Retirement planning when you're 50s, not a home-owner and don't have a decent pension pot/savings

in_spired2

I am late 50s, social housing renter, relatively low savings (15k various bank accounts, which any unexpected vet bills would need to be paid out of too, and 2k in a brand new Vanguard lifethingie S&S)  I was on income support for many years as single parent (also spent some of those parenting at home years doing part time and full time degree) and started full time employment late 2008 2010.  I also worked before having kids but saved nothing at that time because back then... I knew no better.  

Health permitting I'm expecting to have to work until I'm at least 70 to accrue more savings and slightly higher state pension.  (yeah yeah, I know.... if i could go back in time and all that) Current salary around £27k - has crept up around 1k a year following a few changed jobs and moving up pay bands.  Rent accounts for about a third of my pay.  No debts, no car, no luxurious expenses like latest phones or sky sports etc.  I don't eat out/take away. For the last couple of years I've been trying to save around £400 a month, which is what I've usually got left over after bills are paid (and it's being well and truly eaten up by inflation).  I've been studying for an accounting qualification for the past few years (just months away from finishing), but this would be a career change and with it will come a lower salary - so it's now a backup thing rather than a plan for a career change, sadly.

Most of the advice & information I see regarding retirement assumes you are mortgage-free (and not renting) and have a nice large pension pot all ready to give you a very comfortable life.

Sometimes I think I should just cancel my work pension, stop the saving, enjoy life now and rely on state pension and housing/ct benefits when the time comes but that little doubt nags ... what if that (social security/benefits) all changes for the worse in the future...., so I continue to save.. I just don't really know what I'm saving for anymore... at first it was a mortgage deposit, but it's clear I'll never be able to get on the housing ladder - houses are too expensive here and I have to use my money for rent and not a mortgage deposit... ho hum.

anyway, after that tldr wall of text:.... Are there any sites that give advice to people like me?  google and youtube only seem to give me hit after hit for people that are the aforementioned home owners with pension savings, or are in their 20s and have plenty of time to become those people.

Terron

Are you in your employer's pension scheme?

Cheese1990

1 question I would ask is do you have right to buy and how much of a discount are you entitled too? If you can reasonably afford too I'd look at buying your current property. Most lenders will give a mortgage till 80ish nowadays so if you can afford it a 15/20 year mortgage may be an idea overpaying what you can plus maintain current pension payments/ ensure you get full state pension

Bimbly

If you have been claiming benefits, including child benefit, you will have been accruing national insurance credits. It's worth checking your forecast because you might not need to work until 70 to get a full state pension: https://www.gov.uk/check-state-pension

Money Helper (formally pensionwise) can help explain pensions and your options, but won't give you advice on what to do. As well as info on their website, but you can also book an appointment. It's a government service and free:  https://www.moneyhelper.org.uk/en

Kim1965

Do you have any previous works pensions at all? 

the_mixer

I can't help but am following your thread with interest. I'm mid 40s, council house tenant, similar in savings and no pension whatsoever bar the odd tiny amount scattered somewhere from my 20s. Haven't worked for a decade due to ill health, but want to try and get employment again and move from there. I know what you mean about most on this forum assuming a position of mortgage paid/decent pension pot, or aimed at those starting out in life.

Kim1965

The problem as i see it, the pension required to cover rent aswell as living expenses, means you need a huge pot.  Rent must be £550 plus per month, a huge chunk of a full state pension. 
The benefit system as it stands now would pay pension credit, housing benefit, council tax rebate.
If i found myself in my late 50s, no pension, renting and not a big earner. I would accept that any provision for retirement would probably reduce benefits. 
 The big concern is that the benefit system could change dramatically. Good luck

xylophone

I am late 50s, social housing renter, 

At least this gives you security of tenure.

You mention that you are in your employer's pension scheme which is a help with retirement provision.

What exactly does your state pension forecast say?

https://www.gov.uk/check-state-pension

in_spired2

Thanks for your replies folks:

Terron - yes - Literally just started this year I am on approx 10% my contribution and 20% my employer. which I know is really good, but seeing my take home pay take a hit, after a promotion and moving up to a higher pay scale was a shock and nearly made me switch back to the other scheme - which was the more usual 3-5% me, 5-10%? employer and I think in 2021 my account value was around £9-10k -  i'm not sure as I honestly didn't understand what all the different figures meant.  I have no idea what the current or projected yearly income on retirement is.

Cheese 1990.  No, no right to buy sadly.  I was hoping the new scheme a few years ago would give me the right to acquire, but I think it fizzled out (it piloted in a few areas, but no one could afford their properties anyway iirc)  a 25% share in a new build here (which aren't that much more expensive than non-new builds) still leaves me looking at £100k mortgage and nearly £1000 additionally a month in rent and charges.  I could move to a cheaper area after retiring, but with ageing family nearby and job tied locally, it's not an option at the moment.  Even properties in cheaper local towns are now out of reach despite being well below  average 10 years ago (when I had no savings and less income - yes, very frustrating lol) I'd not considered a longer term mortgage, so maybe speaking to my building society about that would be a good idea - I've always projected it as being "until i retire".

Bimbly - yes, I would think my NI is ok - i was thinking of working longer to defer the state pension to increase it and to gain more income & savings in those 3 years rather than thinking i have an incomplete NI record.

Kim - yes I have one, from my previous employer - I checked recently and it's currently around £900 a year.  Nothing from those teenage years jobs of course.  And yes, that's the problem - if i'm saving to support myself (which is what we all should aspire to do if we can), then I lose the potential benefits I could get if I instead spend most of my money now while I'm still in guaranteed good health to enjoy it.  If I spend it now, i could encounter massive benefit changes and spend up to 30 years in absolute poverty. You are spot on with my rent, and I wont be surprised to see it around £560-570 in the forthcoming rent increase letter in a couple of weeks. (and no free weeks rent with my tenancy)  A lot of new social housing tenancies are much higher - intermediate - between "council rent" and "private rents" so I know I'm very lucky.

the_mixer - good luck and I'd say start now, however little you can do - one of the youtube videos I watched explained the value of compound interest - how MUCH of a difference it makes the earlier you start

xylophone - I've not had a state pension forecast, I've just assumed I would get the (currently) £179 a week.  Maybe I should get a forecast though in case I'm going to get less.

L9XSS

Hi, some very good advice posted here. All I can really add or agree with is the following:
Your employer pension scheme contributions matched to yours are very good. This is a really valuable benefit. You don’t have debt and are living within your means and managing to save some money. Is there any opportunity for a small side hustle with your soon to be accountancy qualification? You have worked hard to attain this can it bring in some extra money? 
Finally. Keep going you are doing the right things!

carshells

Hello, once you’ve got your accountancy qualification do consider moving career into film and tv industry. There is a massive shortage in that area of accountants and assistants . There are regular courses running for people transferring from other areas and the wages are much higher then you currently earn . Companies generally auto enrole into pension system so that would be lower then you are currently looking at but you could top that up to a higher level. There are opportunities for work all over the UK btw.