I Wish I Knew This About PENSIONS When I Was 20! | Invest in 2022

[@TheHumblePenny]

To combine/consolidate your pensions into one in under 5mins, use PensionBee thehumblepenny.com/PensionBee (this is a referral link but it costs you nothing to use it 😊. We do get a small commission to support what we do if you click via our link).

[@meenalimbu2553]

Hello Ken can my employer put the additional salary sacrifice directly into my SIPP instead of my work place pension. I already contribute 5% into my workplace pension that is matched by the employer. My workplace pension have poor growth. I'm only 25

[@jude3144]

I've heard awful things about pension bee

[@gillhoward7063]

I was fortunate, my father advised me from the day I started working to invest in my pension so I started in my early 20s. I ensured I got the maximum employer match and took the salary sacrifice offer once available (yes I am that old!) consolidating pensions when I started a new job. I turned 50 this year and my pension position is pretty solid. Now our mortgage is paid we are contributing more to SIPPs/ISAs to now boost the pot further with the aim of retiring at 55. I probably could have looked into additional payments outside of employer pensions earlier and would definitely be what I ‘wish’ I had done. He’s no longer with us but I thank him every time I review my pension statement. Thanks Dad.

[@TheHumblePenny]

Gill, it's so good to hear from you and to hear that you're in a good position with your pension. This should be an encouraging message for a lot of people because belief it or not, some feel like they'll never see their money if they contribute into a pension. Great wisdom from your father for sure.

[@Afrinaturality]

It's worth getting a pension advisor first because it's not always advantageous consolidating your pensions.

[@TheHumblePenny]

Good suggestion. Thanks for sharing

[@LisaCulton]

I'll be 100% honest. What I'm finding out about pension plans now that I'm somewhat older is that 1) they are not tax-free in any way, they are only a tax-deferrals, 2) you have essentially no control over your money and are subject to the whims of market volatility 3) you have to jump through hoops to take out the money "early" and you will also be penalized for doing so. In essence, the investor has to *pay* to have access to his or her own money. I've stopped contributing to any pension funds that are not mandatory. My opinion is that anyone who understands investments and is good at saving/budgeting will do better investing for retirement on their own.

[@Heidi123]

Lisa you're missing out if you don't use pension allowances. When you come to take your pension 25% of your pension pot can be withdrawn tax free. You also have the annual tax free allowance (about 12.5k a year). You can open a SIPP and choose your own funds and investments. Take what you get from your employer and either choose your own funds if that's allowed or shift the pot to a SIPP each year if you want to have control. Also you can leave a money purchase pension pot to your dependents IHT free.

[@LisaCulton]

@@Heidi123 I have or have had different types of pension funds in different countries and not all of them had employer matching. That being said the problems become apparent when you want to use your money, such as in your example, a person is only allowed to have 25% of their own money tax-free but what if I want 50% or 100% of it? In contrast, if I want to use the money in my taxable brokerage account, I can liquidate my positions and use the cash without any penalties. There may be capital gains taxes, but It certainly won't be the 30% (20% withholding + 10% tax penalty for early withdrawal) hit that I will take if I withdraw "early" from a pension fund (speaking of US pensions here). For comparison long-term capital gains tax in the USA ranges from 0% to a maximum of 20%, depending on total income. Yes, you can choose your own funds from the limited offerings, but your are not able to react quickly enough to save or preserve your wealth in the case of a market crash. Changing the allocation once a year is not gonna cut it. There's no control. Like I said, I'm only noticing these things after investing in these funds for close to 20 years now. Earlier, I thought that they were a great deal, but my opinion has changed.

[@Heidi123]

Ahh,I think it may be different for UK v US from a tax beneficial point of view. I thought you were UK based.

[@LisaCulton]

@@Heidi123 The concept is the same though. At some point you're going to pay - a lot, while simultaneously having essentially no control or access to large sums of money. I also have similar plans in Germany and Switzerland and they are all the same.

