tl;dr following the advice on this video lead me to discover one previous employer HAS NOT PASSED ON ALL PENSION CONTRIBUTIONS THEY DEDUCTED from my payslip! Thank you so much for this video. I've always avoided looking into my pension since it is just something that sits here and takes ages. After a groan, I took your advice and logged into old company pensions and to my horror, one previous employer HAS NOT PASSED ON ALL CONTRIBUTIONS THEY DEDUCTED! They haven't contributed their portion either. I'm shocked. This is illegal and I have reported it to the Pensions Ombudsman and Pensions Regulator. Without your video this would have carried on undetected and I would have missed out on even more compound interest in the meantime. The situation is tricky because the company has since been acquired by another, so it isn't a simple case of getting in touch with them. I do believe this is the result of administrative error and not intentional but it doesn't help me either way. If anyone is still reading this, I implore you to do the boring thing and check your own pensions against your old payslips. Don't take it for granted that your employer is doing/has done the right thing. I'd also like to add how sorry I am to hear about your attack.
Damien you've done it again, I mean it when I say that when I'm over 100 years old and financially stable enough to look after myself, I'll tell my grandkids or whoever that a TH-cam channel got me here. Thanks to you, I've managed to put away nearly six figures in assets through careful safe investments. Every now and then when something scary happens in the news I can always count on you to give us a less dramatic and focused perspective. A lot of other TH-camrs and bloggers use scare tactics and are screaming at the camera. As always however, you speak in a calmer tone, and actually explain things. People don't realise that your content is absolute gold dust.
My 20 something work mate left the works pension scheme, a few years ago, because, he said: "It's better off in my pocket, than theirs." And he's not alone. I've known others do the same. He's back in the scheme, now though, but it make you worry about some people.
The only reservation I have with pensions is the constantly rising pension age as well as the impending demographic crisis of our rapidly aging crisis. I don’t have complete faith that by the time I’m in my 60’s no greedy government or banker will have tried to pilfer my pension. I am tempted to lower my contributions and invest my money myself where I see it as less vulnerable to these risks. That said, at the moment I contribute the maximum amount as my employer contributes double the amount of my contributions.
I know someone that said exactly that and I was baffled. But then I learnt that they recently bought their second home in their mid 30s (believe they’re worth 800k combined, one’s a buy to let). Rare example I know, but I wouldn’t write people off. Some seem to know what they’re doing
Great Video Damien! Maybe make a video on potential investments in this current market that would fetch substantial profit, been coming across articles on bloomberg, business insider etc about folks raking in $200K averagely in 6weeks using some sophisticated strategy and I'd love to know how.
Sorry this one is a bit of a beast! I really think pensions need more attention.. We will all get old one day and the stats around how big the shortfall will be for many are shocking. So please make this the year you take your retirement seriously.
Another great video Damien. I have pensions with previous employers that I don’t keep track of and you’ve inspired me to go back and properly get to grips with what they are. The Knight’s Tale edit was genius btw 😂
great video, maybe 30 years too late for many people. 22 years ago. I moved to the US for work. Here the majority of people were more aware of what was required for retirement and as such there were more financial vehicles to assist in the journey. Whilst the US has many issues, understanding that you and only you are responsible for your financial future was the biggest message that resonated with.
As a gift I paid into my grandchildren’s pension pot ,on birth , they still got there 20% a lot of people don’t realise that. Children get this uplift ,with a firm called Hargreaves lands down plus it cannot be squandered in early years as it is tied up until 57,
At the ripe old age of 38 my pension isn’t currently huge. I wangled a sizeable salary increase last year and after having a couple months seeing a lovely big increase in take home I’ve decided to waaaaaay up my salary sacrifice contribution. Length of service means my company provide 12% and I’m upping mine from 6% to 26% to take me back into basic tax territory and keep our child tax benefit. Emergency fund is pretty much set and will continue to top up easy access savings for house renovations and my vanguard ls100. It’s difficult parting with that much cash now but I’m hoping future me (or the family if I pop my clogs) will be grateful 🤣
Doing exactly the same with the large contribution to take me out of the child benefit pay back scam. I have 3 kids too, so quite a bit to avoid paying back.
That junior Sipp idea sounds like. a genius plan .I had only heard of junior ISAs Going to sort one for my grandson. Had Sipp for 12 years best thing I could have done with my pension .
Sh*t hot mate! Your content makes financial information interesting! I don’t want to wrap my head in cling film and slowly pass away while someone talks pensions. Only if schools would teach financial tactics and have teachers to deliver the subject in such a humorous and engaging way. Excellent bud!
Couldn’t agree more mate. People really over complicate pensions. Employers and pension providers scare people into the cautious or even balanced portfolios, full of government bonds, which helps who? Surprise surprise, the government! I moved my entire workplace balanced fund into a few low fee index funds, globally diversified, for long term higher growth at low fees. I picked iShares index trackers with US equity, UK equity, Emerging markets and developed Asia. Simple as that!
Yes "pensions are complicated" and therein lies the majority of the problem for the average person, from my experience you can do everything you are advised is right but end up shafted. I paid (over paid in fact, lots of AVC's) into a pension scheme for 18 years and ended up with less than I paid in due to corruption and negligence (pension holidays for the company, loans to the company from the pension scheme and a merger with a badly performing management only scheme) the only people who made anything from that scheme were the people who ran it and the solicitors and advisors who were involved in sorting out the legal mess at the end, 18 years is a lot of compounding to try and catch up on, and I still have to navigate buying an annuity at some point. My current pension pots are pretty dire, my own ISA and stock investments have far out-performed the pensions and, due to my age, a lot of my pensions were tied up in bonds (bonds are safe and pension companies put more of your money into them as you get closer to retirement... but they're safe, right!) bonds can't take advantage of a rising market and then came Kwarteng and May's "budget".
