What is the average pension pot in the UK ? Is it enough to live on ? How do I compare?
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- Опубліковано 21 вер 2024
- There is currently a lot of doubt as to the future of the UK state pension, therefore I believe it has never been more important to invest in a private pension.
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Cashed my pension at 55 I live off 10k a year .no debts it can bi done 😮
That’s awesome to hear! It defo can be done if you own your own house, have no debt and are disciplined with your lifestyle choices.
Keep doing your thing pal and enjoy your retirement! 😁
@@JacobBurchell I pay £6720 in rent, leaves me £150 per month, then I have over £121 rates per month, despite having 'A' level mathematics I find your statement 'ill thought out' with no factual basis.
@@Normanskie hey, which statement are you referring to?
Its your choice over 6000 rent relocation to north of england 800 rent and dont live beyond your means .it was well thought out cos i made it 🤣
Like I said Jacob no debts
Median rather average would be more revealing. Averages are easily skewed.
Agreed, but not sure that many content creators understand the difference
That was my first thought on seeing the title, average doesn't mean s**t in or median, for me it throws the whole integrity of this piece straight into the bin...
A little disrespectful to the OP. While I agree median is better, average is still useful in terms of the point he is making particularly for the older categories @@pilier3
I also don’t care what the median/average is. Who aims to be average? Sounds dull. Let’s aim to be above average. That’s actual ambition and is where the magic happens.
To radically change the UK State Pension system along the lines of phasing it out or similar, would take decades to implement.
If we look around the world for any guidance on this, the primary example would probably be Australia. They have a Universal compulsory system called Superannuation. This was effectively born in the early 1990s, but essentially exists separately to state (or aged) pensions anyway. Overall, Australia uses a system of assessing assets as well as income, and Aged pension is only affected if you have income and assets above certain thresholds. But superannuation payments can count towards this. So it can be said that Aged Pension is means tested to a degree, however the thresholds referred to are calculated to ensure that no pensioners earn below Australia’s equivalent minimum wage levels. And believe me even their government will not mess with that as it was a long fought battle by their unions to achieve it.
Bear in mind that the UKs’ minimum wage for a full time worker is around £22k. A pensioner here would have to have a pension pot well in excess of £200k for an annual income to go above that along with the current “full” state pension of around £11.5k. As you have pointed out, the average pot for someone approaching pension age is only about £107k.
The Uk does have a non compulsory analogous system called Auto Enrolment Workplace Pensions. Although this has existed for about 12 years or so now, and is widely adopted, it for the most part has only built small to modest pension pots for its members. One reason being, most workers - and indeed employers - don't really put enough into it. As you have pointed out, the average auto enrolment pension is around £20k. That being said, the average pension pot as noted (Workplace or otherwise) for the over 50s is actually over £107k. This could indeed play a part in means testing. However, and this is the crowning turd in the water pipe for any government thinking about doing such a thing, the UK State Pension is in effect, “a social contract”. Yes it is defined as a benefit, but its entitlement is based on a qualifying number of years of NI contributions. There would have to be a highly announced separation point whereby NI contributions would either cease, or play a lesser role counting towards entitlement for “full” state pension. And believe me, such a change would probably be the single most controversial state fiscal reform since the introduction of the poll tax in the 80s. And those old enough will know what happened there.
Although I agree there will be some changes, in my estimation, these changes will be predominantly around the Triple Lock element, number of qualifying years changing, and additional extension to the retirement age. But all in all, the state pension is not going anywhere in the intermediate future.
Interesting insight.
Great well thought out post thank you.
I agree any government telling people after a lifetime of paying NI that they were not getting a state pension would be kicked out
@@fionnaighhessey131 100%. Older population means more older voters means destroy pensions= destroy re-election.
i am retired at the moment , had to wait a year extra for it , wife has to wait 7 years for hers regarding state pension , paid way over the minimum NI contributions , you will find as you get older ,you wont need thousands of pounds , unless of course you have major health issues ,fortunately i am relatively healthy ,but you don`t know whats round the corner, with this grasping government who knows what will happen to all pensions , in my opinion pensions should not be taxed at all.
I have a DB pension of £36.4k, and my partner has one of £29k, both of which are index-linked. I also have a SIPP worth around £100k, along with ISAs and a GIA collectively valued at around £650k. We are debt-free and both retired at 58. Now at 60, we’re enjoying the freedom that retirement brings. We feel fortunate to have DB pensions, especially as such schemes are in terminal decline.
Sounds like you are set up for a wonderful retirement 👏🏻👏🏻👏🏻 congrats and all the best to you!!
One comment I would make about work placed pensions is about allocation. Make sure the investments meet your needs. It's so easy to leave the investments in the 'default' option which normally includes bonds and non-equities. These one option fits all does not work well for everyone. For example; a 20 year old doesn't need to be risk averse. They can invest solely in growth stocks and ride the wave for 40 years.
Completely agree, and I changed my allocation a few years back to 100% stocks as I read this advice in a few different places and thought it made sense as I’m such a long way from retirement.
Thanks so much for watching and commenting 😁
@@JacobBurchell thank goodness you did this.....before Truss budget destroyed bonds.
This comment ☝️
Tip: Don't wait until state pension age to retire (67). Why? Because the average **healthy** life expectancy in the UK is age 63. Do you really want to retire after your health starts to deteriorate? Of course not. Aim to retire as early as possible so you can have at least a decade or so of healthy retirement.
Retired at 53 with £500k ISA. I did the ISA thing because with a pension you'll pay whatever the future tax rate is. My ISA generates a £32,500 a year income from dividends, I pay zero tax. I have my workplace pensions consolidated into one pension, which I can still take if I need to, or pass it on tax free as part of inheritance. At 55 I could use my private pension (£300k pot) to buy an annuity to add another £18k or so a year (depending on interest rates at the time). Then at 67, another £11k a year, or whatever state pension will be at the time.
Early retirement is exactly what I am aiming for! 👍🏻 there’s no way I can stay in full time employment until 67, just to have a few years of retirement.
That’s one of the reasons I created this channel, to create another income stream so I’m not so reliant on my day job.
Thanks for watching! 😁
Few are as fortunate to have ever had a high enough working income to be able to achieve that level of financial security. Well done though.
Here in the US, my wife and I, on a $145,000 (at the end of our careers) salary between us, we were able to save approximately 1.3 million dollars in investments and cash and another $650,000 home with no mortgage, no debt and no bills. She retired 4.5 years ago at 58 and I retired 1.5 years ago at 61. My government pension is approximately $43,000 a year from my work not including Social Security. Invest as much as you can for as long as you can and leave it alone!
