The One Thing You Need To Do Financially In 2024.
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- Опубликовано: 3 июн 2024
- If there is one thing you do for your financial future this year, please let it be getting to grips with what we discuss in today's video
Get access to the pension questions and the fund sheet here.
financialinterest.com/pension...
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Links from the video:
The research paper www.dectech.co.uk/wp-content/...
Workplace calculator
www.moneyhelper.org.uk/en/pen...
Investment risk choice
www.standardlife.co.uk/invest...
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DISCLAIMER: I am not a financial advisor and none of the content on this channel is financial advice. All information is provided for educational/entertainment purposes. If you are making investment or other financial decisions and require advice, please consult a suitably qualified licensed professional.
Timestamps:
00:00 - The most valuable thing you will ever own.
01:00 - Golden Years
02:30 - Opt out problem
04:09 Step 1
05:37 - Questions
06:13 - Step 2
09:28 - Step 3
12:07 - Consider this
15:00 - Do this tomorrow
Here is the link to the pension sheet: I will continue to add to this with other providers and funds I have missed so just comment below anything you think i have missed off please.
financialinterest.com/pension-provider-cheat-sheet/ you will need to provide an email so we can send it to you.
Damien, would you make a video about public sector pension schemes such as explaining the Police CARE 2015 scheme? We have high contributions compared to the private sector and it would be good to get your thoughts. I’m told other emergency services, NHS and military all have similar schemes so may make a useful video for all. Cheers
I'm currently rocking the Global Technology Fund W-Acc-GBP. Its very pricey, but has great consistent returns. I like that is isn't all USA, its not full of sectors that do nothing like agriculture and I like having firms like TSMC and Samsung that you don't get with S&P500. Its volatile but pensions are meant to be fun, right?
Hi Damien
Great video, I noticed my pension was underperforming when I started investing in 2020 and since then I have had great returns after changing from the default option.
I think its worth pointing out that the peoples pension has a management charge rebate for balances over £3000. Here is the bands for the rebate and percentage:
For the part of your savings:
up to £3,000, no rebate is given
over £3,000 and up to £10,000, we’ll give back 0.1%
over £10,000 and up to £25,000, we’ll give back 0.2%
over £25,000 and up to £50,000, we’ll give back 0.25%
over £50,000, we’ll give back 0.3%.
Hi Damien! What about legal& general? Can you add them to the mix? As far as I knew they are quite big on the market as well. Thanks! 😊
@@catalinomocea6986 Yes i will!
I am lucky to get at 10% match with my current employer and I have my investments going into 100% equities. Prior to that I worked for a different company for 8 years contributing the minimum 5% and leaving it in the default fund. Since I consolidated my pensions, upped the contributions and optimised the allocation to grow I have increased the value of my pension by 400%. This is the best thing you can do for your long term financial future. Great video Damien, everyone should be paying attention to this 👍
Excellent work!
That is amazing, Scipio. Very well done.
If its a SIPP try and get them to salary sacrifice it in then you dont loose the NI either
Great comment. I’m in a similar position, 10% of my overall income is matched and I’m actually paying more than that in myself through salary sacrifice.
Couldn’t agree more about changing funds. If only I’d have done it sooner…
@beartybollocks7782 it is salary sacrifice thankfully. I periodically partially transfer out to my SIPP, once or twice a year as well.
Haha the hands 🙌 reference at the very start of the video setting up the smaller hands 🤚 jokes = genius 😂 0:07
A lot of RUclipsrs talk about "empowering" people, but you genuinely do, Damo! I'm in my 60s, and if you'd been around even just 20-odd years ago I'd be retired by now. By following your advice just over the past couple of years, I've substantially improved my financial security. Thank you for showing us so clearly how to make sense of things, and for making it so entertaining that I almost don't notice how much I'm learning from every minute of your podcasts.
I feel the same, but I'm 20 years younger than you! If someone had explained all this to me in my 20's, I'd be a millionaire by now through better pension and investment decisions. Better late than never I guess. My mission now it to make sure my kids understand the power of compounding.
