40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $900k, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.
I fully agree; I'm 56 years old and recently retired with approximately 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds in comparison to my portfolio balance over the last three years. To be honest, the financial advisor's role can only be ignored, not dismissed. Therefore do your research to get a reputable one and that should be any individuals main route into the market.
I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
Kudos on the effective execution of innovative ideas and tactics that lead to significant advancement. As I seek guidance from a trustworthy advisor, would you be willing to share details about the individual assisting you?
Thanks for the video Pete. I am a late starter into an occupational pension and a complete convert and your videos give me confidence to know I am doing the right thing. I am working on the assumption that there won't be any state pension for people like me when we reach that age. Either the pension age will be pushed way back so the govt waits for us all to die so they don't have to pay out or nudge us along. A work pension is the only certainty followed by ISAs. Yes this budget and future budgets for the next 3 years will be a horror show but we can only do what we can within the options currently available. Thanks again Pete.
@@Andrew-o9k6h Thank you for your comment Andrew. No I don't use a financial advisor but videos from people like Pete Matthews here and also Edmund Bailey (strongly recommend) have helped me immensely. I am usually fairly sharp with financial planning, I read a lot, research, watch my savings and investments like a hawk and monitor them carefully. I am single, no dependents, mortage- and debt-free so I don't have anyone else to worry about but by the same token I also need to ensure that I have planned sufficiently for my future and old age as I don't have anyone else to fall back on. The trick is about getting that balance right.
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 30--100k with the right ones. Online businesses are a good bet too if you are savvy.
*Izella Annette Anderson* 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.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
For me it’s simple. With money in an ISA, I choose when I retire. With money in a pension, the government does. As someone who is young, a mix of both with a higher weighting to an isa is more desirable.
If you have your own SIPP (Personal Pension) you can retire 10 years before the state retirement age. You can have as many SIPPs as you want, but i have combined all of mine. So get saving.
@@helixvonsmelix 10 years before the state retirement age is not good enough for me. By the time I reach it, it will be well into my 60s. Not to mention there wont be a state pension for me. I will get my employer match and contribute more in later years. But right now the isa is by far the best option
@ethan_c223 Pensions are better with the tax relief put in immediately. Problem with ISA is the £20,000 limit. With a pension, your salary or the Annual Allowance of £60,000 is the limit, whichever is lower.
The employer matching is a good place to be, so is the government contributing to a LISA. For the rest of it an ISA might be the better option. Flexibility and tax efficient. Do your sums and see what works out best for you. Take care M.
Great vid thanks. It would be great if a future vid presented your thoughts on how to optimise retirement spending from a combination of sources (DB + state pension, DC & ISA)
Yes, and there could be a manic few months as I suspect whatever she suggests ref pensions and ISA changes will be deferred until the next financial year leaving a few months for some to have to take action.
Thanks, very interesting. Saves me doing the sums. One challenge 'decent outcome' - no, ideally the money runs out as you do. My plan is to buy an Annuity at age 90 (if I last that long) so this will happen. You get a lot... The idea that your spending stays the same (after inflation) is, however, flawed. I can tell you that spending decreases a you get older. And I live a 'no holds barred' lifestyle below the 'moderate' level. It is all about skill in spending.
1:41 Just a little clarification. You can't take out 25% of your pension fund tax free. There is a cap of a smidge over £250k. But that cap will only matter if your pension pot is over £1 million.
I'm not sure the Lisa calculation is correct either. You cannot contribute more to the Lisa beyond the age of 50 so by the time this person is 44 they will be contributing the maximum of 333.33 per month into it as they can only put in a maximum of 4000 per year. At a 6 % growth rate, I can't see them having much more than around £300,000 by the time they are 60.
Thank you, @sr13500 - you are right. After age 50, I assumed the contributions continued, minus the bonus obviously, into an ordinary S&S ISA. All was explained I. The previous video
The retirement living standards seem absurd to me, I don't spend £31k currently while in full time employment, and I would barely classify myself as having a 'below moderate' lifestyle. I see them quoted often, but surely they aren't accurate?
Hi, it’s quite interesting on what people view as the norm. State pension is the minimum but that is below the working wage. 12k a year would be a basic living std anything else is gravely. Top tip might be to find a partner or live with relatives! Take care M.
Thing is, you're spending most of your day at work spending very little during that time. When you're retired, unless you're watching TV all day or something else that costs next to nothing, then you'll need to spend. I do actually agree though, the figures are too high. I estimate having a pension of £24K per year would give you £650 per month spending money after bills etc. Not bad really.
Im 60 and after tax etc have a yearly income of £36000 per year. Me and my wife live a comfy life on this. Based on the PLSA figures to have the same in retirement I would need £59000 per year. £23K per year more ? £2k a month more. No chance will i need this much. Also from the £36000 figure comes out £9600 per year going into a pension and £2400 into ISA. No way do i need £59000 as I haven’t even got the pension or isa payments to consider.
Even for the minimum, single person, the Retirement Living Standards (RLS) gives "Up to £630 for clothing and footwear each year." In the last year I have spent less than half that. However, everyone will be spending differently, so the RLS is a rough guide.
Very informative Pete - thanks How do you forecast income tax thresholds- do you raise them at 4% a year too (from 2028 after the current freeze ends) ?
Really enjoy the videos I'm interested in becoming a financial adviser as I find the topic interesting and feel I'm passionate enough to enjoy it as work within the field. Where would recommend I start
Hi Pete. I’m a little bit confused by the graphs towards the end, why don’t they go down significantly when we start to draw from them. Is this down to the interest rate keeping them up?
I retired at age 53, so I am in my early 60s. Many of them resisted me because they couldn't understand the idea of not working if it wasn't necessary. I considered the phases of my life. I worked very hard to achieve what I have now, but in my last years, I owe it to myself to "stop and smell the roses." In my instance, I departed the nation after retiring and currently reside in Latin America. It made it possible for me to appreciate my new surroundings while escaping all the bad things that were going on in America. Nobody that I know of regrets retiring has yet to come to me.
Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than a million dollars by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like Kathie Daisy Bosco who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I have the NHS pension, cash ISA, and a LISA which I drained to zero for a house purchase this year so have to restart with that for a pension. I want to retire at 60 and am in my early 30s so might start a stocks and shares ISA after I complete my house purchase rather than a SIPP. My current salary is more than the single person comfortable category, but in the city I live I feel more moderate rather than comfortable as it's expensive to live here. I would have thought at least 60k net would be comfortable....
You're better off buying added pension through the NHS pension scheme. £60k a net is £5k a month - consultant level of after tax salary, and you want that as a pension!! Are you mad?
@@tancreddehauteville764 Im a GP, not a hospital consultant, but I want to retire early and can only take the NHS pension at 68. I I need something else to cover 8 years
Hi Pete, thanks as usual for a great video. I really liked the graphs and I wish there was some similar function in Voyant to play with. The reason is that I am one of many who are in the run up to retirement(I suspect your largest demographic!). Your video, though very interesting, doesn't represent those who come to Earth with a bump in their 50s and are now wondering if Pension/ISA/LISA's work the same way as you have shown over a shorter timescale, especially where tax is concerned a few years down the line. Are there spreadsheets available which could show this please? Thanks again!
I love this channel. Ive learned so much about savings, tax and pensions id be lost without it. However, please try to limit the number of ads. I counted 9 breaks in tbis video. Some every 2 or 3 minutes. Finance is a complex subject that needs full attention to understand, the ads ruin that.
General rule for retirement planning AFAIK is if you're a higher or additional rate tax payer the pension is the best route to go. If you are a lower rate tax payer the LISA makes a lot of sense. The ISA is handy if you want to retire early and bridge the gap between your target retirement date and the date where you can access your pension funds.
Hi Pete good video again, what I found amazing was the lump sums accrued in the various pots over 30 years. Those are the sort of illustrations kids should be shown at school as part of life skills lessons, as well as the true cost of debt. What I do find curious is this desire often to show almost nil impact on the money that’s been saved, what is the point at age 90 having £600+K still especially if you have spent pensionable years just counting the pennies and not enjoying life? To me having drawn down to about 25% of the pots value at 90 seems a much better plan. Most of us won’t get to 90 as the stats show
Interesting video, but shows examples of how curves work out if you have your funds in a single pot (Isa, LISA or Pension). Could you do a video with an example where say 40% of one of your amounts is in ISAs and 60% in Pensions - how would this affect the curves (would you burn the ISAs or the pensions first)?
I am retiing early 57, 10 years early have a mix of ISA SIPP have locked in a lot at 5% in gilts 180k ISA 430k SIPP will be UFPLS at personal allowance for me 20k year tax free with blind persons allowance so only top up with ISA when required, this method means I am paying no tax for 10 years pulling money out better than being hit with tax at state pension age retirement
At aged 60 with no pension to speak off and a lump sum from downsizing, I think the isa maybe the answer? Need to give you a call as I live in Cornwall anyway.
