Why the 5 Years Before Retirement Are So Important (You’re closer than you think!)

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Retirement could be closer than you think. It all hinges on those final few years before retirement and making the most of the tools you have available.
Salary Sacrifice Calculator
www.moneybeans.co.uk/personal...
Financial Planning
I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about our services, please follow this link: go.novawm.com/getintouch
DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice. Any opinions or assessments expressed are James’ own opinions or assessments, which are not affiliated with any third party. Any representations stated as facts or views based on such facts are relevant to circumstances applicable at the time of publication. This information should never be relied solely upon to make decisions, and James accepts no liability for any investment actions undertaken by viewers. Please seek regulated financial advice or an advisor if you require assistance. The value of an investment and the income from it can go down as well as up and investors may not get back the amount invested.
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Copyright © James Shackell 2023. All rights reserved.
The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it.

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27 авг 2023

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Комментарии : 430

@petermorris3665 9 месяцев назад

At 56 years old and still working full-time this was just the video I needed.

@SlowCarToChina 9 месяцев назад

Same 👍

@stuwhite2337 8 месяцев назад

check your investments. They won't have grown much, if at all in the past 2 years if you exclude additional contributions

@michaellewin9339 8 месяцев назад

@@stuwhite2337yep my overall pension investment has dropped in the last 2 years by around 8%. I’m 56 and was hoping to finish by 58. If this trend continues then this will be unlikely.

@alrightdave6135 7 месяцев назад

@@stuwhite2337no shit Sherlock

@stuwhite2337 7 месяцев назад

@@alrightdave6135 the point is your cash would have

@rls5907 4 месяца назад

Einstein once said: “half the quotes that are attributed to me online are false”

@sallyannemcintyre9801 Месяц назад

Love it

@Khaiphos 17 дней назад

😂😂😂

@spartacusptolemaida 8 месяцев назад

James you've no idea how much I appreciate your videos. I've learned more from your channel in 2 years than 15 years of school studying. God bless you and your family.

@matthewashton1975 9 месяцев назад

I really enjoy your videos James, you’re very entertaining, knowledgable and easy to watch.

@StuartBramall-eg1hu 9 месяцев назад

Very good video, I’m 53 and started watching your vids last year. I have always put a good proportion of my salary into the pension but have received some shocking returns over the past 20 years

@1707Android 2 месяца назад

Thanks James. The scenario you gave is very similar to my own. This has been food for thought indeed.

@keithbrown339 9 месяцев назад

100 % this sort of worked me the at one point putting 70% of my earnings into my pension. Just a side point my boss was not trust worthy in any shape of form and did not make my pension contributions for 3 plus mouths before folding the company yes it is being claimed back but in my experience you can not trust smaller companies to make payments to your pension on time even though they are quick with the deductions. Best to check your pension contributions very carefully. Keep up the good work James.

@andrewowens4124 7 месяцев назад

You know your stuff mate! Advice that will help the everyday working man. Well done!👍

@beantonking758 9 месяцев назад

Really useful! Would be great to see how the process of using the money works and any possible pitfalls 😊

@jocar-1735 6 месяцев назад

This is a very relevant video with essential information for those near to retirement to turbo charge their pension and give themselves the best possible retirement pot and it is free advice ! It does however depend on individual financial circumstances, but if you can afford to do so and have a DC pension with salary sacrifice then try and ramp up your pension contributions especially if you are a higher rate taxpayer. In addition, move any monies from taxable savings or investments into a SIPP if you are very close to or over the age in which you can take your SIPP. Fortunately, i was given the above ideas when in my late 40's by a very knowledgeable work colleague who was at retirement age. Thanks to him, I retired at age 55.

@RobS-ef5bn 9 месяцев назад

Encouraging video James. I’m early 50s and feeling behind just as you’ve described. Thanks for showing there is a way to succeed over the next years. Encouraging!

@JamesShack 9 месяцев назад

That’s good to hear! To be honest, I was watching this back getting motivated myself! It’s nice to have a short term target like that to aim for.

@joso7228 9 месяцев назад

Behind?! I haven't even started yet....

