*NOTE: As of April 2024 the Full UK State Pension has increased to £11,502* Thanks for tuning into this week's episode, if you enjoyed it TAP the LIKE button and SUBSCRIBE to the channel P.S You can connect with a financial advisor for FREE by visiting Unbiased with the link in my Bio
Excellent episode on Pension. Unpacked a system often shrouded in mystery. The NHS Pension is a little different. It is a defined benefit system which is an entirely different system. It will be interesting to have some discussions around that especially for your subscribers that work in the NHS. Brilliant job guys. Listened all the way!
Thank you for creating this fantastic channel. As a working-class person, it has given me valuable insight into how the UK system works, which I couldn't have seen with my naked eyes.
Thank you for the kind comments! I’m glad the channel is helping you with that. I believe when you’re well informed and understand the system, you now know how to manage it. Appreciate you tuning in!
9:08 - 14:50 is gold. What a tribute to your Dad. As someone who started my own financial education as a teen and stared investing at 19, start any discussion with "when I was 19.." and you have me hooked! Brilliant episode, unravels pension in a simple way, a topic that most people avoid due to the confusion and "mystery" around it
Yes, workforce in the public sector (NHS ) NHS failed Directors, Head of departments, Senior Nurses, Senior consultants all staff above grade 8b mainly in Finance. they have a job for life, no performance related pay , just high salaries earners for sitting jobs. There are very few nurses that fall in this catagory , consultants and senior nueses all work hard to keep the NHS going I have said this for years , save the NHS , get ride of these people that do not perform and pay the lower grades more. These people earn enough to buy 5 house in a year. that is right , they can retire by 45 years old. This is the truth, but no one questiones this why.
Another great guest 👏🙌. After listening to your conversation with Franklin and now Godfrey, I’m feeling awaken to opportunities which I have been letting pass me by. Much blessings to you
A word of warning to those who work in the public sector. If you die before claiming your pension (and let's be real, there's a good chance of that happening for under 40s), the government will pocket your pension unless you're married and/ or have dependent children (under 18). This is what happened to my dad. He contributed to his NHS pension for 35 yrs and he didn't see a penny of it and neither did the family...it's sick. If I die tomorrow, all of my beneficiaries will receive 100% of my private sector pension. TLDR; Public pensions are more like insurance policies rather than traditional pensions.
Happened to me too! My parent worked in the civil service. My sister was 19 which would normally exclude her as you said but luckily she was still in education so we were able to claim something for that. It's disgusting to have to deal with that whilst dealing with the shock of death
@@123yesindeed Yep sounds about right, I heard the dependents pension is a pittance though. Like 10% of the pension or something like that? Anyway, at least someone got something😭
The problem today is the government keep printing and inflating the money supply, that dilutes the pound, so things seem more expensive, but they're not, the currency value is being absolutely crushed. So any pension increase we get, its still well below inflation. By the time we come time to draw it, the buying power will have lost the most value.
Very useful and accurate to the point advice. Recently found the savvy wallet channel and loving the content. Well done to the team. Really like Ato’s relaxed interviewing style.
Well regardless what you do you still goanna pay the tax, I would rather pay that tax and NI at 30% now then at whatever 50% plus inflation by the time I would be 57 or older. Essentially what you are saving is the 25% for lump sum but sure that is nothing compared to what taxes will be in 25 years from now plus inflation The only thing that's relatively ok is that you could take only the minimum non taxable amount each year ( depending if is going to be any tax free aount in 25 years) 😂 and that obviously will be around £1000 only so in my opinion is not worth it. I would rather take my money and maybe invest get a return of whatever but still a return. In the last 8 years of contributing at same job my money haven't gone up, actually down with £25 each month foe whatever fees they take to keep " investing" it Most of the info is good, if you put you together you will understand the GOV never loses and they don't do you a favour or let you keep them money😮
Could be solved overnight (well if they are willing to wait 60 years 😂) If the government was to put 5k in a global index tracker for everyone when they are born that can't be touched until they are 65 at 8%RoR they'd have over 700k in retirement. Now imagine adding to that contribution throughout your life too. It would cost 3Bn a year, put into context we spend more per annum on housing refugees and processing asylum seekers at over 4Bn a year (also think we should help those in need massively but charity also starts at home and just using that as an example to show the money can be found)
@@savvywallet just to add... The state pension costs the tax payer nearly 120BN a year. Makes 3BN seem like a drop in the ocean in comparison, but like an acorn the downside is fruits of the labour wouldn't be seen for multiple decades so will never happen
I grew up on an estate in Stoke Newginton and we played or hung around on the estate we all knew each other now. no one does that . We were all friends, so much fun.
