Got a pension plan? 3 women share how they'll be funding retirement

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It's not always an easy topic to consider, particularly when that milestone appears a considerable distance in the future.

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The early bird

Putting your pension fund in place as early as you can makes it easier to get to retirement owing to the wonders of compound interest, which means that money that's invested early builds up into a much larger amount by the time you retire than money that's put in later. If you're an early starter, make the most of your head start by increasing your contributions, especially if your employer is matching them.

Laura Pomfret, 37, understands the significance of making pension contributions from a young age, as she became a mother for the first time at just 23.

‘It was a spontaneous decision and as a young solicitor, I wasn't thinking about myself, being a parent means putting the needs of others before your own. I was concerned about how I'd manage the nursery costs, so I embarked on a path to improve my financial wellbeing.’

Following paying off her debts and building up a bit of savings, Laura turned her attention to her pension. 'Once I returned to work after having a child, I began contributing to my pension again, which lowered my take-home pay but was necessary. Later on, after I'd purchased a home, I significantly increased my pension contributions, leaving me contributing nine or ten per cent of my salary. This has resulted in an excellent pension for me now.'

Laura resides in Manchester with her husband Carl and their three children, Ava, Albi, and Ally. She has recently quit her job as a lawyer to launch a financial wellbeing community for women called Financielle. Nevertheless, she remains committed to maximising her pension contributions and urges her husband to do likewise.

After over a decade of paying into her pension, she's finally starting to see the money working for her, steadily increasing in value over time due to the power of compounding.

‘I simply carried on as usual, making the most of the available time,’ she says regarding her pension fund. She advises younger individuals to begin saving for their pensions as soon as possible.

'She suggests that if someone is happily shelling out for various services, including Netflix and a gym membership, they should also prioritise paying into a pension fund.'

The mid-life maximiser

Even if you have fallen short of saving into your pension in the earlier years of your career, establishing a plan later on can still reap benefits, particularly if you adopt a multi-faceted approach to accumulating assets for the long term.

At 43, Kate Flounders recognises that she needs to think ahead and make arrangements for her retirement, but as a freelance worker, prioritising her future can be challenging.

"I'm the managing director of my own company, the Safeguarding Association,' she says. 'It's been around for about a decade, and prior to that, I held various roles where pension schemes were available, but they weren't always the best. Only a small proportion of my salary went into them.' Following her divorce in 2022, Kate has started to devote some time to planning for her retirement, recognising that, despite feeling disadvantaged, there are steps she can take to improve her situation.

'I'm constructing my wealth, gradually, by reviewing how I allocate any profits from the business on an annual basis and endeavouring to boost the value of my property as much as possible,'

‘In the long term, I will benefit from having assets at my disposal.’

Kate is investing in renovations to her house in order to increase its worth, with the intention of downsizing or tapping into the accumulated equity in the future, should she require it.

‘I have no idea what the financial situation will be like when I reach retirement age, so I'm keen to keep my options open,' she says.

Kate, who is based in Hartlepool, claims that she frequently feels a sense of being reprimanded when she hasn't begun saving for her pension, which often isn't particularly constructive.

‘The struggle to make ends meet and live some sort of life is extremely tough,’ she says. ‘In my late teens and early twenties there were plenty of resources available, but most of them used complex language.

I'm being honest with myself that my pension savings are not what they should be, but I'm not going to dwell on it because it's done, it's history.

‘I'll have to invest that elsewhere to get it back, though – my focus will be on what I can do now to maximise my future earnings and determine how much of each should go towards different things.'

The late developer

If you've reached state pension age but still haven't accumulated enough savings, considering non-traditional options can help supplement your income.

Potential solutions could involve equity release for homeowners who want to tap into their property's value during retirement, but more and more people are maintaining a part-time job or pursuing a 'hobby-turned-venture' by utilising skills they have developed over the years.

A recent survey by Smart Energy discovered that nearly forty per cent of over-sixties have launched a new business or enterprise to supplement their retirement.

Jane Keigly, 67, a retired book seller, is continuing to work in order to supplement her pension and finance her lifestyle by pursuing a long-held passion.

‘I'm part of the generation who did some work while raising my children but I'm not set for a comfortable retirement apart from my state pension,’ said Jane.

The retired bookseller boosts her pension with additional income by leading guided tours in her native Boston, having started the walking business shortly before the COVID-19 outbreak.

I'm really passionate about local history, having grown up with it," she says. "I began the tours because a lot of visitors to our city are keen to learn more about it.

I find it quite motivating to get out of the house, stay active, and as well receive a bit of income.

To be honest, I couldn’t scrape together the funds for a brick-and-mortar shop, so this online venture is a dream come true. I’m particularly passionate about travelling and history, and now I have the opportunity to combine those interests in my work.

‘My friends are all doing very well in their retirement – earning a bit of money and really enjoying themselves.’

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She hasn’t made any plans for when she intends to stop her walks for the time being and is simply hoping to keep going.

‘I’m trying to stay healthy, but it's this that really motivates me a lot,’ she says.

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