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How Much Is Enough To Retire Comfortably? 

MeaningfulMoney
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Today I’m going to be helping you to answer the question that I spend my days answering for my financial planning clients. People who are thinking about retirement come to me with one main question - ‘Do I have enough?’
Working out your retirement number is always a moving feast. The variables change and there are lots of moving parts.
But it’s ADDICTIVE! Working towards this ultimate goal is exciting, challenging, sometimes disheartening, but always worthwhile.
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Chapters:
00:00 Intro
01:07 1 - Types of Pension
03:47 2 - Free Money with Pensions
05:49 3 - How Pensions Are Taxed
06:44 4 - How Pensions Grow
08:24 5 - How you get your money OUT
11:20 Summary
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🔴 • RETIREMENT is POSSIBLE... - RETIREMENT is POSSIBLE (but it takes work)
🔴 • Pension vs ISA - So ma... - Click here to watch Pension vs ISA
🔴 • 3 In 4 People Are NOT ... - Click here to watch The biggest retirement challenge is not financial
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15 июн 2024

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Комментарии : 467   
@mattwright2964
@mattwright2964 2 года назад
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.
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Sorry for your loss, Matt. You’re right - enjoy it while you can while ensuring you can enjoy it for as long as you can.
@mmane257
@mmane257 2 года назад
remember folks your health is your wealth. never saw a dead man spend a dime.
@Mikey374
@Mikey374 2 года назад
They always assume income from a rental property when you retire. Last thing I need when I retire is the hassle of maintaining a rental.
@MeaningfulMoney
@MeaningfulMoney 2 года назад
I’m with you, Mike - sounds like a lot of hassle to me. I only use it as an example, that’s all!
@369dabbler
@369dabbler Год назад
V little hassle with right management company Also gives you a purpose on the side in retirement
@GuidoHerberghs
@GuidoHerberghs 2 месяца назад
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.
@marissamatty2703
@marissamatty2703 2 года назад
Investment is the key to sustaining your financial longevity. And not just an investment but an investment with guaranteed returns.
@juanandrea9091
@juanandrea9091 2 года назад
Thank you, can u give me a pointer the best investment now ? I'm thinking of getting stocks and crypto
@marissamatty2703
@marissamatty2703 2 года назад
@@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.
@marissamatty2703
@marissamatty2703 2 года назад
Expert Martin Greg is good and competent to help and assist all newbies investors who wants to be profitable and successful.
@juanandrea9091
@juanandrea9091 2 года назад
@@marissamatty2703 sounds interesting, what's the best way to contact him?
@marissamatty2703
@marissamatty2703 2 года назад
@@juanandrea9091 U can mail him directly via 👇
@Anoopsoni10
@Anoopsoni10 2 года назад
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.
@jansher9
@jansher9 2 года назад
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
@deanoh6414
@deanoh6414 2 года назад
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.
@tomj528
@tomj528 2 года назад
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.
@billl1127
@billl1127 2 года назад
Yes, I'm 2 years away from retirement and am secure with my retirement assets but dread going from an accumulator to a consumer.
@deanoh6414
@deanoh6414 2 года назад
@@billl1127 Makes no sense at all. Seek counselling is my advice!
@neilcole3406
@neilcole3406 2 года назад
Stumbled on to your channel,glad l did some very useful information to take on in the scary world of pensions and retirement!
@savetommyrobinsonfreespeec7660
@savetommyrobinsonfreespeec7660 2 года назад
Great video Pete! I wish I knew this when I was a lot younger!
@derekmoore2308
@derekmoore2308 2 года назад
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.
@charliemccollum
@charliemccollum 10 месяцев назад
Great to see people like Pete on this. Tremendous free advice
@oechsli
@oechsli 2 года назад
Great video quality and excellent introduction! Also, wonderful video with awesome tips.
@johnnyeboy33
@johnnyeboy33 3 года назад
Many Thanks Pete, awesome video as per usual Hope your keeping well, keep up the the great content !!! Thanks John
@MeaningfulMoney
@MeaningfulMoney 3 года назад
Cheers John - much appreciated!
@PeterCross-pr9ke
@PeterCross-pr9ke Год назад
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.
@erikjanse3994
@erikjanse3994 2 года назад
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....