Fantastic vid. Opened my eyes to how much I need to catch up. Came out of my scheme to help Dave to buy a house but need to get back in this year without fail
It might be worth considering that some people may opt out due to financial struggles, not intending to work in the country for 35 years (to get the full entitlement), and/or potentially other reasons
Thanks Damien I’ve been putting off the 2 dormant pensions I have a normal one & a contracted out serps which I am probably paying double fees on both been meaning to combine the 2 into 1 but it fills me with dread. I also have another with my current employer which they have changed from 1 pension provider to another only now for our company to be sold & transferred to another company in 3 months which no doubt will be changed to another provider 🤬. I’m 57 next month & don’t have a massive pot (due to missing 15 years paying into one as I couldn’t afford the mortgage & pension contributions so one had to give) I’m hoping I can combine all 3 together depending on who our new provider might be but if not the 2 into a sipp. The whole pension thing is a nightmare & can certainly understand why most people bury their head in the sand. My personal thoughts is the government could provide a basic state pension which everyone gets & then people who work could pay additionally into that for a better pension & if you change jobs it doesn’t matter as your paying into the one fund. It’s probably too simplistic but apart from that I think a sipp is the way to go & the government force employers to contribute to the employees chosen sipp. It would nice if you could cover sipps & the different providers like pension bee & the likes. Once again thanks for your videos which have helped me seriously start thinking about finances , I now have a life strategy isa & savings isa so have made a start pension review next.
Great content and something i need to do. I’ve got multiple pensions with different companies. Some are now out of business but I guess there’s a paper trail.
Very accurate but is anyone aware that a large component of Centurions will be made up of those that have never ever worked! I have many relatives to prove that and friends too. One of whom is 72yrs old and had last worked in 1978 on a building site. The job lasted for just two months!
Spot on Damien. I am kicking myself as I converted a frozen DB pension to a DC with a company with high fees and I cannot leave for 6 years without losing more money. I bet you can guess who they are St …….. Place.
You forgot to mention how many of the current 15k are able bodied, good health, in a care home or hospital care. I would suspect quite a bit lower. Then bring that scrutiny up north and the percentage will drop massively.
I think this is your best video yet. I still can't quite believe you managed to cover so much ground in just 22 minutes, and so many valuable calls to action. Brilliant!
Auto enrolment is a good start but peanuts if you and your company make the minimum contributions. I am auto enrolled with my current employer who give the bare minimum which I do also. I then have a SIPP on the side invested in a low cost global index fund to take my total contributions up to 20%. I also changed my auto enrolment pension to 100% equity it was 80/20 as default.
I'm trying to normalise discussing money matters at work. It scares me how many people in my age group have absolutely no savings and only a NEST pension for retirement :(
40% of the UK population have less than 1 months income saved!! It is shocking and so so sad.. Money being taboo is the biggest failing imo keep doing what you do at work Emma hopefully you get through to some people,
A very common misconception that we are living longer. The average age of death has only increased as we have massively reduced child and infant mortality rates. The average person would be doing well to make it beyond their mid 80's and if you get that far your expenses if you are not in a home will likely be pretty small.
Hi Damien, thanks a ton for this video! I’m 23 and this is super helpful for understanding how to get everything in order for life ahead. Much appreciated!
Awesome Damo. When you are young (in your 20) you think you have a whole life for putting money towards a pension. Then you are in your 30 and you wonder when and where this time has gone. You try to save but it is impossible because of this and that. Luckily enough I have just increased mine to 10% but it wasn't possible a few years back. Great video as always and I like it when you recommend other creators and they do the same thing. Take care and stay safe.👏👏🖖🖖
@@DamienTalksMoney thank you Damian! I can't wait for that drink too. I said this before, I owe you a massive pint. Thanks again Damian and keep up with awesome work as always! 👏🖖🍻🍻
The effect of compound interest is one thing many ignore, if investing into a company scheme and you make it more aggressive than the default then money put in at 20 gains massively by age 60. Plus employer contribution is likewise a big pot of free money
The annoying thing in this video and the big problem in the world is homes are no longer a home, it’s an investment opportunity and it a buy to let or a airb&b etc but what you don’t consider is all the people not able to do this, no longer able to afford a home because lack of housing and this kind of stuff keeping price high, so the basically the people your renting out to, screw them I guess. What will they do as income in there retirement? I really feel gov need to fix this problem.
I'm not actually that worry, my prediction that in the next 20 years the breakthroughs in regenerative medicines will relieve much of the burden off the NHS. An the costs of the NHS might begin to come down as a nation. Care costs will go through the roof through unless there is a radical acceptance of androids looking after our relatives.
Euan mate you are so welcome. Comments like this are why I do what I do! Hope the videos can help make a positive impact on your life and one day in retirement we bump into each other and have a beer!
This is one of the best pieces of content i have ever consumed on TH-cam. My pension or lack of keeps me up at night. Thank you for this video i will take some appropriate action tomorrow.
More great content. I started ploughing into my pension about a year ago, lucky my employer gives me 10% standard then up to 4% matched. I haven’t looked at the fund but will be a tracker based on age, maybe I need to have a look at being a tad more risky for the next 10 years.
I’m fortunate to have DB pension it started paying out when I was 42 and rises by CPI. I’ve got the full state pension but that’s decades away yet. And I’m sticking 650 a month into a DC pension.
17:26 unfortunately, those plan are setup with the 3 classic approach. Plus, they have to allocate X amount of money to government bond...so, we will get always not good returns. Government need to print money. Need fresh cash to keep the wheel running, pensions are use it to oil it. In the future, pension will be paid with debt money/printed. The system will change not because a political party will take a decision, it will change when a debt financial crisis blow up the accounts. Last year, the BoE "saved" us saving the LDI market...so, pailing up more debt...
About retirements. I would argue that you cannot rely on pensions because the hedge funds that manage the investments that make up pensions could cause your pension to go to zero.
My supervisor tells me that she paid into a works pension for 15 years at a previous job, and now that she's left that job all that pension money is lost, as the company she worked for went bust. I told her that the pension, will still be there, she just needs to track it down. I pointed her in the right direction. I hope.
Great video, pensions is something most of us dont look at just because we dont understand. If I have three pensions from different jobs is it usually better to transfer the funds into just one pension or keep them as individual pensions. Thank you
Hello Damien, Thank you for the clear advices. Being in Portugal, do you know any channel similar to yours, for the Portuguese context, that you consider to be trustworthy? Thank you.