The annoying thing in all this is that your modest private pension may well mean you not qualify for a state pension and indeed any other additional supplement that a state pension individual can claim. You may find they get additional top ups that mean they exceed the future 18k you might expect. Also inflation will affect things, redundancy could impact your aims along with a great many things.
Thanks for sharing Jacob. I'm 38 and have about 265k in my private pension, been lucky enough to have had a decent employer and pension scheme for ~14 years. About 125k of that balance is pure investment growth. Biggest factors for me were starting early and switching from the default options to better 100% equity/stock funds & trackers - plus getting good pay increases over time (I've contributed about 38k, my employer over 100k over the years, so I'm aware it's been quite generous and how lucky I am - for the first few years my employer contributed 10% and I contributed nothing!) I hope to retire early enough to enjoy it, none of us know how long we have.
Thank you for watching! 😁
It’s actually incredible when you work out how much you’ve contributed compared to what your employer has + how much investment growth has increased the total. A lot of it is just free money 😆 PLUS think of the tax savings on top as salary sacrifice reduces your overall tax bill.
I hope we can both retire early so we can have many happy years in retirement 😁
That’s a very good amount, I’ve got slightly more than you but I’m 56, I’ve also had good growth from my funds, but I’ve left them in the default funds.
The reasons mine has reached that amount is my employer has been putting in 9% of my wage & Ive been paying in 6%, the best thing about my company ran private pension are the low annual charges of 0.3%.
Keep adding to it and let it grow. You have decades to become the millionaire you are bound to be!
A lot of people assume they will get full state pension when they retire but forget that they / their company opted out of SERPS back in the 80's to save on NI contributions.
Its well worth checking and if appropriate top it up
If you're getting £11.5k state benefit and £5k private pension and assuming you don't take 25% tax free lump sum you'll pay 20% tax on £2,750 or £550. That leave you with approx £15.5k.
Never have I been more relieved that I had company pension and own our home
Me too, I struggled to pay into my occupational pension in the early days but I stayed in and in later years I bought a few extra years I was initialled to buy do to joining the scheme later. This only boosted my pension by about £5 a month but I do believe it was worth it. I have so far drawn this pension for 15 years I record in the next 2years I will be in profit and as I am responsibly fit and well I should end up in profit from that additional payment.
I cashed out my pensions in full at 55, and self manage, much better returns DIY
This genuinely doesn’t make any sense.
If you care explain what you mean.
Sounds like the start of a scam thread @@yesno9834
@@yesno9834 I paid the minimum into my workplace pensions and put most of the money into my ISA and managed it myself. I averaged 15% annual gains, and kept compounding. Many pensions providers are overly cautious so generate moderate gains, and as you get older they move you into less risky assets (bonds) with moderate yields.
My company pension does pay a guaranteed percentage annuity at retirement
I paid in approximately 275k over my career and my employer contributed 3x that
I ended up with about 2.5m in the pot and a 5.9% annual return, thus 147k yearly
This is Swiss francs, not pounds
Not sure if I misunderstood at the end but you would need to live off 18k for at least 12years if you drew it at 55 . Also your contributions need to be raised inline with inflation for the final figures to have the same value when you retire
If they get rid of state pension that i have been promised. Then I want all my national insurance contributions back. I kept my end of the deal so wh the eff shouldn't i get my pension?
Informative video, great - Retired 55, 57 now due to saving hard and a bit of luck. Its a balance of money over time. Yes I would have loads more at 70 but how many good years have I got left, would I want to travel at 70? Very happy with my choice to go early, can’t go a world cruise but certainly get my annual holiday in 🙂
Congrats on your early retirement! I’m aiming for something similar to you, like said you would have loads more money if you delayed it, but making the most of your healthy years is far more important than a bigger pot of money.
Good luck to you and thank you for watching 😁
Great video Jacob, I have about 90k in two private pensions...but...I'm 52. The first one is frozen and only increases if stocks go up. The second is my current employer pension in which they pay a measly 3% and I pay 15% (wish they would match it!) so with tax relief I'm putting about £850 per month in total only because I had a wake up call at how little I would have in retirement so substantially increased it. Now I don't miss it so all's good. Seems like you're very sensible and will have a good retirement well done young man 👏
Well done to you too! You’ve still got plenty of time to top your pension up, shame your employer only pays in 3% though!
So many people tell me ‘I could never afford 10% into my pension’ but it’s amazing how quickly you get used to not having that money.
@arnoldrimmer9161 I find this interesting, as I too had a wake up call a couple of years ago. My question if you don’t mind answering. What triggered the wake up call, and at what age were you? I’m just curious as I think this is such a familiar story in the UK.
@@Trevor-iy6db sure no problem. It was when I turned 50 and realised I didn't under any circumstances want to struggle in my retirement which would only be in 17 years time. I started doing some research and soon came to the conclusion I would need a pot of around 250-300k to give me a yearly income of around 21k on top of my state pension (if it's still around and I qualify) which should bring it to 32k ish, which should be enough for me to have a fairly decent retirement. That worked out roughly to be a pension contribution of around 850 ish per month. I know it sounds a lot but take out my company's bit and tax relief meant I was paying around 575. I've also been pushing my company to salary sacrifice my contributions which would add another 1k ish per year for doing absolutely nothing. Everyone wins even my company as they pay less national insurance. Sorry for the essay but pensions are important but so many people don't even bother and hope the state will look after them but unfortunately that's not the case. It's never really too late to start saving, especially in you've got a good employer who will match any contributions you make. Cheers
@@arnoldrimmer9161 thanks for taking the time to explain further, I do similar numbers with 820 per month, off the back of realising the shortfall I was heading towards. I also have 3 young children, so I’m conscious that when the time is right I need to impart this knowledge onto them. So I’m always keen to hear other people’s stories. It’s my belief that UK citizens are sleep walking into a serious pensions crisis. So always keen to learn from people of all ages and their experiences. Thanks again, hope everything works out as you’ve planned 👍.
@@Trevor-iy6db I completely agree the majority of people have no idea what they're sleep walking into. All three of my older siblings have no private pension whatsoever and are not far off retiring. One of them is relying on downsizing and using the equity to help in retirement, that's all well and good if he had 500k but realistically it's more like 50-100k which won't get him very far unfortunately.
