Panicking a little about my retirement!

blottedcopybook

I was looking over a pensions booklet in the Doctor's today which explained in helpful terms that I won't be entitled to a state pension until I'm 68 years old. 68!! With my family history I'll probably be dead by then!

Anyway. I work in the voluntary sector and from the end of this month I'm likely to be unwaged for the next 3 years or so meaning I'll be around 30 when I re-enter the workforce. I'm 26 just now and have no pension facility in place and I'm not sure of my disposable income yet because we've just remortgaged.

My husband has a civil service pension, I don't *think* there's any provision for me in there and I *think* that starts at age 65 for him. Whether that'll change to 68 to reflect the state pensionable age I honestly don't know.

Pensions are something that totally daunt me and I really don't want to bury my head in the sand anymore, but I don't know where to start. Can somebody please give me pointers on what I should be doing now?

MikeJones_2

For starters, there's plenty of information about the Civil Service Pension Schemes here.

Ask your husband to make specific enquiries about spouse/dependant's benefits so that you know whether you are covered in the event of his death, and for what (lump sum, spouse's pension, dependants' pensions).

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

dunstonh

Yes, 68 is correct for your age. Also you will get less second state pension (based on current thinking) than most full qualifiers do at the moment. ie.. at the moment its possible for people to get in excess of £10k a year state pensions but for those starting out now its about £8600 and that assumes maximum qualification is achieved (and the second state pension still exists when you get there - which I wouldnt bank on. Basic yes, second - maybe not).

My husband has a civil service pension, I don't *think* there's any provision for me in there

Yes. Basically half.

and I *think* that starts at age 65 for him.

At the moment yes. Although it does no harm to work on the expectation that Govt schemes will be aiming to increase the age to match state retirement ages.

Can somebody please give me pointers on what I should be doing now?

An analysis of your current position with both you and your husband. That should be looking at what you want to have, what you currently have and the cost and ways of filling that shortfall.

It is usually best to try and even the retirement planning out between couples. Being lop sided with it all in one name is inefficient (waste of personal allowance for example) and hits harder if the wrong person dies first.

EdInvestor

You can get a forecast of what state pension you are likely to be entitled to by applying here, better than worrying about scare stories:

https://www.thepensionservice.gov.uk

The basic state pension is likely to increase in future as it will be raised according to earnings instead of inflation. The earnings related second state pension is being reorganised so that in the long term future it benefits the lower paid more than it does now. This will be at the expense of the high paid, but sounds like you will be a beneficiary..

People retiring in future will only need 30 years NI contributions to get the full basic pension, rather than 44/39 now, so although the pension age has gone up, it will be much easer to get it, especially for women.

Phlik

dunstonh wrote: »

.....and the second state pension still exists when you get there - which I wouldnt bank on. Basic yes, second - maybe not......

..and it's for that exact reason that I'll continue to opt out past the current recommended opt in age of 45 ish.

Phlik

dunstonh

Phlik wrote: »

..and it's for that exact reason that I'll continue to opt out past the current recommended opt in age of 45 ish.

Phlik

The good thing in your case is that you know the difference, understand the potential of both options and are making an informed choice which you will only know with hindsight anyway. You are taking the bird in the hand is worth two in the bush approach.

blottedcopybook

Thanks for all your help, I've got loads to go away and look at but I suspect I'll be back with more questions!