@@SomeoneSmarter
Better in your 40s then 60s. Even more valuable is educating the next gen incl teaching and encouraging them to seek out info, ask questions, educate themselves. My dad always said never take anyone’s word even mine and think for yourself. Best gift you can give.
Hi Damien, thanks for the video! I’m an NHS employee, so my pension is ‘defined benefit’ and works slightly differently to ‘defined contribution’ pensions seen in the private sector. Would be great if you did a video on how defined benefit pensions work, as I’m sure there are plenty of public service workers who watch your channel :) cheers!
As a local government employee I second this comment :)
DB is gold and you are lucky to have it... none of the private sector employees get it now, my father had a DB pension and since his passing away in 2019 its still being paid to my mum , no worry about money running out ever
Your DB pension is calculated through your average salary or through the years there or your final salary are calculators to help you. It is excluded from investment so it’s solely based on your service. They are very rare now and you will get payment until you die once calculated.
If you have the option to pay into an AVC on top of your DB pension then this will apply. I’m an LGPS employee, but the AVC is with Prudential and you encounter all these default schemes and high fees that you need to check out and change if needed.
My old scheme was DB. The main catch a lot of us retirees got burned with is the yearly payout increases are discretionary and in no way match the rate of inflation. If you’re looking forward to a long retirement don’t bank on the true value of the pension staying adequate.
I took the furlough time I had during the pandemic to take a deep dive in how my pension pots are invested and ended up switching 90% of the allocations. Let me tell you they do not make it easy! The available alternative funds were burried in lists that were hard to filter I can easily see how the average person would be completely lost! But I stuck with it, took me weeks but I think I chose the best of the bunch for my risk preference. The guy from Aegon I was on the phone with when changing allocations even asked if I worked in finance when I gave him the exact code of the fund I wanted to switch to😂😂 No mate Im just a determined millennial with time on my hands!
Which funds did you go for mate?
I'm with Aegon too, be useful to know any findings
Me too, please report back.
@@NTL578 With Aegon too. I've been switching mine from the default fund. Its performance has been demoralising shocking! Will now be paying into 75% S&P 500 (ISIN: GB00BMN91T34) and 25% Tech (ISIN: GB00B629ZJ09, closest to QQQ I could find). Currently searching for a SIPP where I can buy individual equities. Interactive Investor looks promising, but I cant seem to find info on Aegon about how to transfer and whether my employer match will be maintained once the transfer is complete.
I'm with Aegon as well and agree with you. Almost too many funds to choose from but there are decent funds to select if like you, you put in the time and effort.
already had this sorted for me but thanks for going over it so clearly
Thank you very much for your great work, Damien! 🙇♀️
Exactly the video i needed at this exact time.. thank you!
Happy new year to you and your massive hands, Damo. Wishing you nowt but good luck, keep the great vids coming.
The hand bit was brilliant.
Great video Damien, love your content. You make it super easy for people to understand the minefield which companies present, Thanks.
I'm hoping this is leading to a series where you cover many aspects of pensions including best SIPPs and their costs, what your options are once you retire and is taking your tax free cash allways a good idea 🙏
Salary sacrifice into SIPP is the best way to get money in and withdrawing the tax free cash can be a bad idea as it can put you into a higher rate of tax when you withdraw later on if you plan to take out larger amounts in retirement
@@beartybollocks7782 but what SIPP?
Every March/April we get the ISA providers review (not just Damo but most UK creators) but for the arguably more important pension I've yet to see one
One of your best Damien. makes we wish I could start again!. keep up the good work.
Was just listening to Nisha I’m now tuning into my namesake for valuable info.
Great stuff, Damien. Thank you.
Began my first job out of college in September. Including my employers match I’m putting 12% of my salary away for my pension. The tax incentives are too good to pass up here in Ireland.
