The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?
@rogerwheelers4322
5 күн бұрын
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
@joshbarney114
5 күн бұрын
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
@FabioOdelega876
5 күн бұрын
This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?
@joshbarney114
5 күн бұрын
Finding financial advisors like *Marisa Michelle Litwinsky* who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
@FabioOdelega876
5 күн бұрын
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
@Riggsnic_co
5 күн бұрын
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
@JacquelinePerrira
5 күн бұрын
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
@Jamessmith-12
5 күн бұрын
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
@kevinmarten
5 күн бұрын
Mind if I ask you to recommend this particular coach you using their service?
@kevinmarten
5 күн бұрын
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
@avinpertab5051
3 күн бұрын
Im 38 and even im sh****g myself about it and i don't even have a fancy lifestyle!
@jablot5054
12 күн бұрын
If you haven't got to pay for rent or mortgage you can live on £1k a month. I semi retired at 50 then fully at 55 with a small pension build up over 17 years. I live the life i want and im very happy.
@Frankweily
5 күн бұрын
Hello, I am due for retirement in two years, I'm a senior citizen but I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $50K per year but nothing to show for it yet.
@Cottoncandyh
5 күн бұрын
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advlsory.
@JesseMayhill
5 күн бұрын
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
@Brightenedrim
5 күн бұрын
I’ve been considering getting one. Can you recommend your advlsor?
@JesseMayhill
5 күн бұрын
I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with Melissa Elise Robinson for years and highly recommend her. Look her up to see if she meets your criteria.
@Brightenedrim
5 күн бұрын
Thank you for the recommendation. I'll send her an email and I hope I'm able to connect with her.
@Monicamonasky-
5 күн бұрын
Recently, I've been pondering retirement. I've also invested $800K on S&P 500 so i could secure my financial future. i need an approach to invest in Coin that will align with my risk tolerance and financial goals
@donovantobs
5 күн бұрын
Yes, you are right. it's been a brisk tailwind for investors in US stocks over the decades but it is still a delicate season now, so I advise you to consider the guidance of a financial advisor.
@rachelonigirl
5 күн бұрын
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
@MickyGlover
5 күн бұрын
How can I reach this advisers of yours? because I'm seeking for a more effective investment approach on my savings?
@rachelonigirl
5 күн бұрын
Her name is. SUNITA CHACHY JOSEPH . Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@MickyGlover
5 күн бұрын
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
@patoises
18 күн бұрын
on the question 1:48 "would you have outlived your money, or would your money have run out before you die" - which is the greatest risk? personally, a 100 year old with no money left in the bank is a much better outcome that dying at 70 with loads of money to spare.
@davem.4003
14 күн бұрын
So at what age do you target running out of money? That is an ideal scenario for some but the age of death is unpredictable for most people, so it's impossible to achieve except by chance.
@davem.4003
14 күн бұрын
I am surprised that no one has commented that the two questions have exactly the same meaning but they are phrased differently. What was intended (I believe) was "will you outlive your money, or will your money outlive you?".
@pistopitpit
12 күн бұрын
@@patoises I disagree. 100 yo with no money left is a life threatening situation. 70 yo with lot of money left after his death is just lost opportunity.
@badass6656
12 күн бұрын
@@pistopitpit I would concur. Living in poverty is one of the worst things I can think of health issues excepted. I would say the retirement pot and spending need to be continuously managed to ensure the retireree does not run out of money ever.
@pistopitpit
12 күн бұрын
@@badass6656 exactly. The world is cruel to an extent that I would risk to say: you have far higher chance of dying if you do not have money. It’s sad really that basic income is not assured. That is why we are all slaves of capitalism and that is why money is power. Power over your own existence, power over your time. Save and invest is the only way out, despite it is not guaranteed.
@SarahJeffy
10 күн бұрын
The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?
@Lucas-t5w4n
10 күн бұрын
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
@Millerj2450
10 күн бұрын
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K
@WillFred-g7g
10 күн бұрын
I really acknowledge your comment, i have been trading stocks for a while now but i have not been able to make much. how do you achieve this feat?
@Millerj2450
10 күн бұрын
I've stuck with ‘’Jessica Lee Horst” for about 9 months now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
@Fred-w7t
10 күн бұрын
Thank you for sharing, I must say, Jessica appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled a call.
@CliveBirse
2 күн бұрын
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
@ThomasChai05
2 күн бұрын
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
@mikegarvey17
2 күн бұрын
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
@mariaguerrero08
2 күн бұрын
@@mikegarvey17Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
@mariaguerrero08
2 күн бұрын
@@mikegarvey17I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
@mikegarvey17
2 күн бұрын
*Gertrude Margaret Quinto* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@PmW-vc6tw
18 күн бұрын
As a widower its great to see single figures talked about
@coderider3022
17 күн бұрын
So are the undateables
@guyr7351
17 күн бұрын
Great to see some sensible illustrations and that a £200K pot plus full state pension means it is manageable. While the government’s keep raising state retirement age (due to costs) it means more people need to focus on their personal Plans either through work pension or a SIPP. The message is time to look after yourself. I was lucky in that my later years were also in my best paying job and I was putting extra contributions into my pension, plus annual bonus money. Although I lost that job at 60 my next job being at 50% pay of previous role my extra payments had taken effect. Moving funds out of the default lifestyle also saw much better returns. Inheritance from parents meant I could boost pension further and invest in a small property getting a boost in income. Made redundant last year but had planned to retire April 24 at age 64, so it was just 5 months earlier than planned. Don’t miss work one bit at all, have enough to do socially and with family and enjoy life being a lot less stressful.
@CastlesMadeOf...
17 күн бұрын
I've never seen this scenario discussed.... You want to retire from full time work at 60 but would be happy to work part time - earning roughly the equivalent of your state pension (so tax free earnings) until you are 67. Then your pension draw-down wouldn't have to be so significant in those 7 years leading up to your 67th. This would make an interesting video and I would imagine lots of us are thinking along the same lines...
@mikesweeney651
15 күн бұрын
This is exactly what I want to do
@davem.4003
14 күн бұрын
Given that you have adequately described the scenario in a less than 30 seconds read, it probably doesn't need a video. I suspect that quite a lot of people do this, Often by dropping down to part-time working in their existing role. It wouldn't have worked for me, so I was glad to retire fully a few years early, partly because I didn't realise how much we had saved, or how much less we'd be spending (in part due to serious but unpredictable illness).
