Check the description for the links to the sources I mentioned. These might be useful too: 🔴 ua-cam.com/video/lO2n9jO61cs/v-deo.html - Click here to watch Ultimate Guide to Paying Off Debt 🔴 ua-cam.com/video/-Yf7hDZ4nXc/v-deo.html - Click here to watch Ultimate Guide to Budgeting
Question: If my state pension shows max, and Ive paid into it for the required amount of time to claim the maximum amount, can i retire/go off grid at 50 and still claim state when I am 68? or do I need to keep contributing to receive it? thanks
I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 1500+ units from collabrative efforts in the fund my estate planner has me invested in. I do not work.
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I think you're better off with majority investment in S&P500 and uprising equities cos they always outperform. Also speaking with an advisor can help with pointers. I've been in contact with one I reached through commentaries here, she has been really helpful.
Sharon Marissa Wolfe is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Have you thought about saving a bit of money by your retirement, then move somewhere like the Philippines, buy or rent a property and live on your state pension? It might just be an alternative to dying skint 🤔
Of course, one of the big problems is that you can really scrimp now to save for your retirement but no-one knows when our last day on earth will arrive, and we only get one life. Would it be better to live a "good life" now and every day rather than risk having a paupers life now and then die 1 day after retiring? There's no second chance to live our lives again.
Start early enough and it's unlikely to be a paupers existence as a couple of hundred invested as a teen each month into a decent Global Tracker in a SIPP would bring in a decent amount later in life. Best to use a Workplace pension and get the Employer contribution on top though. Can't understand people not taking advantage of this extra money into your future.
@@Bossman525 I'd say use your maximum ISA allowance to get your lump sum well invested. Pay into a SIPP too to get the tax enhancement. Use your spouses allowances too if you trust them enough. Bank accounts only allow you £1000 interest earnings or only £500 if high tax payer. I've got a wedge in premium bonds which although not ideal are tax free earnings and doing better than I would get in a bank so far.
After a load of false starts and bad work experiences after leaving university I finally started saving for a pension at age 29. Now I'm 55 and have saved up £690k in my fund. I'm hoping to retire at age 61 with a shade under the 55% tax threshold.
What 55% tax threshold. There's 20% basic rate, 40% higher rate and 45% maximum. You pay 40% on income above £50000 per annum and I think it's 45%, on income above £125000
Been sorting my pension out, been telling the family how important it is..but after watching you , will send them the link as you have explained it so well..cheers Pete 😊
I started rebuilding an entire life at age 40 with a backpack of clothes and £12 in pocket, so stuff like this saying it's not impossible to still build upto a retirement is fantastically motivating!
I paid into a work pension schem from the age of 40 to 61. I brought up two children on my own. I paid approximately £50 to begin with and gradually increased it to £ 100 per month. At 55 I had over £ 50, 000 but then this got hammeted because of Truss and the stockmarket going mad. I lost £ 13, 000 in one fell swoop. I have left my pension untouched and it jas increased by £3,000 but I am still £ 10,000 less than I had. I feel sick about this.
I’m sorry to read this. That would suggest your pension was heavily invested in bonds. They will recover, but it might be a bit slower than the time it took to lose. As interest rates start to come down bond prices should edge up. Sorry you have had a bad experience.
Take the money out and put it into Gold. I guarantee you in 5 years time you'll have trebled your money and in 10 years time you'll have x5 minimum, if not more. The other great thing is that it has intrinsic value. It can't just disappear because somebody decided to do a bad investment with your money
We all learnt about compound interest in school but we thought we had ages and then we forgot about it because we stopped doing maths. There should be a strong focus on "life skills"
Totally agree. Two years ago I sorted my finances out as I saw 50 looming. At the same time I educated my kids. Got them into good habits with pocket money, ISAs and even their own pensions. It's not difficult to teach and I have no idea why the schools don't teach it. My two boys now focus on the excitement of seeing their bank balances grow instead of wanting to own the latest designer cr^p. It's been an amazing thing to watch. They now choose not to buy things more often than buying. It's a crime not to teach kids these skills.
Thanks Pete, I only started with investing/pension last year at age 48.. I'm doing my best to retire at 57 .. I only have a low level manual job wage, but am now on track as I invest at least 50% of my earnings.. Please keep doing videos like these, it gives hope :)
Thanks for this. I'm a late starter knocking on the door of 50. Other than a pension I had during my apprenticeship I told myself I'd never live to see pensionable age so why bother. My family has a history of male heart trouble and i started suffering from panic attacks at the age of 21, this is way before people had heard of them and the only thing my doctor told me was to get back to work, which i did and silently put up with them for over 20 years, everytime feeling like i was about to die. It''s only this last 5 years that I've stopped getting them regular. Only joined my company pension 10 years ago because of this fear. 18 months ago I started watching you tube investors like yourself and opened a stocks isa with vanguard, been putting £500 a month into a global index since. Now I'm worried I'll be to late, I still might not make pensionable age but I'm trying.
If you have offspring/wife/favourite charity then make sure your pensions list them in the beneficiaries section, so the pension is passed to them in case you die early.
I found this channel today, and felt this was a decent place to start. I am lucky in that I do have a few pensions already that I have had for some time, I’ve no real debt but I don’t have a property which is something that I focus on. I wil go through the steps though as I don’t know what they are all worth and never worked out a budget so to speak on what we would need later in life, so ill get that done. Thanks for explaining in a clear way.
For the "it's too late, there's no point now" people, I'm always reminded of my uncle, he reached the age of about 73, and had nothing, no assets, no pension, no savings, and had spent his life 'bumming around' (as my dad put it). His family lived in permanent fear of him turning up on their doorstep and saying "Hi! I've come to stay! (indefinitely)". One of the reasons I'm kicking myself that I left it so late, and am very keen to play catch-up now, is I'm desperate not to be 'that guy', who has nothing.
If you `re in a position to pay in £250 per month from 50 to 67, the chances are highly likely you will already have a pension pot. In the early part of the example, from 67 the bloke said an income for pensions (state and DB) of £12,000, ergo only £2k from the DB, that is exceptionally low. I was in a DB from 1987 to 91 and as a youngster was on low pay, probably from £7K to £14K in that four years and when I get to 65 may "Members Pension Payable from Normal Retirement Date" is £25,600pa. I cannot see how a DB in the example in the video can only be approx £2,000
I’ve just discovered your channel. You explain finance in a very simplistic way and you’ve obviously seen more life than most of the young guns that have UA-cam platforms. My question to you is this, I have a fair amount of savings but no pension Pot. What would your advice be in my case. Im late 30s.
Love this. There needs to be more of this kind of stuff for those that think there position is impossible. Good practical advice that shows there is hope for all of us
Great video Pete and realistic advice on how to dig yourself out of a pension hole! I myself was in a similar position eleven years ago, in my late forties and after having to close my business after the 2008 credit crunch, and virtually no pension. Well through very hard saving and investing over the last eleven years, and doing pretty much what you describe, I now have a pension pot of £300K. So I am living proof that your approach does work. But two things I would add, you do need to earn a decent income to achieve it, and it will HURT somewhat. But when the pot starts to build up, these large sums don’t seem so unreachable anymore.
My wife (54) doesn’t have a pension and recently inherited £400k. Should she use this to start a pension? It’s putting most of it into the pension immediately a good idea…or does it only make sense to spread it and pay in the £60k tax limit per year. As you can tell, i am not money savvy!