Jacob,
You are on a better track than most people but one thing I don't think you have allowed for is inflation. What will inflation do to the projections. £40000 might sound great now but may be a paltry sum when you retire. One idea for you which has served me well is to build up an ISA. Admittedly the money you put in is coming from taxed income but when you decide to access an income from it, it will be completely tax free. A lot more flexible than a pension plus the capital does not die with you. I think you would be very capable of self managing a stocks and shares ISA. As I said it has served me well and have been retired for 10 years. Hope this gives you food for thought.
Raymond, thanks for the great comment.
I already have a stocks and shares ISA and I do exactly as you have said alongside what I also save in my pension.
My aim is to retire earlier than when my pension is accessible, therefore the ISA + dividends generated from it could be what funds those early years of retirement.
Thanks for watching and providing some great advice 😁
Your doing well to get those figures at your age, however inflation will be a bit of a killer, and the spending power of those figures will decrease over time. Personally my pension pot at 46 is 0! But…. Currently have 5 rental properties, that we are planning to increase to 10 over the next 3-4 years. The rent is all being reinvested to pay these off and run them.then will give an inflation linked income for life, with the bonus of a decent inheritance for the kids.
You have forgotten you have also received 20% contribution from the government.
And can also reclaim back additional relief if you’re a higher/additional rate tax payer.
One way to grow it over time is if you get promoted put a chunk of any pay rise % into the pension as opposed to pure lifestyle creep (ie Lidl crisps to kettle chips 😂).
Lidl crisps to Kettle chips! 🤣🤣🤣 don’t expose me like that! 🤣
You’re absolutely right, lifestyle creep is one of the worst things you can get caught in. If you can be disciplined enough to keep everything the same whilst you earn more money then you should be able to get ahead of everyone else 👍🏻
Unsure how that annual number is generated. A nearly 10% withdrawal rate on the 1.1million is far too high. It should be closer to 4%.
06.30 you imply that you'd be taxed on the whole 16k, you'd only be taxed on the money over the tax threshold so it would be significantly less than your quoted 2k
Agreed, that’s what happens when you don’t read from a script 😆
@@JacobBurchellOops, respect for owning up, most just ignore 👍
@@dan3885 I’m here for all the advice people give me, I’m still incredibly new to being on UA-cam and making videos so it’s easy to overlook things or miss-speak on camera 👍🏻
I am 51 and got about 121k in pot but also a defined benefit one thats worth about 90 a week at age 60. between me and employer its 30% i think. I up my contribution a bit every time i get a rise and just hope for best that i can stop in 6 or 7 years. I dont need anywhere near what those annual figures they quote and my idea of acomfortable life and theirs must be hugely different!
In 40 years time, we will have very advanced AI, robotics, automation etc. The wealth created will be extraordinary. I’d be shocked if there isn’t an even more generous social security system.
Let’s hope so, with all of the progress in tech over the last decade or so our lives should be easier already surely? It depends where all of this extra wealth goes 😊
Or the automation will drastically reduce headcounts and therefore tax revenue.
I'm 57, work in IT (private sector) and have saved £750k over the last 27 years. Never started a pension until I was 30 because I was so skint, but then I started earning decent lolly, enabling me to save. Hoping to retire fairly comfortably at 61. Wife is 54 but only has £235k saved up - that said, she may eventually inherit a fair whack, being an only child.
You should be able to retire comfortably on £1m, even if you had your money invested with an 8% annual return (less than expected from the S&P500), you could still take out £4,000 per month and see your principle grow. You could take out £6,000 per month and you'd only run out of money after 24 years. Ps. I'm allowing for a 3% increase in spending per year to keep up with inflation.
I’ve been paying as much as I can into my pension since my mid-30s. At 53 I have £1.2m plus a £5k final salary scheme that will pay from age 57. My wife is 50 and only has £200k. Currently I pay £60k pa into mine and my wife pays £20k into hers. In a couple of years my son finishes his A levels and at that point my wife and I will retire. Between our main home and a holiday home we have £1m of property with both mortgages paid off too. Even from my mid-30s my assumption was always that state pension may disappear and I targeted being financially independent without it. I’d still like to receive it obviously but should be fine without it.
@@davidwhiteman4649 You're obviously very highly paid and you have invested your money very well. £60k is more than most people even earn, so consider yourself very fortunate to be able to invest this. Even your wife is building up funds nicely - £20k is still a very substantial sum to be contributing to the pension. No idea what your job is, but my guess is that you must be on a reference salary of £150-200k.
@@Harry-TramAnh Thanks. I'm cautious by nature, so we'll see what happens. My aim is a private pension of £40k, and this should be achievable.
@@tancreddehauteville764 For sure, enjoy it!
I'm 57 next week, I have 41 years contribution to state pension, I have a private sector DB pension which as of May 2024 will pay me at age 65 £28k per annum, this will rise with inflation capped to 5%. The HMRC multiplies the £28k by 20 give an approx pot size eg £560k. I have a public sector DB pension that as of 2024 is £11k at age 60, so 20x = £220k. I also have a Fidelity SIPP that is £820k. I know I'm very fortunate to have so much in pensions but I've worked bloody hard and salary sacrificed down to nat min wage for c18 years to reach this point ie early retirement. A most timely redundancy payment will keep me until I'm 60/61 along with my cash/ss ISA £813K and property rental income. I don't have children or siblings so when my time is called its all going to my my favourite charities.
You think you worked hard? I've worked shifts for 20 years and 55 60hrs a week for 35 years, I only have 260k at age 61. Worked hard doing what exactly?
@@applanateearth586it's not a contest; my Dad worked 70 hours a week (10 hour days, 7 days a week, incl. nights in winter) and only had a state pension, but you know what, he was happy as he loved his job. If he heard someone worked less and was worth more than him, he would have been happy for them if that's what made them happy
Unfortunately, it's all 'academic' by the time one reaches your age. You needed to be in such a financial position at 25-30 years old - this I believe is the most important part of the equation, which is always missed out by the gurus.
By the way, well done on the level of pension you have achieved!
That's a health amount and I'm not surprised. At your age you likely benefited from some of the best stock market gains with respect to your SIPP. My dad is in his early 70s and got to something like £1.5m in SIPPs/ISAs as well as a DB pension from a job in the 80s and 90s.
Fancy adopting me?
If you are young enough I would suggest going high risk into stocks and shares (eg global tracker fund), keeping out of the default pension that employer pension schemes but you into. At least understand how the default fund works and the fees associated with it. With time on your side you can afford to take bigger risks.
