I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Essien-ij However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
I'm 60. My first wife died at 52. I'm very conscious that you need to get the balance right in all this. You need to enjoy life when you are younger but put some aside. Also you need to be aware that after 80 you are not going to be able to enjoy the proceeds of your savings as much. You actually need the money for say 20 years at age 60 and plan accordingly.
I agree you don’t want that hassle. I only invest in monthly paying High Dividend funds. Dividend return after tax is 13,3% net. No hassle and asset can be sold daily. Of course the shares will also appreciate throughout time, but that is secondary, but dividends remain the primary goal. If you live from dividends your base amount of savings will never deplete.
@@juanandrea9091 Stocks, forex and crypto are good investment. But before you go into any investment as newbie, seek a professional guide, it's so important to successfully investor.
The hardest thing is that once you get into a habit of saving, it is very difficult to then switch to spending when you reach retirement. This is my dilemma having reached retirement.
100% agree - it’s a lifetime habit - I’ve been a high earner yet always been careful - still working and paying i to retools so but could easily retire on plenty of £. Need to rewire my values and thinking I think - maybe help my kids etc
Really good point. Have numerous arguments with my Mum that she needs be spending to improve her lifestyle/wellbeing. Response is always the same - "Want to leave as much for you as I can" It's admirable but will leave a taint on the estate in my mind.
I struggled with this as well until I realized that a large portion of this "problem" was that we were very content with our frugal lifestyle and it was hard to find ways to increase our happiness with additional spending. So I decided to not worry about it and the "problem" was solved! If we ever come across a way that increased spending will make our lives better our assets stand at the ready but we're done searching for them.
I am just about to retire and getting serious about what to do with my various pensions. A bit late I know, but there is something that almost no one seems to take into consideration: One off large expenditures that can hit you after retirement. Examples could be replacing your car, central heating boiler, or house roof. It can be very difficult to deal with these events when you have a fixed income.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
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.
Hi Pete, I just found your channel today. I'm loving the videos I've watched so far and I agree that it's fun and exciting to go over your finances and track your progress.
As someone 7 yrs into retirement now (July 2022) my biggest worry is the cost of heating my home. If you're a young person it may be sensible to include provision for unforseen pressures such as we're heading into this Winter within your retirement income plan.
Wow! For most people their biggest concern, I think, would be healthcare, especially long term. That can be a nightmare and wipe out the most prepared. In retirement we bought a nice woodstove. About three cords of wood gets us through nicely. Nowadays I get it delivered for about 250.00 a cord. I started out cutting it myself, then I got scraps from a local lumberyard for a few years. They sold scraps by the truckload very cheap ($20.00 a pickup load). Of course, I had to load it and unload it at home. I burn constantly from early November through early April. Even at the $250.00 a cord it's cheap compared to gas. We almost never turn on the furnace. The key, buy an efficient stove (we have a Blazeking Princess) that is bigger than you think you need (so it burns all night).
@@alansach8437 I think the original poster lines in the UK. Here we don't have to worry about the healthcare thing for the most part as we have a National Health Service - you get 'free' healthcare for life. The NHS is not without its issues but it is there. I know roughly how much my brother pays for health insurance in California, it's a disgrace.
@@alansach8437 Bit of an old video, that I've only discovered recently. Most of the content of this channel will only really apply to the UK pension situation. This video is probably pretty universal. As ukgroucho says, we have free healthcare in the UK. There can however be big charges for nursing homes which can easilly wipe out savings/property. But these come at the end of life when you are not relying on them to fund yourself. However it may affect a surviving partner, and any legacy you want to pass on. Woodstoves in the UK tend to be smaller single room units. Full house central heating from a wood burner is less common. And big outdoor wood burners are pretty much unheard of here.
A mention also for the other benefit of planning, starting off like this. It’s not just about “how much” or “when”. With a very well thought out model, we can start to get a feel for “how”, and cash flows. By which I mean many people struggle with work suddenly ending, income cliff edges, or wealth when state pensions mature (if lucky enough to have a private one earlier). It’s possible to plan eg moving to 4 then 3 days a week - if employer supported - when you know how this effects lifestyle, savings, pensions accrual. What about taking an early pension with a small penalty, if affordable. Using lump sums to tide the gap until state pensions. Using lump sums to buy NI years if missing etc etc. It offers a degree of control knowing not only when one can retire, but how one can transition into retirement seemlessly* *noting I know that in life, anything can happen and change everything in an instant - but that fact doesn’t invalidate the premise and benefits of having a plan.
