I Have a great investment Vehicle called a pension . I take your money for decades and can change the rules on a daily basis to suit me & change the age you get your pension to whatever age I like .I could also use it as a way to steal your state pension away as I deem you dont need it . Any takers for that ?
It’s only real benefit is to shelter any gains from tax but they get you in other ways and also inflation is always eating away at it. At least DB pensions were and are inflation hedged and guaranteed. Now with DC pensions they not only want to expose your pension vehicle to market risk and no protection from inflation but at the same time they want to steal some of it so they can spend it as they wish. No thavks!
Yes definitely still worth it for the tax relief. I think it’s more important than ever to use your pension money than seeing it as a vehicle for inheritance. James Shack also did a great video on this recently too.
Definitely- looking abroad - would be useful to understand how to move your pension aboard but from what I’ve read there is tax due if you try to do that!
Save into a pension, retire early and run it down to zero by the time your state pension starts. Have nothing or very little in the bank when your state pension starts and claim as much as you can.
Sad but true. If you have cash in your pockets come retirement because you saved diligently, the government will tax you to the eyeballs. Be broke on the other hand, everything is sorted including elder care.
Great advice . Look at the people with private pensions now losing their winter fuel because they had a small private pension. If they wasted all their money they get the fuel allowance & pension credit. So save to be told you've worked too hard & are too wealthly.
So you think living on the breadline on state handouts will be a good way to spend the last 15 years or so of your life? Make yourself poor in order to get benefits? Good luck
@@iheardyoulikeme yes you will get free elder care if you are penniless, but what will it be like? The way things are going in the UK it will be a bed in a ward with half a dozen others, because local authorities aren't going to have any money to give you a nice little room of your own with en suite bathroom. I'm quite happy for my pension, savings and house to pay for me to live out my days in a 5 star care home.
I think it's time to move assets out of these high taxation/cost of living economies and seek out lower cost economies where your assets can go further/or you can live a simpler life, personally.
Please can you do a video on self assessment for high tax payers. I don’t understand it, I am a high tax payer and I have never done a self assessment.
With the recent changes to inheritance tax, it’s interesting to consider how they impact long-term financial planning. Do you think people will start prioritizing investments over pensions now?"
Sometimes, sharing personal experiences can break the ice. Have you considered starting the conversation by sharing your own financial goals or challenges to make them feel more comfortable opening up?
A tough decision these days, especially when comparing pensions to other investment vehicles. Have you looked into alternatives that might offer more tax advantages right now?"
Pensions can accumulate a lot over time, regardless of tax changes. Do you see the long-term benefits of a pension still outweighing short-term tax concerns?
Thanks for sharing, I just looked him up on the web and I would say he really has an impressive background in investing.. I will write him an e-mail shortly.
Really informative video on the upcoming changes to inheritance tax and how it impacts pensions. It's definitely a big shift for those planning their retirement. I appreciated the discussion on strategies to mitigate these new tax implications-really makes you rethink how to manage pension pots effectively in light of the changes.
Yep saving into a pension is a must not doing it to avoid taxes in the future makes little sense a private pension gives you choices regardless of weather its subject to taxes.
Is pension still worth the time when we can buy property asset in a company and via a trust so the kids become directors and inherit the assets with the life insurance via a trust? Claims expenses against the profits to keep taxes low and pay everyone in the company dividends up to the 8.75% threshold and not bother with a pension. Ofc pay the min required into the state pension for 20 years and have both rental income and pension then live offshore still procuring more commercial rental assets. So is pension worth the focus ?
Still better than nothing but it does sometimes feel deflating wondering what's next.. 25% Tax free removal, Means testing pensions etc. Feels the government want to encourage people to save for their retirement just to take away any benefits.
I may have missed this in the video but what if you invest into a stocks and shares isa as your retirement plan rather than a traditional pension, would my children be subject to inheritance tax in the same way as inheriting a pension ?
Yes they would. You can transfer your ISA yearly (i.e. 20,000£ per annum per child) to your children but you cannot transfer your pension to your children when you are alive. You have more control over your ISA than pension.
