Avoiding Costly Mistakes In Retirement

[@chrisbeach44]

Pete, you’re a legend. I would love you to look at my situation and put me wise.

[@MeaningfulMoney]

Hey Chris. To do that we’d have to be in a regulated environment. meaningfulmoney.tv/work-with-pete is the place to start… Thank you for your kind words 🙏🏻

[@aproducerslife9322]

Very true about making money a God. It can definitely affect mental health by creating unhelpful stress and fear which is no good for a week balanced life. Thank you for raising that point.

[@andysmith8353]

Thanks for the fantastic information Was going to take the 25% tax free lump sum but after seeing this and the fact you can withdraw 16.666.00 it’s staying put Cheers 👍

[@gusdogbrownlab435]

Great stuff. I will be watching more of your content in the future.

[@aproducerslife9322]

Don't worry Pete you are looking well and we didn't even notice.

[@stuartskipsey1122]

Really impressed with your channel, very helpful and informative, and we'll presented

[@MeaningfulMoney]

Very kind, Stuart, thank you!

[@ben200b]

Great advice.....Thanks

[@henryalex1597]

You say it as it is brill I am starting to obsess so reining myself in 😂

[@MeaningfulMoney]

That’s the way, Henry! 👍🏻

[@Brian-sr7ww]

Hi, great video. One question, do you 'crystallise' your pension with drawdown...c i.e 16.6k taking that 25% tax free...or do you only crystallise if you take the lump sum? I am thinking of adding an inheritance in the future into my pension.

[@shaungregory1789]

We just retired on drawdown. So gave my tax allowance to my wife, so 25k pa tax free. Plus another 25k pa tax free from the 25% and just researching the extra 5k tax allowance from savings interest ? Any help on this please ?

[@FreeyourFinance]

Really interesting video Pete, viewing this as a 30-year-old of course I am a little way off, but it's still a great watch regardless!

[@MeaningfulMoney]

Thank you! It’s good to be aware of these things ahead of time!

[@eezy251able]

I've been toying around whether to match my work pension or invest more into my vanguard index fund? After doing the math the amount of tax I'd end up paying from my pension is insane? What's your thoughts on this, or have you already done a video regarding topping up ISA or Pension?

[@MeaningfulMoney]

Have you considered how much tax you save by paying into a pension due to tax relief? Can’t have one without the other.

[@eezy251able]

@@MeaningfulMoney Well, I calculated it on my pension providers website. I guess the tax relief was reinvested back into my pension for the total amount?

[@PeteMatthew]

@@eezy251able Exactly, so we need to ensure that we calculate the massive benefit of tax relief going in, versus tax being paid on the way out. Pensions are very flexible these days too. One-quarter of your accumulated fund can be taken tax-free, and you can then decide how much to take from your pension pot each year to maximise the tax-efficiency. And finally, there are significant inheritance tax benefits of pensions, so it's vital to take a rounded view of things. The best approach, of course, is to save into both pensions and ISAs so you have multiple approaches available for your retirement income needs.

[@nigelwilliamson5714]

When talking about tax free cash you said that if you have no other income you could take £16,666 per year, using your basic allowance (£12,500) and then you tax free cash. Is the additional amount over the basic allowance just a random example, or is there some specific reason you mentioned £16,666? Thanks in advance

[@MeaningfulMoney]

There’s always a reason, Nigel ;-). If you take the 25% tax-free cash off £16,666, you’re left with £12,500 which is taxable, except it all falls with in your personal allowance, so you pay no tax (assuming you have no other income). Hope that clarifies!

[@nigelwilliamson5714]

MeaningfulMoney Thanks, obvious when you know!

[@chrisc9406]

Is there a name for this type of pension drawdown where an annual amount is withdrawn comprising a 25% tax free element as in this example of £16,666? Also, can a non earner make further contributions of £3,600 gross to a pension once drawdown commenced? (Effectively recycling!). My understanding is up to max £4,000 gross contribution limit for earners and £3,600 gross for the retired unemployed ! Many thanks, Chris