What income will I get from a £100K PENSION POT? - Retirement income explained (is £100,000 enough?)

Рет қаралды 22,166

Күн бұрын

Пікірлер: 64

@voodoomotion5855 27 күн бұрын

Given the current situation, probably best not to expect a state pension if you have a reasonable private pension or own your home

@Moneytothemasses 27 күн бұрын

I agree. Plan for the worst especially if you are a long way from your state pension age. Damien ❤️

@markeh1971 26 күн бұрын

@@Moneytothemasses Hi, the pension was never a means tested or a Benefit. It was your pension, you pay in and you get out according to how you paid in. To change it now leaves us like the WASPi women, unable to recover. Take care. M.

@maxflight777 26 күн бұрын

Agreed ! Means testing on its way

@topfuelteddy 24 күн бұрын

Can't wait to get all my NI contributions back 🎉🎉

@DixieDaydreamer 27 күн бұрын

If there's one thing I've learned while planning my retirement over the last few years since hitting 50, it's that you're given averages from all quarters but no one ever lives an average life. Retirement seems to be so personal and unique to each person that averages help give ball park figures, but you simply need to sit down and do all the maths yourself, or if you can afford it you get an pensions IFA. 15 years ago my wife and I got into some serious debt, to get out of it we started recording every penny we have coming and going, my wife has years of spreadsheets seeing where the money moves to and from got us out of debt. We used those same sheets when we started planning how retirement might look in 5-10 years time, knowing how much you spend on everything. It was the one thing that really set my mind at rest as it blew away the PLSA stuff as we know our lifestyle, likes and dislikes, know what will have to spend and how much we can pee away on fun stuff in retirement.

@OneAndOnlyMe 26 күн бұрын

At age 53 I have £300,000 in pension pot (funnily enough with PensionBee, I consolidated all my previous workplace pots). I work in a highly paid sector, and the wisdom passed to me at an early on was that, if I wanted to retire early, at age 50 to contribute as much as possible to the pension. Problem is many people spend more when they move up the pay scale or earn a bonus. If you want to work until you're nearly 70 years old, then put the minimum into your pensions. If you want to retire early, before age 55, put more into your pension during your career.

@voodoomotion5855 24 күн бұрын

Very sound advice there! I have the same attitude towards saving, live a balanced modest life in the now and save enough for the future because quite often tomorrow comes. What upsets me regarding IHT is that a lot of my pension has been saved for my son who is autistic. We can't depend on this government to help him in the future if they don't care about pensioners. We've gone without, saved long term as it was a supposedly a safe place to grow a future for him. I don't mind too much, because we expected to make withdrawals at 20%, however it forces us to withdraw it all rather than pass it on for his future. It isn't much, but we have made sacrifices and that is the true cost. You can't buy back the time spent away from your family to provide a better future for them, IHT avoidance was the reward for doing so

@OneAndOnlyMe 26 күн бұрын

Something to keep in mind, the average healthy life expectancy in the UK is age 63. Do you want to retire after your health is starting to deteriorate?

@daveharruk 27 күн бұрын

Deferring your state pension is a really bad idea - I struggle to think of even an unusual situation where people might benefit from doing this.

@Moneytothemasses 27 күн бұрын

Thanks for the comment. One scenario where people might consider deferring their state pension is for tax purposes. If you're currently 65 and earning an income, but anticipate being in a lower tax bracket in the future (ie after fully retiring), deferring your state pension could save tax. This is because your future pension income will be taxed at a lower rate when you eventually claim it. Of course tax isn’t the only consideration, for example if you are entitled to pension credit or other benefits then deferring your state pension might not be worth it Damien ❤️

@markeh1971 27 күн бұрын

Hi, when I was younger…… It was 65, now it’s 67 so it’s already gone back 2 years for me. I can understand the benefit but you have no way of knowing your life expectancy. I think I’ll struggle to make 55 due to heart issues. Take care M

@stephen2203 27 күн бұрын

I retired in 2012 in my late 50s. Damien's point about working past retirement age is the only one that makes sense to me. I manage my own pension, I also did the calculation for break-even considering deferred income vs starting SSP immediately. On the basis of not trusting the government and having no idea when one's final gasp will occur I chose to start SSP at its first availability.

