Is your retirement looming and you want to make sure you won’t have any financial worries once you stop working? Or, maybe you’re still quite a while away from retirement age and want to start planning now to ensure your money is in a healthy position when the time comes to hand in your final notice. Whatever your reasons for thinking about planning finances before retirement, we understand how big of a deal it can be.

This is especially true with the cost of living crisis weighing heavily on many people’s minds around the UK and data suggests that these financial woes will make it difficult for around 40% of Brits to save a single penny before the end of the year.

Current financial issues can put a halt to your retirement financial planning but it doesn’t have to if you give some of our handy tips below a try. Most can be applied to just about any wage, so give at least one a chance if you can give your finances a boost before you finally retire.

Read more – Can you still get a pension when you’re over 50?

Why is this important?

Retirement is all about spending your later years with family and friends, without worrying about running out of money. You’ll want to buy the things you desire and go on incredible holidays around the world whilst having a comfortable home and no mortgage to worry about. This means you will need a healthy set of finances and the following methods can help you get just that.

Go debt free

No one wants to be paying off debt once they’ve retired or be paying it from their final wages when the money could be better spent elsewhere. Pay off your debt as early as possible and you will save money as you won’t be paying interest every month.

Get the right life insurance policy

Life insurance can help you or your family if you get ill or sadly pass away. It’s important to get the right life insurance for you as it can be more tailored to your needs. For example, taking out over 50 life insurance if you’re old enough to do so will be able to support your family if anything happens to you later in life.

Manage your pensions

Your pension is a lifelong collection of money that should be easily accessible once you retire, so make sure you know how to get it. You may have a lot of pensions too and an easy way to manage them is to consolidate them into one pot.

Budgeting

If you want to maximise your finances before retirement, then you need to budget well throughout your life. Try to cut out unnecessary costs and cancel unused subscriptions or memberships, so you have more money left over to put into your savings.

Lana Hall

Lana can usually be found spinning her collection of records, or writing odd poems in her phone notes. Her mixer of choice is a ginger beer, and you’ll never find her away from the sea for more than a few weeks.

The post Planning your finances before retirement appeared first on Silver Magazine.

Retirement can seem like a dim and distant event, something you’re too busy being young and fun to worry about. Until one day you’re not quite so young, even if you’re still a hoot. And suddenly you might find yourself wondering if you can still get a pension if you’re over 50.

Perhaps circumstances have conspired against you, and you’re currently left facing a future with next to nothing to fund your golden years. Apart from the full state pension, which currently stands at a less-than-princely £203.85 per week.

To make it harder for many people, especially those who have worked abroad or moved to the UK later in their careers, a 2016 rule change means you need to have made 35 years of National Insurance contributions to receive the full amount. If you have a shortfall, extra voluntary contributions can bring you up to 35 years and, if you have not been working because of illness, disability or caring responsibilities, you can apply for pension credits.

Gloria and Chris’s stories

For 60-year-old Gloria, pensions had always been “something on a distant and uninteresting horizon, the assumption being that I would be dead before I needed it.” With just a small preserved pension from a short stint in the military, she says relying on the state pension “promises a significant change in lifestyle”, while prompting “an unusual interest in government threats to mess with the state pension triple lock.”

“My only saving grace is my two-bedroom cottage – selling it for the vastly inflated prices London houses attract might save my arse, but that will mean leaving city life behind,” says Gloria. “I like my urban lifestyle and culture. But it may have to be sacrificed to save me from living out my final days with the heating off, taking a weekly shower, and a daily value meal.”

…a pension had always been “something on a distant and uninteresting horizon, the assumption being that I would be dead before I needed it.”

Chris, 57, is worried about her retirement because of circumstances that have affected her ability to put aside a healthy pension pot. Such as getting divorced, sporadic maintenance payments from her ex-husband, and moving from the civil service to the private sector.

