[Closed] Are you worried about how to pay for your retirement vs working forever?

I don't worry about retirement as I'm never going to get there.

The retirement age currently seems to be going up faster than I'm getting older.

no.

I'll make sure i've no savings and will have long-since signed my house over to my kids. That way i'll have no assets and the government can pay my keep.

Seems fair to me.

[i]I've no pension plan but we try and save a bit. How much do you need for 'old age'; would be lovely to retire and have some enjoyment, but scary to think you might need enough for 20+ years.
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Half your age, as a percentage of your income - if aged 40, save (and invest) 20%..., and catch up all the years you haven't.

+1 for grantus

I ain't paying for no nursing home, fool.

Planned for it, retire in 2013 with immediate pension, lump sum and it gets index linked aged 55. I will, of course, keep working like I haven't got the pension, so will improve what I save / invest until I retire.

I have a target to be retired by 55. I have made adequate provision for that so far. Should be mortgage free in a few years if my move out of London comes to fruition.

Its all about living well within your means, I save over 20% of my net salary and thats on top of pension provision.

Whilst collegues and peers race around in Porsches TTs, and Audi S4's I've got a skoda 🙂

no nice final salary pension for me.

Don't think I'll ever really retire as I have no pension and no likely way of getting one - but will hopefully have paid off my mortgage and not have many outgoings. When I start to get really ill/infirm then probably a trip to Dignitas or taking up Wing Suit Base Jumping. 🙂

I spent years paying 15% of my income into a private pension. Not any more! According to my statement it will provide me, annually, with about the cost of a packet of Werthers Originals a week. For a year or two at least.

I think by the time i reach what is presently considered 'retirement age', the whole concept will be regarded as a quaint late 20th century anomaly for all but the super-rich.

So I'm *ed if I'm handing any more hard-earned over to whoever it is at Legal & General who's made a *ing fortune out of mine and everybody else's pension contributions thus far

Agree with Binners. I've never worked for anyone that offered a final salary pension scheme, and anyway I've worked for loads of different companies. I used to save into a private pension until about 5 years ago, and it just seemed pointless. Current projections show that I'll be lucky to buy a whole packet of Werthers...

I'm 42 so it's probably time (or late) to do something about it, but whatever I do it won't be handing more money over to legal & general.

I have a pension but I suspect it's a bit like Binner's

I keep getting letters each year asking me if I want to stay opted out, in, out - shake it all about
I don't really have a clue

I'll probably sell up and go live in Spain on the proceeds, if that runs out, the kids [anyone under 30 now] can sort it 🙂

one of the few things I thank my previous employer for was setting up a stakeholder pension scheme.

Run by Aviva, I can continue to use it to pay into from my own business (just sweeping surpluses into it offset against tax as and when they exist), but unlike if I were to set up a new pension fund Im only charged 1% pa on assets. Which seems OK to me for the asset management service I get.

Before reviving my pension fund I used ISAs to sweep spare into. They just sit there ticking along.

I have no idea whether I'll retire, or just find things to do for which some of them I may get paid. When the kids have buggered off, Id like to disappear with a rucksack, walking boots and bivvy bag for 6 months though...Only 17 more years to wait...

Old style pensions are very expensive. Some current pensions are too but there is value to be had. It's important to remember that a pension is just a long term savings 'wrapper' with various tax benefits but which also has drawbacks. Generally it's best to consider different methods of savings including pensions, ISAs etc.

It's then important to get the investment strategy right and this will be different for everyone and of course not to pay too much for it.

The problem is there's no savings culture currently and we're all constantly sat in front of a big shop window which doesn't help (internet). That combined with the closure of final salary pensions spells trouble and it's scary how much you need to save to secure a half decent lifestyle.

Relying on the State is not to be recommended as the aging population means less working to support more retiring. Pretty gloomy really.

It's also pretty hard to find a decent adviser and even more so if your earnings/wealth are not at the higher end.

I'm in a great postion, thanks 🙂 I got to retired at 40. But partly for an very unfrotunate reason that I wont go into.

I was however planning to retire in my mid 50's and was lucky enough to have had a final salary pension for a good few years. But the pension I got after it doesn't look so good.

The sign you house etc over to your children route, although seems a great idea is infact very complicated and there is lots of advise online about it, The major pit falls seem to be:-

Very complicated gift/inheritance laws when you do it. The tax office are very reluctant on giving up their slice (Bar Stewards that they are)

If you need to go into care, in the current cliamte, councils have no money so you will end up it the cheapest option they have. Not something to look forward to, somebody working in a dump on minimum wage responsible for your happiness in your final years....

