Hope you've found this video useful! I always read and try to respond to your comments below. In fact, this video was inspired by some of your comments. By the way, I've added some extra links to other videos that you can check out too.
Brilliant as always. I am 62 and wish to start a Stocks and Shares ISA however do not know who to go with. Is Barclays Bank a good S&S ISA to go with or someone like Vanguard.
My personal pensions (advised by my financial adviser) have been put all under St James Place but I have just heard very bad things about them. Is this a cause for concern and do you suggest I look into it further.
Mapping out retirement feels incredibly perplexing at this point! With SVB, Signature Bank, and now First Republic showing signs reminiscent of the 2008 market crash and a potential recession 2.0, it raises the question: should I continue saving in US dollars or consider investing in stocks? Consequently, I'm left contemplating what 2023 holds for us as investors. Sitting on over $745K in equity from a home sale, I'm uncertain about the next steps forward.
Everyone needs a different stream of income , unfortunately having a job doesn't mean security due to the high rate of tax , one needs to move ahead their expectation, I would recommend refraining from investing in stocks for now. Instead, it would be prudent to consider retaining a portion of your assets in gold. Alternatively, seeking advice from a financial advisor could provide valuable guidance in this matter.
Do you mind sharing info on the adviser who assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays
I turn 53 in 3 days' time. No children, no dependents, no family. Paid off a 25 year mortgage in exactly 8 years and 8 months. Saving and investing every penny I can spare into DC part of work pension (DB part is measly) and into a S&S ISA. Bunged some into the ISA today as I knew the stock market would be down and would be a good time to buy. I am thinking 60 is my sweet spot for retirement regardless of how much money I have saved until then. If it is less, I will manage. Beyond a certain point focus should be on quality of life and not things money can buy. My philosophy anyway. Thanks Pete as always for talking sense. Whenever I have self-doubts, up pops a video from you as a reassuring sign from the universe.
Hi Mate, I am 4 years older than you and this time last year I was thinking of retiring at around 60/61 but I had a PSA test with levels elevated, does not seem to be an urgent problem but I also find I have diabetes. The point being, you never know what is around the corner, I worked 7 days a week to save for my retirement. I am just finishing 3 months travelling to Australia, Thailand and Brazil. Good luck with your planning, please don’t forget your health as this in reality is your most important asset
@@grahamriley7827 Thank you Graham. Yes absolutely. Health and investment in one self is everything. Sorry to hear about your PSA and diabetes. Hope you are able to manage it. Your travels sound absolutely fantastic. Enjoy life to the fullest my friend.
Best investment you can make isnt money. Its getting married to somone with kids. If you dont you will die lonely with no one to care for you when you get sick. The above is guranteed. Your choice.
With me it is relieving the stress of knowing I can tell the boss to pee off if I had to and knowing I can survive. I can imagine once I have enough safety money my actual stress and anxiety at work would reduce. Which would then lead to me actually enjoying the job and I wouldn't want to retire.
Very true, most of my working life I have always feared not having a job and been made redundant a couple of times. Fortunately always managed another job fairly quickly, but when it happened during Covid it was a lot harder, through inheritance and work bonuses I am now reasonably secure regarding pension income in 2-3 years. If anything happens before then my DC schemes will see me ok until a DB work scheme and the state pension start.
You’re preaching to the converted here, Pete, but I just had to say what an excellent video that was! There’s so much cynicism around retirement, and pensions in particular. All I can say is that I’m glad I’ve been ‘intentional’ with the incredibly generous (albeit ever changing) rules around them. A great ‘soap box’ moment at the end, by the way!
So true adding extra into your pension pot from taxed income and getting the tax relief of 25p for every pound put in, I don’t think there is anywhere else that shows such a good return PLUS most major pension providing companies in the UK carry a good deal of protection for your investment. I’m two years now from a DB scheme and am Tempted to stop a year early using rental income, and accessing a crystallised pension pot as main income to take that at £12.5 K tax free.
Another great video Pete. I so agree personal finance is a life skill and should be approached in schools giving younger people an introduction on how to manage money. I believe many marriages fail due to a partner not appreciating/managing money.
100% correct, in some ways I was lucky as a kid as my parents had a corner shop so schooled us early about money etc. my 1st wife and I were terrible managing money having holidays etc and ping into ent for them. My wife now hates debt and loans, so looks to save up where possible. I have one credit card zero interest for occasional large expenses
This is possibly my favourite video of yours that I’ve seen. You are bang on with personal finance being a life skill and it’s shocking how many don’t have that skill.
Thanks Pete, useful as always. I'm 59 and have just taken a 12 month career break to see if I like retirement, and I do! Just doing the maths and seeing if I can afford to stop now, would need my current DC and ISAs to keep me going until 67 when I get my state pension. It is a big decision, and for the moment I am going to return to work on a part time basis and see if I can sustain that, then decide later when I want to stop for good. I keep listening to your podcasts and videos, keep up the good work
Hi Pete. Your level of passion for what you do really comes across in this video, thank you so much for your helpful advice. I for one really appreciate it. 👌
Absolutely, starting with the simple things like bank accounts direct debit v standing orders. Overdrafts, lending, credit card etc Household budgeting what bills you get and need to pay and then start looking at savings pensions etc.
I didn't know about that state pension forecast online service. So, thanks for letting us know. I was interested to see that there are two years when I didn't contribute enough NI - but, during those years I was a full-time student. Some of my full time education years have National Insurance Credits, but not all. It's not a big deal because I have quite some time left to make NI payments. But, if someone found out too late that could be a real blow.
I just want to thank you for all the very helpful information you put out in regards to planning your pension. You convey lots of complex information in a clear concise manner that's easy to understand. (Even I feel that I'm gradually starting to understand the basics of this complicated subject through your videos) thank you 👍
This is excellent. You're absolutely right. Change is part of life, deal with it. Pensions are not simple, just read about them / watch some videos... it's in your best interests! Take the bull by the horns and make the effort to understand - you may even enjoy the process! :-)
Pensions used to be incredibly simple. Join a company like Siemens at 27 and retire on a 2/3rds salary pension at 60. In fact a former colleague keeps telling me the story of how, by volunteering for redundancy, he retired at 50 with only a 10% penalty on his pension. Of course that was when pension funds were awash with money (before Gordon Brown noticed that).
@@MrDuncl back in the good old days, when people would be working for companies for a long time. Now 5 years is almost the max for many. Even though companies can provide a pension via the NEST scheme there are charges in there to compensate for the Government setting the scheme up.
@@guyr7351 Pensions are definitely something to consider when looking at job offers. I have had offers which look to be a 20% increase on my current salary but when I look at the associated pension scheme with only the statutory minimum being paid in realised I wouldn't be much better off overall. Of course part of the problem is that you can't include a company contribution to a pension on a Mortgage Application form.
