When is it too late to plan for retirement?

When is it too late to plan for retirement? In this video, we look at the numbers and pinpoint when it's too late to plan for retirement
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Question - What are your thoughts on the topic discussed today. Leave a comment and have your say.
Disclaimer: None of this is meant to be construed as investment advice, it's for entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.
TIMESTAMPS
Intro - 0:00
Time - 0:14
Contribution Rates - 1:27
Auto-Enrolment - 3:24
Average UK wage - 5:40
When is too late - 8:22
Conclusion - 12:27
About: Peter attempted at asking when is too late to plan for retirement

[@Trevor-iy6db]

I’m 38, so have 10 or so years auto enrolment at 8%. But sadly have the gap prior to this being law. Content like yours educated me to gradually raise my contributions to 21% over the past 2 years. But have plans for further increases. Sadly though, I feel most of the country is sleep walking into a serious pension crisis 😬. Keep up the great work 👍

[@conversationofmoney]

I can’t tell you how true that is. Thanks for watching and commenting

[@rufdymond]

I’m older now just into my 60s - one thing I would urge everyone to look at is the default fund you are often placed into in a work place pension. For me the fund I was in was far too conservative - switching in to a fun of my choice which was more aggressive increased my pension by a massive amount. It may not be something everyone wants to do, but it is worth exploring and getting advice on.

[@jademurray7666]

"Love this topic! Your video was really engaging. As a dyslexic, I found it super helpful how you used the tablet to explain things. It really made sense to me as a visual learner."

[@conversationofmoney]

Thanks for the feedback. Duly noted

[@johnc799]

Excellent video, Peter. Unfortunately I’m in my late 50s and have made some bad investments. Starting almost from scratch again and making sure I max out my ISA allowance. I’m looking to do this for a few years and try to get 5% dividend growth with some growth ETFs as well

[@chqshaitan1]

Great video, i have to say that the sound quality aint of your usual standard, keep up the great work

[@olive216]

This is a really well constructed presentation, well delivered and valuable. Brilliant Peter, thanks.

[@conversationofmoney]

Thanks for watching

[@feliciaflinders]

❤❤ great video well explained 👏 and raising awareness to start now

[@clarenceishmael9615]

Excellent video but quite depressing as i turned 60 in January. 🤦🏽‍♂️ I'm off to Beachy head! 😭

[@conversationofmoney]

Sorry Clarence. I was tried to strike the right balance

[@clarenceishmael9615]

@@conversationofmoney no i appreciate that mate. Keep up the good work! 👍🏾

[@NylainScotland]

Sent to my kids. Bit disheartening for me, I’m single and 50. Not sure what the future look like. Very good simple explanation for this who are baffled by finance jargon. Thank you

[@conversationofmoney]

Thanks for watching

[@mikerophone324]

People often also gloss over that auto enrolment minimums are on qualifying earnings. People on lower salaries (especially those in their 20s) get far less than that 8% overall rate. If you earned 22.2k (37.5h/wk, minimum wage), that 8% is applied to just 16k of that salary. That’s £1280/year, ie 5.8% effectively.

[@conversationofmoney]

Spot on

[@soundslight7754]

Digestible, well done Peter

[@conversationofmoney]

Thank you

[@Norfolkpaul]

Great job on your video 😊putting over half of my paid in my sipp and portfolio and work pension 😊😊

[@conversationofmoney]

Over half is great going mate

[@chriswilliams6613]

It easy to speak about tbese thing with people that can make it. But people on min wage cant keep up

[@conversationofmoney]

Everyone needs to make an effort. Unfortunately the world isn’t a perfect place.

[@issiewizzie]

Goodness in my 50s ... I'm screwed. do have savings however based on the calculations my private pension/savings would not be enough. i guess it's the state pension then ....

[@UKGeezer]

Something's better than nothing though, just keep putting in as much as you can, and what's not mentioned in this video is that there is no reason why you can't carry on investing into your retirement. Many retirees do this to increase their timeframe considerably, but with less risk, say a 60/40 split of bonds/equities.

[@SkeletonDrums1]

Auto enrollment didnt exist in my 20 or 30s, i saved everything i could for housing. The struggle that we have these days in getting onto the housing ladder, prohibites us from considering pensions in the early days of work. Only in my 40s am I making decent inroads into getting a pension pot together.