Good news. Tesla have just reduced their prices so that 55k will get me a fast Tesla when I hit retirement. 😆. Started playing into an ISA 12 months ago thanks to your videos. Global tracker. 👍👍
Wait for hydrogen cars to get more popular. Electric won't be here for long. In fact buying shares in this area may be a better option for that £55k. Japan is the biggest innovator on hydrogen at the moment
Damian, I am new to the UK and this information has been so helpful. I appreciate the clarity of the information and for you to humble state what you know and when we should add to our knowledge with others. So well done. Keep up the amazing work on your channel.
Hi Damien great video. Here's a little tip for everyone (I don't know of most people do this, but it felt like a cheat code when I did it!) - when I was 18 I opted into a private pension through my employer. They used NEST as the pension scheme. I paid 4% into it for 4 years and they contributed 4% too. When I left that job I a pot of pension money leftover but I was no longer contributing as I had left that job. So what I did was contact vanguard and get my NEST pension transfered into the vanguard retirement 65 year account. Now that's in the stock market locked in until 2065!
This thought just popped up - If you become unemployed and claim benefits, your NI payments are made for you. So don't worry about periods of being unemployed, as long as you claim benefits.
A fantastic video Damien. I'm 63 and left things way too late to take pensions seriously. I've managed to catch up a bit now. If only you were around 40 years ago!
Damien, I can’t express how helpful your content is! Can I please ask you and the audience if there is a reliable service out there that will track your pensions? On of my previous employers is refusing to answer any of my emails. I’ve asked them many times who my pension provider was and they refuse to answer. Is that even legal?
I don't need to do any of your actions but I DO need to have my annual look at my budget and see if I can up my contributions to my SIPP. Ref the "Gold dust" DB pensions the current Civil Service one (alpha) is linked to state pension age so you can't get the full wack unless you hold off until 67 or however high that climbs.
Last year the uk government spent £120B on state pensions. It would cost the government so much less if they put a lump of £5000 in a global index fund for every child born in the uk and let compound interest do the rest. About 700,000 babies where born in 2022 so that would cost £3.5B each year. Savings the tax payers 100 plus billion.
@@DamienTalksMoney I literally commented this half way through the video and you said the exact same thing lol but unfortunately government aren’t intelligent enough to think this long term.
But those savings won't kick in for 60+ years. Effectively, the idea, though a good one, means an extra £3.5bn or so a year for the next 60 years, by which time none of the current politicians will be in politics, so why would they do it? It makes little sense for them to plan 5 years ahead
@@hooksforestchinthe government could even make people pay the £5,000 back when they are in employment over a long period of time out of their wages for example £20 per month for 20 years is about £5000 and that money would pay for other children that are being born so it would even cost £3.5B per year
@@lewjg2933 so increased tax to pay for pensions now and it would be 20+ years before you could even start to get it back from the children born now. No one's voting for that and that's the constant reality of pensions, social care, energy security etc. Plus assuming a retirement age of 70 and a 5% growth rate above inflation, it would need to be about £7.5k to compound up to £250k to give about £10k pa at 4% withdrawal (which would be risky for a pension the state is sort of saying is going to be ok). And that's without deciding where it's invested - there would be pressure to only invest in UK companies so that 5% growth is shot. My guess is that the existing system will remain, with the retirement age creeping up; the triple lock watered down to allow inflation to erode the cost and; some form of testing, even if done as pension credits. Basically, assume you won't get it and treat it as a bonus if you do. In the meantime, education from the likes of Damien is so important for so many who don't understand until it's too late, at least until someone thinks to teach at least the basics of this in school
Is there pixel dying in your camera on bottom left in first section of video, or was is intentional annoying white dot so I couldn't focus on what you say?
I'll be fascinated to see if the 500000 over 100 by 2066 is true. I'll be long dead by then. I think the post war generation are the longest living. I think given our diets... environment...sedentary lives....pharma...i think you'll see the average age of death drop from 82 down to 75. My dilemma is do i boost my pension for when i live to 100 or is it possible I'll get terminal cancer and not see retirement. Its a gamble either way. But its likely most people will deal with some generative condition in their late to mid 60s. Those living to 100 are virtually a corpse for 20 years before. A lot of people i know in their 50s and 60s are not in rude health. Id say a key to reducing financial pain is keep your overheads low. Live frugally.
So important! I left my pension scheme in 2020 for almost 1 year and realised the mistake I was doing and came back crawling 😂I will blame pandemic messing up with my head heheh
Hi Damien, great video and really well explained! I have gone back to my previous employers and logged into my pensions except, I only approached employers I had since I graduated and so does not include places I worked for before and during uni. Is it worth reaching out to them too?
Damien, one of the best investing & pensions videos I've watch in a while. Love your passion and candour! As an older (60) now seasoned investor, it's great to see you highlighting things that I (now) know from experience do work... and will (in time) build wealth. Everyone in younger years should watch and take this on board, if they want a 'comfortable' and enjoyable time in their 60's+ (and yes, I know that can seem a long time away - but I'll tell you it catches up with you fast! 🙂 Keep up the excellent work, you're going to help many people get the most out of life.
Glad to see you back with another video, Damien! When you mention that we dont know what our employer pensions are up to, weirdly enough, I was tracking one of my old ones with the same thought to check it and get it sorted (maybe by moving to my VG SIPP). I came to realize its been moved to Legal and General after my employment ended and its been in some 60:40 index fund with a 0.10% fee...so I didnt bring myself to transfer it as this seemed low fee enough anyway. Maybe Im missing something, I dont know, and certainly I would prefer consolidating + more equity exposure being in my 30s but it just seemed ok enough to me. On the other end is my current employer's one with Mercer UK. Weird provider to deal with + close to 0.70% in fees + sticking us by default into its moderate fund version thats looking lame in performance even to someone with modest knowledge in index funds...the only benefit of it comes from the employer itself = if I dont wanna put a single penny of contribution, my employer just does 10% on my behalf but they will keep matching anything from me up to a point. Since I tried to set it at its most efficient its at 26% where I contribute 8%...but ill be looking to transfer this thing once done because...Mercer...
Mate sounds like you have your head firmly screwed on! With your old pension might be worth looking if you can move to a more ‘adventurous’ fund if you don’t want a 60/40 split?