No good when you are 55 private renter have an employee pe sion thats been abused by employer ih and cannot forget the od and cc oh ang pl ,got no chance
I don't think there's anything wrong with seeing "retirement" as being a reduction, not necessarily a cessation of work. Who reading this who is working wouldn't like the idea of 2 or 3 days' working and a 4 or 5 day weekend? Might mean taking a different sort of job. Even a minimum wage job would give you about £7k a year for a 2 day a week job. Maybe just for just the first 3,4 or 5 years after getting to state pension age. Sure, it's not ideal but "ideal" would be winning the lottery 🙂 . It's about being realistic. Planning that could mean whatever you have in a pension pot has an extra few years to grow before you need touch it. As this great video makes clear, just because you've done nothing to date, doesn't mean you can't start planning today!
Late reply to this comment but I agree that the idea of retirement being picking up a golden clock on the Friday and then stopping completely. Keeping active in old age means a better retirement and a bit of work 2 days a week sounds perfect!
I heard someone say recently "The key is to able to retire, but not want to". My dad and some of my friend's dads have all done a similar thing, they 'retire' in their mid 60s, but then take a part-time job at B&Q or whatever - my dad works a couple of days a week at a school, not because he desperately needs the money, but because he likes it. He gets to stroll down there of a morning, chat to the staff, chat to the kids, do a bit of work, and then be home again before my step-mum finishes work for the day. He told me he'd keep doing it if they stopped paying him.
Really nice video but the starting position of magically having a 5k per annum pension just sitting there doesn't seem reasonable ... and adding that magic income to the required pot of 250k really does make it harder
There are very many people with Defined Benefit pensions who may have guaranteed incomes. Plus, the full state pension is £9500 a year approx, so most people will have some kind of guaranteed income.
My pension is 9709 per annum after commuting a tax free lump sum. I started receiving it at 42 and it 55 it will increase by the annual CPI in the intervening years. Current rough estimation is it worth £13200 at the moment . I’m paying into a workplace pension £ 120 Pw .
I think it is amazing that you find time and patience to answer to almost everybody. Your videos are very inspiring but sometimes you may be too optimistic. I constantly worry abour the future, can't afford finiacial adviser but when I ask people at work they don't seem to know much about pensions or to care. Most of them have no idea how much they have in their pension pot. At times I feel weird that I am researching this topic and saving (about 500 pounds monthly into my employer's pension) because most of my educated colleagues completely ignore this issue.
You’re not weird, you’re ahead of the game! And you’ll retire more effectively than your peers. Keep going, keep learning and enjoy the journey - your future self will thank you! 👍🏻👊🏻
You’re not weird, you’re ahead of the game! And you’ll retire more effectively than your peers. Keep going, keep learning and enjoy the journey - your future self will thank you! 👍🏻👊🏻
Do you think it’s worth it to save into a pension if you’ll never buy a home? With my salary buying a home is impossible. Pensions are great assuming you paid off your home. What you didn’t? It’s impossible with how rents and property costs are
Please address the massive drop in pension funds that has happened since January 2022. I have lost 26% over of my two funds in five months since mid January and the rate of loss has accelerated. I have been losing £800 a day for the past ten days on one of my pension funds. Be realistic. We have inflation, a war and soaring energy costs, plus Brexit effects. It could take many years for the funds to recoup what they have lost and I am at state retirement age and was wanting to retire in a year. I am very worried about this. Please provide analysis that is based in reality.
Agreed. Please consider talking about the safest option. I have been thinking about investing for a year now and reading about but my main worry is not to lose the money I already have. With this attitude, is the likelihood of losing money with work pension provider lesser than with SIPP? Afterall these are gov backed companies? That's my naive thinking...
Sorry unfortunately my brother in law put heaps in his pension sacrificed his life to have a good retirement and died at 62 never saw it we need to enjoy life who knows what life has in store for us
I agree with your sentiment, Pam, and I’m sorry to hear of your loss. It’s about balance. Putting nothing away for the future makes as little sense as sacrificing everything for tomorrow and not enjoying today. For everyone who unfortunately dies early, there are more who are living longer and need to be able to support themselves through a 30+ year retirement.
Watching this at age 47 and about 15k in the pot. Will have my state pension and Army preserved pension payable at age 60 and 65. I'm at that point in my life where I'm starting to worry so going to start putting away to build that pot up. I don't really want to be working in the job i do pass 67.. 20 years to go 🤞
Hi Pete, great video!, I earn 50k per year and am on the 20- 40%tax threshold. Is it worth my next pay rise of £5000 (for example), taking a salary sacrifice and asking my employer to put the full £5000 into a SIPP account of my choice?. Could I also then do an extra 3% and then get them to match the 3%?. How can I explain that this benefits them as well?.
Saw my doctor yesterday. High blood pressure, chest pains, high heart rate, high cholesterol and a sliding hernia. Went home and added another £200k to my life insurance so my wife and child are OK. This morning the usual sausage, egg and bacon baguette with brown sauce and a builders’. I’m 58 and retirement isn’t a worry
You haven't allowed for inflation. With inflation that extra £10k needed could turn out to be nearer £15k to £20k meaning you would actually need a pot of around £400k-£500k.
In general you try to accommodate inflation by reducing the return by 3%-ish, so if a pension returns 10% on average (some years are good, others are bad), you calculate growth using 10-3=7%.
@@AgileSnowWeasel So out guy here is talking about 6% average annual growth for 17 years. Are you saying the actual growth would be 9% and the 6% is a 'real terms' growth rate having allowed for inflation at 3%?
@@johnwitham5353 Yes, S&P500 returns 10% on average, FTSE World is 11% on average (shorter history though), and there are various risk profiles. So if you thought US Tech Stocks were still going to grow massively in the next decade you could get an S&P500 Tech ETF like IITU and get even more. At some point you switch from investment into speculation territory though, and it's down you how much risk you can stomach.
@@johnwitham5353 Obviously as you watch more of these videos you'll hear a lot about SIPPs, Stocks and Shares ISAs, and ETFs, and it turns out these are fairly simple to get into, and the risk is spread over lots of different companies. It's why a lot of people use SIPPs instead of pension companies, it reduces the fees (which I didn't mention).
Hmm, scrimp now, be frugal, for something you may well never get the benefit on. I'm more trying to work out how I might live, but also spend all my assets and not leave anything behind.
Thanks for this, it has given me hope. Would you recommend focusing on mortgage overpayments (to reduce the mortgage term) or paying extra into the work place pension? I can only realistically do one of these.
If you pay off £100 off the mortgage, what will you save? If you pay £100 into your pension, what will you make? If you are getting tax relief on your pension payments, I suspect the pension wins every time. But make sure that you have a cash buffer or reserve should you need emergency funds.
Call me old school but I've never had the trust in pensions and their volatility. Pay off your mortgage quicker by using your savings into an offset mortgage. Then use your savings to buy one 2 bed flat outright and put it on rent. This rental along with your state pension should give you a yearly income of c£20k. If you're on your own or with a partner and you live in a 3+ bed house, either downsize and have extra capital or, convert the upstairs into a 2 bed flat and put that on rent as well. Keep the downstairs as your own 2 bed flat and emigrate! Better still, if your figures add up, go to an all inclusive resort in Egypt, Morocco, Turkey etc and it will cost you c£1.5k per month with nothing else to pay for. No food , gas, electric, water, etc. Your state pension and rental from the 2 bed flat will easily cover this. The rental you'll get from your converted 2 bed flat upstairs will be added income just building up! This is my plan for retirement.
Very true… stocks is the way to go, invested 200k last December and I am already up a million dollars… looking forward to next years analysis with my advisor… pretty excited!
