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!

Another one who regrets not joining a company pension scheme when I was younger (wrong advice given and not thinking long term). Also thanks to divorce I'm not well off although will have paid off my mortgage soon (early 60s). However my house isn't really big enough to downsize. Also thinking towards retirement if I'm on my own bills can't be shared which makes it more expensive. I'm just thinking 'how much do I really need each week' and accepting the fact that I might just have to tighten my belt and not have some of the luxuries (holidays, etc) that my parents had in retirement.

Just remember more or less every penny you put into your pension the government adds 20% or 40% tax relief.

Some people don't add or contribute because its such along time before they reap the benefit of it. But in the 5-10 year before retirement date it can still be beneficial to dump large amounts of money into a pension.

Can i also point out pension contributions can improve the amount you get from UC.

Also Auto enrolment is free money. Why refuse it.

Just to give you some reassurance - I am 77, live on my own, house paid off and my Net annual income after tax is circa £16500. This is made up of the 'basic' state pension plus some SERPs and a small private pension annuity

I have one tax allowance - if you are part of a couple - you will be better off with 2 tax allowances against your pension income.

You will get your state pension x 2 and if it is not the full amount you will get Pension credit which entitles you to lots of freebies.

I cannot afford cruises, flash cars or high-end kitchen makeovers but to be honest they are not my priority. I can downsize from my £500k home (not in an expensive part of the country) to pay for my hip replacement and give money to my son with a 'warm hand'.

I am not sure if the people with gold-plated pensions are any happier than I am with UK holidays and a simple retirement life-style.

Things that matter don't need lots of money.

IME trying to talk to some people/ especially women under 35 about pensions etc is difficult. Their view is that old age is a mistake their parents made and it won't happen to them. With the added habit of maybe looking at the net income box only on their pay slip ( month one) and then rarely looking at their pay slip at all/ not knowing what the various boxes mean.

At 40 it changes to 'no one in our family lives long so it won't be worth while' and/or 'I don't want to work FT because I like to see my Mum on Mondays and do my shopping/house work Fridays' or 'I've taken my pension contributions out /have opted out of my scheme because I'd rather enjoy the money now' (Plus I won't be ill I've always been healthy.) Another variation is ' my husband has a good job /pension so I'll be fine'.

At 50 it changes again to panic. 'My husband has walked out how will I manage'. 'I never really looked at my pay slip and didn't realise I wasn't paying into the pension scheme', I opted to work 'on the bank' as the pay was better ( no pension NHS), I liked the flexibility/ less responsibility of doing supply I didn't realise I wasn't making pension contributions' ( Teachers). 'I worked in our local private school as it was small classes etc. I didn't realise the salary was only about the same as in state schools because they didn't make contributions into the Teachers' Pension Scheme' etc.

Perhaps there needs to be a system where every employee eg goes on a course, maybe run by a Union other independent organisation etc, when they start with an employer to teach them the basics?

Self employment is another minefield again. The risk is that people are so wrapped up in the day today running of the business that they never look after their futures.

If anyone had tried to talk to me about pensions when I was in my 20’s, I would have ignored them because to my young mind, x amount for pension contributions would have been less disposable income to use for clothes, nights out and mini-breaks. But I take the point you’re making @ElizaMulvil and wish there was more openness in general about money and in all contexts.

We will have to work until who knows when and also downsize a bit.

Some good points @LoveSkaMusic

What’s the name of the sharia fund, if you’re happy to share it please? Is there any ethical dimension to it?

The other thing I find hard to reconcile with building a pension pot is also being an ethical investor, or trying to be at any rate!

Thanks @AnonyLonnymouse!

It's the Nest Pensions Sharia fund - Link!

It seems pretty good ethically with much of the fund tied into tech companies.

Thanks, that's good news that it's a NEST fund - I already have a small fund with NEST although I think it is in a general fund.

Does anyone else worry about the 'lots of tiny pensions all over the place' phenomenon?

I am not the best at all this, but one thing I have always done is insisted on joining my workplace pension scheme (even before auto-enrolment was statutory) and even if I were working part-time.

Can you recommend which one? I’m going to be self employed soon and have no idea which one to choose!

I’m very worried about generation rent. Even if you have a great pension, what’s the point if you don’t own your home in old age and have to pay crazy amounts of rent? What are all the forever renters going to do?

The forever renters are screwed, frankly. Destitute.

That includes me whose ex husband, upon selling our family home, spent all the money on goodness knows what.

Agree that if you're private renting you're screwed- have seen it first hand via my venal landlord uncle.

The answer would be more social housing, but will this new government actually provide it?

I doubt they will be able to provide enough social housing.

I think we will see many many old people on the streets.

It really was an excellent idea to sell off council houses, wasn't it?

I'm taking the lump sum and drawing down up to the tax threshold and then claiming the tax back

Yeah take casual jobs in the winter . Out of the house so not using heating .