I’m happy to say I am invested 100% in global stocks, I opted out of the default option early on and it’s been a great decision so far 👍🏻
The median age ( better than the average) for a cancer diagnosis is 66 ( coincidentally). The chances of a diagnosis is 50:50.
One of the many reasons I want to retire as soon as I possibly can.
Thanks for watching!
Thankfully I've a defined benefits pension though work lgps and a sipp I've been paying into for years.
Regularly check that your DB scheme can match the annuity market. One of my workplace pensions is a DB scheme (on of UK's oldest and biggest). It's £100k but the forecast is £4,500/yr income from it. I could cash it in and buy an annuity from the market and get £6,000/yr.
Well if average is 20k, I won’t be the only one wondering what the hell went wrong.
Then again who said I would make it to retirement age, 67 is too far off.
Take care all M.
Your right there’s absolutely not guarantees that we make it to retirement, but we have to think positively, hope for the best and plan for the future regardless.
Good luck to yourself and thanks for watching! 👍🏻
Without stating figures apart from being almost 55 I have civil service pension , small with a pension of around 2/3s my salary at 67 and a small lump sum . Also have a free standing AVC I started at 21 , they don’t exist anymore I believe . Also hopefully state pension and quite a large S&S ISA . Fingers crossed at 67 I’ll be able to retire on roughly double my salary . So question for me is how much of this am I willing to sacrifice to finish work earlier, thats what I need to work out
It’s a tough bet, but the longer you stay in work the more you are gambling with how many healthy years you’ll have in retirement from 67 onwards, compared with having a bit less money but more certainty on having some healthy years to enjoy, say if you retired at 60.
Only you can make that judgement, you just have to do what you feel is best for you at the time 👍🏻
I am lucky with a company DB pension, i pay £200 in per month and the company pay in £600 per month,. I do fear Rachael Reeves will go for pension tax free lump sums and have us pay tax on them when she does Octobers budget. Thanks nice vlog.
£200 in and £600 from your company is a fantastic deal, maybe the best Iv heard of! 😆 I do fear the same though, I think Reeves will defo be looking to make some sort of change when she has the chance.
Thanks very much for watching! 😁
Just to make you aware. You can probably take out from your pension as a 'partial transfer' into a SIPP of your choice. It is often cheaper in terms of charges and gives you much more control over what you're invested in. Check you don't lose any benefits or have, if any, costs. Do your own research if it is suitable.
Thanks for the advice, I’ll take a look into it 👍🏻
@@JacobBurchellYes look at your pension provider’s management fee. If its low ie 0.15-0.3% and you’re happy with it, great. But for example my current employer use provider Royal London and their fee is 0.75%. Whereas i could transfer that into a SIPP and pay far less, which will translate into £10s thousands over a 20+ year period. InvestEngine are 0.15% plus any ETF/fund cost, and i’m waiting for TRADING 212 to announce their SIPP any day. Also rumoured to be 0.15%. Then for example if you put money into a global ETF like Vanguard’s VEVE you pay 0.15% for the overall mgmt fee, 0.12% for the ETF charge, total 0.27%. Far cheaper than many pension providers.
Sad fact is that most European countries run state pensions that provide final salary level of income. Uk is no where near this.😮
@@happychappy7115 citizens in those European countries also contribute a lot more percentage wise to those pension schemes than we do in the UK so no surprise the end result is better.
I'm 31 earn 35k and have a pot value of 105k. I contribute a total of 40% to my pension. 15% from employer 25% from myself. The reason im able to do it is i top up my income with lodger income and got used to living on less. I drive a car worth £2k and my home is 280k with 130k mortgage.
Also, dont be discouraged anyone who reads any posts here as its very likely the people who watch such videos have more as they are interested in the subject.
Getting used to living your life on FAR less than you earn is a true life hack.
Iv done the same for many years, my income pays all our bills with some left over, the wife’s income is completely free to save/invest 😁
Thanks for watching!
2 properties bought in London years ago and payed off by tenants can generate 50k rent a year
Do you really need to pay into your pension all your life ?
I think its inefficient
Fair play to you! I don’t think many people can afford 2 houses in London at today’s prices unfortunately.
A private pension is an efficient way for the average person to save for their retirement, especially when you consider the tax benefits and the money your employer adds on your behalf too 👍🏻
Thanks for watching! 😁
You understand zero about pensions if you think they’re inefficient.
It’s laughable you’re highlighting buying two properties in London which are fully paid off when the majority of the population can’t even get their foot on the properly ladder everywhere else in the UK.
Completely delusional.
@yesno9834 i came to the uk as a student in 2000 with £30 in my pocket. I couldn't buy anything. But ive saved up and bought my first house with a minimum deposit. I ve used capital growth to remortgage to get a second one.
All been payed off mainly by tenants.
It means ive spent around 20k in total to get 50k pension.
I agree that house prices in london are very different now
But salaries too
There are lots of opportunities outside of London where same scenario can be used.
In addition i have a pension pot as well. Just as a backup. But efficiency wise its not as good.
⚠️ Handing over a £100K pension pot to an annuity provider to recieve £4K to £5K annual income means that it would take 20 to 25 years just to get your original capital back assuming you were fortunate enough to live that long.
Annuity providers are the real winners here 🤦🏼♂️
You should get much more than 4% from an annuity. Well at least I am being offered much more and that is despite planning on retiring early.
On an income drawdown the recommended level is a measly 4%!
Pension Bs quote of 100k pot would give a income of 5k a year sounds like a annuity
And imo anyone who sells there pension pot for a monthly income is round the bend
Draw down is much better
You can draw out more when your younger and less when you get older and your needing less money
If you're in flexible drawdown and using the 4% rule you'd get even less: £4k pa for each £100k in your pot.
Good plan. In 30 years, the same amount of money now won’t have the same buying power. Keep that in mind.
You may lose your job. You may find a much higher paid job. Be prepared.
There will be multiple crashes/downturns. Don’t panic! What you do is always have spare cash and either put more into your private pension or buy stocks. Always do this and your money will work harder for you.
Last. Don’t forget to have fun and spend it along the way. Life is short. Enjoy it now and into the future.
I believe the pension will always exist. If they do change things, which is strange as they don’t seem to cut other unnecessary spending, you’ll get maybe 50% pension from the government plus your private pension, which is far fairer than getting nothing. Don’t rely on it, but expect it.
I love your Black country accent 😂
Well thank you! 🤣 it’s not every day someone says that… in fact it might be the first time anyone has ever said that 🤣
Thanks for watching and commenting, I really appreciate it!