Before I retired 2 years ago I challenged myself to put away 50% of my monthly income into stocks which is quite easy since I live frugal without debt. I work as an account executive, and make over $20000. $10000 goes into dividends, and the other $10000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed wealth strategist who allocates funds to a plethora of assets. I have to stay disciplined, and remember that I’m in it for the long term. Just got my first property and hopefully looking to get another down the road. Good luck to everyone and thanks for the great video.
Well, I've gotten into a plethora of assets with $70k spread across stocks index funds, and ETFs, for the long term. I've been investing with help from a pro fund manager, Herman W Jonas who oversees my investments. Now I sit back and reap my dividends while I just reinvest from time to time.
I'm am old dog and I'm not big on learning new tricks. After so many years of trial and error, I finally found what works best for me, both financially and emotionally.... and Herman is the perfect sounding board for me. He is far and away the best I have come across. He is all focused on teaching and making sure that I make profit. What more could I ask for?
@@kryptoniteee in a Superman movie there Was a computer programmer that was stealing the fractions of a cent the company computer was rounding over. The owner was livid! Screaming that he would never find out who it was. Unless they did something really stupid. Then he looks out the window to see a new red Ferrari pulling into the company garage. That’s first thing you need to know. Don’t do anything stupid Stupid defined as you know it is wrong but you do it anyway. Live within your means. Some couples give each other cars for Christmas. That can be reasonable if your Christmas bonus was over a million dollars. Buy a shiny car and stocks with the rest. Not spending all of your bonus on a down payment and finance the rest. That would be stupid. Teach yourself to save. Learn the difference in a fiduciary and an “investment counselor”. Don’t gamble. Where the odds are against you. Take risks. Not a gamble. Get good value for your money. If it seems too expensive, it is. Eliminate reoccurring charges. For instance, propane is sold in the summer for 1/3 of winter rates. Pre buy propane when possible. Avoid payments.
If expenditure = £36K then would my required income/pension stream approx = £40K to allow for tax? If 40 now & retiring at 60, then would I need to increase fund by 8X 9339 = £75K ? To allow for gap until state pens kicks in. If planning to retire at 60, would it not be more realistic to assume 3.25% rather than 4% ? I.e. multiply by 31. Considering these factors could mean the required fund is (31X 15K) + 75K = £540K rather than the £275K suggested.
You’ve correctly identified that there are many variables. Tax is one but depends very much on how you access the money. I’ve gone into a lot more detail in podcast episodes on the same subject, and I deal with decumulation strategies in detail in Meaningful Academy. Limited here by time!
The one thing I always advise people thinking about retiring early is to give at least as much consideration to what you want to do in retirement as you do to the financial side of things. I retired at 40 (failed as I didn't know what I wanted to do with myself) & again at 48, Had a great 18 months travelling the world but a mate asked me to help him out on a project (& it was in Singapore which I love) then finally retired (to Thailand) at 53... Had "Enough" money ( i live a simple life so don't need too much) at 40 but it took me till I was in my 50s before I realised what I wanted to do in retirement (which is to Travel :) - Damn this CV19!!! )
I plan to retire early in August this year at 52. I have nothing to retire to except I’m looking forward going to sleep and waking up whatever time I want. Also, I look forward to cooking every day. I’m sure I’ll get bored eventually but I have the rest of my life to figure out what I want to do.
Very nice example. It would be nice to do a VDO with a sensitivity analysis based on the uncertainty of the income and to a lesser extent to the expense. Specifically the income components such as rental income and DB Pension have an uncertainty in them, as well as the investing component....
Watched so many of these videos... Thank you, wish I learnt this stuff I’m school! My husband is sceptical of the safety of pensions and schemes given the ever changing rules, ideas, schemes and laws of a messy selfish government...
I understand the scepticism, but it has the potential to rob you of all kinds of benefits. Yes, rules change, but usually in the direction of more flexibility, even if that comes at the price of slightly higher taxation.