I’m 26 and I’m happy I’ve educated myself enough to do this. Videos like yours Damo are making a difference. Keep it up brother 🙏
I also picked all equity funds 😉
Congrats on landing your first job and well done on making the decision to take care of the future you... and in a tax-efficient manner!
Great video! Feels like the start of a good series around workplace pensions. Hope to see a continuation on the topic!
Thanks Damien, you've changed how I view finances. Definitely think about money more critically after watching your videos!
Cracking content that mate. Should be shown in schools!
Nice one pal
Another great video, am 21 and been watching since I finished uni and started part time work you’ve helped me with my finances so much and made me feel so much more confident about bettering my future. I opted-in to the pension sheet but am still waiting on the document, my provider is also Legal and General if that’s not on there already!
Awesome video Damien. Thankyou!
Yep, a really important video. Will be interested in looking at the provider comparisons.
Hey Damien,
you have not included NHS pension provider NHSBSA collects from all NHS employees. would love to have one video specifically for NHS staff. Its so confusing the way they work out pension for us. Much appreciated for your informative content.
This is an amazing channel! You’re adding some real value buddy! Thank you!
I have an NHS pension (defined benefit scheme) to which I pay about £400 a month. I receive a pension statement each year but to be honest I don't really understand it as it's full of jargon and what not. All I understand is that once I retire I will receive a guaranteed income every year for the rest of my life.
Its likely you can also purchase additional pension credits (APCs) look into those as an option - DB schemes are few and far between make hay while the sun shines!
Terrific work 👍
Let’s hope people are listening 🤞🤞👍
Amazing as always Damien. Thank you.
This is a great video, I was talking to my partner about making changes to my pension recently and the information you keep passing out gives me significantly more confidence that I'm doing the right thing. Thanks for the hand ✋
Great timing. Legal & General is a great big provider as well which you may consider to add to the list! Thanks Damian. 🤚🧤
This video is incredibly handy. Thank you
Thanks, much appreciated 👍🏻
Damien thank you so much for this video. Kick up the backside I needed. I put the list of questions you suggested to my employers and it's had a ripple effect
I work in the pension industry, just to point out if a member got in touch and asked what funds meet their risk profile, I wouldn't provide a tailored response as this would constitute financial advice. I would provide the fund factsheets and direct the member to speak to a qualified financial adviser.
been looking at my Royal London company pension, seeking the best financial advise , i want to diversify my $600k portfoli0 ?
Thanks for clarifying
So if someone called and said ‘send me a list of all your global funds with 100% equity exposure’ you wouldn’t provide this info?
@@DamienTalksMoney
I’m guessing no based on experience of others in past when I advised similar. As commenter said just fund fact sheet/s. Why not overall asset allocation: equity and fixed incl % domestic, US, Global/Int’l and ideally EMs? They have the data.
Great video! I switched my two workplace pension funds a few months ago into funds that best replicated the global stock market. It’s surprising how safe the default funds really are.
Great video Damo! I’m not in the uk but I did take a look at my pension and made some changes. Cheers
Thank you for this video, I try to explain to people all the time that they need to choose there pension options and now there this great video to tell them. You videos are just the best!
Fantastic video. Something that I had completely overlooked.
Hi Damien, thanks for openning my eyes!!!. Please can you update us once legal and general are added. Keep up the good work 👏
You are really knocking it out of the park these days Damien. I always enjoyed your content but it has become so polished and professional, and you sound so much more confident since I started watching..
Damien - By far your best one. I have tried to speak tp my son about this but now I am just going to share this video with him. Thanks for all your work
Great video! Thank you
I was today years old when I found out how pensions work thanks to you lol. So thankful for your channel because I'm learning a lot, your content is super helpful! Will definitely be checking my workplace pension after this video!
Will look into this tomorrow, thanks for flagging!
this should be mandatory education in schools... seriously, it can be covered in 1-2 hours (maybe even have the students actually start a pot as part of it)? but has a huge impact
and then it should be a standardised part of induction to any workplace... just like all those health and safety mini courses
it really sucks to finally understand these things when you're 30+ and find you're already behind and need to play catchup on the past ~10 years
Couldn’t agree more!!!