[@SkeletonDrums1]

Now doing 25% into the workplace pension and 20k into index funds in an ISA each year. Fingers crossed I can sustain that, as I think I'll be ok with those two running side by side. Now I'm trying to plan the most tax efficient way to balance my withdrawals from each pot.

[@MrsHRPufnstuf]

If only my salary was anything like you mention. I am in my 60s and only earn £23000/year. That’s as a qualified nurse working in a hospice which is not NHS funded, so I earn less despite having qualified back in the 80s.

[@MrsHRPufnstuf]

I retire in 5 years and won’t have a full state pension either as I was a stay at home mum bringing up 4 children.

[@user-lr3hp3xu4g]

I started putting in low monthly amounts to my pension when I got my first job out of university. At each change of job and higher salary I put a higher amount in each time and made the most of my employer contribution. Now in my early 40's I have an employer who matches a very healthy percentage auto enrollment each month and I add a moderate amount to a separate private SIPP. I have used the private SIPP to collect my previous employer pensions into one place. I will plan to meet a financial advisor for a one off fee around when I am 50. My goal is to retire at 60. I would have qualified for but am not expecting a state pension. It will be a bonus if it still exists.

[@conversationofmoney]

Planning assuming there is no state pension is a good approach, just to make sure you’re planning for the worse case.

[@user-xu8mt3hw3b]

I think a part of the conservation should be if you get to your 50s and finally paid off a mortgage then saving extra is not so difficult. If your mortgage is £1500 a month you can put this to your pension per month

[@conversationofmoney]

Spot on. The problem is, people are getting on the property ladder later and the mortgage are running well into people 50s and 60s. It feels like everything conspires against us

[@interested8430]

I’m 38 and very lucky that my employer gives 16% contributions, and I put in 14%. 30% contributions and looking at hopefully retiring at 55 🤞🏼 also lucky that I have a personal protection age with my scheme so won’t be affected by the government change for retirement age rise to 57. Road to 1 million… let’s hope the investments don’t crash! So many variables!

[@conversationofmoney]

Wow. 30% contribution is unreal.

[@cleliofs]

I contribute around 50% (9% from my employer and rest as voluntary contributions), basically maxing up my pension annually. I am trying to catch up, I am 43 this year and started on my pension around 3 years ago 😢

[@user-xu8mt3hw3b]

Congratulations

[@conversationofmoney]

@@cleliofslove this. You’re actively aware of it and taking action

[@johnjones7410]

I'm a contractor aged 61 now, on a good paying job last few years, put 100k in a sipp last year using previous years allowances (made 134k for the year) wil put 60k this year and have moved all my small pensions into this sipp, so 200k in just a few years, also have a Scottish widows with profits historic pension I have been paying into since my twenties but cant get until 65, end bonuses etc, my point being I've only woke up to this late in life but I can still amass enough to be ok

[@conversationofmoney]

That’s amazing going, John. How far off are you from stepping back and slowing down?

[@johnjones7410]

@@conversationofmoney looking at going part time from next year until Im 65, work a few months a year,

[@user-xu8mt3hw3b]

Wow congratulations on picking up the pace

[@Norfolkpaul]

Well done 👍

[@MrETHAN1218]

Are you including employer contributions or only employee in the percentages

[@conversationofmoney]

Including employer contributions.

[@akinelejogun841]

Is it possible for a 50 year old to save 30% of salary? This will be extremely difficult

[@Afrinaturality]

Depends on your earnings, lifestyle, commitments and how frugal you are.

[@conversationofmoney]

It’s a struggle if the income levels aren’t there to accommodate. The point is to contribute as much as you can

[@nickdinnen4667]

I’m 50 in that position and it is extremely difficult. Within my group of similar aged friends many of us don’t have generous matching from employers. My solution was to increase my contributions through salary sacrifice with my employer and to also start a side hustle as a limited company and putting all of that money into my Self Invested Pension (SIPP) and not take a salary from the side hustle and pay the minimum corporation tax because all profits went into the pension which is allowed up to the annual pension allowance. It got me to about 35% of my income but it means lots more hours work but got me around some of the limits of my salary.

[@conversationofmoney]

Very creative thinking.