How To Sort Your Pension & Retire Well
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- Опубликовано: 15 июл 2024
- Most people don’t realise how much money they need to retire the way they want, nor how to build that pot. Hell, our Producer Will had opted out of his workplace pension before this podcast. To figure out what to do, we’re speaking to the wonderful Lisa Conway-Hughes, also known as Miss Lolly - a financial advisor and author.
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Disclaimer:
This is not financial advice. The reason it’s not financial advice is because it’s not tailored to you. We explain the principles of building wealth but if you want personalised advice, it’s worth speaking to a financial advisor. As with everything financial, please do your own research. We really encourage that because no one cares more about your money than you and if you learn the basics then it will change your life.
Chapters:
00:00-00:25 - Intro
00:25-02:50 - Damo challenges T with a Mensa question
02:50-07:45 - How much are you going to spend in retirement?
07:45-11:15 - Work out every year what you need
11:15-14:00 - Are you saving enough to afford the lifestyle you want?
14:00-17:33 - Ways to be as tax efficient as possible
17:33-19:30 - How tax on your pension works
19:30-21:59 - Putting your money into lots of different pots
21:59-23:30 - How long will the state pension be around?
23:30-24:55 - Blinkist Ad
24:55-26:05 - Is now the golden time for higher earners?
26:05-30:48 - How safe is your pension?
30:48-32:40 - Should you move your pension?
32:40 - 36:15 - The different types of pension: workplace, state, SIPP etc…
36:15-38:48 - Getting the most out of your workplace pension
38:48-42:17 - How much should you save a month?
42:17-46:14 - Pensions when you are self-employed
46:14-48:34 - What you can do today to get on top of your pension
48:34-52:13 - Should you consolidate?
52:13-54:28 - Are you clever enough to get into Mensa? Damo reveals the answer
A lot to take in right? Take your time to digest this vital information with our step-by-step breakdown of this episode, with all the links discussed, by signing up to receive the Episode 12 show notes here: makingmoney.email/ep12
As a 68 year old I am thankful for having planned towards retirement when at times it was hard to do so. My past self has always taken good care of my future self. Let me tell you that if you put off putting money aside your hobby will be looking out of the window as life goes by. I am still actively planning how the next 12 years will look and taking into account mobility and health. Modest money well managed beats big money thrown against a wall.
You are right. I kept a budget book for years. Very good for your mental health, specially when you have little money to live on.
There is absolutely nothing wrong with looking out of the window as a hobby. In this busy life of mine it would be actual bliss.
That’s not true. In this country you’re penalised for saving. Everyone who hasn’t saved for retirement will get pension credits, so they’ll probably end up with more than you.
this should be shown in every workplace in the country so many people think that the state pension will suffice and have no plans for their retirement whilst being no financial expert I have ended up comfortable in retirement by watching videos like this which is the best one I have seen congratulations to you all
This is by far the best episode and will be very difficult to beat! Thanks a lot guys!
Thanks, we thought it was a great one too!
Thanks for this video. I contacted an old workplace pension provider that I didn’t touch for 10 years and found the fund that it is investing is underperforming and costing me money. Have now switched to an index tracker fund. Thank you so much for this video it will save me a fortune later in life!
Fantastic episode. Thank you so much for making it. Lisa was great 👍
so far the best episode!!!
Great episode. I keep coming back to it because there's so much good information that you guys talk about.
I am SOOO loving these podcasts-great information and good fun too !
Thanks, that's the vibe we're aiming for! 😁
Damo & T make finance interesting and their banter makes it a lot of fun. Very good advice, this should be taught at every school!
This was such an awesome episode, thank you so much!
Great episode guys. The usual mix of fun and facts is right up my street 👍🏻
Learnt a lot from this episode thanks 👍
Excellent listening, thank you.
Brilliant as usual 👏
Thanks again guys.
Great episode, probably the best so far. This is a great series!
Thanks for the kind words - great to hear you are enjoying the series
Really, really good, definitely subscribing to this chat! Well done
Brilliant as usual. You guys are my favourite RUclipsrs, and Lisa was a great guest. 10/10 ⭐
😊thanks, very important episode so glad you enjoyed it!
@@MrDown2AT did you add Mr to your username! 🤣
Excellent episode! Lots of food for thought and action.
Definitely a lot to take in! Thanks for the kind words 👍
The best episode so far!
