Career change at (nearly) 40?

[Keith 66]

When i started out on my own i paid into a private pension for a while. Things got tight & often it was a matter of paying the rent & the accountant ect before anything else so the pension got shelved. In the end it turned out to be one of the worst performing pensions out there. I cashed it in a few years ago & got less than a sixth of what i paid in back.
To be honest i would have got a better return buying tins of beer, having the pleasure of drinking it then running the tins in as scrap.
For many on low incomes on minimum wage or zero hours contracts a pension is simply a luxury they cannot afford.
As far as the state pension goes I had a shortfall in contributions in the 90's & 20's but find that i cant top up my Ni contributions that far back due to the 6 year rule.
My son is paying into a good company scheme at the age of 25 so should do ok!

 

[The Artilleryman]

There are very few companies who offer a defined benefit (more commonly known as a final salary) pension.

I was in the LT pension till privatisation, the new company had by law to offer an equivalent pension, so only slightly worse off.
That pension has now been closed (but with 97% funding we should be safe), had been closed to new entrants over 10 years ago, now closed as in no more contributions.

Most are offering the government backed scheme, or a defined contribution scheme ( where you are paying all the costs out of your contributions, where as DB schemes the costs are met by the employer).

Never thought about pensions at all when younger, but LT on 1st day of training had you sign up to the pension scheme - although you did not actually start until you had completed 12 months service.

I expected to finish work Feb 2023 (40 years continuous service) several months after reaching SPA.

Health failed me and I retired at 60. Very glad I had those pensions to live on.

Pure luck, to be in a DB pension.

Where does leave all those just starting work? unable to afford a mortgage and stuck in overpriced rental accommodation ?

 

[addjunkie]

One word of advice: pensions.

Something I studiously ignored for many, many years, believing that the somewhat wild younger years, bike racing, messing with illegal substances etc, that I’d never actually arrive at the day I’d need a pension.

It was only when I started working offshore that several old sailors discussed pensions all the time, as they had basically done nothing about them for their whole working life offshore.

I won’t qualify for more than £65 a week of state pension, as I’ve only made 14 years of contributions.

However, the last 12 years the oil patch mob I worked for was part of a big multicorporate we had a very good pension scheme available, and for once I used common sense and paid in every cent I could. I got laid off at 55 and took early retirement at 56. I’m not exact loaded, but fairly comfortable and don’t need to work.

Wise words….look at my signature.
I got a letter the other day,Ican claim my Merchant Navy pension at 61 with out reduction, Im 60 in March. I cant wait for that whole great big 900 a year. But its better than nothing. I went foreign flag as all the shipping companies left the uk register, so no more MN pension. But I did pay voluntary contributions national insurance. Same as above didn't do much about pensions, thats old folk.
Then after leaving the sea and a couple of not so good jobs I was lucky enough to join an oil company defined benefits scheme, and enough years service to live comfortably. Before I left one of the young guys showed me the new deal….lets just say he best save some of his wages instead of investing them in fast cars, fast women etc.
Both my Mrs and I pay voluntary ni as we have our small business to get our years up for state pensions.

Do what you think will make you happy, but do prepare for old age as it would be a scary prospect with no money at all.

 

[Kayos]

So not quite the huge change I envisioned but I'm in the process of starting a new role

Cant say too much just yet but it's a much broader role than I'm in currently and more senior, all about reducing energy consumption and carbon

They have offered me a Tesla, but I am able to decline that for the time being. Thankfully