@nicklazenby2123
@nicklazenby2123 2 года назад
The more the better thanks for the advice meaningful money. I love this channel!!
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Great to have you here, Nick!
@nicholasplank9423
@nicholasplank9423 2 года назад
Another great clear and easy to understand video thank you
@anthonymiller6234
@anthonymiller6234 2 года назад
Best straightforward advice I've had. thank you
@alexandergault757
@alexandergault757 2 года назад
' How much is enough ' , great review thanks Pete ,
@MrTaffynoel
@MrTaffynoel Год назад
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.
@bigcook3279
@bigcook3279 2 года назад
Brilliant advice..thanks Pete...
@lennytheleopard
@lennytheleopard 2 года назад
This is really helpful for me Peter, and you've got a good comic style. Much thanks.
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Thank you Lenny, on both counts!
@stephenroot1013
@stephenroot1013 2 года назад
Brilliant vid..,thank you!!
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Thank YOU for watching!
@gavinstrachan1373
@gavinstrachan1373 2 месяца назад
Thanks for the advice
@koultunami9013
@koultunami9013 2 года назад
Thanks for the video.
@nazz0007
@nazz0007 Год назад
Peter, thank you for your videos.
@MeaningfulMoney
@MeaningfulMoney Год назад
You are very welcome!
@alansach8437
@alansach8437 Год назад
All depends on where you live, whether or not you own your home, and what you consider "comfortable".
@TheRetirementality
@TheRetirementality 2 года назад
I just found your channel. Lots of good stuff. New Sub.
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Good to have you here!
@i_h2081
@i_h2081 Год назад
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...
@MeaningfulMoney
@MeaningfulMoney Год назад
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.
@josevelez7539
@josevelez7539 2 года назад
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.
@Quebicrecords
@Quebicrecords 2 года назад
I must say as a investor for most of my working life.. this vid is growing on me
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Thanks John. May it continue to do so.
@Lookup2Wakeup
@Lookup2Wakeup 4 месяца назад
I retired at 60. Im now 67. I have done a pension draw down when the market was up, supplimented my state pension when the markets were down by using my savings. Current combined pensions is £2k per month after tax.
@andrewcarter7503
@andrewcarter7503 Год назад
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.
@MrWhoAmI57
@MrWhoAmI57 3 года назад
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
@t8283287
@t8283287 2 года назад
Bitcoin....are you insane....
@ADF-js9vi
@ADF-js9vi 3 года назад
Looks like it's as tiring setting up the equipment as walking up the stairs. 🤣🤣
@brucecollie6892
@brucecollie6892 Год назад
Excellent advice
@follystone
@follystone 3 года назад
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.
@MeaningfulMoney
@MeaningfulMoney 3 года назад
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!
@RuchiV
@RuchiV 2 года назад
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 :)
@johnhorrocks7978
@johnhorrocks7978 2 года назад
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...
@sid35gb
@sid35gb Год назад
4% rule only been calculated for American investments doesn’t work for U.K., European investments you could come unstuck.
@mlj9931
@mlj9931 Год назад
Of course in this example we need more than £275k if we're 40 and wanting to retire at 60, because we won't get the state pension until about 68. The defined benefit company pension might start slightly earlier, but unlikely to start much earlier unless you can take early retirement, at least without actuarial reduction.
@geoffbilson7593
@geoffbilson7593 2 года назад
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.
@MeaningfulMoney
@MeaningfulMoney Год назад
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'!!
@gonnahavemesomefun
@gonnahavemesomefun Год назад
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.
@tonykelpie
@tonykelpie Год назад
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.
@johnmoors2549
@johnmoors2549 Год назад
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?
@colinmiles1052
@colinmiles1052 Год назад
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.
@majorlaff8682
@majorlaff8682 3 месяца назад
It should be renamed the 'mismanagement fee'.
@lizarddronedude3617
@lizarddronedude3617 2 года назад
Depends on your expectations and lifestyle really.
@tonysilke
@tonysilke 5 месяцев назад
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?
@PatrickLloyd-
@PatrickLloyd- 5 месяцев назад
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
@PhilipDunk
@PhilipDunk 5 месяцев назад
I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?
@PhilipDunk
@PhilipDunk 5 месяцев назад
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.