Well pensions hopefully is what it will be...use when you are older and retired. With technology and medicine we we living longer that we used to in the past. There is pension tax relief which is free money even rhpigh we pay taxes. Although pensions dont guarantee profit every year. Also governments change hands every 4 years (normally) and with it so do tax rates.
I never trusted pensionsand have always questioned it,yes they top it up by 25 % but like my dad always said nothing is for free,I invest for my pension in stocks through my stocks and shares isa,the day a government decides to tackle the stocks and shares isa that will be they day I leave this country because there's no incentives anymore. I do max it out every year I love that flexibility where I decide how to invest my money and have access to it anytime.The uk does not want its people to prosper and it's clear as day now such a shame.
If your employed and your employer is paying in use a SIPP if your self employed use an ISA with the loss of IHT benifots I as a company owner will no longer fund a SIPP for retirement two of your Largest assets are now under the IHT threat your home and your Pension this is a run to the bottom in the uk But it should be the other way around Means testing on state pension is next on the hit list
Is saving and investing in a pension still worth it? Comment below
I Have a great investment Vehicle called a pension . I take your money for decades and can change the rules on a daily basis to suit me & change the age you get your pension to whatever age I like .I could also use it as a way to steal your state pension away as I deem you dont need it . Any takers for that ?
It’s only real benefit is to shelter any gains from tax but they get you in other ways and also inflation is always eating away at it.
At least DB pensions were and are inflation hedged and guaranteed.
Now with DC pensions they not only want to expose your pension vehicle to market risk and no protection from inflation but at the same time they want to steal some of it so they can spend it as they wish. No thavks!
Yes definitely still worth it for the tax relief. I think it’s more important than ever to use your pension money than seeing it as a vehicle for inheritance. James Shack also did a great video on this recently too.
Good point.
Definitely- looking abroad - would be useful to understand how to move your pension aboard but from what I’ve read there is tax due if you try to do that!
Save into a pension, retire early and run it down to zero by the time your state pension starts. Have nothing or very little in the bank when your state pension starts and claim as much as you can.
Sad but true. If you have cash in your pockets come retirement because you saved diligently, the government will tax you to the eyeballs. Be broke on the other hand, everything is sorted including elder care.
Great advice . Look at the people with private pensions now losing their winter fuel because they had a small private pension. If they wasted all their money they get the fuel allowance & pension credit. So save to be told you've worked too hard & are too wealthly.
So you think living on the breadline on state handouts will be a good way to spend the last 15 years or so of your life? Make yourself poor in order to get benefits? Good luck
@@iheardyoulikeme yes you will get free elder care if you are penniless, but what will it be like? The way things are going in the UK it will be a bed in a ward with half a dozen others, because local authorities aren't going to have any money to give you a nice little room of your own with en suite bathroom. I'm quite happy for my pension, savings and house to pay for me to live out my days in a 5 star care home.
@ too right. Best to be in control and determine our future rather than the government.
I think it's time to move assets out of these high taxation/cost of living economies and seek out lower cost economies where your assets can go further/or you can live a simpler life, personally.
Please can you do a video on self assessment for high tax payers. I don’t understand it, I am a high tax payer and I have never done a self assessment.
Yes, of course it is. Where else can you get an immediate tax break on the cash in and cash out?
Good to have Mary back. I was wondering where she was !. This is very educative
❤️❤️
With the recent changes to inheritance tax, it’s interesting to consider how they impact long-term financial planning. Do you think people will start prioritizing investments over pensions now?"
Sometimes, sharing personal experiences can break the ice. Have you considered starting the conversation by sharing your own financial goals or challenges to make them feel more comfortable opening up?
A tough decision these days, especially when comparing pensions to other investment vehicles. Have you looked into alternatives that might offer more tax advantages right now?"
Pensions can accumulate a lot over time, regardless of tax changes. Do you see the long-term benefits of a pension still outweighing short-term tax concerns?
