Martin Lewis Busts Pension Myths With His Money Masterclass | This Morning

[@AlilatTiamiyu]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[@YvonneFranken]

I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.

[@AlilatTiamiyu]

@@YvonneFranken That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well

[@YvonneFranken]

@@AlilatTiamiyu My advisor is *MARGARET MOLLI ALVEY*

[@YvonneFranken]

You can look her up online

[@IbrahimIsabella-00]

@@YvonneFranken The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?

[@DannielleRosales]

I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Evelyn Infurna. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.

[@DannielleRosales]

Use her name to quickly conduct an internet search.

[@DannielleRosales]

SHE’S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.

[@DannielleRosales]

Infurnaevely1 she’s verified

[@jeffbox1torres]

I went from no money to lnvest with to busting my A** off on Uber eats for four months to raise about $20k to start trading with Evelyn Infurna. I am at $128k right now and LOVING that you have to bring this up here

[@BrianWilliam-m6l]

Evelyn Infurna Services has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's

[@IamJonny-o4v]

I have two pensions. I would much rather have had a Roth 401k throughout my working lifetime. $500/month invested from 25 - 65 at 9% is $2.3mil. I have $100k that i like to invest in a non-retirement account, Where would you invest this as of now?

[@winifred-k9e]

I would avoid the index funds, mutual funds, or specific stocks for the time being. 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows signs of recovery.

[@tatianastarcic]

45% of Americans do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor.

[@LUCIASMITH-d1z]

Great gains there! mind sharing details of your advisor please?

[@tatianastarcic]

She goes by ‘’Melissa Terri Swayne’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@nicolasbenson009]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[@Vincent-j8u]

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

[@tatianastarcic]

People often overlook the value of financial advisors until they experience the downside of emotional decision-making. I recall a few summers ago, after a difficult divorce, when I needed help reviving my struggling business. I did some research and found a licensed advisor who worked diligently to grow my reserves, even amid inflation. As a result, my reserves grew from $275k to around $750k.

[@TinaJames222]

this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@tatianastarcic]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Sophia Maurine Lanting for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

[@sharonwinson-m8g]

Thank you for the information. I conducted my own research on google and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call.

[@neilshirley]

Martin is always brilliant.

[@franknash6602]

I started a pension at age 28 and worked until I was 69. It was the best financial decision that I ever made. I took 25% tax free when I retired. The pension fund goes tax free to dependents if you die before age 75 and is tax free until drawn from if you die older than 75. It's no good saving unless you save over the long term.

[@geoffyoung3874]

Problem is if the incoming government changes the rules.

[@caspice]

You could have stopped long before 69.

[@steve6375]

Look up the annual gains on your pension. Most have an appalling average of 4-6%.

[@markcoomber8222]

@@steve6375. Correct….if YOU have selected and invested in an ‘appallingly average’ fund within your pension ‘wrapper’. It’s important to select the correct funds, those that are appropriate to yourself….or seek advice from a FCA-regulated adviser with the necessary experience and qualifications who can help you do so. Whereas, if you have just left it in the pension plan’s Default Fund either through ignorance or laziness then you’ll most likely have experienced the type of performance you referred to. But it’s not too late to do something about it. But YOU have to do something about it. You are the adult here(!) If you do nothing then it’s only gonna affect one person and there’ll only be one person to blame: YOU. That is the cold, hard truth. It’s your money, your pension, your life, your responsibility to do something about it. Or just die poor.

[@slayerrocks2]

​@steve6375 you are in control of what it is invested in. S&P index has averaged 11%. This year 25%. If yours has underperformed, it is your fault.

[@bigbangerz5856]

I like Martin he talks sense and truth

[@richardschofield2201]

He seems to over simplify to the point that the information is wrong. For many they can't access their pe Sion at 55. It's 57. Probably 58 when the time comes. A £100 pension contribution for basic rate tax payers doesn't cost £80. He's ignored national insurance.

[@matteohenry33]

I sold an apartment in Springfield and made about $250K. I was frustrated when I only earned $171 in interest from a regular savings account. After doing some research, I was advised to invest in stocks. Are these stocks a good point to start from?

[@HettieClausenTl]

While the stock market is promising and can give good ROI, expert guidance is essential for effective portfolio management so you don't get burnt out in the market as it is very volatile.

[@coryDeshawn]

I opened an online high-yield savings account with 5.12863% interest compounded daily, expecting to get $2,500 in interest on my initial $50,000 at the end of the month. Instead, I only received $420. When I inquired, I was told the interest is calculated daily, which was not clearly stated on the website. My partner advised me to divert into stocks through an advisor, and in just six months, I achieved over 80% capital growth, excluding dividends. Highly recommended!

[@SolemnBankingplc]

Pls how can i meet this advis0r? i want someone to help me invest my divorce settlement, It's just being laying around in the bank without much interest.

[@coryDeshawn]

Celia Kathleen Martel is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment. She’s really good

[@SolemnBankingplc]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@tangoterrier]

One inaccuracy here is that if you take the jam first sponge late option you will not be a non taxpayer if you draw your state pension because that will use up most of your personal allowance. Probably the best you can achieve is paying tax at only basic rate.

