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 😊

Me too. I’m planning to retrain to a profession where I can keep working for many years (part time and flexibly) because I can’t afford to retire

Is DH eligible for PIP? That would help a bit financially.

Hi all, I don’t know if this will help anybody:

https://www.moneysavingexpert.com/reclaim/home-responsibilities-protection/

It’s an MSE walkthrough on how some women can claim missing NI payments for caring/childcare responsibilities between 1978 and 2010.

AgeUK are a useful source of information and help for people worried about paying rent, etc. in retirement:

https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/housing-benefit/

Totally agree, I think the problem is that working people on very good incomes expect to get the same in retirement but you won’t need that much, you will manage on what you get. And honestly will still afford a holiday too.

Yes - 52 and likely to remain single, only started paying in to a works pension 4 years ago. It's looking like most if not all of that will go on rent when I retire, if I get to that age. Sometimes wonder if it's a waste of time paying it.

This would be politically toxic. We'd be telling that generation that they need to stump up to pay tax (or NICs) to fund state pensions for the generation above them without benefiting themselves. They'd basically have to pay twice - their parents state pensions and then enough into a private pension just to give themselves a similar level of retirement income.

Politically I can't see how it would ever happen. The policy would be a massive vote loser for any party that suggested it, but it would not raise them a penny to help with public spending - the savings for the treasury would be decades away.

You need estimates of both pensions. Highly important that you check your NHS service record every year. Great Facebook page for NHS and public service pensions.

I was discussing this yesterday with friends. I’m not going to have a great pension as I didn’t pay any attention to it until recently. My plan is pay off the mortgage rent out the house and go and live somewhere cheap in the sunshine probably in Asia where food is cheap and no heating bills to worry about.
Sod getting old here I’d rather die under a palm tree than staring at a magnolia wall…

I manage on £17k a year (see post a bit further up)

Oh OP, you will be ok. It sounds like you have worked as hard as you can given the circumstances, and are doing the best you can too.

I'm in a similar, probably worse position. My DH has an ok pension, but it's his obviously and I know we're married but I won't have much of a private pension unless I started being frugal now.

I'm 44, and have a very meagre pension from an old employer years ago. Literally worth only £5k. My state pension will be ok but it's not going to be a life of caviar and champagne. I know I am a spend thrift, squander money on crap I really don't need but buy to help fill an emotional state. I had a terrible head injury and post concussion syndrome before being injured by an off label antipsychotic after, and I have been living with a permanent neurological involuntary movement disorder called tardive dyskinesia since.

I've wasted money on buying things to make me feel better as I have been incredibly depressed at times. It's not a good plan, I'd say I definitely regret being so addicted to online shopping.

I may inherit some money one day, but it's not something I should rely on. I need to keep money for my three children, and I know the cost of living will really affect them all a lot more than it is now.

Anyway, the point of my rambling was to say, I get it OP. I'm as worried about the future as you are too 😢

I would consider my self very comfortable if I had that much, I live on less than 12k.

Similarly downsized retirement in under 10years particularly due to DH being unable to hold down a job for last 3 years due to illness. As yet still undiagnosed but he had a growth found on recent colonoscopy and awaiting histology, so maybe related or incidental.

All our savings have gone to survive.
I can, and do, work 30 hours a week, but so much much goes out on fixed outgoings and food, I can't see us surviving on my retirement pension.

Dh doesn't have pension fund, he plundered it when his late wife died, at the time he was fit and healthy and didn't raise it as a problem.

So don't beat yourself up, just try to make the best life you can with what you've got. Consider renting house space to someone which would help with bills etc.
Do any free competitions, yes unlikely to win, but someone does, and hope for a distant relative to leave you a bit of extra.
And of course, you don't have to retire at retirement, plenty of 70+ yr odds working in NHS.

I’ll work till I drop. All there’s to it!

I think that's what the Government expect us all to do. Very depressing thought 😕

Yep I am recently divorced at 53. I have bought with my settlement a postage stamp 2 bed. I purposely chose not to get a mortgage so I could save save towards retirement. But being in a min wage job....there's not much of that.

I had a serious accident at end of 2024. I have had to quit my job in aviation as it was physical and I just cant do it now with my injury. I don't qualify for any benefits. Im currently temping here and there (having to relearn after 20 years Microsoft for office work) and living off the limited savings I made before this shit show happened.

My plan for retirement is to travel around Asia living as cheap as possible whilst renting my house out and I hope I die youngish!

Same.

I had zero money in my 20s for a pension, 30s I managed to save a little bit of pension after I had DD.

At 45 I had to become a full time Carer and as such I can only save my £3600 per year as a non worker into my pension.

Thankfully I have already got full NI contributions as I started working at 15. Will be stuffed if they pull
the State Pension.

I think my pension pot is about £30k. I’m absolutely screwed. I hope to go back to work one day but I have no idea what I could do now, all my former skills are useless as tech moves on.

We'll never be able to afford to buy our own home, and neither will millions of others. It's as unattainable as flying to the moon.

totally sympathise - we are early 60s and quite high earners - but my H refuses to compromise and move from our lovely big rental house in a nice area at all in order to at least bang maybe£20k a year saving into savings for 7 or 8 years - his view is anything can happen so he would rather cross that bridge then - he is likely to inherit depending on how his dad gets by at 86 and we could probably in that case buy a share in shared ownership outright - I feel really conflicted as we work together so can’t save up independently without affecting what we pay out now - he’s got high standards and I can see he would hate being poor and very restricted on a very tight budget - I have seriously considered leaving and cashing in part of the business that he would have to pay me just to feel a bit more secure and yes he does know how I feel about it - he hates the Uk though ( is British) and i know doesn’t want to retire here anyway .

I’m not sure what your point is. I’m referring to OP’s position, who clearly says in their post that they currently have a mortgage, not about those who aren’t on the ladder.

Pension Credit will top up a state pension if savings are under a certain level. Also means CT isn't payable and entitlement to winter fuel allowance.

My late mum had SP, PC but was also entitled to Attendance Allowance and her net monthly income was around 1500k with no real outgoings except utilities, house insurance and food. She was well provided for.

I worry about my own situation as I was late to the party paying into a workplace pension (SAHM working part time until 16 years ago when I was able to go FT)

My workplace pension will probably pay out less than if I was claiming pension credit and it will be taxable and ill be paying CT !

Pension Credit doesn't top up a full new state pension, only if it is old style (i.e. smaller) or new style and not full.

Thanks, I wasn't aware, mum's must have been old style then, she was widowed after my dad died and lost his pension and his 2 small private pensions.

You could also rent your house out and move abroad to a sunnier cheaper climate for a few years, that’s what I’m thinking of possibly doing

The rent you get for your house in the UK should more than cover rent in a cheaper place abroad and there should be some left over if you choose the right location, then when you are abroad you could get a job in a nice cafe 1 day a week

You can't do this for more than 90 days without getting residency , its become much more complicated since brexit