Worried for my future

pscotton

Hi,

Sorry if this is in the wrong section, maybe the administrator could move it if he feels there is a more suited section for my thread.

I am a 45 year old male. I used to pay into a pension about 10 years ago but had to stop because I couldnt afford it as my ex wife had built up a lot of debt. We finally divorced 6 years ago and sold the house to pay off the debts. I moved to Spain to start afresh with what money I had left... not a lot, my ex had spent all my savings.

My old pension is only worth 2000 pounds when I finally retire. I have no savings, I dont own property and work for myself in Spain, but only just scraping by. I could move back to the UK but as the financial climate is bad right now, I would rather struggle in Spain with cheap rent and bills than struggle in the UK with high rent, bills, council tax etc, etc.

I recently married again but I am worried about my future. What happens when I retire in 20 years (if I retire then, I am a very young 45). Do I have enough time to organise a future for me and my wife (she has no savings too, but 10 years younger than me, she is currently unemployed).

I get by on what money I earn but never have enough to save or put into a pension.

I am scared about what the future may bring when I am old. Please can someone give me some advice on how to save money on a budget and plan for my retirement.

Many thanks for your time, Paul.

Primrose

Paul - you don't say what kind of work you do but you infer that it may be fairly low paid. Obviously you and your wife need to sit down and really devise the most stringent budget you can and make it a daily challenge to stick to it. Once you've got your expenses written down on paper, you may find opportunities staring you in the face where certain economies could be made and the money paid into safe savings for the future. Also, you have a good number of years to go before you retire, and your wife even more so. Could you both use this time of recession to retrain and reskill yourself, or add additional skills so that your future earning power could be increased? You don't say whether you and your wife can speak Spanish. I would think for a start, as that is the country where you have chosen to live, that fluent written and spoken Spanish should be a minimum for you. If you are not able to totally integrate with local people you will never be able to network properly and efficiently and possibly widen your earning options.

pscotton

Hi Primrose,

Thanks for your reply. I work as a graphic designer, but in these bad times not many companies want to spend money on marketing, or want to do it on a budget. I have been a designer for 28 years now and that is the only trade I have under my belt.

We have sat down and gone through our finances, but my income is so up and down we never know if we have a wage one month and nothing the next. We both speak a little Spanish (I have been here 5 years now) and I go to regular networking meetings, but it seems everyone I meet is in the same boat in this financial climate.

I just thought I would come on this forum to see what I should be doing now to plan my retirement (financially).

Thanks, Paul

dunstonh

lease can someone give me some advice on how to save money on a budget and plan for my retirement.

Most of the UK options are not going to be available to you. With you working and living in Spain, what retirement benefits do you get there? How much UK state pension did you accrue from your time in the UK?

krisskross

Are you legal in Spain, paying into their Social Security system? If you are then you will have entitlement there if you stay.

You need 30+ years here of NI contributions to claim State Retirement pension. Will you fulfil this?

Difficult for you as you have problems paying for day to day living so saving for retirement will obviously be taking a back seat. I have no idea if you can just return to the UK when you are 60 and claim pension credit.

pscotton

I only paid into a pension for a short time in the UK and accrued 2000 pounds by the time I stopped paying.

Yes I am legal in Spain, I have paid tax and social security for 5 years.

I just worked out that from the time I left college I worked in the UK for 23 years ...and also worked part time while at college for 3 years. So even if the part time work was counted, that is only 25 years!!!! So that means I am not able to even claim the state pension in the UK!!!!

Oh my god, my situation is worse than I thought. What if I moved back to the UK again and started paying UK social security etc again does that get added to the 25 years paid already?

Another option is that I live near Gibraltar, so if I worked there (a job opportunity may have arisen there) as it is classed as the UK does that count as paying UK social security and so added to the 25 years?

Sorry for all these questions, its just that I am really worried about my future more than ever now.

Primrose

OK, so you're a Graphic Designer. You do it, but have you ever thought about teaching it? You would almost certainly need to obtain a teaching qualification if you taught it formally in a school/college, but are there any private teaching opportunities out there for you? What did your wife do before she became unemployed? Can she do some part-time cleaning, working in a Care Home or in a bar/restaurant? If you are finding it difficult to put any money aside for the future, this has to be a time when all options are put on the table and considered.

pscotton

I am ahead of you there, I have already applied to 2 design schools here in Malaga, but both are not looking for teachers right now but keeping my cv on file. And I have tried privately, but no clients yet.

But some good news, while typing this, a design agency here in Spain just called me this second and said can I work for them for a few days next week with a possibility of a full time job soon ...could be what I just need.

As for my wife, she is a native Arabic speaker and used to be a translator and teacher of English in Syria. We are just waiting to hear from some translation agencies she applied to.

I think we have gone a bit of topic here, sorry everyone.

Back to the subject matter. If it looks as though my luck has turned slightly with this phone call, so what are my options to plan for my retirement (in 20 years time) bearing in mind I am British but living and working in Spain?

EdInvestor

pscotton wrote: »

I just worked out that from the time I left college I worked in the UK for 23 years ...and also worked part time while at college for 3 years. So even if the part time work was counted, that is only 25 years!!!! So that means I am not able to even claim the state pension in the UK!!!!

Don't panic, you can pay class 2 voluntary contributions to make up the missing 5 years, they only cost around 10 pounds a month, real bargain Very possibly your Spanish contributions will also be counted, meaning that you have already qualified for the UK state pension.

You can get a forecast here: www.thepensionservice.gov.uk

Oh my god, my situation is worse than I thought. What if I moved back to the UK again and started paying UK social security etc again does that get added to the 25 years paid already?

It would do, but I think you'll find your Spanish contributions are counted.

Another option is that I live near Gibraltar, so if I worked there (a job opportunity may have arisen there) as it is classed as the UK does that count as paying UK social security

No

and so added to the 25 years?

It probably would be, same as Spain.


While you're at it, suggest you write to your private pension company and get an update of the state of that fund. As well as transfer value, ask what funds it is invested in, what other choices are on offer and what charges you are paying.

pscotton

Hi EdInvestor,

Many thanks for taking the time to break down my questions into very helpful answers.

Yes that is a great bargain when you think about it and worth doing big time for peace of mind.

I will check out that website you suggested and will definitely contact the private pension company I was with in the UK.

As your 'signature' says 'Trying to keep it simple' ... well you sure explained it nice and simple to me, thank you.

I have been to website forums before and the answers I get from people sometimes blind me with science ...the people with the answers always explain it in the terms they know but not in the terms the average Joe public knows, so its nice to find someone who takes the time to explain it in simple terms.