In the past five years, she has made some salary sacrifice contributions to top up her pot. But she remortgaged her house to help her children put down deposits on their own homes. “This was mainly because my eldest was living in an horrendous rental. So that has kiboshed me for another year or two.”

“I’m not sure I’ll be able to have a luxurious retirement, particularly as the stock market is dire,” she says. “The house is mostly sound, although I’m one of those with an ancient house that can’t be insulated.”

Read more: Might you have a pension you’ve forgotten about?

The good-ish news

There is good news for Gloria, Chris and the many others in similar situations though. According to independent financial advisor, Keren Bobker, “it is never too late to plan for your future. And being in your 50s is not that old, although time is no longer on your side.”

“It’s never too late to prepare for retirement. But exactly what that looks like might be a bit different when you’re 50+,” agrees financial coach, May Fairweather. “Much of the conventional advice assumes that you will have several decades for investments to build value, and that your income will go up over time. When you’ve got less time before you’ll need your retirement assets, you might need a slightly different approach.”

The reality is that you cannot pay in just £100 per month for 20 years, a total of £24,000, and expect to receive a large income in retirement

Keren has a reality check for people who are running out of working years before retirement: “The reality is that you cannot pay in just £100 per month for 20 years, a total of £24,000, and expect to receive a large income in retirement. You have to save and invest consistently, in decent amounts, in order to build up a good retirement fund.”

If the clock is starting to run down, Keren suggests a range of options. These include the good old cash savings account, where interest is payable. Rates on these accounts have risen in the past year or so. Tax-efficient ISAs are another alternative to pensions.

“ISAs are popular as they can be easily accessed, have no restrictions on how you draw from them and you can contribute small amounts. The annual limit is now £20,000 so it is possible to save significant amounts over time,” she explains. “Be aware, however, that ISA funds form part of your estate for inheritance tax purposes. Whereas a pension does not.”

What about private pensions?

Keren says it can be beneficial to put money into a pension plan now, depending on how long someone has until retirement, the amount of accessible cash to invest and their personal tax rate.

“Individuals can benefit from tax relief on their contributions at their highest rate of personal tax – within various limits,” Keren says. “Contribution levels have been restricted in recent years, but someone who pays tax at 40% could potentially receive 40% tax relief on pension contributions.”

For example, personal contributions are paid net of basic rate tax, so £80 is invested as £100. A higher rate taxpayer can claim back a further £20 on at least part of their contributions through their annual self-assessment return.

What else can I do?

Put simply, your options depend on your personal situation. Keren says if you have cash in the bank, there are “always be options for investment. Based on amounts, their family situation, life expectancy, appetite for risk.”

“Do avoid risky investments if you are not in a position to lose money – they are rarely worth the risk,” she warns. “The basic principle is that saving money matters. So look at your budget to see what you can do to help to help future you. Some smart money management is always a good idea. In some cases, for property owners, downsizing may be an option. Or maybe there are other lifestyle changes that can be made.”

Other benefits

As well as topping up National Insurance contributions to become eligible for the full state pension, May says you could be eligible for other benefits. So it is worth speaking to Citizens Advice or Age UK for a free entitlement check.

“If you’re helping out with childcare for the grandchildren, or you have done since 2011, check whether you could claim Specified Adult Childcare Credits,” says May. “This is an alternative to paying to fill National Insurance gaps. But make sure you talk to the children’s parents first as it could affect their own National Insurance record.”

“Think creatively about ways you can either cut costs or split them with others,” May recommends. “Living alone is more expensive. Some older people are choosing to live with friends to split costs – and that has mental health benefits too.”

To get a clear idea of exactly how retirement-ready you are, there are free online tools that can help too. For example, Pension Buddy has a Retirement Health Check that does the calculations for you.

Work out how you can best prepare for a retirement that will hopefully be comfortable. Not just that, but still have fun!

