My biggest problem with drawdown is that you can't do it will all pensions, it can only be done with a pension that supports it. Why it's like this I'm not sure. So my worry is that, I'm very happy with my current pension and the rate at which it grows, but it doesn't support drawdown. So I would have transfer my pension elsewhere to be able to use drawdown. That seems like such a risk to me, moving to a financial provider I'm not familiar with and to a pension fund I'm not familiar with. I get the feeling that the providers supporting drawdown aren't giving you the best deal, because they know your investment is likely to decrease over time, with no more contributions coming in and you withdrawing funds. Are there plans to eventually have drawdown available on all pensions? I don't see why not.

Tell HMRC that you paid me so I get taxed but don't actually pay me . Fraud ?Theft?

Tell HMRC that you paid me so I get taxed but don't actually pay me . Fraud ?Theft?

Auto Enrolment will kill of the state pension.

Hi, I am 70 years and not claiming pension yet. I am self employed with 25 years how could I pay valiantly another 5 years and how much I have to pay for please.

So if I needed £30k a year, could I take the £12k tax free annual allowance PLUS the other £18k coming from the 25% tax free pot, so that in my first 5 years of taking my Defined Contributions pension is all tax free? Or am i only allow to take £16760 (of the 2023 illustration you provided on the video?) Reason being is I have a DB pension kicking in after the 5 years & at that point, I don't mind paying more tax (will be still below the 40% bracket)

so when you start doing drawdown, are you able to decide what each part of your pension is invested in? Eg that the crystalised part is invested in a global ETF, the uncrystalised part is in bonds etc etc?

This was helpful thank you

Also need to consider, 4k a month for a period of time in nursing home too

Knowing and reducing fixed costs are key. Geo Arbitrage is the way, smarter not harder😊

Can you confirm at what date this was accurate tax commenting?

As I understand it your calculation at 2:39 with regards to the allowable tax free cash is incorrect. The standard limit for tax free cash is £268,275 which is based on the previous limit of £1,073,100 (i.e. 25 per cent of this) for DC pensions which was removed by Jeremy Hunt in one of his budgets. When you take tax free cash a percentage of this £268,275 allowance is calculated and added to any previous percentage used so that over the lifetime of your pension withdrawals you can take up to £268,275 as tax free cash. Not as you have the calculation based on percentages of the uncrystallised pension.

Another question... I’m about to start using FAD soon. If your over the old LTA which I know has been abolished for the tests parts at crystallisation and age 75 but the max tax free lump sum is still based on it would it make sense to crystallise the maximum amount to lock in the £268k. I’m above the old LTA in fund value currently but heavily invested in shares/ETFs which could fall in value back below the LTA. I don’t plan on taking much out of the pension in drawdown but I can’t see a downside to crystalising it whilst it’s above the old LTA to lock in the £268k tax free benefit. Am I missing something? The only thing I can think of is if the tax free amount became more generous later but I think that’s unlikely in the current climate.

A theoretical scenario: Say i had a limited company that held 10 properties valued at £200,000 each, and they are funded and purchased by me, all through the limited company to begin with. Say the company had 1000 shares issued, and my kids owned between them 999 of those shares, and I owned 1. Upon my death, would the entire company be subject to inheritance tax? Or just the 1 share I own? And another question - if I wrote in my will that upon my death, my 1 share be distributed between all shareholders - Would this one share be exempt from inheritance tax on the rest of my estate and qualify for the business relief, as the company is producing profit and actively functioning, and I purchase the properties say 4 years ago. Thanks in advance.

Would appreciate an update to this video since the governments tax grab Oct 24. Drawdown strategy differences ie. Spend it or give to our chancellor!

Very informative video. However, one thing nobody explains is *how* the tax is deducted. Most videos only focus on how much. For example, is the tax deducted at source? In which case, do the different sources know about each other (this would seem to be necessary). Or, is it the case that you need to submit a personal tax return to ensure the correct amount of tax is paid?

is there any way to stop your pension provider using emergency tax on your first withdraw. I'm wanting to use money to buy my council house .

Alex, could you do a video on IHT and non-married couples please.

Draw down on your pension very early in the tax year, and (if applicable) defer drawing your state pension for a full year so that in the year following your draw down you have no income. This way you will be refunded your personal allowance (£12,500 ?) at the end of the tax year.

Why do the inheritance change matter? You will be dead, and your kids will get over a million. Poor them????

I have A level maths, and love the subject, but I think I will struggle to understand all of this when I retire. Is there any help available, without paying a huge amount to an accountant?

Your room is a touch reverby. Scatter a few cushions or towels around off camera. It will do wonders for your sound.