@dazzassti
@dazzassti 3 месяца назад
Economic downtrend…. In the USA…What economic downtrend… what are you talking about. All my US investments are up significantly 😊
@essanjay8604
@essanjay8604 Год назад
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.
@alansach8437
@alansach8437 Год назад
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).
@ukgroucho
@ukgroucho Год назад
@@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.
@gonzo_the_great1675
@gonzo_the_great1675 11 месяцев назад
@@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.
@harrykeogh3994
@harrykeogh3994 2 года назад
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!!! )
@Binatasj
@Binatasj 2 года назад
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.
@smcg112
@smcg112 6 месяцев назад
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..
@nickyjohn9108
@nickyjohn9108 2 года назад
Very informative
@TheWinstn60
@TheWinstn60 Год назад
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
@skylineuk1485
@skylineuk1485 2 года назад
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?
@gjh997
@gjh997 2 месяца назад
Thanks very much 👍
@chubbybrown4real
@chubbybrown4real 2 года назад
What about trusts for what you have? Another video suggestion for crossover amount required
@deanoh6414
@deanoh6414 2 года назад
Go Multi Asset and IT's will be part of the portfolio they are allowed to invest in no doubt.
@Columbus1152
@Columbus1152 3 года назад
Are your state pensions indexed to inflation in the UK, as our social security benefits are here in the states? I use a bucket system, cash for immediate needs, annuities for guaranteed income (non indexed), a small company pension (non indexed), social security (indexed), and individual retirement account invested (growth). I'm more than covered for inflation, and a big chunk for guaranteed income, of course here (US) a major escalating expense is medical regardless of inflation.
@MeaningfulMoney
@MeaningfulMoney 3 года назад
To an extent, yes they are.
@theIdlecrane
@theIdlecrane 2 года назад
For a younger person biggest expense is housing, rent or mortgage, pay off the house, and I think most people are at least half way to retirement because no more rent to pay.
@Autonomous1969
@Autonomous1969 7 месяцев назад
I paid my mortgage off two years ago. I'm now retired at 54. I don't seem to need a lot of money to live on now the mortgage is gone.
@larriveeman
@larriveeman 2 года назад
It depends on your expenses and debt
@BelindaHanson-dz6mr
@BelindaHanson-dz6mr 10 месяцев назад
Thank you that was great
@MeaningfulMoney
@MeaningfulMoney 10 месяцев назад
Very welcome!
@Freddyyyy266
@Freddyyyy266 10 месяцев назад
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.
@Freddyyyy266
@Freddyyyy266 10 месяцев назад
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.
@Roymysterio
@Roymysterio 10 месяцев назад
@@Freddyyyy266 That idea is applicable in all aspects of life. With experienced hands, you generally, get things done more efficiently. Smart people know this already.
@Pambegay
@Pambegay 10 месяцев назад
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?
@Pambegay
@Pambegay 10 месяцев назад
Sure, Hermanw jonas (a Gma!L
@jack-3882
@jack-3882 8 месяцев назад
Classic Bot interaction, very organic
@robjackson30
@robjackson30 2 года назад
Hey, great and informative video. Sorry if this is a stupid question but could you explain the shortfall/your number principle please? (5mins 50 secs). In the example you identify an £11k pa shortfall which, by applying the 4% rule, adds up to a "your number" figure of £275k. What does the £275k represent? Is that the size of the DC pot required at retirement in order for you not to run out of money?
@tommitchell7262
@tommitchell7262 2 года назад
The £275K represents the pension pot you need to provide you with your 4% income shortfall. Four per cent of £275K is £11,000. Your income shortfall could be your entire desired income (i.e., you have no income and you need £11K pa to live on) or just part of your desired income, but - either way - to source that shortfall from a personal pension, you would need a £275K pot. Hope that helps. And, yes, it is the pension pot which is designed to ensure that you do not run out of money (obviously, it's not guaranteed but it's the minimum 'best figure' for you to aim for).
@Perryrburgess
@Perryrburgess 2 года назад
Hi Pete, I'm new to your channel but really enjoying the content and catching up on your posts. May i please ask a question ref money paid into a pension and the actual money claimable on withdrawal? I calculate at lower rate tax level £100 paid in + gov 20%, minus 25% tax free but the rest taxed it comes out at £102 lower rate tax payer or £119 at 40% tax ....is that right??..I've done a good job at confusing myself!!! :0)) many thanks Perry.