@@johnporcella2375 I have recently started an occupational pension, but it’s going to be to little to late, and also with the tax liability that pensioners will endure now the state pension will be taxed in the next couple of years through fiscal drag, I now wonder if a pension was/is the right way forward.
What if you set up your ISA into dividend paying shares that gave you an income of 20k per year but also went up with inflation.I know dividends are not guaranteed but would setting it up this way would mean you are not drawing your ISA .Also have Final salary and defined benefits.
That assumes you’re employed! I wanted to avoid including employer contributions so as not to muddy the waters. But in the previous video I assumed an employer match, which if anything, slightly over-egged things
It would be interesting to see the back calculated results from a hybrid of these models. Some sort of formula that buys a little more of stocks below the median cap value and a little less of those above.
The crazy £40k+ for a single comfortable lifestyle always gets me. I'm early 50s will retire soon with a £400k pot that's more than enough. I will spend £20k this year and that includes the 2 big trips to Japan I had, plus doing loads of other stuff. My paid off mortgage helps of course, tho I'm still in my starter flat... Dunno where they get this £43k from!! Maybe down London way eating out in posh restaurants all the time you'd spend that...
I’ve said the same many a time, these studies have pension incomes above the average wage , yet in retirement for most the biggest monthly expense, a mortgage has gone. Where do they get these numbers? I’m 64 retired still with a mortgage scheduled till 2034, but my wife ( still working) and I overpay the mortgage so it will be cleared in 7-8 years. My income from draw down is the same as when I was working (£30K yr gross). In 5 months a works DB scheme starts and I’ll be in an even better position, 12 months later full state pension, these will allow me to reduce the monthly draw down. If I wasn’t paying the mortgage then a monthly net income of £1500 would be manageable, everything above that is the jam on top.
@@guyr7351 Precisely! When I get to draw the state pension that will completely cover the essentials, so what remains of my private pension and ISA is indeed the jam on top.
What happened to the tax free cash in the option where all the pension withdrawals are taxable? Are you assuming that the tax free cash was spent at the start? It's hard to see how that's a valid comparison as the UFPLS option does not include spending a huge wad of money at the start?
how about looking at the same problem - target lifestyle amount to spend - but calculating the most tax efficient route? would it be a mix of ISA/pension?
@@MPD90 I'm anticipating changes to pensions and, potentially, ISAs too. Yes, there is 'always another budget around the corner' but Labour have made it clear that they are only interested in 'working people', which Starmer has defined as people without savings. Furthermore, it they are prepared to take heating payments from the elderly with one hand and then give out pay rises to militant unions with the other, its clear to me that, more than usual, this budget is going to be bad for people with pensions, ISAs, savings etc.
@@petermorris3665it isn't the unions that are getting pay rises, it's working people that haven't had a decent pay rise in over 3 years, meanwhile inflation hit double figures.
I've already used one cash LISA to buy a home. Am I now able to open a stocks and shares LISA with a different provider for retirement or does HMRC not allow that? Great videos; thanks!
For me, Autoenrollment means I and my employer contribute to my pension, they adding 3% and me 5%, anything I earn over this contribution and the 40% tax threshold goes into a SIPP for 40% tax relief, then I max my LISA for 25% tax relief (or 20% tax relief and a free 5% from the government), the rest I want to save goes into an ISA, with a couple of premium bonds for the monthly thrill of the draw/an emergency fund.
Is there any specific reason why you are paying 5% when your employer is only adding 3%? I would take those extra 2% and throw it into the SIPP as well.
Don’t forget that salary sacrifice into a company DC pension is also an easy way of reducing taxable income overall and saves on NI contributions as well. Also, you may find that your employer will ‘give back’ some or all of their NI savings in terms of additional contributions even if they don’t ‘match’ 1:1. (As an example my company does 5% basic plus 3% match but then gives an additional 0.1% for every 1% more I put in. This isn’t matching but is still ‘free’ money so may be better than a SIPP and easier from a tax return perspective also.
All this stuff is boggling my mind 🙈. I am saving into a pension with added employer boost. I also paid all my bonus into my pension this year so I didn't pay any tax on it for this first time this year. I honestly wish I had realised paying all my bonus into my pension meant I wouldn't be taxed on any of it and it was possible years ago
If I have a lifetime ISA, could I hold back from paying anything into my pension from 57, then assuming I earned over £60k or the allowance at the time, then drop the full 3 years worth of full pension contributions into my pension from my LISA using the backdating process, get the 20% uplift from the government and have the 25% of that tax free to withdraw as well as it being protected from inheritance tax for my daughter. I am 37 atm and plan on working until 65, then starting to withdraw from my pension. Expected to have £300k in my LISA at 60 if I continue £333 a month plus Government 25% up until 50 years old then leave it to compound, based on a 7% average return on 100% equities.
Love the videos. How do you get a LISA pot of nearly 700k? If they save the max of 5k p.a. between 30 and 50, that’s only 100k. Add on 6% for the full 30 years to 60 (an overestimate) and it’s 574k in nominal terms. So a long way short. Would be good to know what I’m missing, thanks!
@MeaningfulMoney I still only get to around £ 362,957 even if I add further contributions into a normal ISA from 50 to 60 years. How do you get to nearly 700k? What am I missing?
Set up your own spreadsheet. First, use it to calculate your own costs (values here are a nonsense). Then do projections. But do not rely on 6% growth- that is a fiction. FTSE all share over the last 24 years did not make 2%.
i haven't finished watching the rest of the video yet so it might not be an issue but if not, instead of saying for example, you need £43,000 as a couple for a moderate lifestyle, these numbers shoudl be given before tax. obviously, i know that it's tricky since we don't know how the pot is split in a couple so the possibilities are endless to estimate the income tax correctly but even if split 50/50 as a basic assumption, this would still better than these numbers. it's just a suggestion as i assume a lot of people don't know how to figure out how much they would need combined to get to these numbers.
Is this aimed at the upper quartile of the population your figures for the fictional example are huge ? at 65 I have £420k pension and £90k Isa, but this is seems not sufficient according to your calculation, but for us its perfectly ok considering state pension on top, or did i miss something .?
Im looking at retiring in a couple of years at 62 with similar pots. With state pension I reckon it will guarantee £35k per year index linked until Im too old to care.
Question. Can I withdraw the tax free portion over a period of time, say 10k per year tax free until the tax free portion or life time tax free amount is exhausted? Only after this pay tax on withdrawals?
I'm struggling with the initial figures. What pensions offer 6% growth per year? Admittedly I'm not an expert on pensions. But my understanding is as a rule of thumb pensions offer about 4%. Whereas a stocks and shares ISA can over the longterm give returns between 6-10%.
What makes the difference is what’s inside the pension or ISA - the investment fund. So if you’re 100% invested in equities through funds in your pension, you’ll likely average 7-8% per year, but it’ll be a rollercoaster ride - that’s the price of entry as an investor.
You’d be even better off in a pension while saving. When it comes to taking money out, the examples in this video would be relevant because you’re unlikely to be an HR taxpayer in retirement. But if you are, then you’d obviously pay some more tax on the way out. Recommendation is that same no matter what your status - try to have both.
Hello Peter. I have got it wrong all along. I have done ISAs for possibly forty five years so have lost an awful lot of money. I have had the benefit of being able to access some money when i needed it. I am now very old and have never drawn from the ISAs for any income. Am i correct in saying that if i now put this lump sum into a pension it is outside my estate for inheritance tax purposes but stiill available to my family and not lost on my departure from the financial merry go round!!?.
You don’t state whether you are working but assuming the ‘I’m very old’ comment means you’re not then you are likely very restricted on what you can pay into a pension now. If you have already started to draw down from the taxable portion of your pension you have triggered the MPAA (money purchase annual allowance) so can only pay in a total of 10k per year (if you have relevant income). If you’re over 75 then I believe you don’t get any further tax relief but can (if your provider allows) pay in upto your limits. If you have no relevant earnings then you’re limited to a total of £3600 per year (or £2880 before tax relief is added).
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that's well prepared for any eventually, that's how some folks' been an impressive average return of $150,000 every seven weeks over the past four months according to Bloomberg.
Christine Maloney-wilson is my trade analyst, She has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
You are correct. There will always be someone picking holes in your videos, ha ha. In this case, me. I am very happy you have moved to adding on a fixed sum rather than a fixed percentage every year (£10 vs 10%) as I believe this to be much more achievable (for example, by year 20 adding £10 a year has the monthly payments at £390, rather than adding 10% to the previous year meaning monthly payments of £1,345.50, and £3,490 per month in year 30). However, when you are calculating out the Lifetime ISA example, are you taking into consideration that the annual deposits are capped at £4000? And if this limit is not increased, that cap will be reached after year 14. Meaning you could not put in anymore than £333.33 per month, and not the £490 per month of year 30 in the other examples. Has than been taken into account? Now sure, you can maybe assume that this limit will be increased in the future. But then look at the help to buy ISA. It was abandoned. And so could the lifetime ISA suffer such a fate. At which point it will likely continue as a legacy product, with whatever the limits are at the time of abandonment. And so I don;t think you can count on that at all. Maybe I got it wrong though, and you did cap deposits to £4k once that amount was reached. Can you clarify?