2 questions please: 1. If you’re just into the higher tax payer (40%) bracket can you increase your pension contributions to bring down your taxable income to 20%? 2. what are the tax favourable options for taking out a lump sum from your workplace /private pension before retiring
Yes you can increase your pension, so your taxable income is 20%. But remember you would need to ensure your increase the pension contribution to the point that your remaining taxable income doesn't exceed 50k per annum
You can make contribution up to £60,000 or your total income which ever is lower. You can claim additional 20% on your contribution when you are higher tax payer as the 20% is already relieved at source.. For your benefit you can select flex-access drawdown as it is more flexible or buy an annuity for life which is guaranteed income. Just for help.. get pension advice from professional pension advisors…
This was very good lads, just one thing he missed. When you get to retirement age you stop paying NI. So tax does lower a bit! When you will pay tax on the rest of your pension. This is why I personally think they want to get rid of NI so you will tax on all of your pension.
Sorry to say this but contrubuting to a government agency pension just seems so pointless, You might as well dig a big hole in your backyard. 1. There is no gruarantee that the Govt. will be able to pay you your pension when you retire. than you have to pay tax on it again, But I have alreasy paid tax on it when I earned it by working. So that is so far twice, If I save it , I pay tax on it again (three times) if I die and leave it for my kids, they pay tax on it again (four times ) for all my hard work. THE BESTB OPTION IS - SAVE UP, buy a property, live in it . Honestly all this tax the Govt. collects from us YET they have no money. Oh! yes Private pension is good as you do get a return but not everyone has that sort of money floating around.
Why would the govt. need to move the 25% tax free pension to 57 in 2028 because they worry about the workforce dwindling when all they need to do is force the young ones to work or stop benefits? Why is the older working force the only bait to maintaining the work force?
If you opt into a salary sacrifice say in the middle of the financial year , will you get relief on what you was previously tax on at the beginning of the tax year if that makes sense?
Hey there, thanks for the question, best to reach out to Godfrey on this or if you have access to a financial advisor (I realised recently that many employers offer this but don't shout about it!)
Just found your channel 1:45 in and wondering if you have done a video on how to save for a pension when your on benefits/long term disability? I have been saving for my children but not for myself but would love to start just don’t know where to begin? Edit: new subscriber
Hi there, thanks for tuning into the episode, I appreciate it! I haven't talked specifically about contributing to a pension when you're on benefits but that is definitely something I would look to cover in the future. Godfrey did mention the possibility of setting up your own pension (self-invested personal pension). There are a few free independent advice services like Moneyhelper, that could maybe help you answer your question too
Remember when your employer gives you that extra "free money" or you personally invest £100 into your pension and the government magically adds 20 or 25% on top. When you withdraw your pension, you will still pay tax on your withdrawal at the normal basic or higher rate (depending on how much your pension pays you per month) EDIT: You talked about this.
Thanks for tuning into this week's episode! I definitely understand your sentiment andI agree a company pension should be sufficient. I don't want to speak for Godfrey but I'd imagine people with multiple pension pots may have them invested in different things
Workplace pensions give payments from your company but you may be able to get a better return from a private pension than your employer provides as you may not have any control. He’s simply telling you how to maximise your pension.
The interruption and yah yah was way too much. Makes it harder to follow what your guest was saying. Otherwise, it's such a great show! Keep up the good work!