@MeaningfulMoney
@MeaningfulMoney 2 года назад
£100 paid in would become £125 (100 is 80% of 125). When you take that out, you would get £31.25 tax free, then the balance of £93.75 would be taxed at 20%, giving you £75net. £31.25 + £75 is £106.25. If you’re a higher rate tax payer, to get £125 in a pension only costs you £75. (75 is 60% of 125). You’ll get £31.25 out tax free and the the £93.75 would be taxed at 40%, leaving you with £56.25. Add this to the £31.25 and you get a total out of £87.50. So if you’re a basic rate tax payer, £100 gets you £106.25 out. If you’re a higher rate tax payer, £75 in gets you £87.50 out. Obviously best scenario is to be a higher rate tax payer going in and a basic rate payer coming out!
@nathanielshaw5460
@nathanielshaw5460 2 года назад
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.
@sid35gb
@sid35gb Год назад
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.
@k14ser
@k14ser Год назад
This man is excellent
@MeaningfulMoney
@MeaningfulMoney Год назад
Cheers John - I appreciate it!
@bigboldbicycle
@bigboldbicycle Год назад
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.
@enigmathegrayman2953
@enigmathegrayman2953 Год назад
After I retire I’ve got my spot picked out where I’ll setup my tent ⛺️ it’ll be next to my tombstone 🪦
@PJBHolden
@PJBHolden 2 года назад
It depends...
@stevesgoogleaccount8387
@stevesgoogleaccount8387 2 года назад
It's money so all of its never enough until something kills off a lot something😟
@christurner3857
@christurner3857 2 года назад
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.
@aldeiceci818
@aldeiceci818 2 года назад
Living abroad with a 3% -rule will be the answer for me..North America is too crazy now..
@AK-ru3sg
@AK-ru3sg 2 месяца назад
Keep still man!!!
@MeaningfulMoney
@MeaningfulMoney 2 месяца назад
Easier said than done!
@misfit2022
@misfit2022 2 года назад
How much for retirement? There are some big numbers quoted in the comments so I will go the opposite 6K per year.
@DafyddMorse
@DafyddMorse 3 года назад
That intro! 🤩
@MeaningfulMoney
@MeaningfulMoney 3 года назад
Glad you like!
@johnrichardson4583
@johnrichardson4583 Год назад
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.
@MeaningfulMoney
@MeaningfulMoney Год назад
Hi John. There’s a page on my website which covers how we might work together: meaningfulmoney.tv/work-with-pete
@davidlester2176
@davidlester2176 Год назад
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 .
@jakemanchester5139
@jakemanchester5139 2 года назад
BE DEBT FREE! Absolute must....
@kryptoniteee
@kryptoniteee 2 года назад
Tell me how. Please.
@davehaggerty3405
@davehaggerty3405 2 года назад
@@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.
@kryptoniteee
@kryptoniteee 2 года назад
@@davehaggerty3405 would you recommend I buy GME?
@davehaggerty3405
@davehaggerty3405 2 года назад
@@kryptoniteee “I never recommend” (Charles Dickens) Just life lessons I have been trying to drum into my kids.
@ben3989
@ben3989 2 года назад
@@kryptoniteee that’s the worst thing you could do. Buy yourself a boring sp500 fund and go from there.
@ShameyBaby
@ShameyBaby Год назад
Hi Pete, just discovered your channel - it’s great! Just trying to work out my own number. As a teacher, I’ll be in receipt of a DB pension. If I take it sooner then the amount per year goes down. Therefore I was thinking of retiring at 60 but not taking the teachers pension until 68. Does that sound like a sensible option? How would that effect the calculation? Many thanks!
@MrDuncl
@MrDuncl Год назад
When a colleague took early retirement he had things worked out regarding when he would take his pension so he wouldn't pay any tax for 3 years.
@joneastelow3242
@joneastelow3242 4 месяца назад
Unless you don't make it to 68, hopefully we all will but I'll be doing more traveling before then, and hopefully not too much power washing pathways around the house. 😂
@shadowz4780
@shadowz4780 2 года назад
Great video. Question. What happens if you calculate your expenses (or desired) is less than the target income?is that still considered a shortfall?