Actually I stand corrected - its "L&G PMC Global Equity Fixed Weights (60:40) Index Fund 3" so its all equity but 60% UK equity allocation and rest is equity overseas...it could maybe go more adventurous but for a passive 0.10% fund,its doing alright. But again,Im surprised they didnt ditch our workplace funds into something more expensive. Most of us wouldnt have noticed for a while.
Love the video. I would also like to mention to still remember to enjoy your life and not just develop hustle culture and work yourself to the bone so you can save here, and invest there. Sometimes you just have to go on that holiday, or have that meal etc. because you never know when your life or good health is going to end. This is what I sometimes struggle with, of course I would like to save and invest, but I would also like to live my life while I'm young and have no kids or big loans.. Its a hard balance, when your income is not as big to have everything. Not all of us will live to get to enjoy our pensions, that' how it is, finding the right balance is the way to go in my book. Just my two cents :)
As usual you have done a brilliant job here. But… my fear is you’re preaching to the converted. I came to this far too late - I’m 63 years old, lucky enough to have 20 years of pension from BT, probably will sneak into the state pension when I hit 66 and then will live off savings and the money we made from downsizing our house last year. But where was this info 30 years ago? Nowhere. And where is it now? Nowhere. How much of this is taught at schools? I guess zero. FE Colleges? Zero. Universities? I bet zero. My parents did not have the fiscal knowledge to pass on, they thought their company and state pension would suffice - to be fair, they were more or less right. But those days have gone and the government need to address this now - the idea of £5k at birth and then auto enrolment is brilliant 👏👏 Why do we grant such immense power to unqualified, low IQ, talentless, self absorbed low lifes in this country? Ok, I’ll stop now as my ranting meter has just hit 10 again! Great vid Damien, should be shown to every 18 year old before they start work and every Monday morning for the rest of their career 😂😂
Damien, I love your ‘SIPP-at-birth’ idea. The benefits on a state and individual level are immense and might be applied to schemes other than pension provision e.g. health care and life insurance. I implore you to approach your local MP, or someone who has a chance of bringing your idea to the government. I would do it myself, if I had your depth of knowledge.
Hey, so if I have a Defined pension contribution with my employer, am I better to leave as is or would it be better to move it to a SIPP? I've thought about this a lot so thanks for the insights as always 👍👊
Great video Damien, and so so critical. I was in a very average position pension wise but addressed it at 50+ by getting a grip on personal finances and wiping out all credit card debt when I moved. Money that was drip feeding that debt plus work bonus and increased contributions puts me in an OK position now. It might sound harsh but wife earns full state pension as well which should she die leaves me with what I have and I lose her pension, should I die wife benefits from my DC pots so that helps negate loss of my state pension. Kids should be taught. all this so they address it as soon as start working. If you said to them do you think getting £70K is a good return on £12K investment, guess most would say yes. Well that’s what £50 a month for 40 years gets at 5% growth per annum. Company pension default 4% you plus tax relief 1% plus company 3% £50 a month which you pay half is £12K over 40 years. That of course is with no growth in income, extra contributions etc. most of us progress in work earning more as we go so can put more away this is how the government are thinking which is why we have the pension situation now and auto enrolment. If the government is wanting us to look after ourselves they should at least be educating the kids about it
As someone still on a DC pension, does it make sense to combine the pensions from all my previous companies into a SIPP or should I move it into my current pension provider?
I personally have used a SIPP as i have more control and the fees were less. But it is worth checking with an IFA to make sure you dont move a pension with benefits beyond just fees.
tl;dr following the advice on this video lead me to discover one previous employer HAS NOT PASSED ON ALL PENSION CONTRIBUTIONS THEY DEDUCTED from my payslip!
Thank you so much for this video. I've always avoided looking into my pension since it is just something that sits here and takes ages. After a groan, I took your advice and logged into old company pensions and to my horror, one previous employer HAS NOT PASSED ON ALL CONTRIBUTIONS THEY DEDUCTED! They haven't contributed their portion either. I'm shocked. This is illegal and I have reported it to the Pensions Ombudsman and Pensions Regulator. Without your video this would have carried on undetected and I would have missed out on even more compound interest in the meantime. The situation is tricky because the company has since been acquired by another, so it isn't a simple case of getting in touch with them. I do believe this is the result of administrative error and not intentional but it doesn't help me either way.
If anyone is still reading this, I implore you to do the boring thing and check your own pensions against your old payslips. Don't take it for granted that your employer is doing/has done the right thing.
I'd also like to add how sorry I am to hear about your attack.
I will make sure others read it by pinning the comment! Well done for checking sorry to hear of this situation but I am glad you caught it
Damien you've done it again, I mean it when I say that when I'm over 100 years old and financially stable enough to look after myself, I'll tell my grandkids or whoever that a TH-cam channel got me here.
Thanks to you, I've managed to put away nearly six figures in assets through careful safe investments. Every now and then when something scary happens in the news I can always count on you to give us a less dramatic and focused perspective. A lot of other TH-camrs and bloggers use scare tactics and are screaming at the camera. As always however, you speak in a calmer tone, and actually explain things.
People don't realise that your content is absolute gold dust.
My 20 something work mate left the works pension scheme, a few years ago, because, he said: "It's better off in my pocket, than theirs." And he's not alone. I've known others do the same. He's back in the scheme, now though, but it make you worry about some people.
The only reservation I have with pensions is the constantly rising pension age as well as the impending demographic crisis of our rapidly aging crisis. I don’t have complete faith that by the time I’m in my 60’s no greedy government or banker will have tried to pilfer my pension. I am tempted to lower my contributions and invest my money myself where I see it as less vulnerable to these risks. That said, at the moment I contribute the maximum amount as my employer contributes double the amount of my contributions.
I know someone that said exactly that and I was baffled. But then I learnt that they recently bought their second home in their mid 30s (believe they’re worth 800k combined, one’s a buy to let). Rare example I know, but I wouldn’t write people off. Some seem to know what they’re doing
Most poeple are finica!ly illiterate and djmb
Great Video Damien! Maybe make a video on potential investments in this current market that would fetch substantial profit, been coming across articles on bloomberg, business insider etc about folks raking in $200K averagely in 6weeks using some sophisticated strategy and I'd love to know how.