Keep up the good content 👍 It is a shame people automatically think ISA's are just savings accounts, there needs to be more education around investing and compounding!
The problem is the big difference between saving and investing, and the individuals attitude to risk. I remember years ago having a financial guy round and he was trying to get me to invest some money. The first thing that was going to happen was the company would apply their charges about £500, I said surely you should take these after 1 year of investing? so potentially growth could have covered it. Needless to say I kept my cash
@@guyr7351 Or put your money into a low cost index fund or ETF, namely SP 500 or the like and watch your investments far exceed any cash savings you have.. £10k invested when the market crashed 2008/2009 would be worth around £70k today even if you didnt add another penny, I know which one im picking!
Hi Pete, first and foremost thank you for the information you are providing. I am 53 soon, and have a couple of old pension pots kicking about, an old DB and a current company DC pension scheme. I am enjoying the learning process and appreciate the way, you put pension info across. 💯subscribed.
Thank you. Fortunately I work with money in a different way but as I am going to "retire" at the end of 2023, I have been creating a number of scenarios using spreadsheets. So can factor in the dangerous period between then and 2028 when I have two DB pensions to offset before the state pension as you said, and have done the check and already have the number of years. I have to also say that for me it is the stress and how it affects me mentally in recent years that has prompted me to this decision as much as anything else.
The stress of handling the retirement planning is real, Derek, I hear you. That's why I have a job, because so many people want to offload this to a professional adviser. I wish you well - good luck!
Thanks as usual for the inspirational content Pete. I guess, when facing the realities of retirement, one's true attitude to risk is revealed. I am, by nature a financial pessimist, and so is my grand financial spreadsheet, which has been great for building tax-efficient pensions and emergency funds, as I assumed I would be redundant at 50. I think the tricky part will be switching to a decumulation model. I may need a serious talk with a sympathetic IFA, just to get 'permission' to let go. 🤔 I am sure I am not alone in this.
To be honest, that happens a lot. Many clients come to us for reassurance that their own figures stack up, or not, as is sometimes the case. Switching to spending your money is a difficult transition, for sure… thanks for watching!
@MeaningfulMoney WOW! Did I just hear the pensions life time allowance is being scrapped?? That is huge news! I will be doing cartwheels and Pete will be doing overtime. 😉
Just reading through the comments and a lot of people are like me; 50+ You touched on it briefly in the video Pete; they don’t teach this stuff in schools (although imo they should) A lot of people don’t start thinking about retirement seriously until they’re closer to retirement than they’d like, at which time they’ve lost 20+ years of investing, growth and compounding. If governments would only pay this some serious attention they might find they’d have to support fewer people in the future (Sorry. I’ve hijacked your soapbox Pete. I’ll let you get back on 😉)
Hi Pete, could you do a video about the Lifetime ISA? Specifically just for retirement. It might be a bit niche but that's the boat I'm in now. About to turn 37 so only a couple years to open one and already a homeowner. Would you think a LISA is a good idea for retirement or just stick with building wealth through a standard stocks and shares ISA for the flexibility aspect (also paying into a workplace pension if that helps) Thanks
Great point - deep financial skills should be taught in a much more systematic way in our schools! Thanks for making the case so clearly and passionately!
Lots of great information. 👍 Personally I do not want to give up work. 5 years ago I moved to a stress less role with 3 years to go to the state pension. No mortgage or debt. Only variable is my health and the most valuable. 🤓
As ever an excellent video. I have learnt a great deal from you. I hope to use meaningful academy as soon as is financially possible. Keep up the great work !!!!
You probably only have 4 or 5 major decisions to make it your lifetime Retirement is one of them We have had this plan for 30 years and it’s come together nicely We I retired last year at 56 and my wife just now at 56 we have a mix of DB and the flexibility of a DC pension It important to have a full 35 year NI record then pay all your debt off Then just go for it !!!!!!
I retired last year at 53. This was my experience so far. My isa generated around 25 k in dividends tax-free. One, buy yo let around 4k per year. All tax-free, no mortgage one car payment of £370 no dependants. All sounds good until one large dividend cut minus 7k plus increase in buy to let mortgage less 3k . My sipp from next year adds another 12k in income, so it should see me through. My point is that what you plan can change very quickly.
Hello again Pete and thank you for your insight which is spot on as usual. As I advance in years I have seen many family and friends put away large sums of cash to enjoy for the future but they often run out of time to truly make the most of it. I have been retired for just over a year now and based on what I have seen from others I am spending hard from 60 to 70 years with the intention of slowing that spending down as I am less able or wanting to travel etc. If my investments take a dip I will ease off a little but if they are bullish I will push on. I have no intention. of being the richest man in the graveyard as I've worked too damn hard to waste it. P.S - If in the mean time I win big on the lottery, you will be the first person I will call for help.
Hi Mark - I think yours is a very pragmatic approach and one that I encourage in my clients. Spend earlier, not later, because later isn't promised to us. I was particularly impressed by your comment that if your investments take a dip, you'll ease off the gas a bit - this is the adult, common-sense approach, which is all too rare... Cheers!
@@MeaningfulMoney Hi Pete, love your channel you cover a lot of subjects and a few I have saved esp ref flexible draw down. We each have our own needs and what income we see as allowing us a decent retirement. My DC pot in two years will be £225-250K, I’ll have a DB paying £7K if i take the max tax free, £1100 a month income from rents, then wife and I both 2 years from full state pension each. Our income will see us OK and I’ll be able to take from the DC at a decent rate for ten years to allow travel and enjoying life. Mid 70’s as long as I can still golf, get to the football and travel to USA to see my son and grandkids life will be fine for me. I won’t be planning on Leaving a big pot for my three kids, but I don’t expect to drain the DC pot and fingers crossed I avoid a care home. What’s left in pension fund and the properties goes to my kids ( depending on wife’s position). At 63 I want out of work, but still having a mortgage I’m working thinking another year of mortgage done and money saved into pension pot/ ISA. Working on my finances last 5 years I can afford the mortgage easily in retirement, if mortgage rate ramps up I’ll possibly clear what’s left by then, if new mortgage deal can be done cheaply I’ll keep it going. By addressing my needs and requirements early a few years ago feel we are OK and plans are solid
It seems someone got to you and the soap box came out. Glad you can get your point across to everyone on here, it paints the right picture for anyone wishing to build for retirement. Thanks Pete for the info, No selling out for me as yet (too many years to go) although I did look at the pension statement and it wasn't pretty lol.