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Hi Shadowz - not 100% sure I understand the question. Are you asking if your expenses are less than your expected income? In which case, no - I wouldn’t call that a shortfall. More like a great result!
@shadowz4780
@shadowz4780 2 года назад
@@MeaningfulMoney exactly what I meant. Thanks for all. Like the videos
@devidepodoUK
@devidepodoUK Год назад
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?
@speedendurance
@speedendurance 2 года назад
Pay yourself first. 3 most important words, ever.
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Couldn’t agree more!
@patrickstarnes2355
@patrickstarnes2355 Месяц назад
Depends on what you need to feel comfortable. Some people feel comfortable without a car.
@aliibrahim1512
@aliibrahim1512 2 года назад
Hi Pete. I will within a year be 66 years of age. I have full pension contributions, over 35 years, and have a private pension pot of around £120.000. House is long paid off, no mortgage, or IOU. I am looking to downsize so I may have £ 100 to £200 thousand left. What would your advice be for my wife and me to live a comfortable life? I want to make the most of spending my savings and not leave it to the government to take what's left if I say pass on within 5 to 10 years.
@juliusevola8806
@juliusevola8806 2 года назад
Did you get your answer? Also, are you White, or a Muslim?
@sid35gb
@sid35gb Год назад
Stop wasting time retire! Go out and live while you still can.
@RobinPhillips
@RobinPhillips 11 месяцев назад
May i ask what glasses you wear ? they seem to get darker and lighter depending on the light, and the frame looks good, thanks.
@MeaningfulMoney
@MeaningfulMoney 11 месяцев назад
They’re by Silhouette. They are photochromic lenses. They’re not cheap but they are super-light and comfortable - worth every penny
@andrewrobinson2565
@andrewrobinson2565 2 года назад
Already got net 1 million (not Turkish lira 🇹🇷) in 8 x bricks and mortar, so we hope that'll be enough.
@tonykelpie
@tonykelpie Год назад
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.
@DrWho-vc2go
@DrWho-vc2go 11 месяцев назад
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.
@MrTaffynoel
@MrTaffynoel Год назад
A few observations on a great vid. Personally I don’t like risk and am happy with having final salary pensions (x2, with my wife). That’s a major unknown sorted for me. Pay off house (aim to never have to sell it, and let that be my gift to my daughter eventually). Secondly, I see that most reviews focus on the individual not the couple. Often throws peoples calculations off a lot. I base things on OUR expense and joint income. I know if circumstances change, I’d have to look at my income and any inheritance and assume my outgoings (alone) are more like 66% than 50% as couples have the benefit of being more economical. Finally, just to note my bug bear. The LISA investment has an OK interest rate then also has the “25%” bonus but that’s a bit misleading. As cash can’t be touched and takes a decade to mature (final input age 50, matures age 60) then at best interest is about 2% per year, compounded towards 25%. It’s not really all that great. I think too much emphasis is placed on this option. It’s better for first time buyers who can save for as short as they want and grab a bonus whenever.
@AlannahGardener
@AlannahGardener Год назад
Stocks and shares lifetime ISAs exist
@BobBob-uv9fq
@BobBob-uv9fq 2 года назад
So glad I joined the raf only 9 yrs but can just about scrape through ,and that’s just fine ,although will probably be doing three days a week ,ah well that’s just fine and dandy lol
@BobBob-uv9fq
@BobBob-uv9fq 2 года назад
Bob bob you’ve now just got a delivery job with ups ,
@cuz129
@cuz129 2 года назад
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.
@MeaningfulMoney
@MeaningfulMoney 2 года назад
That IS generous!
@hamzaghazi7485
@hamzaghazi7485 2 года назад
Do you have idea about German Financial and tax systems, or this Retirement planning tool be used for Germany. I am trying to find good information in English so I can have an idea of retirement and take home money when I stop working. Say I have around 20+ years of work left before retirement so I have time to think about it
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Sorry Hamza, I’m UK-based, and as far as I know, the tool I use here isn’t available in Germany. Look for a Certified Financial Planner (CFP) licensee adviser in your country - they should be able to help
@richardwatts6653
@richardwatts6653 2 года назад
3k a month who on earth spends that , you can never work it out accurately. Just retire and enjoy life
@mrjones29
@mrjones29 2 года назад
Posh people.
