6:30 I appear to be able to change this and it takes 2 months to take effect. Over past 18months, I have increased from 5% to 40% in a few steps to get to where I’m comfortable.

Only take the 25

A further issues I've found, in the context of these complexities, is that enquiries sent to the 2 organisations with which I have pensions have elicited quite irrelevant "cut and paste" replies. It seems as if the staff, including at one of the UK's biggest private pension providers and the biggest public sector provider, have yet to learn that new rules actually exist, let alone be able to answer more detailed questions about them.

The self employment part of putting in a pension is difficult to understand. If i make £100 and put it into a SIPP. Then i get uplift of £25 in my pension. So i end up with £125. I need to pay the £25 back in tax right?

I put in 37.5%, employer 3%, sounds crap but still Get 100% increase on what my net figure equates to before this is grossed up and the 3% and 6.9% NI (half company save on my contribution) back....

Start today, reap tomorrow. Every small investment is a step towards your mountain of dreams. Keep this in mind as you embark on your investment journey. Every step counts!

No politicians should be able to fiddle with pension terms without some sort of independent panel reviewing and approving changes. If such a body was established it would be very difficult for future govs to bypass it without appearing reckless (think Liz Truss and OBR).

Think there are lot of people in old age not spending their savings, hang onto money and then too old, infirm or sick to enjoy it.

Wish I had been able to use a Lifetime ISA but unfortunately I turned 40 just before they came into existence 😭

I retired at 56 with a DB pension I could live on comfortably and also had a DC pension worth around £380k. I stopped work completely and noticed there is a HMRC rule that allows a person with zero income to pay £2880 into a DC pension and claim £720 tax relief. I looked into this as it seemed too good to be true with HMRC 'donating' 25% per year into my pension. I checked with my pension provider and they said it is within the rules. I cracked on paying in £2880 every year and sure enough HMRC handed me an additional £720 every year....even though I lived overseas I claimed this tax free cash for 5 years after leaving the UK.... but if I lived in the UK I could continue to do this until I was 75. Why doesn't every one do it? It appears to be free money.....what's the catch? PS: I used the tax free lump sum from my DB pension to pay the £2880 into my DC pension, but this contribution per year was well below my normal contribution when I was working so according to the rules did not count as recycling and I can still take out 25% of my DC pension tax free when I start drawing down.

It's our number 1 reason, not to vote for Labour or Liberals. We worked hard saved hard and and we're enjoying our retirement now. If they get in there is always the Algarve.

I am SO glad you made the point that we can think about actually enjoying a few luxuries! I am debt free, and as a lifelong motorbike enthusiast, and am planning on a vintage bike I always dreamed of. They actually can hold value well, and if I buy one that needs work, I can add value while enjoying the ride ;)

hey hey …. is this the british Dave Ramsey ?

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

Isn't this slightly misleading? As others have previously indicated in the comments, there is not necessarily a need to complete a tax return (and the hassle associated with starting that) as the bank will simply report the interest earned to HMRC and if necessary one's tax code will be altered.

Am doing both. Need to overpay as my mtg term straddles into retirement and so aim to overpay (enough) before then. Have done enough but aiming to now double up. Overpay more and invest for retirement where i can withdraw and enjoy my money whilst giving the pension some more growth. All three pensions, investments (mainly ISA) and mortgage debt are my financial square

It's not relevant for 95% of people, so why talk about it?

I make a reasonable salary, drive a small cheap 16 year old banger, shop at Lidl, pound stores and the local market, use a s/h 7 year old mobile , watch freeview - no Sky or Netflix! - don't smoke, drink - rarely go out on the town. Yet after income tax, council tax, utilities, rent etc I feel skint. It's a mystery...🥲

Hi, i get paid paye (40% bracket) and have a side hustle where i got 10k untaxed. If i put this all into a sipp. I still get 20% relief is this right?

Tried to download your cheat-sheet but after you asking for my details only get a sales pitch for something called ConvertKit!

if the idea is to build an income stream to use as complement for retirement, or at any given point if needed, then building a dividend growth portfolio always buying adding to it could be a good and peaceful path. On the long run consistency and perseverance could guaranty the desired income stream goal with little worries

Is there a reason to pay into a pension rather than just put the money into an ISA?

