A new start

ex-pat_scot

Frankly you need a root and branch review of your life and financial choices.
Sorry if this sounds harsh, but the basics are as follows:

1. you need to understand the root cause of your past financial behaviours. Bankrupt twice - how do you maximise the chances of this not happening for a third time? You're getting too old to be able to recover from this if it happens again.

2. moving forward financially.
You need a plan. A budget. Short and long term.
Income.
Costs.
Life events (you might not have enough years of earning ahead of you, if you are thinking of buying a house).

Children. If you are earning £50,000 pa then you need to factor in the costs of uni "contribution" to their living costs. For us it's £5,000 ish per child per year.

Saving for the future. Pensions is part of this.
Frankly the old maxim of "half your age when you start pension contribution, as a % of your salary" is not a bad place to start.
This means building up £12,500 pa contributions from you & employer. £2,500 perhaps from employer and £10,000 from you.
That's roughly £500 per month after tax that you will now forego. That will hurt, even on a salary of £50,000.
Sadly the alternative will hurt much more, when you get to 68 and find that either you can no longer work, or want to (but cant find a job) or wish to slow / stop. £8,500 basic state pension is a pretty miserable amount to fall back on.

The benefits of saving now? Preserving child benefit. Reducing your salary, which will reduce the amount you are expected to contribute to university living costs. If you went bankrupt again, then accrued pension funds are ringfenced from your creditors. You can potentially access pension funds from age 55.

There's no nice easy smiley happy solution, I'm afraid. There's hard graft ahead of you.
You've walked away from financial obligations twice in the past.
You really need to sort yourself out (and posting here is a great first step) financially. "Poor budgeting and overspending" suggests a real lack of grown up approach to money and responsibilities.
Budgeting, a sensible spending plan, savings plan, and keeping to them like your life depends on them. All key.


Other considerations. Life and critical illness cover.
Maximise every offer from your employer, whether pension or other.
While you are at it, have a grown up conversation with your children about finance. Make a will. Sort out Lasting Power of Attorney.
Set a good example for your children financially now- this is a critical point in them getting their own "finance blueprint" and hopefully they will soon see how your positive efforts are working out to your advantage.