In our Money Secrets series, we ask people to confess their furtive money-related secrets which they are hiding from loved ones or that people do not know the full extent about.
Today, we speak to Roger, whose name we have changed to protect his identity. He reveals he is still working at an engineering firm at the age of 70, even though he has more than £2m in his pension pots and has plenty of savings.
I was always good at saving money from a young age – and I soon realised that if you work hard, you can earn more money.
I grew up in a household where there wasn’t much money to spare, and during an era where people only spent what they could afford and if they wanted something, they either saved up hard for it, or went without it completely.
As a youngster, I did odd jobs whenever possible to earn a bit of cash. And unlike my brother, instead of spending any money I had on sweets, I learnt early on that if you put your money away and saved it, you could buy something better later on.
After school, I got a job in engineering and from the start, I enjoyed working and getting a regular income. I have now been at the same firm for over 40 years and just through regular pay rises and working my way up, I am on a decent salary.
On top of that, the benefits that come with my job are very good, and the pension scheme is very generous compared to a lot of companies nowadays. When I first joined the company, the pension scheme was a final salary one, but it has since changed to a part final salary and a part defined contribution, but it is still a good scheme.
I’ve been paying into my pension ever since I started working and over the years, I have been putting more and more into my pension using additional voluntary contributions (AVCs). Whenever I’ve had a bonus, I’ve put that into my pension too.
I have never married or had children and I live alone in a two-bedroom house. I could easily afford to buy a bigger place, but I like where I live and it is more than enough space for what I need.
I don’t have extravagant tastes and my car is a decent car, but it is 12-years-old. It gets me to work and back, so I don’t see the point of buying a newer one.
Equally, I’m not a big one for holidays and while I enjoy travelling around the UK for breaks, I don’t go abroad very often as I don’t like it when it’s too hot or busy.
I have simple tastes and am content with my life and doing the things I like to do. As a result, I earn a lot more than I spend each month, so I put as much as I am able into my pension, as well as putting money into cash ISAs and various savings accounts and I have the maximum amount in Premium Bonds.
I have now amassed £2m in my defined contribution pension pot – and that’s before I take the final salary element and the 25 per cent tax-free lump sum into consideration – which means I will have more overall.
Across cash ISAs, savings accounts and Premium Bonds, I have another £900,000 saved up.
In fact, I have got so much money in savings after maxing out the tax-free options, that I have to pay a considerable amount every year in tax on the interest on my savings. I am also getting my state pension.
I did defer it for a few years because of me working, but I am now getting it – although I am losing a chunk of it in tax because of how much I am earning.
I could easily afford to have retired many years ago and have had enough cash to live a lavish lifestyle until the end of my days, but instead, I am still working at the age of 70 – and I have no plans to retire.
I enjoy my work and the satisfaction it gives me and I like the people I work with, love the banter and chatting with them. Some of the younger ones seem puzzled that I am still working by choice at the age of 70 instead of putting my feet up and enjoying retirement.
One lad actually said to me: “Surely you must have accrued so much in your pension by now that you’ll never be able to spend it.”
He didn’t realise how he had hit the nail on the head, as I keep my finances and pension situation a secret from everyone. In theory, I could live a lifestyle like the Beckhams – which I would absolutely not want to do – until the end of my days and still hardly make a dent in all the money I have accumulated.
I have reached a point now where I simply won’t live long enough to spend what I have got, even if I suddenly started living a really flashy life.
The truth is, I am terrified at the prospect of finishing work for good. I don’t have a clue what I would do without the structure to my days or my work colleagues to talk to. And I enjoy having the sense of purpose and job satisfaction that working gives me.
The other thing that frightens me is that both my dad and my uncle died within a year of retiring from work. So I fear the same thing happening to me and keeping on working is almost like an insurance against suddenly dropping down dead.
Someone said to me: “What are you working for if you never get a chance to spend or enjoy your money?” But I am happy and content with my life, even though in theory, I am a multi-millionaire – despite not living like one.
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