PENSIONS UK Explained: Pensions Basics Guide For Beginners

[@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).

[@danielsquires2844]

I’m loving increasing my financial literacy with your channel thank you for the help in the uk 🇬🇧

[@TheHumblePenny]

Amazing! 👊🏾

[@Nfdo9106]

Thank you Ken and Mary, this is very helpful, I need to watch this again to understand better😊

[@TheHumblePenny]

For sure, it's a lot in one video and we expect people to return and watch it at various intervals

[@TheWellnessAbbey]

I increased my pension contributions last year, so am loving the topic of this video! Really thorough information- thank you.

[@TheHumblePenny]

You're welcome :). Good move by the way!

[@MrRoyck10]

This is a comprehensive breakdown of pension, this is my favourite topic and I find this content extremely informative. I have shared this compelling video, thanks Ken & Mary.

[@TheHumblePenny]

Thanks so much! We hope more people look at pensions more positively as a wealth building tool and not avoid it out of ignorance or worry.

[@MrRoyck10]

@@TheHumblePenny so true, I have recommended pension bee for my wife’s private pension as a contractor, I will let them know curtesy of the Humble penny!

[@TheHumblePenny]

AWESOME! Feel free to use our referral link: Thehumblepenny.com/Pensionbee 😊

[@mattknap6528]

Really comprehensive guide with amazing information. However, I do have a question with regards to the pension. I have loads of paperwork regarding pensions (proof of the transferred amounts from different providers to the one major pension). Do I have to keep this paperwork or can I just get rid of it? I have already combined all pensions into one so I am fully aware of the status of my pension pot.

[@TheHumblePenny]

Thanks! Keep a digital copy.

[@mattknap6528]

@@TheHumblePenny thank you for prompt answer. I think, I do not have digital copy (they were sending me everything in paper) however, I will double check and will eventually come back to you.

[@keithchegwin1222]

Great video topic 👍, my wife is a Deputy Head teacher, she opted out of her pension a few years ago. She said that if she dies I wouldn't get all of the money, just a percentage of it. Do you know what percentage most people would receive of their partners pension if they died? I think someone told me it was only about 60%. Thanks for sharing your knowledge, I really need to get my act together. 🙂👍

[@TheHumblePenny]

Hiya, the person who gets the pension is the named beneficiary on death. One can allocate 100% to one person (like a spouse) on death or they can split it and allocate it in different percentages to others. Read this article too: www.pensionbee.com/pensions-explained/pension-rules/pension-rules-after-death

[@keithchegwin1222]

@@TheHumblePenny . Thanks

[@darkangel686868]

Another great video Ken and Mary! It would be interesting to do a compound interest calculator analysis between Pension vs LISA vs S&S ISA, and how this ties into a FIRE plan. The trouble is the government will keep raising the pension age, which creates unpredictable risk in retirement planning. So is a S&S ISA better tied to FIRE planning overall?

[@TheHumblePenny]

Excellent question. It really depends for each person as we all have different income situations, earnings and goals. We do like your suggestion though 😀 Have you seen our Pension vs ISA video out of interest? There is a section in there where we cover the order of these accounts. kzbin.info/www/bejne/eImYi6F8prxmfJI

[@rajshu6408]

Brilliant Explanation Ken and Mary. If l have a child under 18 and start a Junior Sipp for them would they get Tax Relief? Thankyou.

[@TheHumblePenny]

Hey Raj, yes :)

[@nickd1973]

Thanks Ken and Mary for creating such great content! I’ve got both a personal pension and a workplace pension (maxing the employers contribution of 5%). I want to increase the amount of money I put into my pension but I’m wondering whether I should put that in the personal pension or the work place pension or a bit of both? As a bit of background I’ve had my personal pension since I was 25 (1998) as then a freelancer designer and my workplace pension since age 40 (2014). The personal pension currently has a value 4x my workplace pension but I’m currently putting much more into my work pension because of the employer matching my 5%. My personal pension has changed hands from Friends Provident due to mergers resulting in it now being with Aviva, the same as the workplace pension. Where best to put that extra money? Thanks for any advice you have.

[@dricagomes1844]

Great content as always. Am glad that I found your channel. Am just wondering what would happen when you die before the retirement age? If you don't have kid/hildren but you have partner. Another question is if you stop contributing into pension before reaching the age 55 can you withdraw the money invested?