They don't want financially savvy people, they want mindless consumers. After all, if everyone was financially aware, the economy would suffer because we would be spend more on investing than Gucci handbags. They don't want that.
Perhaps not just schools but also workplaces - many companies organize workshops and "online sessions with pension providers". There is also a taboo topic about pensions - I've heard colleagues saying they don't go to these as they think is a waste of time...
@@lucho1844 yes i did say that, but we’re in agreement
Basically the point is that there should be multiple points in life where this is brought up to make sure you understand it even if you miss it in school or at your first job… etc
In the late 90's my high school had a branch of HSBC on the school site in an old classroom, which was run mainly by students and would open at break times so we could do small deposits and withdrawals without leaving the property - but even with this close partnership between our school and a large bank, we still got zero financial education from anyone, other than a few leaflets about junior savings accounts that would be left on our desks from time to time.
Nice one Damo.
I’ve had a look at my Pension and put it all on black
Quality video, I found it very informative and engaging!
Damien - you are the man! Thanks for putting so much effort into your messages :D
Another great video, with amazing special effects 😀
Thanks for this video, I just logged into Nest and changed my fund.
Good video Damo! Such an important topic which you break down and explain in easy to understand with dash of humour 👍🏻
Amazing, appreciate the info and the work done ! Ill keep checking if in the future Scottish Widows is added into the sheet
This is a great video thank you!
Excellent video as always Damien and perfect timing as I am trying to get my young daughter to take more interest in her workplace pension. Many thanks 🙏
You are doing everyone a great service by making this video! Especially also near the time where everyone's scrambling on what to do with their tax.
Thanks for the video Damien, I would love to see you touch on defined benefit pensions too if possible
Great information thank you 👌
I'm starting a new job tomorrow and just about to be set up with PP,
This is impeccably timed!
Thank you for your great content. You make it so easy to understand and provide great value, not just within your videos but also with your fact sheets you create to help us 😊
Glad you enjoy them and find them useful!
Thank you for this, very good
Mate that was an excellent video, thank you so much! I have a pension review this week and will be thinking carefully about it now instead of just letting them lead me.. Thanks!
Great storytelling abilities 😊
Excellent presentation. Thank you. I am USA myself but all of what you discuss applies to us as well.
Honestly this guy is a fkn G! Every post and podcast is just saucyyyy! Keep it coming bro!
Incredibly helpful video!! Thank you. Please could you add Fidelity?
Thanks for sharing this Damien 👍
Amazing video Damo, I'm training to become a financial coach to help people with exactly this type of thing rather than sleep walking into retirement and 'hoping' everything will be ok. Thanks for getting the message out there, so many people just don't realise what's going on. Would love it if you could add Scottish Widows and Royal London to the list mate. The hands gag had me in stiches, even got the missus in to watch it!!
You’re right it’s amazing how many people don’t know what they have in their pensions or the contribution % let alone the provider fees. You’re putting out great content as always my friend. Keep going
Superb video! I've been telling the young members of staff in my workplace about changing out of the default pension fund (the default fund has sovereigns, corporate bonds, 30% equity - an absolute horror show for young people). Am now using this video now to help, as it really is spot on. Well done, and you have another subscriber.
This guy is honestly the best no nonsense, easy to understand, trustworthy financial RUclipsr out there.
Another great video . Love your style
Love the Gran Turismo reference!!!
Really informative and helpful Video!
Brilliant production value mate
Thanks Damien - appreciate you taking the time to lay this out so clearly. The Borat cameo didn't hurt! 🤣
Damien - brilliant video that was well presented and everything you said was spot-on - well done! If you have a personal pension you should listen to what Damien said!
Your videos are always the best💯 I do receive a notification each time you post a new video.. We'll have regrets for things we did not participate in...Investment should always be on any creative man's heart for success in life.
I agree with you and I believe that the secret to financial stability is having the right investment ideas to enable you earn more money, investing with the right expert would free you from modern financial slavery.