That’s a very good question for plenty of debate; however, it is hard to even calculate because it’s mostly dependent on your cost of living now, savings rate and where you live. Look at SF, California… even professionals can’t afford their rents or housing there.
Make sure you have state pension full entitlement (buying extra years can be a good deal if it ensures you hit 35 years - after that no more benefit). Then occupational pension; nearly always a very good idea; then Lifetime ISA (if under 40); then personal pension fund investment (or property if you think you will be able to avoid voids, and cope with future taxation levels). Rent a room scheme- with the right tenant- can be very helpful if things are tight. Finally don’t forget a bit of ongoing work if you are capable, can enjoy it, and can fit it in to your busy retired life.
Why x 25 ...its the 4% rule. He is working out how much 4% is of his shortfall amount. So how much would 100 percent be... 100 ÷4 = 25. So multiple the shortfall by 25 means he can take his 4% of the total each year. Hope this helps as that was the query I had after watching..
The Twingo just got cool, I think your Yaris makes the list. And personally speaking I think seeing that you own that car makes me have much more trust in you. Odd huh.
Good video and great to keep it simple so the 4% rule is the key. However it's best to work with net income post tax and NI and the reduction in these numbers post retirement can have quite a major effect on "the number" So I'd say try to estimate net income now and post retirement if you can...
Pension AVC is a good method, if you are debt free and have a low cost base (which you should have pre retirement) this can double+ your pension savings in the final 5 years of working but not many people mention that, also you do not wan't a huge sum in your SIPP unless you plan to retire at 55 as you can fall into the tax out trap, again not many mention that. Everyone also says buy stocks blah blah blah, but you may need a mix of asset classes in the future as you can''t guarantee it will be like the past, so cash, short duration gilts / treasuries, precious metals, income stocks, growth stocks, (all stocks spread globally, mainly funds, bought at multi year lows) plus commodities and don't be scared to buy some options at times of extremes to get exposure to some of the volatility, risky assets should be a very small percentage of your holdings, this includes most long duration debt instruments and stocks that are up 1400% in a year, crypto, etc, it's better to make 5% risk free in short duration gilt funds than loose money buying stuff at crazy prices as when you loose money at retirment age it's not like you can wait 20 years for things to recover.
I was discussing this with my IFA, as I understand it being a 40% tax payer, to get an extra 10k pa would only cost me 6k in contributions due to tax relief at source?
@@joneastelow3242whatever you sacrifice goes directly into your pension, you may have to pay NI at 10 % depending on the scheme, but as you say you get an extra 40% net contribution at least as you would have paid that in tax anyway. But if you are paying 40% tax on your pension when you draw it then it's not such a give away, just a deferral.
Good Video - thanks. Of course, one thing we old codgers didn't factor in was the increased cost of energy. Once retired, you will spend at least 50% more time at home. You either fork out or freeze! Great! And I won't mention my Stakeholder pension with Scottish Widows. Lost 15% this year, 10% last year and they still charge me a 0.8% "management" fee! I simply can't afford to take it, hoping it will make something in the years to come. Not sure if I'll last that long! Luckily I have the state pension and a DB pension so I am not on the bread line.
Great video as always. One thing though is the way I've worked out my number is by projecting the potential inflation rate based on the rise in the state pension. I'm 37 so I have 30 years or so until I hit state pension age. The state pension amount has increased by 3.5 times since 1991 (30 year period) so I times my overall retirement number by this which comes to the scary number of £4m (for myself and my partner)! Daunting I know but rather aim high, hope for the best but plan for the worse. This will predominantly be made up of the state pension (hopefully), private/workplace pension, Stocks and Shares ISA, rental income and potential profits from bitcoin and gold
I have a company DB pension and receive the full U.K. state pension. I also have a SIPP which I can vary the income I receive from it. The biggest issue is the tax threshold if I go above a certain amount I get taxed at 40% instead of 20% so even if I wanted to work effectively I would lose nearly half my salary in tax. This is s massive dis-incentive biggest issue people forget about when retiring is tax. Although you do stop paying NI contributions which is a bonus
Great video! It's hard to figure out what you think the number should be when you're take inflation into account 20+ years in the future, but overestimating is always a safer bet :)
Since 2008, my partner has had his state & employer pensions, and I have lived off savings. Household spending and anything we do together (including holidays) is paid from a joint account, into which we each pay £300 a month. This is seldom all spent, and the excess is kept for emergencies. Personal expenses (mostly clothes and hobbies) are paid individually. We don't stint ourselves (we bought a new car for cash 4 years ago), but I bet I haven't spent over £6k in any of these 13 years (excluding the annual £2,880 to my SIPP, so the government can add its £720!). My ISAs and SIPP have grown in this time, and my state pension arrives next month. What am I supposed to do with it?! How could I ever spend £36k pa?! In my best paid years of working, I never made more than £25k, and most of that ended up in the SIPP or the ISA. ,
With 5-10 years to go before my wife and I retire, the number two concern we have, behind the obvious number one of having enough money, is being able to keep busy enough to not regret retiring.