@mrkrotosuk
13 күн бұрын
This is the kind of thing I want to do, I have the bonus of a final salery pension i have paid in to for 29 years :)
@mrkrotosuk
13 күн бұрын
from my understanding you can draw from the private pension 10 years before state?
@davem.4003
11 күн бұрын
@@mrkrotosuk You are correct, under the current rules. The query/suggestion is about how best to bridge the gap to state pension using a combination of continuing part-time employment and pension savings. You may want to do that if either you don't have sufficient personal pension income to meet your needs, or if you enjoy your work and wish to wind down slowly (or perhaps for other reasons).
@Amanda5ycl
18 күн бұрын
if the idea is to build an income stream to use as complement for retirement, or at any given point if needed, then building a dividend growth portfolio always buying adding to it could be a good and peaceful path. On the long run consistency and perseverance could guaranty the desired income stream goal with little worries
@patrica7
18 күн бұрын
the idea is to Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
@Michael25ycl
18 күн бұрын
Well said, with the help of the an investment advi-sor, I diversified my 62K portfolio across many markets and in a matter of months, I was able to produce over 356K in net profit from high dividend yield equities, bonds, and exchange-traded funds (ETFs).
@Keneth94
18 күн бұрын
wow massive gains! my partner recently hinted on going same direction.. what did you invest in, and who is your investment advisr please, if you dont mind me asking? in dire need of asset allocation
@Michael25ycl
18 күн бұрын
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
@Keneth94
18 күн бұрын
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
@dazmurph
16 күн бұрын
Trying to work out how much is nightmare, hence why most people just won't give up work cos of it. Put it this way if you keep worrying you will never have enough, then you will never have enough.
@hannible1002
17 күн бұрын
Me and my Mrs live on €20000 per year. Very comfortable, includes Friday down the bar.
@tancreddehauteville764
16 күн бұрын
€20k?? Which country are you in?
@boyasaka
15 күн бұрын
Me and my Mrs live comfortably on probs less than £ 20 K a year after tax and that includes 2 or 3 holidays abroad
@tancreddehauteville764
15 күн бұрын
@@boyasaka I don't think I could live comfortably on that. For a start, I pay £2,400 a year on council tax.
@toneloc-cz2xi
13 күн бұрын
@@tancreddehauteville764 Probably boomers so a bit thick and all me me me, so prolly leaving out relevant details (ir. they've paid their houdse off
@DavidJarrold-e7j
12 күн бұрын
Only if by comfortable you mean a 2 bed terrace in Bradford, shared ownership of a bike, a Lidl loyalty card and 7 nights self catering in a 2* tower block in Marmaris.
@craigpowell5325
11 күн бұрын
One of the key items you don't touch on is how your spending decreases as your age increases... I am fortunate enough to have a 101 year od grandparent.. believe me, he spends nowhere near his state pension! His needs are simply much much less. He have his car up at 90, stopped travelling abroad at 85, stopped eating anything but Big Soup and the like many years ago. Everyone is different and if we are fortunate enough to reach that age I simply don't want the income I had at 60 if that meant I missed out on some freedom years when I still had the health and mobility.
@ushasundaram1
17 күн бұрын
Thank you for posting this Pete. I know you probably won't see my comment but this is timely for me. As a single person I've been feeling very dispirited and disheartened of late, especially dreading the impending taxes with the new Govt, wondering if I can ever afford to retire. I plan outside of state pension but my occ pension is quite pitiful but luckily I've paid off my mortgage so I've been thinking a lot about saving enough to retire even if I am not confident that it will be enough. Thank you for boosting my confidence with this video. I think I am despairing a little less after watching this.
@MrWhoAmI57
18 күн бұрын
Great video, Would've been good to see numbers from 55/57, the ages of which you can access your pension
@Nosolutionsonlytradeoff5
18 күн бұрын
Agreed! And also to increase the pot to show more variables! There are some of us young ones out here that have had the advantage of finding your advice early and have some big goals as well :). Thanks for the video
@andrewkingdon2000
18 күн бұрын
I intend to switch to part time. I can see now that having worked from 16 and never being unemployed for a single day the shock of leaving work 100% could be too much. I have decided to phase into retirement and in doing so I can start earlier and still live well.
@gavjlewis
18 күн бұрын
@@Nosolutionsonlytradeoff5 TBF if you are young you probably won't be able to access your private pension until 60 (you know moving goalposts). So if you do want to retire earlier best save some in another investment vehicle like an S&S ISA. Remember the LISA is already 60 for retirement purposes.
@chrismantonuk
17 күн бұрын
I’m just a bit confused, do the spending figures include the state pension? For example, you say a single person with £200k at state pension age can spend £20,000 a year. Is this a ~£9000/year draw from investments (so £11k pension + £9k = £20k) or £20k from investments (£31k with pension)?
@guywells9356
17 күн бұрын
@@chrismantonuk I was as confused
@mickhep
16 күн бұрын
Perhaps you could do a video showing as a couple who live till there 85 and spend 40k a year till there 75 and 30k a year after this including the statement pension.As you wont be able to do much foreign travelling etc after 75, particulary if your a male.The best years of retirement are 60-70 spending say 40k per annum then less year after year.You dont want to be the richest couple in the cemetery.
@dabe1971
18 күн бұрын
Thank you Pete, so refreshing to hear someone say it and not scare folk quoting PLSA expected spending figures. The other thing you can't plan for are unexpected events like having a serious heart attack at age 52 as I did in January ! Didn't even know it was happening - I went to hospital on the bus to save parking fees ! 😂 Then 3 weeks into my recovery from a stent procedure my employer announces 250 redundancies they were looking to fill through voluntary applications so I took the money and ran. Now living frugally off the redundancy pay in the hope that it will see me through to 55. You never know what is around the corner folks.
@dabe1971
18 күн бұрын
BTW any video plans or insight into the quirk in the NMPA that means those of us born after 6 April 1971 but before 6 April 1973 will gain access to our Pensions at 55 but - as per current legislation - we will then LOSE access in April 2028 as we won't have turned 57 ?!!!
@AgileSnowWeasel
18 күн бұрын
Those bloody figures! I see some people say the Which? figures are far more realistic. Take care of yourself, I'm on myriad tablets to try and avoid that happening.
@tev9437
18 күн бұрын
Planning for unexpected events such as yours is entirely possible. You just have to set up policies such as income protection, critical illness cover or life cover. These policies should always be used as part of any financial plan so that if the worst happens you/your family have the money you/ they need.