Signing over to your kids, also means there spouse. So if they split they could make you sell it so they can have their bit.

I may be okay, but our kids are ****ed......

there'll be a massive civil rebellion way before I retire.....

Signing over to your kids, also means there spouse. So if they split they could make you sell it so they can have their bit.

better in trust

it's scary (but a long way off) for anyone in theirs 20s. Somedays i wonder whether i'll be working past my centenary.

based on the fact that when the state pension was introduced in 1909 it paid out at 70 but life expectancy was 52, i wouldn't be surprised!

hopefully all you old gits will get some kind of rot set in 😉 so i don't end up paying for you for the next 75 years!!

Are you worried about how to pay for your retirement vs working forever?

To directly answer the question - no

If things were so dire in old age that life was a misery, I would hope to have the wherewithal to put an end to it.

Dan1502 - Member
That combined with the closure of final salary pensions spells trouble and it's scary how much you need to save to secure a half decent lifestyle.

Spot on Dan, the difference between a final salary pension scheme and a money purchase scheme is massive. Age 51, I've got a combination of both through various jobs but still can't see myself retiring before the normal retirement age. The problem is us oldies will stay in jobs for longer which will make it even more difficult for younger people to get jobs.

Mum and Dad shafted their children, and the bankers shafted everybody.

I'm hoping to die before I'm 70, think I might take some retirement now.

And the Government didn't do anyone any favours by shafting final salary schemes.

Here's a question for the STW pension experts: can you start pensions for young children? I have some young nieces and nephews who I would like to support financially and a 50 or 60 year long pension fund might be a good way to do this; is this a stupid idea? Would I be better off just paying into a savings fund / bonds?

i have resigned myself that i will work to the day i die............and to be honest i reckon it is a good ploy.

how many people truly enjoy their old age/retirement.
how many people who pay loads into a retirement fund reap the benefits of it.

worked with a bloke who had a pension from the forces and a pension from the police, he came to work with me aged 55 and retired at 60, he died within 18 month of leaving work.

my father in law retired 2 years ago aged 65. mortgage done plenty in the pension pot, but worried to death that it will run out, he also spends 8 hrs a day on the allotment, say's he wished he could have worked on.

I'll make sure i've no savings and will have long-since signed my house over to my kids. That way i'll have no assets and the government can pay my keep.

Seems fair to me.

This is a good idea. In fact, I think I may just quit work now due to 'ill-health', have loads of kids and let you all take care of me from now on 🙂

Expecting to work until I die - once I get too old it's time for the short term heroin habit (cheaper than a trip to Switzerland)

Paid into pensions for 15 years, 2 are worthless & the other was with the equitable so goooone. Still at least the past 10 have been on a final salary pension - it's the main reason I stay in the job.

You can pay up to £3,600 pa (gross) into a pension for anyone. The payment would be £2,880 with the tax relief added on. You can't claim additional tax relief.

It can be a good idea but you need to think about the pros and cons. You might consider helping them towards a house purchase or education fees a higher priority or at least like there to be the option to access funds for such purposes rather than have to wait until age 55 to benefit.

our company accountant has a lot of Asian clients and he says not a single one of them has a pension scheme. They don't trust them.

They invest in other ways such as property.

I think this is the best idea.

Overpay your mortgage - at least you know where it's going. Then, when you pay off early - either try to invest in a smaller property for retiral or holiday type flat or put the mortgage money away into as high an interest account as you can.

Or emigrate to Eastern Europe - if you're going to be poor, might as well do it somewhere where everyone else is the same and beer is cheap 😉

Diversification is the best approach. Investing directly into property comes with a whole host of risks, costs and hassles and like anything else, if you get it right it can be very rewarding but if not then it can go horribly wrong.

Overpaying a mortgage can also be a good thing. I have done this to an extent and still am a bit but have toned it down as my interest rate is currently rediculously low.

And to say it again, a pension (a decent policy at least) is just a wrapper that holds investments. So the clients you speak of basically don't trust investments other than property. There are investments you can't access using pensions but I'm just trying to get accross that a pension is a means to get income tax relief up front and pay less tax on the funds whilst invested (including IHT benefits before drawn up to age 75) with the downside being the restrictions at the back end (maximum 25% tax free lump sum, taxed on income etc).

I encourage people to consider their goals and resources as a whole, develop an overall plan then think about the investment strategy and the tax wrappers and products/policies last.

The first and very important part is to consider what lifestyle you're aiming for and when then explore whether and how you might get there.

I'm just trying to work out how I can pay off my mortgage before I retire as the pension sure isn't going to cover it.

how many people truly enjoy their old age/retirement.
how many people who pay loads into a retirement fund reap the benefits of it.