@grzegorzjones2629 2 месяца назад

@@JamesShack Many thanks for this video James. I found it amazing that we actually came up with a similar tactic. You in your video, and me guy in his 40s who likes investing and eagerly takes control of his own finances. James a quick question for you. As I mentioned my strategy is slightly different so I wanted to ask you what do you think of the following tactic. Instead of waiting until someone is in his 50s, I suggest person should be putting as much as possible into ISA. Preferably into dividend paying stocks and ETFs. The idea being: build a second stream on income so by the time you are in your 50s you can salary sacrifice max of your employment income, which in practice means leaving you with a salary at the level of National Min Wage/National Living Wage and everything above that threshold gets directed into pension. This means you can effectively pay very little tax and NI conts whilst the rest gets accumulated in your DC pot (assuming that you are a member of DC pension scheme). It should be possible to do if you have a second income from your ISA (dividend payments) that are tax free too... Obviously by the time you can start doing it, you need to have your mortgage fully paid off and your monthly expenses kept on a short leash. What do you think James ?

@kenmcconnell4148 3 месяца назад

Omg its so complicated & over optimistic but great videos thanks i wish i could get my head around it as well as you have

@barrypotter6437 9 месяцев назад

Congratulations on 100k subscribers. Well deserved 👍🏻

@DavidAinsworth37 7 месяцев назад

Once again essential and useful advise, thank you for sharing this information.

@creators1000 9 месяцев назад

Great video James. Even better when the graph starts at my age... compounding FTW

@peterrogers3085 9 месяцев назад

Great advice, already at 22% AVC and hoping to up it to 31% next year, there is one thing you missed, you can use any future wage rises to increase your AVC each year you get a pay rise.

@liamcleal2804 9 месяцев назад

Congratulations 🎉 100k never miss a video, very informative keep it up mate 👏🏻

@chrispc71 9 месяцев назад

Very helpful thanks. I'm early 50s and this has given me a bit more optimism following what's happened in 2022.

@alexm7310 8 месяцев назад

Excellent advice. Thank you 😊

@Dr.JubairsFinance 9 месяцев назад

Congratulations on 100K! Very well deserved

@LivingYourBestLife2023 6 месяцев назад

Thanks James for another great video.

@lovingmywatch5988 7 месяцев назад

Hi James , your are an excellent dynamic presenter who has a real impact.. Keep up the great work...😊

@JamesShack 7 месяцев назад

Thank you! Will do!

@johnjones6890 9 месяцев назад

I love watching your videos, as they are greatly comforting to me and good for my mental health when I stay to stress about these issues. Thank you

@JamesShack 9 месяцев назад

I’m glad they help!

@dedge12858 2 месяца назад

Well that was extremely helpful and thought provoking. I hadn't appreciated the extra saving of NI contributions that salary sacrifice provides.

@Salakazam 9 месяцев назад

great vid, thank you, maybe a second vid on how to boost the pension on the last years before retirement (though to a lesser degree I presume, ha) when paying off of the mortgage is not in the near future (lets say beyond retirement age, 65+)?

@user-ph4lm8zw7n 7 месяцев назад

Great video and advice thanks!

@markfogel3682 9 месяцев назад

Thanks for another great video James!

@JamesShack 9 месяцев назад

My pleasure!

@bandolero5068 9 месяцев назад

Great video, James.

@neilshirley 9 месяцев назад

Fantastic video, thank you.

@jonathanmcstay9082 2 месяца назад

There’s a lot of basic ideas that people don’t seem to be aware of. I’m 51 now taking it easier than ever based on this sort of investment plan. The ISA > pension I hadn’t thought of though - thanks

@NicholasEJones 7 месяцев назад

First vlog that make sense, thank you 🎉

@marissakeynes2532 2 месяца назад

First?! 😂

@wannabemusician7849 9 месяцев назад

I’m disillusioned ( and affected by) by the whole financial system… pension transfer values halved, share of funds drying up , the property rental ( retirement plan ) model obliterated and sooooooo heavily taxed at every turn…. At this point I admire the individuals that spend as they go .. as soon as everyone puts their cash into banks for the safe attractive 5% returns then the government will tax that as well .. Sorry for grumping… thanks for doing your uploads.. they are helpful and informative

@ChrisBird1 Месяц назад

We can still have a rental property ,especially with no mortgage they do OK , Tax free ISA allowance is £20k per annum ,so smash the limit of this for 10 years and you've got £200k tax free to draw off (PLUS INTEREST ),Put a few quid into a private pension to get the 20% allowance..Add a 2 bed Rental paying £700 a month AND a state pension @67 ,small private pension and £200k Tax free Stocks and shares ISA to draw off .. Boom ,Not so bad ? thats a nice Tax free passive income of over £2000 a month . Thats how I see it anyway .

