Thanks for posting this, it was super useful and considered issues I had not thought of. I will definitely save it and plug it into my retirement planning.
When you think you pretty much know all there is to know about pensions .. then learn something new and relevant. That's precisely why I subscribe, watch and listen. Thank you, Ian. I enjoyed listening to your strategies, too.
I am planning on downsizing house (no mortgage) using the tax paid lump to buy a fixed term annuity product. Then using ufpls to skate under tax limits. This is tax efficient as you are only paying tax on the interest element of the product
Very informative Just to clarify (I was not aware), after 75, you loose the 25% tax free part of a pension withdrawal so all withdrawals after 75 is subject to income tax at the nominal rate.?
Hi Ian. Good to speak to you earlier. Did your video jump to the FAD vs UFPLS section? I seem to have missed the lead into that section. Made it sound like FAD was better?
FAD is potentially better as you defer paying income tax. It works best if you aren't a 40% tax payer in later life, your investment returns exceed inflation and income tax rules don't drastically change in the future.
Great video, I understood everything you explained But a question please Would you expect an ongoing advisor of 6 years to charge a client 2% extra to access tax free cash (this equated to 8% on the money actually received) If so, does this altar the advice given hear. If not, why did this happen to me earlier this year? I’m 67 and have a private pension…..
@ I’m talking to the my case handler for my FOS complaint tomorrow £8k for less than a days work definitely does not sound right to me either! She’s been fired 4 months ago btw and win or lose I recoup in 2 years…..
FOS are incredibly slow. Unfortunately it's not just about the charge being excessive you might need to also show that advice was lacking or unsuitable
@@IanShadrackInvestingslow definitely I found out after I could have transacted for free but was not told of this option In fact told it would be blocked by M &G without advice Not so, I took out a further much smaller amount after simply to prove it QED
@@markpowellmp Yes Mark these kind of charges are ridiculous on top of their annual charges, that's why people like Ian are so important to help fill the information gap. Thank you so much for putting together these videos Ian.
Sorry this is a long comment... If you are in the 40% band in employment with a partner with no income. Both will have full state pension. Is there a scenario were contributing gross £3,600 (£2,880 net) to setup a partners pension (believe 20% saving but will be in 20% tax band as pension increases with 25% tax free) is better than salary sacrifice where you save 40% and keep within 20% tax band in retirement but no tax free amount as will exceed £268,275 limit. I think is only makes sense if I cannot stay within the 20% band and guessing the future is impossible. Think its a 50/50 call anyone have advice?
The best thing to do is to have a wealth planning spreadsheet that has all the tax rules for saving money into pension and taxing money in retirement. As you will spend tens of thousands of pounds in tax in retirement, it can be a good investment that pays back several times over. ianshadrack.com/retirement-calculator/
is it worth me using net pay to contribute to a partners SIPP for bridge purposes? eg to build up specifically to cover from retirement to state pension? Alternatives would be : 1) put it in my pension but I’d be 20% tax relief and 20% tax coming out (I’d already take my max tax free); 2) put it in an ISA so no tax but no tax relief either
For more information sign up to my newsletter at ianshadrack.com/
Thanks for posting this, it was super useful and considered issues I had not thought of. I will definitely save it and plug it into my retirement planning.
When you think you pretty much know all there is to know about pensions .. then learn something new and relevant. That's precisely why I subscribe, watch and listen. Thank you, Ian. I enjoyed listening to your strategies, too.
I am planning on downsizing house (no mortgage) using the tax paid lump to buy a fixed term annuity product. Then using ufpls to skate under tax limits.
This is tax efficient as you are only paying tax on the interest element of the product
Very informative Just to clarify (I was not aware), after 75, you loose the 25% tax free part of a pension withdrawal so all withdrawals after 75 is subject to income tax at the nominal rate.?
@@philipwood123 if you are alive you still get 25% tax free but if you die, all the pension is taxable after 75
Hi Ian. Good to speak to you earlier. Did your video jump to the FAD vs UFPLS section? I seem to have missed the lead into that section. Made it sound like FAD was better?
FAD is potentially better as you defer paying income tax. It works best if you aren't a 40% tax payer in later life, your investment returns exceed inflation and income tax rules don't drastically change in the future.
Great video, I understood everything you explained But a question please
Would you expect an ongoing advisor of 6 years to charge a client 2% extra to access tax free cash (this equated to 8% on the money actually received)
If so, does this altar the advice given hear. If not, why did this happen to me earlier this year? I’m 67 and have a private pension…..
@@markpowellmp doesn't sound right to me
@ I’m talking to the my case handler for my FOS complaint tomorrow
£8k for less than a days work definitely does not sound right to me either!
She’s been fired 4 months ago btw and win or lose I recoup in 2 years…..
FOS are incredibly slow. Unfortunately it's not just about the charge being excessive you might need to also show that advice was lacking or unsuitable
@@IanShadrackInvestingslow definitely
I found out after I could have transacted for free but was not told of this option
In fact told it would be blocked by M &G without advice
Not so, I took out a further much smaller amount after simply to prove it QED
@@markpowellmp Yes Mark these kind of charges are ridiculous on top of their annual charges, that's why people like Ian are so important to help fill the information gap. Thank you so much for putting together these videos Ian.
Sorry this is a long comment...
If you are in the 40% band in employment with a partner with no income. Both will have full state pension. Is there a scenario were contributing gross £3,600 (£2,880 net) to setup a partners pension (believe 20% saving but will be in 20% tax band as pension increases with 25% tax free) is better than salary sacrifice where you save 40% and keep within 20% tax band in retirement but no tax free amount as will exceed £268,275 limit. I think is only makes sense if I cannot stay within the 20% band and guessing the future is impossible. Think its a 50/50 call anyone have advice?
The best thing to do is to have a wealth planning spreadsheet that has all the tax rules for saving money into pension and taxing money in retirement. As you will spend tens of thousands of pounds in tax in retirement, it can be a good investment that pays back several times over. ianshadrack.com/retirement-calculator/
is it worth me using net pay to contribute to a partners SIPP for bridge purposes? eg to build up specifically to cover from retirement to state pension? Alternatives would be : 1) put it in my pension but I’d be 20% tax relief and 20% tax coming out (I’d already take my max tax free); 2) put it in an ISA so no tax but no tax relief either
If your partner will have unused personal allowance then yes