Reflections on Finances and Future
Let’s take a moment to journey back to the early 2000s. I found myself in an office as a market research executive, engaging in a one-on-one meeting with a pensions advisor. At that point, I was enjoying a commendable salary, most of which sadly went towards my vices: cigarettes and alcohol. Yes, Liam Gallagher was my idol back then.
“Even though you’re just 27, it’s essential to start putting money aside for your pension,” he advised, drawing intricate diagrams filled with numbers and arrows illustrating how much I should contribute for a “comfortable retirement.”
Financial concepts have never been my strong suit, and as soon as discussions turn to numbers, my mind goes blank. My priorities revolved around rent and bills, leaving little room for pension contributions—perhaps you’re thinking I should have cut back on smoking and drinking, and you wouldn’t be wrong.
“I’ll consider putting in some money next year,” I replied, stifling a yawn.
He sighed, knowing the truth: I never did add any extra funds. Now, in my early fifties, I often wish I had paid more attention during those lengthy pension discussions. Over the years, I’ve held high-paying jobs, freelanced, conducted market research surveys outside supermarkets, penned books, and navigated through less lucrative roles—all while raising two children. I’m fortunate to have a pension plan my employer funded, but it’s starkly clear that it won’t provide the retirement lifestyle that’s often showcased in the glossy pages of Sunday supplements.
At 52, the reality has sunk in: I may need to work indefinitely to support my family financially. The thought of not earning a living is simply not an option.
Recently, the Pensions and Lifetime Savings Association released statistics indicating that the estimated annual income required for a “moderate” standard of living in retirement has surged by £8,000—from £23,300 the previous year to £31,300 for an individual. Another statistic from Quilter, a wealth management firm, suggests that to achieve this, one would need a pension pot of approximately £459,000.
My private pension must support not just me, but also my partner, our children, and three cats (who, despite their age, consume a box of cat food every two days). My partner works in education but lacks a private pension, making me the primary earner. With our children still quite young—aged six and 11—they’ll likely continue living at home well into my sixties, unless one of them becomes the next big YouTube sensation.
I was fortunate to enter the property market in my late thirties, and I acknowledge how privileged I am to have achieved that. However, it took relentless hard work and numerous sacrifices in my health and well-being during those years. I still have nine years left on my mortgage. Presently, I can manage the payments comfortably, but the future remains uncertain.
Despite my dedication to hard work, none of my jobs have made me wealthy or provided a safety net for unexpected events. The past few years have been filled with navigating redundancies and finding my place in the freelance economy, leaving me feeling trapped in a financial struggle that resembles a state of freeze, fight, or flight. It’s utterly exhausting.
Currently, I have no savings, nor have I ever truly accumulated any. I did manage to overpay my mortgage for a time, and I count my blessings that I have friends with larger mortgage debts, which puts my situation into perspective. Like many others, I have noticed a sharp rise in everyday costs. To save money, I buy and sell items on Vinted, especially for my kids, who are always in need of new clothes.
Having children later in life—at age forty—has also had its financial implications. It’s particularly challenging when you’re at your peak earning potential. I was a managing partner when I welcomed my first child and have yet to reach that level again. Many mothers face decreased earnings due to a lack of flexibility in the workplace, and they often encounter discrimination that stifles their career advancement.
As I observe friends in different financial situations, I find myself envious. Conversations often revolve around inherited vacation properties in Cornwall or secret investments in stocks and shares. One friend even mentioned her husband’s wealth exceeding £5 million due to years of strategic investing. Why was I so oblivious to the fact that others were systematically saving money?
Upon reflecting on my current situation, I realize several factors contributed to my financial standing. I have never been particularly interested in money; my nature is more dreamy and idealistic. I often held the belief that someone would eventually come along and “save” me—perhaps a byproduct of too many Disney movies.
Moreover, financial discussions were never part of my upbringing. In school, topics like pensions and financial planning were completely overlooked. I followed the conventional path of a corporate job for many years, only to pivot into writing and podcasting when disillusionment set in.
I also never assessed my partner’s financial situation as a consideration in our relationship. In contrast, my friends often mention this aspect as a strategic consideration from the start—many wouldn’t even date someone unless their income exceeded theirs.
Looking at younger generations, I ponder what their retirement will entail. Will they also face the reality of working indefinitely? And what implications will advancements in AI have on their futures? A recent survey revealed that Gen Z workers prioritize work-life balance, job satisfaction, and meaningful career development over high salaries.
This doesn’t seem conducive to them contributing significantly to private pensions. Their ability to save is hampered by economic instability, substantial student debt, unaffordable housing, and shifting employment patterns.
Will working indefinitely become the new normal? Does it even matter if no one retires? What will cruise companies do to cater to this demographic? Perhaps we’ll see the emergence of co-working cruises, where everyone has reliable Wi-Fi and sits hunched over their laptops while waiters serve coffee and Tesco meal deal sandwiches.
When I discuss finances with fellow freelancers, I find that very few have pensions. Many live in a constant state of financial anxiety. If you want to silence the energy at a freelance gathering, simply mention the term “AI” followed by, “How’s your pension looking?”
At least many of us are fortunate to be passionate about our work.
I often think of my late father, who passed away at 70, never having the chance to retire. He was an academic, set to step down from lecturing just a month before his passing. It’s likely he wouldn’t have enjoyed retirement, as work was his life—much like it is for me today.
Working keeps our minds engaged and provides a sense of structure, validation, and routine. Yet, the exhaustion that accompanies work is undeniable. I try to avoid dwelling on how tiring it can be, as it quickly becomes overwhelming. This might explain my recent foray into manifestation and magical thinking; I must believe that everything will ultimately work out for the best.