I don't think he did. I also don't think he took into account you can't contribute after 50 either. I think with those 2 considerations you would struggle to make it past £300k by the time you are 60
I think the living standards amounts are pretty ridiculous, they are above the average wage(after tax) yet most people spend less as they age. Does you average couple need 40-50k a year at 90? These figures are probably there to scare people into working longer.
@@MeaningfulMoney Not true! Although I am trying to spend more (I am over-funded) my needs and desires have shrunk over time. What is there for a 90 year old to spend on?
UFPLS triggers the Money Purchase Annual Allowance. Currently that would limit to £10k gross going to pension, if your earned income is above that. Look up MPAA (Money Purchase Annual Allowance) for more about that.
Generally a useful video, but I think it inadvertently promotes LISA over Pension in a quite inaccurate way. While I imagine it was mentioned in the previous video, I don't believe it is mentioned in this video that the pension figures assume a basic rate tax payer, although you do mention it assumes no employer contribution (although with the exception of the self-employed, employer contributions are of course a legal obligation for employers). So in effect the numbers in this video apply a heavy handicap to the pension option. Realistically the majority of people will be able to get a proportional employer contribution to their pension, and many may also be higher rate tax payers. Either (or both) of those would allow the pension option to very decisively outperform the LISA option.
I agree that it's easy to pick holes in the parameters but they are only a guideline. That said, I think it would be better to ignore inflation and simply reduce estimated growth rates of the investments: 1. It's much easier for people to relate to results using current day values. A £700k pot sounds pretty big on today's terms but it will be small in 30 years time 2. Did you inflate the PLSA living costs by inflation? That £31k when inflated by 4% comes out at nearly £103k in 30 years, so even £700k isn't going to last very long. For the basic taxable pension option, you have just ignored the tax-free lump sum, so no wonder it comes out worse than UFPLS. Where did it go? Even if it was taken in full, right at the start, it should have been invested somewhere and used to offset the taxable drawdown part (I accept that the result would still have been worse). I do agree with the benefit of the LISA but in real terms it's still going to be a very small proportion of the funds needed. Important and valuable nonetheless.
I don’t find value in estimates and calculations that go to 95 years old and beyond. Use average ages not extremes. In addition to this the state pension will never deplete! All my personal calculations run up to 85 years old and this is based on how long my family members lived!
So what happens at 85, you just hope to die or something? And the video shows pots going to zero when they can no longer support the example lifestyle.
@@MPD90 same what happens to 93. As always the state pension is always there at any age but in my case I also have properties I collect rent. So you never go to zero even if the pots diminish at 85. Never plan for the 5% of the male population that survive to 93 but plan for the 95% of the male population that survive to mid 80s.
@@porschecarreras992cabriole8 But you have planned for it. You literally just told us your plan. Rental properties. If you were legitimately planning to 85 and no further then those properties would be liquidated and the funds spent by then.
@@MPD90 state pension is the obvious plan because you don’t need a lot of money in your 90s beyond doctors. Properties can be liquidated at any time and are not part of my current pots. I have no children that I need to worry about inheritance either.
those PLSA figures are insane. i don't think i could spend if i attempted a brewster's milliions style spending spree. is it all assuming full home ownership too? even more ridiculous if so. edit: think they do assume home is owned as they talk about maintenance of property.
Pete I can't see where your figures come from, I have saved into a pension since my early 30's at £100 per month to start then £200 I am now 67 and haven't got anything like the figures you quote.
I tried to encourage our graduate living at home to save £400 pm instead of paying for room and board it didn't work lack of self discipline meant only £600 was saved, so we take the money and ISA it shame though in a LISA that bonus would be handy. Though the lack of competition in the LISA market means charges are higher than a straight ISA that's not really presented in your video and pensions generally have at least 0.15% platform fee plus the fund charges whereas an ISA can be had for no platform fee if you self manage. Likely in the budget will be measures to negate the current ability to pasd on wealth via un accessed pension funds its sn easy and obvious inheritance tax avoidance method that is sure to be limited by the government of the day.
At least you tried. Persuading a young adult to put money into investments is tricky as it is delayed gratification. Dodl from AJ Bell I think is the lowest cost Stocks & Shares LISA. It is a shame there are so few providers of them.
If the youngster doesn't do well with their money it's best to charge them "rent" and put it in a savings account to be used only as a gift to their house deposit.
£59k is way beyond just comfortable. I’m pretty sure me and my wife live on less than that now and we spend £20k a year on holidays. £59k a year affords a seriously luxurious lifestyle.
I know exactly what I spend. I have run a spreadsheet for 35 years. And you are absolutely right. I try to spend more (I am over-funded) but cannot reach £59K despite trying. And I usually have 3 holidays a year. It is all because I avoid wasting money on things like appliance cover, road assistance, servicing, PCP cars, and other such senseless money drains, and always requiring value for money. Average is for the average person- and who wants to be average?
Lol… we live off a private pension of £44k pa (gross) as a couple, and have another 5yrs and 7yrs respectively before we can claim state pension. We also have £500k in stocks and shares ISA savings, and own outright our £600k home. We also support our 3 grown up dependents who still live at home. These figures are way less than those you mention, and we live very comfortably thank you. The figures you mention are way too high in my humble opinion. Unless of course I suppose you want 6 month foreign holidays every year, and a new car every two. Then yes you’ll need those figures you put forward. 😂
@@garythreadgill8913 think you might’ve missed understood… We have around our house, plus £500k in liquid assets, and hence receive income off that within tax free gains ISA protection, they’re stocks and shares ISA’s and last year earned 7% even in a non optimal market. That interest, along with no mortgage and the pension, is more than enough to easily live comfortably supporting our kids, although not exuberantly.
@@garythreadgill8913it is an asset once it’s paid for. You can sell It move to a smaller place and then have free cash, even rent a smaller place with a large sum invested. Obviously depending where you live you could have anything from 300-400K if you sold the house. That combined with pensions gives you a hell of an income
My question is, while these hypothetical people were saving hard for their pensions and getting to 60 or 67 with huge ISAs (by my standards at least), how were they affording to buy a property? They didn’t touch their LISA till at least 50. With the price of housing as it is, I’m not sure how realistic these scenarios are.
32 years (18-50yrs old) LISA, into a compound interest calc, starting with 0 and adding the max every year, at 7% return = £617,978 (so saving £333 a month basically invested into a standard globally diversified, low cost index fund). Add more to other accounts as the £ devalues to keep up with inflation as your pay "goes up".
@@PaulB-q3d All these funds and schemes did not exist back in the day most older average earners of my age will only have a pittance in there pensions , good advice though for younger workers just starting out, whether they can see the future and make plans is debatable. All these schemes are based on forecasts, I can remember pension advisors telling us to opt out of serps back in the 80,s to get fantastic returns of 100,s of thousands that was optimistic BS that only made money for the pension advisor now I have a permanent £20 a week shortfall on my state pension from a now lost 5k private pension. The future is not predicable.
I agree the figures are quite high. I do wonder if this research and the associated figures are promoted by the finance/investment community, who benefit from more funds under management fees.
That’s a fair question, @nasirmahmood5684. I had nothing to do with the PLSA figures, they were one of a few options I could have chosen. I’ve built a career on helping people to NOT need a financial adviser, despite being one myself, so I can confidently say that fees on investments are not main driver for me!
I think you need to post again after labour's autumn budget, as they are looking at taxing the 25% tax free lump sum and also looking at limiting the amount of money you can build up in an Isa. What i find irritating all these are projections which work on the assumption of a % growth each year but many of these projections don't account for inflation. If my investment made 7% per year but inflation was running at 4% that year my investments in real terms would have made 3% last year 2023 inflation reached 7.1% and in 2022 inflation peaked at 11.1% in october the highest annual inflation since 1981 in both these years i would have lost out too inflation. The average rate of inflation since 1989 to 2024 was 2.83% My conclusion is you would have achieved growth both in a pension and an Isa but it all depends on what fund or group of funds your pension was invested in. It would be a similar story with an isa had you invested in tech or a US tracker you might have a million pounds plus in your isa.
@@michaelmayes9689 To be fair, he did account for inflation here. And to quite a large degree as well. He suggested a figure of 4% inflation was used, and so actual calculated growth was only 2 or 3 percent. So the final numbers used were in “todays” figures.
Pete can you not just use 20k a year from your tax free pot and then up to your personal allowance 12570 from drawdown. This would give you 32570 pa tax free?
@@MrAlwaysBlue that’s true. I’m fortunate enough to have the max, so would do me 13 years ish. However I eat and drink too much, so might not need it that long 🤣👍🏻. Good luck with your retirement 👍🏻
@@MrAlwaysBlueAgreed. As per Pete's example, retiring at 60 would mean £140k until age 67 and that would require a pot of £560k, so at age 67 you would have £420k remaining, fully crystallised (no more tax-free). I suspect that is why Pete is suggesting UFPLS.