Sorry this one is a bit of a beast! I really think pensions need more attention.. We will all get old one day and the stats around how big the shortfall will be for many are shocking. So please make this the year you take your retirement seriously.
Worked for a private company 10 years ago. Would I have been automatically enrolled in a pension or is that a more recent requirement?
Love the long videos!! Love the info would happily spend my entire Friday night watching! 😂💪💪
I’m whacking as much as I can in mine .
As someone who specialises in giving pensions advice, it’s great that you are promoting the benefits ❤
@@markmahood3093 Just call them and ask mate! It is newer than 10 years i believe but worth checking.
Excellent advice Damian. I have retired on a decent pension with a reasonable amount in the bank. If I had acted earlier I could have much more to see me through to reaching "The End of the Road" (©Boyz II Men). I hope that anyone young people listening to you act now. They will regret it if they don't. Cheers
Another great video Damien. I have pensions with previous employers that I don’t keep track of and you’ve inspired me to go back and properly get to grips with what they are. The Knight’s Tale edit was genius btw 😂
great video, maybe 30 years too late for many people. 22 years ago. I moved to the US for work. Here the majority of people were more aware of what was required for retirement and as such there were more financial vehicles to assist in the journey. Whilst the US has many issues, understanding that you and only you are responsible for your financial future was the biggest message that resonated with.
As a gift I paid into my grandchildren’s pension pot ,on birth , they still got there 20% a lot of people don’t realise that. Children get this uplift ,with a firm called Hargreaves lands down plus it cannot be squandered in early years as it is tied up until 57,
At the ripe old age of 38 my pension isn’t currently huge. I wangled a sizeable salary increase last year and after having a couple months seeing a lovely big increase in take home I’ve decided to waaaaaay up my salary sacrifice contribution.
Length of service means my company provide 12% and I’m upping mine from 6% to 26% to take me back into basic tax territory and keep our child tax benefit.
Emergency fund is pretty much set and will continue to top up easy access savings for house renovations and my vanguard ls100.
It’s difficult parting with that much cash now but I’m hoping future me (or the family if I pop my clogs) will be grateful 🤣
You are doing amazing!! well done. well on your way with that level of contribution
Doing exactly the same with the large contribution to take me out of the child benefit pay back scam. I have 3 kids too, so quite a bit to avoid paying back.
That junior Sipp idea sounds like. a genius plan .I had only heard of junior ISAs Going to sort one for my grandson. Had Sipp for 12 years best thing I could have done with my pension .
Incredible gift for your grandson Mark! Securing his retirement from a young age. He is lucky to have you
Sh*t hot mate! Your content makes financial information interesting! I don’t want to wrap my head in cling film and slowly pass away while someone talks pensions. Only if schools would teach financial tactics and have teachers to deliver the subject in such a humorous and engaging way. Excellent bud!
Couldn’t agree more mate. People really over complicate pensions. Employers and pension providers scare people into the cautious or even balanced portfolios, full of government bonds, which helps who? Surprise surprise, the government! I moved my entire workplace balanced fund into a few low fee index funds, globally diversified, for long term higher growth at low fees. I picked iShares index trackers with US equity, UK equity, Emerging markets and developed Asia. Simple as that!
The current freeze on Lifetime allowance, and less so annual allowance, put up quite a barrier for those who are working on their pensions
Yes "pensions are complicated" and therein lies the majority of the problem for the average person, from my experience you can do everything you are advised is right but end up shafted. I paid (over paid in fact, lots of AVC's) into a pension scheme for 18 years and ended up with less than I paid in due to corruption and negligence (pension holidays for the company, loans to the company from the pension scheme and a merger with a badly performing management only scheme) the only people who made anything from that scheme were the people who ran it and the solicitors and advisors who were involved in sorting out the legal mess at the end, 18 years is a lot of compounding to try and catch up on, and I still have to navigate buying an annuity at some point. My current pension pots are pretty dire, my own ISA and stock investments have far out-performed the pensions and, due to my age, a lot of my pensions were tied up in bonds (bonds are safe and pension companies put more of your money into them as you get closer to retirement... but they're safe, right!) bonds can't take advantage of a rising market and then came Kwarteng and May's "budget".
JSIPP concept is something I've said for years
👏👏👏👏👏👏👏
Shame no government will do it.
People that are balancing on the break-even every month are not going to worry about these valuable advice.
Brilliant! The only TH-camr worth listening to! Well done sir 👏👏👏👏
Agree with the comment on SIPPS for children. The state pension is going to fail eventually anyway.
Fantastic vid. Opened my eyes to how much I need to catch up. Came out of my scheme to help Dave to buy a house but need to get back in this year without fail
It might be worth considering that some people may opt out due to financial struggles, not intending to work in the country for 35 years (to get the full entitlement), and/or potentially other reasons
And if you earn low wages in part time work the employer doesn't even have to contribute!! That's legal can you believe.
Thanks Damien I’ve been putting off the 2 dormant pensions I have a normal one & a contracted out serps which I am probably paying double fees on both been meaning to combine the 2 into 1 but it fills me with dread. I also have another with my current employer which they have changed from 1 pension provider to another only now for our company to be sold & transferred to another company in 3 months which no doubt will be changed to another provider 🤬. I’m 57 next month & don’t have a massive pot (due to missing 15 years paying into one as I couldn’t afford the mortgage & pension contributions so one had to give) I’m hoping I can combine all 3 together depending on who our new provider might be but if not the 2 into a sipp.
The whole pension thing is a nightmare & can certainly understand why most people bury their head in the sand.
My personal thoughts is the government could provide a basic state pension which everyone gets & then people who work could pay additionally into that for a better pension & if you change jobs it doesn’t matter as your paying into the one fund. It’s probably too simplistic but apart from that I think a sipp is the way to go & the government force employers to contribute to the employees chosen sipp.
It would nice if you could cover sipps & the different providers like pension bee & the likes.
Once again thanks for your videos which have helped me seriously start thinking about finances , I now have a life strategy isa & savings isa so have made a start pension review next.
Hi Damien, I hear your passion and think this is the best video you have made, well done and keep up the good work!