@evokestudiosbrighton 13 күн бұрын

@@Moneytothemasses what if you took the state pension and put that straight into a private pension, you would get tax relief on that mitigating some of the extra tax you will pay.

@howardskeivys4184 26 күн бұрын

I have a full state pension, 2 private pensions 1 of which I’ve not drawn on yet and I’m still contributing to. I’m also still in full time employment. I am, as you can imagine, being crucified by the taxman. Ive been actively seeking appropriate financial advice. It appears to me., that independent advisors either want to sell my entire pot and take 10-20% commissions, or, enter me into some type of investment plan for the privilege of so doing, they’d charge me a rate not dissimilar to what the taxman is currently getting. It’s a ‘win win’ scenario, for the taxman or financial advisor, but not for me.

@Pegaroo_ 22 күн бұрын

Boo hoo I earn a lot so I get taxed a lot, what a wonderful problem to have But in all seriousness I'd look at what www.youtube.com/@JamesShack www.youtube.com/@chrisbourne-retirementplanner www.youtube.com/@MeaningfulMoney have on their channels lots good of advice on best ways to manage your pensions

@Pegaroo_ 22 күн бұрын

8:35 DON'T DEFER YOUR STATE PENSION!! It takes 17 years for you to breakeven from deferring and that's including the extra tax you'd need to pay because you are still working. Not saying you shouldn't consider it but can you be sure you'll make it to 80?

@stephen2203 27 күн бұрын

IIRC the age at which youj can start withdrawing from a DC pension or SIPP is now 56, and will rise to 57 when the SSP qualifying age increases.

@AG-so4gl 22 күн бұрын

Go where your money works hardest. Key is to keep fixed costs under control

@BaileyMxX 27 күн бұрын

The pot averages mean very little, many people will have pots scattered across different providers from a range of jobs across their career. Most people don't take any interest in their pension nor know what its invested in nor its value so realistically they are highly unlikely to have combined all their pots into a single pot.

@clarkeysam 27 күн бұрын

Surely the averages given are per person and not per pension account.

@BaileyMxX 27 күн бұрын

@@clarkeysamwhere are they going to have gotten that data from if you have them strewn across different platforms and providers from multiple jobs like many do?

@kinggeoffrey3801 26 күн бұрын

That's why a SIPP is a must.

@clarkeysam 26 күн бұрын

@@kinggeoffrey3801 a SIPP is irrelevant if the person doesn't have enough money.

@leewellstead2305 27 күн бұрын

This is great advice. Thanks for sharing it

@Moneytothemasses 27 күн бұрын

Glad it was helpful! Damien ❤️

@maxflight777 26 күн бұрын

Surely it depends on your retirement age !! If you are 62 a 6% drawdown might work. If you are just 58 I think a 4% drawdown rate is the maximum you could plan on.

@waynemay7327 26 күн бұрын

I think the 4% figure is used because taking account of inflation and allowing for a bit of growth you'll never run out of money. So age doesn't matter.

@t28mcd 26 күн бұрын

£100k per year, for one year

@JayBrainstorm123 26 күн бұрын

Hell yh! party time! 🤣

@kinggeoffrey3801 26 күн бұрын

If you reach state pension age, take it you don't know how long you have got.

@evokestudiosbrighton 13 күн бұрын

it doesnt make sense to me to take a level annuity so even the lowest joint rising at 3% (4.89%) is higher than the 4% rule for drawdown and if the market crashes you shouldnt even take that. So your saying its a no brainer, unless you want to leave an inheritance.

@jayplays568 27 күн бұрын

Are you still entitled to whatever amount of state pension you have built up if you move abroad when you retire/stop working (for example to another European country) and become tax resident there?

@Moneytothemasses 27 күн бұрын

Yes you can although some people who move abroad don’t enjoy the full annual increases from the triple lock (if they live outside of the EEA). More info here www.gov.uk/state-pension-if-you-retire-abroad/rates-of-state-pension Damien ❤️

@jayplays568 26 күн бұрын

@@Moneytothemasses Thanks! I was thinking about the Canary Islands which it looks like are within the EEA. I just checked my future state pension at the link in the description, thanks. It says I have a few partial years which I can contribute extra for (from when I worked part-time at uni), do you have a video (or could you recommend one) which explains how to work out the benefit of making the extra contributions? I am not sure how to work out exactly what the benefit is e.g. the site currently says I have 18 more years until I would reach the full state pension, would this decrease if I make the additional historical contributions and how can I work out how much it would decrease by? Also, it says I'm currently at ~£109/week out of the maximum ~£221/week, how do I work out what would that £109/week would increase to if I make the extra contributions?

