changed before even i get to 65

I agree a lot of people will have difficulty doing the full 39 years. With University and training, I wasnt working until I was 23, like many others, and even taking minimum maternity leaves means time out of the workplace. For me, it's a case of paying a big wodge of my hard earned income into a pension plan. No way would I rely totally on the meagre amount the state will give, and the way things are heading I imagine the goalposts will move radically anyway! DH reckons working up to age 70 will be the norm soon. We're making provision for retiring by 65 at latest, which will mean 43 working years for him and about 38 for me which seems long enough to me!!

DH has a pension with work, but i don't have one and probaly won't as there is no way we can afford to pay in the £800 per month that the financial advicer suggested we pay.

So we will be paying into a saving account what we would have been paying on our mortage once it is paid off.

We will also downsize our house when we need to.

I think the future is a pretty frightening place in many ways! I keep thinking it can't get worse/ It's the fuel and food prices that are really crippling at the moment. Rent and council tax come to around £1200 a month for us (par for the course here) and it's now costing us around £400 a month for fuel just for DH and I to get to work and back. That's not including any other journeys - just fuel for work . We're really doing our best to cut back on food - loads of cheap salads and soups. Sometimes I long for an instant bung in the microwave meal after we've both been at work all day but needs must. To be honest I think paying into pension has to come before luxuries now.

Findtheriver

I think your right pension are a luxuries as the the cost of living is just too expensive to have any spare money for the future.

I think the pension/lack of pension issue is a huge ticking time bomb for individuals and the government. Far too many people are doing nothing to prepare, and with increased life expectancies....well, imo it's going to be a problem of epic proportions for society.

Now here's a question - will we owe tax on our pensions, and if so, how will it be assessed?

When you release equity from a property, are you taxed on that amount and if so, at what rate?

I think while it's true to say that it's a real stretch to pay pensions for most people, they aren't in the same category as luxuries such as holidays and new clothes. I agree Earlybird that it's like a huge ticking time bomb.
Part of me feels, sod it, DH and I work are arses off at the moment, why bother putting money towards paying our way AFTER retirement too. It's tempting to just think, oh well, the state has to house us somehow! It goes against the grain though. We've always worked, we pay all our own bills and aren't entitled to any benefits. I'm sure there are hundreds of thousands of others like us who just feel thoroughly screwed at the moment