Great content and something i need to do. I’ve got multiple pensions with different companies. Some are now out of business but I guess there’s a paper trail.
Try the government's free Pension Tracing Service.
If pension company is out of business? Does it means you investor lost all money? Or uk government or anyone protect ppl investment?
Very accurate but is anyone aware that a large component of Centurions will be made up of those that have never ever worked!
I have many relatives to prove that and friends too. One of whom is 72yrs old and had last worked in 1978 on a building site. The job lasted for just two months!
You are a fantastic teacher!
These videos are some of the best content available on youtube. Thank you for YOUR time! 🙏
Spot on Damien. I am kicking myself as I converted a frozen DB pension to a DC with a company with high fees and I cannot leave for 6 years without losing more money. I bet you can guess who they are St …….. Place.
You forgot to mention how many of the current 15k are able bodied, good health, in a care home or hospital care.
I would suspect quite a bit lower.
Then bring that scrutiny up north and the percentage will drop massively.
I changed my pension plan to passive global equity from an active managed and saved 1% in fees
Appreciated all the advice, but the knights tale clip was the icing on the cake.
I think this is your best video yet. I still can't quite believe you managed to cover so much ground in just 22 minutes, and so many valuable calls to action. Brilliant!
Thank you so much for this. I was worried it was information overload but this is so good to read. Thank you as always for watching Alastair.
Auto enrolment is a good start but peanuts if you and your company make the minimum contributions. I am auto enrolled with my current employer who give the bare minimum which I do also. I then have a SIPP on the side invested in a low cost global index fund to take my total contributions up to 20%. I also changed my auto enrolment pension to 100% equity it was 80/20 as default.
I'm trying to normalise discussing money matters at work. It scares me how many people in my age group have absolutely no savings and only a NEST pension for retirement :(
40% of the UK population have less than 1 months income saved!! It is shocking and so so sad.. Money being taboo is the biggest failing imo keep doing what you do at work Emma hopefully you get through to some people,
@@DamienTalksMoney this is one of the reasons that under covid the government brought in furloughs scheme otherwise everything would have gone tits up
This was useful and inspiring, thanks for taking the time to do this
A very common misconception that we are living longer. The average age of death has only increased as we have massively reduced child and infant mortality rates. The average person would be doing well to make it beyond their mid 80's and if you get that far your expenses if you are not in a home will likely be pretty small.
Brilliant video Damo. Should be required viewing for all 16 year olds at school
NAY!
The Pleasure !
God damn love your vids mate
You are a legend for watching all the way!
Hi Damien, thanks a ton for this video! I’m 23 and this is super helpful for understanding how to get everything in order for life ahead. Much appreciated!
Awesome Damo. When you are young (in your 20) you think you have a whole life for putting money towards a pension. Then you are in your 30 and you wonder when and where this time has gone. You try to save but it is impossible because of this and that. Luckily enough I have just increased mine to 10% but it wasn't possible a few years back. Great video as always and I like it when you recommend other creators and they do the same thing. Take care and stay safe.👏👏🖖🖖
You are doing great Lukas! I can't wait till the day we meet up and have a drink and toast to your financial future my man.
@@DamienTalksMoney thank you Damian! I can't wait for that drink too. I said this before, I owe you a massive pint. Thanks again Damian and keep up with awesome work as always! 👏🖖🍻🍻
The effect of compound interest is one thing many ignore, if investing into a company scheme and you make it more aggressive than the default then money put in at 20 gains massively by age 60. Plus employer contribution is likewise a big pot of free money
Brilliant video Damien...........Im a fan boy...... love your content and how you get it over mate
Had to like this just for the ‘not unusual’ pun. Great video!
The annoying thing in this video and the big problem in the world is homes are no longer a home, it’s an investment opportunity and it a buy to let or a airb&b etc but what you don’t consider is all the people not able to do this, no longer able to afford a home because lack of housing and this kind of stuff keeping price high, so the basically the people your renting out to, screw them I guess. What will they do as income in there retirement? I really feel gov need to fix this problem.
With the state of the NHS and UK healthcare, I'm not so confident as many as we think will hit 100 years.
Another reason to have a lot in retirement then! If life expectancy is pay to play I want to make sure I can afford private healthcare
I'm not actually that worry, my prediction that in the next 20 years the breakthroughs in regenerative medicines will relieve much of the burden off the NHS. An the costs of the NHS might begin to come down as a nation. Care costs will go through the roof through unless there is a radical acceptance of androids looking after our relatives.
@@DamienTalksMoney This is just me but if that is the case when I'm older I think I'd rather just die than support a system like that
Touche
beer should be free on NHS
I really appreciate your content Damien, thanks for doing this.
Euan mate you are so welcome. Comments like this are why I do what I do! Hope the videos can help make a positive impact on your life and one day in retirement we bump into each other and have a beer!
This is one of the best pieces of content i have ever consumed on TH-cam. My pension or lack of keeps me up at night. Thank you for this video i will take some appropriate action tomorrow.
More great content. I started ploughing into my pension about a year ago, lucky my employer gives me 10% standard then up to 4% matched. I haven’t looked at the fund but will be a tracker based on age, maybe I need to have a look at being a tad more risky for the next 10 years.
Excellent video!
Awesome stuff fella - thanks. Now what do you recommend for chronic anxiety?
This is exactly the video I needed to see today
I’m fortunate to have DB pension it started paying out when I was 42 and rises by CPI. I’ve got the full state pension but that’s decades away yet. And I’m sticking 650 a month into a DC pension.
17:26 unfortunately, those plan are setup with the 3 classic approach. Plus, they have to allocate X amount of money to government bond...so, we will get always not good returns. Government need to print money. Need fresh cash to keep the wheel running, pensions are use it to oil it. In the future, pension will be paid with debt money/printed. The system will change not because a political party will take a decision, it will change when a debt financial crisis blow up the accounts. Last year, the BoE "saved" us saving the LDI market...so, pailing up more debt...
Brilliant video.
About retirements. I would argue that you cannot rely on pensions because the hedge funds that manage the investments that make up pensions could cause your pension to go to zero.
My supervisor tells me that she paid into a works pension for 15 years at a previous job, and now that she's left that job all that pension money is lost, as the company she worked for went bust. I told her that the pension, will still be there, she just needs to track it down. I pointed her in the right direction. I hope.