Been retired 3 years now my wife for 6 years. Not one day has gone by where we did not have something to do. Just think of all those things you wanted to do but kept saying I don't have time. Good luck!
It’s actually keeping your health that should be #1. A colleague of mine worked hard. Got into a top global position. Retired at 63, went on a cruise with his wife . Caught meningitis in Mexico and dropped dead. Millions to his wife. :-)
Yeah. My parents worked for 35 years for a company then died at 64 and 66 . The company kept the pension. Second you won’t need much when you are 75+ because more than lightly you’ll have slowed down and be shuffling around with a heart condition, so cannot travel.
My husband is the same way. Worked for 40 years saving and investing heavily. He passed away after one and half year after he retirement. So sad. I'll have a meeting with my lawyer and account next week, talking about reducing tax...!
It's not a lot really. In retirement you are likely to have all the same bills you had except mortgage - yes I know for some that might be a sizeable chunk of current income - but not all.
0:28 it's a cool car in that is not tying you down to huge overheads and stressing your finances. I know people who drive "cool" cars buy spending more than 100% of their disposable income on it. That then tell themselves they are living the dream.
I wouldn't trust stocks and shares as far as I can throw them, since an FA mismanaged my private portfolio for his own commission gains, plus their volatility, and there are plenty of examples of peoples pension funds disappearing. I now own a letting portfolio, wherein the income and capital appreciates in line with inflation, and more, thereby keeping pace with the increasing cost of living. I also built my portfolio income to provide 50% more income than I needed, to cover an extreme vacancy allowance. Being an expat, I also discounted the NI pension, since it discriminates against me living in Thailand, and will be frozen, ultimately making it an insignificant sum in years to come. Now comfortably retired, even before pension age, 8 years early.
So, as long as I can: Pay my rent. Buy some basic food. A few smokes (ciggies). The odd drink. The bills..water, electric, ,etc., things like that. I'm fine. People who say: "I want hundreds or thousands of pounds for holidays or fancy cars." Are just plain greedy.
Great video, thank you. My circumstances are different to most people's and because of my circumstances I won't be retiring at 66. I would love to chat with you, at your convenience.
Hi Pete, just started watching you. Thanks for great & and helpful videos. Apologies if you've been asked this before. Could you say as a guide to having enough pension what percentage that is to what we currently earn? Seems an easier way to gauge as we currently manage that finite figure.
That all depends on your outgoings, Geoff, or your expected outgoing in retirement at least. And it depends on if you're likely to have other, non-pension assets. So if you need £1500pm to live in retirement, and have no other assets, then you'll need enough of a pension fund to cover £1500pm, rising by inflation, for the rest of your life. I'd love to be more clear, but the answer really is 'it depends'!!