Using only my parents as a model, they do and love it, they have a modest income from my dads pension, he retired at 57, and they basically live in their camper van for 6 months of the year traveling as they please.

That + some part time work, not sure weather it would be corporate via consultancy or working in a shop, would be what I aspire to. Deffo don't want to work full time till I die.

"Overpay your mortgage - at least you know where it's going. Then, when you pay off early - either try to invest in a smaller property for retiral or holiday type flat or put the mortgage money away into as high an interest account as you can."

This has some merits but so has a balanced portfolio of investments which I believe pensions have a part.

I wouldn't be paying off all my mortgage (when rates are sooooo low) at the expense of putting monies into ISA or a pension. Massive tax gains involved with each, be they realised now of offset in the future

Final salary pension paid for 32 years until they changed it to a career average earnings from April 2009
Not too bad because I have been the highest engineering grade before management for the last thirty years

Lose a bit for retirng early, but fifty five is enough for me, so should get about 2/5ths salary and three times that as a lump sum

Wife gave up work to look after our daughter, but she had eleven years in an index linked final salary that pays at sixty and been paying into another pension scheme for the last five years

Never know might even get a state pension one day, but not betting on it

Work out your standard of living costs today, at what it might be if youo retired. Lets say thats £20,000.

Now, retire at 67, and live until 90. Thats 23 (years) x £20k not accounting for inflation, or £460,000.

Have a think about how much money you need to save/make between now and age 67 to get to £460k or whatever your number is...

Scary eh 🙂

In my case thats 28 years, or £16.5k a year.

This is depressing - I think I may send a letter to that boy and his wife in Largs!

coming up 50 quickly so we have our own home and a bungalow that we own mortgage free so what was there mortgages and what should be my pension contribution and bought two terraced houses on mortgages ( they should be paid off in 10 yrs) so giving me an income or a pot come 60 ish. realistically poor health we see me off before then but mrs tts should be ok esp. if she can snare some rich bloke!!

The government doesn't pay for anything.
The taxpayers do. That's us.
And in the case of pensions, our kids with their taxes. Who are going to have a hard enough time as it is.
The aging population is a fact of nature. Nothing to do with the government. And we'd vote out any party that made the necessary changes to NI and taxes.
I wouldn't expect much in the way of benefits when I retire c2035, there won't be the money to fund it. Only the very poorest will be fully funded.
My plan, Work longer (we live a lot longer than when retirement ages were first decided anyway), and then semi-retire.
And in the meantime a few less shiny bits and a little more saving...

Just bought a place in Spain and could now Retire by letting our house in East London.
But we are looking at buying a couple of cheaper properties in North of England to rent, and still keep
our London home.
But probably later cash in homes minus London home and buy a couple of places in Spain to rent
out has holiday and short stay lets.

You seriously can't rely on something that i just can't see you being able to live on
and may not even be there for when you do retire.

I have pensions plan and I chuck a quite a load of dosh at it but it will not support me in anything like the lifestyle I'm accustomed too, so I plan to work at least part time in some capacity for as long as my health permits or I croak.

I'll make sure i've no savings and will have long-since signed my house over to my kids. That way i'll have no assets and the government can pay my keep.

Seems fair to me.

Pray you never need to go into a nursing home then, I wouldn't wish a state funded nursing home on my worst enemy. A truly awful way to live out your remaining time in this world.

Seems very strange to me to work hard your entire life, saving for your retirement, then give it away when you will most likely need it most.

Seems very strange to me to work hard your entire life, saving for your retirement, then give it away when you will most likely need it most.

How true is this!

I retired a couple of years ago, aged 50. I'd been paying into a final-salary scheme for 30 years and was very canny with my mortgage (mostly by not moving into increasingly more grand houses) and not getting into any other debt. I still think these latter factors are the ones that lots of folk seem to be missing. Having expensive cars, houses, holidays and other trinkets is one option, planning a bit for the future is another.

Scares me at the thought of it - you don't see people sat in front of macs in their 60s designing, you're burnt out way before then! Salaries don't compensate for this either, wouldn't recommend the industry to my kids!

+1 druidh Looking at retiring at 55. Although strangely I enjoy my job so happy to go on but keenly aware that these are my best years so making the most of them so making sure there's plenty of me time. In later years i have managed to avoid promotion and increased worlk load ha ha

I am sort of the opposite to Druidh - sold everything and put career on hold in the 90s so started more or less from scratch again at 30.