[@OneAndOnlyMe]

Remember though with a pension you can't retire before age 55. If you want to retire before age 55, then also save into an ISA (invest in index funds). That way you can use the ISA to retire before 55, if you want to.

[@s9enny]

Trouble is the tax threshold being kept at £12,570 so once’s the state pension is factored in most will still be paying tax even on a small pension 😡

[@markcoomber8222]

So what ? It’ll only be 20% on the excess. Do you want to keep 80% of the excess or 100% of nil excess ?

[@brucedickinson12]

Taking mine at 55 retiring as soon as I can

[@babyfreezer]

The reason you pay tax is because the money originally put into the pension was not taxed

[@JevansUK]

​@babyfreezer exactly and more importantly you've compounded the benefits of the saving over years inside the scheme without capital gains

[@ryanberry1]

Why do people think they're entitles to not pay tax on certain income??

[@ivanglossop5106]

I paid in from 16 years old with the NCB .until 30 and Paid in to DCC for 24 years. Retired at 54 best thing I ever did .

[@jabberwockytdi8901]

The biggest thing no one is talking about is how much you really need to save and how poor most modern workplace pension schemes are compared to old DB schemes. Pay attention what % your employer is putting in and if they will match your payments, DON'T JUST PAY THE DEFAULT MINIMUM IT'S NOT ENOUGH , NOT NEAR . If you don't put in more than the minimum you will be worse off then your parents come retirement.

[@Tomm9y]

25% should be the target contibutions particularly for those earning less that £30k.

[@waleolabowale9825]

But where does one get extra money withwcost od livin

[@PeteH0121]

Correct. Bliar's Labour government ruined the pensions industry for hte average worker (MP's excluded of course) The current Labour government now intends attacking the pensions industry again to pay for their harebrained spending sprees. They won't of course stop wasting bilions on gimmegrants. They won't of course stop wasting billions on Ukraine (the most corrupt country in Europe). They won't of course look to save billions by wiping away the cancer of Wokism in the government workplace. They won't of course, change the MPs pension schemes to bring it into line with that of the common (wo)man. They ARE however, coming for YOUR pension.

[@adams7405]

​@Tomm9y True but most on 30k have no chance affording that

[@epylypiuktomlin2102]

Taxation is theft

[@arebrec]

Wouldn't it be amazing if Martin Lewis ran for prime minister. I'd vote for him.

[@LilianScott-dy5nz]

Pension schemes often fall short of providing adequate retirement income, leaving many retirees with insufficient funds to maintain their desired standard of living, due to factors such as low contribution rates, poor investment returns, and increasing life expectancy.

[@MikeHollow-rz5dl]

I'm worried about my own pension, I don't think it'll be enough

[@CarlosAlberto-ii1li]

Always beware of the word SCHEME!

[@f1kwa399]

Made me hungry, I fancy a piece of Swiss roll now

[@louisebyrne5856]

Roaring at this!

[@caspice]

Swiss roll with blueberry jam and whip cream.

[@garybarnes9254]

Love a workplace pension. 34 and 70k in mine already. Compound interest is your friend

[@steve6375]

Check the average annual gain of your pension fund. It is often awful. They invest in expensive funds (cos they get commission), performance is poor and they have high charges. Some funds let you change to a better ETF tracker or self-managed fund. It is well worth finding out (could mean at least +200K more when you retire!).

[@markcoomber8222]

@@steve6375. That may have been the case a long time ago or if you have kept oldstyle plans and not reviewed or switched them. If not, why not ? You’d review your house insurance, or replace your car or phone or spend a huge amount of time researching your holiday in order to get what your want/need. So, why not do the same with your pension? In fact, it should be THE priority since you’ll need to use it to pay for your house insurance, car & holidays after you have stopped working. OR….you could be poor instead. YOU choose.

[@steve6375]

​​@@markcoomber8222ah well, there you go. It's the poor old punter who is expected to become a pension expert and regularly review their pension, when they thought that their pension company, who are the experts, would act in their best interests. The difference between a car insurance policy and a pension is that the pension is for 40 years and the amounts at stake are 100k or more!

[@patmanrick]

​​@@steve6375it's a wrapper not a product! You can invest your pension in whatever you want to EDIT - read the rest of your comment, I see you know this already

[@RosieHarp]

Great advice as always

[@paulstuart551]

My pension has been reduced although my contributions are fully paid. In my late 40's genetic muscular dystrophy kicked in although I continued working several more years. I owned a two bedroom flat in a Victorian house with many stairs so was forced to sell at a loss as it was during the bank crisis. The day after I sold Brown changed interest rates without warning & property went up. I lost most by renting as I could no longer buy so moved in with family for a while (bid mistake). I still have some savings but my pension is reduced for what is left. I have to buy furnishings as I was forced to move when my landlord sold my flat & new furniture & will have to contribute to future care as my condition is progressive. I hope Labour ministers suffer severe karma for what they have done to the vulnerable. The irony is that my grandmother was rich but my mother made no will so her money went to the daughter of her second husband (he had dementia but outlived her by months), my grandmother hated both.

[@qdis662]

But what if I don't like Swiss Rolls? Can I apply the same to Collin the Catapillar even though it's not my birthday until November?? 😥

[@robuk3723]

Im a bit confused. What age do i get my swiss roll?