@NekonataVirino
17 күн бұрын
One in 10 failure is actually not acceptable - while 100% certainty is in fact an impossibility - i would not accept more than a 5% failure rate and 2.5% is where i actually want to be.
@AgileSnowWeasel
17 күн бұрын
@@NekonataVirino Isn't the idea that you would be flexible given the circumstances. Most failures occur with a market failure at the beginning of retirement (especially in any time before state pension age), if you have a plan for that (draw out less, work another two years, etc) most failure cases can be avoided. If you also take likelihood of death by age into account against the success rate at that age the risk goes down further.
@paulanderson7338
17 күн бұрын
The fact that there are so many over 60's in a sound financial position, eg, savings or portfolios £250,000.00 and over, means they have been financially astute, they will have very little or no debt, they will have private pensions as well as the state pension, and most important, their spending habits and attitude to being prudent won't change. They will die financially secure, we are in such a position, running out of years and no desire to spend frivolously, and therein lies the conundrum, how to prevent the state or care homes taking most of it?
@nickcarvell8635
6 күн бұрын
i am exactly in that position, i’m retired and i get £2,600 a month net. outgoings (i pay council tax insurance etc in one go) are about £650. Leaves me £2k. i dont spend lots as i live alone as a widower. I save well over £1000 a month, adding to my £55k in the bank i don’t know what to do with. I do get disability benefits as im also paraplegic of 42 years but worked hard my entire life. i just realised how boring i am….
@Noneofyourbusiness99999
17 күн бұрын
1) the future existence of the state pension is in doubt; 2) inflation data is an inaccurate amalgam of various types of spend which have little relevance to day to day spending; 3) real world inflation data for said day to day spend is order of magnitudes higher than the official figure; 4) the inflationary projections for that data is massively uncertain in the future - thus your purchasing power is likely to diminish massively 5) thus assuming a 4% inflation rate is nonsense when baked beans have increased 75% in a single year
@TheLeonPrior
4 күн бұрын
Buy less beans
@Noneofyourbusiness99999
4 күн бұрын
@@TheLeonPrior good point
@watchalot919
15 күн бұрын
I retired at 57 and my wife 56, I am now 66 and claiming my private and state pension. My wife gets her smaller pensions later this year. We were partly able to do this by moving to a cheaper area, whilst having the advantage of being near the coast. Our total wealth at 57/56 was about £320k, but at the end of this year when we have all our pensions in place we will still have £160k in savings. We run two nice cars and have two foreign holidays a year, as well as belonging to a golf club and a gym. This has been made possible through careful budgeting, planning, and a small amount of investing. The point is if you don't blow all your money on your grown up family and are prepared to move you can retire on relatively little money
@TheInnerSession
14 күн бұрын
160k left and only 66? are you not going to run out of money? maybe i read that wrong. You still have all your pension money and that 160k is to do whatever you want with as its technically not even needed for you to live well.
@watchalot919
14 күн бұрын
@@TheInnerSession Our joint pensions amount to approx about £35k a year after tax, and we have savings of £160. We live on about £30k a year, so plenty really
@br5380
13 күн бұрын
do you really need 2 cars, surely just 1 and then occasional taxis etc would be far cheaper
@watchalot919
13 күн бұрын
@@br5380 I think you're missing the point, I am not short of money and believe you don't need as much money to retire as you may think. As it happens though we did try and just have one car, but because of our social lives it didn't work out. In Fact, at one stage we also had a vintage car as well. I live on the east coast of Lincolnshire, and any form of public transport is a no no
@TheInnerSession
13 күн бұрын
@@watchalot919 i live in lincolnshire too lols. and people are just reading your comment wrong(including me) i intiially though tyou meant you only had 160k left of your pension and savings lol. but nah your loaded..
@AndySmartInvesting
18 күн бұрын
Fantastic video, Pete! 🙌 I really hope a younger audience gets to see this, as it’s incredibly valuable to learn these lessons early on. I hear so many of my peers worrying they’ll never be able to retire with their current financial situation, but your perspective brings a lot of hope and practical advice. Thanks for sharing this, more people need to hear it!
@davem.4003
14 күн бұрын
Fifteen years ago, I used to think the same way (that I would never be able to retire before state pension age) but here I am, retired a few years early and having proved that the last ten years can make a big difference, although the previous ten years getting out of debt also helped me to economise, so you just convert those debt repayments into pension investments once the debt is payed down.
@nikki_jp4216
15 күн бұрын
The day I retired I woke up with a jolt worrying if we would have enough. Reality is we probably could have retired a few years earlier, or even much earlier. But my last job wAs the best time of my career...but careful planning and getting money into cheap global index trackers seems key!
@arooogaa
7 күн бұрын
how much did you retire with?
@andypandy9931
18 күн бұрын
Pete, interesting thoughts. Unfortunately we don't know what the new government has in store for us. There seems to be a view that they have an eye on our pension savings. I have retired and receive the state pension but have left my DC pension in place, I have concerns that they will abolish the 25% tax free lump sum.
@AgileSnowWeasel
18 күн бұрын
I think it more likely they will try to limit the tax relief on contributions, although the exact form is unknown. I hope there will still be some allowance at full rate relief, but £60k is incredibly generous when comparing with peer nations. This is most likely to raise tax income in the short term. I wouldn't rule out dropping the tax free sum to 20% but people have plans around receiving this and major changes late in life cannot be adjusted for, so would not be sensible.
@ChromeAngel1000
17 күн бұрын
This is so helpful for those with small pots and limited time to accumulate big numbers, thank you!
@steve1965
10 күн бұрын
Excellent video Pete, and along the same lines as I have been calculating. The problem and fear that I (and I suspect many others watching this video) have is what our new government are going to do to state pension, given their seeming strategy of taking money off people who work/save hard and giving it to those that don't.
@RetirementVille
17 күн бұрын
THE BIG ASSUMPTION...that current rules for drawing pensions remain static. They won't. They can't. Successive governments over decades have ingored the obvious economics that underpin the pensions economics. It'll be tough for our kids unless we help them financially and if we don't educate and prepare them sufficiently. Well done for continuing to champion the pension education cause, Pete - great job as usual.
@coderider3022
17 күн бұрын
On,y need 1 Tory gov before I retire to undo labours changes.