Georgia Lewis

In a career that has spanned Australia, the Middle East and the UK, Georgia has written about all sorts of things, including sex, cars, food, oil and gas, insurance, fashion, travel, workplace safety, health, religious affairs, glass and glazing… When she’s not writing words for fun and profit, she can usually be found with a glass of something French and red in her hand.

The post Can you still get a pension if you’re over 50? appeared first on Silver Magazine.

Are you aware where all your pension pots are? It’s astonishing how many forgotten pension pots are scattered around, overlooked or unclaimed.

We all know that having a pension is important. And you probably have one or two scattered about. Either with your employer or at a previous job, maybe you even have a private one set up.

Lost or forgotten pensions

It might surprise you to learn that there are an estimated 1.3 million lost or dormant pensions in the UK. Which seems crazy when you think about how important having access to your pension is for your future. But if you do think might be missing a pension, you’re certainly not alone.

The biggest reason for losing pensions tends to be moving jobs. As you are unlikely to take your pension with you, they can become forgotten about. If you don’t update the pension provider with your details like moving addresses, you won’t get updates on how your fund is doing.

Gretel, which helps people find lost pensions and investments, found there are around 1.3 million lost or dormant pensions. And they estimate that there’s around £50 billion in unclaimed funds kicking around. Madly, 87 per cent of consumers have never tried to track down a forgotten pension.

Where do you start looking though?

Finding a lost pension

If you suspect you might have a lost pension, or want to know for definite, it’s worth having a look. Pension tracing can be a time-consuming task. There are a few steps to it, and it’ll take some searching from you. But if you find your little treasure chest, it’ll be worth the effort.

Even if you find there isn’t a lost pension for you, it’s worth knowing for sure. That way you’ll never be left wondering if there’s something extra out there for you.

Steps to trace a pension:

• • You’ll want to start by making a list of all your previous jobs. Look at past CVs and P45s to ensure you don’t miss anything.
• Collect all your pension statements together. Cross check these with the list of jobs to see if there are any missing statements.
• If you do have gaps in any pension statements, then use the government’s handy pension tracing tool. This will give you the information for the current pension service provider for that employer.
• You’ll have to reach out and contact the service directly to find out if they hold a pension for you. Make sure you’ve got your national insurance number and other details of your employment to hand as they’ll want to confirm your identity. If they have a pension for you, great!

Tracing a pension is a lot of sifting through documents, and if you’ve switched jobs a few times, then the papers can stack up quite a bit. However, it is always possible to do it yourself. You’ll never have to pay someone to help you find a pension. Be aware that anyone offering a ‘loop-hole’ is likely to be untrustworthy.

Although, if you really don’t have the time to trace your pension, there are some legitimate services you can use. Just be sure to do you research before handing over any personal details. We recommend going about it yourself to remove any chance of being scammed.

Why are we happier over 50? Read more

If you’ve found a lost pension

First of all – WOO! Congrats on finding your own little pot of gold! Take a moment to bask in that feeling.

Finished basking? OK. What do you do with this knowledge now? Other than just knowing you have a bit more money towards you retirement (always a bonus). Make sure you have updated all your details with the pension provider, current address, phone number, etc.

A good tactic to ensure you never lose a pension again, is to consolidate them. With 71 per cent of those aged 45-54 never consolidating their pension pots, according to Wealthily, it’s something to consider.

Pros of consolidating is you’ll have fewer pots to manage. It can also provide better investment opportunities, and reduce fees. Although, you may loose out of benefits from current providers, like enhanced tax free cash sums. Sometimes there are large exit fees if you move a pension. So, it’s always worth doing your research and weighing up the pros and cons before making this kind of financial decision.

Now, we’ve given you all this information – go out there into the world you little pension tracing experts and find your pots of gold.

Lana Hall

Lana can usually be found spinning her collection of records, or writing odd poems in her phone notes. Her mixer of choice is a ginger beer, and you’ll never find her away from the sea for more than a few weeks.

