I have just run the same L&G calculator 17/03/2024 with same figures. So when this video was made the figure was £5325, Today 3 years on, the same figures would give you £8100 a year for life - that's £2775 a year more for life or an additional 52% more per year, every year until you die. Rates have gone up amazingly and this is the year to take an annuity before interests drop back resulting in lower figures. I will come back in a further 3 years time to see what the L&G calculator shows for the same figures in 2027. Interesting stuff - Subscribed.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
One crucial aspect of earning profits from stocks is to avoid being frightened and selling them prematurely. It is vital to understand that stocks should not be treated as mere lottery tickets. Consider acquiring the assistance of a financial advisor to navigate your investments.
I appreciate entrusting investment decisions to a coach whose expertise centers on leveraging risk for its asymmetrical potential. Over the past two years, I've made over six figures working with this coach, benefiting from their skills in navigating the market.
@@mariaguerrero08 Mind if I ask you to point at how to reach this particular person assisting you? Seems you've figured it all out unlike the rest of us.
“Camille Alicia Garcia” my financial advisor, holds a broad understanding of portfolio diversification and is renowned for her proficiency and expertise in the financial market.
The key to making money in stocks is not to get scared out of them. An important key to investing is to remember that stocks are not lottery tickets.get a financial assistant
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.........
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge/professional
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $850k with the help of my advisor from an initial $120k investment.........
There are a lot of independent advisors you might look into. But i work with Stephanie Kopp Meeks” and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her.......
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII..........
There is no substitute for putting the effort in to understanding and controlling your own expenditures and your various sources of income. This approach is simplistic and misses out the importance of understanding and controlling expenditure
Episode 5 of the Pension Income Special series - what income a £200k pension pot could provide. We also look at inflation impacts, which jumped to just over 5% in the space of one week from filming to release.
I'm 37 and starting to worry about being homeless once I'm realistically too old to work, as I'm on a relatively low salary and don't own a property. I've always paid into a corporate pension and will continue to do so but I don't know if it will be enough as rents and property prices will only keep on rising. Unlike my salary, as I've always had trouble taking on more responsibility. I'm currently trying to track down a previous pension, which is proving difficult but will keep at it. Then will do some calculations.
Im old enough to remember the winter of discontent . Inflation hit 18% in 1980 (UK). I don't expect it to get that high again but it can go well over this 3% people keep throwing around. Maybe im missing something but what possible reason is there to spend a £200,000 pot to take £16,000 a year for a decade? (total£160,000)
Another great video and very informative. Sorry if this is something you have already done..... But could you do a video on how much you ideally should have in your pension pot by the ages of 30, 40 and 50...like would £100,000 but a good target to reach by 50? Thanks!
I'm not an an adviser and all imo... Even in retirement (for drawdown) I think people don't take enough risk. You should be able to achieve a target drawdown of 5-6% so long as your risk is high enough and you adapt your drawdown to reflect market conditions.
Thanks, Helena for your videos. Much appreciated. I'm thinking of withdrawing from my company's pension and/or my SIPP this year and am considering between drawdown and UFPLS. I definitely do not want an annuity because of the low interest rates. Could you comment on the difference or do a video on this?
Worked for several companies over the years. Have a pension (some small) of different types, proper corporate,people's, etc. Any advice on how to handle the situation?
Great video. I have retired a few years early and my state pension will start in 3 years time. Can I draw down a higher amount over the next 3 years to use up my personal income tax allowance and then reduce the drawdown when my state pension kicks in? Many thanks
Glad you liked it. One of the great benefits of drawdown is the ability to take a flexible income, so you can draw down more now and then drawdown a lower amount once you get your state pension. You need to be aware of any impact a higher drawdown rate now may have on your pension savings and whether your remaining pension pot still provide you with the income level you want once you get your state pension.
If they are like the local government pension then yes, but only before you start taking the pension. It’s a final salary pension and they base that on the salary you have or had if you have left. So where there has been no pay rises for cost of living ie when we had austerity based pay freeze, then your pension is reducing by whatever the gap is between inflation and the annul cost of living rise. Once you retire then payout is linked to inflation. However the government keeps attacking the pension so no guarantee they won’t have fubar’d it up by the time you retire.