@guyr7351 9 месяцев назад

Well I was on plan for this with a company allowing salary sacrifice and diverting bonus into my pension. Sadly redundancy and a newer job at a lower salary scuppered this. Also a mortgage going 8 years beyond pension age but overpayments also being made on that. Ultimately have re worked mortgage saving money which also has been saved so aiming to retire early next April

@xz9904 9 месяцев назад

Great video as always.

@finlaymacrae 7 месяцев назад

Worth also mention the carry forward rule which if they are downsizing or have savings on retirement can net a quick boost.

@MikesGlitch 9 месяцев назад

Another excellent video 🙌

@bunnobear 2 месяца назад

Great video, lots of very interesting information. We are heading to retirement and cannot wait, I am in the process of saving to retire early. Thankfully my English father knew the benefit of super and my husband and I have paid into super since we were 18, ie 35 years. Small amounts over the long term have meant we have never had to push lots of money into super/pension. Sadly in Australia we cannot access money tax free until 60.

@reshlanda1964 Месяц назад

This is a great educational vid.

@UbiquitousBooks 9 месяцев назад

I think the weird economic circumstances of the last 15 years are changing the life journey for a lot of people. Instead of the 50s being a time when they are free of mortgages and kids, many "millennials" have found that they were saving for a house until middle age and, consequently, didn't have kids until their late 30s or early 40s. So the late-career time of high saving potential is truncated. But, on the other hand, if they made the right sacrifices, they had a chance to build up some savings in the their 20s/30s (while their parents were busy with kids and houses). Thanks to the miracle of compounding, modest savings from those early years can pay-off big time while they are busy spending middle age on child-rearing. At least, that's how I'm hoping things work out! This could also be a reason why it's more important than ever to start saving early and consistently, even if only modestly.

@Vacheron7 Месяц назад

Great video. I worship my Salary Sacrifice pension :). I noticed @9:34 you mention John turning £50K of ISAs into £62,500 by paying the ISAs funds into his pension which would add the basic tax relief, but if John were to instead sacrifice £1000 of his take home pay each month and supplement his living costs using £1000 from his ISAs, he could empty out his £50K ISA in just over 4 years, but contribute a total of £78,600 (an extra £16,100) to his pension via his salary due to the additional NI and 50% employer NI that would be added each month (providing he earns enough over the basic rate to cover this).

@user-ev8bb1fp4e 8 месяцев назад

I presume you mean ‘paying off your mortgage’ (not pension) - otherwise I thought this very good - you’re right financial literacy is so important

@peterring1979 6 месяцев назад

Great sentiment and message with this video. Just need to be aware of dratted inflation and pension/advice charges which spoil the maths a bit. 7% pa after charges and inflation feels a bit of a racy assumption for a balanced portfolio.

@Bobby-sm3tz 6 месяцев назад

good video. You also need to think about risk: if the stock market tanks during that last 5 years it could also lose money compoundly

@geztinsdale 9 месяцев назад

Great advice BUT don't forget the annual pension allowance and also the maximum 25% you can take at retirement without paying back the tax you saved...

@stilettoheelslover 8 месяцев назад

Could you perhaps please do a video on the most tax-efficient way to retire using an *annuity* vs the tax-free lump sum combo? It's just that in recent years, annuities have suddenly become much better value than they were, and so are becoming much more attractive to the risk-averse amongst us......?

@stewartmclean625 5 месяцев назад

Your good mr shack thanks mate 👍

@kimmykero2421 9 месяцев назад

Great video! Your examples/illustrations make it easily understandable and appreciated by the most. Thank you.

@stevegeek 9 месяцев назад

I’m lucky enough to get a reasonable bonus each year (nearly £20k) and for the last 5 years I’ve had this paid into my pension as salary sacrifice. This has made a big difference to my pension pot (almost x2) and saved losing a big chunk of my bonus in tax. I wish I’d done this many years ago.

@JamesShack 9 месяцев назад

It really adds up!

@NoNonsenseJohnson 9 месяцев назад

You will be laughing during retirement mate. Good luck 👊🏽

@owensmith7530 9 месяцев назад

I've done the same with my bonuses and share options, my pension funds have really taken off.