A pension pot is like a snowball, the bigger it is the more snow it gathers per rotation, each rotation can be classed as a year.
Absolutely! The bigger the snowball gets, the less effort that is required for it to keep rotating and for it to keep collecting more and more snow... the beauty of the compound effect.
I am satisfied with the pension I live on now. I am concerned that others wouldn't even listen to this because they prefer to pretend that something will work out of they will be rescued by luck or good fortune. Even more concerning is that people think that the state will house them.
Enjoyed watching your video Jacob. One very important thing to factor in is the dreaded inflation eating away at your money. 20k when you are 55 years old is equivalent to around 10k in today’s money when you add 3% inflation each year.
I completely get your point and I 100% agree. I simply presented the data that the pension site presented to me but I’m aware inflation is a major factor 👍🏻 what I also didn’t take into consideration is any future pay rises that I may get, and promotion that would hopefully increase my contributions, which may counter the effect of inflation slightly.
Thanks for watching and commenting! 😁
Great content. I'm 31, no match scheme at work so only the standard going in which is about 180 a month. Only earned over 30k once. My workplace (NEST) just ticked over 20k this week. From last June to this just it's done 31% after fees and 17.4% annualised over the last 10 years. It's incredible how quickly your pot can grow when invested properly. My private pot is just under 15k I've only been doing it 5 years with about 200 a month going in.
Thanks pal I really appreaciate you watching and commenting 😁
Just keep at it and increase your contributions when you can. Like you said it’s incredible how much it can grow over time with relatively small amounts just going in regularly 👍🏻
I don't think that you have allowed for inflation , i have been saving into a private pension for 43 years i don't think that Labour will allow you to Retire comfortably , i had a similar mount at your age , until Gordon Brown decimated the Pension industry for everyone . i lost 40% of my fund value ,in 24 hours the industry alone lost 250billion pounds . I have persevered with my pension but i will never recover the Losses . you have to start early with pensions and like you invest as much as you can. Lets hope that La bour do not intervene with yours
All we can do is look after what is in our control and try not to worry about what isn’t… and with a bit of luck we will both be ok when it comes to retirement 🤞🏻
Thanks for watching and commenting!
Gold plated public sector worker here, although I do pay into a SIPP and have done for 18 years. At age 45 combined worth £550k. Consider going public sector if your line of work allows it. I've done nearly 22 years in it.
Not all occupations can go into the public sector. Why do you have a SIPP when you already get a defined benefit pension? Seems odd to me.
Why do Public Sector workers get more beneficial pension arrangements?
@@denisescally7090 Final or Average Salary pensions which are meant to compensate for less 'lifetime income' compared to the private sector
@@tancreddehauteville764 I worked a year in the private sector prior to my current job and made the decision to transfer it into a SIPP about 18 years ago. Partly it is a 'backup' in case the public sector scheme I'm part of 'fails', although that is quite unlikely. It's also to help retire as early as possible an beneft from the tax free contributions. The only downside is I'll have to wait until age 58 until I can access the SIPP - public sector one I can take in my 50s but at a reduced rate.
@@denisescally7090 By and large public sector pay is less than private sector.
I'm 58 I've got £85k in my own SIPP and I have a DB pension that will allegedly pay out £16k a year index linked if I work till 65 I still pay into the SIPP and also an ISA every month and I also pay extra into the DB. I won't have a champagne retirement but I will be OK.
Every year at pay rise time I increase my payments buy 1% you don’t miss it !
That’s awesome to hear! When you get to retirement age you will be thanking your younger self 😁 thanks for watching, I really appreciate it!
I'm 53 and currently have £195k in a DC pension pot, between me and my employer we contribute just under £2k a month to that (vast majority is from me). I have a small DB pension that will pay £8k at 65 and then increase with inflation. If the state pension is still there when I retire then I should have a full state pension too. I plan to increase my contributions to DC every year I get a decent pay rise, fingers crossed, with a fair wind I should be able to go at 60, If not I'll just have to work till I have enough.
Sounds like you’re making huge progress towards hopefully having a very comfortable retirement! All being well you’ll get the state pension on top 🤞🏻
Thanks for watching and commenting, I really appreciate it 😁
Is that 100k the whole pot or just the 25% tax free lump sum
The whole pot 👍🏻
The figures quoted by pension companies as your projection, are usually quite conservative, that worst case scenario looks like they assumed 1.5% growth, that's very pessimistic. Just as an aside, if they keep the triple lock until your SPA in 36 years the state pension will be at least over £28,000 per year.
Yeah I think you’re right, the worst case scenario seems very unlikely, which I guess is good news for me😆
And they always show stupid pictures of older people on bikes😂😂😂😂😂😂I mean broken bones for a start, it’s rubbish🎉🎉🎉🎉
Many thanks Jacob great presentation. I decided back in the mid 1990s to buy property for rental income instead of a Pension. I had 5 by the time I was 47. Retired to Thailand been here ever since, Im 62 now.
I also have a small.Private Pension in a QROPs but the growth is dire held back by the high fees. Only making 2-3% pa what are your fees/charges like with Fidelity?
I prefer to invest directly, doing DCA into a selection of ETFs, Stocks and Mutual Funds.
Best of luck hope ot all works out.
Thanks for the compliment 😁
I always had plans to buy a rental house or 2 as a way to create passive income and potentially use that income to retire later in life, but these days it seems so hard to make the maths work as it seems the government really don’t like people being landlords anymore.
I’m not sure on the fees with fidelity off the top of my head, I’ll have to take a look into that.
I’m currently investing in ETF’s through my ISA, as well as investing into my workplace pension in the hope that the ISA will be enough to get my an early retirement and see me through those early years before I can access my private pension and then eventually the state pension.
Good luck to you too and I hope you’re having a wonderful retirement! 😁
@@JacobBurchell Cheers mate once again, nice one. Dont get me started on the UK Govt and Landlords. I ve sold all but two now, one I ll keep as my own UK residence the other my daughter rents. Its become a nightmare.
I ve reinvested the funds into property here and getting good log term tenants with returns 6-7% all cash and without any hassles. However there's no great Capital appreciation like with the UK.
I am eligible for my UK State Pension in 4 years, have a shortfall of 7-8 years in NIC, but I can top up £800 per year.....just waiting to see whats next.
All the best Jacob.
@@brianbrown9512 atleast you’ve been able to switch things around and still make it work for yourself, and 6-7% return on capital is still pretty good!
If you can afford it you may as well make the extra NIC payments so you can get the full state pension, will be worth it over the long run.
