What you get from your state pension
It might seem a million miles away. But you need to be aware of what you will get from your state pension.
According to Which, the new state pension is worth £175.20 a week (or £9,110.40 a year).
The rules (as you would expect) are complicated. What you are entitled to depends on your National Insurance contributions and other factors. For more information on your state pension see below:
The majority of the people I have met, don’t really have a financial plan in-place. They are all about living for today. Which I totally get. But you need to find some balance.
Living month to month is risky. Relying on 1 source of income is risky. Trust me I know.
I have had long periods out of work. Spent my savings and then went £15,000 into my overdraft. And this was only April 2019. It brings stress and anxiety.
But YOLO (you only live once). When someone tries to talk to you about pensions, please don’t make statements like YOLO.
You might be on good money now and think I will worry about my pension later. You are doing yourself no favours at all with this mindset.
Look at me and learn from my mistakes. Around 4 years ago, I had no plan and was terrible at personal finance.
I had 3 rentals with a total negative equity of approx. £50,000. Not only that, I didn’t have any pension. To be honest, I didn’t even know what a SIPP (self-invested personal pension) was.
What I was focusing on was the money I was earning at the time. I was spending what I was earning and had no financial plan in-place. I was heading for a lot of pain!
Imagine the regret in your late 50s. You look back and think you could and should have invested years ago:
You have got to your late 50s and have earned decent money. You have become accustomed to a certain lifestyle. Trips to London, nights out with friends and regular holidays in the sun.
The problem is that you have no pension. You are looking at that state pension of £175.20 per week and are worried.
This might lead to chasing money abroad to build your pension pot. 8 weeks on 2 weeks off for example. The last thing you want to be doing is spending time away from your family in your late 50s.
Imagine the pain in your late 60s. You have nothing apart from your state pension. With the cost of living, you are officially poor.
Not only that, you are past your best and can’t get any work. Please don’t do this to your older self.
Have a good look at that state pension. Make sure it’s not your only source of income in your late 60s.
Live for today and plan for tomorrow. Like anything in life, it’s all about balance.
What I want you to know is that I care about you and your financial future. What really matters is that you care!
I have written a book to raise financial awareness. The book Learn the hard way, teach the easy way, is almost complete. Once I am ready to upload it onto Amazon/Kindle, I will let you know how you can get your free copy.
My book will help you avoid the state pension.