As always Pete, outstanding content, very valid points that hit home to me personally, having viewed the retirement planning course, it appears to touch on another area that interests me and thats the build wealth, does the retirement planning go deep enough on the build wealth aspects (you say it is mostly brought across from there) or should both be considered? really appreciate your continued information sharing. Thank you
Hi Pete, I've been watching your very informative videos for some months now and want to say thank you. My understanding of investments is greatly improved because of the clear explanations that you give. In your latest video you mention consolidating pensions. Could you elaborate on how and why it's a good idea to consolidate please? I'm 66 years old and just started getting my state pension but I am still working full time and have, in January, started a new company that has its own company pension scheme. I plan to retire, or reduce to a 3 day week, in around 5 years time.
I just asked the same question. Consolidation seems to contradict the "Eggs in baskets" at the end. Many customers of SVB were probably thinking about "Eggs in baskets" over the weekend.
i think consolidation is a good idea to the extent that it helps people to engage better with their finances as they're not overwhelmed by tons of paperwork. But you should only consolidate to the extent that you're comfortable, so if, as MrDunci says in his comment elsewhere on this video, your comfort number is six pensions, or three, or nine, then don't let me or anyone else tell you otherwise. Consolidation can also help reduce fees and investment complexity, and is especially useful when you take benefits as it an be a pain to co-ordinate over several plans and providers.
I’ve watched a few of your videos and it has really helped my understanding of the pension landscape- thank you. However there’s still one thing I’m uncertain about if you could answer please. I’ve always understood pension saving as deferred tax on your earnings. However a friend has suggested with a certain financial strategy you can avoid the tax on your pension for life! Their thinking goes - from 55 years old obtain a drawn down pension - and access the tax free lump sum over a number of years. Then once the tax free lump sum has been exhausted. Continue your draw down so that your total income (any salary and pension annual draw down) is never over the basic tax threshold! The strategy being all major purchases house, car, holiday home etc having been made before capping your income to basic tax threshold so living off just £12 570 a year pension draw down with no other income. Is this correct? Have they missed something.
No, that’s basically correct. As pension income is taxed the same as earned income, the income tax personal allowance is there to be used. I will often advise clients who retire early to do this. It gets trickier once their state pension kicks in though because that uses up a chunk of their personal allowance.
Great video as always. How do we sustainably fix the knowledge gap that exists and get people understanding this stuff? Do we need more financial coaches and help for those that don't have enough to see financial advisors, but how can that be regulated? I know the answer isn't everyone needs an SJP advisor 😊 , but no wonder they do ok when there is little else out there to help people (apart from your channel and handful of other good content creators!)
You’re dead right. There are plenty of clients to sustain many more advisers and coaches than there are. I also think we need to make teaching this life skill mandatory.
Thank you for the advice, just wanted to ask if it would be beneficial to move previous workplace pensions into a current one? Or to keep them separate? Thanks
Up to you, really. Probably no harm in it. if you're likely to stay at the current job for a while it's probably worth considering, but not if you're in something like NEST, which is a very basic pension.
Hi just wanted to comment on state pension Don’t rely on what your told over the internet my wife did this and we got a result of fully paid. When eventually we wrote to the department of work & pensions my wife was 5 years short which meant we had to pay over £3000 to top up very quickly.
Your best video to date so well covered “Pensions and ISA’s should be complimentary” and I have both 65% pension 35% investment ISA Is there a perfect or ideal ratio , and if so, is that ratio depending on the size of the combined funds? Full state pension arriving in October btw
Not sure there's an ideal ratio, but yours sounds pretty good. Basically you want options as to where to take the money you need from and when - having both pension and ISA gives you that choice. Good luck!
As yet I don’t have an ISA I’m two years from a DB scheme three from full state pension. In April topping up pension pot and then I’ll be putting money into a stocks n shares ISA ( some of it the money from The easy access safety pot of money I have
Hi Pete. Excellent video...being a pension professional I totally appreciate how tricky it can be to get people to engage with their retirement! On another topic, I am planning to manage my own ETF portfolio for the 1st time...to date ice always used one of the Vanguard LifeStrategy funds, but have decided to go out alone next year. Would you be able to create a video on how to put together an ETF portfolio, hope to compare ETFs, what to look out for etc? I think there will be plenty of viewers considering the same at this time of year. I look forward to your next video 👍
If there is a state pension in 20-25 years time my guess is it'll be means tested and anyone who did the right thing and saved and built a work pension etc... won't see a bean.
At 3:40 you mention to combine DC pensions into one. What is the risk of this if the Pension provider went bust? Are the individual funds that are part of the investment ring fenced? What would happen if these funds are from the Pension provider that may have gone bust? Finally what happens if the fund manager goes bust on one of the funds that you have investments in?
Pete did a video about this a while back. I don’t think UA-cam allows links in comments so it’s called “can I lose Money?” or “Losing Money - How does the FSCS work?” It might answer your questions.
If a fund manager went bust you wouldn’t lose your money because they have to keep your money separate from theirs. Depending on the kind of pension you have, the FSCS limits work differently. Have the minimum amount of plans that make you comfortable. So if that’s two or three plans, then go for it. Not worth losing sleep over…
Hi Pete, we love your videos, but you've hit the nail on the head at 11:30mins. Finance isn't 'taught' and unfortuanately nowadays people dont even know how to cook... they 'Just Eat' or 'Deliveroo'. So expecting them to understand complex(?) finance just isn't going to happen....
Advice does make it happen for some people. Not everyone eats out all the time., and some people do appreciate financial advice. I woud be considerably better off, had the advice I am following now, been available 20 yrs ago.
Initial chat usually free, Chris, yes. Think of it as a courtship. You're aiming for a solid long-term relationship with your adviser, and you need to see if you get on. It's exactly the same from their point of view - they're sussing you out too! Go with your gut, and remember that if it doesn't work out, you can always part ways. Good luck!
I’m approaching 52 and am just taking out a brand new 147k mortgage over 14 years. With only 10k in savings I do not envisage being able to afford to retire until my late 60’s
We’ll, that is normal, believe it or not. Retirement is a personal thing and going early isn’t for everyone because either they can’t afford it or don’t want to go. Do what you can to improve your financial situation in this home straight.
Objection 🙂 You contradict yourself by talking about consolidating pensions at the start then mentioning "Eggs in Baskets" near the end. Earlier this week, in the wake of the SVB debacle I commented elsewhere about "Eggs in Baskets" and how the idea of pension consolidation rings alarm bells to me. I'm very happy to have my pensions split over about six baskets. If you having made it already could you explain how to ensure that your pension fund isn't being run by a Neil Woodford. Even County Councils were caught out by him.
Yep, perhaps I muddied the waters a bit there. I do think it makes sense to consolidate, but only to the extent that you're comfortable. So if, for you, that's six pensions, then so be it! Fact is, there's really no way to ensure there's not another Neil Woodford running your pension fund. I would say that it does makes sense to have more than one fund from different providers INSIDE your pension. the pension itself is just an admin wrapper, remember, the money is invested in and by the FUNDS, and that's where some diversification is good.