[@ma-li3935]

In Australia, Superannuation is now payable by employer at 11% of your weekly/fortnightly or monthly salary, but you can add I believe up to $35K (before tax) a year without paying income tax on the extra contributions, this facility has raised the Asset value of the average Australians by retirement to very high levels, some estimates around 2-3 Million at 67year retirement, not including the family home for the average worker.

[@EverydayLife621]

Thank-you that is the best ever explanation I've ever heard (swiss roll). I'm lucky in that I'm in a final salary scheme, but even we can now take some of the tax free sum once we're 55, but continue to work at less than 4 days / week? - I think!

[@boballan1853]

Good assessment, the bit you missed out is you’re not in control and THEY keep changing the rules. I’m out 100%. I started with a final salary, then it was changed to a money purchase, then it was taxable at draw down, then when I was 49 they changed it 55 before you could cash it in. Beware kids, it’s going to get worse🤨

[@Jasperroodog]

It was taxable on drawdown as it went in pre taxed.

[@boballan1853]

@@Jasperroodog The part that really annoys me is that it’s portrayed as if the government is gifting you money. They’re not, you earned all of the money. If they give you a tax-break they are just FINING you less for having a job🤔

[@yeahyeahblah]

It's now 57 from 6th April 2028 affecting people born after 6th April 1971.

[@fredatlas4396]

​​@@boballan1853 Taxes are necessary in a civilised society, in order to pay for the public services that most of us and the our country rely on. And I think it's only fair that higher payed should pay more tax. I do think that the government should give some more money back to 20% tax payers into their pension so they at least have a fighting chance of saving enough money to retire well after a lifetime of work

[@boballan1853]

@@fredatlas4396 The higher paid do pay more. It's a percentage. My point is that I was paying into a pension in good faith from the start and half way through they changed the rules. That is not a civilised way to behave.

[@Lifeintheslowlane-wg3jd]

That is all well and good for people with secure jobs and skill sets tht don't fade with time. So what do the everincreasing class of people do who are on zero hour contracts, or work in the gig economy?

[@curiousinterests9453]

The vast amount of Workplace Pension money can be used by the next Labour Government to finish Big Government projects like HS2. They can give it to the Water companies to sort out the sewage problems. One advantage of Pension Schemes is you are stopped from taking it out allowing Governments to re-allocate it's use. Fortunately for the rich who keep their money off-shore they won't suffer the pain.

[@doglover-t9b]

Cashed mine in i paid a grand in got 750 back complete scam, with now pensions group, worst scam ever is the state pension !

[@LiamR90]

Make people aware of MPAA when talking about drawing pension income.

[@teresaearl5688]

Being frugal means, having choices in life and being able to retire early.❤

[@craigrothwell6144]

After having no life when you were young enough to enjoy things!

[@guyr7351]

@@craigrothwell6144 it doesn’t mean not having anything to enjoy life while younger. It means being careful of where your money is going

[@llamarama8293]

@@craigrothwell6144 Completely disagree, you can still enjoy life *and* be frugal. Being frugal is about choosing the things you want to spend extravagantly on, and then cutting costs on things you don't like. It doesn't mean doing nothing all day - that's being cheap.

[@MinkieWinkle]

@@craigrothwell6144 that mindset is what keeps you poor, thinking you can only have one or the other. a little moderation now, while still enjoying your self. say, having one pint less while on a night out, 1 less take away per month, etc etc. to have a fantastic later life That is called being an adult. or would you prefer to be older weaker, slower, more , and having no choice but to work because you were to busy enjoying your younger years, that now in your older years you are a burden to those around you

[@craigrothwell6144]

@@MinkieWinkle I was a train driver for 30 and retired early years so I am caked up and have never had to worry about money but still say enjoy it while you are young and able, You never know when your time is up or if you will be healthy enough to enjoy it in old age.

[@myah00jordan]

Just discovered your channel with this video -- I was able to think about my situation and I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $90K per year but nothing to show for it yet.

[@mulattodavid]

It’s important to do your own research and consult with a financial advisor before making any investment decisions.

[@ShirlPigram]

I think that is a brilliant idea, I tried managing my stock portfolio by myself and I lost 50% of my savings in a very short period. That prompted me to hire a financial advisor. Since then I have made up to $680K in returns.

[@ShirlPigram]

I have worked with a few financial advisors before now but i ultimately settled for Melissa Jean Talingdan. She is SEC regulated and licensed in US. You can easily look her up.

[@mathematician1234]

All sounds good, but just you try any of this if you left the UK and live outside the EU. All those options reduce to only one option: Withdraw the entire amount as a lump sum, jump into a super-high tax bracket because of it, and pay tens of thousands of pounds in taxes that you would not have to pay if you stayed in the UK and withdrew it slowly over time.

[@garyfardon8841]

not if you cash your pension living in Portugal. The whole lot will be taxed at 8 percent. Kerching.

[@br164]

Pensions are so complex. From someone who has worked in finance for 16 years, I had to concentrate to understand parts of this.

[@SevenEllen]

I'm glad you said that. He's brilliant and knows his stuff but he's very wordy and speaks too fast, I'd much rather he just kept the key points to make it clearer to understand. I listened again with the subtitles on and it helped.

