The ‘baby boom’ took place between 1945 and about 1960 (approximately) and the boomers will be approaching retirement shortly. If you’re a boomer and you have no (or very little) pension in place, what should you be doing?
Your first port of call is to find out how much state pension you are likely to be entitled to. You can request a forecast from the pension service although only if you are due to retire before 2010, other wise you can estimate it with the basic state pension and note that if you have been paying higher rate income tax since 1978 you’l usually get about Â£69 per week in state second pension and most people get less.
If you have no pension, the state pension is going to be providing the mainstay of your retirement income especially if you are an early (older) boomer. Your entitlement will depend on the National Insurance contributions that you have made and will continue to make over the course of your working life. Everyone will get the basic pension, and most people will get some additional pension as well, although this may not be true for the self-employed.
If you have a some pension built up with an employer or private scheme, you need to find out how much the benefits are predicted to be when you retire and how much the pot is predicted to be worth. You can find this out from the trustees of the scheme or from the pension provider.
You also need to do a budget to find out where your money is currently going so that you can make some choices about how much you can put away towards your retirement.
Once you have this information you can start to make some plans.
- baby boomer with no pension: tax and benefit implications
- baby boomer with no pension: total possible retirement income
- baby boomer with no pension: options