@@ArthurJones-v2ido you mind recommending a knowledgeable advisor? I'm dire In need of one.
Thanks for sharing, I just looked him up on the web and I would say he really has an impressive background in investing.. I will write him an e-mail shortly.
Really informative video on the upcoming changes to inheritance tax and how it impacts pensions. It's definitely a big shift for those planning their retirement. I appreciated the discussion on strategies to mitigate these new tax implications-really makes you rethink how to manage pension pots effectively in light of the changes.
If my workplace pension doesn't include an employer match, would it be worth looking at a SIPP?
Are you a basic or higher rate tax payer?
@TheHumblePenny Basic
Yep saving into a pension is a must not doing it to avoid taxes in the future makes little sense a private pension gives you choices regardless of weather its subject to taxes.
Is pension still worth the time when we can buy property asset in a company and via a trust so the kids become directors and inherit the assets with the life insurance via a trust? Claims expenses against the profits to keep taxes low and pay everyone in the company dividends up to the 8.75% threshold and not bother with a pension. Ofc pay the min required into the state pension for 20 years and have both rental income and pension then live offshore still procuring more commercial rental assets. So is pension worth the focus ?
Good morning Ken and Mary, Thank you for sharing your wisdom. Advice noted. It is none-the-less a very sad situation. All the best, Al 👍
Cheers, Al.
Is there a petition
Still better than nothing but it does sometimes feel deflating wondering what's next.. 25% Tax free removal, Means testing pensions etc. Feels the government want to encourage people to save for their retirement just to take away any benefits.
I may have missed this in the video but what if you invest into a stocks and shares isa as your retirement plan rather than a traditional pension, would my children be subject to inheritance tax in the same way as inheriting a pension ?
Yes they would. You can transfer your ISA yearly (i.e. 20,000£ per annum per child) to your children but you cannot transfer your pension to your children when you are alive. You have more control over your ISA than pension.
@ that’s really helpful mate thanks, it’s a scandal how they’re making it this difficult to leave something for our families
Yes if your estate breaches your nil rate band
Well pensions hopefully is what it will be...use when you are older and retired. With technology and medicine we we living longer that we used to in the past.
There is pension tax relief which is free money even rhpigh we pay taxes. Although pensions dont guarantee profit every year.
Also governments change hands every 4 years (normally) and with it so do tax rates.
Very much considering moving abroad later in life.
Thanks for sharing. Where to?
@TheHumblePenny don't know how sensible it is but my first thought is Jamaica. But with my skillset, I'm quite open.
It’s worth it to get my employers’ contributions which I wouldn’t get otherwise
I never trusted pensionsand have always questioned it,yes they top it up by 25 % but like my dad always said nothing is for free,I invest for my pension in stocks through my stocks and shares isa,the day a government decides to tackle the stocks and shares isa that will be they day I leave this country because there's no incentives anymore. I do max it out every year I love that flexibility where I decide how to invest my money and have access to it anytime.The uk does not want its people to prosper and it's clear as day now such a shame.
Thanks for sharing all these wonderful information
If your employed and your employer is paying in use a SIPP if your self employed use an ISA with the loss of IHT benifots I as a company owner will no longer fund a SIPP for retirement two of your Largest assets are now under the IHT threat your home and your Pension this is a run to the bottom in the uk But it should be the other way around Means testing on state pension is next on the hit list
What utter rubbish “a tax on aspiration”. It was an utter disgrace that Osbourne allowed pension to be used as an inheritance vehicle.
Of course its worth it if you use it as a pension and not a tax avoidance scheme
It may make sense you use sipp wrapper for a non employed spouse upto £270 K? Don’t you think?
This is frustrating
setting up trusts is exp and tax on any income is charged at the highest marginal rate.
Its greed. Plain and simple. I want your money even thoigh you earnt it. Thieves
Same as the rest of IHT. Pay 40% tax whilst working and have another 40% taken wen you die.
No they’re not worth it, but the tax advantages beat anything else the majority of people are willing to do.