However have built up a lot of equity in property and do have around 15 years in final salary pension contributions. 9 more to go

I will have to work until 60 and will be not rich but I will take my less well of retirement in exchange for the fun I had spending the money along the way

Isn't it all about balance? There are people who work like mad, save most of it then drop dead early having never really enjoyed themselves which is sad. Then there are those (probably more common in later generations) who spend naively not realising how much it costs to build up a fund large enough to retire with enough to support a reasonable lifestyle (and what if you aren't healthier enough to work to an older age?). However getting the balance right is not easy. Proper planning is the best answer ie sitting down and working it out using projections (either yourself or with a proper financial planner).

And at Druidh, final salary pensions are generally great. It's just that most don't have access to them now and people tend to move jobs more frequently so rarely build up 20, 30, 40 years anyway.

Dan1502 - agree that FS pensions are coming to an end, but there are career decisions I made along the way, like turning down [i]apparently[/i] better paid jobs with other companies. And like Pawsy_Bear, I was happy to turn my back on various promotions which might have seen me in more pressured, but ultimately more replaceable/disposable roles.

I have never earned enough to pay into a pension and the house I have a mortgage on will get sold when my son leaves school as my ex lives in it.Basically I have to work until I drop unless I kill off all my siblings and am the sole beneficiary of my parents estate.

I paid into a pension for years from when i was 20ish till 27, worked for a supermarket chain that was sold to another, then the store i worked in sold to another company, pension frozen and tbh no one seems to know whats happened to it, lost somewhere between retailers. I left that job and started a new job in 2008 and started a pension again in 2009, current rate it will pay me a modest amount. Stuffed as ive never had a mortgage never owned my own house or flat, always rented, from 1st of march next year i will be debt free, so plan on paying 10% of my salary into a savings pot for my future, ethier buy some property later in life or use this to fund my retirement.

I serious doubt i will reach retirement age, anything can happen in the next 30 years!

According to Mayan prophecies, we're all going to die next year anyhow - so rack up massive bills and enjoy the last few months of your lives - well until it turns out to be false and then we're ****ed.

On the day I retire, I'm going to go and rob a bank.

If I get away with it, I'll have a nice fund to enjoy retirement with, and if/when I get caught - the state will pay for my board and lodgings, washing, TV etc, hopefully living out my years in a nice easy open prison.

(obviously, I could end up getting bummed to death in wormwood scrubs, but thats a risk you gotta take, innit :lol:)

I don't have any desire to retire early. Like druidh, I've made specific decisions about work, but mine have been to choose a career which I enjoy. Consequently I enjoy my job - the work is interesting, I'm constantly learning, and the people I work with are fun. So for me, going to work gives me mental stimulation and social enjoyment as well as an income. Sure, sometimes it's stressful, and I work long hours, but I also get 6 weeks annual leave plus bank holidays and TOIL, so I do have a fair bit of time off to travel etc (although my biggest problem is usually having too much work to do to be able to take all my leave).

I don't have a problem with working til I'm 67 / 68, given that the average lifespan has increased significantly, and I suspect that even after that I'd like to continue doing part-time research.

As for pensions, I do have one but I'm increasingly questioning if it's worth it, and whether it would be better to put the money into property instead.

Not worried about it but I'm not going to want to rely on the state. I'm 28 and I think I'll be looking at near 80 when I retire as the government age is going to keep going up to compenste for an increasing life expectency and the large number of baby boomers about to retire. A lot will change before I retire. WW3, flying cars, living on the moon, collapse of the west/rise of the east, alien invasion, the rapture...

Never had the option of a final salary and never will. I do save into the company pension scheme. Put in 6% of my gross wage and the company puts in another 12% on top. It's a good scheme, I don't need that 6% so I'll take the "easy" money they are offering. Might die before then but it's a risk worth taking.

I also have saving set up on top of the pension. Might need this money before retirement but at the minute I'm comfortable so try to put money away for the future.

There are suggestions kicking around of doing away with governemnt retirement all together. It's a relatively new idea for all but the very rich. It was originally set at 65 as that was the average life expectancy. It was a think tank so probably not to be taken too seriously but they suggested no pensions just disability benefits for when you were no longer able to work.

My plan is to emigrate somewhere warm and cheap to live when I get old. Little bit of money goes a long way in less developed countries and i'll free up space in the UK (or wherever I end up until I retire) for someone else and no miserable cold weather.

Instead of going to those kinds of countries now when I need to get on with my career I will go later in life when I have some savings and have sold off all of my assets.

as a pro stoner i never intend on working that much any way... will die of lung cancer long before retirement age..... IE waiting for parents to snuff it

After losing my Dad recently, Mum has been told Pops pension pot has lost 50% in the last 2 years!

I have never earned enough to pay extra into a pension, think I will be well stuffed!