Cheers George, we loved talking to Lisa
Such great info in one episode. Keep up the great content. It's so useful for thise that dont have or don't trust financial advisers
Brilliant guys, just brilliant. And I learned something new :)
I really like this podcast. Always watched Damien’s content on other channel. I liked the way you guys presented some of the scenarios. It was all stuff I had heard before but there was some new ways to explain it that helped me understand it better
Yeah Lisa is definitely great at explaining complex things in a more understandable way. Really glad you enjoyed it!
Absolutely brilliant. Learnt so much !!!!
Thank you! Us too!
This info is so much and I still have no idea what I should put away.
Loved this. Learnt a lot from her, she was lovely
Thanks Louise! We learnt so much from her too!
Great episode!
Hey guys! Loved this episode, learned a lot.
I (37f) work for the NHS and have worked for universities previously, so I will have the bulk of my pensions in DB schemes. I missed out on a few years doing a Masters and a PhD, so my pot is smaller than others my age. But when I've worked I have always paid into the workplace pension.
I was recently diagnosed with melanoma (early stage, all good now) and that has given me a renewed focus on retiring as early as possible so that I can enjoy life. I had critical illness insurance which paid out, so I've invested that in a SIPP (and paid off a large chunk of my mortgage) so that I can achieve that early retirement goal.
As the NHS is the biggest employer in the UK, I'm wondering if you'd consider doing an episode focusing on DB pensions in particular? Or if there are other episodes you've done that focus on DB pensions that you could point me to?
If you ever need/want a viewer case study, hit me up! Happy to share my goals and ballpark financial position to be examined :D
Superb guest very knowledgeable and informative 👍🏻
Best video yet, thanks guys!
Thanks Jamie!
Superb podcast! Subscribed 👏🏼
Cracking video, what a great guest!! Huge thumbs up for you all 👍🏻
Thanks so much!
Brilliant cast Damo & T… 👏 👏
Lisa was amazing…great content giving vital information to a wide demographic of money conscious people. The multiplying your desired retired annual income by 25 to evaluate the amount that you need to put in was rather scary…but knowledge is power 💪🏻
I disagree I thought the FA was very basic and her redistribution of wealth ethos had me, a pure capitalist, running for the hills.
I just sign up for email, and that looks like a lot of work to put this together. Well done team and thank you this is nice and clear. Thanks👏👍🖖
Thank you! It really is a team effort so really glad to have you on board.
The Best and the most informative episode! Well done team! I will be back to this video a few times regarding crucial information. Thanks for this great portion of awesome information! 👏👍🖖
Thank you!
Thank you I enjoyed this.
NEST pension for example. Can not be taken 10 years prior to state pension age, despite technically being a SIPP, and also they invest every workplace pension into a mediocre fund. You can request they transfer into a higher risk fund, but most won't.
Love it
Another great podcast. Pension is definitely something I really really need to look under the hood on.
Thanks! Yep it definitely made us all look into our pension situation.
Top notch
Very entertaining and informative
Glad you enjoyed it!
Gave a thumbs up already... got toend and want to do it again
What a guest
Great episode! Great advice all throughout and great guest.
Hope you are doing well Damo
Much appreciated. We loved having Lisa on!
Great video thanks... My biggest challenge is the unpredictability of hoe my pension will perform. Aged 45 and having been paying in extra contributions for around 10 years now. Retirement planner tool in work shows returns based on low, average and strong ... Strong obviously looks great but there is a massive delta between that and Average. So it kind of feels like a shot in the dark at this point
Same here Paul, what is the toolkit you are using?
Great video so far. I would say it makes sense for someone with 10 million to get a pension. They contributed more to the system. In plenty of European counties you get more pension if you contribute more up to a capped amount (much better in my opinion). Just because your financially responsible doesn’t mean you should be punished for it. Either everyone gets it or no one in my humble opinion and I also don’t believe in higher tax brackets but that will never change!
Great comment, thanks 👍 Glad you enjoyed the episode
Really interesting I would have loved to get her opinion on civil service pensions and how we could/should manage them
There's definitely more to get into re pensions! So much to cover!
Managed the Mensa puzzle, got it right but for different logic. I elicited all the foods that contained the letter "A"
Okra has an 'a' 😊
Nice one - isnt it great to try to help people and have fun doing it ?
I came here from Damien sub, enjoyed this video ! Lots of food for thought ! Going to sub to all now. This trio should run the uk 🇬🇧! Debt, inflation, u name it, and they would be fixing it better, fairer and more quickly than any government of the day could do!
Thank you!! Haha we agree, what a trio that would be!
It’s £50k per year as the calculation for the LTA is 20 times that income, which equates to £1m.