@stevegeek 9 месяцев назад

@@owensmith7530 Nice. Shame I only started doing this when I turned 50! When I was younger the idea never crossed my mind, but then retirement seemed far away 😉…time flies!

@Yetifur003658 4 месяца назад

Does your employer allow you to pay your bonus directly into your pension? Wish I had that option. I could take the bonus and increase my monthly pension contributions, I suppose. Just takes a little bit more discipline...

@Castlebravo100 6 месяцев назад

The question I would ask is where is the money coming from? Wealth has to be created through time and skill in creating things or providing services. Some risk is also involved. If you aren't putting in time or skill or taking a risk the only explanation is you are acquiring wealth from other people losing wealth. I am close to retirement and some years ago I set an amount of money I would require to live comfortably on once I stopped working. It's not a vast amount, but I will live as comfortably in retirement as I did when I was working.

@alloyrocker 9 месяцев назад

Interesting...didn't know there was an option to salary sacrifice into a personal pension. Always thought it would have to only be the workplace pension!

@seannash6384 9 месяцев назад

James I love your explanations in these videos. Hoping you can do a video explaining types of high to low risk funds and markets.

@carlkeeling 8 месяцев назад

Love this one James, thanks 😂

@sofia_bows 6 месяцев назад

Hi James another great piece of content. How could I directly speak with you or your team to discuss my retirement plans?

@pataleno 9 месяцев назад

Great video James. I can relate to this. I’m 54 and only a few years ago didn’t have a lot invested. Now I’m up to around 500K and hope to have 1 million at around 63 which is when I plan to retire. At the moment I have a well paid stress free 9-5 job home every night and weekend so will stick this out until it’s time for me to call it a day maximising my isa and pension as much as possible. Even a few hundred in a pension goes a long way.

@kaxar6954 7 месяцев назад

Don't know you managed that. Care to share assuming if you had nothing invested at 50, how are you now up to £500?

@pataleno 7 месяцев назад

@@kaxar6954 yeah I pretty much max'd out my ISA and Pension. This yeah I've paid 60k into pension and ISA from my salary. I have cut back on spending for the next 5 years. It's doable.

@jra55417 4 месяца назад

@@kaxar6954”didn’t have a lot invested” isn’t nothing. Maybe he had 200k and felt it wasn’t that much at his age

@marissakeynes2532 2 месяца назад

@@kaxar6954 Maybe had another source of income say from rental property and had paid all the salary into their pension.

@marissakeynes2532 2 месяца назад

@@kaxar6954By doing that they can reduce their self assessment tax bill by using their personal tax allowance.

@luiscunha6657 2 месяца назад

Your videos are precious

@jonnyboy4340 9 месяцев назад

Another great video..

@tomwestcott4036 9 месяцев назад

hi james, please can you make a video discussing the pros and cons of defined benefit pensions? as a public sector worker the majority of my pension is in DB schemes id love to know what i should be doing along side my workplace pension to make the most of my income in retirement keep up the good work!

@geztinsdale 9 месяцев назад

Im in a DB but top up each month with AVC's - check if your employer offers this through salary sacrifice but just make sure your total AVC pot plus any lump sum you want to take isn't more than 25% of your pension or you will have to pay tax when taking it out when you retire. Also note the annual allowance currently £60k a year, above this and again you will have to pay tax back

@davem.4003 9 месяцев назад

I think you should be able to transfer AVCs into a SIPP and then you would be allowed to take 25% of the SIPP value, as well as 25% of the DB value, tax free. If your AVC value is less than, or equal to, 25% of the combined pension pot (AVC + main DB pension), then you may be permitted to take the AVCs as the tax-free lump sum, leaving most, if not all, of your DB pension to be taken as an annuity. Even if your AVCs are greater than 25%, if you are allowed to use them to fund the tax-free lump sum, then you may be allowed to make a partial transfer-out of part of the AVCs, as mentioned previously, to have this work to your advantage. It sounds as though you need to do some investigation, or pay an IFA to investigate and to provide advice. Edit: if you transfer-out part of your AVC or before taking the 25%, then the combined value of your DB+AVC is reduced, which reduces the 25% value. The maths could become more complex, so advice would definitely be required for this scenario.

@pistopitpit 5 месяцев назад

Great tips in this video. Thanks James. When I saw the title of this video I thought you will speak about protecting from sequence of returns risk.

@jontuckett2391 9 месяцев назад

Informative as usual but have you overlooked the impact of salary sacrifice on life insurance cover amount?