The post Could you have ‘buried treasure’? How to find old pensions you’ve forgotten about appeared first on Silver Magazine.

Having paid into a system in good faith for years, as the end was in sight, the finishing post has been moved, with many women losing up to seven years of pension.

For many women – and families – this has been catastrophic. They’ve planned and budgeted for their retirement in good faith, trusting the country and economy they’ve contributed towards to support them when they need it most, and for some of them the loss of those years of pension payments equates to tens of thousands of pounds lost. It’s brought hardship, poverty and misery to millions.

…this would only be appropriate if things were ACTUALLY equal. If the pensionable age is going to be the same, let’s see an end to gender pay gaps. Let’s remove those glass ceilings

The reasoning behind the move (apart from the obvious ‘ker-ching’) is threaded around the need for equality – to bring women’s retirement into line with men’s. And of course I’m all for equality. But this would only be appropriate if things were ACTUALLY equal. If the pensionable age is going to be the same, let’s see an end to gender pay gaps. Let’s remove those glass ceilings. Let’s give women the same privileges and entitlements that men enjoy.

It’s tough for women!

As a woman in business I’ve had to fight tooth and nail for what I have. I’ve brought my daughter up as a single parent with next to no financial support from her father, who’s been happy to see Tax Credits and Child Benefit do his bit. I’ve built up three successful businesses and it’s been SO MUCH harder because I’m a woman.

I’ve not been part of the ‘boys’ club’ although I have to say, things are changing, finally. I even got invited to be part of a charity golf tournament the other day! But I’ve lost count of the times I’ve made meetings happen, for example, simply because my target thought I was a male Sam. Always enjoyed their faces when I’ve turned up.

But I digress, if only to express my solidarity. You want equality? Then do it properly. I’m 49 and hadn’t really thought much about my pension or retirement until recently, but I am at least prepared now for the extra slog. For many of the women a bit older than me though, it’s been devastating, and I feel righteously furious on their behalf. Their voices need to be heard. Here are some of their stories.

At the foot of this piece is more information about the judicial hearing and campaigning.

Jackie Lee

Can I tell you my story? I was born in 1957 – we are called ‘Baby Boomers’ which is an insult to our parents I think. We do not decide when we are born but 1950s women have worked all their lives for the UK to thrive.

I was born into a family of six children and being the eldest was a second ‘mum’ to all my siblings. I had a happy childhood, even though I had to take care of my brothers and sister, and had a Saturday job from 13 years old, as well as going to school.

When I left school on the Friday in July 1972 I started work the following Monday. I earned very little and had to pass the majority of it over to help the family. I would have loved to have gone to university, or even sixth form, but I was never allowed.

Even when they were small I found work in supermarkets, cleaning wherever was needed, any job I could do even if it was menial; I even worked when my husband had finished his work for the day

I left home and got married in October 1976 – I signed the NI1/CF9 form, which was the form to sign if you were paying full National Insurance contributions and wanted a pension in your own right at 60. I carried on with my life working, looking after my home and husband, bringing up and nurturing three children.

Even when they were small I found work in supermarkets, cleaning wherever was needed, any job I could do even if it was menial; I even worked when my husband had finished his work for the day. So not only was I looking after young children, keeping my house in order and making sure my husband had a good meal when he came home, I then went out to work after doing all that.

It was what we did, so I did it. When my children started full time education I could work for slightly longer, although at that time we did not have maternity leave and free nursery places.

I gradually increased my working time as my children grew and then was back working full time. Always paying my full NI contributions. I had a life, but always in my mind I was retiring at 60. In 2015 I was made redundant, but I had no worries as myself and my husband had a little savings and he was still working, so we could afford it with no problem. I then sent off for my State Pension forecast from DWP.

You could have knocked me over with a feather when the forecast was that instead of me retiring in 2017 – I was now retiring in 2023. I could not believe that I now have a retirement age of 66, after all those years of doing ‘what is right’, not being a burden on the state, paying for everything myself and working my whole life.