What investment gives a 6% return? There is no risk free investment I know of that gives anything like that! If you gamble on the stock market you could loose all your money and conversely if your gamble pays off you could end up with more. However if you are a good investor who can beat the market then you don't need a pension.
That’s a reasonable long term average for a globally diversified portfolio of equities and bonds. You can buy these off the shelf easily enough, and the only way you’ll lose all your money in shares is if you invest in too few companies and they all go bust. Stay tuned for the video coming on Monday…
@@mrfixit2788 ok but what has been their average over the past 5-7 years? The growth that was seen by pensions between the 90s and around 2010 skew the figures and won't be seen again now or in the future. The world economy is a ticking bomb with the multi trillion US debt, current wars, potential world wars etc. My advice? Invest into things with intrinsic value
When it comes to dividens from a mutual fund ..how would people know they're getting the right amount? I ask as it's something I find difficult to get an answer about. Currently have about £7000 in an UBS S&P 500 fund and get about 27p to 40p 'distribution Reinvestment' each month...is that about right or should I be switching? Im about £800 up and happy with the low cost 0.09 fund...just find the dividend side hard work after seeing so many yotube videos. Really appreciate your channel as somwone who is really trying my best to make a better future ...a little too late of course.
So in 2019 I had a pension pot worth 67k in a low to medium risk fund. Current world affairs caused my pension to drop to 59k in 2021, a loss of 8k. "Don't worry", they say, it'll recover! So in March, it got back to 64k only for me to lose another 2k! So, is it really worth investing your pension and even continue contributing into it. At this rate, it'll take a further 5 years to get back what I've lost?😢
The past year has seen excellent returns in competent pension schemes. Your issue is that you've gone safely-safely and been affected by bond markets performing badly just as the high risk equities have performed as they always do, excellently (averaged over the long term).
Pension? I've lived abroad since I was 25ish. Many different countries. I'm 54 and have little savings... I'm planning on dying as a retirement scheme.
Thanks for another great and informative video, i've shared with my work colleagues many of whom are significantly younger but figured the sooner they start, the less painful it's going to be. Unfortunately many of them joining the company far later in life than i are on a Dc pension whereas mine is part DC and part DB. Hopefully they will take the info on board.
He just speaks the obvious, offers nothing but hope with easy speak.. he may as well say just buy several lottery tickets a week. If you are in the position of basically nothing at 50 with no assets then sacrificing your remaining healthy years away by saving and enjoying nothing in the present for some elusive future that you may not even reach is bad advice.. reality is you will never save enough and the stress of worry achieving that may likely kill you.. so continue to live for now and enjoy life aa it happens.
Rather than worrying about money, concentrate mainly on keeping physically fit. This will then enable you to collect a decent wood pile and carry tarpaulin, cardboard etc for reasonable distances. Whilst you are still able to look at youtube, take some time to look at how to build make-shift shelters in the woods, and trap rabbits etc.
I don't to disclose who I am but I am much like you having spent decades in "financial services" both as an "IFA" as well as a "product provider". Assuming that a person owns their home outright the MINIMUM that one person needs to have capital across wrappers like PPP/EPP, PEP/ISA etc is £500,000.0 Anyone with less than £500,000.0 is in for a very hard time.
Does that not depend on their spending though? If someone only needs to supplement their state pension by £10,000 a year then they wouldn’t need half a million.
@@MeaningfulMoney As ever the answer is not a binary. This is based on my own calculations but it is very accurate. Realistically its better to assume a value of £1.0M as the base value of capital which includes personal and corporate pension capital. Its not prudent to assume that the State benefits will be there and not pushed back again.
When the nhs forced this hormone uids my mum suffered from this 20 years ago nhs stopped forcing this type and leave more choices. So being told its you not the device seems like a I make money off selling this type of attitude from a business.
6% investment growth on pension is not guaranteed is it? Is it possible to find out investment growth for each pension provider in previous years? Where can I find this information?
No, not guaranteed. I use that figure as it’s a reasonable long term average for a moderately adventurous risk portfolio. You can find past performance information from pension and investment fund providers.
Would you advise people to put lump sums rather than spreading regular payments if they can't be disciplined. E.G at start of the year 5k in, then leave to grow.
Putting a chunk of cash in and watching your investment dip 15 to 20% a few months later can be really demoralising. Drip feeding by Direct Debit a regular amount gets you pound cost averaging. One month you buy at top of market another you might buy at bottom but over time you'll be around the middle ground. It's not about timing the market but time in the market.
53 here. Aiming for 67 retirement. Do I (a) push for three years to clear mortgage then invest in work pension (40% salary sacrifice) for 11 years? or push a little less hard on the mortgage to free up some additional contributions to the pension for those three years?
I worked self-employed at construction all my life like a lot of people i know no pension in and out of work through people under cutting weather or simply no work about you where lucky scratching a wage or a week's work we were all in the same boat Bearley having enough to live on never mind saving its good advice if your a civil service or any government job nearly all construction workers hitting 60 no pension and penny less what's your advice
Not sure what advice I can give, Michael. Assuming you have no debt then I’m guessing you’re used to living within your means - a skill that will continue to serve you well. If you’re still working, then anything you can put away for the future will make that future brighter…
How many employers are going to match personal pension contributions? In my experience as an accountant in practice, small business owners are only in it for themselves. Public sector? - try asking the NHS/council etc. if they will match your pension contributions. Get real............!
Hi Pete I started about 5 years ago now almost 59 still working I have managed to put away 2 cash ISA's and building up the next one. I have just started investing £260 per month with Vanguard FTSE Developed World EX UK equity fund SIPP. I have looked at my work pension it seems the DB pension I get is forecasted £6885. Is there anything else I can do to continue to improve my financial situation. My retirement date is 2032 I am so glad I have taken action the last few years. I was new to investing so I learnt about investing in a low cost global index fund. I dont know anymore than this about investing
You don’t really need to know any more than that, Louise! You could consider a personal pension alongside your work pension to get tax relief in your contributions, perhaps?
How do you (me) go about finding an old pension from a workplace that no longer exists. So even if I had the address of that company at the time , there's no one to contact to find out who the pension provider was with and I have no payslips to look at. I have asked a few ex colleagues and they don't know either. Also on the government website I can't find the company. I worked at coast stores ltd in the UK. Coast in name only does still exist, but it has entirely different owners.
Great video Pete and hopefully it helps a few out there realise that pensions are the best way to save long term 👍🏻 Salary sacrifice too is a thing of beauty if you get your employer to add their NI saving in too!!
Hiya - thanks for joining us! I have to be VERY careful talking about specific pension plans because to do so could constitute advice, and as I am a regulated adviser, that could get me into trouble! I can, however, talk about things to look for in a pension when choosing, so I’ll bear that in mind. Meanwhile, search the channel - there are hundreds of videos!
Pete, another informative video, thanks for sharing. I was not a fan of pensions in my thirties, I incorrectly assumed that when you and your wife dies all the money paid in is lost - After being educated about this I am now doing everything I can to make up for it now. Something I would appreciate you covering in a future video please is what happens to your pension at the age of 75? If the value is above a certain amount is there additional tax to pay? I appreciate that would be a nice problem to have and I can live in hope :)
Hi Kevin! Really, the only thing that happens at 75 is a final test against the Lifetime Allowance. The LTA is currently £1,073,100 so yes, having a pension over that amount is a nice problem to have! I did a video on how this works here: ua-cam.com/video/7kErytIUmeo/v-deo.html
@@MeaningfulMoney Many thanks for explaining Pete - I thought it was more complex than that. I can say with some certainty I am not going to have that problem but that’s good to know.