Good luck and Keep enjoying your retirement! 😁
@@JacobBurchellOh yeah mate, but I m waiting to see what other surprises they have in store. Means testing or even stopping Non Res.
More emphasis needed on inflationary factors
Hi Jacob, couple of things:
1 well done. At your age you are very mature and at an early stage you’ve identified this and tackling it hard. At your age i had no pension and was stupidly spending all my money.
2 however, you have made the classic mistake: forgotten inflation. If we imagine a best case scenario 2-2.5% pa inflation rate then compounded per decade thats circa 30%. In other words £100k today would only give you £70k worth of purchasing power in 10 years. Compound 2 decades worth and it would be circa 45-50% of today’s value. In other words all those sums you read out at the end, when you’re in your 50s would have only about a 40% purchasing power feel in 24 years time (when you’re 55) as they do today. It would be even worse 10 years after that in your 60s. So when you quote £1m in your 60s that would give you today’s purchasing power of maybe £300k give or take, maybe less.
But dont let that discourage you. You’re doing exactly the right thing. Ideally as your career progresses your salary will gradually creep up, therefore your pension payments will gradually creep up, and i doubt your calculator took account of that. To an extent that will partially negate the problem i mentioned.
Think about a stocks ISA too. Its the reverse of a pension, you pay tax at the front end (income tax) but zero taxes at the back end. It gives you options later in life where you can manipulate how much income comes from the pension (ie keeping it under the income tax threshold).
Fantastic explanation and advice, thank you!
You’re right all the sums I read out do not take into account inflation, that’s something I’ll just have to take into account as time goes on.
I do also have a stocks and shares ISA that I save into too, which I’m hoping will fund the early years of retirement if I’m lucky enough to get there.
Good luck to you and thanks for watching, I really appreciate it! 😁
@@JacobBurchellI think it probably does allow for inflation, most pension providers state their values in todays money so that it makes sense. The actual amount you will have in your pension at say 60 will actually be a lot higher than Fidelity are stating but they are adjusting for inflation, so I would say your all good bud, just keep doing what your doing and let the power of compounding do its thing. The real magic happens in the last 5 years as the annual returns are insane!!
Your future private pension projections sound good, but you haven’t taken into account inflation….
Hope you are making these pension contributions as a salary sacrifice. It will lower your tax burden
I am indeed! It’s the best way to do 😁
I am 44yo and have only £25K in my pension pot due to being on low pay and self employment in the past. Now i am well paid and contributing 38% of my salary plus bonus plus my company contributes 12% so overall £2.5K A month is going into the pot. Trying to catch up and my goal is to generate £300K at 55 in 11 years. You are much ahead of me well done. Btw i am on Fidelity target fund with aproxx 20% annual return, loving it.
Wow! Sounds like you’re making HUGE progress to catch up and I have no doubt you will hit your goal 😁 good luck to you and thank you so much for watching!
I’m starting work with a new employer soon. I’m not sure if they’ll contribute to my SIPP once I have it set up. If they don’t, could I just get the contributions to go to the employer arranged pension and then do a partial transfer a couple of times a year?
Its doubtful that an employer will pay directly into your SIPP. I checked with Royal London my employer’s provider and they said at any time i could transfer any amount into my SIPP, and as long as i leave a minimum of £200 in the RL pension then it maintains the pension with RL and doesn’t close it down. So yes you could do multiple transfers a year i guess.
@@chrisstone4648 thanks for that! I’ve heard others mention as long as you leave at least £1 in then the workplace pension still stays active. You highlighting that the minimum amount for RL is £200 definitely highlights how crucial it is to speak with the pension provider first before doing anything one might regret.
@@SwahiliSpicE no worries. And i called Interactive Investor (i wont be using them in the end due to fees) and they said i simply set up a SIPP with them and then anytime i want i give them the policy number for a pension i want to transfer, how much £ to transfer, and they automate the rest. Never tried it but sounds straightforward 🤷🏼♂️i’m waiting for Trading 212 to announce their SIPP and waiting for Invest Engine to green light pension transfers into them. Both will operate a 0.15% management fee.
10% from your employer... that's free money - I'd max that out given the opportunity! As for the average/mean/median, is that all private pensions combined for a person? A lot of people are going to have multiple pensions, which will skew those numbers.
It sure is free money… and you would think everyone would take them up on that, but guess what… I’m the only person in my team of 16 who max it out, a few do 5% and the rest just do the minimum… such a wasted opportunity!
Thanks for watching! 😁
That 20k pension pot average. Are you sure that they even take into account individual people?
So many people job hop and have multiple pots. These averages are largely skewed by big numbers so realistically if all of the above is true then it doesnt actually tell us anything.
We need all pots collated to individuals and the medians accounted for then you can accurately look at age groups
Great work fella, keep it up, think about getting a SIPP & Stocks ISA too adding flexibility.
Variables to consider:
1. Real inflation is 5% to 10% annually, this effectively means halving purchasing power every 15 years. So a £100k pot can actually only buy £50k of goods in 15 years.
2. It's unlikely your employer(s) will keep you past age 50 and attaining another job at market rate for your role will prove exceptionally difficult. So salary alongside employer pension contributions will dry up.
3. Government changes to withdrawl age and tax on pensions (if a socialist government allows a private pension and doesnt confiscate it).
Make sure you're diversifying in assets, not just pension. Stocks ISA, Bitcoin, Cash, Gold/Silver and self custody where you can.
Thanks Mr Frobbo! 😁 I’ll take your advice on board. I already have a stocks ISA which I add to every month which I’m hoping in time will provide a healthy dividend income to help me in retirement. I’ll do a video on that soon I think!
Thanks for watching 😁
@@JacobBurchell keep it accumulation at your age to maximise returns. Good work! 'Index and chill'
Great Vlog Jacob.
And explained better than most financial advisers.
I guess everything is relevant to the needs of the individual.
I'm 60, had to retire on a DB pension at 50 due to health reasons. Luckily, my mortgage was paid off by then.
I still put a very small amount each month into a SIPP and it matured a couple of months ago.
Cashed in and put into various savings account ( ISA, personal savings etc).
My state pension forecast says I will receive the full state pension at 67 and can not improve on this figure, even though I only have 31 full years. (Hence, I don't believe I will receive the full state pension). I never opted out.
So, I'm going to keep my money invested in savings for the next 6 years and see what happens with the state pension.
As a single person with no mortgage , I can live on my DB pension of 10.5k per year ( this increases up to max 5% each year in accordance with CPI.
