Reality bites...

Neasy

Hi there all.

Firstly, a huge thanks to the wealth of knowledge and advice I've gained from reading this forum, in particular from some extremely thoughtful and knowledgeable posters (not naming names as I'm bound to leave someone out).

I started reading this forum intermittently a couple of years ago feeling that although I hadn't actually worked out what level of pension income I was expecting, I was in a final salary public sector scheme and paying my maximum Added Years contribution so everything would be fine. Then of course everything changed and (for me and most of my colleagues) Final Salary became a thing of the past - I know CARE is a defined benefit scheme and that it can even be better than Final Salary for some, but it was still a revelation that things can change so radically.

Over the last few months I feel as if my eyes have been opened. I actually started working out what pension I could expect when I retire, and when that's likely to be, and I had a huge shock :eek:.

I'm in my early 50s and had time off looking after the kids in my 30s in addition to working abroad in my 20s :beer: . Although I've tried to keep up my National Insurance contributions so that I should have 35 years by the time I retire (and I've asked for a forecast; thanks again MSE! :T) I realise that there's a whole chunk of time for which I wasn't making proper provision for a pension . Aaargh!!!

Anyway, I'm really trying to do something about it. I'm investigating Added Pension (or whatever the heck it's going to be called in the new scheme) and I'm trying to work out the best mix of putting more into my DB pension (which looks good value I think but which is tied to the ever-retreating State Retirement Age) and, say, S&S ISAs.

So I haven't really got a question, just a lot of gratitude :T for all the help. I'll keep reading and keep researching and hope that it all pays off!

Thanks,

Neasy xxx

mark55man

Generally - although you do need to do the maths - DB are worth their weight in gold, and so long as you are not paying diamonds (or printer ink) for that gold that should be a good move


Often advice for people in 50s seems to be consider S&S ISA's as they give you more flexibility to take income in the first year or two of retirement - allowing other schemes to come to their full value


I would also say your tax position now and expected tax position at retirement (in terms of higher rate and basic rate) is important as it can make a quite a difference to the decision you make (eg S&S ISA vs DC Pension vc Purchasing Additional DB)


Finally - now you have the appetite I would also start reading the savings and investment board, and possibly other sites monevator.com seems to come up a lot - I use Motley Fool - the web site is a bit trashy, but the underlying forums are a gold mine

sandsy

Depending when and where you were abroad, you might get a credit for NI contributions for that period. For example, when I actually spoke to someone at the Pension ForecastingService, I was advised to keep documentation relating to my time in Australia.

Sunbeam25

sandsy wrote: »

Depending when and where you were abroad, you might get a credit for NI contributions for that period. For example, when I actually spoke to someone at the Pension ForecastingService, I was advised to keep documentation relating to my time in Australia.

It all depends on what country you were in and what agreement they have with the UK. Research that and get in touch with Pension Authority of the country you were in. I did this with Switzerland (where I worked for several years) and they sent me all I needed to work out what my pension will be.


A couple of people on here helped me to figure all this out

Neasy

I was working for a pan-governmental Euro-thingy (late 80s & early 90s) and feeling very smug about not having to pay the equivalent of NI contributions (the arrogance of youth!) I assume that as I didn't pay either Dutch NI or UK NI and it's far too late now there's nothing to be done.

Luckily I'd gone to a seminar on finance when I was at University where the speaker had impressed upon us the importance of paying NI contributions to cover our student years, which I duly did as soon as I began earning so I'm only missing a few years. Most of the time I was at home with the kids I was running (trying to run) a business from home & paying voluntary class whatsit contributions.

Thanks a million again for everyone's advice & help.

Neasy xx