This daft idea, "pensions are crap 'cos you might get tax free paying in but get taxed taking out" is still doing the rounds! People don't seem to get the fact that paying no tax, especially if you're a higher rate payer, on the way in means a much bigger pot with more power to reap the benefits of compounding over 40 years is incredible. When you pay your money into an ISA you have to pay tax on earnings before you get the money to buy into the ISA so you have to make up for the 20% tax loss, whereas employer schemes will take the pension payments pre-tax, so pay in as much as you can afford even bonuses should be put through as well so you don;t get them hammered for tax. I have pensions and ISAs but pensions are such a great way to build wealth while you're working. I'm a high rate payer so I claim the full relief but I have every intention of dropping back to 20% rate in retirement thus my pot is even bigger and gets hit far lighter when HMRC comes for me and my pot in retirement.
No figure can be put on what you need in retirement. I've been retired since 64 now 67 so I know. Retirement income is purely what you require and is individual to you I don't need 40k , income is how you spend remember everything you buy say to yourself do I need it will I use has a purpose. Sorry these figures are ridiculous and puts strain on you. Properly planned sensible spending is the best retirement
Don't worry bud, you can only contribute up til 50 anyway with a maximum of 4000 per year. Your pot likely wouldn't have the time to hit the critical mass that is suggested here. For me I think pensions are the better option as someone in their 40s anyway, especially if you can salary sacrifice your contributions.
If your pot has only managed to match inflation, you are probably in the default fund or a very conservative fund. I would suggest looking into all the options offered by your private pension provider and switch to a slightly riskier, but more profitable fund. If none of the funds, that your provider has, manage to outpace inflation then I'd highly suggest looking at other providers. Most providers have public records for the performance of each of their funds.
I know these are just examples, but the figures are way beyond anything I am likely to accumulate! It’s allways the same on these types of channel. Most 30 year olds would not be able to save £200 a month or even be thinking about pensions. By the time you start thinking about them, you have no time to accumulate £4-500k.
That could be the case, but it is useful information to learn. I only started saving into a pension when I was 55 years old. I don't have these values in my fund, but it is useful information.
Hi, if only 20 or 18 year olds watched this or had any interest in it. Luckily I did pay into a DB pension from 18 thank god or those people at work who new I might like to retire at 50. Still can’t afford it but it was a good idea. Take care M.
What you really need to know is how much you need to pay into your kids ISA to give them a pension when they hit 60. Or how much to put into a LISA to give them a moderate pension. Take care M.
I don't believe this is true. I only started to contribute to my retirement at 33, I am making sacrifices (rarely eating out, trying to do fun but low cost activities, etc) in order to put more money into my retirement so I can catch up to where I'm supposed to be. I'm doing my employer match and an extra £200 into a SIPP. I've done multiple projections, and even in the most conservative case I would end up with about £800k by 67. Bare in mind I live and work in London, and earn significantly below the median wage for London. So unless you are earning the national minimum wage, while living in London, I think you are able to accumulate those amounts by making small sacrifices to put some extra money into your retirement.
@@PaulB-q3dYep and it can't also possibly be worth more than an ISA by the same metric of age 60. A LISA stops allowing you to invest at age 50 under current rules. As a first house purchasing mechanism, it's ideal but for retirement, no way!
BIG PROBLEM - Your 6% growth per year. Over the last 24 years, the FTSE all share has not even made 2%. (3000 to 4550). Yes, some shares have done better- but which ones? Chosen beforehand, of course... Stockmarket growth is a sham.
Which is why almost all ‘advice’ is to invest in a passive global tracker to get global diversity. Focussing on something like the FTSE all share is not diverse in that regard. That said, even though in recent years it’s been massively outperformed by the US market the annualised return of the FTSE 100 from 1984 to 2022 was still 7.5% (comparison albeit different timeline is the S&P 500 was 11% annualised from 1992 to 2022 and the global markets around 9% over the past 25yrs - albeit with some very high volatility in the mix!). So the 6% is entirely correct and feasible based on historic market returns over the past 25yrs and beyond
Bring Stephanie Janis Stiefel on the show. She changed my life Financially I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Stephanie Janis Stiefel, for her expertise and exposure to different areas of the market.
I know this lady you just mentioned. Stephanie Janis Stiefel is a portfolio manager and investment advisor. She gained recognition as a former employee at Goldman Sachs; a renowned investor she is. Stephanie Janis Stiefel has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.
Well her name is 'STEPHANIE JANIS STIEFEL'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Despite all the financial struggles I and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord
The big difference for me always comes back to the fact that the government controls when I receive my pension, since I am 30 years away from retirement, and the government are totally untrustworthy, I will save all my money in an ISA, until they put a maximum contribution allowance on that too, of course.
They do our a maximum contribution on it - £20,000 a year. I wouldn’t let your politics dictate your future wealth - pensions ALWAYS win in terms of pot size and tax-efficiency, all else being equal.
40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $900k, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.
I fully agree; I'm 56 years old and recently retired with approximately 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds in comparison to my portfolio balance over the last three years. To be honest, the financial advisor's role can only be ignored, not dismissed. Therefore do your research to get a reputable one and that should be any individuals main route into the market.
I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
Kudos on the effective execution of innovative ideas and tactics that lead to significant advancement. As I seek guidance from a trustworthy advisor, would you be willing to share details about the individual assisting you?
...
@@sabastinenoah Google Annette Christine Conte and do your own research. She has portfolio management down to a science
Thanks for the video Pete. I am a late starter into an occupational pension and a complete convert and your videos give me confidence to know I am doing the right thing. I am working on the assumption that there won't be any state pension for people like me when we reach that age. Either the pension age will be pushed way back so the govt waits for us all to die so they don't have to pay out or nudge us along. A work pension is the only certainty followed by ISAs. Yes this budget and future budgets for the next 3 years will be a horror show but we can only do what we can within the options currently available. Thanks again Pete.
@@Andrew-o9k6h Thank you for your comment Andrew. No I don't use a financial advisor but videos from people like Pete Matthews here and also Edmund Bailey (strongly recommend) have helped me immensely. I am usually fairly sharp with financial planning, I read a lot, research, watch my savings and investments like a hawk and monitor them carefully. I am single, no dependents, mortage- and debt-free so I don't have anyone else to worry about but by the same token I also need to ensure that I have planned sufficiently for my future and old age as I don't have anyone else to fall back on. The trick is about getting that balance right.
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 30--100k with the right ones. Online businesses are a good bet too if you are savvy.
@@mikegarvey17Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
*Izella Annette Anderson* 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.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
For me it’s simple. With money in an ISA, I choose when I retire. With money in a pension, the government does. As someone who is young, a mix of both with a higher weighting to an isa is more desirable.
If you have your own SIPP (Personal Pension) you can retire 10 years before the state retirement age. You can have as many SIPPs as you want, but i have combined all of mine. So get saving.
@@helixvonsmelix 10 years before the state retirement age is not good enough for me. By the time I reach it, it will be well into my 60s. Not to mention there wont be a state pension for me. I will get my employer match and contribute more in later years. But right now the isa is by far the best option
@ethan_c223 Pensions are better with the tax relief put in immediately.
Problem with ISA is the £20,000 limit. With a pension, your salary or the Annual Allowance of £60,000 is the limit, whichever is lower.
@@johnporcella2375 Pensions are better with tax relief. But worse when it comes to my control over the money and when I want to retire.
The employer matching is a good place to be, so is the government contributing to a LISA.
For the rest of it an ISA might be the better option. Flexibility and tax efficient.
Do your sums and see what works out best for you.
Take care M.
Great vid thanks. It would be great if a future vid presented your thoughts on how to optimise retirement spending from a combination of sources (DB + state pension, DC & ISA)
Will be redoing all these videos after the budget.
Yay!
And we will watch them…..
Take care M.
There won't be any point investing after the budget.....probably.
Yes, and there could be a manic few months as I suspect whatever she suggests ref pensions and ISA changes will be deferred until the next financial year leaving a few months for some to have to take action.
Labour are a joke.
@@guyr7351 I already exceed the 60k pension allowance and will do the 20k ISA allowance as well
Thanks, very interesting. Saves me doing the sums. One challenge 'decent outcome' - no, ideally the money runs out as you do. My plan is to buy an Annuity at age 90 (if I last that long) so this will happen. You get a lot... The idea that your spending stays the same (after inflation) is, however, flawed. I can tell you that spending decreases a you get older. And I live a 'no holds barred' lifestyle below the 'moderate' level. It is all about skill in spending.
1:41 Just a little clarification. You can't take out 25% of your pension fund tax free. There is a cap of a smidge over £250k. But that cap will only matter if your pension pot is over £1 million.
I'm not sure the Lisa calculation is correct either.
You cannot contribute more to the Lisa beyond the age of 50 so by the time this person is 44 they will be contributing the maximum of 333.33 per month into it as they can only put in a maximum of 4000 per year. At a 6 % growth rate, I can't see them having much more than around £300,000 by the time they are 60.