@pauljones5403
18 күн бұрын
Always very informative videos Pete, I’d like to see more content on retirement at 55-58 age bracket, while I appreciate it’s life style and wealth based, I’d like to see your views on same, allowing for a mixture of couples having ISA’s / Cash and pensions pots able to draw down for the age bracket as above. I totally appreciate it’s down to individual’s life style … I’m dreading working to 65 + ..
@NomadJRG
18 күн бұрын
Anyone under 40 I would suggest you don't factor in state pension at all. Otherwise good advice!
@Equitybonds24
18 күн бұрын
Why?
@carlyndolphin
18 күн бұрын
@@Equitybonds24government pension might not exist
@jimbocho660
18 күн бұрын
@@Equitybonds24 Because they're going to means test it or even phase it out. So don't rely on it.
@Equitybonds24
18 күн бұрын
@@jimbocho660 how do you know that for sure?
@stewartmacdonald601
18 күн бұрын
@@Equitybonds24Of course nobody knows for sure. But given the state of the country now, the widening birth gap, and rising inequality, there is a fair chance that pensions will be unaffordable in the future on a universal basis. So might be worth planning for that now.
@KeithBage
17 күн бұрын
Any chance of a video that shows someone with both a pension pot available for drawdown and final salary pensions and discuss retiring early options of 1. Taking reduced final salary schemes early and retaining drawdown pot, 2. Exhausting drawdown pot to get to 65 when the final salary can be taken at 100%.
@kcseabass4454
14 күн бұрын
Labour will means test pensions. I intend to pull my 25%, max ISA’s until that runs out and claim state pension in 6 years. I do not want to pay any more tax to the State, they’ve bled me dry for years. I can live frugally as I get older, especially as my HLE (healthy life expectancy) could be only 64 as a man (69 for a woman). If they can get at it, they’ll tax it!
@br5380
13 күн бұрын
you don't want to pay tax but you'll expect to be able to use all the public services the rest of us pay for! #entitled
@kcseabass4454
13 күн бұрын
@@br5380 of course I will, I've paid for them handsomely! I've also paid for private health care, relieving my burden on the NHS further and paid the BIK on that! I've spent my working life paying taxes independently and through my businesses, I do not want to continue paying tax again on money I've already paid tax on.
@adrianl5899
18 күн бұрын
Thanks, Pete. I think reinforcing the inportance of our unique situations (for my wife and I it's mostly an age gap one) really helps viewers. Best wishes.
@jansher9
17 күн бұрын
Situation is much more rosy than presented as it assumes constant expenditure which will likely decline substantially 75yrs+
@ETFAnalyzer
15 күн бұрын
Pete, love your videos, long time watcher. Could I suggest that anytime you mention a number (age/money), to put them on screen as well? It would be a lot easier to follow. Thank. you
@MeaningfulMoney
13 күн бұрын
Noted, thank you 👍🏻
@ETFAnalyzer
11 күн бұрын
@@MeaningfulMoney Thanks Pete
@william-fla-321
16 күн бұрын
I’m going to manage my own retirement account. My plan is five years of spending money out of the market, 70 percent in VTI, 30 percent in a total bond fund.
@Medinilla819
14 күн бұрын
Which total bond fund if you don’t mind my asking? I was thinking of doing something similar
@hooksforestchin
18 күн бұрын
Good video and courses and software are well worth it for anyone considering. Elephant in room, as ever, is the state pension. It's been looking unaffordable for a while and I wait to see what the budget announces but I prefer to plan without it and it'll be a nice bonus if still around and not means tested
@Thaitanium73
18 күн бұрын
Looking unaffordable according to who? You believe the spin certain establishments have been pushing over the years. The truth is that the UK State Pension is absolutely affordable to the Government. The UK devotes a smaller percentage of GDP to State Pensions and other pensioner benefits than almost every advanced economy globally. You can find out the information online in the Parliament Research Briefings Library. As an example, all of the following countries spend more of their GDP (many over double) on State Pensions or Pensioner Benefits than the United Kingdom does: Costa Rica Germany France Japan Iceland Spain Finland Luxembourg Portugal Ireland Italy Estonia Austria Belgium Greece Slovenia Latvia Lithuania Czech Republic Hungary Poland Slovak Republic Denmark New Zealand Sweden United States Norway Turkey Korea
@TheFlaneur-up1ft
18 күн бұрын
My first port of call was to invest in how much you can reduce your utility bills. This for me saved an astonishing equivalent to £100k in a pension pot. It’s easy to do, but you need to think carefully on how to achieve that result.
@mangaikannan2330
17 күн бұрын
Other than solar panels, how else can we reduce bills?
@TheFlaneur-up1ft
17 күн бұрын
@@mangaikannan2330 You don’t actually need Solar panels but it does help. If you look at your electric use, along with what tariff you are on that’s the first thing to sort out. You will need to invest to maximise any savings, so please bare this in mind. It’s an investment to your future. If you can afford battery storage this is the best way to reduce your electricity bill. Fill the batteries up over night on low rate, then use the power stored for the time you are at home in the daytime. Also look at when you are using big energy drawing appliances such as Washing machines and have those to work over night and not the daytime. This way of using electricity becomes the norm after a while and you really will see a huge difference to your bill. You would need to research the batteries option as nit all batteries are the same, nor are the inverters. You do need an inverter that’s around a 5kw output to stop you using grid electric when the batteries are being used. Most are only 3Kw rated. It’s a bit of a mine field, so search out a good well recommended company that know their onions are will help you decide. Again it will need investment so the other things to look at is an EV rather than petrol or diesel. I drive a ridiculous amount of miles as I live rural Devon. My little EV costs nothing to run or to service, and it does almost 250 miles per charge. The bill to run my home and the car for a full month is £17 for electricity and £20 standing charge, which is a rip off. This alone saves me around £4k per year in fuel and servicing. The other thing you can look at is to use rain water to flush your toilets. This would save you a small fortune. 2/3 if the water charge is for sewerage, if you cut that out you will immediately change your bill downwards. These are just a few things I have done and I’m saving enough per year that’s equivalent to over a £100k pension pot. It may not suit everyone and you cut your cloth as they say. Second hand EVs have never ever been so cheap, so anyone who argues otherwise are not living in the real world. Hope this helps a little
@mangaikannan2330
14 күн бұрын
@@TheFlaneur-up1ft thank you 👍👍
@hometechUK
18 күн бұрын
Thank you, i was supprised a single person retiring at 60 could get £16k for the rest of their lifes with £200k, unless they live to 100, that much more than i thought.