The government provide a free Pension Tracing Service which should be able to help.
www.gov.uk/find-pension-contact-details
Pay yourself first, save what you can.
Great video, pensions is something most of us dont look at just because we dont understand. If I have three pensions from different jobs is it usually better to transfer the funds into just one pension or keep them as individual pensions. Thank you
This was a great video mate I have subscribed for more Thank you
Hello Damien,
Thank you for the clear advices.
Being in Portugal, do you know any channel similar to yours, for the Portuguese context, that you consider to be trustworthy?
Thank you.
Good news. Tesla have just reduced their prices so that 55k will get me a fast Tesla when I hit retirement. 😆. Started playing into an ISA 12 months ago thanks to your videos. Global tracker. 👍👍
Wait for hydrogen cars to get more popular. Electric won't be here for long. In fact buying shares in this area may be a better option for that £55k. Japan is the biggest innovator on hydrogen at the moment
Damian, I am new to the UK and this information has been so helpful. I appreciate the clarity of the information and for you to humble state what you know and when we should add to our knowledge with others. So well done. Keep up the amazing work on your channel.
Long live Defined Benefit pensions!
Great video mate! Such an important topic and often a bit under appreciated with some YT finance channels. Keep up the good work! 🙌
Great video, very helpful! Great to know about my army pension, I will be looking into this much more. What global index do you use for your SIPP???
I use the vanguard, global all cap (accumulation) index. Help
Iv got it right 😂
Excellent content. If only it was widely perpetuated and understood.
You definitely did it justice Damien! Incredible video as always
I think your tax rates and bands need to updated (8:15) to my knowledge additional rate starts now at 125k.
I think that is from April mate. I lifted the bands straight from HMRC website
Hi Damien great video. Here's a little tip for everyone (I don't know of most people do this, but it felt like a cheat code when I did it!) - when I was 18 I opted into a private pension through my employer. They used NEST as the pension scheme. I paid 4% into it for 4 years and they contributed 4% too. When I left that job I a pot of pension money leftover but I was no longer contributing as I had left that job. So what I did was contact vanguard and get my NEST pension transfered into the vanguard retirement 65 year account. Now that's in the stock market locked in until 2065!
This thought just popped up - If you become unemployed and claim benefits, your NI payments are made for you. So don't worry about periods of being unemployed, as long as you claim benefits.
Amazing video. Thanks for making this.
You are welcome!
Damien, what do you think of Moneybox pension consolidation?
A fantastic video Damien. I'm 63 and left things way too late to take pensions seriously. I've managed to catch up a bit now. If only you were around 40 years ago!
Damien, I can’t express how helpful your content is!
Can I please ask you and the audience if there is a reliable service out there that will track your pensions? On of my previous employers is refusing to answer any of my emails. I’ve asked them many times who my pension provider was and they refuse to answer. Is that even legal?
Surely that depends if it is a DB or DC scheme. If the latter then they surely are obliged as that pot is actually yours
I don't need to do any of your actions but I DO need to have my annual look at my budget and see if I can up my contributions to my SIPP.
Ref the "Gold dust" DB pensions the current Civil Service one (alpha) is linked to state pension age so you can't get the full wack unless you hold off until 67 or however high that climbs.
Last year the uk government spent £120B on state pensions. It would cost the government so much less if they put a lump of £5000 in a global index fund for every child born in the uk and let compound interest do the rest. About 700,000 babies where born in 2022 so that would cost £3.5B each year. Savings the tax payers 100 plus billion.
Yep!! Madness isn’t it… but they won’t reform it because the papers would just go ‘they are stealing your pension’
@@DamienTalksMoney I literally commented this half way through the video and you said the exact same thing lol but unfortunately government aren’t intelligent enough to think this long term.
But those savings won't kick in for 60+ years. Effectively, the idea, though a good one, means an extra £3.5bn or so a year for the next 60 years, by which time none of the current politicians will be in politics, so why would they do it? It makes little sense for them to plan 5 years ahead
@@hooksforestchinthe government could even make people pay the £5,000 back when they are in employment over a long period of time out of their wages for example £20 per month for 20 years is about £5000 and that money would pay for other children that are being born so it would even cost £3.5B per year
@@lewjg2933 so increased tax to pay for pensions now and it would be 20+ years before you could even start to get it back from the children born now. No one's voting for that and that's the constant reality of pensions, social care, energy security etc.
Plus assuming a retirement age of 70 and a 5% growth rate above inflation, it would need to be about £7.5k to compound up to £250k to give about £10k pa at 4% withdrawal (which would be risky for a pension the state is sort of saying is going to be ok). And that's without deciding where it's invested - there would be pressure to only invest in UK companies so that 5% growth is shot.
My guess is that the existing system will remain, with the retirement age creeping up; the triple lock watered down to allow inflation to erode the cost and; some form of testing, even if done as pension credits. Basically, assume you won't get it and treat it as a bonus if you do.
In the meantime, education from the likes of Damien is so important for so many who don't understand until it's too late, at least until someone thinks to teach at least the basics of this in school
Im not so sure due to the stats i see with the covid vaccine so far? with how we make food via process of farming?
Is there pixel dying in your camera on bottom left in first section of video, or was is intentional annoying white dot so I couldn't focus on what you say?
Just put 15% of your income into the S&P500 and you’ll be a millionaire
Your explanation is better than most financial advisors. Bravo! Brilliant content as always.
Wow! What a compliment. Thank you so much mate.
Thank you man.
Your opinion on Aviva my future focus growth s2 , it's 16% bond and rest equity, charging frigging 0.60%
Thanks ✌️
I'll be fascinated to see if the 500000 over 100 by 2066 is true. I'll be long dead by then. I think the post war generation are the longest living. I think given our diets... environment...sedentary lives....pharma...i think you'll see the average age of death drop from 82 down to 75. My dilemma is do i boost my pension for when i live to 100 or is it possible I'll get terminal cancer and not see retirement. Its a gamble either way. But its likely most people will deal with some generative condition in their late to mid 60s. Those living to 100 are virtually a corpse for 20 years before. A lot of people i know in their 50s and 60s are not in rude health. Id say a key to reducing financial pain is keep your overheads low. Live frugally.
