I didn’t save so I’ve only got a state pension

Cathy Broomfield is 65 and should be retired as she could be drawing her state pension. But she admits she kept putting off facing up to her financial future and is now scared about how she will manage when she gives up working – she has no pension savings and will have to rely on her state pension. Cathy from Chelmsford, Essex, explains:

My problem is I never thought about retiring. I’ve worked most of my life, except for bringing up the kids. I don’t feel 65 and I’ve put off making decisions – head in the sand type of thing where I thought if I didn’t think about it, it wouldn’t happen. I’m divorced so I’ve only got me to rely on during retirement.

“I have had a really interesting job in IT for over 20 years but I’ve never had a works pension and it never occurred to me to sort out my own private savings. Hindsight is a wonderful thing and I now know I should have been putting something away as I worked. Auto-enrolment has now come in at work but because I was over my state retirement age I didn’t contribute to that.

“I’ve checked my state pension, which I became eligible for at age 62 and have deferred. I’ll get a full pension but it will be the old, smaller amount that is around £40 less than other people retiring now under the flat-rate system.

The only option I have is to sell my home and downsize so I can pay off my outstanding mortgage and, hopefully reduce my bills. I suppose I’m luckier than some women but it’s still scary. Women now have much higher earning power and there’s so much more information and advice about financial planning. I hope lots of younger people take action so they aren’t left struggling like me.

“I’m now thinking seriously about what I am going to do. I’m probably going to have to find some part-time work so I can keep my head above water. It’s worrying because I know it will not be easy.”