Thats an impossible comparison as they’re completely different things! Gold is an asset; a pension is a tax account. You can hold gold IN a pension, for example, though not physical bullion unless it’s a SIPP.
This is terrible that people lose old pension pots because they forgot about them from an old employer in their 20s. All pensions are linked to national insurance number for tax relief. The government should provide a .gov website where you enter your ni number and some details to see all pension pots
Theres no guarantee that your pension is going to be giving you a decent yearly percentage though to get to that figure.. What happens if the banks fail within the next 17 years which is becoming more likely with the debt that the governments have and dont tell me that theyre protected because if it all fails nobody will get anything 😢
Ok, sorry to hear that. 😞 If you have no earnings this tax year (since April 6th 2023) then the maximum you can put into a pension is £2880, which will be made up to £3,600 by Government money. Consider ISAs for the rest, but again, seek advice if you’re not sure.
Timing the market is a fool’s errand. There is no ‘good’ time to invest. Instead it should be done regularly, over time, pound cost averaging to smooth out the ups and downs. Waiting for the right time means that you’ll probably never invest at all, and miss out on years of growth.
we’re pushing to get our mortgage done in the next couple of years, then hopefully push extra hard on saving for retirement (been saving some but not as much as possible). Question - woudl you put all/most into pension contributions as a high tax payer to get most out of tax relief, or split between pension and ISA (realise ISA is already net of tax from salary but may be more flexible when looking at income and minimising tax exposure there?)
Quite probably. You’ll have had a National Insurance number while you worked here, so use that on the gov.uk website to find out if you have some pension coming
As some in my mid-thirties, how reliant do you think I should be on recieving a state pension? I'd like to retire early so I've started hitting the pension contributions a bit harder to fill the gap between retirement and when I can receive state pension, but if the pension suddenly becomes means tested or similar then that's really going the pull the rug under any early retirement plans.
I have no reason to believe that the state pension won’t be there in future. I also don’t think it will all become means tested, though maybe some of it will. I firmly believe that you can only plan with what you know, and trying to second guess the future is a fool’s errand. So I would plan as if the state pension will be there in its current form, and plan *past* that, so that ideally the state pension is mere icing on the cake.
There are two types of Pensioners IMO; those dependent on the State Pension and benefits and those not. To be able to retire early 'comfortably', you'll need to be one of the latter, so look on the State Pension as your 4-weekly 'bonus'. Also be aware that it's taxed.
If it gets means tested that will only mean that you lose it if you've got enough money to live on anyway. A bit like the way they've taken child benefit off people earning above a certain amount. In other words your best bet is to save hard for your pension regardless and feel lucky if the state pension is part of it.
Is my nhs pension still any good on the 2015 scheme? I cant get full benefit until im 68. Ive started an investment isa to try and invest for 23 years to offset me leaving early
Yes, Matt - the NHS pension is still a brilliant scheme, even in its 2015 form. But yes, of you want to retire earlier than state pension age, then you’ll have to save in either an ISA or an ordinary DC pension to have money you can draw from. Good luck!
@@MeaningfulMoney thanks mate. I nearly stopped my pension to go into property when it changed from the 1995 scheme but i deemed it too risky. I think if i invest for 23 years i can just about off set retiring at 60 ( 8 years early)
Video is titled "... With Nothing Saved..." but then goes on assume you DO have something saved in the form of long-forgotten DC/DB pensions! Just be open and honest and say the sad truth is if you've nowt saved at age 55 or 60 then, short of a miracle, you will more than likely live a miserable old age in penury!
Or…maybe it’s true that many of us THINK we have nothing saved but actually do have old pensions kicking around that we’ve forgotten about. Maybe consider that people might be encouraged to do something after watching a video like this and that their future will be better as a result? I hope so anyway…
Check the description for the links to the sources I mentioned.
These might be useful too:
🔴 ua-cam.com/video/lO2n9jO61cs/v-deo.html - Click here to watch Ultimate Guide to Paying Off Debt
🔴 ua-cam.com/video/-Yf7hDZ4nXc/v-deo.html - Click here to watch Ultimate Guide to Budgeting
Question: If my state pension shows max, and Ive paid into it for the required amount of time to claim the maximum amount, can i retire/go off grid at 50 and still claim state when I am 68? or do I need to keep contributing to receive it? thanks
@@stevenerskine751 do what you want
I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 1500+ units from collabrative efforts in the fund my estate planner has me invested in. I do not work.
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
If I may ask, as in withdrew all of the money from the 401K and IRA programs? If so, what was your strategy behind that decision? Thank you.
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I think you're better off with majority investment in S&P500 and uprising equities cos they always outperform. Also speaking with an advisor can help with pointers. I've been in contact with one I reached through commentaries here, she has been really helpful.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
Sharon Marissa Wolfe is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be a true authority in her profession with over two decades of experience. I looked her up on the internet and skimmed through her site, very professional. already sent her an inquiry hoping for a response soon.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Mind if I ask you to recommend this particular coach you using their service?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Sadly I'm 60 and have nothing, but I'm an optimist and expect to die before retirement age.
Life’s a bitch and you’ll probably live to 100🎉
Not very optimistic 🤷♂️
Same here, I'm surprised I've hit 59 dying skint has allways been the plan
Made me laugh
Have you thought about saving a bit of money by your retirement, then move somewhere like the Philippines, buy or rent a property and live on your state pension? It might just be an alternative to dying skint 🤔
Thank you so much! Fantastic advice! I’m 35 and have no pension yet. There is hope for me after all!
Of course, one of the big problems is that you can really scrimp now to save for your retirement but no-one knows when our last day on earth will arrive, and we only get one life. Would it be better to live a "good life" now and every day rather than risk having a paupers life now and then die 1 day after retiring? There's no second chance to live our lives again.
Start early enough and it's unlikely to be a paupers existence as a couple of hundred invested as a teen each month into a decent Global Tracker in a SIPP would bring in a decent amount later in life. Best to use a Workplace pension and get the Employer contribution on top though. Can't understand people not taking advantage of this extra money into your future.
@@Stupot2024What if you have a large pot of savings but no pension??
@@Bossman525 I'd say use your maximum ISA allowance to get your lump sum well invested. Pay into a SIPP too to get the tax enhancement. Use your spouses allowances too if you trust them enough. Bank accounts only allow you £1000 interest earnings or only £500 if high tax payer. I've got a wedge in premium bonds which although not ideal are tax free earnings and doing better than I would get in a bank so far.
@@Stupot2024 appreciate the advice
investing gives you more money
After a load of false starts and bad work experiences after leaving university I finally started saving for a pension at age 29. Now I'm 55 and have saved up £690k in my fund. I'm hoping to retire at age 61 with a shade under the 55% tax threshold.
That’s a tidy pot. I’m 24 and I hope to end up with something like that one day. Spend it well, mate.
What 55% tax threshold. There's 20% basic rate, 40% higher rate and 45% maximum. You pay 40% on income above £50000 per annum and I think it's 45%, on income above £125000
Are you bragging ?
@@Me-ll4ig Not at all. Many are far richer than me.
I don't understand how you will pay 55%. Do you mean higher rate tax?
A lot of people don't get £20,000 even when working.
Been sorting my pension out, been telling the family how important it is..but after watching you , will send them the link as you have explained it so well..cheers Pete 😊
Thanks for that, JC!
I started rebuilding an entire life at age 40 with a backpack of clothes and £12 in pocket, so stuff like this saying it's not impossible to still build upto a retirement is fantastically motivating!