You mentioned combining pensions into one. That’s as clear guidance as I’ve heard. I have 5 pensions over 32 years. One is DB but 4 (inc current employer) others. Always thought best to keep a spread but never given it much thought?
I'd say be intentional. Is there a reason for having multiple pots? Usually there isn't, it's more down to inertia. Usually it's more costly and more hassle to look after four pots than one, and with fewer pots you can think of the fund as a whole and invest accordingly. Good luck!
@@nmax1969 one thing I would add with DC schemes and combining advantages. When you do want retire and access the money and doing flexible draw down say, thinking the hassle getting tax man to recognise what’s tax free if you take retirement early so have your personal Allowance to take into account. 4 pension funds to communicate with. Will they all follow wishes ref beneficiaries etc.
I have a widows pension, I only work part time due to disability. I have 12500 in pension B which I can draw next year I was thinking to draw it all down pay the tax then add it to my ISA. Do you think this is a good idea?
Two things are concerning me at the moment. First of all the MIT study that was reviewed recently thst says we are running out of resources and another Carrington event, which could send up back into the dark ages. Does anyone have any thoughts on this?
Both are possible, of course. I’m a hit fatalistic about such things, thinking that if they happen. We’ll have bigger things to worry about that our pension funds. Maybe buy some gold and a shotgun?
58 now....will be getting made redundant at the end of the year (59 by then). Will have around 150K (this will include 30k redundancy i will be receiving) the rest will be made up of Pension/ISA/Bonds. Question is....what the hell do i do??
Hi Pete, Great Video , clear and to the point as always. One point i feel is overlooked in many retirement plans is downsizing. We hear about income from a rental property but what can you do with the cash if in retirement you sell your main home and purchase a smaller one or move into your rental making that your primary home and suddenly find yourself with £xxx,xxx cash towards retirement that you are too late to just lump into your existing pension pot - would like to see some ideas on that type of retirement plan
Good point. Downsizing is a useful option for many, and arguably should be considered first before an equity release arrangement. It’s not always possible or desirable, but should always be considered.
6% returns are very differcult in this downturn you might have to wait many years to achieve this growth.Many pensioner have lost quarter of there pots or more so you must have strong stomach to ride out the noise and stay the distance.
The reason why they keep moving the goalposts and increasing the retirement age is they’ve spent your money and can’t afford to give you your money back or benefit as they like to call it.
So true. And I am sure tomorrow’s budget will bring the pension age to 68 earlier than 2044 as it was planned. Basically think of state pension as a bonus and don’t count on it as income.
I’ve stopped bothering with planning. My uncle just dropped dead suddenly at 55 from a heart attack. And I had a stroke at 28. There’s just no guarantee we’ll even make it to that age and I kind of don’t want to anyway. Not with health issues anyway. It’s better to work and enjoy life all the way. You just don’t know.
I wish I’d known earlier in my career when I was earning less than now to make sure I increase contribution percentage to get the highest employer contribution and not just leave the default percentage. Nobody teaches you this stuff.
That one trick can be responsible for a massive difference to the eventual outcome, Gulzeb. You're dead right, this really SHOULD be taught in schools...
Great informative video as usual. I currently have dropped my work hours from 37.5 to 16 p/wk and have £70,000 only in my pension pot. I am looking to pay the tax and take it all as cash, would i still need to use a pension advisor for this or can i just request it through my pension Co. ?
@@puppetsnippets6830 Thank you. Yes i am willing to pay the tax on the 75% and take the cash, but do i still need to pay and go through an advisor or can i just take it from my pension company ?
You’ll need to ask the pension company, but why would you throw away so much in tax? Even spreading it over 2-3 years would reduce what you pay, surely?
When planning your retirement don't forget to leverage the full potential of shoplifting and benefit fraud. Being a hard working and honest tax payer has become a total mugs game, so if you can't beat 'em, join 'em!
Hope you've found this video useful! I always read and try to respond to your comments below. In fact, this video was inspired by some of your comments.
By the way, I've added some extra links to other videos that you can check out too.
Brilliant as always.
I am 62 and wish to start a Stocks and Shares ISA however do not know who to go with.
Is Barclays Bank a good S&S ISA to go with or someone like Vanguard.
My personal pensions (advised by my financial adviser) have been put all under St James Place but I have just heard very bad things about them.
Is this a cause for concern and do you suggest I look into it further.
Hi Mathew
I find your channel very informative, thank you.
Dave
Mapping out retirement feels incredibly perplexing at this point! With SVB, Signature Bank, and now First Republic showing signs reminiscent of the 2008 market crash and a potential recession 2.0, it raises the question: should I continue saving in US dollars or consider investing in stocks? Consequently, I'm left contemplating what 2023 holds for us as investors. Sitting on over $745K in equity from a home sale, I'm uncertain about the next steps forward.
Everyone needs a different stream of income , unfortunately having a job doesn't mean security due to the high rate of tax , one needs to move ahead their expectation, I would recommend refraining from investing in stocks for now. Instead, it would be prudent to consider retaining a portion of your assets in gold. Alternatively, seeking advice from a financial advisor could provide valuable guidance in this matter.
Do you mind sharing info on the adviser who assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays
I just checked her out and I have sent her an email. I hope she gets back to me soon
I retired 7 years ago at the age of 60. It's beyond awesome and money is no issue. I volunteer a huge amount but on my terms. Plus I also play a lot!
I turn 53 in 3 days' time. No children, no dependents, no family. Paid off a 25 year mortgage in exactly 8 years and 8 months. Saving and investing every penny I can spare into DC part of work pension (DB part is measly) and into a S&S ISA. Bunged some into the ISA today as I knew the stock market would be down and would be a good time to buy. I am thinking 60 is my sweet spot for retirement regardless of how much money I have saved until then. If it is less, I will manage. Beyond a certain point focus should be on quality of life and not things money can buy. My philosophy anyway. Thanks Pete as always for talking sense. Whenever I have self-doubts, up pops a video from you as a reassuring sign from the universe.
I'm glad the content is helpful for you, Usha - thank you for being here. Sounds like you have your plans tied up nicely - respect! I wish you well...
Hi Mate, I am 4 years older than you and this time last year I was thinking of retiring at around 60/61 but I had a PSA test with levels elevated, does not seem to be an urgent problem but I also find I have diabetes. The point being, you never know what is around the corner, I worked 7 days a week to save for my retirement. I am just finishing 3 months travelling to Australia, Thailand and Brazil. Good luck with your planning, please don’t forget your health as this in reality is your most important asset
@@grahamriley7827 sounds about right and this is what I am planning doing as well. I am also 53 and 60 seems too far out at the moment.