@Prof. Kauser Great!! please how can I start trading with him from los Angeles? He is quite famous, I've been hearing about him at work, for a while now, with many recommendations.
thank you guys, for the info, you need to make your investment versatile, I invest in stocks, forex, gold etc I'm gonna sell some stocks, so i can invest good capital in crypto with Felix Hartmann
Why are people so optimistic that they will actually live long enough to benefit from 20 or 30 years of pension drawdowns. At 80 most people die or are too frail to do anything meaningful. So bear that in mind when running such calculations. Having some money left over when your dead will do you no good whatsoever
Hold on. Simulations ending below zero is a tiny 2.5%. What a huge risk…..take 7% until 67 and then drop it to 3% when you get your state pension. Remember the pension companies make money by keeping your money in their schemes. % charges so the more in the pot, the more they earn. Who wants to die with £200k in the pot
£4,000 is nothing to save after activating your pension.The goverment should increase this. Retires on lower retired pensions should be allowed a larger allowance going forward.
You are forgetting to factor in the 25% tax free lump sum up front which is £50K, you then use the remaining £150K to buy the annuity. So when you add it all up you get back more than £200K in total. The £50K lump sum and the £150K to buy an annuity is shown in one of the slides in the video
@@BouncingBack it's still not much of a return. Buy a portfolio of lower risk equities, with 3 to 5% yields, and probably a bit of capital growth over 10 years. Given we are all living to 90 these days, it doesn't pay to be too risk averse in our 50's with a very low return 10 year annuity that leaves you with zero capital and wholly reliant on the state pension at the end.
£14.175.00 pounds for ten years = £141'175.00 + £20.000 lump sum at the end. I give you £200k and you give me back total return of £161.175.00. there are a lot of stupid people around. How about, I just stick it in the SP 500 tracker fund that since 1980s this has produced 11.34% and let say I dumb it down to a return of 10% and at the end I still would have £200.000. My sauce Hargreves Langsdown pension calculator. people stop getting ripped off by fund providers.
Qyld is my bet. I have 30 years till retirement and I put 15 000 in it and let it reinvest. I think that will give enough for my retirement after 30 years.
Yes, if you're 57 you stick that £200k into an ETF (VRPL or SP500) and stick out the day job for a few more years. You'll (fingers crossed) have well over 300k, maybe 350k if you've continued contributing by 62 which is still a nice early retirement. If you're 67 and stuck with £200k then you do the same investment, take out £40k into a cash buffer in case of downturn, and hope the £160k accumulates more than you take out (and you only take out money in good years, you use the cash in downturn years) and you'll have a small but noticeable income stream on top of the state pension. Btw you should inflation adjust your returns, and take fees into consideration - 6% to 7% is more realistic.
Would it not be better to have £200,000 in an ISA? Average 4.5% interest. You would get a return of £9000 per annum. You would not pay tax on the interest and if you are receiving a state pension it will not affect your income tax allowance. OK the original investment would be reducing through inflation, but would be a lot better than these scenarios. Not including the tax you would save, the return would be £380000. Pensions are a con
Your Video is either totally wrong or Legal & General are having a laugh 3.15 into Video you say You could have £14,175 p.a Fixed for 10 yrs & £20,000 lump sum at the end……so i have given L & G £200,000 and over 10 yrs they are giving me back only £161, 750 Then you say instead you could have a fixed amount of £16,050 p.a & no lump sum. So again, i give L & G £200k & over 10 yrs they give me back £160,500 Why would anyone do either of these proposals, which is just giving L & G £40,000 & any internet over these 10 yrs. these figures must be wrong
In one of the slides it shows you get your 25% tax free lump sum up front, which is £50K, then you buy an annuity with the remaining £150K. Therefore you get back more than £200K over the 10 years. So the figures are not wrong - you get more back over the 10 years than your initial stake.
I have just run the same L&G calculator 17/03/2024 with same figures. So when this video was made the figure was £5325, Today 3 years on, the same figures would give you £8100 a year for life - that's £2775 a year more for life or an additional 52% more per year, every year until you die. Rates have gone up amazingly and this is the year to take an annuity before interests drop back resulting in lower figures. I will come back in a further 3 years time to see what the L&G calculator shows for the same figures in 2027. Interesting stuff - Subscribed.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
One crucial aspect of earning profits from stocks is to avoid being frightened and selling them prematurely. It is vital to understand that stocks should not be treated as mere lottery tickets. Consider acquiring the assistance of a financial advisor to navigate your investments.
I appreciate entrusting investment decisions to a coach whose expertise centers on leveraging risk for its asymmetrical potential. Over the past two years, I've made over six figures working with this coach, benefiting from their skills in navigating the market.
@@mariaguerrero08 Mind if I ask you to point at how to reach this particular person assisting you? Seems you've figured it all out unlike the rest of us.
“Camille Alicia Garcia” my financial advisor, holds a broad understanding of portfolio diversification and is renowned for her proficiency and expertise in the financial market.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Drawdown is the best route - because you are in full control of everything and your options remain open. Avoid annuities like the plague.
