How much money do you need to retire early? | Do More With Your Money

Today our expert panel talk through everything you need to know to navigate the ever-changing Pension landscape and what you can do take control of your finances and retire early.
00:00 - 00:52 - Introductions
00:52 -04:54 - What’s the latest with the State Pension?
04:54 - 07:14 - How we help our investors with their Pensions.
07:14 - 08:34 - How could National Insurance abolishment affect Pensions?
08:34 - 10:38 - The Pension Triple Lock.
10:38 - 11:30 - Using technology to get ahead of your retirement goals.
11:30 - 15:40. - How can you take control of your money?
15:40 - 19:57 - What can you do to retire early and why?
19:57 - 23:05 Can you get to a million-pound Pension pot?
23:05 - 24:35 Understanding attitude to risk and your Pensions
24:35 - 29:16 Tracking your goals
29:16 - 31:33 Our top 3 tips to retire earlier.
31:33 - 33:24 Expert round-up
With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest.
ISA and Pension eligibility criteria apply and tax rules can change at any time.
This material is not a personal recommendation or financial advice and the investments referred to may not be suitable for all investors. Opinions, interpretations and conclusions represent the views of True Potential at the date of publication and are subject to change.
Download our free guides to ISAs and Pensions at www.truepotential.co.uk/ourgu....
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For podcast questions and guest enquiries email [e-mail].

[@jonbradburn4691]

I'm 60 later this year, been retired 5 years best advice I was ever given invest into your pension early.

[@TruePotentialLLP]

Hi Jon, thanks for watching the podcast and for your comment. That is a good start, but it's never too late to start investing into a pension. It you have any questions, please speak to your financial adviser.

[@nicobass1966]

I'm heading towards 58 and have been thinking about retirement for a few year. Anyone with a good head can do your own cash flow modeling. A growth compound calculater, good spread sheet with all costs, read into risk in stocks and shares, max out ISA, salary sacrifice, look at platform fees, effective taxation. FA are exspensive and can chew into your pension pot, some charge a fee and some charge a % of your pension value. Imagine having 500k pension pot and they charge 2% of that per year, that is 10k per year of your pot - that may equate to 6 of your fund if you choose to take 20k a year - undertand fund growth but they will still charge you there fee - remember the bigger the pot the more they earn, it's there living. My advise is take your time, do your homework and try and work things out yourself or help from a friend or family that is £ savey - you will save yourself thousands of £ and have much more in your pot and less in there pockets

[@TruePotentialLLP]

Hi Nick, thank you for taking the time to watch the episode and for your comment. At True Potential we use specialist software for cash flow modelling. Our software can take into account various assumptions to help detail a comprehensive cash flow model for clients. Our ongoing advice charge within our Head Office Advice team is also 0.5% per annum, but this can vary with our Wealth Management Partners.

[@mertonhartshorn5974]

I've decided to retire this year and spend a year on tea and lentils till the state pension kicks in while not drawing my other pension down until later. So I'll have plenty of time to recheck my calculations and risk appetite! From the generation which was mis-sold financial products in our late 20s when starting out, your video sessions are just what we needed back then, and the financial services are now easier to access so no excuse. I tried "FIRE" for a couple of months but it was unworkable with cummuter costs and sick reatives to attend to - if you have a predictable stable lifestyle and can share househld bills it could work, so long as you don't fall out. The digital equivalent of putting loose change in a vault (like pennies in a jar) is good for habit forming, but seeing pension as a monthly outgoing like bills I think is the best route.

[@TruePotentialLLP]

Hi Merton, thanks for your comment. We agree, getting into good habits and setting up regular direct debits over a long-term period can be a great way to build up wealth in retirement.

[@splottcardiff3993]

Would personally much prefer ‘one-off’ financial advice fees, as opposed to typically 2% - 3% annually of your overall pot. A annual % amount could run into the £1,000’s, if you have a decent pot. Also, I know some people benefit for assets under management, but global low cost index funds with a small platform/product fee suit me perfectly

[@TruePotentialLLP]

Hi, thanks for watching and for your comment. Our advice fees within the Head Office Advice team are 0.5% per annum. This can vary with our Wealth Manger Partners. The ongoing fee allows clients to access to their Financial Adviser whenever they like, and the charge is applied in regular increments across the year to avoid a large reduction in the portfolio value.