[@iWigglytuff]

@@SevenEllenhe’s explaining a complex system on a morning tv show 😂

[@jivingdodo]

The complexity is sadly, I suspect, intentional to dupe the average person out of claiming their government money. Oh and so that commercial financial firms can make money giving advice. Great that he referred people to the free advice service. How would the average person have time and understanding to engage with this?

[@Jimbo23107]

Actually pensions are very very simple the industry just does its best with jargon , smoke and mirrors to confuse people so they can charge you fortunes for virtually no work

[@aacmove]

The problem is not saving money in a pension, you sign a piece of paper and wait for 40 years. It is what happens when you come to retire and need to know what to do with it. He could have added some information on that. Because most people don't understand annuities or draw down.

[@samlight95]

The House of Lords or the “Upper Chamber” should consist of people like Martin Lewis! A subject matter expert there to advise the elected government and hold them and their policies to account. A person who doesn’t have (at least strong or overt) party political views but does have a view of what is right and wrong based on his specific expertise and a sense of moral fibre! Reform the lords to include more people like this!

[@paulmatthews4293]

I really like that idea, but I am uncertain how we select people for the upper chamber like that.

[@neilmckenzie1989]

Lord Lewis of Money

[@uppity228]

At the moment you can access your Public service pension from 55 going up to 57 in a few years time. Everyone should have a government gateway account so that you can check your National Insurance record and a few other things.

[@Gilly-gx8rt]

Im sure you mean can access your private pension from 55 rising to 57 … state pension is currently 66, rising to 67.

[@taekwanlew]

No, public service pensions can't be accessed at 55. Private pensions can, I accessed mine but can't access my public till 67

[@Thaitanium73]

@@Gilly-gx8rt No, I'm sure they meant Public service pension, as in a Local Government Pension Scheme for people who have worked in the public sector.

[@Thaitanium73]

@@taekwanlew Yes they can, I think you are confusing Public service pensions, as in a Local Government Pension Schemes for people who have worked in the public sector, and The State Pension.

[@T-KRD]

Tell us more about drawdown, are there limits on where to invest it?

[@wakey87]

So if the tax free allowance is (£12,570 per year) That means if I have no other income that is the amount I can take out tax free each year?

[@steve6375]

If you have no other income except a defined contribution pension draw down you can take £16K per year tax free because 25% is £4K and the remaining £12K is below the single person's tax allowance.

[@wakey87]

@@steve6375 Thank you. ❤ [Edit] That is my plan to retire early until state pension age.

[@usefulrandom1855]

@@wakey87 Combine with S&S ISA if you need more. Thats my plan.

[@intothemultiverse1033]

Remember you pay no NIC when you draw your pension.

[@davidthomas-ot4cl]

If you wait until 67 then you'll be getting the state pension so only if you take your private pension before 67 would you get 12,570 tax free.

[@solidaz80]

Legend

[@jonathanburson4994]

If you take money from your pension the annual limit you can carry on paying in is greatly reduced - he didn’t mention that bit

[@DavidM828]

Only if you flexibly access the money. This triggers the money purchase annual allowance. Taking your tax free cash only does not trigger the reduced allowance, only taking your taxable income through flexible drawdown

[@LiamR90]

If you do a net contribution it's actually a 25% top up. The maths is the same as 20% tax relief though. I.e. Put £800 in and it becomes £1,000.

[@davidanderson7138]

then all you hard worked contributions are gone when you die

[@bitcoinenergy1]

@bitcoinenergy1 What about if you throw bitcoin into the mix ? No one who has held bitcoin for the 4 year cycle has ever lost any money. In fact if you price property in bitcoin everything gets cheaper every four years. How ? because bitcoin unlike the pound is fixed in its supply and the purchasing power gets stronger every four years. For example a house you want to buy today will be cheaper in four years in bitcoin terms. This is why all the leading asset managers are buying and holding bitcoin. Even business are adopting bitcoin to gain competitive advantage. Why and How ? Lets say cashback for example. If you were to offer a customer 5% cashback and give it to them in bitcoin instead of pounds the cashback to them would increaes in value in four years. Hence the 5 pounds given to them in bitcoin would probably be worth 15 to twenty pound in four years. Am I selling bitcoin ? No I just teach other entrepreneures how it works. No spamming or emails. Just some food for thought. You can subscribe to my channel if you wish to learn about bitcoin, Thats it. Tony.

[@alanmeasures8337]

So when I retire and get my state pension can l get my private pension tax free or just 25%

[@matthowells6382]

You get 25% tax free and the rest is taxed at your marginal rate as income

[@lawrie3448]

Pre tax salary or pre tax income ? I’ve deferred my SE pension and have a small rental income that will soon drag me into paying tax due to fiscal drag . I’m still paying contributions to my pension scheme - is this tax allowable ?

[@danpalmer7676]

You should ask some of the know alls on here who seem to think it's so simple.

[@bakerbros8742]

I'm already paying into a work based pension and my employer pays in to. If I increase the amount that I am paying does my employer have to increase the amount they put in as well?

[@Brown6988]

No, this will depend on the company policy

[@Thaitanium73]

The minimum workplace contribution is set by law at 8% of earnings, your employer is required to cover 3% but can pay more if they choose, however they are not required to pay over the 3% statutory minimum.