@@grahamriley7827 Thank you Graham. Yes absolutely. Health and investment in one self is everything. Sorry to hear about your PSA and diabetes. Hope you are able to manage it. Your travels sound absolutely fantastic. Enjoy life to the fullest my friend.
Best investment you can make isnt money. Its getting married to somone with kids. If you dont you will die lonely with no one to care for you when you get sick. The above is guranteed. Your choice.
With me it is relieving the stress of knowing I can tell the boss to pee off if I had to and knowing I can survive. I can imagine once I have enough safety money my actual stress and anxiety at work would reduce. Which would then lead to me actually enjoying the job and I wouldn't want to retire.
Very true, most of my working life I have always feared not having a job and been made redundant a couple of times. Fortunately always managed another job fairly quickly, but when it happened during Covid it was a lot harder, through inheritance and work bonuses I am now reasonably secure regarding pension income in 2-3 years. If anything happens before then my DC schemes will see me ok until a DB work scheme and the state pension start.
You’re preaching to the converted here, Pete, but I just had to say what an excellent video that was! There’s so much cynicism around retirement, and pensions in particular. All I can say is that I’m glad I’ve been ‘intentional’ with the incredibly generous (albeit ever changing) rules around them. A great ‘soap box’ moment at the end, by the way!
Cheers, Martin - very kind!
So true adding extra into your pension pot from taxed income and getting the tax relief of 25p for every pound put in, I don’t think there is anywhere else that shows such a good return PLUS most major pension providing companies in the UK carry a good deal of protection for your investment.
I’m two years now from a DB scheme and am Tempted to stop a year early using rental income, and accessing a crystallised pension pot as main income to take that at £12.5 K tax free.
Another great video Pete. I so agree personal finance is a life skill and should be approached in schools giving younger people an introduction on how to manage money. I believe many marriages fail due to a partner not appreciating/managing money.
100% correct, in some ways I was lucky as a kid as my parents had a corner shop so schooled us early about money etc. my 1st wife and I were terrible managing money having holidays etc and ping into ent for them.
My wife now hates debt and loans, so looks to save up where possible. I have one credit card zero interest for occasional large expenses
This is possibly my favourite video of yours that I’ve seen. You are bang on with personal finance being a life skill and it’s shocking how many don’t have that skill.
Thank you, TFWC!
Thanks Pete, useful as always. I'm 59 and have just taken a 12 month career break to see if I like retirement, and I do! Just doing the maths and seeing if I can afford to stop now, would need my current DC and ISAs to keep me going until 67 when I get my state pension. It is a big decision, and for the moment I am going to return to work on a part time basis and see if I can sustain that, then decide later when I want to stop for good. I keep listening to your podcasts and videos, keep up the good work
i wish you well, Celia - good luck!
Pure gold Pete ✨️ UA-cam is lucky to have you distilling this material in such a succinct manner.
Thank you my friend - really appreciate that!
Hi Pete.
Your level of passion for what you do really comes across in this video, thank you so much for your helpful advice. I for one really appreciate it. 👌
I really appreciate that, Shimster - thank you!
You are so right - they should teach us about personal finances at school. Thank you x
Thank you, and hello from Penzance!
Absolutely, starting with the simple things like bank accounts direct debit v standing orders. Overdrafts, lending, credit card etc
Household budgeting what bills you get and need to pay and then start looking at savings pensions etc.
Loved the video (especially the ranty bit! 🙃) Had a lot of the same on some of my videos so I feel your pain.
Keep up the good fight! 🙌
good point about investing in health/fitness as well as money
Good rant! Thanks for continuing to dispel myths and share thinking that make it possible to take control, make a plan and see it come to fruition.
Thanks Jon - appreciate the encouragement!
I didn't know about that state pension forecast online service. So, thanks for letting us know. I was interested to see that there are two years when I didn't contribute enough NI - but, during those years I was a full-time student. Some of my full time education years have National Insurance Credits, but not all. It's not a big deal because I have quite some time left to make NI payments. But, if someone found out too late that could be a real blow.
I just want to thank you for all the very helpful information you put out in regards to planning your pension. You convey lots of complex information in a clear concise manner that's easy to understand. (Even I feel that I'm gradually starting to understand the basics of this complicated subject through your videos) thank you 👍
Love that, John - thanks for watching!!
Useful as always Pete. Thanks. I retired June 2020 aged 57. No regrets but fortunately, I have a service pension and cashed my DB pension in.
Wishing you a long and healthy retirement, Steve!
So true, get control of your money and pensions so you can control what happens to you when in retirement.
Yep - it’s in your hands, or it should be…
Thanks for putting another video. I have been watching you and recommending it to my friends and families.
I appreciate it, Rudra - thank you for sharing!
This is excellent. You're absolutely right. Change is part of life, deal with it. Pensions are not simple, just read about them / watch some videos... it's in your best interests! Take the bull by the horns and make the effort to understand - you may even enjoy the process! :-)
Amen to that, Alex - glad you enjoyed the video; thanks for watching!
Pensions used to be incredibly simple. Join a company like Siemens at 27 and retire on a 2/3rds salary pension at 60. In fact a former colleague keeps telling me the story of how, by volunteering for redundancy, he retired at 50 with only a 10% penalty on his pension. Of course that was when pension funds were awash with money (before Gordon Brown noticed that).
@@MrDuncl back in the good old days, when people would be working for companies for a long time. Now 5 years is almost the max for many.
Even though companies can provide a pension via the NEST scheme there are charges in there to compensate for the Government setting the scheme up.
@@guyr7351 Pensions are definitely something to consider when looking at job offers. I have had offers which look to be a 20% increase on my current salary but when I look at the associated pension scheme with only the statutory minimum being paid in realised I wouldn't be much better off overall. Of course part of the problem is that you can't include a company contribution to a pension on a Mortgage Application form.
Keep up the good content 👍 It is a shame people automatically think ISA's are just savings accounts, there needs to be more education around investing and compounding!
The problem is the big difference between saving and investing, and the individuals attitude to risk. I remember years ago having a financial guy round and he was trying to get me to invest some money. The first thing that was going to happen was the company would apply their charges about £500, I said surely you should take these after 1 year of investing? so potentially growth could have covered it.
Needless to say I kept my cash
@@guyr7351 Or put your money into a low cost index fund or ETF, namely SP 500 or the like and watch your investments far exceed any cash savings you have.. £10k invested when the market crashed 2008/2009 would be worth around £70k today even if you didnt add another penny, I know which one im picking!
Hi Pete, first and foremost thank you for the information you are providing. I am 53 soon, and have a couple of old pension pots kicking about, an old DB and a current company DC pension scheme. I am enjoying the learning process and appreciate the way, you put pension info across. 💯subscribed.