@michaeljohnston6811
18 күн бұрын
Note that most of that will be from the UK State Pension of around £11,500 from 67 which he stated at the start he had assumed full entitlement to which should be correct if you worked fairly constantly in the UK from age 20-60.. Only £5k of your income is coming from the £200k after 67 as you will have used £16k per annum of it between 60 and 67. I am unclear on the tax impacts factored into his scenarios but tax should be fairly minimal at that low income as the Personal Allowance is £12,570 currently (2024-25 tax year).
@porschecarreras992cabriole8
17 күн бұрын
@@michaeljohnston6811 that’s why state pension is a life saver. I still have 12 years to be 67 and I hope by then the state pension will be at least £15-16k and still available
@denisedeakins4828
17 күн бұрын
@@michaeljohnston6811 yes i did wonder how he arrived at this figure, thanks for the explanation
@denisedeakins4828
17 күн бұрын
@hometechUK ..unfortunately that isn't enough by itself over 25 years it would equal to £8000 per year from age 60 without a state pension (£200K divided by 25 years) once reaching age 67 you would get the state pension too to top this up to a more livable income
@user-bg9em7ch6k
16 күн бұрын
@@denisedeakins4828that assumes no interest at all…
@mortelski5814
18 күн бұрын
The recent inflation shock has meant, while my net worth has increased by 10% since 2021, the equivalent spending power of my assets has actually dropped by about 14%. These extreme events are pretty scary for the longevity of a portfolio. 😮
@sid35gb
18 күн бұрын
Equity’s beat inflation overtime. That’s why you invest in them. An example of this is the inflation adjusted return of say the S&P 500 is 4% on average when the no adjusted return is closer to 10% per year.
@mortelski5814
17 күн бұрын
@@sid35gb if only that was likely to happen over the next couple of decades. 🤞
@dontuno
14 күн бұрын
Strewth Pete, just look at how busy the bots have been! Good advice, and I think many people overestimate their cash needs in retirement. I certainly did and here I am at 70 years not having touched my very large pension fund and simply bolstering my state pension with saved cash and living very comfortably at the same time.
@MeaningfulMoney
13 күн бұрын
I hate the bots, but it’s so hard to catch them all. As the channel gets bigger it’ll become impossible!
@mattmurdoch4345
18 күн бұрын
Pete is there a minimum amount of money you need to make it worth getting professional advice from someone like yourself?
@anthonyrobinson-ukcrapslov102
5 күн бұрын
Great video, thank you it’s help me in my 40’s
@Marco-w2l
17 күн бұрын
I saw one of your posts a few weeks ago and started digging around in my safe and drawers. I have a defined benefit scheme with additional AVC's. I 'forgot' that I had 2 years stakeholder pension from a stop-gap job I did 10 years ago - GBP 80K. Now 58 and semi-retired doing my own thing and frantically arranging 25% tax free cash sum plus the remainder GBP 60K as a fixed term annuity to take all tax free within my personal allowance. Won't need to touch my defined benefit scheme until 65 - again maximising tax free cash before shitty Labour mess up state pension at 67.
@guyr7351
17 күн бұрын
The Tories had set the rise to 67 and proposals to 68. How on earth they think people in physical jobs will be able to do the work at that age I have no idea. It seems to me politicians forget not everyone is office based, lower incomes but in physically hard environments who don’t earn the funds to get a good defined contribution pot. MP’s of course get a very tasty defined benefit scheme based on their MP wages and while they can pay high amounts in the rewards for enhanced pension make it sensible eg A large pension for being an MP for 12 years
@DarrenMansell
9 күн бұрын
Is downsizing property a valid route to bolstering funds? Say if you have £500k equity in a house and move to a smaller house for £300k, does adding that £200k to a pension or high interest savings account work ok? Is this what most people do anyway?
@pataleno
18 күн бұрын
Depending on the budget and tax relief of pensions. I’ll look to switch investments back into ISA and spend tax free before retirement and leave my pension which potentially will be means tested in future as low as possible.
@superduper9357
17 күн бұрын
Looking at the figures this is basically just the 4% rule, once you deduct the state pension
@leighgoodwin1726
18 күн бұрын
Nice video. I’d suggest slowing down a little and explaining more the assumptions behind your projections. Finally, some of us have kids that we need to fund through education and we wish to leave them an inheritance. Please explain how we should incorporate these issues
@jkly495
18 күн бұрын
Thanks Pete for your great content
@petercoombes2416
16 күн бұрын
Excellent video. A real can of worms with so many different variables for specific individuals. It is amazing to me how many retired couples are living reasonably comfortable lives and have never worked out how much their income would be reduced if one of them dies. Final salary pensions may be reduced by half if they opted for widows pension. They would lose a state pension. It can really make a huge difference. One partner may also be receiving a state allowance eg DLA and this would stop. The financial situation of the partner left could radically change.
@JROC2112
14 күн бұрын
Thanks for the help. None of this worked. I have an old fire stick that works on both TVs with no problem. Very frustrating. But again thanks for the help.
@ianjames3078
14 күн бұрын
Despite having multiple DB pensions between us we’ve been trying to build some flexibility into our futures via SIPPs. Tricky to know what’s for the best ie. Early retirement/lump sums etc of deferred DB pensions.
@weightlossresultscoach7082
16 күн бұрын
Hope you do an analysis on Reeve's budget. The mutterings don't look good for those trying to do the right thing pension wise.
@MeaningfulMoney
15 күн бұрын
Sure will. Watch this space!
@kite9039
17 күн бұрын
But will the government change the rules and not give you the state pension if you saved your money?
@anonnymous4684
9 күн бұрын
No one knows. I think it's more likely that the government will raise the retirement age again first which is largely uncontroversial. If they were to means-test the state pension then I'd be surprised if it wasn't phased n over many, many years to give people plenty of time to plan ahead. Anything less than that would be political suicide for whichever party implemented such a policy.
@alexm7310
18 күн бұрын
I need to retire. Why am I still working - what's wrong with me!?
@Mikey_NoCap
18 күн бұрын
Do it! I just retired in April age 54 (now 55).
