How much money do you need to retire early? | Do More With Your Money

[@jonbradburn4691]

I'm 60 later this year, been retired 5 years best advice I was ever given invest into your pension early.

[@TruePotentialLLP]

Hi Jon, thanks for watching the podcast and for your comment. That is a good start, but it's never too late to start investing into a pension. It you have any questions, please speak to your financial adviser.

[@nicobass1966]

I'm heading towards 58 and have been thinking about retirement for a few year. Anyone with a good head can do your own cash flow modeling. A growth compound calculater, good spread sheet with all costs, read into risk in stocks and shares, max out ISA, salary sacrifice, look at platform fees, effective taxation. FA are exspensive and can chew into your pension pot, some charge a fee and some charge a % of your pension value. Imagine having 500k pension pot and they charge 2% of that per year, that is 10k per year of your pot - that may equate to 6 of your fund if you choose to take 20k a year - undertand fund growth but they will still charge you there fee - remember the bigger the pot the more they earn, it's there living. My advise is take your time, do your homework and try and work things out yourself or help from a friend or family that is £ savey - you will save yourself thousands of £ and have much more in your pot and less in there pockets

[@TruePotentialLLP]

Hi Nick, thank you for taking the time to watch the episode and for your comment. At True Potential we use specialist software for cash flow modelling. Our software can take into account various assumptions to help detail a comprehensive cash flow model for clients. Our ongoing advice charge within our Head Office Advice team is also 0.5% per annum, but this can vary with our Wealth Management Partners.

[@patoises]

@@TruePotentialLLP A "specialist software" is unnecessary for cash flow modeling, as it primarily relies on "assumptions" anyway. Additionally, some financial advisors now offer access to similar tools for a small annual subscription fee, making them more accessible.

[@jasonyoutube2908]

Great video, well facilitated and nice to hear clear, straight talking from all of you. Keep up the good work

[@TruePotentialLLP]

Hi Jason, we're glad you enjoyed the podcast and thank you for your positive feedback!

[@mertonhartshorn5974]

I've decided to retire this year and spend a year on tea and lentils till the state pension kicks in while not drawing my other pension down until later. So I'll have plenty of time to recheck my calculations and risk appetite! From the generation which was mis-sold financial products in our late 20s when starting out, your video sessions are just what we needed back then, and the financial services are now easier to access so no excuse. I tried "FIRE" for a couple of months but it was unworkable with cummuter costs and sick reatives to attend to - if you have a predictable stable lifestyle and can share househld bills it could work, so long as you don't fall out. The digital equivalent of putting loose change in a vault (like pennies in a jar) is good for habit forming, but seeing pension as a monthly outgoing like bills I think is the best route.

[@TruePotentialLLP]

Hi Merton, thanks for your comment. We agree, getting into good habits and setting up regular direct debits over a long-term period can be a great way to build up wealth in retirement.

[@dominic8218]

Good information folks. Well done 👍🏻

[@TruePotentialLLP]

Thanks for your positive feedback Dominic!

[@splottcardiff3993]

Would personally much prefer ‘one-off’ financial advice fees, as opposed to typically 2% - 3% annually of your overall pot. A annual % amount could run into the £1,000’s, if you have a decent pot. Also, I know some people benefit for assets under management, but global low cost index funds with a small platform/product fee suit me perfectly

[@TruePotentialLLP]

Hi, thanks for watching and for your comment. Our advice fees within the Head Office Advice team are 0.5% per annum. This can vary with our Wealth Manger Partners. The ongoing fee allows clients to access to their Financial Adviser whenever they like, and the charge is applied in regular increments across the year to avoid a large reduction in the portfolio value.

[@nightjockey02]

Good video. It should be possible to give ball park figures on the amount required to give a retirement income of; e.g £20k, £30k, £40k etc if wanting to retire at 50, 55, 60, 65. Could this be made available behind the the TP website password barrier? It wouldn't be advice or personal but would help paint a picture of what is achievable.

[@hxjohn]

You need at least 25 times your annual required income I believe That's recommended

[@nightjockey02]

@@hxjohn Nah.. thats too much of a generalisation and doesn't take into account the broad variable of required income and retirement age.

[@andymason7393]

​@@hxjohnpersonally I don't agree with that, FA should be making you 10% growth if you need 25 times change your FA

[@TruePotentialLLP]

Hi Stuart, thanks for your comment! Generally, the pension pot required would be a multiple of 25 of the income required. For example, £20k per year would require a pension fund size of £500k (20k x 25=£500k) This works out at around 4% of your pension pot per year as income (£500k/4% = £20k).

[@oliviapeart7797]

Useful information but too late for me. Will help younger relatives hopefully 🙏🏾

[@TruePotentialLLP]

Hi Olivia, thank you for watching the episode and for your comment. We would recommend speaking to your financial adviser to explore what options are available to you.

[@tancreddehauteville764]

As someone aged 57 my biggest worry is the government moving the state pension age further to the right. This remains a threat, regardless of which party is in power. The state pension is CRITICAL - it MUST continue to prevent people falling into penury, and at 67 the pension age is already much too high. Tories will DEFINITELY abolish the state pension - the plan to eliminate NI means eliminating the state pension. Labour is now 'soft Tory', so they will also be gunning for pensioners, but not as severely.

[@TruePotentialLLP]

Thank you for your comment and for watching the episode. We are hopeful that the state pension continues, and it is very likely that that we will just see increases to state pension age. However, given the uncertainty around this, clients may be better off not solely relying on their state pension, and if possible looking at additional retirement provisions.

[@petermorris3665]

Ha Ha. How wrong you were. Labour been in 5 minutes and have already taken pensioners' heating allowance, released prisoners early, removed the Rwanda deterrent, let in another 90,000 arrivals due to removing upper salary requirement and caved in to militant unions. . Those of us who have experienced numerous Liebour Govs warned you but you youngsters didn't believe us. They'll be going for IHT, pension tax relief and pension IHT exemption next.

[@AG-so4gl]

Geo Arbitrage. Early retired to SE Asia, live very comfortably

[@andymason7393]

The 4% rule is rubbish in my opinion, if your financial advisor can only produce an income of 4% then drop the advisor asap. Also if you adjust for your gov pension you can withdraw additional prior to 67 and reduce withdrawal post 67 and into old age

[@TruePotentialLLP]

Hi Andy, the 4% is not the income the investment produces, but the generally agreed "safe" amount to withdraw as income to have a regular income and not deplete your capital. The return rate would aim to be higher than 4% to account for inflation and fees. Not everyone subscribes to the 4% rule, but it is a useful starting point for discussions with a financial adviser.

[@andymason7393]

@Lookup2Wakeup I feel you must be in a conservative portfolio, the S&p 500 has gone up on average 10% for a significant length of time. However maybe you also would like to leave an inheritance to family, for that I can sort if see why people are concerned about their pot reducing

[@andymason7393]

@Lookup2Wakeup if you have seen 7% annual growth over 37 years why are you limiting yourself to a 4% withdrawal?

[@mimigization]

To my knowledge the data for a safe 4% withdrawal rate was based on US markets and over a 25 year period. Even retiring at 60, your expected life expectancy is in in excess of 25 years. For me sequencing risk is the real danger. Big markets falls in the first few years of retirement is a real killer to your plans.