Great video. So important to look at tax implications on the way out of a SIPP. As a married couple we're lucky enough to rely just on my wage despite my other half being 10 years off state retirement age. This means they can, via UFPLS on their SIPP, take out £16,760 a year for the next decade tax free (or more if a Government wants to do something about tax bands and fiscal drag). This then goes into a S&S ISA and over that time £167K plus any growth has moved from a partially income tax attracting wrapper (SIPP) into one that does not (ISA) meaning more tax free cash to spend when we actually retire. They also benefit from the 'Starting Rate for Savings' with no other income, meaning any cash savings either of us have can go in her name and attract up to £5K interest a year with no tax to pay. The only downside is that this did trigger the MPAA, but since there's no intention to put more than £10K/yr into her SIPP (because of this threshold and recycling rules) then it's sort of irrelevant.

What happens to crystallised funds which grown due to future investment ,do you get 25% of that tax free ?

Labour party in Scotland get rid him yes Matthew Smith he Thatcherite Conservative Thomas. Mrs Margaret Thatcher conservative give a job it appointment is hard to get remove politically in Scotland Motherwell college Lancashire Scotland Britain yes Thomas Labour supporter do he clever did cut string politically yes Thomas. Evidence on LinkedIn.

Hello Alex how much does teacher get when he retired Age 60 Matthew Smith computing Lecturer he born 1964. Would be less or at £13000 he walk home with that. Motherwell college April 2024 yes Labour supporter Motherwell sacked him it on LinkedIn.Pietro Boselli Italian told me that he vote Labour party uk general election July 4. He get £8770. He get lump Thomas. £20000 yes. He not she English teacher Sally no she better person. Is superannuation yes.

Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.

Can you explain what happens with the tax if you do a monthly draw down like a salary

Stupid thumb nail picture. Wtf!

Great video Alex keep up the good work good to see you persevering with the channel :-)

Usual rumours. I'm sick of watching these vlogs trying to predict stuff. Just wait for the real thing on Wednesday.

More tax and enforcement measures of enslavement

Pensioners, if you are wanting to leave anything to your descendants. Take your money out in cash now…then hand it over in brown paper bags.

I can see NI being applied to pension income

Rachel from accounts, God help us.

Great content lad

Spot on simple explanation. No BS 👍

I have an Annuity to bolster my State pension (my beer and lunch money 😊) but have kept a larger amount in my pension pot as a Drawdown. I can always purchase another Annuity later if required.

With an average life expectation of 81 in the UK and a healthy life expectation of 63, why would you plan beyond 85? The example of taking the unsustainable amount from your pension pot is probably the best option. The three M's, Money, Mobility and Marbles is a key factor with money being probably the least restriction in old age? Walking and interaction with others, board games etc that are very low cost options after an enjoyable life lived when you could afford it, now you have only Mobility and your Marbles. Around 1 in 6 people (from 65)will have a stroke in the UK, with a rising probability as you get older, you will probably kiss goodbye to your Mobility if you have a stroke. 1 in 11 (from 65) will show signs of dementia, increasing probability as each year passes, start to goodbye to your Marbles. Never be in a position to regret something you didn't do. ❤

If you move to Oz the pension is frozen, it never goes up

90? I don't know anyone that lived until 90

On the tax payable example where income is £71500 them surely the calculation is: Income - £71500 Personal tax allowance - £12500 Amount on which tax is payable = £59000 20% tax on 1st £50270 = £10054 40% tax on £8730. = £3492 Total tax payable = £13546 7:18

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

I feel if experts can’t beat the market, I have no hope. staying with developed world index is good enough for me.

hello. good vid. im 52, retired and currently paying in 2880 per year to my sipp to maximize the 720 relief. my plan was to do this until im 75, then start drawing on it. However, your vid suggests that i will get taxed on my withdrawals, is this correct? i plan to be using up my 12570 each year in other ways (ie from selling off stocks each year). thank you

What ruined pensions this past 40 years, everyone had a endowment policy , they were loaded with insurance products built in , so u didn't know how little was actually being invested until the provider told u years later it wasn't on plan to clear the mortgage ,They were all at it perhaps legal and general were the worst , That did all investments for me , but the time the government acted it was to late for home owners ,we have still got a mortgage 35 years on , the ordinary Joe has lost faith in financial advisors

Those greedy bastereds in Government, are million airs, they would not take a cut in their money. Free perks, free food free transport free heating, for 2 houses the size, of mansions. Who, is the mugs, who pay for all this, ? We are.

The money, if you check properly, is all, in the Governments pockets, soon as they get in, they must give them selves a rise. Along with all of their free perks, free food, transport, and heating allowance for 2 homes. They won't take a cut, in anything. We are the mugs, who pay, for these bastereds. They are already million airs some of them are billion airs and more. Their greed is simply unbelievable. Think about it people. Ok

£500k pension pot is plenty if you are 98 or older 😄

Did you make any assumptions on a tax free cash lump-sum? Thanks