[@wakeywarrior]

Get extra money in the pension, particularly if you are a higher rate taxpayer. Where else can you invest tax free, no CGT, and immediately get 40-45% extra immediately on paying in. And if you have an employer contribution scheme (I’ve never had one) you’d have to be mad not to be maximising that. Note from 2028 you can’t get at it until 57, not 55. Also be aware Labour may hammer pension withdrawals with tax, and also may place back limits on the total fund, it was £1.2m but Conservatives scrapped that.

[@weementaldavy5987]

And if you can understand all that , then you can plait sawdust. By the way , can I use a chocolate swiss roll with white cream or does it have to be the plain sponge with jam and cream, or just cream alone.?

[@TheSilvercue]

It is actually 25% added. In order to make up the gap of 20% tax, the gov have to add 25%. For example, if you earn £100 and are taxed 20% you are left with £80. If you add that £80 to a pension, the tax relief makes it back to £100, which is a 25% increase of the £80. I am baffled why so called experts always get this wrong.

[@Erikkurilla01]

In the 1990s I sold pensions on the strenght that the tax free lump sum would pay off most if not all of the mortgage and leave the investor with a pension for life. Most were over a 40 year term plus, I was not alone.

[@jessicasquire]

The approach of selling pensions with the promise that a tax-free lump sum would pay off mortgages and provide a lifelong pension was common in the 1990s. However, many factors can affect the outcome, including changes in the housing market and interest rates. It's crucial for investors to seek personalized advice and consider diversified financial strategies to ensure long-term financial stability.

[@Lemariecooper]

it's vital for investors to seek personalized advice and adopt diversified financial strategies. Working with a knowledgeable financial adviser is crucial for achieving long-term financial stability and freedom

[@TianaManeO]

@@Lemariecooper Who do you work with?

[@Lemariecooper]

that's whom i work with

[@muzzer8869]

Withdraw it all earliest possible time pay a wedge in tax but spend why your youngish

[@DeeCee-nb6ev]

Just to point out that you only get the 40% tax relief on the proportion of your salary between £50,271 - £125, 140. You only get 20% relief on the sum between £12,570 - £50, 271. If your fortunate to be one of the 12% approx who earn over £125,140 then you get 45% tax relief on earnings over that figure.

[@zortzsborgnine3983]

Second part totally totally wrong. You can still pay £2880 into a pension and get £700 tax relief on top of that. Even if you have no job. You also get tax relief on "100%" of your income upto £60000. (This includes your personal allowance in the equation) If I earn 30k I can match that by putting 24k into a pension and get 6k tax relief....making 30k !

[@DeeCee-nb6ev]

@@zortzsborgnine3983 yes your correct, my bad in that it appears i am saying what the total is someone can pay into a pension. basically trying to point out that anyone in the 40% and above bracket is not getting anything extra on that initial £50,271 that someone below that amount is not getting. Still not sure now if that makes sense … lol

[@spaceboispeed]

Why is there never a mention of higher rate pension tax relief

[@WatchTv-nl7ut]

It works exactly the same. It goes in pre taxed from source most people. And yes higher tax rate employee pay more into their pension because of that. It only cost them effective cost of £60 for each £100 worth. It only get bit more hassle if you have additional contribution with taxed incomes. Then you need to claim the tax relief back via self assessment

[@ping7979]

If you're a higher rate tax payer the extra 20% is not automatically added to your pension contribution. You have to claim it back either in a self assessment or send a letter to HMRC

[@UKGeezer]

Martin explained that in the video, and you don't have to do this if you pay into your pension through salary sacrifice.

[@ping7979]

​@@UKGeezerAt 1:00 he said "if you do it via your workplace that happens automatically". That's incorrect. Then at 2:45 he said "if you're a higher rate tax payer you put in £60 and £160 gets put in". Similarly that's incorrect. He only mentioned claiming the additional 20% back via self assessment if you're self employed. I'm surprised he wasn't clearer as people are losing out on thousands of pounds. Salary sacrifice makes it far easier as you pointed out

[@ynwa3476]

I pay 2k per year into my pension and my employer tops it up by 10k ! No savings account can come close.

[@danpalmer7676]

And the streets of London are paved with gold.

[@craigrothwell6144]

I do not no any poor pensioners, Some of which have never paid a penny into the system!

[@guyr7351]

@@craigrothwell6144 they are in the minority, and you could just if easily said look at these pensioners and their incomes.

[@RosieHarp]

Sorry, I don't believe that. The state pension is based on National Insurance contributions. You need many years of NI credits to qualify. They may get a very reduced state pension

[@Kiwiboy1929]

Don't mind Cat she's just having a seizure 🤣🤣🤣

[@davidwynn6832]

I don’t understand what Lewis is telling people, whether you are working or retired you still paid tax at 20% and higher depending on pension income. The only thing you don’t paid is national insurance. Typically, the state old age pension covers the tax free paid allowance and private pension is taxed as usual like earned income. This means the max you will get is 80 pence per pound to be taxed again at 20% vat and what other taxes to be paid like council tax, fuel tax etc. There’s no free lunch for pensioners just the same as when you were working. The private pensions are very dependent on the countries’ economy so taxing business profits like labour are expected to do will not benefit workers, will damage their pension pots and later retirement prospects. There is no doubt that increasing government spending will lead to higher inflation and interest rates. Long term taxing business more will lead to higher government social spending.