@alexm7310
18 күн бұрын
@@Mikey_NoCap what do you do with yourself all day!? 😊
@Mikey_NoCap
18 күн бұрын
@@alexm7310 surprisingly I fill my days really well at the moment. Golf, gardening and then all those chores that I would normally have to cram at the weekend, so at weekend we get to do some family stuff. Also been on 3 holidays with 3 more booked before end of year. Mrs retires next year so some longer travel plans ahead. I worked from age 16 at same PLC so the well was trying dry having done 38 years there. Not missed work at all so far which is a bit of a surprise.
@maximuscomfort
18 күн бұрын
@@alexm7310 humans gatta keep moving if you spent your working life behind a desk meeting and greeting. The real working stiffs need to recover from it 😁
@johnporcella2375
18 күн бұрын
Why do you "need" to retire? Perhaps you enjoy the social part of the job, or the salary is good, or you have not built up enough for your retirement? Or maybe you really enjoy working or fear retirement! Unless you have no other choice, keepl working, maybe go down to part-time hours, as retirement can be very long.
@AG-so4gl
18 күн бұрын
Go where your money works hardest. I retired at 55 to Asia, live very comfortably on 2-2.5k a month
@mutton_man
18 күн бұрын
Where in Asia?
@richardattridge3182
17 күн бұрын
@@mutton_manI’d say Thailand at a guess.
@CaboloNero
17 күн бұрын
Nobody wants to live there that’s why
@richardattridge3182
17 күн бұрын
@@CaboloNeroSays who?
@jakespeed6515
17 күн бұрын
Thailand is great, Cambodia is even cheaper, but Thailand has best food in the world ❤️ Chiang Mai for the Mae Hon Son Loop 🔁 🏍
@stacyburnett2809
15 күн бұрын
Excellent Video and excellent clarity and easy to understand- thank you
@jakewelford
11 күн бұрын
I would love a video on investing in rental property (HMOs) Vs Sipp investing as not sure what would be better long term.
@adp3965
18 күн бұрын
How much do people that have retired in early 50s have in their pension pot and ISA to bridge the gap and what income do they draw/what pension do they anticipate?
@brefnejowers9747
18 күн бұрын
Thank you Pete, when I saw Single at 60 with those more realistic (for me) figures I was delighted 🎉 Sounds about right - a couple of pensions plus ISAs should see me right with frugal spending - I'm cheap to run 😅
@Monicamonasky-
5 күн бұрын
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
@benreese2829
18 күн бұрын
Numbers look good to me Pete. Great advice as always. Cheers.
@MrPalaad
15 күн бұрын
Annuities and pension plans are the answer forthe common man. Been doing it retired for 2 years now living on the Dave Ramsey envelope system until I take full S.S. next april. Life sucks retired now.
@xFrenzi
18 күн бұрын
Thanks for the continuous update! I am super excited about how I got retired earning more income and stop depending on the government. My family are happy once again and I can now afford anything for my family even with my Retirement. consistently earning $25k weekly, has been life changing after so much struggles.
@jonroberts2820
18 күн бұрын
Hi Pete. Great content as always but would appreciate if you could specific as to whether this spending includes the tax liability? I.e is this pre or post tax?
@richarddulieu1829
17 күн бұрын
Hi Pete, another informative video, a quick question, my 25% tax free lump sum is due to be paid early Nov 24, do you think in the budget they could change the rules on this, which would effect how much I would receive due to tax changes? I think you previously said that it would need an act of parliament, therefore would take a while to implement.
@workinprogresssince1974
16 күн бұрын
Given the way politics is at the moment and if you are retiring long into the future, the state pension is looking less and less likely to be dependable. My hope is that I don't live too long, and am healthy enough to keep on running my side hustles so I just keep on working. Theoretically I have planned to retire at 70 but I can't imagine not working in the way I do now, self employed with multiple side hustles, until the day I drop dead. Combining that work with whatever the state pension looks like, coupled with my SIPP and S&S ISA, both of which will be small because I started saving way too late because I am on a small income, means I may just scrape through without dying from starvation or a lack of heating in winter. At any rate, my pension predictions as they are now, mean I may have more income than I do now but heavens knows what 20 years into the future will look like.
@scotchegg6422
18 күн бұрын
Next video idea - how about what should your retirement fund consist of, what ratio. So pension should not be the only source of retirement income; ISA’s, savings etc……but what ratio of each? 70% pension + 20% S&S isa + 10% cash savings?
@AgileSnowWeasel
18 күн бұрын
That depends on the age you retire surely? ISAs are a bridge to when you can get your pension for the FIRE folk, or they are an alternative if your pension pot is going to hit 1.5m or so (higher tax rate in drawdown). You certainly need an emergency fund that can also act as a cash buffer against market downturns if your pension is still mostly equities.
@guyr7351
17 күн бұрын
I’m retired don’t have an ISA yet as made payments into Morgan’s pension fund a priority. Where I had a lump sum so was going to invest into ISA a major house issue meant the money had to be spent rather than add to mortgage ( I was 62) my mortgage scheduled to run to 2034, I retired this year. Pension plans always included covering the mortgage.
@scotchegg6422
17 күн бұрын
@@guyr7351 I’ll be mortgage free 5 years before planned retirement (aged 58)
@GlitGlit
18 күн бұрын
Hi Pete, can you provide figures for those who want to retire early as in 45 or 50 years old. 60 years is not that early and doesn't align to the folks following FIRE
@slayerrocks2
18 күн бұрын
As you can't access your pension until 57, those figures are only relevant to yourself. Work out your pension target from 57 and then your desired income for the preceding years.
@GlitGlit
16 күн бұрын
It's incorrect that you can only access your pension at 57. This is a widely misunderstood figure in the UK and even the financial gurus don't understand the facts. Age of access to your pension depends on your provider. If you request 55 as your age to access pension funds and the provider has protected retirement age then 55 is the age of access. This a protected and regardless of what government changes come into play in 2028 this remains protected. Pete the figures would be good if you could show at 45, 47, 50, 55. These are the early retirement years most FIRE folk relate too.....but your figures are always for 60 or 65 years and above. Hope you can address on a future video.
@ricke6854
17 күн бұрын
Are these required savings amounts before or after tax figures ? Because you may have large capital gains taxes once you withdraw from various funds.
@lollylaunder
18 күн бұрын
Very informative and hello Pete from just up the road in Lanner
@UKGeezer
11 күн бұрын
The future of the state pension is probably more uncertain than stocks atm.
