Hi great videos. Our company is currently moving the pension scheme to an AON master trust. Can you please do a video on mastertrusts. Are they safe? Are they protected? Thanks
Master trusts are increasingly seen as an effective way to outsource pensions while retaining strong trust-based governance. “Proper investment” = cash secured
I'm 49 and newly retired with about 3million outside retirement funds, no debt, and adequate dollars in retirement funds compared to my portfolio balance over the past 3 years till date. Tbh, the role of an inv-advisor can only be overlooked, not denied. Just have to do your research in finding a reliable one!
I was looking for a complete wealth management solutions firm, which would simplify & rationalize my portfolio. Kevin S. Mikan and BYW stepped up to the challenge and have been providing top-notch advisory & management of my funds ever since.
Personally I'm happy to treat the state pension as my annuity, £10kpa guaranteed inflation linked for life is plenty, I'd rather invest the rest. Also I don't believe in the growth v income debate. I just go for total return, mostly index funds and I dabble less than 20% of my net worth in some individual shares.
One scenario that is rarely, if ever, mentioned and yet must be very common is that many retirees are part of a couple. One partner may have all the skills necessary to manage their pension requirements but the the other partner may not. It is almost inevitable that at some point one partner will be left on their own or that one partner will be incapacitated by illness. Will they be able to manage? Has their potential income been forecast? Is their a plan for the sole remaining partner and, if there is, do they know what it is?
I think 60% to 70% of all trades fail. For me, any strategy must start by looking at the sentiment and looking for opportunities in the opposite direction. Being conversant with the market is critical to successfully mastering the market and with a professional guiding be, I rarely fail.
@@ChrisShawUK im the same and I have more invested and DB scheme as well we married in our 50’s I have 3 kids our house is tenants in common so our 50% each does not automatically pass to the other. I have made provisions in my will for my wife but also my kids, my wife will not get everything we have very much worked on what we had before marriage is our own and not automatically passing to each other. She has made provision for her grandkids and nothing for her daughter who has tried to bleed her dry at times
Addressing pension in my early 50’s has enabled me to be OK plus inheritance has helped My attitude is I have a full state pension inflation proofed DB scheme £7K plus £47 Tax free DC schemes at £200k currently and still working and saving. Wife with full state as well when we retire. 3 years max. House almost paid which we could downsize as we get older in our pension years. Rental income at £1100 a month currently on £160K of property. We’re both in modest paid jobs now as I was made redundant at 61 and new job 50% of my previous, but we can manage ok now, we will access DC pots more in first ten years and hopefully enjoy life away from work. 75 plus things will slow down and spending will reduce, my plans will then focus on how to stop tax man / government getting my money and how to get it to my kids
@@MeaningfulMoney I like to think so, through your site I was told Pension pots not part of my estate in death so I have my wife and kids as named beneficiaries in my will, life insurance in trust etc to ensure monies go where I want and minimise tax position
In the right circumstances, David, it’s a great idea. Tread carefully and do your homework, and still treat it as something of a last resort after considering downsizing or moving to a lower cost area. If it helps, I arranged one for my own parents - it was definitely the right thing to do there…
Whenever the subject of equity release comes up I point out the number of people I've known who move in their 70s. A lady at church moved literally 500m down the road from a four bed house to a two bed bungalow. By the time you considered Estate agents fees, stamp duty, etc there was hardly any financial gain but she ended up in a far more suitable property. Would that be possible after Equity Release ?
@@MrDuncl And surely she also ended up with a much cheaper home to run (especially with current energy costs) which year on year could save tens of thousands.
Hi Pete I'm looking to buy a bungalow and thinking about renting out my current property for 2 to 3 years until the market recovers when I can get a better price, I know if I sell my current property within 3 years I can claim back the extra 3% stamp duty I would of paid but will I then have to pay CGT on that sale as it was a rental property?
