I have invested with Royal London and over 4 years it has not increased in value at all dont believe draw downs will give you more money it only makes your adviser wealthy and the company you invested in
Hi, sorry to hear the bad news. The last handful of years has been a tumultuous time for investors. I would suggest speaking with Royal London, and if you believe there are better options out there for you. It would be worth investigating a move. But its worth speaking with Royal London regarding your concerns, and understanding the fee they charge you.
How old are you? Lifestyle investing means more money is put into gilt/bonds as more stable and these have tanked last couple of years. Growth style funds more into shares so more volatile but have done Ok last few years
There is a third option, namely a UFPLS (Uncrystallised Fund Pension Lump Sum), where there is NO drawdown account, unlike the Flexible Access Drawdown system mentioned in the video. With the UFPLS, for each withdrawal, you can take up to 25% tax free and the remainder becomes subject to Income Tax.
Very good video thanks for posting. One major advantage of drawdown is that you CAN run out of money. The more I speak to people retiring (like my friends and I are who are all all early 50s and about 5 years away) the more we want to enjoy our retirement and spend it all up. None of us want to be the richest man in the graveyard and actually, running out of money at 90 is a viable plan. Drawdown gives you the option to do this, meaning you will be able to spend much more income than an annuity. Plus, if you still have some leftover, it is passed on to your family, and is exempt from inheritance tax. Annuity rates will have to reach unknown heights for me to consider one. Drawdown all the way for me
I was in drawdown for 2.5 years up until the 13th of December and now I have an annuity. The annuity I purchased, pays more per annum than my drawdown plan . My annuity also increases more per annum than my drawdown strategy. The drawdown plan increased 2% per annum, where as my annuity increases by 3% per annum. Yes, I knew I didn't have to stick to my drawdown plan that my financial adviser drew up, but I don't think that would be a good idea. I wouldn't be comfortable with the thought of running out of money, never mind actually running out of money... My annuity also comes with a 25 year guarantee. Drawdown actually affected my mental heath... My attitude to risk wasn't as tolerant as thought it would be... There were certainly some tests in the last 2.5 years e.g 20% inflation and poor investment return. I found it truly uncomfortable. I also didn't like not knowing if I was overspending or underspending... Drawdown is psychologically testing and I'm glad to be out of it....
@@Simon-Burns592 Really good point about risk and psychology. An annuity will take all that uncertainty away, and this is arguably one of, if not the, main advantage of this strategy. Fully understand why people take an annuity. I am interested by your drawdown plan vs. the annuity in terms of amounts. If you don’t mind me asking, what was your drawdown % rate, and what % does your annuity provide?
My annuity starts paying a few months after I turn 58.. The yield from my annuity starts off at 4.38%, but because I've added 3% inflation protection to my policy, that will increase slightly every year... In 2025 the yield will be 4.52, then 4.70 in 2026, and then on and on... I have thrown away my drawdown strategy, so I can't give you an exact figure. The drawdown rate started off at something like a conservative 3.50%....
Fair play. 3.5% drawdown sounds a bit too conservative but I don’t know your circumstances. Glad you’ve made the right decision for you, and I’m sure you’ll enjoy the peace of mind. Hope you have a long, healthy and happy retirement 👍
Can you tell us more about delaying your state pension,as paying into it at the current economy is difficult,that will be help full thank you.The state pension is it separate from NHS pension and what are the age between the 2 to beable to get paid out.Thank you for your time,brilliant program can a person email you for personal advise.
The state pension IS indeed completely different from a workplace NHS pension. A state pension is available to anybody that has paid sufficient National Insurance Contributions, either whilst an employee or whilst self-employed or even from voluntary contributions because not paying NICs from work or potentially credited to somebody by the state because, for example, they are bringing up a child or children below a certain age. The NHS pension is, typically, paid to staff who work for the NHS mostly the nurses and doctors, though might include others associated with the running of the NHS. The longer you delay taking the state pension, the greater pension rate you will receive when you do decide to take it. Furthermore, you can start taking it, and then decide to stop taking it, for example you receive an inheritance or win a lottery, and it will pay more the longer you do not receive it. Typically, it can take 17 years for stopping state pension income receipts to pay back. If you expect to live well beyond the average age of death, it is certainly something worth running the numbers over. Alternatively, another strategy is to take the state pension whatever your financial situation. Then, if you do not need it, invest it, say in an ISA. However, the danger is that as income rises, you will find ways to spend it rather than saving it!! You cannot receive the State pension until you are at least the state retirement age. When this occurs depends on your sex and when you were born. My late mother got her State pension at sixty years of age and men of her generation had to wait until they were sixty-five, which always seemed unfair as women live longer on average. This discrimination was deemed illegal, so now sex no longer matters, but your birth year does. I was born in 1963, so I cannot claim the State pension until I am 67. For those much younger, they have to wait until 68 years of age. These dates are being reviewed currently by the UK Government. I suggest you ask Google when people born in your year of birth can expect to collect the State pension at the earliest. By the way, if you continue working over the minimum State retirement age, you can choose to take the State pension or not, it is up to you. If you take the pension and work, you will end up paying more Income Tax. However, should you work whilst past your retirement age, you will NOT pay any more NICs!
@@johnporcella2375nicely summed up, for the majority deferring state pension does not work out as takes 16-17 years to recover the lost money through an increased pension. Topping up shortfalls in NI contributions the best way to boost your state pension of note hrri