[@TheHumblePenny]

Great questions: Q1: If you elect for your partner to get your pension, they will without inheritance tax. Q2: Yes, you can.

[@TheCXBbudget]

I’m so glad you’ve made this video this has been my next category on my financial journey I am trying to educate myself on as much as possible. I’m planning on using my lifetime isa post house purchase in combination with the state and workplace as the bare minimum, then work on fire separate to that. Making notes 🤓

[@TheHumblePenny]

Amazing!! Please share with others 😊

[@sanjaymanu1]

Very nice insight..thanks for sharing.

[@TheHumblePenny]

😊🙏🏽

[@Lifecoachingtoday101]

Really great information..I have to watch it again an pass on to family & friends One question whats the benefits of an anunity seems a bit like equity release but for pensions..an we all know about ER Keep up the good work guys

[@TheHumblePenny]

Cheers, Mike! We'll look to make a video about annuities soon.

[@michelpohl1019]

Is it possible to withdraw money from a UK pension from abroad after having worked in the UK and contributed for a while (several years)? I recently immigrated to the UK and I worry about losing access to all of the money I will have invested; I know that some countries do not have pension agreements with the UK and I heard that non-residents cannot even have a bank account easily in the UK. Thank you for your videos, they are very useful, I am binge-watching them at the moment ^^'

[@TheHumblePenny]

Yes. You can easily withdraw money from your pension if you're living abroad. We have family currently in this situation.

[@aristotlechange1424]

The maximum weekly state pension is £141 in the UK, £507 in Germany, £304 in France, and £513 in Spain.

[@TheHumblePenny]

£185.15 in the UK. Although nothing compared to the others it would seem.

[@tonykelpie]

If you have the opportunity of an employer pension, take it. Ensure your NI record is kept up, consider buying additional years/weeks/months if you have had gaps in last 6 years. Use Lifetime ISA if you are in the age bracket. Invest in Personal Pension, choosing well managed funds, if you can afford to.

[@TheHumblePenny]

Cheers, Dan! Great contribution.

[@LegendInTheEndzzz]

Great video

[@TheHumblePenny]

Thanks 😊

[@judixx4247]

The mention of salary sacrifice has confused me. If I am a freelance contractor (under IR35) and I put £300 into a SIPP each month, is that considered salary sacrifice?

[@TheHumblePenny]

Are you putting it in from your net income or from the business directly?

[@judixx4247]

@@TheHumblePenny directly from the umbrella company to the SIPP.

[@shivamchawla171]

Hi, You mention for a workplace pension, that we contribute 5% and employer contributes 3%. Is the 5% we contribute from our salary, and the 3% of what the employer contributes, extra?

[@TheHumblePenny]

Yes, the 3% is extra.

[@shivamchawla171]

@@TheHumblePenny thank you

[@TheHumblePenny]

You're welcome.

[@fabolous86]

Great vid

[@TheHumblePenny]

Thanks for watching :). Please share with others

[@BabiesBudgetsBeyond]

Thank you 🙏

[@TheHumblePenny]

You're welcome :)

[@MikeSunTzu]

Oh my god, why is it so complicated? I just want to know how much I should top up my company pension. I have £30k disposable savings and I have no idea whether it's the right thing to do. I'm a company high rate tax payer and have been for the last 3 years (and more) but only paid the minimum contributions. I'm logged onto my pension portal which allows me to contribute a lump sum and also a monthly contribution but how much??? There is so much conflict in the guidance. A company has offered to help with this and investments, property trusts etc.. and want to charge £1k a year. I don't know whether this is a good deal or not. Mortgage, cars and debts all paid. Also my long term partner has a part time job, do we have to get married to transfer any tax relief? You would think there would be some sort of online calculator but everyone wants to charge you for this advice which can't be right.

[@Harry-lt7bk]

I’m 20 and not going to bother with a pension I’d rather put my money into a stocks and shares ISA and have access to it whenever I want

[@TheHumblePenny]

Harry, thanks for the comment. Although that decision might suit you now, you may want to reconsider it before it's too late. Think of the order of investing your money by what your goals are rather than a blank No to pensions :). Access to your money is important, but remember that before you know it, you'll be 30, 40, 50 etc. So please think bigger and don't just limit yourself to an ISA. Consider strongly the pros and cons of a pension vs ISA. We've made a video about this. All this is just a suggestion though, so in the end, do what you think is best for you :)