Can't afford a pension

Kynthia

RickyB2000 wrote: »

I think they mean that you are being judgemental of those who choose to go back to work for £12000 a year extra. It didn't really come across like that but maybe they themselves made this choice and felt like you were having an indirect go.

Probably as they weren't being judgemental of the OP by agreeing it was a valid choice. People should be secure enough in their own choices to not take offense at a comment aimed at someone else entirely.

OP when it comes to major life decisions then we often look at more than just the financial element, so if you want to work part time for now and can afford it then great. It's good you have that choice. However I agree with everyone that you can't afford not to join your pension scheme, particularly a DB scheme which is up there with the best. Have you thought about how you and your partner are going to afford retirement, what your likely state pensions will be and when youll get them, and what pensions you've built so far? You are robbing your future self and if there's anything you can do you should do it. Are you on good utilities deals, could you reduce your phone or tv packages, are you overpaying any debt that you could stop doing for a year, or reduce your food bills, etc?

If you genuinely have to wait a year until your car costs reduce and your student loans end then would you consider buying added years, or the equivalent for your scheme, once you rejoin? You could pay a little extra each month for years to help replace the years you have missed. The younger you do this the cheaper it usually is so it's recommended to do it sooner than later.

hyubh

Kynthia wrote: »

If you genuinely have to wait a year until your car costs reduce and your student loans end then would you consider buying added years, or the equivalent for your scheme, once you rejoin? You could pay a little extra each month for years to help replace the years you have missed. The younger you do this the cheaper it usually is so it's recommended to do it sooner than later.

Buying additional pension will however be more expensive than ordinary scheme pension because there will be no employer contribution (the TPS employer rate is currently 16.4%).

singhini

I don't believe in pensions as I don't think im going to live to the age of 67 (my mum died aged 66, dad died at 67 and my sister died aged 45).


However even I pay into a pension because my employer pays into it aswell (which I view as free money along with the tax relief on my contribution)


I'm with most of the other people on this - OP you need seriously ask yourself can you afford not to be in the pension

atush

have you had genetics tests? Brac genes etc? Why do you think you will die young?

My dad had a brain aneurysm in his late 50's and my mom died at 69. But they both smoked heavily all their lives. I dont, so expect to live longer?

Dont confuse low LE due to Lifestyle or environmental factors with genetic pre disposition.

AnotherJoe

singhini wrote: »

I don't believe in pensions as I don't think im going to live to the age of 67 (my mum died aged 66, dad died at 67 and my sister died aged 45).


However even I pay into a pension because my employer pays into it as well (which I view as free money along with the tax relief on my contribution)

That makes no sense whatsoever. Why is it free money if you dont think you'll collect on it?
Or if you do plan to collect on it at age (say) 55, what relevance is the age of 67?

zagubov

OP, I'd get back into the TP scheme ASAP. Ten years ago I gave myself a springclean using info from this site (switched credit cards, mortgages and insurances, utilities etc.). Got our outgoings down to the minimum possible. I'm seriously overpaying my pension now as I cashed in my work pension after extremely bad advice. Didn't get back into FT pensionable employment for another six years.

Can you take a hit on the car loan? Are you required to pay off the student loan right now? I'd recommend you to do what it takes to get paying pension again.

singhini

AnotherJoe wrote: »

That makes no sense whatsoever. Why is it free money if you dont think you'll collect on it?
Or if you do plan to collect on it at age (say) 55, what relevance is the age of 67?

I might not collect on it but someone else will as the pension will pay out to somebody


The bit about 55 is correct, I do have the option to take it early


with regards to the other post enquiring about genetic testing - im an alcoholic and at some point (knowdoubt) it will influence by death (when I think of a "brew" in the morning, I not thinking of a cup of tea)

louisaloves

I can only echo what has been said, contributing to this now will make your life a lot easier later so you need to re-visit your finances and make it happen somehow

atush

singhini wrote: »

I might not collect on it but someone else will as the pension will pay out to somebody


The bit about 55 is correct, I do have the option to take it early


with regards to the other post enquiring about genetic testing - im an alcoholic and at some point (knowdoubt) it will influence by death (when I think of a "brew" in the morning, I not thinking of a cup of tea)

Then yes, if you are still drinking your LE is short. So find a meeting, get a prescription etc. Work on it, and good luck. If you have stopped, congrats. And eventually your liver will mostly recover.

Otherwise, make sure your expressions of wishes is up to date with who you want to get your pension?

racing_blue

New car? Noooooo! In 30 years time you will barely even remember what you drove in 2016

The figures given in this thread suggest that the 16% employer contribution will be at least £5k per year. That's a free money tree. It's Spring time now, and the sapling needs nuturing. But come the Autumn the mature tree will shower you with money blossom for the rest of your life.

To the garage with you!