I’m coming up to retirement. I’ve changed jobs and companies so have a raft of various pensions in my life. I’m going for income drawdown but have I guess fairly typical questions all face 1/ Should I combine all 7 pensions from various companies, standard life, Ageon, L&G etc into one scheme and one company 2/ with northern Rock going bust and government only guarantees 80k deposits is same on pension schemes, so better to not have one scheme even if easier to manage 3/ I’d like to take the 25% tax free but how’s that work ? Is it 25% from each scheme, or can I close the smaller ones which combine T to 25% of my total across all the schemes ? Or do I combine those smaller ones into one of the others then take 25% out of that ?
I gave myself a 5 for Need For Guarantees but a middle score for Managing a Portfolio. Luckily the majority of my pension is DB so I only need to think about the AVCs. the investments that are nothing to do with my pension, and whether they would be better spent on something like solar panels.
I have similar situation. At 61 next month, am planning on retiring at 65 with DB pension just hitting the LTA and then the state pension at 67 pushing me into scary big tax bracket that i want to avoid. Quandry....max out income or take tax free lump sum to keep below big tax?
@@jjaejones To add another question into the mix what is your DB schemes multiplier. The one I am in is 20 but I have heard of schemes where it is much higher. Something worrying that I just calculated is that at the current rate four years of half inflation pay rises will send me through the LTA and that doesn't even include paying anything else in.
@@MrDuncl it's the civil service career average scheme, not final salary. I transferred in and consolidated all previous when I joined 8 years ago. It bought me lots of back years so very happy position now, best decision. Always had company pensions.
@@jjaejones Ours switched to career average as well. With CPI as it is, the scheme rules say that there should be a 6% uplift because of inflation in April. Hopefully, the BOE will get inflation down or we will end up with large pensions that won't actually buy very much.
Hi. Thanks for the video. One thing, In retirement I expect to need more money between the ages of (say) 60 and 70 than between 70 and 80, even less should I reach 80. It might be good content to hear your thoughts on how best to "front load" or tier pension planning to achieve this :-)
Ooh, will look forward to that. I’ll need most money between first retiring and state pension age, about 10 years, then gradually reducing, like Chris said. Not great for sequence of returns risk, but I’m sure there are plenty like me.
On the surface you'd think best to use drawdown for the fun years, then switch to an annuity for guaranteed income when older (and the annuity would be cheaper) - but I would love to see what Pete suggests!
Steve 2-5-5-4-3 thanks for the information and feedback, I broadly agree. I'm 80% happy (don't want to say confident) that I can avoid sequence of return risk as my investments have inbuilt buffers and my needs are below natural yield. I accept I'm sacrificing total return in exchange for less volatile income and at some point the numbers might persuade me to switch some funds to an annuity. The score for a legacy is more about me hedging my bets on later life needs. The first big step is coming soon, property downsizing and relocating!
Steve I hope relocating works,I moved 5 years ago mortgage in theory till I’m 73 but it’s more than 50% paid after 5. Have said I’ll leave this home in a box the way I feel about it. Have addressed finances massively in the last 8-9 years to the extent nil credit card debt other than short term on zero % card. Used inheritance money to invest in pension and property, Biggest risk to my pension is a loss of health and needing a care home. Current UK situation means. Your wealth is gobbled up if you need a care home and live 2 years plus in one.
Hi great videos. Our company is currently moving the pension scheme to an AON master trust. Can you please do a video on mastertrusts. Are they safe? Are they protected? Thanks
Master trusts are increasingly seen as an effective way to outsource pensions while retaining strong trust-based governance.
“Proper investment” = cash secured
And by proper investing you mean what exactly? I am eager to get into the financial markets but I don’t get the hang of it.
I'm 49 and newly retired with about 3million outside retirement funds, no debt, and adequate dollars in retirement funds compared to my portfolio balance over the past 3 years till date. Tbh, the role of an inv-advisor can only be overlooked, not denied. Just have to do your research in finding a reliable one!
In the right circumstances, Wallace, it's a great idea. And especially for rookies wanting to get in!
I was looking for a complete wealth management solutions firm, which would simplify & rationalize my portfolio. Kevin S. Mikan and BYW stepped up to the challenge and have been providing top-notch advisory & management of my funds ever since.
Excellent content as always. Can you do more on cash flow ladder/buckets pls?