For the LISA example, the “overflow” goes into ISA
Thank you, @sr13500 - you are right. After age 50, I assumed the contributions continued, minus the bonus obviously, into an ordinary S&S ISA. All was explained I. The previous video
The retirement living standards seem absurd to me, I don't spend £31k currently while in full time employment, and I would barely classify myself as having a 'below moderate' lifestyle.
I see them quoted often, but surely they aren't accurate?
I’d recommend you to look how the costs are broken down. It might be you don’t go on expensive European holidays or spend less on new cars.
Hi, it’s quite interesting on what people view as the norm.
State pension is the minimum but that is below the working wage.
12k a year would be a basic living std anything else is gravely.
Top tip might be to find a partner or live with relatives!
Take care M.
Thing is, you're spending most of your day at work spending very little during that time. When you're retired, unless you're watching TV all day or something else that costs next to nothing, then you'll need to spend.
I do actually agree though, the figures are too high. I estimate having a pension of £24K per year would give you £650 per month spending money after bills etc. Not bad really.
Im 60 and after tax etc have a yearly income of £36000 per year. Me and my wife live a comfy life on this. Based on the PLSA figures to have the same in retirement I would need £59000 per year. £23K per year more ? £2k a month more. No chance will i need this much. Also from the £36000 figure comes out £9600 per year going into a pension and £2400 into ISA. No way do i need £59000 as I haven’t even got the pension or isa payments to consider.
Even for the minimum, single person, the Retirement Living Standards (RLS) gives "Up to £630 for clothing and footwear each year." In the last year I have spent less than half that. However, everyone will be spending differently, so the RLS is a rough guide.
Very informative Pete - thanks
How do you forecast income tax thresholds- do you raise them at 4% a year too (from 2028 after the current freeze ends) ?
Some conversations for people with a pot of less than 100k would be helpful.
Really enjoy the videos
I'm interested in becoming a financial adviser as I find the topic interesting and feel I'm passionate enough to enjoy it as work within the field. Where would recommend I start
Wow, the starting pot funds are very high, much higher than the average persons fund pots. However the principle is sound.
Hi Pete. I’m a little bit confused by the graphs towards the end, why don’t they go down significantly when we start to draw from them. Is this down to the interest rate keeping them up?
I retired at age 53, so I am in my early 60s. Many of them resisted me because they couldn't understand the idea of not working if it wasn't necessary. I considered the phases of my life. I worked very hard to achieve what I have now, but in my last years, I owe it to myself to "stop and smell the roses." In my instance, I departed the nation after retiring and currently reside in Latin America. It made it possible for me to appreciate my new surroundings while escaping all the bad things that were going on in America. Nobody that I know of regrets retiring has yet to come to me.
Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than a million dollars by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like Kathie Daisy Bosco who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
I have the NHS pension, cash ISA, and a LISA which I drained to zero for a house purchase this year so have to restart with that for a pension. I want to retire at 60 and am in my early 30s so might start a stocks and shares ISA after I complete my house purchase rather than a SIPP. My current salary is more than the single person comfortable category, but in the city I live I feel more moderate rather than comfortable as it's expensive to live here. I would have thought at least 60k net would be comfortable....
You're better off buying added pension through the NHS pension scheme. £60k a net is £5k a month - consultant level of after tax salary, and you want that as a pension!! Are you mad?
@@tancreddehauteville764 Im a GP, not a hospital consultant, but I want to retire early and can only take the NHS pension at 68. I I need something else to cover 8 years
@@tancreddehauteville764I wouldn't say they're mad, just someone who likes spending money. More power to em I say.
Hi Pete, thanks as usual for a great video. I really liked the graphs and I wish there was some similar function in Voyant to play with. The reason is that I am one of many who are in the run up to retirement(I suspect your largest demographic!). Your video, though very interesting, doesn't represent those who come to Earth with a bump in their 50s and are now wondering if Pension/ISA/LISA's work the same way as you have shown over a shorter timescale, especially where tax is concerned a few years down the line. Are there spreadsheets available which could show this please? Thanks again!
I love this channel. Ive learned so much about savings, tax and pensions id be lost without it. However, please try to limit the number of ads. I counted 9 breaks in tbis video. Some every 2 or 3 minutes. Finance is a complex subject that needs full attention to understand, the ads ruin that.
Noted, though the number of ads is less in my control than you might think. I’ll look into switching off mid-roll ads. Thanks for the heads up
General rule for retirement planning AFAIK is if you're a higher or additional rate tax payer the pension is the best route to go. If you are a lower rate tax payer the LISA makes a lot of sense. The ISA is handy if you want to retire early and bridge the gap between your target retirement date and the date where you can access your pension funds.
.....and bag a DB pension if you can....
Hi Pete good video again, what I found amazing was the lump sums accrued in the various pots over 30 years. Those are the sort of illustrations kids should be shown at school as part of life skills lessons, as well as the true cost of debt.
What I do find curious is this desire often to show almost nil impact on the money that’s been saved, what is the point at age 90 having £600+K still especially if you have spent pensionable years just counting the pennies and not enjoying life?
To me having drawn down to about 25% of the pots value at 90 seems a much better plan. Most of us won’t get to 90 as the stats show
Interesting video, but shows examples of how curves work out if you have your funds in a single pot (Isa, LISA or Pension). Could you do a video with an example where say 40% of one of your amounts is in ISAs and 60% in Pensions - how would this affect the curves (would you burn the ISAs or the pensions first)?
I am retiing early 57, 10 years early have a mix of ISA SIPP have locked in a lot at 5% in gilts
180k ISA 430k SIPP will be UFPLS at personal allowance for me 20k year tax free with blind persons allowance so only top up with ISA when required, this method means I am paying no tax for 10 years pulling money out better than being hit with tax at state pension age retirement
At aged 60 with no pension to speak off and a lump sum from downsizing, I think the isa maybe the answer?
Need to give you a call as I live in Cornwall anyway.
Are you still working?
If yes, then you ought to have time to save into a SIPP or occupational pension.
@@johnporcella2375
I have recently started an occupational pension, but it’s going to be to little to late, and also with the tax liability that pensioners will endure now the state pension will be taxed in the next couple of years through fiscal drag, I now wonder if a pension was/is the right way forward.
What if you set up your ISA into dividend paying shares that gave you an income of 20k per year but also went up with inflation.I know dividends are not guaranteed but would setting it up this way would mean you are not drawing your ISA .Also have Final salary and defined benefits.
I thought employer match at minimum 3% was mandatory? Shouldn’t that be included in the examples?
That assumes you’re employed! I wanted to avoid including employer contributions so as not to muddy the waters. But in the previous video I assumed an employer match, which if anything, slightly over-egged things
It would be interesting to see the back calculated results from a hybrid of these models. Some sort of formula that buys a little more of stocks below the median cap value and a little less of those above.
The crazy £40k+ for a single comfortable lifestyle always gets me. I'm early 50s will retire soon with a £400k pot that's more than enough. I will spend £20k this year and that includes the 2 big trips to Japan I had, plus doing loads of other stuff. My paid off mortgage helps of course, tho I'm still in my starter flat... Dunno where they get this £43k from!! Maybe down London way eating out in posh restaurants all the time you'd spend that...
I’ve said the same many a time, these studies have pension incomes above the average wage , yet in retirement for most the biggest monthly expense, a mortgage has gone.
Where do they get these numbers? I’m 64 retired still with a mortgage scheduled till 2034, but my wife ( still working) and I overpay the mortgage so it will be cleared in 7-8 years.
My income from draw down is the same as when I was working (£30K yr gross). In 5 months a works DB scheme starts and I’ll be in an even better position, 12 months later full state pension, these will allow me to reduce the monthly draw down. If I wasn’t paying the mortgage then a monthly net income of £1500 would be manageable, everything above that is the jam on top.
@@guyr7351 Precisely! When I get to draw the state pension that will completely cover the essentials, so what remains of my private pension and ISA is indeed the jam on top.
I agree. I live in Surrey and my council tax is just over £4500 per year. So I may need a little more than you. But for £40k I'd live like a king!!
You won't be able to retire until 57, so not 'soon'.
@@mjribes So your house must be a mansion! Have you ever heard of downsizing?
What happened to the tax free cash in the option where all the pension withdrawals are taxable? Are you assuming that the tax free cash was spent at the start? It's hard to see how that's a valid comparison as the UFPLS option does not include spending a huge wad of money at the start?
how about looking at the same problem - target lifestyle amount to spend - but calculating the most tax efficient route? would it be a mix of ISA/pension?
All academic, I'm afraid, until the budget takes place at the end of October.
In what way? What are you anticipating might happen? The end of pensions / ISA? Unlikely. There's always another budget around the corner.
@@MPD90 I'm anticipating changes to pensions and, potentially, ISAs too. Yes, there is 'always another budget around the corner' but Labour have made it clear that they are only interested in 'working people', which Starmer has defined as people without savings. Furthermore, it they are prepared to take heating payments from the elderly with one hand and then give out pay rises to militant unions with the other, its clear to me that, more than usual, this budget is going to be bad for people with pensions, ISAs, savings etc.