Suuuuuuperb 👌
A huge step forward from last week.
I thought I was the only one thinking it. Can’t believe so many people found last weeks episode actually useful or insightful
Last week was a turn off but I get why they tried it - this is much more like it
The half your age calc is the age at which you start investing. So starting at 20 you should be saving 10%. If you start at 40 you should be putting 20% into your pension. Clearly what you get depends on the salary.
The state pension isn't a benefit, it's a mandatory paid in government payment scheme. It isn't a case of redistributing wealth to the poor. Rich people are paying into the state pension scheme the same as poorer people.
Better paid people are paying far more in
@@Bluearmy76 That's true
@scareybailey. Hi my husband and I are retired. I have serious health issues and need a lot of care.Before my husband retired he cut his working hours to take care of me. We were struggling financially so my husband was advised to check if he was entitled to carers allowance, turns out he was and it was a great help to us. So when he retired he rightly expected to continue receiving Carers Allowance he was shocked to discover it had been stopped. He called the DWP for an explanation they told him that he would be recognised as a carer but was not entitled to the payment because you can’t get two benefits. My husband said “I don’t get any benefits all I get is my State Pension.” The advisor replied “ Your State Pension is a Benefit.” My husband protested but was just told again that the State Pension is a Benefit.
@@user-zw3bg9vr5g Seems the government changed the state pension to a benefit in 2014. An absolute disgrace. Sorry to hear your issues and thanks for the reply.
Keep up the good work boys !!! If i open a sip with Vanguard, how do i claim the tax back or is it done automatically
Hi, good video and good content, well delivered as always. I would have expected coverage of the benefits of using a LISA. Although you dont get the employer contribution, you do get a 25% bonus. Additionally, no tax on the way out if used after 60 for a pension. Would have been interesting to see all of your thoughts on the pros and cons of using that, alongside, instead...
Pension planning is such a big topic we couldn't cover everything and maybe we'll do more in the future. We did also cover the LISA and looked at the pros and cons of it in our ISA episode.
Thanks for the reply. Agreed it is a big topic. I have been listening to How to own the world and it has a lot of good information on there regarding it too.@@MakingMoneyPodcast
Good epidsode! Personally I think if u've got 3 yrs worth of cash (as shes says )Then you can afford to have alot more equity diversely invested in ur pension than bonds even close to or in retirement . On the principle it will recover anyway .-- and bond prices can tank aswell
Thanks - glad you enjoyed it 👍
But your SIPP is only accessible 10 years prior to state pension age, which is increasing. Your ISA is always accessible, when I'm 50 and I'm ready to go part time or sack off work entirely, I need access to capital. I invest in both, I'm just saying.
Really great episode
Glad you enjoyed it!
If I’m not receiving a state pension because I’ve saved too much then I’m either not saving or I’m not paying into the NI pot. I’m not paying into NI all my life to be told you’ve done too well you can’t get a state pension now. If I choose to give my money away that’s another matter. What that lady has suggested may happen is theft- pure and simple. She seems to be sympathetic to that possibility so my family won’t be coming to her for financial advice.
@Duckandcover01 Many people are unaware that they have to request their pension by filling in a form online or asking for a State Pension form to be posted to you. The State Pension is not means tested.
Excellent pod/show indeed. My only query is why didn’t you specifically mention the Lifetime ISA? Or when talking ISAs did you mean all forms including that? I know it has some limits but the 25% bonus element makes it surely worth mentioning as a pension planning option? Albeit less so than things like Salary sacrifice yes.
Also do you think they will scrap salary sacrifice one day or limit it?
Thanks Stefan! We did do a whole episode on ISAs where we did talk about the benefits of the Lisa there but to be honest there's so much there re pensions that we couldn't go into everything. Definitely more to talk about as well :)
Sad to say, given that we ordinary folk had no real education or encouragement to do this stuff and ploughed on thinking our employer and the government would be arranging things for us, a lot of us are in a hole now.
I would have to SIPP *everything* I earn for the next eight years to get to a bare minimum pension amount. Given that I support two on my wages that isn’t going to happen.
So my options are Lottery or Bank Robbery :wry grin: it was quite a shock when I just redid my Necessary Pot calculations and proved my gut feeling that inflation has hit my monthly expenditures to the tune of a 50% increase.
Probably the best episode yet! Pensions freak me out as the calculators seem to say I am miles off what I need but then see what other people have already saved and I feel advanced. I do want to start paying more in but need to get through the next couple of years high mortgage rates etc first.