Retirement is wonderful if you have two essentials - much to live on and much to live for. Invest wisely and get good returns.
thank you, can you give a pointer the best investment now ? i am thinking of getting stocks or cryto
The key to making money in stocks is not to get scared out of them. An important key to investing is to remember that stocks are not lottery tickets.get a financial assistant
I think this is also a great time to invest in private equity and cryto. Can you give a pointer ?
I currently work with VIVIAN KLAINE MORGAN a financial expert i met in a seminar
I recently watched VIVIAN KLAINE MORGAN on TV , such a great speaker . but have you made any profit whatsoever working with her ?
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.........
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge/professional
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $850k with the help of my advisor from an initial $120k investment.........
There are a lot of independent advisors you might look into. But i work with Stephanie Kopp Meeks” and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her.......
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII..........
Lol
There is no substitute for putting the effort in to understanding and controlling your own expenditures and your various sources of income. This approach is simplistic and misses out the importance of understanding and controlling expenditure
Episode 5 of the Pension Income Special series - what income a £200k pension pot could provide. We also look at inflation impacts, which jumped to just over 5% in the space of one week from filming to release.
Thanks Helena, another great video 😊
Thank you for watching!
Awesome sharing, enjoyed watching your videos :)
I'm 37 and starting to worry about being homeless once I'm realistically too old to work, as I'm on a relatively low salary and don't own a property. I've always paid into a corporate pension and will continue to do so but I don't know if it will be enough as rents and property prices will only keep on rising. Unlike my salary, as I've always had trouble taking on more responsibility. I'm currently trying to track down a previous pension, which is proving difficult but will keep at it. Then will do some calculations.
You must try hard to get on the property ladder because renting could be a problem in retirement.
Im old enough to remember the winter of discontent . Inflation hit 18% in 1980 (UK). I don't expect it to get that high again but it can go well over this 3% people keep throwing around.
Maybe im missing something but what possible reason is there to spend a £200,000 pot to take £16,000 a year for a decade? (total£160,000)
You may be expecting inheritance to cover the rest or other investments to fall back on
Thank you, was hoping you'd make this video 🙂
You're welcome
Great video lots of easy to understand information. Thanks
Glad it was useful
Great content very informative Thanks.
Glad you liked it
Another great video and very informative. Sorry if this is something you have already done..... But could you do a video on how much you ideally should have in your pension pot by the ages of 30, 40 and 50...like would £100,000 but a good target to reach by 50?
Thanks!
Thanks for the feedback. I will add your suggestion to my list of future vids and get working on it.
I'm not an an adviser and all imo... Even in retirement (for drawdown) I think people don't take enough risk. You should be able to achieve a target drawdown of 5-6% so long as your risk is high enough and you adapt your drawdown to reflect market conditions.
Thanks, Helena for your videos. Much appreciated. I'm thinking of withdrawing from my company's pension and/or my SIPP this year and am considering between drawdown and UFPLS. I definitely do not want an annuity because of the low interest rates. Could you comment on the difference or do a video on this?
I am planning doing a video along these lines soon.
Bonds arent such a safe bet at the moment (Oct 2023)
Worked for several companies over the years. Have a pension (some small) of different types, proper corporate,people's, etc. Any advice on how to handle the situation?
Great video. I have retired a few years early and my state pension will start in 3 years time. Can I draw down a higher amount over the next 3 years to use up my personal income tax allowance and then reduce the drawdown when my state pension kicks in? Many thanks
Glad you liked it. One of the great benefits of drawdown is the ability to take a flexible income, so you can draw down more now and then drawdown a lower amount once you get your state pension. You need to be aware of any impact a higher drawdown rate now may have on your pension savings and whether your remaining pension pot still provide you with the income level you want once you get your state pension.
Thank you so much for confirming what I suspected.
Annuity income rates drops if you factor in inflation rise each year, otherwise you receive this fixed amount for life.
read up on the return since 1926 on the sp 500, its not rocket science.
Do NHS pensions be affected by inflation and investments?
If they are like the local government pension then yes, but only before you start taking the pension. It’s a final salary pension and they base that on the salary you have or had if you have left. So where there has been no pay rises for cost of living ie when we had austerity based pay freeze, then your pension is reducing by whatever the gap is between inflation and the annul cost of living rise. Once you retire then payout is linked to inflation.
However the government keeps attacking the pension so no guarantee they won’t have fubar’d it up by the time you retire.
I just made my first $20,000 in cryptocurrency I'm so glad I'm gonna have a successful retirement.
congratulations, I'm still mining bitcoin on my bitcoin cloud.