[@phueal]

What he’s telling you is that if you’re still working at 55 you can take the tax-free bit and keep the taxable bit untouched for now. Consider the two scenarios: Let’s say you’re earning £30k at age 55 and could take £10k from your pension; the whole lot will be taxed at 20%. However if you leave it until you’re 58 and not working anymore, and you take £10k from your pension, you are still under the tax-free allowance of £12.5k, and so the entire £10k is tax-free. Basically, if you can afford to not take the money immediately, it might be more tax efficient to take it later.

[@babyfreezer]

You are right, the reason why his explanation won't apply to as many people is because you typically take your pension WHEN you stop working. If you're already working, you most likely don't need extra money. The 2nd option is really if you need the cash to buy a house/car or go on an expensive holiday for example.

[@atnassayshi2505]

What?? Vast majority have small company pension, very small if you changed jobs but enough to make you pay tax when you retire - so even my 80 pence per week for reaching 80 is taxable!!

[@markkenyon8760]

I wish Martin had covered the scrapped LTA and Keir's statement that Labour would bring it back. It is great having your 40 saving plan used as a political football.

[@phillipapel946]

II think they have given up on reintroducing it now as it would be too complex to do.

[@alistairrobinson3865]

Believe Rachel reeves dropped that a few weeks ago Ie won’t be brought back

[@zenstars1148]

I've got an Artic roll and I'm afraid due to global warming nothing will be left when I retire!

[@RosieHarp]

😆

[@beltingtokra]

I wish my employer gave more than the legal minimum. It's pants 😢

[@aacmove]

If you were an employer you would think differently.

[@Thaitanium73]

@@aacmove What does that have to do with anything?

[@aacmove]

@@Thaitanium73 think about it!

[@Thaitanium73]

@@aacmove I don't need to, your comment was completely irrelevant.

[@aacmove]

@@Thaitanium73 Why is it irrelevant? It responds directly to the comment.

[@jamesproctor6359]

Should be nighted, may not apply for all, but he has so many good tips for most

[@RosieHarp]

Knighted

[@ashassets]

Money is a tool to be put in position so it can print more money for you

[@atnassayshi2505]

Not much said about Old people I have paid tax for 20 years on my pension - what was given when working is taken back when you retire.

[@kevinmcauley3847]

You paid 0% tax on the way in, paid 0% tax on the gains, you can control the amount of tax paid on the way out and your estate will pay 0% inheritance tax on it. It’s literally the most tax efficient way to save, and is one of the most generous pension schemes in the world

[@richyc3980]

It isn't what's given is taken back at all. Even if you're a basic rate tax payer when contributing and withdrawing. If on Monday you paid £100 into a pension you would get tax relief increasing it to £125. If on Tuesday you withdrew the £125 you would get 25% of it tax free and pay 20% income tax on the remaining 75%. Essentially your £100 on Monday still gets you £106.25 on Tuesday so it equates to a 6.25% return. That's in one day, now add some growth over 20+ years and you're getting a lot more back out.

[@lin90210]

By the way if you have extra cash also have a private pension on top of your workplace pension. Every 80p you put in the government top up 20p also. On top of that they give you tax relief in your income tax :) P.S. you say you can get into the cash of private pension at the age of 55...one pension company said it has not increased to the age of 57 due to government guidelines...

[@steve6375]

What he doesn't say (can't say) is that most pension schemes are terrible! Even if you are 22 years old they will typically put a lot of your contributions into bonds (which don't even keep up with inflation), with the rest they invest in dozens of funds (which each charge around 1%), the funds are really bad performers (e.g. FTSE) , return typ 4-6% and have high charges, instead of good performers (e.g. USA or even just a global market tracker which has averaged 12% in last 5yrs), they hardly ever tweak the portfolio and they charge hefty fees to 'run' the scheme. So if you contribute say £40 as a standard rate tax payer, the difference between 4% typ. pension scheme, and even just simple a self-invested SIPP at 9% in a global ETF means a difference of over 20K in twenty years. Over 30 years the difference is 100K or more! So check the past performance of your work and private pensions and compare with a SIPP - even the Vanguard 'LifeStrategy Retire at 2045' pension fund returned 14.75% in the last year (avg 9% over 5 years) and you don't even have to manage that yourself.

[@am3777]

Yeh you need private one.

[@paulbrolly5421]

Private pension, good financial advisor and you'll be okay.

[@kk813]

You can change your workplace funds to something else. There's usually one option that resembles a global equities tracker.

[@paulbrolly5421]

@@kk813 , true. I opted out of the NEST scheme and had my workplace lodge into my own personal pension.

[@SevenEllen]

This is why to save like a squirrel all your life, and bank hop. Go from one decent interest percentage to another, chuck money into ISAs when they're good, and move it into Easy Access Accounts when they're not.

[@evilzzzability]

It's deplorable that we use the word "pension" to cover both the national Ponzi scheme and a private DC pension scheme. They have very little in common.

[@patmanrick]

In what way is the state pension a Ponzi? Nobody makes contributions to it specifically and no returns are promised / shown

[@stephenthwaite3115]

Labour are going to change all the pensions rules to raise tax so I’ll look forward to a new Martin discussion on how to avoid them?