@@petermorris3665it isn't the unions that are getting pay rises, it's working people that haven't had a decent pay rise in over 3 years, meanwhile inflation hit double figures.
I've already used one cash LISA to buy a home. Am I now able to open a stocks and shares LISA with a different provider for retirement or does HMRC not allow that? Great videos; thanks!
For me, Autoenrollment means I and my employer contribute to my pension, they adding 3% and me 5%, anything I earn over this contribution and the 40% tax threshold goes into a SIPP for 40% tax relief, then I max my LISA for 25% tax relief (or 20% tax relief and a free 5% from the government), the rest I want to save goes into an ISA, with a couple of premium bonds for the monthly thrill of the draw/an emergency fund.
Is there any specific reason why you are paying 5% when your employer is only adding 3%? I would take those extra 2% and throw it into the SIPP as well.
@@Mikas60that's the UK minimum pension contribution for a work pension (as opposed to a SIPP)
@@razza1887 I should look into that cause never even realised there was a minimum for the employee. Thanks for the info.
Don’t forget that salary sacrifice into a company DC pension is also an easy way of reducing taxable income overall and saves on NI contributions as well. Also, you may find that your employer will ‘give back’ some or all of their NI savings in terms of additional contributions even if they don’t ‘match’ 1:1. (As an example my company does 5% basic plus 3% match but then gives an additional 0.1% for every 1% more I put in. This isn’t matching but is still ‘free’ money so may be better than a SIPP and easier from a tax return perspective also.
All this stuff is boggling my mind 🙈. I am saving into a pension with added employer boost. I also paid all my bonus into my pension this year so I didn't pay any tax on it for this first time this year. I honestly wish I had realised paying all my bonus into my pension meant I wouldn't be taxed on any of it and it was possible years ago
If I have a lifetime ISA, could I hold back from paying anything into my pension from 57, then assuming I earned over £60k or the allowance at the time, then drop the full 3 years worth of full pension contributions into my pension from my LISA using the backdating process, get the 20% uplift from the government and have the 25% of that tax free to withdraw as well as it being protected from inheritance tax for my daughter. I am 37 atm and plan on working until 65, then starting to withdraw from my pension. Expected to have £300k in my LISA at 60 if I continue £333 a month plus Government 25% up until 50 years old then leave it to compound, based on a 7% average return on 100% equities.
Love the videos. How do you get a LISA pot of nearly 700k? If they save the max of 5k p.a. between 30 and 50, that’s only 100k. Add on 6% for the full 30 years to 60 (an overestimate) and it’s 574k in nominal terms. So a long way short. Would be good to know what I’m missing, thanks!
I assumed the contributions carried on into a normal S&S ISA after age 50.
FTSE all share over the last 24 years has not even made 2$ pa growth. So that is the stock market average. 6% is just a lie.
@@MeaningfulMoney thanks for explaining
@MeaningfulMoney I still only get to around £ 362,957 even if I add further contributions into a normal ISA from 50 to 60 years. How do you get to nearly 700k? What am I missing?
is this tool available to play with? to try some alternatives like how much saving and for how long, and retirement age and how that affects things?
Set up your own spreadsheet. First, use it to calculate your own costs (values here are a nonsense). Then do projections. But do not rely on 6% growth- that is a fiction. FTSE all share over the last 24 years did not make 2%.
i haven't finished watching the rest of the video yet so it might not be an issue but if not, instead of saying for example, you need £43,000 as a couple for a moderate lifestyle, these numbers shoudl be given before tax. obviously, i know that it's tricky since we don't know how the pot is split in a couple so the possibilities are endless to estimate the income tax correctly but even if split 50/50 as a basic assumption, this would still better than these numbers. it's just a suggestion as i assume a lot of people don't know how to figure out how much they would need combined to get to these numbers.
Is this aimed at the upper quartile of the population your figures for the fictional example are huge ? at 65 I have £420k pension and £90k Isa, but this is seems not sufficient according to your calculation, but for us its perfectly ok considering state pension on top, or did i miss something .?
Im looking at retiring in a couple of years at 62 with similar pots. With state pension I reckon it will guarantee £35k per year index linked until Im too old to care.
Question.
Can I withdraw the tax free portion over a period of time, say 10k per year tax free until the tax free portion or life time tax free amount is exhausted? Only after this pay tax on withdrawals?
Yes, you can do that. Not all providers can facilitate it, so check that yours can…
I'm struggling with the initial figures. What pensions offer 6% growth per year? Admittedly I'm not an expert on pensions. But my understanding is as a rule of thumb pensions offer about 4%. Whereas a stocks and shares ISA can over the longterm give returns between 6-10%.
What makes the difference is what’s inside the pension or ISA - the investment fund. So if you’re 100% invested in equities through funds in your pension, you’ll likely average 7-8% per year, but it’ll be a rollercoaster ride - that’s the price of entry as an investor.
@MeaningfulMoney Thanks for clarifying 👍
How does this LISA vs SIPP work out for a higher rate taxpayer?
You’d be even better off in a pension while saving. When it comes to taking money out, the examples in this video would be relevant because you’re unlikely to be an HR taxpayer in retirement. But if you are, then you’d obviously pay some more tax on the way out. Recommendation is that same no matter what your status - try to have both.
Hello Peter. I have got it wrong all along. I have done ISAs for possibly forty five years so have lost an awful lot of money. I have had the benefit of being able to access some money when i needed it. I am now very old and have never drawn from the ISAs for any income. Am i correct in saying that if i now put this lump sum into a pension it is outside my estate for inheritance tax purposes but stiill available to my family and not lost on my departure from the financial merry go round!!?.
You don’t state whether you are working but assuming the ‘I’m very old’ comment means you’re not then you are likely very restricted on what you can pay into a pension now. If you have already started to draw down from the taxable portion of your pension you have triggered the MPAA (money purchase annual allowance) so can only pay in a total of 10k per year (if you have relevant income). If you’re over 75 then I believe you don’t get any further tax relief but can (if your provider allows) pay in upto your limits. If you have no relevant earnings then you’re limited to a total of £3600 per year (or £2880 before tax relief is added).
Hi when you talk about the ISA do you mean cash ISA ?
No - stocks and shares ISA.
@@MeaningfulMoney thanks, i know where i flawed in my lifetime isa calcs now, i didnt think about continuing to invest in a s&s isa after age 50
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that's well prepared for any eventually, that's how some folks' been an impressive average return of $150,000 every seven weeks over the past four months according to Bloomberg.
Christine Maloney-wilson is my trade analyst, She has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
She's mostly on
Whatts~Apk
+1672
386
You are correct. There will always be someone picking holes in your videos, ha ha.
In this case, me. I am very happy you have moved to adding on a fixed sum rather than a fixed percentage every year (£10 vs 10%) as I believe this to be much more achievable (for example, by year 20 adding £10 a year has the monthly payments at £390, rather than adding 10% to the previous year meaning monthly payments of £1,345.50, and £3,490 per month in year 30). However, when you are calculating out the Lifetime ISA example, are you taking into consideration that the annual deposits are capped at £4000?
And if this limit is not increased, that cap will be reached after year 14. Meaning you could not put in anymore than £333.33 per month, and not the £490 per month of year 30 in the other examples. Has than been taken into account?
Now sure, you can maybe assume that this limit will be increased in the future. But then look at the help to buy ISA. It was abandoned. And so could the lifetime ISA suffer such a fate. At which point it will likely continue as a legacy product, with whatever the limits are at the time of abandonment. And so I don;t think you can count on that at all.
Maybe I got it wrong though, and you did cap deposits to £4k once that amount was reached. Can you clarify?
I don't think he did. I also don't think he took into account you can't contribute after 50 either. I think with those 2 considerations you would struggle to make it past £300k by the time you are 60
It is for these reasons that I believe it would be better to remove inflation altogether and then the numbers are also more relatable.
Your a star explaining pensions to us all. Stick all your earnings in a pension then live off tax credits, LOFL
Hi,slightly off topic here,would you say it’s too late at 58 to buy ETF’s eg voo ?
Thank you.
I think the living standards amounts are pretty ridiculous, they are above the average wage(after tax) yet most people spend less as they age. Does you average couple need 40-50k a year at 90? These figures are probably there to scare people into working longer.
Recent studies have shown that spending (on average) does not significantly reduce as we age, but rather that what we spend it on changes.
@@MeaningfulMoneydentures, Brazilian butt lifts, dementia care will consume all of us in our 90s!
@@MeaningfulMoney Not true! Although I am trying to spend more (I am over-funded) my needs and desires have shrunk over time. What is there for a 90 year old to spend on?
@@Tensquaremetreworkshopcare fees. Very expensive
@@andreajdarling Only if you have the money. If not, the state pays.
Why one v other.
Pension for age target
Lifetime ISA for goal target
ISA for a specific target for 5 years plus from NOW.