I am now 61 going on 62. I have not been able to find another job, even though I have sent many applications off, even for Apprenticeships. Our MP from the Department of Work and Pensions Guy Opperman stated that we of the age over 60 should apply: I have and I can imagine what the conversation is when they are read by the company who want a young 16/17/18 year old to train, and not a 60+ woman.

State Pension is not a benefit; we have paid into it all our working life and we would like some justice

So now I have no income and my husband is obliged to look after me (as per DWP). We hardly see each other as he has to take on more work to earn more for us to live a day at a time. Our savings have gone, our bills are going ever higher and we do not have any spare money for any of the things we had planned to do in our retirement. My husband will have to stay at work for an extra three years to be able for us to live. Our government calls this equality!

We are pensioners living hand to mouth – we are living in poverty and our human rights have most definitely been abused. State Pension is not a benefit; we have paid into it all our working life and we would like some justice regarding the £45K each and every one of the 3.8 million 60+ year olds will have lost.

Paula Howard

The biggest pension swindle of all is being carried out by the British government. I paid into my pension for 44 years and when I claimed age 60 they said that they had changed the payment date and I would not get it until I am 66. I had never been informed of this change and they have since said they put an advert in the Times, a paper I have never read. They did not deem it necessary to inform me or any of the other ladies affected.

Pat MacDonald

Us 50s women have been robbed. I have lost £42,000. I have had to downsize my family home regrettably. Suffered depression after this. Now three years later I’m starting to enjoy my home. I will have to wait till March 2020 to get my pension. I have paid 42 years National Insurance, yet won’t get full pension, as I once receive a small pension that I thought was a perk of the job. How silly of me. This was never explained.

Hilary Johnson

…we are on a very strict budget just so we can eat well in the winter and keep warm. Had to cut down on lots of things. We miss our cheese selections and meals out

I’m 61 and I’m not working at present because I’m looking after my disabled husband. I’ve worked ever since I left school. Had a hard time at work, the usual aches and pains. Went off work sick and then resigned due to the way I was treated – younger staff preferred. My hubby gets £3.74 a week for me. I no longer shop at Marks and Spencer’s or use my local shops, as we are on a very strict budget just so we can eat well in the winter and keep warm. Had to cut down on lots of things. We miss our cheese selections and meals out. If I had my pension that money would be put back into local businesses. We would be able to enjoy the simplest of things again.

Carol McGill

I believe myself and many other women have been scammed out of our state pensions. I started full-time work in 1972 at the age of just 15. In a low paid and menial job without the qualifications to do any better I paid into the NI with the understanding that I would get my state pension at 60. I now gave to work until I’m 66. I’m lucky in that I’ve managed to get work with the NHS, but only on a contract, and still low pay. I’ve had a terrible education and spent much of my life educating myself and have ended up with an MA. I’m bitter and angry about the betrayal of my country towards us women, some of whom are really struggling financially.

Tina Reed

Please support the women who have been duped and expected their pension at 60!! I was born in July 1955, I have worked all my life even between treatments for cancer to make sure mortgage was paid. I had to leave work due to further poor health recently and now we have to sell our home to survive. There is no justice… I feel well and truly ‘ripped off’. There are many others in dire straits due to having no notice given to us; stressed, anxious and with nothing left. It was not just 18 months added to our age, in most cases it was six years, and mine is such a case.

Carol Hayes

I am a 1950s born woman who will not receive her pension until 2021. I started full time work at 16 and paid National Insurance with the knowledge I would retire at 60. I have worked most of my life apart from when my children were small as I took a little time to care for them and went back to work as soon as I could.

My husband is unskilled, however he could earn more than I could so I only worked low pay part time to look after the children. We struggled all our lives, bought our own house with interest rates at 16% and an endowment which spectacularly failed.

