Anyone else thinking they’re going to be a bit fucked in retirement?

[GinghamSkirt]

I’ve seen a few threads lately where posters are discussing how much pension they’ll have, and while I’m happy for those people I’m also quietly despairing at myself for sleepwalking into a rubbish retirement.

All my fault, not blaming anyone else - series of poor life decisions and lack of forward vision and planning. Not looking for sympathy! Just trying to figure out how it’s going to work.

I’ll have the basic pension plus a few thousand per year (income will be well under 20k.

I know lots of people live on that quite happily, but I’m living on more than that that at the moment and working full time, don’t have any spare to save or invest, house (mortgaged) is crumbling around me and I don’t have enough to go on holiday as I’m clearing debts.

Not that I’m entitled to holidays of course - but I see other people on a similar income having a couple of lovely holidays per year and am just kicking myself for being so bad at money management.

The cost of living is biting very hard NOW - what’s it going to be like when my income is so much lower? I do try very hard to budget and spend money in the right way - always looking for a cheaper option, cancel unnecessary subscriptions etc, bring my lunch to work, buy clothes (and sell them) on Vinted etc.

it would be nice to hear from people in the same position (retiring in under 10 years if indeed that does happen) who have also fucked up and are contemplating a very different retirement compared to many on here! I don’t have a partner so all household bills are mine alone, no shared income pot.

I am very lucky in the sense that I own my house although it is heavily mortgaged still, but in order to pay the mortgage off I’ll have to sell it and buy somewhere else. If I want to live somewhere that’s not a total dump there won’t be anything left to invest. So it’s great that I’ll be able to live mortgage free eventually and I know that a lot of people don’t have that luxury, but I can’t really look on that as an income source either.

i couldn’t judge myself any harder than I currently am, definitely feel as though I missed an important memo somewhere in life, wasn’t working while my kids were young and then bingo - divorce 🤣

I worked full time since but have not earned enough and there were too many years to make up for. I genuinely didn’t understand how hard I should have been focusing on my retirement at that point.
NI payments are all good though 👍

There are a few mitigating factors eg supporting family members, mental health issues etc but essentially I’ve been naive and foolish - as the future comes closer to being reality and the stark facts become clear, now finally I get it.

Anyway, at the very least this thread might make you feel better about your own situation - if not, I’ll commiserate with you 😊

Oh yes me too, i have no spare money to put away also , in my early forties but there aren't any jobs either for the last few years so i am either working or looking for work living off whatever i manage to save, just hoping i will die by 50

I downsized and had very little equity left but am now mortgage free, bills are less and it's an easier house to maintain.

As I began thinking about retirement, I decided to just stop buying crap. Cancelled Amazon Prime and now think through things more before I buy them. I was just buying rubbish because I could.

Is there any way you can cut back at all? I know it's hard when things are tight. Groceries and food prep are often a good starting point.
You could have a look at Rebel Finance School on YouTube - they have just finished a 10 week course of how to improve your finances.

I'll be in a similar situation to you. I think I'd be fine with that income based on current spending, however, I live in the SE and my tiny home is worth about £400k so unless there is a major revision of property prices I'm happy (right now at least) to move somewhere cheaper to release equity if needs be.

Whilst I'm not in an amazing situation, I'm better off than others.

I think more retirees will buddy up and live together. If you're both single, it could be helpful to have a lodger/ companion in your retirement years, to share the bills. Many will be 'rentirees' and will need to cover rents in retirement, as well. With housing the way it is, it could be a solution.

I think you're being very hard on yourself OP. It sounds to me like you've worked hard and done your best all your life.

I'm retired on very little money and it's amazing how, when you're not working full time, it's easier to save money. You have more time to shop around for bargains and your needs are much less.

When I retired I downsized. I actually moved to a lovely part of the country where property is cheaper and found that lots of other really friendly people have done the same. We're in the same boat and so socialising is dog walking and a picnic on the beach rather than expensive restaurants. Nobody has flash cars or glamorous holidays, we just enjoy the beautiful place we live, our little houses and gardens.

If I were you I'd make a plan of how to live your best retirement rather than regret not being minted. Don't worry - you don't deserve to have regrets in my opinion

I am 50 and I don't actually know what mine will be per year. How do I work that out?

It will be state pension (if still there) plus NHS pension.

No savings and I have always rented which is my biggest worry.

I think myself and dh will be ok if we both reach state retirement age. It's the years prior to that that I am worried about as state pension age is 67. Dh ( now 61) has a couple of serious health issues and really needs to retire in the next few years. My fixed term contract is ending next year and I think I'll be lucky to fin anything else easily. We wouldn't be eligible for any benefits due to some savings for retirement. We would have to downsize but then still have kids at Uni or who can't afford to buy themselves so really that would be making them homeless.
However I work in benefits for older people and when I look at out situation compared to some of the situations that a lot of people are in I think we are doing ok. Lots of older people are going into retirement years with no savings, very little private pensions ( although I guess this will change in the coming years ), huge private rents and many with big mortgages.

Well, first of all I think you’ve made some good decisions - you do have a house. Do you think you will be debt free soon (apart from the mortgage)? And sorting out the NI contributions is a big one.

Our income is going to drop hard at retirement but we should be just about ok. I would like to retire at 63 but am not sure I will be able to and another 11 years of work as opposed to 7 is daunting. I do wonder if I will be looking for small jobs and whether there are any these days. The conflict of course is moving to a cheaper area means fewer jobs.