@JamesShack 9 месяцев назад

Generally it’s not affected, nor are other salary based benefits but always worth checking.

@user-vg2ul1zc3k 9 месяцев назад

Very interesting video but only if you are not tapered which is likely to happen at the end of a career… is ISA saving the only option then?

@arthurworld9768 7 месяцев назад

The average retiree, I believe, should have been able to have enough to last the rest of his days. I t just depends on choices during your working days, just as I came to realize later. Surprising how I still netted more $2m. by retirement. And this is while living in New York!

@roberttaylor662 7 месяцев назад

New York is sure as hell an expensive place to live in. Were you affiliated to Wall Street? Because how could you net such a huge amount?

@VanPelt54u7fcyde57 7 месяцев назад

Not at all. I have just had a good savings habit from early in life. So when a friend introduced me to investing, I was intrigued. And this was just about four years before retirement, and I had only 480k to my name.

@rebeccaartgallary 7 месяцев назад

Do you mind sharing info on the adviser who assisted you? I'm 40 now and would love to grow my stocks investment portfolio and plan my retirement..

@VanPelt54u7fcyde57 7 месяцев назад

My financial advisor is "Pamela Helynn Kirchoff" she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversification and is considered an expert in the field, I recommend researching his credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

@rebeccaartgallary 7 месяцев назад

Thanks for this amazing tips, I found her webpage and booked a call session with her, she seems proficient.

@MasterCamus 9 месяцев назад

Man, I wish there was a financial advisor like you here in Australia

@colinshurey976 9 месяцев назад

I agree I havnt found one i click with They all want to just sell insurance

@ploppy193 9 месяцев назад

Best video yet.

@TheOmniscientOne 9 месяцев назад

I embarked upon this very policy back in 2011 thinking pensions were a good idea, but unfortunately it was with Scottish Windows, a hopelessly inept company. I didn't check it frequently enough thinking their balanced fund would be satisfactory. It is actually worth £80,398 less today than what I've paid in. I'm supposed to be retiring next year.

@crispyduck1706 9 месяцев назад

I’ll tell you what I consolidated a lot of my pensions and some have had for thirty years - they have no where near grown at 7% a year - the pension industry has only looked after itself for all theses years and have charged their customers all the profits

@scottgibson4735 9 месяцев назад

Hi James, brilliant video and like many comments already made, it's just in time for me. One question I have is you seem to jump from in the explanation about John between his personal pension and a reference to workplace-based pensions, you say: "7.31 instead ask his employer to sacrifice 7:34 his salary directly into his pension 7:36 before he receives it". Could you tell me if you're referring to his personal pension? You go on to say. "only possible if your employer uses a 7:59 salary sacrifice pension, but this is the 8:01 most common type of pension"............ Now, we appear to be referring to a workplace-based pension, not his personal pension...... I hope you are okay with me asking about this. I am hoping any additional clarity helps me and others! I really appreciate any help you can provide.

@daveharruk 9 месяцев назад

Salary sacrifice simply refers to the method used by your employer to make deductions from your pay to the pension scheme and can apply to either a personal pension or a workplace pension. In my experience larger employers more often support salary sacrifice than not. Unfortunately though I don't think it is very common for employers to allow the use of salary sacrifice with a pension scheme of your choice such as a SIPP.

@HowardAbraham 6 месяцев назад

I’d like to sign up for that 1p plan.

@LiamHamilton. 9 месяцев назад

Are you able to make a video on mortgages and amortization? With the equity not being paid off much in the early years, how does this work when looking to remortgage or sell for a new house? Is the fact you've been paying off mostly interest taken into consideration on the new mortgage as it seems that there's not much chance to ever actually build up equity?

@michaeloconnell9024 4 месяца назад

Brilliant financial mind.

@fitnasmeansresults1437 9 месяцев назад

I am self employed and 62. Have private pension but not sure if it's better to shop around as had taken my 20 percent last year.. and now in a retirement pension.

@blakehouse9911 6 месяцев назад

Hi James, can you please do a video which demonstrates the benefits of pensions. I know there’s tax relief going in, but you pay tax when you draw the money. So I get that there is tax relief on the growth, but I’d love to see what this means in terms of cash at the end. Are pensions really worth it?

@TomsPersonalFinance 9 месяцев назад

It really is amazing to see how quickly it can double. Great video, similar but different to all those "importance of the first $100,000" videos. You certainly are much more imformative!