@Prof. Kauser Great!! please how can I start trading with him from los Angeles? He is quite famous, I've been hearing about him at work, for a while now, with many recommendations.
I trade with Mr Felix Hartmann too, for a month now... I've made $9,000, I wanna go into long term investment.
*Most* *people* *think....* *Investing* *in* *crypto* *is* *all* *about* *buying* *coins* *and* *holding,* *till* *it* *rises,* 🙅 *come* *on* *it* *takes* *much* *analysis* *to* *be* *a* *successful* *crypto* *trader.*
thank you guys, for the info, you need to make your investment versatile, I invest in stocks, forex, gold etc I'm gonna sell some stocks, so i can invest good capital in crypto with Felix Hartmann
Why are people so optimistic that they will actually live long enough to benefit from 20 or 30 years of pension drawdowns. At 80 most people die or are too frail to do anything meaningful. So bear that in mind when running such calculations. Having some money left over when your dead will do you no good whatsoever
Hold on. Simulations ending below zero is a tiny 2.5%. What a huge risk…..take 7% until 67 and then drop it to 3% when you get your state pension. Remember the pension companies make money by keeping your money in their schemes. % charges so the more in the pot, the more they earn. Who wants to die with £200k in the pot
Just a quick question, if I start drawing down at 67 am I still allowed to pay into my pension as I do now?. Thanks
No . You are only able to save up to £4000 maximum .
£4,000 is nothing to save after activating your pension.The goverment should increase this. Retires on lower retired pensions should be allowed a larger allowance going forward.
She doesn’t mention maintenance fees.
200k. £16k per year for 10 years.
Why would someone choose this option
Property is best the renter pays the debt and you can remortgage and get money tax free
Give L&G 200k and they give you back 160K over 10 years? um.... no.
You are forgetting to factor in the 25% tax free lump sum up front which is £50K, you then use the remaining £150K to buy the annuity. So when you add it all up you get back more than £200K in total. The £50K lump sum and the £150K to buy an annuity is shown in one of the slides in the video
@@BouncingBack it's still not much of a return. Buy a portfolio of lower risk equities, with 3 to 5% yields, and probably a bit of capital growth over 10 years.
Given we are all living to 90 these days, it doesn't pay to be too risk averse in our 50's with a very low return 10 year annuity that leaves you with zero capital and wholly reliant on the state pension at the end.
£14.175.00 pounds for ten years = £141'175.00 + £20.000 lump sum at the end. I give you £200k and you give me back total return of £161.175.00. there are a lot of stupid people around. How about, I just stick it in the SP 500 tracker fund that since 1980s this has produced 11.34% and let say I dumb it down to a return of 10% and at the end I still would have £200.000. My sauce Hargreves Langsdown pension calculator. people stop getting ripped off by fund providers.
Qyld is my bet. I have 30 years till retirement and I put 15 000 in it and let it reinvest. I think that will give enough for my retirement after 30 years.
Yes, if you're 57 you stick that £200k into an ETF (VRPL or SP500) and stick out the day job for a few more years. You'll (fingers crossed) have well over 300k, maybe 350k if you've continued contributing by 62 which is still a nice early retirement. If you're 67 and stuck with £200k then you do the same investment, take out £40k into a cash buffer in case of downturn, and hope the £160k accumulates more than you take out (and you only take out money in good years, you use the cash in downturn years) and you'll have a small but noticeable income stream on top of the state pension. Btw you should inflation adjust your returns, and take fees into consideration - 6% to 7% is more realistic.
Would it not be better to have £200,000 in an ISA? Average 4.5% interest. You would get a return of £9000 per annum. You would not pay tax on the interest and if you are receiving a state pension it will not affect your income tax allowance. OK the original investment would be reducing through inflation, but would be a lot better than these scenarios. Not including the tax you would save, the return would be £380000. Pensions are a con
@@SteveDalton-ed2nwThe annual tax year ISA limit you can invest is £20,000
Your Video is either totally wrong or Legal & General are having a laugh 3.15 into Video you say You could have £14,175 p.a Fixed for 10 yrs & £20,000 lump sum at the end……so i have given L & G £200,000 and over 10 yrs they are giving me back only £161, 750
Then you say instead you could have a fixed amount of £16,050 p.a & no lump sum. So again, i give L & G £200k & over 10 yrs they give me back £160,500
Why would anyone do either of these proposals, which is just giving L & G £40,000 & any internet over these 10 yrs. these figures must be wrong
In one of the slides it shows you get your 25% tax free lump sum up front, which is £50K, then you buy an annuity with the remaining £150K. Therefore you get back more than £200K over the 10 years. So the figures are not wrong - you get more back over the 10 years than your initial stake.