When’s the 2nd book coming?
i like these assumptions; they seem realistic
Can you still pay into a pension if you've anything out? Meaning, say I took out some money using UFPLS, can I still keep paying in
UFPLS triggers the Money Purchase Annual Allowance. Currently that would limit to £10k gross going to pension, if your earned income is above that.
Look up MPAA (Money Purchase Annual Allowance) for more about that.
Yes, subject to the Money Purchase Annual Allowance limit, which is £10k per year
But, if you have no earned income, then you are limited to £2,880pa, which is increased to £3,600 by the HMRC rebate.
According to moneyhelper People with a gross salary between £40k and £50k would like to have around 60% of their current salary in retirement.
Generally a useful video, but I think it inadvertently promotes LISA over Pension in a quite inaccurate way. While I imagine it was mentioned in the previous video, I don't believe it is mentioned in this video that the pension figures assume a basic rate tax payer, although you do mention it assumes no employer contribution (although with the exception of the self-employed, employer contributions are of course a legal obligation for employers). So in effect the numbers in this video apply a heavy handicap to the pension option. Realistically the majority of people will be able to get a proportional employer contribution to their pension, and many may also be higher rate tax payers. Either (or both) of those would allow the pension option to very decisively outperform the LISA option.
Rachel Reeves will get a good chuckle out of this.
She has nothing to laugh about at the moment. But then she is planning her career after politics. Big bucks for keeping the establishment happy.
Oh you mean Rachel Reeves NOT the economist.....😅
Is that nearly 1.5 million in lisa isa and pension?
If thats whats needed to retire then thete will be a big shock for lots of people
He means just one of the options.
I agree that it's easy to pick holes in the parameters but they are only a guideline. That said, I think it would be better to ignore inflation and simply reduce estimated growth rates of the investments:
1. It's much easier for people to relate to results using current day values. A £700k pot sounds pretty big on today's terms but it will be small in 30 years time
2. Did you inflate the PLSA living costs by inflation? That £31k when inflated by 4% comes out at nearly £103k in 30 years, so even £700k isn't going to last very long.
For the basic taxable pension option, you have just ignored the tax-free lump sum, so no wonder it comes out worse than UFPLS. Where did it go? Even if it was taken in full, right at the start, it should have been invested somewhere and used to offset the taxable drawdown part (I accept that the result would still have been worse).
I do agree with the benefit of the LISA but in real terms it's still going to be a very small proportion of the funds needed. Important and valuable nonetheless.
I don’t find value in estimates and calculations that go to 95 years old and beyond. Use average ages not extremes. In addition to this the state pension will never deplete! All my personal calculations run up to 85 years old and this is based on how long my family members lived!
So what happens at 85, you just hope to die or something? And the video shows pots going to zero when they can no longer support the example lifestyle.
@@MPD90 same what happens to 93. As always the state pension is always there at any age but in my case I also have properties I collect rent. So you never go to zero even if the pots diminish at 85. Never plan for the 5% of the male population that survive to 93 but plan for the 95% of the male population that survive to mid 80s.
@@porschecarreras992cabriole8 But you have planned for it. You literally just told us your plan. Rental properties. If you were legitimately planning to 85 and no further then those properties would be liquidated and the funds spent by then.
@@MPD90 state pension is the obvious plan because you don’t need a lot of money in your 90s beyond doctors. Properties can be liquidated at any time and are not part of my current pots. I have no children that I need to worry about inheritance either.
@@porschecarreras992cabriole8 Except you just told us that rental income is your plan, so don't backtrack.
It's likely you'll have to redo these soon, Pete
those PLSA figures are insane. i don't think i could spend if i attempted a brewster's milliions style spending spree. is it all assuming full home ownership too? even more ridiculous if so. edit: think they do assume home is owned as they talk about maintenance of property.
Pete I can't see where your figures come from, I have saved into a pension since my early 30's at £100 per month to start then £200 I am now 67 and haven't got anything like the figures you quote.
My wife’s boyfriend suggested the pension option to me.
What your wife's in law?
I tried to encourage our graduate living at home to save £400 pm instead of paying for room and board it didn't work lack of self discipline meant only £600 was saved, so we take the money and ISA it shame though in a LISA that bonus would be handy.
Though the lack of competition in the LISA market means charges are higher than a straight ISA that's not really presented in your video and pensions generally have at least 0.15% platform fee plus the fund charges whereas an ISA can be had for no platform fee if you self manage.
Likely in the budget will be measures to negate the current ability to pasd on wealth via un accessed pension funds its sn easy and obvious inheritance tax avoidance method that is sure to be limited by the government of the day.
At least you tried. Persuading a young adult to put money into investments is tricky as it is delayed gratification. Dodl from AJ Bell I think is the lowest cost Stocks & Shares LISA. It is a shame there are so few providers of them.
If the youngster doesn't do well with their money it's best to charge them "rent" and put it in a savings account to be used only as a gift to their house deposit.
I’m confused by the figures - are they saving £200 into each a month? Or £66 in each 🤔 because those pots by 60 seem insane
Is it me or can I not see anything in the PLSA Website that assumes you have to pay rent out of your retirement income?
They assume you own your own home when calculating their figures.
they talk about house maintenance costs so i think 100% home ownership is assumed. makes the large numbers even more so.
always disappointed how everyone overlooks the Lisa, got so many friends who are purchasing for first time, none of whom have bothered with it.
The low maximum property price and the fact you can't withdraw without a penalty makes it risky to use for buying a home (at least in London).
£59k is way beyond just comfortable. I’m pretty sure me and my wife live on less than that now and we spend £20k a year on holidays. £59k a year affords a seriously luxurious lifestyle.
I know exactly what I spend. I have run a spreadsheet for 35 years. And you are absolutely right. I try to spend more (I am over-funded) but cannot reach £59K despite trying. And I usually have 3 holidays a year. It is all because I avoid wasting money on things like appliance cover, road assistance, servicing, PCP cars, and other such senseless money drains, and always requiring value for money. Average is for the average person- and who wants to be average?
@@Tensquaremetreworkshop if your mortgage is paid and you have no debts then yes you won’t need 59k.
I've never had £59k net, nor will I.
@@MrAlwaysBlue£59k is for a couple net. For single person is £43k
It is nuts tbh, my wife and I might spend £45k/yr now but £16k of that is mortgage payments which will be long gone come retirement.
Lol… we live off a private pension of £44k pa (gross) as a couple, and have another 5yrs and 7yrs respectively before we can claim state pension. We also have £500k in stocks and shares ISA savings, and own outright our £600k home.
We also support our 3 grown up dependents who still live at home.
These figures are way less than those you mention, and we live very comfortably thank you. The figures you mention are way too high in my humble opinion. Unless of course I suppose you want 6 month foreign holidays every year, and a new car every two. Then yes you’ll need those figures you put forward. 😂
@@Piner5074 personally, I don’t agree with including your home as an asset, it’s not like you can spend that, in your case, £600k. 🤷🏼♂️
@@garythreadgill8913 think you might’ve missed understood…
We have around our house, plus £500k in liquid assets, and hence receive income off that within tax free gains ISA protection, they’re stocks and shares ISA’s and last year earned 7% even in a non optimal market.
That interest, along with no mortgage and the pension, is more than enough to easily live comfortably supporting our kids, although not exuberantly.
@@garythreadgill8913it is an asset once it’s paid for. You can sell
It move to a smaller place and then have free cash, even rent a smaller place with a large sum invested.
Obviously depending where you live you could have anything from 300-400K if you sold the house. That combined with pensions gives you a hell of an income
@@garythreadgill8913 After the budget that £600,000 home will be a council tax liability.
Are you assuming the retirees save in only one of the mentioned ways to save ( maybe I am being daft or missed you saying this)
Pension then S&S ISA for me. I do hope that Labour keep tax relief the same for salary sacrifice as a higher rate tax payer
My question is, while these hypothetical people were saving hard for their pensions and getting to 60 or 67 with huge ISAs (by my standards at least), how were they affording to buy a property? They didn’t touch their LISA till at least 50. With the price of housing as it is, I’m not sure how realistic these scenarios are.
I haven't got any ISAs
Never had enough money to be able to save in one 😮
Its a large increase for a couple from Minimum to Moderate pension income, nearly double Why is that? I would have though 'moderate would be say £35k
You can look up how these costs are broken down. If I recall correctly, the moderate one includes expensive holidays for example.
I have 80k in my pension and have worked hard how on earth do you get 600K ?
32 years (18-50yrs old) LISA, into a compound interest calc, starting with 0 and adding the max every year, at 7% return = £617,978 (so saving £333 a month basically invested into a standard globally diversified, low cost index fund). Add more to other accounts as the £ devalues to keep up with inflation as your pay "goes up".
@@PaulB-q3d All these funds and schemes did not exist back in the day most older average earners of my age will only have a pittance in there pensions , good advice though for younger workers just starting out, whether they can see the future and make plans is debatable.