Nice one mate!. Regardless of how bad it gets on the economy, I still make over 19k every single week. Thanks to Fergus Waylen for keepin me financially Educated!
YES!!! That's exactly his name (Fergus Waylen) so many people have recommended highly about him and am just starting with him from Brisbane Australia
My brother and I also joined his strategy and we made massive gains at the moment while under training. I am forever grateful to Mr Fergus Waylen
Though I started with as low as $15,000 actually because it was my first time and it was successful, he's is a great personality in the state
Really helpful video thank you
Thanks mate, I just changed to adventurous from balanced after watching your massive hands.
Fantastic video as always Damien and thanks for the resources. I've been contributing to my pension now for almost 4 years and still haven't been able to get my head around the funds as well as I have investing in index funds, but this has been super insightful and will be taking a closer look this week.
great info thanks bud
Great video. Not enough people are aware of this stuff.
This is some great investment advice from the best financial advisor I know, thanks.
Hi Damien, thank you for all of the brilliant content you provide. Will you make a similar video for people who are self-employed? Thank you
Thanks for the video! I'm considering consolidating a couple of old pensions into a new one maybe with vanguard but still undecided on whether to go the SIPP route or not as I know I wouldn't be constant into how much attention I am going to pay to it 😅
another excellent video 👍
Just the kind of video i needed..im in nest at work,but im unsure if they are what i want.I will be logging on again with my eyes open,and more aware of what they are doing with the cash.
Great vids mate.😎👍
Great vid and great advice for people looking to start to take control of there financial future.
Cheers Damo, massive video. I looked into this last year and I've now transferred all my previous workplace pensions into my SIPP. I also transfer 90% of my current workplace pension every quarter to maximise the compound interest but also still get the advantage of my company match by not transferring all of it. This will be seriously useful for everyone 👍
Thanks Damien for this valuble and informative episode keep bringing the gems peace and blessings to you
Great video - thankyou - please can you add Legal & General pots. I had a look at this pre Christmas, logged on, and couldnt really make sense of which pots were best for someone in there 40s
Yes i will
I have a pension in Nest and also Scottish Widows. Id love to learn more about SW from your perspective and help with how to maximise it . Thanks in advance 😃
This is such a helpful video, if you could add Royal London to the spreadsheet that would be helpful for me personally too. Thanks Damian
This prompted me to go and look at my current plan which is default... 50% in UK! Been meaning to change it for a while but definitely on it now
I like this guy easy to follow videos 👍🏽
Thank you, been looking at my people's pension for a while now and its peforming so badly. Already maxed out my matched contribution.
Done my research and will definitely be switching to the options as recommended so eloquently by your good self.
Got 23 years to retirement, so feel confident in the change.
Thank you Damo! I'm out of UK now but I wish I knew this 10 years ago. This is really valuable information .I kept opting out of company pensions every time I switched jobs/companies. My thought process was, I'm not sure I'll live that long and I might as well make the most of my money while I'm alive. 10 years later here I am wishing I opted into every company pension. Also, cos I've moved so many jobs, the little pension I had accumulated is scattered over 4 or 5 different providers. And all in their default pots with ridiculously high fees.
Cheers for all the in-depth advice Damien! I'm self employed, running a limited company. About 5 years ago I realised I didn't have anything set up for pension, it hadn't even crossed my mind. I got started up with Pension Bee and it's been a breeze so far. I'm able to send contributions straight from my company so it's tax-friendly, and I can (to an extent) control how much risk I want. I'm young enough so I'm going for high risk. When I hit 40 maybe I'll turn it down to a safer plan.
You play Gran Turismo 14:20 👀.
Great video I've been meaning to do this with all my work place pensions over the years
Hi Damien. Thanks for another great video highlighting the importance of our pensions and future financial planning.
In relation to adding other pension providers, could you look at adding Scottish Widows to the Google sheets document? It would be most appreciated. Many thanks and keep up the great work! 👍🏼