So important! I left my pension scheme in 2020 for almost 1 year and realised the mistake I was doing and came back crawling 😂I will blame pandemic messing up with my head heheh
Thankyou
Hi Damien, great video and really well explained! I have gone back to my previous employers and logged into my pensions except, I only approached employers I had since I graduated and so does not include places I worked for before and during uni. Is it worth reaching out to them too?
Mpre people will live beyond 100.
But lifespan in humans is not actually increasing. The oldest persons don't keep getting older.
Damien, one of the best investing & pensions videos I've watch in a while. Love your passion and candour! As an older (60) now seasoned investor, it's great to see you highlighting things that I (now) know from experience do work... and will (in time) build wealth. Everyone in younger years should watch and take this on board, if they want a 'comfortable' and enjoyable time in their 60's+ (and yes, I know that can seem a long time away - but I'll tell you it catches up with you fast! 🙂 Keep up the excellent work, you're going to help many people get the most out of life.
Glad to see you back with another video, Damien! When you mention that we dont know what our employer pensions are up to, weirdly enough, I was tracking one of my old ones with the same thought to check it and get it sorted (maybe by moving to my VG SIPP). I came to realize its been moved to Legal and General after my employment ended and its been in some 60:40 index fund with a 0.10% fee...so I didnt bring myself to transfer it as this seemed low fee enough anyway. Maybe Im missing something, I dont know, and certainly I would prefer consolidating + more equity exposure being in my 30s but it just seemed ok enough to me. On the other end is my current employer's one with Mercer UK. Weird provider to deal with + close to 0.70% in fees + sticking us by default into its moderate fund version thats looking lame in performance even to someone with modest knowledge in index funds...the only benefit of it comes from the employer itself = if I dont wanna put a single penny of contribution, my employer just does 10% on my behalf but they will keep matching anything from me up to a point. Since I tried to set it at its most efficient its at 26% where I contribute 8%...but ill be looking to transfer this thing once done because...Mercer...
Mate sounds like you have your head firmly screwed on! With your old pension might be worth looking if you can move to a more ‘adventurous’ fund if you don’t want a 60/40 split?
Actually I stand corrected - its "L&G PMC Global Equity Fixed Weights (60:40) Index Fund 3" so its all equity but 60% UK equity allocation and rest is equity overseas...it could maybe go more adventurous but for a passive 0.10% fund,its doing alright. But again,Im surprised they didnt ditch our workplace funds into something more expensive. Most of us wouldnt have noticed for a while.
Love the video. I would also like to mention to still remember to enjoy your life and not just develop hustle culture and work yourself to the bone so you can save here, and invest there. Sometimes you just have to go on that holiday, or have that meal etc. because you never know when your life or good health is going to end. This is what I sometimes struggle with, of course I would like to save and invest, but I would also like to live my life while I'm young and have no kids or big loans.. Its a hard balance, when your income is not as big to have everything. Not all of us will live to get to enjoy our pensions, that' how it is, finding the right balance is the way to go in my book. Just my two cents :)
As usual you have done a brilliant job here. But… my fear is you’re preaching to the converted. I came to this far too late - I’m 63 years old, lucky enough to have 20 years of pension from BT, probably will sneak into the state pension when I hit 66 and then will live off savings and the money we made from downsizing our house last year. But where was this info 30 years ago? Nowhere. And where is it now? Nowhere. How much of this is taught at schools? I guess zero. FE Colleges? Zero. Universities? I bet zero. My parents did not have the fiscal knowledge to pass on, they thought their company and state pension would suffice - to be fair, they were more or less right. But those days have gone and the government need to address this now - the idea of £5k at birth and then auto enrolment is brilliant 👏👏 Why do we grant such immense power to unqualified, low IQ, talentless, self absorbed low lifes in this country? Ok, I’ll stop now as my ranting meter has just hit 10 again! Great vid Damien, should be shown to every 18 year old before they start work and every Monday morning for the rest of their career 😂😂
Is anyone’s workplace pension with L&G? If so which fund is a good one to invest into?
Damien, I love your ‘SIPP-at-birth’ idea. The benefits on a state and individual level are immense and might be applied to schemes other than pension provision e.g. health care and life insurance. I implore you to approach your local MP, or someone who has a chance of bringing your idea to the government. I would do it myself, if I had your depth of knowledge.
Great advice though I must say !
Thank you!
Hey, so if I have a Defined pension contribution with my employer, am I better to leave as is or would it be better to move it to a SIPP? I've thought about this a lot so thanks for the insights as always 👍👊
Leave it in DB, they are better than defined contribution
Great video Damien, and so so critical. I was in a very average position pension wise but addressed it at 50+ by getting a grip on personal finances and wiping out all credit card debt when I moved. Money that was drip feeding that debt plus work bonus and increased contributions puts me in an OK position now. It might sound harsh but wife earns full state pension as well which should she die leaves me with what I have and I lose her pension, should I die wife benefits from my DC pots so that helps negate loss of my state pension.
Kids should be taught. all this so they address it as soon as start working. If you said to them do you think getting £70K is a good return on £12K investment, guess most would say yes. Well that’s what £50 a month for 40 years gets at 5% growth per annum. Company pension default 4% you plus tax relief 1% plus company 3% £50 a month which you pay half is £12K over 40 years.
That of course is with no growth in income, extra contributions etc. most of us progress in work earning more as we go so can put more away this is how the government are thinking which is why we have the pension situation now and auto enrolment. If the government is wanting us to look after ourselves they should at least be educating the kids about it
Buy!
Thats terrifying half a million of us
“This is like the lemon & herb variety at Nandos” this got me 😂
It really is though!
Alrighty. Time to buy copious amounts of gold and silver bullion
As someone still on a DC pension, does it make sense to combine the pensions from all my previous companies into a SIPP or should I move it into my current pension provider?
I have the same thoughts too. I’m leaning towards a SIPP but not sure.
I personally have used a SIPP as i have more control and the fees were less. But it is worth checking with an IFA to make sure you dont move a pension with benefits beyond just fees.
@@DamienTalksMoney great thank you!