I paid into a work pension schem from the age of 40 to 61. I brought up two children on my own. I paid approximately £50 to begin with and gradually increased it to £ 100 per month. At 55 I had over £ 50, 000 but then this got hammeted because of Truss and the stockmarket going mad. I lost £ 13, 000 in one fell swoop. I have left my pension untouched and it jas increased by £3,000 but I am still £ 10,000 less than I had. I feel sick about this.
I’m sorry to read this. That would suggest your pension was heavily invested in bonds. They will recover, but it might be a bit slower than the time it took to lose. As interest rates start to come down bond prices should edge up. Sorry you have had a bad experience.
Take the money out and put it into Gold. I guarantee you in 5 years time you'll have trebled your money and in 10 years time you'll have x5 minimum, if not more. The other great thing is that it has intrinsic value. It can't just disappear because somebody decided to do a bad investment with your money
You'd think this topic would be taught in school from a very young age, i wonder why it's not 🤔.
We all learnt about compound interest in school but we thought we had ages and then we forgot about it because we stopped doing maths. There should be a strong focus on "life skills"
Yeah exactly, trigonometry and algebra instead.
Because the government don't want you to prosper and want you in debt. That's a fact.
Totally agree. Two years ago I sorted my finances out as I saw 50 looming. At the same time I educated my kids. Got them into good habits with pocket money, ISAs and even their own pensions. It's not difficult to teach and I have no idea why the schools don't teach it. My two boys now focus on the excitement of seeing their bank balances grow instead of wanting to own the latest designer cr^p. It's been an amazing thing to watch. They now choose not to buy things more often than buying. It's a crime not to teach kids these skills.
I guess your statement makes it obvious who really should be teaching this. Our parents and family.
Thanks for the optimism. Would love to see some illustrations.
Thanks Pete, I only started with investing/pension last year at age 48.. I'm doing my best to retire at 57 .. I only have a low level manual job wage, but am now on track as I invest at least 50% of my earnings..
Please keep doing videos like these, it gives hope :)
That’s the way, Celia! Great job - goes to show that anyone can make a difference to their future!
Blimey! I'm surprised you can survive on so little.
Thanks for this. I'm a late starter knocking on the door of 50. Other than a pension I had during my apprenticeship I told myself I'd never live to see pensionable age so why bother. My family has a history of male heart trouble and i started suffering from panic attacks at the age of 21, this is way before people had heard of them and the only thing my doctor told me was to get back to work, which i did and silently put up with them for over 20 years, everytime feeling like i was about to die. It''s only this last 5 years that I've stopped getting them regular. Only joined my company pension 10 years ago because of this fear. 18 months ago I started watching you tube investors like yourself and opened a stocks isa with vanguard, been putting £500 a month into a global index since. Now I'm worried I'll be to late, I still might not make pensionable age but I'm trying.
If you have offspring/wife/favourite charity then make sure your pensions list them in the beneficiaries section, so the pension is passed to them in case you die early.
Who lives at number 50? Why are you knocking on their door? Are you a postman? This video is about pensions, not delivering parcels.
I found this channel today, and felt this was a decent place to start. I am lucky in that I do have a few pensions already that I have had for some time, I’ve no real debt but I don’t have a property which is something that I focus on. I wil go through the steps though as I don’t know what they are all worth and never worked out a budget so to speak on what we would need later in life, so ill get that done. Thanks for explaining in a clear way.
Glad it was helpful - good luck!
For the "it's too late, there's no point now" people, I'm always reminded of my uncle, he reached the age of about 73, and had nothing, no assets, no pension, no savings, and had spent his life 'bumming around' (as my dad put it). His family lived in permanent fear of him turning up on their doorstep and saying "Hi! I've come to stay! (indefinitely)". One of the reasons I'm kicking myself that I left it so late, and am very keen to play catch-up now, is I'm desperate not to be 'that guy', who has nothing.
If you `re in a position to pay in £250 per month from 50 to 67, the chances are highly likely you will already have a pension pot.
In the early part of the example, from 67 the bloke said an income for pensions (state and DB) of £12,000, ergo only £2k from the DB, that is exceptionally low. I was in a DB from 1987 to 91 and as a youngster was on low pay, probably from £7K to £14K in that four years and when I get to 65 may "Members Pension Payable from Normal Retirement Date" is £25,600pa. I cannot see how a DB in the example in the video can only be approx £2,000
I’ve just discovered your channel. You explain finance in a very simplistic way and you’ve obviously seen more life than most of the young guns that have UA-cam platforms.
My question to you is this, I have a fair amount of savings but no pension Pot. What would your advice be in my case. Im late 30s.
Encouraging & wise words for the not-so-youthful.
Cheers Tony! 'Not-so-youthful' - I like that! (And I feel it!)
Love this. There needs to be more of this kind of stuff for those that think there position is impossible. Good practical advice that shows there is hope for all of us
There is indeed, Trevor, and thank you 🙏🏻
I'm 62 and this video gives me hope.
That’s all I wanted to do, Mohamed! Remember - it’s NEVER too late!
Great video Pete and realistic advice on how to dig yourself out of a pension hole! I myself was in a similar position eleven years ago, in my late forties and after having to close my business after the 2008 credit crunch, and virtually no pension. Well through very hard saving and investing over the last eleven years, and doing pretty much what you describe, I now have a pension pot of £300K. So I am living proof that your approach does work. But two things I would add, you do need to earn a decent income to achieve it, and it will HURT somewhat. But when the pot starts to build up, these large sums don’t seem so unreachable anymore.
Well done Rob - just shows what can be done if you put your mind to it, but I absolutely accept it isn’t easy…
That's a lot to have saved up over 14 years but doable if you have a 'professional' income.
50's...... i'm 38 and freaking out lol
My wife (54) doesn’t have a pension and recently inherited £400k. Should she use this to start a pension? It’s putting most of it into the pension immediately a good idea…or does it only make sense to spread it and pay in the £60k tax limit per year. As you can tell, i am not money savvy!
No good when you are 55 private renter have an employee pe sion thats been abused by employer ih and cannot forget the od and cc oh ang pl ,got no chance
Very helpful and encouraging thanks
I don't think there's anything wrong with seeing "retirement" as being a reduction, not necessarily a cessation of work. Who reading this who is working wouldn't like the idea of 2 or 3 days' working and a 4 or 5 day weekend? Might mean taking a different sort of job. Even a minimum wage job would give you about £7k a year for a 2 day a week job. Maybe just for just the first 3,4 or 5 years after getting to state pension age. Sure, it's not ideal but "ideal" would be winning the lottery 🙂 . It's about being realistic. Planning that could mean whatever you have in a pension pot has an extra few years to grow before you need touch it.
As this great video makes clear, just because you've done nothing to date, doesn't mean you can't start planning today!
Late reply to this comment but I agree that the idea of retirement being picking up a golden clock on the Friday and then stopping completely. Keeping active in old age means a better retirement and a bit of work 2 days a week sounds perfect!
I heard someone say recently "The key is to able to retire, but not want to". My dad and some of my friend's dads have all done a similar thing, they 'retire' in their mid 60s, but then take a part-time job at B&Q or whatever - my dad works a couple of days a week at a school, not because he desperately needs the money, but because he likes it. He gets to stroll down there of a morning, chat to the staff, chat to the kids, do a bit of work, and then be home again before my step-mum finishes work for the day. He told me he'd keep doing it if they stopped paying him.
Thanks! This video has really lit a fire underneath my butt, to take my future by the horns like I know I should have been for many years already!!