What the hell do people spend there money on I only spend about half my 2500 a month wages and very very easily save 1200 a month Am 48 and live well Rough monthly spends 50 fuel for car 100 council tax 72 gas and electric 17 gym 30 car insurance 20 house and contexts insurance 20 mobile phone 30 broad band 40 water 120 car finance 8 Netflix 25 annual mot and service 120 food 120 nights out Total £772 a month My 2500 wages goes into savings account ,I transfer 1200 over into current account 1200 minus my monthly out goings of 772 is 428 left This £428 a month that's left is over 5 grand a year ,this easily covers 2 X foreign holidays abroad , If car needs tyres , repairs ,repairs to house ,new carpets,paint and decorating materials ,gardening materials,birthday and Xmas gifts ect etc etc And this is from 1200 a month 1300 a month stays in savings account which is obviously over 15 k a year
@@matree.5407 I’m 48 Bought first house when was 25 I’d been saving since started work at 15 and put 25k down on 50k house , 25 k mortage which I paid off in around 3 years by living like a pheasant and working lots of overtime and driving a banger and rather then paying just the 200 pound a month mortgage , most months was paying 800 to 1000 While my mates bought brand new cars I was driving a 10 year old banger , was mortage free by time 29 Lived there till I was about 40 Sold it for 150k Put 20k savings towards that 150k and bought a 200k house with 30 k mortage Paid that 30 k off in about 5 years , And btw I have never had a high paid job , just always been thrifty Wages now about 2500 a month sometimes few hundred more if I get bit overtime in Hopefully can wrap in work before I’m 60 and chill and travel
And make sure your life partner has a good provision; if self employed and especially if you are a higher rate tax payer, paying him or her and investing on their behalf can give very good returns.
' WOW ' what an eye opener ' you are providing people with lots of information but ' is my state pension comprised in any way be cause i have a private pension ? , keep up the great work ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,Alex
I presume you mean ‘compromised’? If so, then no, having a personal pension doesn’t affect your state pension. If you contracted out of SERPS in years gone by, you may have an additional pension through a private pension that may otherwise have been paid by the state, but if that’s true, you’ll likely know about it, and it will be reflected in your state pension forecast.
I'm looking to take early retirement in the coming months I'm 62 I've got the full amount of natural insurance allowance 35 years. Will i still receive my state pension when I reach 66 although I've returned early
Im 45 in a few months have 116k in company and private pensions pay combined £449 a month into it inc tax relief my state pension age is 67 currently so i have 23 yrs to retirement i was looking at 25k a yr income with state and private pension combined what ideally do i need in the pot ball part figure to not have to work in retirement , i intend to put payrise in to my pension as i dont want to pay extra child maintenance and when my mortgauge comes down i will put 50 % in to the pension pot each month .
An example: if you reckon you need £20 000 pa income upon retirement then aim to achieve £40 000 pa. Likelyhood is you won't need it, but providing you mitigate any higher rate tax liability tgat's not a problem.
@@danielclitheroe1869 How would you mitigate the higher rate tax? I'm likely to be drawing £40K a year or more in retirement so this does matter to me. I see no means of reducing higher rate tax, except by gift aid to charities.
@@owensmith7530 Assuming a personal allowance of £12570 you'd need in excess of £50000 to put you in the 40% tax bracket. If you're using drawdown you could withdraw some of your pension as an uncrystallised funds pension lump sum, that way 25% of the cash would be tax free.
@@danielclitheroe1869 Thanks, I wasn't sure if the uncrystallised could be taken annually, but it sounds like it can so the 25% tax free each year would do the job on top of personal allowance as you say. I already have a fair chunk in a stocks and shares ISA so I won't be wanting a lump sum when I retire.
What about tax (and ni if under retirement age), it would be interesting to see the after tax and lump sum withdrawals figures and and maybe based on a married couple also?
Hello Pete. Love the content! Do you mind me asking what equipment you use to make the videos? Camera, mic, lighting? Am thinking of doing a few videos myself - wouldn't be a rival, I'm a tax professional 🙂 - but haven't a clue about these things.
Hi Pete. 51 yrs old, no savings, have £1500-£2000 per money to invest or save, each month. Would appreciate your guidance to help turn my potential retirement into a comfortable experience. Probably worth doing a video on this and watching my progress over the coming yrs? Would love to hear your thoughts. 😊
I really like your videos. However, the 4% rule does not work a lot of the time. I appreciate that you are simplifying this for educating the mass auidence, but it would be really good to see you also talk about the risks or this strategy, how it compares to others, or even mention a disclaimer. That would really drive the beliveability of your advice. Just a suggestion toward a more informed auidence. Much love.
There was an interesting bit of qualitative research which suggested The various levels of income needed in retirement for three tiers of lifestyle. For a single person I believe they suggested 13,000 was enough for a simple lifestyle and 19,000 was a comfortable lifestyle (we’re comfortable includes one or two European holidays a year and some eating out et cetera) For couples it was 19,000 for a simple/basic lifestyle, 26,000 I think for a comfortable lifestyle and something like 41,000 for a luxurious lifestyle - where this means new cars every 4 years, regular eating out and annual long haul holidays)
Having no one to leave an inheritance to, my house is a big chunk of my pension. Whether that's by downsizing or equity release. More people should do this I think. You've worked and sacrificed all your life - just to leave a big pot of money to the next generation? No thanks.
