49 & worrying I should get a pension? Is worth it?

Mamma_Castellanus

Hi afraid i have never been in a lucky position to be offered a work pension and I have now started to worry that I should need a pension to give me a bit of money. In the past I had been advised by colleagues they are waste of time and risky so havent. I dont have a clue with what is best and have never been good with money.

Can anyone help me start where to look? I have been with my new job (after redundancy) for 8 months now, its part time currently so I can not afford very much but they do not offer pension. Is it worth taking one out or better to save in ISA? can anyone advise? Any help I would be so grateful

jem16

Mamma_Castellanus wrote: »

In the past I had been advised by colleagues they are waste of time and risky so havent.

Usually spoken by those that haven't a clue either.

its part time currently so I can not afford very much but they do not offer pension.

It won't be long till they have to offer a pension and you should definitely take it at that point.

Meanwhile what other provision do you have for retirement?

dunstonh

In the past I had been advised by colleagues they are waste of time and risky so havent.

Idiots. People like that should come with health warnings.

Is it worth taking one out or better to save in ISA?

Pension beats ISA for income provision. ISA beats pension for capital provision (lump sums). Most people should do a combination of Pension and S&S ISA.

The bottom line is that if you do nothing then you are looking at an income in retirement of around £8000 a year from the state (assuming qualification). How does that compare to your current earnings and what you think you will be spending in your later years?

Mamma_Castellanus

Hi - Thanks already for your replies. i do not have any other retirement pension plan just a little saved away in ISA. I have worked full time all my life but had not such favourable advise.
Am I right that employers have till 2018 to actually give out pensions to their staff - I cant wait that long really before taking something out. Should I just get stakeholder pension? I dont think I could live on just £8000 per year from the state so looks like I wont ever be able to retire from work :-( Any suggestions?

kidmugsy

Mamma_Castellanus wrote: »

I dont think I could live on just £8000 per year from the state so looks like I wont ever be able to retire from work :-( Any suggestions?

I suggest you get the official forecast for your State Retirement Pension, then you'll have something reasonably firm to plan around.

I'd incline to suggest you save in an ISA now. Then swap to saving in a pension when your employer is required to contribute too. But, and it's a big but, I know nothing about how state benefits in retirement interact with savings and with pensions income. I hope someone will come along who knows a bit about that.

alun4

Start from the perspective that you will have to be responsible for yourself and your family. After that, the tax breaks you get from various investments (such as pensions and ISA savings) may help. The realisation that you may someday not be able to continue to generate income ... is a retirement plan! No free lunches!

JuniorSherlock

I'm 41 and in the same boat as you. I have worked for local authorities in the past and would have probably been put on their pension schemes, but I have moved around since then and have no idea what contributions I would have made or where they lurk.

I don't earn much either and have never earned enough to be able to put a decent sum of money aside. I also have some savings in a cash ISA but currently no pension provision. I have started to seriously think about setting up some kind of personal pension and have tentatively approached some IFAs for advice but am still waiting for any of them to get back to me. I'll share any info I receive with you

jem16

JuniorSherlock wrote: »

I'm 41 and in the same boat as you. I have worked for local authorities in the past and would have probably been put on their pension schemes, but I have moved around since then and have no idea what contributions I would have made or where they lurk.

Probably a good idea to find out. Some people do daft things and opt out of public sector schemes or take a refund of their contributions when they leave. Hopefully you did neither.

JuniorSherlock

jem16 wrote: »

Probably a good idea to find out. Some people do daft things and opt out of public sector schemes or take a refund of their contributions when they leave. Hopefully you did neither.

How do I find out? I worked for a local council for 2 years back in the 90s, then a French school for a year (which had their own pension scheme that I was obliged to pay into), then a school in Carlisle in 2006. I'm pretty sure that I paid into a pension scheme for all of these but since then have never heard a thing. I haven't opted out or taken a refund. They must know where I am as they have my NI number and the taxman certainly knows where I live.

jem16

JuniorSherlock wrote: »

How do I find out? I worked for a local council for 2 years back in the 90s, then a French school for a year (which had their own pension scheme that I was obliged to pay into), then a school in Carlisle in 2006. I'm pretty sure that I paid into a pension scheme for all of these but since then have never heard a thing. I haven't opted out or taken a refund. They must know where I am as they have my NI number and the taxman certainly knows where I live.

Try contacting them or use this service.

https://www.gov.uk/find-lost-pension

Won't help wit the French one though.

JuniorSherlock

Cheers, have just emailed both county councils with my NI number and PAYE numbers at the time. Hopefully they can help track down any payments.

Will keep an eye on this thread to see what other advice is offered, sorry for hijacking Mamma Castellanus, I'll let you know what the IFA says if any of them contact me.