[@bob1234881]

And max risk as well as it should bring in higher yields over the next 5-20 years. 😀

[@babyfreezer]

I dont understand how the last bit is not taxable because youre not a "tax payer". Anything you take out of a pension is considered income, so its still taxable over your personal allowance of 12k right?

[@k20ee96]

That's correct. After the tax free 25% lump sum, only the first 12k per year that you withdraw is tax free once you stop working. Amounts above that will be taxed at the usual 20%/40%/45% thresholds. People often think it's all tax free but it's certainly not when withdrawing meaningful amounts.

[@Paul-yh8km]

​​@@k20ee96 If you factor in the state pension you are probably going to be taxed on any income from a personal scheme, whether via annuity or lump sums (excluding the 25% that's tax free).

[@k20ee96]

@@Paul-yh8km good point I hadn't thought of that. You just get mugged from all angles don't you 😔

[@grindle1234]

still dont get it

[@stevewright8204]

Ring fence pensions,this would give the chancellor more money

[@156dave]

I don’t work and still pay 2k a year into pension get tax relief

[@jamesfoo8999]

"pay" no we do. thanks

[@ZackYounguk]

Yeah… but you get taxed on the pension as income at the source of use. If you ever live long enough that is.

[@finglisCave]

Working exponentially harder for currency that is getting exponetially weaker (in purchasing power) is the road to serfdom!

[@farnyone]

Remember the the age limit for taking it goes up from 55yrs to 58 yrs in 2028

[@mp721]

57 yrs

[@rgyhad484]

I didn't know you were taxed on it if you wanted to withdraw it in one go if you're still working 😮

[@WatchTv-nl7ut]

Essentially its an income source, so its subject to tax working or not withdraw all or bit by bit. This is why you need pension and tax advisor to optimise the most effective way to draw money.

[@valeriemaskell3904]

I'm not working just got state pension and only 3000 in work pension can I take it out

[@mcbc4]

So Martin is saying I can take out 25% tax free at age 55. Then right before I retire, get myself onto a lower paying tax band and pay no tax on the rest of my pension? How do I get myself onto a lower paying tax band?

[@TheRoybeasley]

His comments about tax bands rather assume that you move from earning good money (in employment) to getting a relative pittance during retirement (because you're old, and don't need all that much income because you've paid off your mortgage and the kids have grown up and left home). The reality might not reflect this...

[@babyfreezer]

Treat your taxable pension like your salary. Do you want a 12k salary? Then it's tax free because of your personal allowance. Above 12k is 20% and above 50k is 40%.

[@craigrothwell6144]

In 30 years there will be no state pension unless you have spent your life on benefits!

[@ynwa3476]

Those who spend their life of benefits are likely not paying National Insurance contributions. Therefore, they will either have a very small state pension or no state pension and no private pension. Also, of course, there will be pension schemes. We are all paying in now , therefore they must pay out when the time comes. 30 years is a blink of the eye.

[@pauldolman7487]

You talk about what you get in your pension but you dont talk about what is taken away when you start getting your pension. My mum is bombarded with care bills now she hasa pension compared before she had a pension, it makes me think is a pension worth it.

[@peterb8500]

Can get at it until your 57 not 55, come on man Martin keep up!

[@RosieHarp]

It's 55

[@terasci5102]

It is not a benifit, I paid all my life into my uk pension! 15 to 66!

[@philippayne4951]

This lousy government is interfering with people's pensions, this lot have got to go quick as possible.

[@normanpearson8753]

It is ,I'm afraid .

[@philippayne4951]

@@normanpearson8753 Ballshit.

[@faisalmirza9601]

By the time I retire £1000 will be the same as a £100 today

[@markcoomber8222]

Then you need to invest within your pension in a manner that will overcome that inflationary effect, ie a higher proportion in equities….maybe even 100%.

[@Paul-yh8km]

The idea behind the pension schemes is that they grow at a rate that beats inflation.

[@silversteel6312]

Does Martin appear on one program complaining to Government regarding the poor and the cost of living crisis and then appear another program helping retired military to pay less tax? Is he in it for the brand of Martin? Class discuss🤔

[@TazBo-wd2ig]

I’m sorry but he should no longer be called Martin Lewis, it should be Sir Marin Lewis!

[@Paul-yh8km]

Start paying in young, it's those ealy years of investment that will earn the most and will make up the bulk of your pension pot(s).

[@Bournemouthbear]

So can I have my cake (Swiss roll) and eat it too?

[@alangordon3283]

No.

[@BuzzRain]

Excellent. In that case the reckless feckless and workshy who have never paid in shouldn't get a pension then!

[@phil2003ashleigh]

And they’re in laws too ( it’s coming) as refugees they’re going to eradicate everything our fathers and grandparents fought for. THINK ABOUT IT SERIOUSLY. I’m telling you; just don’t work and you’ll be looked after, if you choose to work: emigrate.