Really nice video but the starting position of magically having a 5k per annum pension just sitting there doesn't seem reasonable ... and adding that magic income to the required pot of 250k really does make it harder
There are very many people with Defined Benefit pensions who may have guaranteed incomes. Plus, the full state pension is £9500 a year approx, so most people will have some kind of guaranteed income.
My pension is 9709 per annum after commuting a tax free lump sum. I started receiving it at 42 and it 55 it will increase by the annual CPI in the intervening years. Current rough estimation is it worth £13200 at the moment . I’m paying into a workplace pension £ 120 Pw .
I think it is amazing that you find time and patience to answer to almost everybody. Your videos are very inspiring but sometimes you may be too optimistic. I constantly worry abour the future, can't afford finiacial adviser but when I ask people at work they don't seem to know much about pensions or to care. Most of them have no idea how much they have in their pension pot. At times I feel weird that I am researching this topic and saving (about 500 pounds monthly into my employer's pension) because most of my educated colleagues completely ignore this issue.
You’re not weird, you’re ahead of the game! And you’ll retire more effectively than your peers. Keep going, keep learning and enjoy the journey - your future self will thank you! 👍🏻👊🏻
You’re not weird, you’re ahead of the game! And you’ll retire more effectively than your peers. Keep going, keep learning and enjoy the journey - your future self will thank you! 👍🏻👊🏻
Do you think it’s worth it to save into a pension if you’ll never buy a home? With my salary buying a home is impossible. Pensions are great assuming you paid off your home. What you didn’t? It’s impossible with how rents and property costs are
Please address the massive drop in pension funds that has happened since January 2022. I have lost 26% over of my two funds in five months since mid January and the rate of loss has accelerated. I have been losing £800 a day for the past ten days on one of my pension funds. Be realistic. We have inflation, a war and soaring energy costs, plus Brexit effects. It could take many years for the funds to recoup what they have lost and I am at state retirement age and was wanting to retire in a year. I am very worried about this. Please provide analysis that is based in reality.
Watch this space, TC
@@MeaningfulMoneythis comment aged like fine wine!
Agreed. Please consider talking about the safest option. I have been thinking about investing for a year now and reading about but my main worry is not to lose the money I already have. With this attitude, is the likelihood of losing money with work pension provider lesser than with SIPP? Afterall these are gov backed companies? That's my naive thinking...
Sorry unfortunately my brother in law put heaps in his pension sacrificed his life to have a good retirement and died at 62 never saw it we need to enjoy life who knows what life has in store for us
I agree with your sentiment, Pam, and I’m sorry to hear of your loss. It’s about balance. Putting nothing away for the future makes as little sense as sacrificing everything for tomorrow and not enjoying today.
For everyone who unfortunately dies early, there are more who are living longer and need to be able to support themselves through a 30+ year retirement.
It's sad that your brother died so young but most won't.
Watching this at age 47 and about 15k in the pot. Will have my state pension and Army preserved pension payable at age 60 and 65. I'm at that point in my life where I'm starting to worry so going to start putting away to build that pot up. I don't really want to be working in the job i do pass 67.. 20 years to go 🤞
More power to you - I believe in you.👊🏻
Hi Pete, great video!,
I earn 50k per year and am on the 20- 40%tax threshold. Is it worth my next pay rise of £5000 (for example), taking a salary sacrifice and asking my employer to put the full £5000 into a SIPP account of my choice?. Could I also then do an extra 3% and then get them to match the 3%?. How can I explain that this benefits them as well?.
Loved this one Pete and your studio/office looks amazing.
Thanks bud - it’s taken a long time to get to this stage! Hope you’re well 👊🏻
@@MeaningfulMoney I am sat here wondering how on earth you present so well to camera without a single cut or stumble in your words.
Not a chance mate - it’s called an autocue!
And great editing by my comrade in arms£
Saw my doctor yesterday. High blood pressure, chest pains, high heart rate, high cholesterol and a sliding hernia. Went home and added another £200k to my life insurance so my wife and child are OK.
This morning the usual sausage, egg and bacon baguette with brown sauce and a builders’. I’m 58 and retirement isn’t a worry
@@springwood1331 if done right it’ll be lights out Vienna. My grandfather was my age when he went to
Cheerful. Take the BP meds and get some exercise. You'll have a stroke and spend 20 years in a wheelchair.
You haven't allowed for inflation. With inflation that extra £10k needed could turn out to be nearer £15k to £20k meaning you would actually need a pot of around £400k-£500k.
In general you try to accommodate inflation by reducing the return by 3%-ish, so if a pension returns 10% on average (some years are good, others are bad), you calculate growth using 10-3=7%.
@@AgileSnowWeasel So out guy here is talking about 6% average annual growth for 17 years. Are you saying the actual growth would be 9% and the 6% is a 'real terms' growth rate having allowed for inflation at 3%?
@@johnwitham5353 Yes, S&P500 returns 10% on average, FTSE World is 11% on average (shorter history though), and there are various risk profiles. So if you thought US Tech Stocks were still going to grow massively in the next decade you could get an S&P500 Tech ETF like IITU and get even more. At some point you switch from investment into speculation territory though, and it's down you how much risk you can stomach.
@@johnwitham5353 Obviously as you watch more of these videos you'll hear a lot about SIPPs, Stocks and Shares ISAs, and ETFs, and it turns out these are fairly simple to get into, and the risk is spread over lots of different companies. It's why a lot of people use SIPPs instead of pension companies, it reduces the fees (which I didn't mention).
You can manage on 25,000 a year no problem if you have no mortgage or dept .easy if your not on high status life ..
Hmm, scrimp now, be frugal, for something you may well never get the benefit on. I'm more trying to work out how I might live, but also spend all my assets and not leave anything behind.
Thanks for this, it has given me hope.
Would you recommend focusing on mortgage overpayments (to reduce the mortgage term) or paying extra into the work place pension? I can only realistically do one of these.
Can you not split the difference?
If you pay off £100 off the mortgage, what will you save?
If you pay £100 into your pension, what will you make?
If you are getting tax relief on your pension payments, I suspect the pension wins every time.
But make sure that you have a cash buffer or reserve should you need emergency funds.
I wish school would teach people real life economics. Some people die not even knowing what an index fund is.
Call me old school but I've never had the trust in pensions and their volatility. Pay off your mortgage quicker by using your savings into an offset mortgage. Then use your savings to buy one 2 bed flat outright and put it on rent. This rental along with your state pension should give you a yearly income of c£20k. If you're on your own or with a partner and you live in a 3+ bed house, either downsize and have extra capital or, convert the upstairs into a 2 bed flat and put that on rent as well. Keep the downstairs as your own 2 bed flat and emigrate! Better still, if your figures add up, go to an all inclusive resort in Egypt, Morocco, Turkey etc and it will cost you c£1.5k per month with nothing else to pay for. No food , gas, electric, water, etc. Your state pension and rental from the 2 bed flat will easily cover this. The rental you'll get from your converted 2 bed flat upstairs will be added income just building up! This is my plan for retirement.
I and my husband just sold one of our properties… any idea what to do with the capital?
I made some money in real estate then invest my profit into stocks but it is a tricky game and you need all the help you can get
Very true… stocks is the way to go, invested 200k last December and I am already up a million dollars… looking forward to next years analysis with my advisor… pretty excited!
Pls who is your advisor and how do I contact?
Does Emily have fairy wings and a swag bag hidden up her skirt 😮
@@ParishBleinof course you did 🙄
Fantastic video, so informative on Money and building wealth
Glad it was helpful!
