Phasing Into Retirement

[@ozone063]

I'm 33 years old, I'm glad I found your videos. I'm at the right age to start thinking about retirement, maybe even a few years late. Good video.

[@MeaningfulMoney]

Welcome aboard!

[@simongeorgeturner]

Dear Pete, I found your channel about a month ago. It really is an excellent concise source of basic financial information; perhaps the best to help one start planning retirement. As it happens, I retired from full time work just six months after this video was posted. Whilst the important decisions I made turned out to be optimal, I wish I had viewed this video the week it was posted.

[@iainhunneybell]

Another very interesting episode Pete. I am in fact right in the middle of year-by-year budget so great timing. Have to admit ‘UFPLS’ is a new one on me though. It seems no matter how much to learn, there some other piece to consider!

[@dorisbrown7347]

I am glad i tuned in

[@Chills124]

I really don’t like the idea of people controlling what you do with your money and I am glad that pensions have now been freed up to do as we please, some people prefer the stableness of continuing annuity payments but I think you leave a lot on the table with an annuity. £700k pension you are probably looking at about 25k annuity (more or less with taxes?) and usually thats fixed meaning it gets destroyed by inflation. But if you leave it in the market/fund lets say at 7% return (may fluctuate) and just withdraw 2.5k a month your pot is likely to keep growing indefiniteltly, although would require monitoring closely if the market dips for a few years.. Plus you can spread out the free withdrawal allowance over time. Good stuff

[@tommydunning5749]

Hi Pete, not sure what to do pension wise. I have a DB pension valued at £24k a year. Thinking of transferring out into a DC fund to cover any issues if I die early. Family left something rather than just the DB fund just stopping. Thoughts?

[@MeaningfulMoney]

Tricky ground, Tommy. I can’t have any thoughts on your specific situation without crossing the line into advice. Most people are better off leaving. DB pension where it is. If you’re worried about death benefits, then take out life insurance if you can. Chances are the costs for that will be significantly lower than the loss of indexed pension income for life. Given the size of the pension, you’ll have to seek professional advice on this, which is a good thing.

[@outdoorsman1140]

Hi Pete. I have two separate live DB pension schemes that I pay into from two different jobs. I also have a SIPP. If I start drawing down on the SIPP at age 55, would the £4000 MPAA prevent me from putting more than £4000 into the DB schemes, or is the limit only on the SIPP if I start drawing on it? Maybe I'm focusing to much on the Money Purchase element of MPAA and reading to much into it and maybe the limit applies to all types of pension contributions.

[@MeaningfulMoney]

Hi. See here: www.moneyadviceservice.org.uk/en/articles/money-purchase-annual-allowance Towards the bottom of the page.

[@outdoorsman1140]

@@MeaningfulMoney Thanks Pete.

[@chrisdaviesguitar]

the money left in the pension - does it still earn while it's there?

[@MeaningfulMoney]

Yes - it’s invested just as it was before.

[@princessnyeni5548]

I just turned 50 I have a pension set up by a previous employer, is a small pension fund, just under 30,000 l want to take all the money in lump sum, I know I will be taxed, but I'm desperate for cash now...I will appreciate your advice on how this works..my tax bracket is 20% and I'm currently unemployed on job seekers allowance...also will this affect my welfare payments...thanks.

[@MeaningfulMoney]

Sorry Princess - you can’t access your pension before age 55 😔

[@u3vs62cja]

This is depressing... Are you ok?

[@dettisyo]

could this virus affect pensions in the future ?

[@MeaningfulMoney]

In the short term perhaps, though the word ‘pension’ covers a multitude of things, so it depends on what you were thinking. Long term, I think not.

[@stephen6262]

Thanks pete great video would like to retire /semi retire would I be able to take 12000 tax free allowance every year out of pension pot tax free . Like phasing down please