[@johnmunro4952]

Glad he pointed out that it's STILL 55. although the pension age has risen ( and will continue to rise) it would need an act of parliament to raise the early retirement age as well. The government wants pension providers to match the retirement age, but if you have an "unqualified right" to take your pension, you can still go at 55

[@yeahyeahblah]

Unless you are born after 6 April 1971 where the Normal Minimum Pension Age (NMPA) is the earliest age most people can start withdrawing money from their personal and workplace pensions has increased from 55 to 57 from 6th April 2028. This coincides with the rise of the state pension age to 67.

[@guyr7351]

There seems to be a ten year link, as in no earlier than ten years before your state pension is due

[@yeahyeahblah]

@@guyr7351 absolutely as my state pension age will probably be 75 (what I'm calculating on) the minimum age will probably be 65. Oh well at least I love my job.

[@SevenEllen]

@@yeahyeahblah Then it's going to rise to 71 in 2046.

[@RaymondMoore-c4g]

As clear as mud,

[@shadowxxxyt9589]

Put it in gold and silver and you will double it…

[@timg1246]

Gold and silver have delivered growth far below the stock market, on average.

[@SevenEllen]

Not necessarily. It depends on what the market's doing, and, if the economy's doing badly, it's more likely to be worth doing, but one should NEVER think of yourself as an ecomony guru. That's how so many have lost their life savings before.

[@chrisstevens8505]

I can see the tax relief on pension payments going before the years out.

[@coderider3022]

Global equity will x2 every 12-14 years (real terms) if you take the 5-6% above inflation number.

[@Brown6988]

You can use your pension to invest in a global equity fund

[@jay-lm4we]

The two Swiss Rolls didn't help to understand the point he was making 🤷

[@davidanderson7138]

So what happens to a pension when you die?, say, compared to a tax free ISA?

[@danpalmer7676]

If you have a spouse a proportion of it goes to them Private/company pensions vary depending on what you agreed at set up.

[@adrianl5899]

Most workplace or private pensions are defined contribution pensions. These are passed on to whoever the deceased had named as their beneficiary. Since pensions sit outside the estate, no inheritance tax is paid and if the deceased was under 75 when they died, no income tax on it is paid by the beneficiary either. Where someone has a defined benefit pension, such as NHS, Civil Service, Teacher, then their specific Scheme's rules will explain matters.

[@paldavi2876]

So put money away for day 30 years . Hopefully you will have a lump sum. ? Do you think Taxes will increase in 30 years or decrease. . !!

[@Leon-lt5gv]

Martin should be chancellor 👌

[@danpalmer7676]

Not in my universe thank you.

[@markwoodward881]

Its an unfair anomaly that 40% tax payers i.e richer people benefit more then 20% tax payers who need it more , it should be more even.

[@mattm7007]

Can someone explain how 3% of £100 is £60?

[@markcoomber8222]

It’s not. I think you misheard something.

[@WJohnson1043]

You get tax rebate when you add money to a pension, but it is also taxed when you take money out. You can take out 25% of the money free of tax within a tax allowance of £1M. Confused? I think you should be. Seems to me that the biggest beneficiaries of the tax rebate are the pension providers, who get larger fees for handling more money.

[@timg1246]

I hope this helps. Sticking with everything being in the 20% tax rate : Putting money in : You pay in £80. The government adds £20. Your account has £100. Taking money out : You withdraw £100, before tax. £25 is tax free. £75 is taxable (at 20% = £15). So, your take home amount is £85, which is £5 more than you put in. Additionally, if this particular pension income is your sole income, you will get, at the current position, £12,570 entirely tax free. So, you could possibly withdraw up to slightly over £16,000 and not pay a penny in income tax. This is exactly what I did from the ages of 55 to 59. So, the total benefit should always be there, but it depends on your circumstances in any given year how beneficial it is. An average year ought to return an investment gain that more than outweighs inflation plus charges. Though this can't be guaranteed.

[@WJohnson1043]

@@timg1246 my point is for every £80 of fees the pension company would have got without the tax rebate, they get £100 with it. That’s 25% more!

[@timg1246]

​@@WJohnson1043But yours till end up with more.

[@Gilly-gx8rt]

@@timg1246sorry please can you explain how you were able to draw £16k tax free? Thanks 🙏

[@timg1246]

​@Gilly-gx8rt You withdraw £16,760 in total from your pension. One quarter of that is tax free. That is £4,190. £12,570 is the lower tax threshold. Below that you pay no income tax. So, the mathematics of it is that you deduct the £4,190 from the £16760 and you get £12,570. So, no actual tax is due. That only holds true if you have no other taxable income. It can be confusing.

[@bowjana8128]

We have the eorst pension in the western world

[@superlative_custard]

hello

[@russellthompson9271]

Wish I wasn't thick. Too complicated.

[@patmanrick]

Key takeaway here is: if you are saving for the long term (i.e. retirement) then it's probably a good idea to out a decent amount of money in your pension. Once you have done so, check what your pension is actually invested in, and (this is not me talking not summarising Martin) ensure that it's invested in a global index fund. If you really want minimal hassle or decision making then go with a Vanguard target date fund (which is basically based on when you expect to retire and does all the allocations for you). Good luck

[@danpalmer7676]

You are not thick buddy.Don't listen to all the 'experts' on here who claim they know everything. It's a very complex situation with state pension,company pensions,ISA, stocks & shares etc. You need to get advice as one mistaken decision could cost you a bundle of money.