I think keeping skin in the game is very important. Saying that, at times of panic it’s difficult to see this for many

Thanks Pete, really helpful. On the TTFAC issue, what’s the situation if someone took PCLS before 6 April 2024 somewhere between 0% and 25%? How is that deducted from the £268,275? Many thanks

Thanks for a really useful video and the maths really helped. also, I hadn't appreciated the IHT differences. I would like to help my kids get on the property ladder and was planning to withdraw some of my 25% tax free cash from my SIPP, but thinking about it it would be better to use money from my ISA as any growth in the SIPP would also grow the 25% tax free.

Excellent video...have not seen this analysis done before and so helpful! Thanks, liked and subscribed...hope it helps the ego boost! 🙂

Could you update these example now that LTA is abolished,Pls?

The 4 July election now brings this all to a head. Really hard to make (or not make) decisions now that will impact for a lifetime based on such a degree of uncertainty. It would be good if pensions policy, as with interest rate decisions, could be taken further from the direct control of politicians given the short term political influences that tend to apply.

The most important financial thing that is yet to be taught in schools!

Absolutely superb! Well done! Oh! Btw it woldl be hard to blow that much money in Barry Island! 🤣🤣🤣

You waste too much time getting to the point.

Your videos explain pension changes very well, but the whole system is crazy and just gets worse everytime government meddles withe the rules.

Overpaying to 1. Mortgage free at retirement 2 when my low fixed rate ends i can keeo payments to less than 30% of income 3. As above but also get a good rate at remortgaging 4. Lucky to split between Overpaying, extra pension and ISA to spread the load and not rely on one method to have comfortable latter years

I am overpaying to ensure mortgage is paid off before retirement and also while i have a low fixed rate. Once that low fixed rate ends i will not overpay but my future monthly will be at the level i am currently paying. Have an isa as well and pay as much as i can, means i am building up my wealth at a slower rate now in the crucial years but means i will be debt free in retirement with an Isa and a personal pension

People should be allowed to put money away it creates wealth

Thank goodness that this is a problem or issuebof the past! Well, for now!

Very clear video...thanks! The problem with taking an UFPLS is that an income is taken and so, forevermore, the pension holder would be limited to the MPAA reduced annual allowance or possibly the £3,600 pa, rather than the more generous £60,000pa Annual Allowance.

I took advantage of taking out a sipp for my grandchildren , yes they get the tax added to it, so many grandparents could do this, but fail, and don’t forget if the child is stupid with cash they can’t get there hands on it until 58 , so if they haven’t learnt the value of money by then they are lost,

Great video - I'd tried reading the new sections of the Pensions Tax Manual ("zzzzzzz") - this was far easier - thank you. Having taken a DB pension in 2021 but only a small tax-free amount from an associated AVC, still contributing to a DC scheme and with a couple of untouched SIPPs that put me right up to the old LTA, I figured there was benefit in applying for a TTFAC. So I duly contacted my DB provider (who paid the lump sum and is still paying me each month) Their initial response was "as you took your benefits before 6 April 2024, you are not able to be supplied with a Transitional tax-free amount certificate". I queried this and asked for an explanation but all I got back was "as you took benefits prior to 6 April 2024, the new legislation does not apply". That doesn't seem to align with your video - have I misunderstood something here ?

Excellent video and advice

4:25 do platforms allow multiple funds in the drawdown pot and can you say, sell x of fund1 and sell y of fund2 ?

So… It’s not a good idea to pay off a mortgage using tax free cash? I thought it would be a good thing to do - an investment in property.

To be honest, I have never been interested in investing and know nothing of the subject, but these videos are so informative and well explained that I am going to have a go at a Stocks and Shares ISA!

The problem is that the old LTA was just too low a level after repeated cuts to it. People of modest means who have saved into pensions were breaching it. I don't see the case for a LTA at all, sure, cap the maximum tax relief per annum but why should good performance in a person's portfolio be so heavily penalised?

I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Belinda dawn

I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Belinda dawn

So it’s better to put money into an ISA even as a higher tax payer? I’m using salary sacrifice and still assume £1k per month into pension is still very good

Tom, The uncrystallised pot will continue to grow as before...it is simply what is in your pension pot. If you withdraw from the pension pot an UFPLS amount, then you are restricted forevermore to what you can contribute to the remaining pension pot in futire to the MPAA limit. If you need money, but still want the oltion to contribute, then you take the tax free portion of a Flexible Access Drawdown, 25%, and leave the associated 75% in the FAD section.

Great video, annuity for me I think, thanks.