Thank you, Colin. Great to have you with us!
Retirement: the best career-move you'll ever make.
I hear ya, Tony!
Thank you. Fortunately I work with money in a different way but as I am going to "retire" at the end of 2023, I have been creating a number of scenarios using spreadsheets. So can factor in the dangerous period between then and 2028 when I have two DB pensions to offset before the state pension as you said, and have done the check and already have the number of years. I have to also say that for me it is the stress and how it affects me mentally in recent years that has prompted me to this decision as much as anything else.
The stress of handling the retirement planning is real, Derek, I hear you. That's why I have a job, because so many people want to offload this to a professional adviser. I wish you well - good luck!
Thanks as usual for the inspirational content Pete. I guess, when facing the realities of retirement, one's true attitude to risk is revealed. I am, by nature a financial pessimist, and so is my grand financial spreadsheet, which has been great for building tax-efficient pensions and emergency funds, as I assumed I would be redundant at 50. I think the tricky part will be switching to a decumulation model. I may need a serious talk with a sympathetic IFA, just to get 'permission' to let go. 🤔 I am sure I am not alone in this.
To be honest, that happens a lot. Many clients come to us for reassurance that their own figures stack up, or not, as is sometimes the case.
Switching to spending your money is a difficult transition, for sure… thanks for watching!
@MeaningfulMoney WOW! Did I just hear the pensions life time allowance is being scrapped?? That is huge news! I will be doing cartwheels and Pete will be doing overtime. 😉
Too true. Very difficult after all these years. I struggle and my advisor has to continually reminded me to spend.
Just reading through the comments and a lot of people are like me; 50+
You touched on it briefly in the video Pete; they don’t teach this stuff in schools (although imo they should)
A lot of people don’t start thinking about retirement seriously until they’re closer to retirement than they’d like, at which time they’ve lost 20+ years of investing, growth and compounding.
If governments would only pay this some serious attention they might find they’d have to support fewer people in the future
(Sorry. I’ve hijacked your soapbox Pete. I’ll let you get back on 😉)
You can use it any time, Kevin, no problem! (Thanks for watching!)
Good video and the passion you have was certainly coming through there!
Thank you sir!
Hi Pete, could you do a video about the Lifetime ISA? Specifically just for retirement. It might be a bit niche but that's the boat I'm in now. About to turn 37 so only a couple years to open one and already a homeowner. Would you think a LISA is a good idea for retirement or just stick with building wealth through a standard stocks and shares ISA for the flexibility aspect (also paying into a workplace pension if that helps) Thanks
Really good useful information. Thank you 🙏
Great point - deep financial skills should be taught in a much more systematic way in our schools! Thanks for making the case so clearly and passionately!
Thanks for watching, Simon!
Lots of great information. 👍 Personally I do not want to give up work. 5 years ago I moved to a stress less role with 3 years to go to the state pension. No mortgage or debt. Only variable is my health and the most valuable. 🤓
I wish you well!
As ever an excellent video. I have learnt a great deal from you. I hope to use meaningful academy as soon as is financially possible. Keep up the great work !!!!
It’ll be there when you’re ready, Andy 👍🏻
You probably only have 4 or 5 major decisions to make it your lifetime Retirement is one of them We have had this plan for 30 years and it’s come together nicely We I retired last year at 56 and my wife just now at 56 we have a mix of DB and the flexibility of a DC pension It important to have a full 35 year NI record then pay all your debt off Then just go for it !!!!!!
Congrats, David - I wish you well!
Brilliant Pete! What would we do without you?
Ah, you’d be OK, but I’m happy to be here and grateful for your support!
I retired last year at 53. This was my experience so far. My isa generated around 25 k in dividends tax-free. One, buy yo let around 4k per year. All tax-free, no mortgage one car payment of £370 no dependants. All sounds good until one large dividend cut minus 7k plus increase in buy to let mortgage less 3k . My sipp from next year adds another 12k in income, so it should see me through. My point is that what you plan can change very quickly.
Indeed it can. Always worth stress-testing a plan if you can, but even then life has a way of slapping us about now and again…
Hello again Pete and thank you for your insight which is spot on as usual. As I advance in years I have seen many family and friends put away large sums of cash to enjoy for the future but they often run out of time to truly make the most of it. I have been retired for just over a year now and based on what I have seen from others I am spending hard from 60 to 70 years with the intention of slowing that spending down as I am less able or wanting to travel etc.
If my investments take a dip I will ease off a little but if they are bullish I will push on.
I have no intention. of being the richest man in the graveyard as I've worked too damn hard to waste it.
P.S - If in the mean time I win big on the lottery, you will be the first person I will call for help.
Hi Mark - I think yours is a very pragmatic approach and one that I encourage in my clients. Spend earlier, not later, because later isn't promised to us. I was particularly impressed by your comment that if your investments take a dip, you'll ease off the gas a bit - this is the adult, common-sense approach, which is all too rare... Cheers!
@@MeaningfulMoney Hi Pete, love your channel you cover a lot of subjects and a few I have saved esp ref flexible draw down.
We each have our own needs and what income we see as allowing us a decent retirement.
My DC pot in two years will be £225-250K, I’ll have a DB paying £7K if i take the max tax free, £1100 a month income from rents, then wife and I both 2 years from full state pension each.
Our income will see us OK and I’ll be able to take from the DC at a decent rate for ten years to allow travel and enjoying life. Mid 70’s as long as I can still golf, get to the football and travel to USA to see my son and grandkids life will be fine for me.
I won’t be planning on Leaving a big pot for my three kids, but I don’t expect to drain the DC pot and fingers crossed I avoid a care home. What’s left in pension fund and the properties goes to my kids ( depending on wife’s position).
At 63 I want out of work, but still having a mortgage I’m working thinking another year of mortgage done and money saved into pension pot/ ISA. Working on my finances last 5 years I can afford the mortgage easily in retirement, if mortgage rate ramps up I’ll possibly clear what’s left by then, if new mortgage deal can be done cheaply I’ll keep it going. By addressing my needs and requirements early a few years ago feel we are OK and plans are solid
It seems someone got to you and the soap box came out. Glad you can get your point across to everyone on here, it paints the right picture for anyone wishing to build for retirement. Thanks Pete for the info, No selling out for me as yet (too many years to go) although I did look at the pension statement and it wasn't pretty lol.
Now and again, it's important to rant a little. I see more of that in my future! Thanks for being here, Mini Mad!
As always Pete, outstanding content, very valid points that hit home to me personally, having viewed the retirement planning course, it appears to touch on another area that interests me and thats the build wealth, does the retirement planning go deep enough on the build wealth aspects (you say it is mostly brought across from there) or should both be considered? really appreciate your continued information sharing. Thank you
Hi John. There’s nothing extra on the investing side in Build Wealth, so you don’t need both! Thank you for your support.