@paulwilkinson5656
18 күн бұрын
You've put my mind to rest. We can live comfortably on £17k per year. We could've retired years ago. Thanks
@karlpennington72
14 күн бұрын
I retired 12 years early with 100k I've just reached pension age .it was the best thing I did .I lived frugally but still managed a weekend break every year it got easier as I went on 😊
@alecdurbaville6355
17 күн бұрын
Can’t have plans anymore. I planned on retiring early in 2-3 years time, which requires a considerable pot. I’ve made many many sacrifices for a very long time for that pot and have taken considerable risk. In a few weeks time Rachel Theives is very likely to steal a large chunk of that pot and make various other changes meaning no retirement, ever. It’s already being bandied about about limiting ISAs to 100k, which is ludicrous but why? To stop people accruing chunks of money they can access to retire on earlier than 10 years before the national retirement age. Next keep raising the pension age, which means people don’t be able to access their own pension until much later in life. Then fix the lower threshold, meaning that while the state pension won’t necc. Be gotten rid of just yet, it will become wort less and taxed more over time. Get rid of the triple lock (I actually agree, it was unsustainable). Then they’re talking about getting rid of the tax free 25% (whattt??? I dumped everything into a pension and locked it away predominantly for that and now you’re going “nah, ha-ha), and they’re also talking about getting rid of tax relief when you pay in, if that’s get rid of the 40% relief and make it a flat 30% relief that’s more fair but I suspect if they make it 30% across the board they will 100% get rid of the lump sum. On top of that everyone thinks they’re sitting pretty right now, S&P is through the roof and so are World funds because they’re all invested in the same stuff, predominantly 5 companies which are in a bubble. Everything else is in recession and when that bubble pops kiss 40% of your pot bye bye. So govt thievery and duplicity plus huge global financial issues plus did I mention we’re at the brink of WW3? You’re not retiring anytime soon with a £220k pot. Just as the govt wants ‘too many economically inactive’ I.e not working which DOES include all the retired.
@100mountaingoat
13 күн бұрын
many of these "plans" you talk about have been touted for many years ahead of government budget announcements (often by so-called "think tanks") and we hear the same scare stories every time. keep calm and carry on ....
@issyportman3317
17 күн бұрын
Be interesting to see your thoughts when labour attack IHT, pension pots and CGT!
@guyr7351
17 күн бұрын
I’m sure we will all be posting our views when details come out, Labour need to be very careful as they could find themselves quickly voted out if they are seen as punishing everyone and especially lower to middle earners. Don’t forget that due to auto enrollment millions are in work pensions with the aim of this adding to their state pension. Many workers will see a modest DC pot having only been in a works pension 20 years or so and the tax free sum forms a big part of their retirement plans. I think they may limit it to £200K and maybe drop the level to 20% but they need to be very careful
@Ken_H_
17 күн бұрын
Very interesting, just did the calcs on a couple of the examples which come out at just above 4% withdrawal ... whilst nothing is guaranteed that does seem a very good rule!
@guyr7351
17 күн бұрын
Often that rule is used as it allows the capital fund to be almost untouched due to the annual gains the fund makes. This means at age 90 pot is almost untouched which to me seems mad. The pension is meant to provide for you not to pass onto kids ( or leave a larger amount for fund managers to get 1% fees on) My plans are at 85 I have a much more modest pot left but my expenditure should be greatly reduced less holidays etc
@shellyperera2010
17 күн бұрын
@@guyr7351everyone has different goals. Ours is to leave as much as possible to the children so we'd be very pleased if our pension pot was the same or higher when we die.
@Mikey_NoCap
18 күн бұрын
Thanks Pete. Great vid, you may be very busy soon if Labour take a swing at state pension in the budget. Whilst I have just retired early luckily with a very healthy pot that can withstand a government raid on state pensions, feeling a bit miffed if they decide to take away state pensions from those who have been diligent and built individual wealth over time with the sacrifices that takes. Who knows maybe they won’t go that far, but we are certainly seeing a direction of travel that could well push us to a means tested state pension. Would love to get you insider thoughts.
@johntheaccountant5594
17 күн бұрын
Your vlogs normally make out that you need £1Million using the 4% rule give £40,000 per annum With a state pension of £980 per month => £11,760 per annum. I would struggle to spend £51,760 per annum or £1,000 per week with a mortgage free freehold house. In fact I would struggle to spend £350 a week.
@gavind9487
17 күн бұрын
Me too. My wife on the other hand....
@johntheaccountant5594
17 күн бұрын
@@gavind9487 Sorry to tell you, I am more intelligent than you, I remained single and had no children.
@boyasaka
15 күн бұрын
Forget the 4 percent rule Your million will get 10 percent growth a year That's 100 K a year and your million quid will remain a million
@mikerodent3164
7 сағат бұрын
I suppose I've been "side hustling" since decades before that term was invented. My side hustle will probably continue, happily working from home a few hours a week, until I pop me clogs: it more than pays my current outgoings. I'm 63 and the last time I had a proper job was when I was about 23. Jobs are a drag. I now have £1.5 m invested in SIPP, ISA, GIA etc. Mortgage on my London house paid off, NI contribs complete, i.e. destined to get the State wine subsidy (it'll about cover that, my largest monthly outgoing) at 68. Not 67. My birth month (March 1961) is the first month when people (or males at least) benefit from no transitional arrangements to age 68. ... But who cares? For 3 years now I've also been receiving ridiculous, abusive subsidies: £10 a year for a zones 1-6 "old person" Oyster card, £70 for 3 years for a "Senior" national rail card. These are abusive subsidies and should be implemented on a MEANS-TESTED basis only (i.e. so people like me don't get 'em).
@user-dy5lu8uy1o
17 күн бұрын
It's simpler than this. Pay off your mortgage and you can live comfortably on a pension which is 25% of your working income. I retired at 52 and have no problem with a 25% working income pension. I've still 8 years before I get my state pension. Remeber, no NI on pension payments, but you do pay income tax.