@richardshaw4336 9 месяцев назад

Interesting video as always James. Let's hope the next few years are "less bumpy" and the luxury of 10% returns are back. 😊

@JamesShack 9 месяцев назад

🤞🏻

@minimad8793 9 месяцев назад

Thanks James for the stats. I still have a few years before the magic 55 mark and on course to be mortgage free before this. So would you say throw more into the pension vs the ISA? or carry on as I am doing splitting, the deposits equally but use some of the ISA to clear the mortgage earlier?. I will watch your next video shortly so may shed some light. Thanks again.

@hadphild 8 месяцев назад

The quicker you can do what he say in the video the better.

@DKNW62 9 месяцев назад

Great video James but 2 things: if you can manage this exponential growth...its harder to walk away from this, from putting 20k into pension then just stopping is psychologically a challange, secondly review your attitude to risk, and investments, if you managed to reach the LTA, the short term bouncy road can also be psychologically challenging. I Think you have covered these issues in other vids .

@imonlyonesam 9 месяцев назад

The LTA is gone now

@MartinHopkinson 9 месяцев назад

@@imonlyonesamNot quite. Only the charge has gone. The LTA itself isn’t abolished until 6 Apr 24. It’s an important difference, in my opinion, and it’s why I’m not crystallising my funds in excess of LTA until Apr 24. If I do it now, the charge will be worked out but not levied by HMRC…… under this government. But what if another government not only re-instates LTA but also tells HMRC to review all previous, uncollected, charges against individuals and says that they now want to collect?

@Jeffybonbon 9 месяцев назад

I am 65 this year and I will max out my pension as much as i can for the next 10 years i am a higher rate tax payer becuse of BTL income and i have 12k a year self employed earings and i own a SPV when i do get my state pension i am putting every penny into my pension rather then pay 40% tax I am lucky pensions for me are not for my pension they are just a great place to park tax with the tax mans help and are fantastic for IHT planning you should do a topic on this i am sure i am not alone with frozen tax allowances

@mapryan 7 месяцев назад

A company I used to work at until recently refused to pass on any NI savings at all. Very annoying

@ChrisShawUK 9 месяцев назад

I can attest to this in practice. I stopped work in 2019 and it really was those last 5-6 years that pushed me over the line. I maxed out my pension contributions at 40k for me and 20k for my wife. Using a combination of earnings and previous cash savings. COVID then slashed my fund by 35% and now we have rampant inflation. However, the secret is, you don't need to withdraw all your money at once. I keep a cash buffer of three years to smooth out the volatility

@Jamiebmurray 6 месяцев назад

James would some of that be cash to allow for a dip in the market? So put the last few years in cash inside pension?

@kite9039 8 месяцев назад

only thing is in 1975 you could have purchased a large house for £10,000 not many had that much money sitting around

@Fataxman 9 месяцев назад

Salary sacrifice pensions really is the most effective and efficient way to operate a company scheme. As a qualified tax advisor I am always surprised how many employers who could benefit still fail to utilise it. Get your employer to speak to their accountant if they are not using it

@karmanline2005 8 месяцев назад

Good guidance but (a) predicated on clearing mortgage while working and (b) seeing fund growth: uk fund growth has been ~0 for 3 years.😢

@marissakeynes2532 2 месяца назад

U can change funds if urs is underperforming. Part of my pension was in UK equity and wasn't making money then I switched it to a global equity fund which was galloping.

@MrKlawUK 4 месяца назад

this is a really eye opening and inspiring video - thank you! I have three years to close out the mortgage and then plan to push heavily onto the pension using salary sacrifice as you say. My wife only has a small auto-enroll pension but does have a small ISA building up alongside. I'll look at her using that into her pension to get the tax benefit back too.

@lawrencer8673 2 месяца назад

James one thing I would like you to address is the phasing out of national insurance & thereby increasing of the income tax that would result. The end result is that Pensioners will be paying more income tax. At the moment Pensioners are taxed on income tax & not national insurance, my question would be would ISA now be a better investment than a pension?