Would also be good to get a take on if the state pension ceases to exist could the living wage potentially replace it to guarantee everyone at least some money until the end?
There won't be any living wage, and maybe no state pension if the con-servatives remain in power. They don't care about anyone but themselves. There will be an awful lot of people here in the UK who can't retire, and God knows what's going to happen when they can't continue to work forever. The problem is also those people who have worked all their life and scrimped and saved and payed into works pension schemes and brought their own homes, but still haven't got enough money to retire. And other people who haven't, bovered to save and instead just enjoyed their lives, maybe lived in social housing with cheap rent. And they will remain in low cost housing in retirement, and will get help from the government. How is that fair
@@thepropertyflipper who are you replying to
I feel like I will end up with nothing. I have paid in to a work pension since 21, now age 44. My work pension would be okay, if I worked to 65, compared to my wage now, it would be around 80%. I have no mortgage, so my outgoings won't change much. The current State Retirement would be enough on top, at 68 to be okay. But i would need that to make things comfortable.
Stupid question but why can't you have a big pot of investments (effectively a pension) and then borrow against it. This way you avoid paying tax as you don't pay tax on your debt or the wealth.
Another great informative video... i have 1 question if anyone can help...
I have no private or work placed pension, have large savings which i think i should start a pension with..where is the best place to go to seek some good quality free pension advice??
Any suggestions are welcome and thank you in advance
Dependant on your age, I would begin by investing £20,000 (max yearly allowance) into a stocks and shares ISA. This can be accessed at the push of the button (ie before the age of 55) and is tax free when withdrawn. When invested in a global index for example, you’ll achieve around 5-7% average earnings on this.
For pensions, there are government services that can assist with advice but I am not too familiar with them.
I enjoyed this episode, we all need to plan for retirement. Maybe i'm poor but im shocked one would "need" a £40k+ income in retirement! Isnt the average UK salary about £30k? And this £30k factors in saving up whilst paying rent or a mortgage, and travel costs to commute to/from work, which one likely wont need to do in retirement.
You're right, not everyone will aim for the same amount. Like Lisa says, we should all look at what we want, not everyone will want or be able to get to a £40k a year pension. Whilst there are lots of things we might not be paying for I was really struck by her highlighting that when you are retired you are practically on a 7 day weekend, which I'd never thought about before.
@@MakingMoneyPodcast Thanks for replying, I guess I was just surprised at the large numbers and struggled to relate. True about the 7 day weekend, which is effectively a 30 year weekend! 🤔 I'm sure there'll be down time in there somewhere!! Still my favourite episode. I look forward to all the others, keep 'em coming!
So I have an ongoing salary sacrifice pension with my current employer, which is invested with Scottish widows (work pension manager) in some tracker funds. Can I take a chunk of money out of this & put in say a Freetrade or Vanguard SIPP so I can more closely manage it myself - will I lose any benefits in doing so? Will it affect the ongoing work pension payments?
That would be a question to ask your pension manager - like Lisa says, they work for you!
I move my l&g work pension to Vanguard periodically. I am not allowed to totally clear my works pension to zero, i have to keep some funds in there or l&g will close it down which wouldnt be good. However every month I arrange to transfer into Vanguard. Works well
You will need to check with SW, if they allow it and what their rules.Are But it is possible to be able too with some providers at least
People definitely spend LESS in retirement. No question about that.
Fucking A!!! This is a gem! Thank you!!
Glad to hear you want to help those who can't afford a Financial Adviser as that is the majority. Rather than fix the problem the Retail Distribution Review broke it further. As this lovely lady says she only sees high nest worth individuals and why wouldn't she as this pays her a good wage to save and enjoy luxuries. It's a shame that whilst these types of broadcasts point out what people should do in reality they can't and if they could they are now left to a robo advice service shame the days of the man from the pru had to go conpletely there is a missing link there somewhere??? Anyways thanks for pointing out all the problems but we need solutions. The ifa world can't help and most in it for there own gain such a shame. Also just a point on those clients who "gift their state pension" is this not another way of paying less tax?
So, who do you leave the £1,000,000 to?
Great show, don't think the rich will pay into state pensions over a life time then just give them up.
She’s a smart woman, I get how she’s Mensa
We all learnt so much in this episode! Lisa is brilliant!
Where can we find more information from this lady?
Hi Graham, here's Lisa's website: misslolly.com/
Cheers Thank-you very much 😊
So if you pay 75%in tax with a pension,would it not be better trying to get a ISA shares and stocks portfolio that will pay dividends to cover any shortfall to make up your required figure tax free than paying more to a pension if you are a lower tax payer .