@johntheaccountant5594
17 күн бұрын
Your Example 4 is basically the 4% rule + state pension of £11,760
@shimsteriom4191
16 күн бұрын
Epic video as always 👌
@stewartmacdonald601
18 күн бұрын
I do generally like your videos. But then, not for the first time, you suggest that it’s not to late to start, and someone at 47 can make it starting at £300 a month and adding 10% per year. Sounds great in theory. In practice though, that year 20 is saving £1834 per month. And in fact you are over £1k per month from year 14. Now, that might be doable. Sure. But there is a massive difference between saving £300 a month at the start and £1800 per month at the end. Whilst 10% sounds small, that compounding affect that will help your portfolio grow will also have the same effect on your payments into the portfolio. Heck, even a 5% extra every year has you up to £760 per month by the final year. Now inflation will obviously play its part here. But I personally think it’s a bit disingenuous to keep making these claims of “just add an extra 10% a year and you’ll be fine”. Sure, that’s how you get the math to work. In practice though, that will end up a crazy prospect. At least without substantial economic promotions in between.
@elephantandcastle838
18 күн бұрын
It depends on what other assumptions were made- £300/month is only around 10% of the median UK income by before tax, and pension contributions may also be made by the employer. Plus expenditure up to retirement may reduce if a mortgage gets paid off, or children are no longer dependents, leaving more scope for increased contributions
@guyr7351
17 күн бұрын
Exactly it’s where you prioritise your spending. It’s amazing if people look at their true budgets each month and see where they spend the spare cash that’s going on non essentials. Another major factor is peoples mortgages, the advantages of re mortgaging rather than just taken the new terms offered at the end of a fix rate deal. The re mortgage is based on the reduced outstanding balance and not the original amount makes a massive difference.
@arhodes2866
18 күн бұрын
Thanks for another great video
@chqshaitan1
18 күн бұрын
Great video, one downside of retiring early is that you are sacrificing a resource which is finite(time). Granted lifespans have been increasing, but healthspans have not really changed that much for decades. so my priority is to retire earlier, maximise my experiences and wellbeing. I have watched your many vidoes, listening to a raft of your podcasts, and you among others have inspired me to share my financial literacy with others, and in this , i am branching out into the financial coaching space, thank you
@AvailableUsername80
18 күн бұрын
This is surely an upside of retiring early, not a downside? I have the same view- maximize the time NOW whilst one is still healthy. Balanced against being financially secure, the aim should be to retire ASAP.
@kennyopinmind7558
18 күн бұрын
upside?
@keziasarah
5 күн бұрын
Huge assumption made regarding being in receipt of the state pension. This will go the way of the Aussie state pension and be deducted for every £1000 you have saved/pension pot, so for most with 100k saving/pension pot there will be no state pension in 10-15yrs..
@user-bh7fc6hz8m
14 күн бұрын
Thanks for great video
@coderider3022
17 күн бұрын
Numbers are very close to my excel wizardry.
@nigelstone2565
17 күн бұрын
this is good news for us looking to retire at about 60 , we should have a pot of 380k to 420k . i think we want 36k a year after tax . we have about 9k in db so looking at you chart it works for us
@stephenrobbins175
17 күн бұрын
Hi. Can anyone help with a couple of questions? Please excuse me if I've missed something obvious. 🤷🏻♂️ The couple retiring at 60 with 200k. Are they both supposed to have a 200k pot? If not, then why can they take out over £1800 per month and not run out but someone single needs to take out approx £1300 at 60 in order to not run out? Is the tax burden on a single person making this big of a difference? Also, I don't think you mention how much either the couple or the single would have left to add to their pension when they reach 67. This is pretty important to me and probably a lot of others too. Thanks.
@markrushforth6212
11 күн бұрын
Put you money into property and rent it out if you can afford it and have planned for it, that's the only endearing way to do it. More chance of losing money investing in markets etc, that's a larger gamble imho.
@phill6859
18 күн бұрын
If i retired in 1915 with the pension I had now, I would be in the forbes rich list.
@shellyperera2010
17 күн бұрын
The 4% rule has been shown not to work though and 3.5% is "safer" to be sure your pot doesn't run out. The 3.5% has to be increased by inflation each year as well so will gradually increase over time. The 3.5% is only in the first year of drawing down from the pot.
@boyasaka
15 күн бұрын
Rubbish If your not getting between 5 and 10 percent growth a year on ya pot it's in the wrong place So drawing ten percent a year and your pot will not go down
@chrisgeorgiou1516
18 күн бұрын
Would it not make more sense to build up a portfolio of dividend paying stocks with an average yield of 4%? If you accumulated 500k with a 4% yield, you'd be able to draw 20k per year and still keep your full ammount of investment. Combine that with the full state pension and you'd have a total pension income of 43k if single and 66k as a couple?
@elephantandcastle838
18 күн бұрын
In the accumulation phase it's total return that's important, not dividend yield. In the deccumulation phase, it's income that's important, which could be achieved if you were invested in stocks which paid increasing dividends. The yield % is irrelevant, the amount paid is.
@hellholehere
16 күн бұрын
In the accumulation phase you reinvest your dividends. So it’s no different
@stephfoxwell4620
16 күн бұрын
Retired at 57. I find you need about 65% of the net income you had when working.
@jablot5054
12 күн бұрын
We were getting £80k a year, now retired it's £16k . That's plenty.
@stephfoxwell4620
12 күн бұрын
@@jablot5054 Gross or net?
@stephfoxwell4620
12 күн бұрын
@@jablot5054 gross or net?
@mistercutts
18 күн бұрын
If that figure excludes property wealth I'd take a lower percentage of past performance and allow that to pay for the time when I'm dribbling and can't remember who I am!
@RomeoKGT
14 күн бұрын
The government in the UK labels you economically inactive if you retire early. They dont want you retiring early and will make it difficult as it effect growth in the economy. Already strong rumours they will cap the 25% lump sum to 100k or worse remove it completely.
@MeaningfulMoney
13 күн бұрын
Those rumours have been stoping before every Budget for at least the last 20 years. Doesn’t mean they won’t do it, mind!
@porschecarreras992cabriole8
17 күн бұрын
I have nobody in my entire family that lived up to 100 or 90. So this estimation is stretching. Also in drawdown why would you need bonds? Money will be invested long terms in stocks. I find the calculations very conservative and let’s not forget state pension is for life so your 80s you won’t be spending as much as in your 60s. My calculations show that at 60 with 850k pot you can easily take 60-70k a year
@andypyne
16 күн бұрын
At £300 per year from age 47, unless I'm misunderstanding, Year 2 he will need to save £330 per month (£300+10%), and Year 3 £363 per month (£330+10%) and so on. By year 20 he'll have to save £1800 per month - every month!
@MeaningfulMoney
15 күн бұрын
Think about wage inflation over 20 years though. Sure, it’s unlikely that many would pay that much into pensions, but many do!
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