@savcosta3403 3 месяца назад

Fascinating stuff. Would it be worth extending term of mortgage to fund that extra £1100 a month. Can't get interest only mortgage

@shugsbug 7 месяцев назад

My pension provider changed the investment type as I'm approaching state pension age in a few years time. Unfortunately due to Liz Truss financial issue in the UK, my pension pot lost a heck of a lot of money. This is scary as I now have a lot less than I had 3 year ago, even though I had put extra in over the past 4 years via my work pension

@geofff6544 7 месяцев назад

same here! Financial advisers always talk about pensions going up every year usually 5 or 7%. They have a vested interest in people paying into these investments but like you my private pension has lost around 20% in the last few years. I now channel all my spare cash into my isa and buy high dividend shares and funds. That way you always have a rising stream of tax free income regardless of how the market performs

@steveradstock 8 месяцев назад

What about if you have a Defined Benefits pension? I would love to put it all in a DC scheme now, but the company pension is making it harder to do. I am about 9 years from when I retire.

@fly1ngf1sh 9 месяцев назад

Great video, thanks James! If someone has used up their annual pension and ISA allowances (and carry over), and comes into a sum of money, is it still worth paying more into a pension, or are there better ways to save it for retirement?

@marissakeynes2532 2 месяца назад

If u've already used up ur annual pension allowance then u cannot pay more into it.

@fly1ngf1sh 2 месяца назад

You can, but you don’t get any tax relief on it

@joytid1 5 месяцев назад

Hi, I’m unsure on who to go to if I wanted to invest in compound interest- investment… can you help?

@seismic6402 4 месяца назад

Regards the salary sacrifice, I think you still need to be paying tax on at least the minimum wage for the hours you work after the salary sacrifice is deducted. That could come into play for a lower earner. If you are hourly paid it can mean that the same percentage contribution could qualify for salary sacrifice one month and not the next. With my employer it is an all or nothing scenario where if you select too high a percentage, the whole contribution gets hit with NI. There is a more extended explanation and if anyone is interested, I will post. I opt to contribute the maximum possible under salary sacrifice to my employer pension (changing the percentage in appropriate months) and put anything else I want to put away in a SIPP.

@bikeman123 7 месяцев назад

3:26 The example assumes that you have £10k to invest. BUT we are encouraged to smooth out the market by investing smaller amounts regularly, say £1000 per month. The effect of this is to maximise fees and yield much poorer returns.

@mangalsingh4036 8 месяцев назад

Great Video James. I didnt realise that you could move your ISA money into your SIPP. I was always under the impression, you could only put your earned income from your salary into a SIPP. Im due to get my frozen DB pension at 55, so can i put some of that monthly income from my DB into my SIPP aswell to boost my SIPP further. I'll still be working part time elsewhere, so wont need to use my full income from the DB.

@mikerodent3164 8 месяцев назад

If you put all ISA money into a pension pot... are you aware of the irksome and horrible fiscal reality that PENSION INCOME IS TAXABLE? So that is a way to turn tax-free money into taxable money (unless when retired you will be living on under £12k per year, including the State pension).

@doriangray6985 8 месяцев назад

@@mikerodent3164would have been good if James had replied to you.

@mjack8033 7 месяцев назад

I’m 53 and can access my pension at 55. If I want to invest for 3 years and draw down the cash in 3 years time would an ISA or pension be more efficient.

@markbennion8151 9 месяцев назад

Hi James. I invested a small amount into bitcoin a few years ago. It had grown quite nicely but not enough to retire from. Do you have any advice as to how I could roll that over into a pension at in getting near to that landmark. Cheers

@malvanlondon8683 9 месяцев назад

Great video. Thanks. Is there any point in a self-employed person (say aged 62) with no prior company or private pensions starting a SIPP?

@philipjamesparsons 9 месяцев назад

There are tax benefits, with 25% of the pot being tax free. You could immediately access, the pension should you need to, a year or two down the line. So, do chase this up.

@davidhouston7721 9 месяцев назад

Great video once again James.

@davidf6326 2 месяца назад

Isn't you advice on moving ISAs into pension overlooking the fact that 75% (based on current situation) will be taxed at 20% when John comes to withdraw?

@dj0men666 4 месяца назад

Why move money out of an isa that could be in stocks and shares to then have to potentially give 20% back to the taxman when you pull it down? I use pensions to lower the gross income and taxband and nothing else. Rest is in isa where i can access with no tax. Thoughts?

@stephaniesherwin4281 2 месяца назад

Hi I currently have an offset mortgage that is fully offset so I am paying no interest. Would it be better to pay the mortgage off and put that monthly money into my pension?