50+ without a fat pension pot....

[lechatnoir]

Come on it! Share your plans or just be thankful you're not the only one who didn't or more likely couldn't squirrel away £££ every month.

I've got the grand total of about £40k in my pension which will give me pretty much fuck all! Retirement is a long way off for us (both on pretty low income in an expensive part of the country) and we just don't have spare cash to put away.

Ive just started paying into a company scheme but only the minimum so will be a bit more so accept retirement won't be fine dining & luxury cruises and will probably just draw down money to go on a last hurrah holiday, down size to release some capital and rely on state pension and a bit extra.

What are your plans (if any?) Please don't post worrying that a £30k annual income won't suffice - this is not the thread for you!

We are fortunate that mortgage is payed off on 3 bed terrace. We could downsize but i absolutely love where we live.

I think I'll end up getting a lodger, which will pay enough to cover all the monthly bills (gas/electricity/council tax/insurance/broadband/water/etc). Obviously this is dependent on both dc being able to fly the nest once they are adults - if they both boomerang home at the same time there wont be a spare room. Although i think I'd have to charge them a bit of rent.

Poor decision-making when I was younger, I knew nothing of pensions. they were for rich people, not people like me
I rent social housing, so at least it's not extortionate. We downsized to release our house once kids left home. I'll be working until I physically can't and then only state pension. I've got 10yrs until pension age. My pensions will only provide literally a few pounds a week.

My pension is shit, I'll be living on the pension the government give you. Worked in mim wage jobs since having kids and only started pension when it became law.

Im used to being frugal so its just more the same really.

I remember asking a financial advisor about pensions when i was 25 and he laughed and said you are far too young to think about that yet.

Dick.

I have no pension at all as live on disability benefits. I don't know what happens when I hit retirement age.

If someone is in a council property it's pointless saving for a pension as you get your rent and council tax paid and pension credit plus other benefits such as dental and glasses . If you have a private pension the extra income could wipe these benefits out .

Really? 🤔

Same here.

You should get the state pension and hopefully PIP if you have it when you retire. (Have a look at your forecast)
Thats it.

@GinForBreakfast

Yeah . When my mums friend retired she worked out that she was actually better off not having a private pension along side her state pension. It's not the same for everyone though . I think it depends on the size of your pension. She only had a small private pension but it wasn't worth having it in her case .

I'm late 50s and don't have any pension plan now but have a pension from a former employment which should pay out about 15k a year when I'm 65. About 10k a year if I take it now. State pension at 67. I'm keeping my fingers crossed that it'll be enough and I know I'm in a more fortunate position than many.

@ZippedOpenMouth That is not 100% correct.
If you are in social housing and you retire you still have to pay your rent.
If you have reached state retirement age and you do not receive the full state pension, then you would qualify for pension credit. Younger generations are less likely to qualify for pension credit and would be expected to either manage on the state pension, pay into a private/work pension or have savings.

You can not rely on 'legacy' benefits going forward. They are being tinkered with all the time, so less and less people can claim them. There are a large group of people who have not been able to pay into private pensions but will be receiving the full state pension. As always the government have been very quiet about this group.

You either have to make sure that you have got into social housing before you retire or have paid off your mortgage, as this will help. Then you have to be realistic and look at your budget. You will not have commuting/work costs but your heating bills may be higher. Expensive holidays/cruises are out of the question as are expensive hobbies but as you will have time there may be cheaper alternatives e.g. arts and crafts, hiking, city breaks.

Well I’m 44 with a tiny pension pot. I am working for the LA now and their pension is decent. I’m actually sacrificing a decent portion of my salary to buy extra years of pension so for every year of work I get two years of pension. I think I can do that for another 10 years. Then I’ll downsize and release capital like you.

@VillageOnSmile thanks, what's my forecast and where would I look for it?

I don’t think you can “ shoo away” people who have valid concerns. It’s all relative isn’t it? Someone might be worrying about a £30k pa pension but might have sound financial reasons for being concerned. We all basically want the same thing dont we.. not to work beyond whenever is good for us without having to struggle?

I should get the full state pension. I have a LGPS pension, I think if I cash it in now I get about £5000 which I will possibly need to do for private surgery. I'm close to resigning as unable to perform my physically active role and have 0 savings or property or inheritance and I currently rent.
I hope to find another job for the next decade, but won't be fulltime as I just can't do it anymore with several health conditions.
Don't mind being poor and time rich, but scared to imagine depending on a private landlord for my permanent home in older age.

I thought if you reached pension age and didn't have an additional private pension and were in a council property then your rent and council tax was paid ? I can't see how anyone could pay rent bills and council tax on a state pension only ? I understand you may have to downsize from a house to say a council flat or bungalow?

Here for the state pension forecast

https://www.gov.uk/check-state-pension

Im assuming that, if you have been receiving benefits (UC, ESA etc…) you’ll have laid towards state pension during that time.

Retired @50. next to no pension (maybe 6k). Lived on cash savings and TC.
Started working again at 52. Saved 40k into pension over last 2 years.

Plan to pay 20k+ per annum into pension until i am 55, then rethink.

No mortgage so could downsize.

I don't think somebody who can save 20k a year for pension is the target audience for this thread. Surely if you jacked in work at 50 and then went back at 52, you were not so much retired as unemployed by choice.

no was supposed to be early retirement. Wife was still working.

We don't need much to live on day to day. Hence , i was able to put large amounts over last 2 years into pension.

@ZippedOpenMouth They are not paid automatically. You would be expected to put in the appropriate claim for Universal/Pension Credit but you would have to meet the criteria. e.g. if you had over 6,000 in savings then you would be expected to use this.

However as younger generation were opted into workplace pensions. It is more likely that the amount of UC received would be reduced.

I think pride comes into it though. I wouldn’t want to be totally reliant on the council to house, clothe & feed me. It’s good to aim a bit higher for yourself.

I want my own pension so I can have holidays, meals out, trips to theatres etc. I don’t want to sit in front of the TV all day.

Why would you cash in your LGPS now? It will be much more valuable to you if you take the yearly amount at 67. It will keep growing even if you leave your job. The LGPS is a generous scheme.

There is also the worry that free stuff like dental care could be scrapped during cost-cutting measures.

Many people genuinely can’t save for retirement, but to deliberately keep pensions low in order to qualify for state help could be a risky strategy. Though an understandable one.

Or if you are in your own property but haven't made any provision for yourself. My dad got pension credit as he never paid enough ni and after my mum died was topped up to the same extent as if they were still recievjng her nhs pension.