[@TheHumblePenny]

Hi Lisa, thank you for sharing this perspective. Pensions aren't perfect although highly tax-efficient and everyone has to invest in pensions considering very carefully their personal circumstances (e.g. need for liquidity, access to cash, etc in the interim) and balancing that with long-term goals around retirement. For this reason, the order in which one invests is important. This video on UK ISA vs Pensions is worth watching as we explore that order whilst weighing up the pros and cons of investing in a pension: kzbin.info/www/bejne/eImYi6F8prxmfJI

[@chrisc486]

Ken, you said you wished that you had boosted your pension, rather than saving for a property. How much has the property increased in value during the period compared to the compounded value of a topped up pension, you could be surpised - also when you are on the property ladder looking to purchase your next property, you arent paying income tax on the gains.

[@andreeadobircianu5561]

Great video! Thank you for sharing! I was going to opt out of my pension and invest it but this has made me think twice

[@fatinak291]

Thanks for the video, it would be interesting to see a video about expected Pension Pot by age to make sure we are on track for a decent pension 😃

[@TheHumblePenny]

Great suggestion 😊

[@chrismorgan6057]

My former company offered 10% matching it’s just throwing money away not to at least contribute up to the maximum your company will match!

[@TheHumblePenny]

💯

[@jazztec4255]

What do you think about the nhs pension?

[@user-bz8zq4mk3l]

Am 19 years old I want to make a pension fund do I use a personal pension fund ? How would I got about making one

[@TheHumblePenny]

Are you working? If so, your employer should offer you one. If you're not working, then a personal pension fund is where to begin. You can start with PensionBee if you're self employed thehumblepenny.com/PensionBee (this is a referral link but it doesn't cost you anything to use it. We do get a small commission but refer PensionBee because we love them and use them ourselves). Here is what they stated on their FAQ page: "So if you’re self-employed and don’t have an existing pension to transfer, you can open a new PensionBee pension without combining an old one."

[@user-bz8zq4mk3l]

@@TheHumblePenny perfect cheers ! Il be opening a personal Pension due to me being a student !

[@iniester6724]

do you recommend doing pension investment through a SIPP?

[@TheHumblePenny]

Yes.

[@ibexy]

This was interesting. PensionBee is asking for pension provider details. Not sure who this is anymore. is there a way to find out?

[@TheHumblePenny]

Yes. According to the PensionBee website: "You can contact the Pension Tracing Service in several ways. You can search the Pension Tracing Service’s database online or phone the service on 0800 731 0193. Bear in mind that the Pension Tracing Service can only provide contact details for pension providers: it won’t tell you whether you have a pension or how much your pension is worth. To find out confidential information about your pension you’ll need to contact your pension provider directly." www.gov.uk/find-pension-contact-details

[@olavic2]

The referral link has expired

[@TheHumblePenny]

Just updated it. Thanks for letting us know :) Here is the link: thehumblepenny.com/pensionbee

[@welshhibby]

Just found you, great video....subb'd.

[@TheHumblePenny]

Thank you 😊

[@GB-rt]

I need to get my pensions in one place. Does Pension Bee automatically do it for u or do u have to have the info to input in their system? I am thinking of matching my employer contributions in 2022 which is pretty decent.

[@TheHumblePenny]

You need to give them some info to start with and they then do it all for you. You need to give them things like the Pension provider name and/or your policy number. Please do consider using our referral link: thehumblepenny.com/PensionBee It doesn't cost you anything to use it. We do get a small commission to support what we do 😊

[@kieransmith8362]

Ngl I put 125 in my pensions monthly and my employer put an extra 250 so that 375 a month

[@inatehex]

Once my employer started to offer salary sacrifice on my pension contributions, it was a total game changer for my retirement investment strategy!

[@TheHumblePenny]

🔥 🔥 🔥

[@richardtaylor7829]

I did, & now all I see is my Pension being decimated by PensionBee. Totally opt out of a pension & put it under your bed, more safe.