The problem is I am part of a couple with very different scores, especially life expectancy.
Really good this Pete. Reminds me of Wade Pfau's RISA scorecard. (I'm sure their lawyers will be in touch! 😂🙃)
Loved the thumbnail.
Yeah, I’ve bought the RISA but haven’t taken it yet. Just got thinking about the idea is all. Hopefully I’ll avoid a cease and desist!
Personally I'm happy to treat the state pension as my annuity, £10kpa guaranteed inflation linked for life is plenty, I'd rather invest the rest.
Also I don't believe in the growth v income debate. I just go for total return, mostly index funds and I dabble less than 20% of my net worth in some individual shares.
Alongside the scoring video this has been really helpful and given me much food for thought, thank you
0:06 There's no such thing as messing up. There are just "happy little accidents" as you know full well Bob...
Ha! that's true!
One scenario that is rarely, if ever, mentioned and yet must be very common is that many retirees are part of a couple. One partner may have all the skills necessary to manage their pension requirements but the the other partner may not. It is almost inevitable that at some point one partner will be left on their own or that one partner will be incapacitated by illness. Will they be able to manage? Has their potential income been forecast? Is their a plan for the sole remaining partner and, if there is, do they know what it is?
Very good point Mike. I'm that person in our couple, but I don't know what would happen if I wasn't around.
I think 60% to 70% of all trades fail. For me, any strategy must start by looking at the sentiment and looking for opportunities in the opposite direction. Being conversant with the market is critical to successfully mastering the market and with a professional guiding be, I rarely fail.
Having an investment adviser is the best way to go about the market right now
@@ChrisShawUK im the same and I have more invested and DB scheme as well we married in our 50’s I have 3 kids our house is tenants in common so our 50% each does not automatically pass to the other.
I have made provisions in my will for my wife but also my kids, my wife will not get everything we have very much worked on what we had before marriage is our own and not automatically passing to each other. She has made provision for her grandkids and nothing for her daughter who has tried to bleed her dry at times
1-1-3-1-3. None of the examples were any where near my scoring. I was hopeful there would be a broad range of examples
Canada Life are nearly always one of the highest psying annuity providers.
Relate very much to Steve. Great video thanks!
Glad it was helpful, Tom!
Addressing pension in my early 50’s has enabled me to be OK plus inheritance has helped
My attitude is I have a full state pension inflation proofed
DB scheme £7K plus £47 Tax free
DC schemes at £200k currently and still working and saving.
Wife with full state as well when we retire. 3 years max.
House almost paid which we could downsize as we get older in our pension years.
Rental income at £1100 a month currently on £160K of property.
We’re both in modest paid jobs now as I was made redundant at 61 and new job 50% of my previous, but we can manage ok now, we will access DC pots more in first ten years and hopefully enjoy life away from work. 75 plus things will slow down and spending will reduce, my plans will then focus on how to stop tax man / government getting my money and how to get it to my kids
All sounds as if you’re thinking things through perfectly!
@@MeaningfulMoney I like to think so, through your site I was told Pension pots not part of my estate in death so I have my wife and kids as named beneficiaries in my will, life insurance in trust etc to ensure monies go where I want and minimise tax position
Hi Pete would love your thoughts on equity release, I have no children, so not worried about leaving any money
In the right circumstances, David, it’s a great idea. Tread carefully and do your homework, and still treat it as something of a last resort after considering downsizing or moving to a lower cost area.
If it helps, I arranged one for my own parents - it was definitely the right thing to do there…
Thanks for your thoughts, still have 10-15 years until retirement but it’s something I am thinking of doing to top up my pension
Whenever the subject of equity release comes up I point out the number of people I've known who move in their 70s. A lady at church moved literally 500m down the road from a four bed house to a two bed bungalow. By the time you considered Estate agents fees, stamp duty, etc there was hardly any financial gain but she ended up in a far more suitable property.
Would that be possible after Equity Release ?
@@MrDuncl And surely she also ended up with a much cheaper home to run (especially with current energy costs) which year on year could save tens of thousands.