Let's see what happens after the 30th October at the budget.
Keep the vlogs coming Jacob 😊
Thanks for watching and leaving such a detailed comment!
Its great to hear you had your mortgage paid off at 50, that certainly makes life a lot easier I bet. I'm aiming to have mine paid off at around a similar age all being well.
Hopefully whatever does get announced in October doesnt have a serious impact on you and your retirement, but at this point its anyone's guess what Labour are planning.
Good luck to you and Ill do my best to keep the videos coming!
Well put together
Thank you! 😁
You're spot-on there Jacob. But didn't hear that the government disregards your pension contributions BEFORE TAX! Big deal? Well for every £100 you contribute you'd have to earn something like £126 if it were taxed, do some maths?
You’re right I should have mentioned that! It’s a massive tax saving, especially over your working life time. That’s one of the reasons I contribute 10% into my pension, helps save it from the tax man 😆
We are looking at Logan’s run scenario🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉
good, too many oldies
Use draw down to top up state pension.. A couple could then easily have a household income of 40k with hopefully no mortgage ... so dont strap yourself today....tho you are. On a decent salary.. pension access has been pinned to 10years behind state. ..
The typical bloke on minimum wage has nothing much saved in their 50's.
I will get my state pension next year and apart from tiny pots of cash from several jobs I have nothing else.
Okay I could reduce my mortgage to about a weeks state pension.
To be honest, that is quite manageable as I'm a home body, with a cat & a dog, and small garden.
I dislike steak, love chicken and couldn't be a vegetarian. But then I have no vices. Rarely drink, non smoker & don't gamble.
I do date, but rarely meet anyone worth committing to.
Sounds like you’ve got quite a simple, enjoyable set up that you can afford which is a great position to be in 😁
I have a cat too, mine is called Chester!
Thanks for watching and leaving a great comment, I really appreciate it!
41 with ~£400k in pension assets (some of this is ISAs which I will use to bridge the gap between my retirement and actually being able to access my pension, and a SIPP). Going balls deep on pension contributions until I'm 50 (own business so money goes straight out in to my SIPP) and will then action a winddown/full retirement/switch to being an employee part time or some such... basiclly FIRE to give myself the choice! Hard part will be no holidays for the next 9 years... can't take a day off literally on call all the time... but I believe it will be worth it to retire with my health. Only thing I have one eye on is NI for state pension, and same for my wife, we'll have to figure out how to get the extra years.
Decent sum. Just make sure you don't burn out!
Sounds like you’ve got a great plan in place and I really hope it works out for you! 🤞🏻 only thing I would say is try not to burn yourself out on the way, you don’t want your health to be affected pushing yourself too hard for so long.
Jacob
You need to factor in inflation into your thinking as the income in 30 years time to give you a comfortable living is more likely to be 60K + not the 35K you are working towards.
Thanks for watching and commenting!
I completely get your point and I 100% agree. I simply presented the data that the pension site presented to me but I’m aware inflation is a major factor 👍🏻 what I also didn’t take into consideration is any future pay rises that I may get, and promotion that would hopefully increase my contributions, which may counter the effect of inflation slightly.
These fidelity figures adjusted for inflation? £1m in 30 years is more likely to be worth about £500k in current real world value. Thats at the point if retirement, with another 30 odd years to go before you likely die of old age.
Just saying, always factor in inflation to try understan the pot value in terms of buying power
i think these calculators usually state numbers in today's value so you have an idea of how far the amount would go
You can't factory in inflation as it's too much of a variable. You always work into today figures. Money invested in a pension over the long term should give a better return than inflation. If you worked on the 4% rule ( which is of course very much on the low side ) £500,000 in 30 years would be worth £1.1 million and thats without taking the compound interest into account.
Means tested state pension will never happen. It would be political suicide. It’s what they will do to private pensions that matters. E.g. If they remove marginal rate tax relief that will have a far bigger impact than any changes to the state pension.
Exactly 👍🏻
The worse case scenario is the number of years you have to contribute to get full state pension ie increase from 35 years to 40 years.
only about 700 tax on 16 grand 20 percent of about 3500 above allowance
Thanks for clarifying, I was doing a bit of ‘quick maths’ whilst filming 😆 the brain doesn’t always work right when you’re trying to do too much at once.
Thanks for watching, I really appreciate it!
No it’s £1000, remember NI (which is an income tax also). He doesn’t escape NI until state retirement age, I believe. If i have that wrong I’d love to hear it.
I think that is incorrect- you don’t pay NI on pension income so gross pension of 16500 would be about 15700 net. You also stop paying NI when you reach SPA if still working.
@@velogoo ''you also stop paying NI when you reach SPA if still working''...... Labour will change this!
@@velogoo if thats the case that makes life better!
Im guessing in 40 yrs time min wage will be like 40k, so it doesn't sound like u will b to well off, and when two tier Starmer starts ripping in to it, it will be even less 🥴
Great vid tho, made me understand how it works n in 54 🥴
You’re probably right, but I guess I’ll be more prepared than someone who has never bothered… only time will tell!
I’m hoping as time goes by and my salary goes up along the way, that will hopefully negate some of the effects inflation has so my numbers should gradually increase over time.
I know I’m no expert, I’m just hoping a few people see my videos and it helps them be a little more prepared.
Thanks for watching 😁
Why should the state pension be enough to live on??
Good question, but you’d be amazed how many people believe it should be.
And the chances of being made redundant are?
It’s certainly possible, hopefully not anytime soon though 🤞🏻
Shows you need to shop around if you only have 100k. I would say, ensure that you are in the right fund in your works pension and not the default one. Every little helps as they say.
A part time job in retirement of a day or 2 a week would make all the difference to the quality of your retirement. These days I think it’s becoming harder for older people to get employed though for some reason, companies don’t seem to value the experience of older workers.
@@JacobBurchell luckily, I already have 2 defined benefit pensions available at state pension age plus another db in my current job payable on retirement so the personal pension I am also contributing to is to help me retire earlier and enjoy the "fitter" years. Some may say overkill but better that than nothing eh 😁
@@minimad8793 the more the merrier I say 😆 the younger you can retire the better, as like you said you will have more of the younger and healthier years free to do whatever you choose with!
You’re not taking into account inflation a £30k pension for someone like you who’s only 31 now won’t be anywhere near enough. Clearly you will hopefully get promoted and earn more the contributions will grow and make it worthwhile. Good luck on your journey.