@@MeaningfulMoney Thanks for your honesty and continued professional approach, it is greatly appreciated.
Hi Pete, I've been watching your very informative videos for some months now and want to say thank you. My understanding of investments is greatly improved because of the clear explanations that you give. In your latest video you mention consolidating pensions. Could you elaborate on how and why it's a good idea to consolidate please? I'm 66 years old and just started getting my state pension but I am still working full time and have, in January, started a new company that has its own company pension scheme. I plan to retire, or reduce to a 3 day week, in around 5 years time.
I just asked the same question. Consolidation seems to contradict the "Eggs in baskets" at the end. Many customers of SVB were probably thinking about "Eggs in baskets" over the weekend.
i think consolidation is a good idea to the extent that it helps people to engage better with their finances as they're not overwhelmed by tons of paperwork. But you should only consolidate to the extent that you're comfortable, so if, as MrDunci says in his comment elsewhere on this video, your comfort number is six pensions, or three, or nine, then don't let me or anyone else tell you otherwise.
Consolidation can also help reduce fees and investment complexity, and is especially useful when you take benefits as it an be a pain to co-ordinate over several plans and providers.
I’ve watched a few of your videos and it has really helped my understanding of the pension landscape- thank you. However there’s still one thing I’m uncertain about if you could answer please.
I’ve always understood pension saving as deferred tax on your earnings. However a friend has suggested with a certain financial strategy you can avoid the tax on your pension for life!
Their thinking goes - from 55 years old obtain a drawn down pension - and access the tax free lump sum over a number of years.
Then once the tax free lump sum has been exhausted. Continue your draw down so that your total income (any salary and pension annual draw down) is never over the basic tax threshold!
The strategy being all major purchases house, car, holiday home etc having been made before capping your income to basic tax threshold so living off just £12 570 a year pension draw down with no other income.
Is this correct? Have they missed something.
No, that’s basically correct. As pension income is taxed the same as earned income, the income tax personal allowance is there to be used. I will often advise clients who retire early to do this. It gets trickier once their state pension kicks in though because that uses up a chunk of their personal allowance.
Great video as always. How do we sustainably fix the knowledge gap that exists and get people understanding this stuff? Do we need more financial coaches and help for those that don't have enough to see financial advisors, but how can that be regulated? I know the answer isn't everyone needs an SJP advisor 😊 , but no wonder they do ok when there is little else out there to help people (apart from your channel and handful of other good content creators!)
You’re dead right. There are plenty of clients to sustain many more advisers and coaches than there are. I also think we need to make teaching this life skill mandatory.
Thank you for the advice, just wanted to ask if it would be beneficial to move previous workplace pensions into a current one? Or to keep them separate? Thanks
Up to you, really. Probably no harm in it. if you're likely to stay at the current job for a while it's probably worth considering, but not if you're in something like NEST, which is a very basic pension.
@@MeaningfulMoney Thank you for your reply. Is a 'NEST' a standard workplace pension?
You mentioned consolidating your pensions? Do you have any more info on why? Maybe another video? 😉
Yes I’ve covered this. Start here: ua-cam.com/video/wHMnaAwWNLE/v-deo.html
Danger zone is when you are healthy.Enjoy it and for gods sake dont leave your pensions for retirement homes or the government...
Preach. Totally agree.
Is it truly possible to transfer a pension into a sipp or sass and use it in a ltd company to buy commercial properties for investment reasons?
Hi just wanted to comment on state pension Don’t rely on what your told over the internet my wife did this and we got a result of fully paid. When eventually we wrote to the department of work & pensions my wife was 5 years short which meant we had to pay over £3000 to top up very quickly.
Wow, that’s not good. Glad you got it sorted though…
Pete do you think they will introduce means testing for the state pension?
Maybe. If they do I imagine there will still be a minimum amount paid to all, with only part of it being means-tested.
Your best video to date so well covered
“Pensions and ISA’s should be complimentary” and I have both
65% pension 35% investment ISA
Is there a perfect or ideal ratio , and if so, is that ratio depending on the size of the combined funds?
Full state pension arriving in October btw
Not sure there's an ideal ratio, but yours sounds pretty good. Basically you want options as to where to take the money you need from and when - having both pension and ISA gives you that choice. Good luck!
As yet I don’t have an ISA I’m two years from a DB scheme three from full state pension.
In April topping up pension pot and then I’ll be putting money into a stocks n shares ISA ( some of it the money from The easy access safety pot of money I have
Hi Pete. Excellent video...being a pension professional I totally appreciate how tricky it can be to get people to engage with their retirement!
On another topic, I am planning to manage my own ETF portfolio for the 1st time...to date ice always used one of the Vanguard LifeStrategy funds, but have decided to go out alone next year. Would you be able to create a video on how to put together an ETF portfolio, hope to compare ETFs, what to look out for etc? I think there will be plenty of viewers considering the same at this time of year. I look forward to your next video 👍
Maybe, Robin. Maybe.
Brilliant!
Thank you sir!
If there is a state pension in 20-25 years time my guess is it'll be means tested and anyone who did the right thing and saved and built a work pension etc... won't see a bean.
I can’t imagine they’ll make the whole thing means-tested. I’d be amazed if they didn’t make at least part of it guaranteed for all
At 3:40 you mention to combine DC pensions into one. What is the risk of this if the Pension provider went bust? Are the individual funds that are part of the investment ring fenced? What would happen if these funds are from the Pension provider that may have gone bust? Finally what happens if the fund manager goes bust on one of the funds that you have investments in?
Pete did a video about this a while back. I don’t think UA-cam allows links in comments so it’s called “can I lose Money?” or “Losing Money - How does the FSCS work?” It might answer your questions.
If a fund manager went bust you wouldn’t lose your money because they have to keep your money separate from theirs. Depending on the kind of pension you have, the FSCS limits work differently. Have the minimum amount of plans that make you comfortable. So if that’s two or three plans, then go for it. Not worth losing sleep over…
Hi Pete, we love your videos, but you've hit the nail on the head at 11:30mins. Finance isn't 'taught' and unfortuanately nowadays people dont even know how to cook... they 'Just Eat' or 'Deliveroo'. So expecting them to understand complex(?) finance just isn't going to happen....
It needs to happen. They just need to wake up
Advice does make it happen for some people. Not everyone eats out all the time., and some people do appreciate financial advice. I woud be considerably better off, had the advice I am following now, been available 20 yrs ago.
When you say speak to two or three financial planners - wouldn't that cost a lot of money? Or is an initial consultation free?