Hi Pete I'm looking to buy a bungalow and thinking about renting out my current property for 2 to 3 years until the market recovers when I can get a better price, I know if I sell my current property within 3 years I can claim back the extra 3% stamp duty I would of paid but will I then have to pay CGT on that sale as it was a rental property?
This video was so useful. Thanks
I’m glad - thank you 👍🏻🙏🏻
Thumbnail made me laugh.
I’m glad, Sweaty!
I’m coming up to retirement. I’ve changed jobs and companies so have a raft of various pensions in my life. I’m going for income drawdown but have I guess fairly typical questions all face
1/ Should I combine all 7 pensions from various companies, standard life, Ageon, L&G etc into one scheme and one company
2/ with northern Rock going bust and government only guarantees 80k deposits is same on pension schemes, so better to not have one scheme even if easier to manage
3/ I’d like to take the 25% tax free but how’s that work ? Is it 25% from each scheme, or can I close the smaller ones which combine T to 25% of my total across all the schemes ? Or do I combine those smaller ones into one of the others then take 25% out of that ?
How far ahead do you plan for losing a partner?
I gave myself a 5 for Need For Guarantees but a middle score for Managing a Portfolio. Luckily the majority of my pension is DB so I only need to think about the AVCs. the investments that are nothing to do with my pension, and whether they would be better spent on something like solar panels.
I have similar situation. At 61 next month, am planning on retiring at 65 with DB pension just hitting the LTA and then the state pension at 67 pushing me into scary big tax bracket that i want to avoid. Quandry....max out income or take tax free lump sum to keep below big tax?
@@jjaejones To add another question into the mix what is your DB schemes multiplier. The one I am in is 20 but I have heard of schemes where it is much higher.
Something worrying that I just calculated is that at the current rate four years of half inflation pay rises will send me through the LTA and that doesn't even include paying anything else in.
@@MrDuncl it's the civil service career average scheme, not final salary. I transferred in and consolidated all previous when I joined 8 years ago. It bought me lots of back years so very happy position now, best decision. Always had company pensions.
@@jjaejones Ours switched to career average as well. With CPI as it is, the scheme rules say that there should be a 6% uplift because of inflation in April. Hopefully, the BOE will get inflation down or we will end up with large pensions that won't actually buy very much.
Solar panels still have a payback of 15 years or more in most cases
Team Steve 👍🏻
Hi. Thanks for the video. One thing, In retirement I expect to need more money between the ages of (say) 60 and 70 than between 70 and 80, even less should I reach 80. It might be good content to hear your thoughts on how best to "front load" or tier pension planning to achieve this :-)
Hold that thought, and stay tuned for content on exactly this subject. Thanks Chris!
On hearing that I have subscribed. After 80 people tend to spend less as their ability to get about.
Ooh, will look forward to that. I’ll need most money between first retiring and state pension age, about 10 years, then gradually reducing, like Chris said. Not great for sequence of returns risk, but I’m sure there are plenty like me.
@@stephengreen2626 unless they need care, at home or residential.
On the surface you'd think best to use drawdown for the fun years, then switch to an annuity for guaranteed income when older (and the annuity would be cheaper) - but I would love to see what Pete suggests!
Steve 2-5-5-4-3 thanks for the information and feedback, I broadly agree. I'm 80% happy (don't want to say confident) that I can avoid sequence of return risk as my investments have inbuilt buffers and my needs are below natural yield. I accept I'm sacrificing total return in exchange for less volatile income and at some point the numbers might persuade me to switch some funds to an annuity. The score for a legacy is more about me hedging my bets on later life needs. The first big step is coming soon, property downsizing and relocating!
Steve I hope relocating works,I moved 5 years ago mortgage in theory till I’m 73 but it’s more than 50% paid after 5. Have said I’ll leave this home in a box the way I feel about it.
Have addressed finances massively in the last 8-9 years to the extent nil credit card debt other than short term on zero % card. Used inheritance money to invest in pension and property,
Biggest risk to my pension is a loss of health and needing a care home. Current UK situation means. Your wealth is gobbled up if you need a care home and live 2 years plus in one.