What investment gives a 6% return? There is no risk free investment I know of that gives anything like that! If you gamble on the stock market you could loose all your money and conversely if your gamble pays off you could end up with more. However if you are a good investor who can beat the market then you don't need a pension.
That’s a reasonable long term average for a globally diversified portfolio of equities and bonds. You can buy these off the shelf easily enough, and the only way you’ll lose all your money in shares is if you invest in too few companies and they all go bust. Stay tuned for the video coming on Monday…
S and P 500 has averaged 10% over the last 95 years.
@@mrfixit2788 ok but what has been their average over the past 5-7 years?
The growth that was seen by pensions between the 90s and around 2010 skew the figures and won't be seen again now or in the future. The world economy is a ticking bomb with the multi trillion US debt, current wars, potential world wars etc. My advice? Invest into things with intrinsic value
Can’t help but think you were testing us with the ‘20% of 20 thousand pounds’ calculation
When it comes to dividens from a mutual fund ..how would people know they're getting the right amount? I ask as it's something I find difficult to get an answer about. Currently have about £7000 in an UBS S&P 500 fund and get about 27p to 40p 'distribution Reinvestment' each month...is that about right or should I be switching? Im about £800 up and happy with the low cost 0.09 fund...just find the dividend side hard work after seeing so many yotube videos. Really appreciate your channel as somwone who is really trying my best to make a better future ...a little too late of course.
So in 2019 I had a pension pot worth 67k in a low to medium risk fund. Current world affairs caused my pension to drop to 59k in 2021, a loss of 8k. "Don't worry", they say, it'll recover! So in March, it got back to 64k only for me to lose another 2k! So, is it really worth investing your pension and even continue contributing into it. At this rate, it'll take a further 5 years to get back what I've lost?😢
The past year has seen excellent returns in competent pension schemes. Your issue is that you've gone safely-safely and been affected by bond markets performing badly just as the high risk equities have performed as they always do, excellently (averaged over the long term).
Pension? I've lived abroad since I was 25ish. Many different countries. I'm 54 and have little savings...
I'm planning on dying as a retirement scheme.
Thanks for another great and informative video, i've shared with my work colleagues many of whom are significantly younger but figured the sooner they start, the less painful it's going to be. Unfortunately many of them joining the company far later in life than i are on a Dc pension whereas mine is part DC and part DB. Hopefully they will take the info on board.
Thanks for sharing, John. the more people hear this stuff the better, eh?! I appreciate your support...
That's good advice for sure but I have been sleep walking into my pension years and I'm 62 without a plan or any assets. Is there anything I can do?
He just speaks the obvious, offers nothing but hope with easy speak.. he may as well say just buy several lottery tickets a week. If you are in the position of basically nothing at 50 with no assets then sacrificing your remaining healthy years away by saving and enjoying nothing in the present for some elusive future that you may not even reach is bad advice.. reality is you will never save enough and the stress of worry achieving that may likely kill you.. so continue to live for now and enjoy life aa it happens.
Rather than worrying about money, concentrate mainly on keeping physically fit. This will then enable you to collect a decent wood pile and carry tarpaulin, cardboard etc for reasonable distances. Whilst you are still able to look at youtube, take some time to look at how to build make-shift shelters in the woods, and trap rabbits etc.
Having to leave the country (uk)!
Thankfully I retired at 50.
I just checked £264 a month at 6% annual interest over 17 years, it comes to £90,000. This guy said £12700. Confused 😢
Compound interest, the longer it has to compound the better.
I don't to disclose who I am but I am much like you having spent decades in "financial services" both as an "IFA" as well as a "product provider". Assuming that a person owns their home outright the MINIMUM that one person needs to have capital across wrappers like PPP/EPP, PEP/ISA etc is £500,000.0 Anyone with less than £500,000.0 is in for a very hard time.
Does that not depend on their spending though? If someone only needs to supplement their state pension by £10,000 a year then they wouldn’t need half a million.
@@MeaningfulMoney As ever the answer is not a binary. This is based on my own calculations but it is very accurate. Realistically its better to assume a value of £1.0M as the base value of capital which includes personal and corporate pension capital. Its not prudent to assume that the State benefits will be there and not pushed back again.
When the nhs forced this hormone uids my mum suffered from this 20 years ago nhs stopped forcing this type and leave more choices. So being told its you not the device seems like a I make money off selling this type of attitude from a business.
6% investment growth on pension is not guaranteed is it? Is it possible to find out investment growth for each pension provider in previous years? Where can I find this information?
No, not guaranteed. I use that figure as it’s a reasonable long term average for a moderately adventurous risk portfolio. You can find past performance information from pension and investment fund providers.
My pension pot was 103k on the 5th January
By yesterday is has rose to 106k
This today my 1000 contribution went in and it's 107 k
Excellent video
Would you advise people to put lump sums rather than spreading regular payments if they can't be disciplined. E.G at start of the year 5k in, then leave to grow.
I suggest they do whatever works best for them, but I’d suggest they work on their discipline too!
Putting a chunk of cash in and watching your investment dip 15 to 20% a few months later can be really demoralising. Drip feeding by Direct Debit a regular amount gets you pound cost averaging. One month you buy at top of market another you might buy at bottom but over time you'll be around the middle ground. It's not about timing the market but time in the market.
@@Stupot2024 It's a strategy I've seen advised elsewhere to.
So where do you get 6% and compound interest these days?
Here you go: Invest For Growth - Beat Inflation - Retire Well
ua-cam.com/video/z1IZ4UIlq_4/v-deo.html
It's incredibly simple. Learn as much about bitcoin as you can (100+ hours). Then, inevitably, buy as much as you can.
53 here. Aiming for 67 retirement. Do I (a) push for three years to clear mortgage then invest in work pension (40% salary sacrifice) for 11 years? or push a little less hard on the mortgage to free up some additional contributions to the pension for those three years?
there's no 6% savings rate mate and hasn't been in a while
Not once did I talk about savings. I’m talking about investing, mate. See here: ua-cam.com/video/z1IZ4UIlq_4/v-deo.htmlsi=-MTLCyadFNhrFxq_
I worked self-employed at construction all my life like a lot of people i know no pension in and out of work through people under cutting weather or simply no work about you where lucky scratching a wage or a week's work we were all in the same boat Bearley having enough to live on never mind saving its good advice if your a civil service or any government job nearly all construction workers hitting 60 no pension and penny less what's your advice
Not sure what advice I can give, Michael. Assuming you have no debt then I’m guessing you’re used to living within your means - a skill that will continue to serve you well. If you’re still working, then anything you can put away for the future will make that future brighter…
As long as you have some income coming in then that will buffer you. Have you ever thought about teaching what you know?
How many employers are going to match personal pension contributions? In my experience as an accountant in practice, small business owners are only in it for themselves. Public sector? - try asking the NHS/council etc. if they will match your pension contributions. Get real............!
I like this vid. Good insight.
Thank you! 🙏🏻
Hi Pete I started about 5 years ago now almost 59 still working I have managed to put away 2 cash ISA's and building up the next one. I have just started investing £260 per month with Vanguard FTSE Developed World EX UK equity fund SIPP. I have looked at my work pension it seems the DB pension I get is forecasted £6885. Is there anything else I can do to continue to improve my financial situation. My retirement date is 2032 I am so glad I have taken action the last few years. I was new to investing so I learnt about investing in a low cost global index fund. I dont know anymore than this about investing
You don’t really need to know any more than that, Louise! You could consider a personal pension alongside your work pension to get tax relief in your contributions, perhaps?