@deanoh6414
@deanoh6414 2 года назад
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.
@seancurran8108
@seancurran8108 2 года назад
Try and get away with spending less than that for a 4 person family in London. I don't think so.
@michealardron5195
@michealardron5195 2 года назад
@@seancurran8108 I think the assumption is that you won't be four when you retire. Then move to Yorkshire :)
@pauldavies7251
@pauldavies7251 2 года назад
@@seancurran8108 why would you work out your pension for 4 people!? 🤔
@BobBob-uv9fq
@BobBob-uv9fq 2 года назад
My plans have just radically changed ,new job with ups
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Good luck!
@BobBob-uv9fq
@BobBob-uv9fq 2 года назад
Yes really pleased ,decent wage and hopefully job security ,could be close to last job
@BobBob-uv9fq
@BobBob-uv9fq 2 года назад
Was out today very happy with it ,could definitely see ,and probably this will be my last proper job
@faramog
@faramog 2 года назад
except the 4% 'rule' is more USA biased . Returns UK based make it more like 3.3% .. so multiply by 33
@ianjames3078
@ianjames3078 2 года назад
If you invest in the same funds surely the 4% still applies?
@faramog
@faramog 2 года назад
@@ianjames3078 maybe if you invest in US funds and the exchange rate stays the same
@kevinwilde
@kevinwilde 2 года назад
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
@MeaningfulMoney
@MeaningfulMoney 2 года назад
HI Kevin. You’ll receive your state pension at 66 and no earlier, even though you’ve paid the 35 years NI contributions.
@freedomlife3623
@freedomlife3623 2 года назад
Does your calculator works for Canadian retirement planning?
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Nope, not really. It’s tied to the UK tax system.
@rorycorcoran9339
@rorycorcoran9339 4 месяца назад
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.
@MeaningfulMoney
@MeaningfulMoney 4 месяца назад
Thanks Rory. The 4% rule isn’t a rule, just a rule of thumb. I appreciate the suggestion though - watch this space.
@JOPOV
@JOPOV 3 года назад
I used an S&S LISA to save more my house deposit and since closed the account. Can I open an account with another provider, to save for retirement?
@Beclu86
@Beclu86 3 года назад
Yes. You just won't be able to access it penalty free until age 60.
@martywilliard
@martywilliard 2 года назад
Hey, Pete! Greetings from across the pond. Great video … But , your steering wheel is on the wrong side of your vehicle!
@MeaningfulMoney
@MeaningfulMoney 2 года назад
Hahaha, Marty. Maybe I get that looked at! Thanks for being here…
@martywilliard
@martywilliard 2 года назад
@@MeaningfulMoney HAA HAA HAA! Thanks for your channel. Love RU-vid - it knows no boundary! Glad I found you here
@robertramsey2653
@robertramsey2653 2 года назад
Laugh I nearly did British humor
@youputallprofessorstoshame5755
@youputallprofessorstoshame5755 2 года назад
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.
@vitojosie
@vitojosie 2 года назад
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...!
@robertmccuiston1535
@robertmccuiston1535 2 года назад
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.
@Peakwanderer
@Peakwanderer 3 года назад
After living on under £6K a year for 12 years due to ill health I'll be very happy with just my state pension.
@dettisyo
@dettisyo 3 года назад
agreed ill health affects wealth
@craftypam9992
@craftypam9992 3 года назад
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. ,
@simonch5140
@simonch5140 2 года назад
How can you possibly live on under 6k?
@Peakwanderer
@Peakwanderer 2 года назад
@@simonch5140 Easily, granted not through choice.
@mrjones29
@mrjones29 2 года назад
@@simonch5140 Sometimes life gets in the way and you'll have no choice. I'm on zero income or benefits for almost 2 years now and I'm still here.
@alexandergault757
@alexandergault757 2 года назад
' 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
@MeaningfulMoney
@MeaningfulMoney 2 года назад
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.
@joneastelow3242
@joneastelow3242 4 месяца назад
Yet....One day I believe it will.
@joekeown4169
@joekeown4169 Год назад
Is this calculation from aged 60 or 67? Aged 60 you'd have no access to State Pension and DB pension would be reduced.
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