When speaking to my father in law one day, he asked the question that I always dread, do you have a pension? the simple and somewhat embarrassingly mumbled reply to his question was, no.
I’m quickly heading towards my 40s and by now should have at least put something into a pension pot or at least that is what we are told be those fast reaching retirement age.
As I write this post the government’s own retirement calculator states that I’ll be 68 years old before I qualify for the state pension or in other words 2047 and that is of course assuming that the state pension will exist.
I can’t be the only one
In my day job I work with a number of people of various ages that don’t contribute to a pension citing their reason being that there is too much that they want to do in life before they even contemplate putting into a pension pot, whether it be move to a bigger house, go on numerous holidays throughout the year or just enjoy their life as they could be dead tomorrow.
I can’t criticise this as I was exactly the same when I was younger and tomorrow was always a long way away, how wrong I was, it’s astonishing how quickly time flies.
So what’s the plan?
I’m one of the fortunate few to own a property and our mortgage will be paid off before retirement so if all else fails my wife and I will have to consider downsizing to release some equity in the property, though what do we leave our children when we eventually do pass onto the other side.
I’ve always been a good saver so I’ve plenty of years ahead of me to put into high interest savings accounts, I’m sure they still exist, though I could be wrong. The trouble is no one ever gets rich putting all of their savings in a bank account, so I might have to look at my risk aversion and think about long-term investments in stocks and shares.
ISAs are another way that I have thought about to help saving for my later years, bearing in mind that I am not charged tax on the interest earned, compound interest working at it’s best.
So is it too late?
I bloody well hope not! but you never know what the future holds barring a lottery win I don’t see me being able to save anymore than I already am so I’ll certainly be making enquiries with my current employer in 2017 about the workplace pension, though I do have certain financial New Year’s resolutions which might include moving on from where I am to find a job that pays me what I think that I’m worth.