Worried about funding retirement

Gaia2014 · 7 November 2015 at 12:13PM

Hi all

I'm in panic mode at the moment and good common sense advice...
I'm well on the way to being debt free (finally). But, I have no savings of pension to speak of. I was paying into a pension but this has been frozen until next year when I will start making contributions again... But, I will still won't have much left to put into a savings pot because I'm paying sky high rent in the South East... move then you miight say

, That is the plan. But, I'm not in a position to do so until next year for a variety of reasons...

I guess my main worry relates to the thought that I could be paying rent in my retirement (as opposed to owning my own property) due to my credit score which may take time to recover after being DF. I tell myself that there is time even if it's later that I would have liked. There are options available. Sometimes panic can cloud all of this

. The thought of paying rent on a pension scares me (even though I know this need not be the case, because circumstances change etc)... I'd also like a famiily too, but all of this seems out of reach sometimes and I fear that I'm going to turn into a lonely workaholic...

So, words of encouragement would be appreciated. You need to know that I'm in my early to mid forties too, so that is also a factor. The pressure is on so to speak. What I want more than anything else is to find a partner and settle down. I'm stuck in a bit of a rut I think... I seem to have lost my spark and feel trapped by my circumstances, which psychologically stops me going out and meeting new people :wall:

andyfromotley · 7 November 2015 at 1:07PM

Hi Gaia,

its very difficult to comment on your retirement situation precisely without knowing all of your financial details, however some general observations.

1. restart your contributions as soon as you are able. The key to pensions is the regular contributions over a long time.
2. Reduce your living costs as much as possible
3. Review your pension arrangements and contribute an amount which will meet your retirement goals.

I find dave ramsey has good general advice on the importance of and how to save for retirement. As the beneficiary of a generous public sector pension which allowed me to retire in my 40's i can testify that although they are boring, can seem expensive and demand long term thinking you will not regret getting on top of this.

I am sure that it seems impossible to manage this and your other goals, you just need to make sure that you have laser focus on your finances and try to make it all happen. Good luck.

determined_new_ms · 7 November 2015 at 4:26PM

How old are you? Just save save save and maybe you can get a modest mortgage once your credit score is better. You could even save and buy outright up north for retirement

Gaia2014 · 7 November 2015 at 4:52PM

determined_new_ms wrote: »

How old are you? Just save save save and maybe you can get a modest mortgage once your credit score is better. You could even save and buy outright up north for retirement

Yes, I have considered that. I've also considered getting a modest mortgage and buying somewhere up north in the near future and renting it out. That former is preferable to having a mortgate in many respects. Also, I don't know where I want to settle yet (and circumstances will hopefully change for the better next year). So worth holding out for. I

Just resent paying high rent in the South East. Good for the home owners but not for the renters! Unfortunately (or fortunately) my job is down here and I moved here with my now ex-partner. I don't think I would have come back to London if it wasn't a joint decision at the time.

Oh, well. I just have to get on with it and not project myself into the future too much. At least when I get there I will have got there off my own back so to speak! Things could be worse.

... I'm early 40's.

foxgloves · 7 November 2015 at 7:26PM

I think London/South East house prices would make anyone feel trapped & worried. I live a long way north of you but in the north of the Midlands not ,the North' as such. I can assure you that it's currently possible to buy a nice little Victorian terrace type property in the fairly rural old market town where I live for around £95k. I suppose I'm saying that if you are prepared to move, there's no need to pay obscene London prices. I took VR in my mid-40s so am aware of the impact on my pension. I'm addressing this by budgeting carefully & saving.
Hope you find a way forward which works for you.

Gaia2014 · 7 November 2015 at 8:20PM

foxgloves wrote: »

I think London/South East house prices would make anyone feel trapped & worried. I live a long way north of you but in the north of the Midlands not ,the North' as such. I can assure you that it's currently possible to buy a nice little Victorian terrace type property in the fairly rural old market town where I live for around £95k. I suppose I'm saying that if you are prepared to move, there's no need to pay obscene London prices. I took VR in my mid-40s so am aware of the impact on my pension. I'm addressing this by budgeting carefully & saving.
Hope you find a way forward which works for you.

London prices are crazy... but if you own a property down here you're laughing. Which is the attraction for some I suppose. Not me. Not if it involves a hefty mortgage that is. I used to live in the Midlands and my ex-partner owns one of those terraces. Think he paid around £100,000 for a two up two down.. My mum lives in Scotland and she bough a lovely property for £120,000 so I realise the North is probably my best options as in investment or retirement property. I can't see me staying in the South East to be honest. But, I'm single ATM so anything could happen and a move isn't out of the question in a year or so since I currenlty have no ties to London.

Thank you for your reply.

Gaia2014 · 7 November 2015 at 8:24PM

andyfromotley wrote: »

Hi Gaia,

its very difficult to comment on your retirement situation precisely without knowing all of your financial details, however some general observations.

1. restart your contributions as soon as you are able. The key to pensions is the regular contributions over a long time.
2. Reduce your living costs as much as possible
3. Review your pension arrangements and contribute an amount which will meet your retirement goals.

I find dave ramsey has good general advice on the importance of and how to save for retirement. As the beneficiary of a generous public sector pension which allowed me to retire in my 40's i can testify that although they are boring, can seem expensive and demand long term thinking you will not regret getting on top of this.

I am sure that it seems impossible to manage this and your other goals, you just need to make sure that you have laser focus on your finances and try to make it all happen. Good luck.

Thank you. I Will make it happen. I have my moments when I think it never will though. PMA is essential and putting it all into persepctive. I also tend to compare myself to others (not good). Usually those who are better off or have had an inheritance. Not the average person who works hard to reach there goals. I need to keep that in mind sometimes.

Worried about funding retirement

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