Another benefit of doing this is if you require moving into a care home, you have already signed away a % of the house value, so you will hopefully have used a good portion of the value on you, and as you say our aim should not be to leave a large sum of money to each of your children, Look after yourself first.
The US Social Security number is more generous. My wife and I will receive $72K USD or 58K pounds in today's dollars adjusted for inflation each year when we draw it in 4 years. Not counting her teachers pension or my part time consulting income I project a 1% withdrawal rate. I guess we oversaved but we can't seem to spend more than $100K USD though we easily could afford it. Very clear and entertaining presentation.
Question can I use my LISA to buy my first house and then keep paying to use it for my retirement? So withdraw it for ex next year to buy my home to 0 and then do it over again for my pension?
All fine and good. But who can really save these days??? Only the top 20% (Estimated) of the population. Yes! The bloody rich! I was once asked if I'd like to have a Private Pension. Not one through work, but one that I could pay into as an investment for my future retirement....After I got up off the floor and stopped laughing! I asked what he had in mind...what amount he expected me to pay. Minimum...wait for it....£500 + a month. Yes, that was the minimum. To a bloke that was earning less than £7,000 a year. Which at the time was quite good for the area that I lived in. I think you can work out where I'm going with this.
Eating bread and water and living in a Cardboard box, how much money do I need to retire on? So my question is a dumb question just like asking in general how much money do I need to retire as no one knows.
This is a good and informative video and I know personal finance is subject to each individual circumstance however I do think the property and DB pension should be removed from this. I think it would help people like myself to identify the “real world” figures required. Also it might be worth also calculating personal expenses you are already paying including bills etc.
Inflation goes up and down. But over a 20 year time frame your looking at 3% growth so if you earn say £20,000 today to have the same buying power in 20 years time you’ll need £40,000 roughly. 3% growth is what’s needed to keep the economy going so all prices double ever 20-24 years that’s capitalism.
Thanks Pete, been following you for a while but circumstances are just changing for me, i already have a Royal Naval pension which is paying out and the company i work for i have a pension which is part DB and part DC (been with them 17 years). For several of those years i have applied additional voluntary contributions to my DC part to build additional investment for retirement. Following a grade change my salary is about to increase and looking at whether its better to up my DC contributions and take the benefits of the tax allowance through the company or whether its better not to keep all my eggs in one basket and look to invest elsewhere. I am 57 so not that far way from retirement so its only a matter of time and wondered if there was longevity in time to make an alternate investment an option?
But do you take into consideration how long that pot will last? Is that why you x 25 because you assume 25years? Ive already reached 275k in the pot at age 33
The only thing I think is perhaps missing from this video is 'guide expenses'. Obviously its dependent on lifestyle, but give or take what you can expect it to cost. I personally live pretty frugally because that's how I was brought up and I'm early into my career and haven't bought a house yet. So without lifestyle creep I could afford to live on very little but that's obviously not what we want. I know the pensions and lifetime savings association has some retirement living standards.
I found a really useful guide for this at retirementlivingstandards.org.uk essentially they consider: minimum, moderate, & comfortable lifestyles for singles & couples and illustrate the income required and what might be achieved in each
Good shout, Pete - thank you. @Alex, there’s just no way to put a guide expense that would resonate with everyone because different lifestyles, areas of the country and lots of other variable mean that someone would always feel like I’d totally missed the mark!
@@maxflight777 Property is our main income, you can also own an 800k portfolio of rentals for 200K and get approximately 36k tax free per year by releasing equity & you have the taxed rental income on top
Well if you move your pensions to PensionBee like I did in 2021, you'll have nothing to retire on as they have decimated mine by a fortune, any advice on how to report them to see if I can get compensated for it. They are abysmal to be quite honest.
Have they lost money or has your pension been affected by market conditions, which will be temporary. But if you answered risk questions a certain way and they invested according to that then you probably won’t have any kind of claim on them. Check carefully the stuff you signed, and if you feel you have a complaint, take it to them.
