Fears are mounting that more and more older workers will retire ill-prepared for the skyrocketing costs of financing their golden years. To make us think about preparing for retirement, so-called ‘mid-life MOTs’ are being expanded.
These APKs are essentially online or in-person tests and classes to help people in their 40s, 50s, and 60s take stock of how secure their finances really are — and get back on track. So how good are your finances? Take Money Mail’s mid-life money quiz and find out.
We’ve teamed up with pension giant Aviva, which offers free testing along with other major providers and the government’s website, to create the questions below.
Choose the answer that best reflects how you live your life and finances. Give yourself 3 points for each A answer; B scores 2; and C only 1 point. Add it up and see how you score – then follow our experts’ advice.
Mid-life APKs are essentially online or in-person tests and classes to help people in their 40s, 50s, and 60s take stock of how secure their finances really are
1. Have you set a monthly goal for your spending and savings?
a) Absolutely. I know exactly how much I spend and log everything in a color-coded spreadsheet.
I have several savings and investment accounts and top them up monthly.
b) I spend as I go, but I keep an eye on my budget. About once a month I transfer money to a savings account or investment plan.
c) No. I’m hopeless at keeping up. I have all my money in one account and hope to have some left at the end of the month.
2. Do you need to borrow money to make ends meet?
a) I would never buy anything that I can’t pay for right away and I don’t have a credit card. I have always lived by the principle that all debt should be avoided – except a mortgage.
b) I have occasionally had to use a credit card in emergencies or for large bills, such as fixing my car or fixing a leaking roof. However, I always paid it off within a few months.
c) I have several credit cards and have found myself putting more and more on them as the charges go up. I can’t afford to pay them off every month, but I have to keep using them to cover basic needs.
3. How much money do you have set aside for emergencies?
a) I have about six months (or more) of living expenses saved in an account that I can easily access.
b) I have several thousand pounds in a savings account which would see me through in the worst case scenario. But it would only last about two to three months.
c) I have very little savings and at the moment there is no way I can put anything aside. Every penny goes towards the day-to-day living expenses.
4. Have you calculated when you can afford to retire?
a) Yes, I know when I want to stop working, have figured out before then how much I need to save and have a clear plan on how I am going to achieve that.
b) I know how much my pension will cost me, but I’m not sure how much I will need. I intend to retire when the time is right.
c) No, I have no idea how much pension I have. And I haven’t even thought about how much I need for a retirement that can last 20 years or more.
5. Do you know how much the AOW is worth today?
a) Yes, and I can tell you how much it will rise next week for the new tax year: £10,600 per annum.
b) I have a rough idea it’s about £10,000 a year.
c) No, it would be a gamble – but I hope it’s enough to pay the bills!
6. Do you know how much you regularly save for your personal and company pension(s)?
a) Yes, and I’ve even chosen to increase the amount I put in each month.
b) I know it comes from my paycheck and have an inkling of the percentage, but I’ve never taken the time to check exactly.
c) Does my employer pay a pension for me?
If so, I have no idea how much goes into it.
7. Do you know where your personal and occupational pension(s) are invested?
a) Absolutely. I transferred old pensions from previous employers to my new one and kept track of them with each job move.
b) Yes, I know the names of the companies with which I have a pension, but I have never tried to log in.
c) I have no idea and wouldn’t even know how to find out.
8. Have you calculated how much your personal and occupational pension(s) could be worth if you take them?
a) I know exactly how much my various workplace and personal pensions will add up and how much income they will bring me when I retire.
b) The income that my company pension will provide is on my pension statements, but I don’t remember what it is.
c) I wouldn’t even know how to figure that out.
9. Do you view retirement as a process over time, rather than a fixed date?
a) Yes, I plan to go part-time and gradually phase out over the course of a few years.
I couldn’t handle the abyss of working one day and stopping completely the next.
b) It depends on what my options are when I reach retirement age. I would like to stop working altogether, but if I need the money, I will continue until I feel it is enough.
c) Not at all. I’ve always envisioned the day I retire and look forward to celebrating the end of my working life.
10. Do you regularly seek career guidance from others at work?
a) I may be middle-aged, but I still want to develop myself, so I regularly seek advice from my managers and other trusted colleagues.
b) Once a year I ask my boss about my future during appraisals.
c) At my age I don’t need career guidance. I’m just going through with it.
11. Do you have a good work-life balance?
a) I have clear boundaries between my work and my family life. I never take on more than I can handle and also make sure I don’t take it home at the end of the day.
b) Work can get busy at certain times of the year, but during quieter periods I usually make sure I can get home to do some exercise and spend a few hours with my family.
c) My job has taken over my life and is spilling over into my evenings. I don’t have enough energy left to do things properly at home and I don’t get enough sleep.
12. Do you have control over your time?
a) I leave work on time and have a clear routine with my family that allows me to exercise, do chores, and eat and sleep at set times.
b) Some weeks are better than others, but I have a stressful day every now and then.
c) Work usually spills over into weekends and my days off. I also have a lot of family demands at home and feel exhausted at the end of the day. My to-do list often seems endless.
Some links in this article may be affiliate links. If you click on it, we may earn a small commission. That helps us fund This Is Money and use it for free. We do not write articles to promote products. We do not allow any commercial relationship to compromise our editorial independence.