It mostly affects low paid women working part time. We made sacrifices as a family to do the right thing and now I have to work an extra six years

Both of our children went to university and we supported them the best that we could. When my son was old enough I increased my hours to full time and joined the pension scheme. Unfortunately as this is NHS I was contracted out which means I get a lower pension eventually. This was never explained to me. Apparently the loss was supposed to be made up by our work pension but recent investigations show us to be worse off. Due to fybromyalgia and arthritis I had to reduce my hours in work and I now work four days, so less workplace pension too.

Women have been unfairly treated all our lives; only those with a high level of education and good jobs don’t feel the effect of these pension changes. It mostly affects low paid women working part time. We made sacrifices as a family to do the right thing and now I have to work an extra six years to get my pension, and no matter how hard or long I work I will never be able to replace the £48,000 I have had taken away by these changes.

We are now selling our house and are going to live with our daughter to fund our retirement as I will be leaving work at 64 years of age. I am so tired and worn out. I am lucky to have this option; some don’t and have been left destitute. This is a national scandal and government ignore it as it was never about equality, it was about money.

CAN THIS BE CHANGED?

There are a number of fierce campaigns to fight this change, including the notable WASPI women (Women Against State Pension Inequality), and the BackTo60 movement, backed by Michael Mansfield QC. But it’s more complicated than it at first looks, and most of the coverage you read will delve into the details surrounding the implementation of the age rise and how it was effected unfairly.

But its roots go far further back. In 1986, it was Margaret Thatcher’s government that ended the Treasury contribution to the National Insurance Fund that has now deprived 3.9 million women born in the 1950s of their pensions for up to six years. Ironically she could now be their saviour.

She ratified the United Nations Convention on the Elimination of All Forms of Discrimination 1979 (CEDAW) and it’s this decision that commits the United Kingdom to outlawing not only any discrimination against women who are unfairly treated, but demands reparations for the people who lost those rights. And it also provides a mechanism to deliver the money to 50s women without facing a legal challenge from any other group – whether it be the pensions industry or anyone else.

So although there will be challenges and questions to face surrounding the appalling mishandling of information and notice, the #BackTo60 group are going in hard with the CEDAW angle. And whilst there is a great deal to understand about CEDAW and the implications, in a nutshell, with the backing of politicians, something called a ‘Temporary Special Measure’ could be effected, based on a claim of inequality, that could work positively in the women’s favour.

The campaigns argue that the notice given to women born in the 1950s and early 60s was implemented unfairly, with little or no warning. And that the changes have been implemented too quickly, leaving women and families with no time to prepare, leading to shattering consequences. This discrimination could give them the leverage they need.

UPDATE SEPTEMBER 2020

Following the original publication of this article in June 2019.

The judicial review was held in June 2019, and in October 2019 the High Court rejected the claim that the legislation breached the European Convention on Human Rights, amongst other issues, including that there was no direct discrimination on grounds of sex, another argument brought by the campaign.

BackTo60 Ruling September 2020

The Backto60 campaign raised money publicly to bring an appeal and this was heard in July 2020. The appeal judgment, published on 15 September 2020, by Master of the Rolls Sir Terence Etherton, Lord Justice Underhill, and Lady Justice Rose unanimously dismissed the claim.

It was ruled that introducing the same state pension age for men and women did not amount to unlawful discrimination under EU or any human rights laws.

The justices said, “Despite the sympathy that we, like the members of the Divisional Court (High Court), feel for the appellants and other women in their position, we are satisfied that this is not a case where the court can interfere with the decisions taken through the Parliamentary process.”

The WASPI campaign is separate to this, and has approached the case in a different way.

For more information about WASPI click here
For more information about BackTo60 click here

Sam Harrington-Lowe

Sam is Silver’s founder and editor-in-chief. She’s largely responsible for organising all the things, but still finds time to do the odd bit of writing. Not enough though. Send help.

The post 1950s women cheated of their pensions – BackTo60 outcome appeared first on Silver Magazine.