no pension!

JAMIEDODGER

hi, i am currently a SAHM, and cannot work due to having a disabled child and a small baby. my plan is to re-start work once my youngest goes to school which will be september 2008. i am a single parent.

my question is this...i am really worried what will happen as i have no pension i am 32. i would like to start contribution something towards my retirement but not sure of the rules on this as i am currently on income support. i have an ISA (just opened last week so nil balance at mo). and i dont pay tax....

any suggestions or comment out there, thanks in advance

penrhyn

If you figures are correct you need to pay out £300 odd per month to pay off you debts, not including interest charges.
I would not bother with any long term savings until the debt is reduced, as the interest on any loan will be greater than anything you can get from an investment.

An ISA is a tax free savings scheme, since you don't pay tax there is no advantage in it for you.

You may be better off not having any pension provision as this will count against any state benefits you will be entitled to when you reach state retirement age.

JAMIEDODGER

thanks, obviously i wasnt intending to start contributing until all my debts are cleared, just wanted advice for what to do when i am that position as its in my long term plan. i know an isa doesnt provide any real benefit for me but it pays better than my ING account so thats why i opened it.

people keep saying state pension will not be around when i retire, which worries me, also its not a lot to live on and would like a better income in my retirement,

thanks for your comments x

BLACKHURSTM

barclaycard = 300.00
capital one = 520.00
computer loan = 339.00
car loan = 4463.28
overdraft = 2100.00

Sorry to sound negative but this is meant as a positive comment.Sell the car this will would have a major impact on your ability to clear the debt.I understand you might need a car for very good reasons but not one that still has £4463.28 to pay off on it.You say you have a disabled child,if this is the main reason for the car value,can you get any help with the cost motability maybe.I apologise in advance as I am not too knowledgable on the motability subject and maybe it is only available to disabled adults.
But as always hit the account that is charging the highest rate first then in order.
As for

penrhyn

Sorry to be a bit negative in my post, maybe the goverments website can help a bit:

http://www.thepensionservice.gov.uk/

JAMIEDODGER

blackhurstm. i would love to sell the car (ford galaxy) unfortunately, i have 4 kids and one is disabled and cannot walk. i am disputing his mobility DLA at the moment as the original claim, dated 2 and a half years ago looks like it might have been wrong and its possible i would get backdated (about 4K) if this happens i will pay off bank loan, if not, i should recieve it from now on and it will cover the monthly car payment. getting rid id not an option for me unf, thanks anyway.

penrhyn, i didnt take your comments negitavely, thanks for your assistance x

BLACKHURSTM

JAMIEDODGER
Hope all goes well with the claim,It would be nice if they pay up and do what the tax people do give you interest back,don't hold your breath.

That all said given your posted circumstances and your recent posts,you seem to have a excellent grasp of your expendature and debt.

Have you posted for help on the mobility issue maybe there is a MSE that can give you some help.

dunstonh

Don't worry about pensions and what you should do until you are in a position to look at one. (i.e. after debt cleared). The options today may be a lot different to the options there are when it is time.

JAMIEDODGER

thank you for the compliment. i have posted for help regarding the DLA issue and will be going to see CAB with regards to helping me complete the necessary forms, so, fingers crossed. i never, like most people intended to get into debt, my car was bought with a loan as a direct result of the mobility being refused, as i had no other choice. (its a shame they wont be paying me back for the interest on the loan either!) the rest was stupidity, which i am now dealing with. i just want to make sure mine and my childrens future is as financially secure as it can be and spend time on here trying to make every penny work as hard as it can for us!

many thanks for all your suggestions x

EdInvestor

I suggest you get a state pension forecast and make sure you're updated for Home responsibilities Protection.

http://www.thepensionservice.gov.uk/atoz/atozdetailed/rpforecast.asp

When you go back to work later make sure you contract IN to the state pension, as the second state pension (S2P) has been reorganised to help lower paid people , part timers and carers (assuming you will be lower paid).

JAMIEDODGER

thnaks ed, i have registered to find out my forecast, i have to wait 7 days for a pin, looks like i have been put into the additional state pension too as i recieve IS and carers allowance, thanks very much for your help x