Caroline Romero admits that for the majority of her life, pension planning was not a priority. Back in the 1980s, she and her late husband embarked on their entrepreneurial journey by opening a restaurant, a venture that they sustained for over two decades. The road was rocky, as they weathered multiple recessions in the UK. Caroline reflects on how she neglected to set aside any funds for her retirement, believing instead that she would inherit a house and eventually retire to Spain with her husband.
However, in 2012, tragedy struck when her husband passed away. Suddenly, at the age of 54, Caroline found her retirement dreams shattered as she struggled to manage the mortgage on the home she shared with her four foster children.
Reflections on Retirement Planning
With a considerable amount of regret for not having invested in a pension during her younger years, she feels that the guidance available at that time was far from adequate. “I don’t think truthfully in the 1980s the government provided the right direction. I was young, juggling a family and a business, so the idea of planning for my pension didn’t cross my mind,” she shares.
Now aged 66, Caroline receives the state pension, which she describes as a meager amount, and continues to work full-time managing her consultancy, Grey Matters Consultancy. This business was established to offer the guidance that Caroline believes she lacked after her husband’s passing, providing support on issues such as benefits, downsizing, and will-writing for older individuals.
With no personal retirement savings beyond the £1,000 monthly state pension, she acknowledges that retirement is not in her immediate future. “If I retired, I would have to sell my house and likely downsize to a one-bedroom flat,” she explains. Living in a pleasant neighborhood in Berkshire, Caroline states, “I enjoy my comfortable home and I am not willing to sacrifice what I have worked tirelessly to achieve.”
Caroline’s story is not unique; many individuals nearing retirement age share similar regrets about inadequate savings.
Playing Catch-Up on Savings
Monica Kranner, a 55-year-old nutritionist, echoes these sentiments. She admits that during her 20s and 30s, she did not prioritize saving for retirement and is now working to catch up. Originally from Austria and currently residing in London, Monica confesses that she never properly confronted the issue of retirement savings during her early career. Her lack of urgency stemmed in part from not having children, which led her to believe it was not a pressing concern.
However, everything changed when she became a mother at the age of 54. “I experienced a bit of a panic because I realized I hadn’t saved enough,” she admits. “What I truly regret is not paying attention to the advice of financial experts when I was younger. Nowadays, with the internet, there is an abundance of information available.”
Monica’s plans took a hit when one of her businesses, which she had intended to sell as part of her retirement strategy, collapsed during the Covid pandemic. She had invested everything into her ventures, which left little room for pension contributions. Now, she is slowly starting to save small amounts into her pension, but acknowledges that it still does not amount to a significant sum. To supplement her income, she is writing books and focusing on her business, MKNutrition & Mindset Coach Ltd.
Freelance Challenges in Saving
Similarly, 51-year-old Drew Emery from Leeds didn’t begin contributing to his pension until around the age of 26 or 27. After working as a freelance writer for the past 20 years, he has struggled to determine if he is saving adequately each month, especially without an employer to match his contributions. He now believes it is unlikely that he will retire before the age of 70.
“I think I realized in my mid to late 30s that I wasn’t saving enough. I had a stable job for several years that contributed to my pension, giving me a solid foundation, but once I transitioned to freelance work, my savings stalled and eventually ceased growing altogether,” Drew explains.
After consulting with a financial adviser, he received concerning news about his retirement plans. Recently, Drew supported the Get Britain Pension Ready campaign, which aims to help individuals understand their financial options for retirement. He acknowledges that the state pension will be a crucial component of his retirement strategy, while he now maintains a £100 standing order each month towards his pension, striving to contribute more whenever possible.