How do you (me) go about finding an old pension from a workplace that no longer exists. So even if I had the address of that company at the time , there's no one to contact to find out who the pension provider was with and I have no payslips to look at. I have asked a few ex colleagues and they don't know either. Also on the government website I can't find the company.
I worked at coast stores ltd in the UK. Coast in name only does still exist, but it has entirely different owners.
I am in the NHS pension scheme and can retire in 2 years. Is it worth me increasing my NHS pension contributions out of my wages at this late date?
I'll do myself in before I get to old age. So lets party! 🎉😂
Great video Pete and hopefully it helps a few out there realise that pensions are the best way to save long term 👍🏻
Salary sacrifice too is a thing of beauty if you get your employer to add their NI saving in too!!
Dead right, Matt - i should have mentioned that, perhaps, though I have covered it in other videos. Thanks for watching and commenting!
Great content and a new sub, how about a video on picking the best personal pension?
Hiya - thanks for joining us! I have to be VERY careful talking about specific pension plans because to do so could constitute advice, and as I am a regulated adviser, that could get me into trouble! I can, however, talk about things to look for in a pension when choosing, so I’ll bear that in mind. Meanwhile, search the channel - there are hundreds of videos!
Very inspiring
Pete, another informative video, thanks for sharing. I was not a fan of pensions in my thirties, I incorrectly assumed that when you and your wife dies all the money paid in is lost - After being educated about this I am now doing everything I can to make up for it now. Something I would appreciate you covering in a future video please is what happens to your pension at the age of 75? If the value is above a certain amount is there additional tax to pay? I appreciate that would be a nice problem to have and I can live in hope :)
Hi Kevin! Really, the only thing that happens at 75 is a final test against the Lifetime Allowance. The LTA is currently £1,073,100 so yes, having a pension over that amount is a nice problem to have! I did a video on how this works here: ua-cam.com/video/7kErytIUmeo/v-deo.html
@@MeaningfulMoney Many thanks for explaining Pete - I thought it was more complex than that. I can say with some certainty I am not going to have that problem but that’s good to know.
i have recently reached pension age 66 i am autistic and have been on benifits for 20 years
do you have any advice for me.
Hi Stephen. Really sorry but I can’t advise here as I’d be breaking about a million rules. I wish you well…
@@MeaningfulMoney i understand thanks for the reply.
And where do you get 6% growth?
Not difficult over the past 20 years or so - broadly diversified global portfolio.
Gold v pension ?
Thats an impossible comparison as they’re completely different things! Gold is an asset; a pension is a tax account. You can hold gold IN a pension, for example, though not physical bullion unless it’s a SIPP.
One of the good guys.
Aw, shucks- thanks Winston! 👍🏻
This is terrible that people lose old pension pots because they forgot about them from an old employer in their 20s. All pensions are linked to national insurance number for tax relief. The government should provide a .gov website where you enter your ni number and some details to see all pension pots
It is supposed to be coming, Sheraz. It’s called the Pensions Dashboard and has been delayed several times.
Theres no guarantee that your pension is going to be giving you a decent yearly percentage though to get to that figure.. What happens if the banks fail within the next 17 years which is becoming more likely with the debt that the governments have and dont tell me that theyre protected because if it all fails nobody will get anything 😢
I'm 54 but no pension. This year I'm going to inherit 40k what's the best way to invest it?
I’d use your pension allowance if you can. How much you can put in depends on your earnings. Seek advice if you’re not sure
@@MeaningfulMoney I'm not working at the moment due to ill health
Ok, sorry to hear that. 😞
If you have no earnings this tax year (since April 6th 2023) then the maximum you can put into a pension is £2880, which will be made up to £3,600 by Government money. Consider ISAs for the rest, but again, seek advice if you’re not sure.
@@MeaningfulMoney thank you, I appreciate it
Is it worth starting a private pension in your 50s or investing in stocks & shares ?
Yes, absolutely. You’ll probably live till you’re 90, so that’s a good long investing horizon!
Is now a good time to invest? It looks to much like a bubble to me?
Timing the market is a fool’s errand. There is no ‘good’ time to invest. Instead it should be done regularly, over time, pound cost averaging to smooth out the ups and downs. Waiting for the right time means that you’ll probably never invest at all, and miss out on years of growth.
we’re pushing to get our mortgage done in the next couple of years, then hopefully push extra hard on saving for retirement (been saving some but not as much as possible). Question - woudl you put all/most into pension contributions as a high tax payer to get most out of tax relief, or split between pension and ISA (realise ISA is already net of tax from salary but may be more flexible when looking at income and minimising tax exposure there?)
Getting a lodger has made a big difference to me
Too late for 55 year old wanting to retire in 5 or so years?
oh God I am 61! now depressed
Still, NEVER too late to make a difference. Anything is better than nothing, right?
@@MeaningfulMoney Absolutely Pete I do agree!
Mate of mine 52 no pension. Sad
Literally me self employed too time to start bro
Worked in uk 86 to 01.Living abroad since.Am i entitled to some pension when i,m 66,67?
Quite probably. You’ll have had a National Insurance number while you worked here, so use that on the gov.uk website to find out if you have some pension coming
As some in my mid-thirties, how reliant do you think I should be on recieving a state pension?
I'd like to retire early so I've started hitting the pension contributions a bit harder to fill the gap between retirement and when I can receive state pension, but if the pension suddenly becomes means tested or similar then that's really going the pull the rug under any early retirement plans.
I have no reason to believe that the state pension won’t be there in future. I also don’t think it will all become means tested, though maybe some of it will. I firmly believe that you can only plan with what you know, and trying to second guess the future is a fool’s errand. So I would plan as if the state pension will be there in its current form, and plan *past* that, so that ideally the state pension is mere icing on the cake.
There are two types of Pensioners IMO; those dependent on the State Pension and benefits and those not. To be able to retire early 'comfortably', you'll need to be one of the latter, so look on the State Pension as your 4-weekly 'bonus'.
Also be aware that it's taxed.
If it gets means tested that will only mean that you lose it if you've got enough money to live on anyway. A bit like the way they've taken child benefit off people earning above a certain amount. In other words your best bet is to save hard for your pension regardless and feel lucky if the state pension is part of it.
Is my nhs pension still any good on the 2015 scheme? I cant get full benefit until im 68. Ive started an investment isa to try and invest for 23 years to offset me leaving early
Yes, Matt - the NHS pension is still a brilliant scheme, even in its 2015 form. But yes, of you want to retire earlier than state pension age, then you’ll have to save in either an ISA or an ordinary DC pension to have money you can draw from. Good luck!
@@MeaningfulMoney thanks mate. I nearly stopped my pension to go into property when it changed from the 1995 scheme but i deemed it too risky. I think if i invest for 23 years i can just about off set retiring at 60 ( 8 years early)
How do you 6%? Is it too late if you are already in your sixties?
Never too late, but you need to learn the basics of investing. Plenty of videos on this channel and others.
If someone did not even contribute for the state pension, that’s a real trouble. Feel bad for that people 😔
What is the maximum I can contribute to offset tax as a sole trader?
40 K a year I believe
Video is titled "... With Nothing Saved..." but then goes on assume you DO have something saved in the form of long-forgotten DC/DB pensions! Just be open and honest and say the sad truth is if you've nowt saved at age 55 or 60 then, short of a miracle, you will more than likely live a miserable old age in penury!
Or…maybe it’s true that many of us THINK we have nothing saved but actually do have old pensions kicking around that we’ve forgotten about. Maybe consider that people might be encouraged to do something after watching a video like this and that their future will be better as a result? I hope so anyway…