@onekindthing1327 27 күн бұрын

So does that 43k include tax, state pension and assume you pay no mortgage? What is it really for a single person?

@johnristheanswer 27 күн бұрын

Those living standard figures are a joke. I've always lived a comfortable type lifestyle on a lot less than £43k. That's equivalent to needing a £1m pension pot using the 4% rule.

@Moneytothemasses 27 күн бұрын

Fair point - bear in mind that the living standard figures include the state pension. So if you receive a full state pension you can deduct £11,502 per year from the required annual income numbers quoted. If you are a couple then you can deduct a second state pension from the numbers. That brings down the amount you need to generate from your personal pensions. Damien ❤️

@tancreddehauteville764 27 күн бұрын

@@Moneytothemasses It's still rubbish. These amounts entail EXPENDITURE not income! Once I've paid off the mortgage I would never spend £43k in a year!

@clarkeysam 27 күн бұрын

I agree that the figures given are a lot higher than I would need, however, it's better that they give a figure that's too high than too low.

@johnristheanswer 27 күн бұрын

@clarkeysam The weirdest thing to me is that the average wage is around £35k with most people getting along fine , then suddenly , when you retire, you somehow need more than average wage to have a decent life. Bizarre.

@clarkeysam 27 күн бұрын

@@johnristheanswer yeah I agree. I suspect that their justification is that when you're retired you have a lot more free time, which results in more money being spent. There could also be care or care adjacent (e.g. a cleaner) costs to consider. I wonder if there's a greater weighting in their figures for a higher cost of living area, such as London, where the average salaries are higher, because they don't want to give reasonable figures for the North East and then pensioners in London end up penniless.

@leehowson440 20 күн бұрын

Is this video about starmer asking me how much he will get from my 100k pension? My answer : All of it starmer, you'll take it anyway, or at least, Rachel from accounts will

@christopher554 20 күн бұрын

Less tax

@mikesweeney651 23 күн бұрын

Agree. Bitcoin for the win.

@JohnBeeblebrox 27 күн бұрын

Those retirement living "standards" are not relevant for most retirees. Their methodology is somwhat questionable and the values shot up way over 10-11% in the ladt update. They were useful in the past. Now, at best, a pessimistic upper bound...

@Moneytothemasses 27 күн бұрын

Thanks for the comment. The last update was surprising, but it does perhaps reflect the fact that we saw double digit inflation. As you suggest people shouldn’t get too hung up on them but if you ask most people how much money they’d need in retirement they have no clue. The retirement living standards are a good starter for further conversation / research, even if you end up discounting them for your personal situation. Damien ❤️

@markeh1971 27 күн бұрын

Hi, the state pension should be the basis of your pension income. To me it’s not a Benefit, I paid in all my working life for it and it’s the cornerstone of retirement income. Anything else and we need new MP’s and to charge the old ones with treason. The SIPP is the other pension way of saving but you have to be 55, soon to be 57 to state drawing on it. ISA’s are the alternative and let you control it all. For that reason they look good. I suspect that for most is will be a mix of it all. Take care M.

@clarkeysam 27 күн бұрын

@@markeh1971the state pension has always been classified as a benefit. However I agree that I'd be extremely pissed off if I pay for other people's state pensions for 40 odd years and then I'm not entitled to it myself. IMO any changes like that would be the end of a political party, there'd be no coming back, and therefore it's unlikely to happen. Just look at how the main parties aren't talking about removing the triple lock even though it's a significantly smaller change and everyone knows that it's unaffordable and unsustainable.

@phil2443 25 күн бұрын

@@clarkeysam It has not always been classed as a benefit! The last government changed it from an entitlement, so it can probably be means tested in the future, like Australia. Which I think like you would be a bloody disgrace and cause civil war from the oldies!

@clarkeysam 25 күн бұрын

@@phil2443 unfortunately you don't have a clue what you're talking about. What you've posted is completely incorrect. The state pension was classified as a benefit in the 1946 National Insurance act.