[@jasonyoutube2908]

Great video, well facilitated and nice to hear clear, straight talking from all of you. Keep up the good work

[@TruePotentialLLP]

Hi Jason, we're glad you enjoyed the podcast and thank you for your positive feedback!

[@tancreddehauteville764]

As someone aged 57 my biggest worry is the government moving the state pension age further to the right. This remains a threat, regardless of which party is in power. The state pension is CRITICAL - it MUST continue to prevent people falling into penury, and at 67 the pension age is already much too high. Tories will DEFINITELY abolish the state pension - the plan to eliminate NI means eliminating the state pension. Labour is now 'soft Tory', so they will also be gunning for pensioners, but not as severely.

[@TruePotentialLLP]

Thank you for your comment and for watching the episode. We are hopeful that the state pension continues, and it is very likely that that we will just see increases to state pension age. However, given the uncertainty around this, clients may be better off not solely relying on their state pension, and if possible looking at additional retirement provisions.

[@dominic8218]

Good information folks. Well done 👍🏻

[@TruePotentialLLP]

Thanks for your positive feedback Dominic!

[@oliviapeart7797]

Useful information but too late for me. Will help younger relatives hopefully 🙏🏾

[@TruePotentialLLP]

Hi Olivia, thank you for watching the episode and for your comment. We would recommend speaking to your financial adviser to explore what options are available to you.

[@nightjockey02]

Good video. It should be possible to give ball park figures on the amount required to give a retirement income of; e.g £20k, £30k, £40k etc if wanting to retire at 50, 55, 60, 65. Could this be made available behind the the TP website password barrier? It wouldn't be advice or personal but would help paint a picture of what is achievable.

[@hxjohn]

You need at least 25 times your annual required income I believe That's recommended

[@nightjockey02]

@@hxjohn Nah.. thats too much of a generalisation and doesn't take into account the broad variable of required income and retirement age.

[@andymason7393]

​@@hxjohnpersonally I don't agree with that, FA should be making you 10% growth if you need 25 times change your FA

[@TruePotentialLLP]

Hi Stuart, thanks for your comment! Generally, the pension pot required would be a multiple of 25 of the income required. For example, £20k per year would require a pension fund size of £500k (20k x 25=£500k) This works out at around 4% of your pension pot per year as income (£500k/4% = £20k).

[@ant270]

FIRE - be miserable saving everything you can until retirement then, be miserable until you die. No thank you!

[@TruePotentialLLP]

Hi Ant, thanks for your comment - this concept may not be for everyone!

[@Lookup2Wakeup]

I'm just miserable, sounds great ..... 😂

[@andymason7393]

The 4% rule is rubbish in my opinion, if your financial advisor can only produce an income of 4% then drop the advisor asap. Also if you adjust for your gov pension you can withdraw additional prior to 67 and reduce withdrawal post 67 and into old age

[@TruePotentialLLP]

Hi Andy, the 4% is not the income the investment produces, but the generally agreed "safe" amount to withdraw as income to have a regular income and not deplete your capital. The return rate would aim to be higher than 4% to account for inflation and fees. Not everyone subscribes to the 4% rule, but it is a useful starting point for discussions with a financial adviser.

[@Lookup2Wakeup]

I work on the fourth percent rule for draw downs. My pot has gone up around 7 percent over the 37 years I've paid in. Just this year with the record stock market records, my pot has gone up 11 percent. Next, get ready for the crash .... 😅

[@andymason7393]

@@Lookup2Wakeup I feel you must be in a conservative portfolio, the S&p 500 has gone up on average 10% for a significant length of time. However maybe you also would like to leave an inheritance to family, for that I can sort if see why people are concerned about their pot reducing

[@andymason7393]

@@Lookup2Wakeup if you have seen 7% annual growth over 37 years why are you limiting yourself to a 4% withdrawal?

[@Lookup2Wakeup]

@@andymason7393 It may sound a bit crass, but I don't need all the money & I like seeing the fund grow....🙂👌 Combined with my state pension this gives me £2k a month after tax. Plenty for me.