Initial chat usually free, Chris, yes. Think of it as a courtship. You're aiming for a solid long-term relationship with your adviser, and you need to see if you get on. It's exactly the same from their point of view - they're sussing you out too! Go with your gut, and remember that if it doesn't work out, you can always part ways. Good luck!
The best investment is family, imagine being old and alone with money a hollow consolation.
Yeah - not everyone is fortunate to have family though, of course. I'm grateful for mine, for sure...
Why hollow?
In 25 years time I doubt there will be much of a public pension the system is already on the brink.
I’m approaching 52 and am just taking out a brand new 147k mortgage over 14 years. With only 10k in savings I do not envisage being able to afford to retire until my late 60’s
We’ll, that is normal, believe it or not. Retirement is a personal thing and going early isn’t for everyone because either they can’t afford it or don’t want to go. Do what you can to improve your financial situation in this home straight.
Objection 🙂 You contradict yourself by talking about consolidating pensions at the start then mentioning "Eggs in Baskets" near the end. Earlier this week, in the wake of the SVB debacle I commented elsewhere about "Eggs in Baskets" and how the idea of pension consolidation rings alarm bells to me. I'm very happy to have my pensions split over about six baskets.
If you having made it already could you explain how to ensure that your pension fund isn't being run by a Neil Woodford. Even County Councils were caught out by him.
Yep, perhaps I muddied the waters a bit there. I do think it makes sense to consolidate, but only to the extent that you're comfortable. So if, for you, that's six pensions, then so be it!
Fact is, there's really no way to ensure there's not another Neil Woodford running your pension fund. I would say that it does makes sense to have more than one fund from different providers INSIDE your pension. the pension itself is just an admin wrapper, remember, the money is invested in and by the FUNDS, and that's where some diversification is good.
lol 😀 never seen you angry like that before Pete. Completely understandable though.
Great video as ever.
More frustrated than angry, but sometimes it's good to show some passion, right?!
You mentioned combining pensions into one. That’s as clear guidance as I’ve heard. I have 5 pensions over 32 years. One is DB but 4 (inc current employer) others. Always thought best to keep a spread but never given it much thought?
I'd say be intentional. Is there a reason for having multiple pots? Usually there isn't, it's more down to inertia. Usually it's more costly and more hassle to look after four pots than one, and with fewer pots you can think of the fund as a whole and invest accordingly. Good luck!
Inertia + lack of knowledge + not keen to have a FA due to fear of being ripped off!
@@nmax1969 one thing I would add with DC schemes and combining advantages. When you do want retire and access the money and doing flexible draw down say, thinking the hassle getting tax man to recognise what’s tax free if you take retirement early so have your personal
Allowance to take into account. 4 pension funds to communicate with. Will they all follow wishes ref beneficiaries etc.
I have a widows pension, I only work part time due to disability. I have 12500 in pension B which I can draw next year I was thinking to draw it all down pay the tax then add it to my ISA. Do you think this is a good idea?
I think if pension pot is less then 35K you aren’t going to pay tax if I am not wrong
I can’t really answer that Simone as I don’t know your situation and I’m not allowed to advise here, sorry!
Two things are concerning me at the moment. First of all the MIT study that was reviewed recently thst says we are running out of resources and another Carrington event, which could send up back into the dark ages. Does anyone have any thoughts on this?
Both are possible, of course. I’m a hit fatalistic about such things, thinking that if they happen. We’ll have bigger things to worry about that our pension funds. Maybe buy some gold and a shotgun?
58 now....will be getting made redundant at the end of the year (59 by then).
Will have around 150K (this will include 30k redundancy i will be receiving) the rest will be made up of Pension/ISA/Bonds.
Question is....what the hell do i do??
I’d seek advice, tbh. Big decisions to be made - good luck!
Hi Pete, Great Video , clear and to the point as always. One point i feel is overlooked in many retirement plans is downsizing. We hear about income from a rental property but what can you do with the cash if in retirement you sell your main home and purchase a smaller one or move into your rental making that your primary home and suddenly find yourself with £xxx,xxx cash towards retirement that you are too late to just lump into your existing pension pot - would like to see some ideas on that type of retirement plan
Good point. Downsizing is a useful option for many, and arguably should be considered first before an equity release arrangement. It’s not always possible or desirable, but should always be considered.
6% returns are very differcult in this downturn you might have to wait many years to achieve this growth.Many pensioner have lost quarter of there pots or more so you must have strong stomach to ride out the noise and stay the distance.
Always need a strong stomach as an investor.
The reason why they keep moving the goalposts and increasing the retirement age is they’ve spent your money and can’t afford to give you your money back or benefit as they like to call it.
You may be right, Mel. There are still plenty of ways to benefit from the system though...
So true. And I am sure tomorrow’s budget will bring the pension age to 68 earlier than 2044 as it was planned. Basically think of state pension as a bonus and don’t count on it as income.
Brilliant
Thank you, Rachel. You're very kind!
sound advice
Thank you 🙏🏻
I’ve stopped bothering with planning. My uncle just dropped dead suddenly at 55 from a heart attack. And I had a stroke at 28. There’s just no guarantee we’ll even make it to that age and I kind of don’t want to anyway. Not with health issues anyway. It’s better to work and enjoy life all the way. You just don’t know.
I can totally see that, Jaymie. Live for today but put some aside for tomorrow if you can. I wish you well
I wish I’d known earlier in my career when I was earning less than now to make sure I increase contribution percentage to get the highest employer contribution and not just leave the default percentage. Nobody teaches you this stuff.
That one trick can be responsible for a massive difference to the eventual outcome, Gulzeb. You're dead right, this really SHOULD be taught in schools...
Stay on the soapbox - its needed for many- I will never understand why schools dont teach personal finance
Thank you Martin!
Great informative video as usual.
I currently have dropped my work hours from 37.5 to 16 p/wk and have £70,000 only in my pension pot.
I am looking to pay the tax and take it all as cash, would i still need to use a pension advisor for this or can i just request it through my pension Co. ?
If you take it all at once there may be tax implications. The govt has free pension advice service, maybe look at this first.
@@puppetsnippets6830 Thank you. Yes i am willing to pay the tax on the 75% and take the cash, but do i still need to pay and go through an advisor or can i just take it from my pension company ?
You’ll need to ask the pension company, but why would you throw away so much in tax? Even spreading it over 2-3 years would reduce what you pay, surely?
When planning your retirement don't forget to leverage the full potential of shoplifting and benefit fraud. Being a hard working and honest tax payer has become a total mugs game, so if you can't beat 'em, join 'em!
Pffffff! 🤣
😮😂😂😂😂😂😂
Crowd cube Invest Engine crowdfunding is available online now but what’s your thoughts on the crowdfunding is this a good buy investment