Thanks Pete this was a timely reminder that it’s ok to spend down capital even if the market has crashed and to just take a percentage less than initially projected. I’m opting for a 2% withdrawal rate instead of a 4%. Cheers Suzy of Charlestown
Keep watching and learning - there’s tons more on the MeaningfulMoney.tv website and from other sources too. It’s a big decision so consider taking advice if things are really complex.
In the run up to retirement is it worth to put all your savings into a pension in order to get tax relief? Then put the rest into a pension when retired in order to get tax relief on everything? How long does it generally take from deciding to retire and get your first payment?
HI Henry You can't put more than £3,600 into pensions if you don't have relevant earnings, that is, income from work, so you're unlikely to be able to pay into a pension once you've retired, though it does depend on your circumstances. To your second question, it depends on your provider and if you move money from one provider to another when you come to retire. Best to be thinking about this 3-6 months before you want your first payment if you're thinking of changing providers. Hope that helps
Hi Pete, I have just stumbled across your channel and this series which I find to be addictive listening and very informative. I am 52 and looking to retire at 55. My plan is to drawdown no more than the tax free allowance each month/year as I want to avoid paying tax. I will have no other income but is the gains on pension capital classed as income? Thanks & regards
Any gains INSIDE a pension are tax-free, Pattaya. You only pay tax on a pension when you draw money out of it, usually using a drawdown account. And remember that you have your tax-free cahs allowance available too. I have a bunch of videos on how pensions work, so search the channel for those.
Thanks Pete this was a timely reminder that it’s ok to spend down capital even if the market has crashed and to just take a percentage less than initially projected. I’m opting for a 2% withdrawal rate instead of a 4%. Cheers Suzy of Charlestown
Good stuff, Suzy!
Really interesting talk but where was the book referred to - I can't find it below the video???
Thanks pete great video I hope to retire before 60 .Havent got a clue how to touch my pension or get the most tax efficient ways to use it
Keep watching and learning - there’s tons more on the MeaningfulMoney.tv website and from other sources too. It’s a big decision so consider taking advice if things are really complex.
If you're not spending you're saving and l always see this in older people especially if they have no grandchildren. 👴👵
Excellent thought provoking video. Thank you
In the run up to retirement is it worth to put all your savings into a pension in order to get tax relief? Then put the rest into a pension when retired in order to get tax relief on everything? How long does it generally take from deciding to retire and get your first payment?
HI Henry
You can't put more than £3,600 into pensions if you don't have relevant earnings, that is, income from work, so you're unlikely to be able to pay into a pension once you've retired, though it does depend on your circumstances.
To your second question, it depends on your provider and if you move money from one provider to another when you come to retire. Best to be thinking about this 3-6 months before you want your first payment if you're thinking of changing providers.
Hope that helps
Hi Pete, I have just stumbled across your channel and this series which I find to be addictive listening and very informative. I am 52 and looking to retire at 55. My plan is to drawdown no more than the tax free allowance each month/year as I want to avoid paying tax. I will have no other income but is the gains on pension capital classed as income? Thanks & regards
Any gains INSIDE a pension are tax-free, Pattaya. You only pay tax on a pension when you draw money out of it, usually using a drawdown account. And remember that you have your tax-free cahs allowance available too. I have a bunch of videos on how pensions work, so search the channel for those.
Thanks for great info Pete…. Like your presentation style, but…….SEASONS !!?? 🇺🇸🇺🇸🇺🇸👎. 🇬🇧🇬🇧🇬🇧👍
Ha, you may be right. I’m kinda stuck with it though now - the next podcast season (series?) which will be audio-only, is number 21!