All these schemes are based on forecasts, I can remember pension advisors telling us to opt out of serps back in the 80,s to get fantastic returns of 100,s of thousands that was optimistic BS that only made money for the pension advisor now I have a permanent £20 a week shortfall on my state pension from a now lost 5k private pension. The future is not predicable.
Time for compounding to work and employer contributions.
@@PaulB-q3d 7%? Really? FTSE all share over the last 24 years has not make 2%.
@@Tensquaremetreworkshop But that’s
Just adding to the information - No National Insurance Contributions on pension income, only income tax to be deducted
Crikey those numbers are very high. We need way less than this, but I guess it depends totally on your lifestyle.
I agree the figures are quite high. I do wonder if this research and the associated figures are promoted by the finance/investment community, who benefit from more funds under management fees.
That’s a fair question, @nasirmahmood5684. I had nothing to do with the PLSA figures, they were one of a few options I could have chosen. I’ve built a career on helping people to NOT need a financial adviser, despite being one myself, so I can confidently say that fees on investments are not main driver for me!
I think you need to post again after labour's autumn budget, as they are looking at taxing the 25% tax free lump sum and also looking at limiting the amount of money you can build up in an Isa. What i find irritating all these are projections which work on the assumption of a % growth each year but many of these projections don't account for inflation. If my investment made 7% per year but inflation was running at 4% that year my investments in real terms would have made 3% last year 2023 inflation reached 7.1% and in 2022 inflation peaked at 11.1% in october the highest annual inflation since 1981 in both these years i would have lost out too inflation. The average rate of inflation since 1989 to 2024 was 2.83%
My conclusion is you would have achieved growth both in a pension and an Isa but it all depends on what fund or group of funds your pension was invested in. It would be a similar story with an isa had you invested in tech or a US tracker you might have a million pounds plus in your isa.
@@michaelmayes9689 To be fair, he did account for inflation here. And to quite a large degree as well. He suggested a figure of 4% inflation was used, and so actual calculated growth was only 2 or 3 percent.
So the final numbers used were in “todays” figures.
Pete can you not just use 20k a year from your tax free pot and then up to your personal allowance 12570 from drawdown. This would give you 32570 pa tax free?
That's what I'm thinking. However, you would need a big pot to withdraw 20k tax-free per annum for any length of time.
@@MrAlwaysBlue that’s true. I’m fortunate enough to have the max, so would do me 13 years ish. However I eat and drink too much, so might not need it that long 🤣👍🏻. Good luck with your retirement 👍🏻
@dominic8218 You can also take a quarter of any further growth tax free. So you may never run out of tax free cash.
@@MrAlwaysBlue good man - thank you 👍🏻
@@MrAlwaysBlueAgreed. As per Pete's example, retiring at 60 would mean £140k until age 67 and that would require a pot of £560k, so at age 67 you would have £420k remaining, fully crystallised (no more tax-free). I suspect that is why Pete is suggesting UFPLS.
This daft idea, "pensions are crap 'cos you might get tax free paying in but get taxed taking out" is still doing the rounds! People don't seem to get the fact that paying no tax, especially if you're a higher rate payer, on the way in means a much bigger pot with more power to reap the benefits of compounding over 40 years is incredible. When you pay your money into an ISA you have to pay tax on earnings before you get the money to buy into the ISA so you have to make up for the 20% tax loss, whereas employer schemes will take the pension payments pre-tax, so pay in as much as you can afford even bonuses should be put through as well so you don;t get them hammered for tax.
I have pensions and ISAs but pensions are such a great way to build wealth while you're working. I'm a high rate payer so I claim the full relief but I have every intention of dropping back to 20% rate in retirement thus my pot is even bigger and gets hit far lighter when HMRC comes for me and my pot in retirement.
No figure can be put on what you need in retirement. I've been retired since 64 now 67 so I know. Retirement income is purely what you require and is individual to you
I don't need 40k , income is how you spend remember everything you buy say to yourself do I need it will I use has a purpose. Sorry these figures are ridiculous and puts strain on you. Properly planned sensible spending is the best retirement
I turned 40 a month before LISAs became available 😢
Don't worry bud, you can only contribute up til 50 anyway with a maximum of 4000 per year. Your pot likely wouldn't have the time to hit the critical mass that is suggested here. For me I think pensions are the better option as someone in their 40s anyway, especially if you can salary sacrifice your contributions.
2% growth over inflation? My pension pot has matched inflation over the last 10 years.
Then you need to find out why, urgently. Measured by UK CPI that’s only 3% per annum compounded over the last 10 years.
If your pot has only managed to match inflation, you are probably in the default fund or a very conservative fund. I would suggest looking into all the options offered by your private pension provider and switch to a slightly riskier, but more profitable fund. If none of the funds, that your provider has, manage to outpace inflation then I'd highly suggest looking at other providers. Most providers have public records for the performance of each of their funds.
Transfer you funds to a SIPP and learn to invest
I know these are just examples, but the figures are way beyond anything I am likely to accumulate! It’s allways the same on these types of channel. Most 30 year olds would not be able to save £200 a month or even be thinking about pensions. By the time you start thinking about them, you have no time to accumulate £4-500k.
That could be the case, but it is useful information to learn. I only started saving into a pension when I was 55 years old. I don't have these values in my fund, but it is useful information.
Hi, if only 20 or 18 year olds watched this or had any interest in it.
Luckily I did pay into a DB pension from 18 thank god or those people at work who new I might like to retire at 50.
Still can’t afford it but it was a good idea.
Take care M.
What you really need to know is how much you need to pay into your kids ISA to give them a pension when they hit 60.
Or how much to put into a LISA to give them a moderate pension.
Take care M.
@@markeh1971 I try with my 30+ son, but he just says, I just don’t have the money Dad.
I don't believe this is true. I only started to contribute to my retirement at 33, I am making sacrifices (rarely eating out, trying to do fun but low cost activities, etc) in order to put more money into my retirement so I can catch up to where I'm supposed to be. I'm doing my employer match and an extra £200 into a SIPP. I've done multiple projections, and even in the most conservative case I would end up with about £800k by 67.
Bare in mind I live and work in London, and earn significantly below the median wage for London. So unless you are earning the national minimum wage, while living in London, I think you are able to accumulate those amounts by making small sacrifices to put some extra money into your retirement.
Almost impossible to get £600k in a lifetime isa surely!
I thought his name was Pete, not Shirley!
32 years (18-50yrs old) LISA, into a compound interest calc, starting with 0 and adding the max every year, at 7% return = £617,978
@@PaulB-q3dYep and it can't also possibly be worth more than an ISA by the same metric of age 60. A LISA stops allowing you to invest at age 50 under current rules. As a first house purchasing mechanism, it's ideal but for retirement, no way!
BIG PROBLEM - Your 6% growth per year. Over the last 24 years, the FTSE all share has not even made 2%. (3000 to 4550). Yes, some shares have done better- but which ones? Chosen beforehand, of course... Stockmarket growth is a sham.
FTSE companies pay out more dividends along the way though than stocks such as the S&P 500 which is why growth is lower.
Which is why almost all ‘advice’ is to invest in a passive global tracker to get global diversity. Focussing on something like the FTSE all share is not diverse in that regard. That said, even though in recent years it’s been massively outperformed by the US market the annualised return of the FTSE 100 from 1984 to 2022 was still 7.5% (comparison albeit different timeline is the S&P 500 was 11% annualised from 1992 to 2022 and the global markets around 9% over the past 25yrs - albeit with some very high volatility in the mix!). So the 6% is entirely correct and feasible based on historic market returns over the past 25yrs and beyond
Bring Stephanie Janis Stiefel on the show. She changed my life Financially I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Stephanie Janis Stiefel, for her expertise and exposure to different areas of the market.
I know this lady you just mentioned. Stephanie Janis Stiefel is a portfolio manager and investment advisor. She gained recognition as a former employee at Goldman Sachs; a renowned investor she is. Stephanie Janis Stiefel has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.
How can i reach her, if you don't mind me asking?
Well her name is 'STEPHANIE JANIS STIEFEL'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Been debt free for two years thanks to Stephanie Janis Stiefel. So sad to see my friends in their 40s with car loans, mortgages and credit card debt.
Scam - please don’t google or UA-cam them.
Despite all the financial struggles I and my family faced, everything is finally falling into place! $47,000 weekly profit and riches I'll always praise the Lord
Just DCA into BTC, store in a cold storage wallet and go live your life working hard. This will out perform ANYTHING!!!!!!!
Voodoo Economics
You haven’t taking into account Rachel Reeves. All saving funds will be decimated.
Rubbish.
The big difference for me always comes back to the fact that the government controls when I receive my pension, since I am 30 years away from retirement, and the government are totally untrustworthy, I will save all my money in an ISA, until they put a maximum contribution allowance on that too, of course.
They do our a maximum contribution on it - £20,000 a year. I wouldn’t let your politics dictate your future wealth - pensions ALWAYS win in terms of pot size and tax-efficiency, all else being equal.
@@MeaningfulMoney I meant lifetime contributions, as I've heard it being capped at 100k is a possibility.