@noxpensionI feel for you, it’s not a good feeling I know. You do have time on your side - in your early 40s you’ve still got time to make some provision, if your circumstances change. Hey we could always start playing the lottery 🤣 I hope you can try and find some enjoyment and peace in your life, something that will give you a reason to get up every day 💐

The most important thing you can do is own your own property - no mortgage outstanding. The sooner you can do that (by overpaying or downsizing) the clearer your retirement will look. I live very comfortably on approx £17k a year (which is taxable), a reliable car that's regularly serviced, few days abroad and a couple of UK breaks each year, and a small pot of emergency savings that I keep topped up. I do pay £1500 a year in management fees for my flat which hurts but I can't do much about it. To those who say cut your living expenses to the bone now and save every penny, gosh, sounds a miserable life and you might pop your clogs pre-pension age anyway. Own the roof over your head if at all possible and then retirement will be easier.

Being divorced and single makes it harder to tackle this but it doesn't have to be as bad as you fear.

One thing that stood out - why this? Are you making monthly payments of interest+ capital? What age does it run to? Generally your mortgage becomes easier and easier towards the end of the term as inflation benefits you.
although it is heavily mortgaged still, but in order to pay the mortgage off I’ll have to sell it and buy somewhere else

Also, don't forget life IS cheaper when you are retired. Lower outgoings (no travel, lunches, work clothes), more time to plan and cook properly using less expensive ingredients. Holidays can be taken at the cheapest opportunity (we have taken gorgeous 10 night cruises for under £500pp for example by travelling off peak and last minute).

And given you are aware of your situation, gives the best chance of improving it, even just a little.

Do you have any old pensions lurking around?

Some flexible jobs can carry on right through retirement to top up an income lower than you ideally want too, exam invigilating is a good example - work a few weeks a year (May / June) and earn enough to cover a holiday in September/ October.

It’s something that worries me constantly. I’m about to leave the hell that is the current private rental sector to buy a small house with a small ten year mortgage so will be paid off by the time I’m 60. But with a state pension and a tiny private one, how the hell I’m going to afford to maintain it, buy occasional white goods and pay utility bills as well god only knows. I did think about buying a spacious two bed flat, but the service charges increase every year and have to be paid of course for all the time you’re there so I figured that in balance, a house would be a bit cheaper to run and easier to resell. I’m 49, a low earner and single.

Solidarity from here too..and I rent too..although a couple now, at pension age I will be a widow, DH older than me. He only has state pension so nothing there for me.

@BG2015thanks for the tip, I will have a look at that! On the whole I’m getting much better st spending less on crap but I have further to go for sure. It’s also about resetting how I view myself financially - it helps if I see myself in financial crisis and need to cut everything to the bone, rather than a bit broke but can afford a few treats.

you can get a State Pension Forecast here
Check your State Pension forecast - GOV.UK

I don't know about the NHS one but there may well be a calculator somewhere on a website and if you are still paying in you should be getting regular (annual ?) communications from the scheme. The good news is that the NHS one is a defined benefit scheme so you are guaranteed an income for life, rather than having a pot which may or may not run out.

I'm 60 next year and so don't want to work til 67. In a low paid job that is hard work.
I am thinking how I can retire earlier or grab pension (with penalties and low to start with due to poor choices) and top up with equally crap paid job til age 67 when state pension kicks in.
I wish I had been more savvy in life generally!

Looking back, I think I was lucky to have my kids young. Times were hard in my 20's and 30's with no holidays beyond £9.50 Sun Caravans until kids were late teens, watching my colleagues climb the ladder but part-time me had no way to progress. But, now I'm rapidly heading towards 50, kids are all away and the extra funds I've found myself with are being ploughed into a private pension. I'm hoping with my works pension and private pension I'll have enough to enjoy retirement. I don't factor in the State Pension as who knows what age I'll be when that kicks in.

@GinghamSkirt it’s hard isn’t it. I’m also divorced and single, will be 60 next year and have an autistic 16 year old who will probably always live with me. After having to rent since divorce ( 10 yrs ago ) when i hit 55 I decided to take a lump sum from my small private pension and use it for a shared ownership flat. I still pay rent and service charge but now have a property that can’t be sold out from under us. It’s not ideal and the flat is small but we have security. I work full time and will have to for as long as i possibly can. I do wish I’d saved more into a pension when i was younger but equally never imagined this would be my life.

Having just topped up my National Insurance contributions in order to pay for the years after my early retirement, I would advise being very aware of what your state pension will actually be. If you can afford to do so, it’s definitely worthwhile maximising your income from that source.

Good for you.
I have recently been looking at buying. In my area my wage I would only afford shared ownership. Think? I have decided to just stay renting at least it's HA rented.

I suspect I will be working in some capacity or another until I die. I don't think I'll ever be able to fully retire.

I'm in exactly the same position. I know quite a few people who are around my age (early 50s) in the same boat. Most of my early jobs did not come with a pension and various life events meant that it wasn't the biggest priority for me at the time. It also seemed a long way into the future and now it isn't!
Won't you have paid off your mortgage by the time you retire? Most mortgages don't run into retirement age.
I've thought about it quite a lot an I'm not majorly worried about it. My thoughts are that I will either sell my house and buy a cheaper one to give me a lump sum, or carry on working 2 days per week to bump up income. There are people who do this at my place of work and they are doing it through choice, not necessity. I also think that having 5 days free per week would be enough for me to do plenty of things I like.
I go on holidays now even though my income isn't high, I'm just good at selecting nice but relatively inexpensive destinations. I think it will be cheaper when I'm retired as I'm currently confined to school holidays! I don't buy a lot of things so I don't think that will matter to me much.

Personally I don't have any need for holidays now that I'm hardly working at all and I have lots of free time to do as I please🏖️
Surely holidays are a thing that you do to compensate yourself for the stress of having to get up early and go to work every day?!

I am assuming I'll either be working or have died from a heart attack from the stress of working.

Not for me, we go to see an explore a new place.