They didn't explain that very well. What they meant was that if you don't take 25% of your pot tax free in year 1, you get 25% of each year's money totally tax free. On the other 75% you pay income tax on as you currently do on your wages.
@@malcolmcoles8014 James Shack has a clip on this. I watch all their videos (Damien,Timeyin and James) together with Chris Bourne and Principles Pesonal Finance channel. The lady really covered all I needed to know. Excellent podcast
What pension should I invest in I work for a scaffolding company but I don’t know if I’m going to be at the same company for years to come.
Do I just not get a work place pension and just get a personal pension because I move from company to company because there’s more money to be made else where?
Any advice would be appreciated thanks ?
My man T with the low blows! 😂
12:28 I often see that 'Average Pot of £55k' figured quoted but it can't surely be true ? How are people living even a very basic retirement life with that amount saved ? I'm just over 50 and have managed to save a £160k+ pot from a average wage after only starting at 36. If 55k is really the norm I should be laughing but I can't see me downing tools any time soon sadly. I wonder if the reality is £55k in each pot but they have several pots ? It's the only thing that makes sense.
Depends if mean or median is used!!
one million is a more realistic goal
Cherries.....Tabitha likes 2 syllable things
One massive point missed, your pension is an asset so if you get divorced it counts as your wealth. If it all you have and your partner has nothing they now have half of your pension worth. Divorce is 50/50 more or less
Only for the years together. Assest before marriage do not count
@@m4son5ee I'm afraid not, been there been screwed. All assets count unless you have an agreement before marriage and even then at least in the UK it's not a guarantee.particularly if the marriage is long
You must have had poor legal advice/team.
If you have worked for ten years prior to a marriage, and five years married. And divorce.
There is not claim of 7.5years worth of a pension. That’s not how it works.
@@m4son5ee dude your full of shit. Divorce goes from 50 50 and the splits if kids are included. In my case we were 50 50. My ex wife had a large pension that she thought was hers and not an asset. Anything over £500 is a claimable asset. If you try to hide some, then that is your choice. My legal advice was sound. You clearly haven't got divorced.
@@johnB11ify as you said, in your case… case by case will be different. But there are matrimonial assets and non matrimonial assets. In any case the decision should be fair and equitable! So I would refer back to my example.
Rich people dont put into pensions the invest ! Rich people own the pension pot 😂
Not sure someone that earns 80 you got them to 50 in real terms? Why no discussion about financial protection?
I am apoplectic with rage that the FA thinks it would be acceptable for a future government to withhold state pension from "the rich" to give to those in "poverty".....redistribution of wealth....yes lets just punish achievers and reward those that will more than likely have made appalling life choices....not least expecting the tax payer to pay for them forever....
I wouldn’t be fair if you had 2 people who earned the same, person A spent X amount each year whilst person B saved that same amount, then come retirement, person A gets the money back again and person B has to spend his own. Essentially, person A has now had that money twice and been rewarded for spending it.
The only fair way is if everyone gets the same, that way we all have the freedom to choose how much we spend now vs spend later.
I think she made a mistake there, the highest tax bracket is 45%, surely.
She's in Mensa for God sake Damo
Nah she’s too nice to be a financial advisor. Where’s the wet look hair gel, the pin stripe suit and the 2.5% per annum actively managed service to sell you?!
We've got them booked for Series 2 Ben!
It makes me sick to think the government could pull the state pension from our generation. It'll be yet another benefit that the baby boomers have enjoyed, and yet again at their own children's expense. If we pay into it our entire lives, they better have a big fat tax rebate ready for us if it comes to an end!
You can tell she works in London lol £££
Look you can refer to whatever you want but you haven't gone through a divorce that is clear. It's not just my case it's the way the UK is. If you are not UK then fair enough, if you are UK. Then show me your settlement. Is there a lawyer that can shut this person up.
U could snuff it tomorrow.. live for today , fuck saving , just invest instead
Such a knowledgeable person but does have a voice like a primary school child
I might have missed it, but you mentioned a place (a .gov website) where you could find out about all the workplace pensions that you may have. Can you share the details, please?
Hi Ben, we include all our links we reference in our newsletter - you can get it here: makingmoney.email/ep12. Of course no obligation to stay subscribed if you don't want to.
Got it, thank you@@MakingMoneyPodcast
Decent, enjoyed that. Quick question tho, what does the other bloke bring to the party?
When relevant, he asks questions that Damien doesn't always think of as he already knows the answers.