Your completely right, at some point I will do a video which takes into account inflation to show the difference 👍🏻
Thanks for watching and good luck to you too! 😁
Only the amount over £12,000 is taxed.
Yep. 20% or 1 fifth of anything over £12,570.
So of £17,570 only £5k would be taxable. Minus £1k.
Bottom line would be
£16,570.
@@slayerrocks2 +1. Thanks for the details.
Here in France it's 0% up to 11294€ per person (married couple); then 11% up to approx. 28000€ (each again); then 30% above that, which we aren't in.
There's a flat rate deduction from revenue of 10% per person for "cost of getting to work". If it's more than that you declare the number of kilometres and the type of engine in your car.
Union subs are deductible from tax to pay 😳👍. Interesting to compare (or not) 🇫🇷/🇬🇧. Cost of getting to work is a biggie.
Most informative🙂.
Thank you! 😁
I am 65 1/2 currently in receipt of £15000 private pension before tax do you think I will get a state pension for about 20 years if I get to 85yrs old
I would say more than likely yes you will be fine. Whatever changes are made in the future to the state pension, I very much doubt they would penalise anyone who currently receives it.
Enjoy your retirement! 😁
👍🤞
Do those predictions at the end include state pension or just your Fidelity pension?
Ah you answered that at the end - most tools advisers use include state pension in their cash flow predictions
Thanks for watching, I really appreciate it 😁
I am 37 next year and have about £4.2 million. We are hoping to get to £6 million and retire before 45. Kids will be 18 then and just going to university.
Wow! You've clearly done incredibly well for yourself and you should be very proud.
Hopefully you can keep it going and execute your plan to retire before 45.
Good luck and thank you for watching, I really appreciate it!
Obviously from a wealthy family well done for being born into wealth
@@fionnaighhessey131 could have been, but not always the case.
@@fionnaighhessey131 Nope. From middle class family but have the mentality of an immigrant like when Arnold Schwarzenegger moved to USA. Family helped through university and grad school. Made money in quant trading and investing in real estate in UK and globally.
😅You have not taken ito account that the required amount for acomfortable retirement will have more than doubled due to inflation.
You are quite right! I think because most people only look at this kind of data quite close to retirement, the predictions my pension provider gives me doesnt take inflation into account. But its still interesting to look at. Equally i havent taken into account any future pay rises i may get, which would increase my contributions and make the overall pot a lot bigger over time.
Ill make update videos over time so we can see how the numbers change.
Thanks for watching!!
But the value of his pension pot without any further contributions will have likely more than doubled. Mine has averaged over 8% and inflation over that time has averaged less than 3% and that's including the recent high inflation. But you normally work on todays figures as that gives you a better idea of the cost of living.
Maybe if uts linked to the stock market and it crashes,so will your pension pot
I have no doubt in the next 30 the stock market will crash multiple times, but it always comes back as long as you have the time to wait it out 👍🏻
Interesting video..😊
Thanks for watching! 😁
TLDW what was the number please?
TLDW ?
There will be no state pension in 20 years imo
Yeah it’s possible, I certainly don’t think it will be in its current form in 20 years. Will be interesting to see what changes are made as time goes on 👍🏻
Don't forget the effect of inflation over the next 30 years,you may be surprised how much this will affect the value of what your pension will be relative to now as it compound over time.
For all the inflation doomsayers, Fidelity will have factored inflation into their forecast growth so the values they state are in todays money so Jacob will be just fine, keep going buddy 👍🏻
Thanks for both your comments Gareth, I really appreciate it. Some people are very quick to judge and spout negativity towards what I think is a pretty decent effort so far.
I’ll keep doing my thing and keep my fingers crossed when I get to 50 I’ll be looking early retirement in the face 😁 best of luck to you too!
One thing to mention is that NI contributions are not deducted after state pension age, so that makes the £16,000 go a bit further.
Apparently it is a fact that those with huge pensions end up hardly denting what is in them and in some cases the pension pots continue to grow in retirement.
Personally I am building pension to retire early. I can't see myself at 67 getting up at 2.30am and doing 11 hours like I do today.
Edit: I suppose I should chip in with my situation, which is £60,000 in two pensions and £34,000 in ISA. Where I live is paid off and I am 45. Only started late due to not having steady job in my twenties and most of thirties. Just the job market, unfortunately.
For anyone in their forties, it isn't too late to start and anything you can put away can still have a few years to grow.
Completely agree with you. I’d rather retire earlier and have less, than spend an extra 5-10-15 years In work and miss out on those golden years of good health and the ability to travel 👍🏻
You gave me a 👍 but didnt answer my question. TIA.
Haha I’m getting to it don’t worry 😆 I’m drowning in new comments at the moment.
@@JacobBurchell OK mate cheers 👍
I retired at 60 with a pot of £300k
Im 67 now. I've drawn down £70k over 7 years
Pot now valued at £440k .....
That must be an awesome feeling, 7 years of retirement, 70k taken out and yet you’re still up £140k 😆
Mate - those predictions don’t take inflation into account. Money halves n value every 25 years
Very good point! Maybe I need to up my pension contributions 😆
@@JacobBurchell Not necessarily. Your forecast assumes you will do the same job forever. Things change and as you progress your career forwards more will go into the pot and the compounding effect will increase. im 20 years older than you but my SIPP and company pots are far bigger than I thought they would be at 31 and thats happened just through a few job changes and promotions. another advice I would give is not to try time the markets -- every time the markets have had a bump there is no point in history they did not recover. Plus ar your age go with just equities. - bonds and gilts will hold you back you have plenty of time to build up a sizeable retirement pot. great video btw and best wishes
@@davidg9057 yeah your right, as my salary improves so will my contributions, and compounding will hopefully do the bulk of the work as the years go by.
Thanks for watching and commenting, I really appreciate it 😁 good luck to you too!
I can't lie I thought you was in your late 30s or early 40s
I’m sure there is a compliment in there somewhere … 🤣🤣🤣 thanks for watching 👍🏻
Congrats by the way. Im same age and same pension total. Make sure you are choosing your own funds! I got my employer pension transferred to vanguard so I have better control.
@kemshed congrats to you too buddy! Yeah that’s a great point, Iv currently got mine invested in growth stocks so a lot of S&P500 stocks which should be good over time 👍🏻 Fidelity is similar to Vanguard as they have super low fees which is a big plus… some pension funds have such high fees, daylight robbery!
Just draw it all out and enjoy your life , you'll probably die before you get to draw a pension,
That’s abit of a morbid thought for a Monday morning 😆 keeping my fingers crossed I make it to retirement.