Thanks for tuning into this episode I appreciate it! Glad you enjoyed it....honestly speaking I've recognised that myself and made some tweaks on that. On the other hand that's just my personality so there's a balance
Whats with the screaming "green subtitles " it makes it hard to focus on what he is actually saying. You tube provides its only subtitle feature for a reason. They know what works
state pension age will ever increase and private pension will never catch up inflation it only gives IBs most benefit who ultimately invest to market and stocks r risky so common people will have to work till death bottom line reality.
My rule of thumb is this( give or take). I need £925, 715.00. My current salary net pay is £2700.00 per month. If I had that amount in a very conservative dividend index fund that has a yield of 3.5%. That’s what I’ll need. Yes there are higher dividend paying stocks and higher dividend index fund. But that’s my calculation 😅😅
I love the fact that you took some time to make your own calculations that’s very important you’re taking all the right steps! It’s a solid plan for sure. Definitely if you’re able to diversification would also be quite good. Thanks for tuning into this episode, I appreciate you!
Yeah..? Yeah. Mm yeah yeah yeah.. yeah.. yeah. Yeah! Yeah. Tru dat gov yeah yeah yeah. Shame I came for a good listen.. couldn't get past the yah.. yeah yeah.. feel me yeah? "Don't recommend channels youtube if rheu don't speak English!!" Yeah!!
*NOTE: As of April 2024 the Full UK State Pension has increased to £11,502*
Thanks for tuning into this week's episode, if you enjoyed it TAP the LIKE button and SUBSCRIBE to the channel
P.S You can connect with a financial advisor for FREE by visiting Unbiased with the link in my Bio
I really love this channel 🙏💪🥳
Excellent episode on Pension. Unpacked a system often shrouded in mystery. The NHS Pension is a little different. It is a defined benefit system which is an entirely different system. It will be interesting to have some discussions around that especially for your subscribers that work in the NHS. Brilliant job guys. Listened all the way!
Thank you for creating this fantastic channel. As a working-class person, it has given me valuable insight into how the UK system works, which I couldn't have seen with my naked eyes.
Thank you for the kind comments! I’m glad the channel is helping you with that. I believe when you’re well informed and understand the system, you now know how to manage it. Appreciate you tuning in!
This is an amazing channel. I’ve learnt so much. I had no clue pension is taxed 😩 who knew real life was like monopoly
Thank you! Glad you find value in the channel! It’s mad right, it’s like we get taxed on everything!
Oh yes ..just foun this out the hard way !
9:08 - 14:50 is gold. What a tribute to your Dad.
As someone who started my own financial education as a teen and stared investing at 19, start any discussion with "when I was 19.." and you have me hooked!
Brilliant episode, unravels pension in a simple way, a topic that most people avoid due to the confusion and "mystery" around it
Hey guys, please invite him back to talk some more. He really dropped so much gems.
Yes, workforce in the public sector (NHS ) NHS failed Directors, Head of departments, Senior Nurses, Senior consultants all staff above grade 8b mainly in Finance. they have a job for life, no performance related pay , just high salaries earners for sitting jobs. There are very few nurses that fall in this catagory , consultants and senior nueses all work hard to keep the NHS going I have said this for years , save the NHS , get ride of these people that do not perform and pay the lower grades more. These people earn enough to buy 5 house in a year. that is right , they can retire by 45 years old. This is the truth, but no one questiones this why.
Thanks for such an informative episode, Godfrey explains complex info so well, making it accessible to the masses
I’m glad you found it useful, thanks for tuning in! I agree with you, Pensions can often be complicated but he simplified it so well
Keep incorporating great guests on here. Really great Podcast!
Keep up the good work Brother.
Thank you! Appreciate you tuning in and supporting the podcast!
Another great guest 👏🙌. After listening to your conversation with Franklin and now Godfrey, I’m feeling awaken to opportunities which I have been letting pass me by. Much blessings to you
The amount of wisdom and knowledge I get from this channel is next level. Thank you Ato and all your guests 👏🏾👏🏾👏🏾
A word of warning to those who work in the public sector. If you die before claiming your pension (and let's be real, there's a good chance of that happening for under 40s), the government will pocket your pension unless you're married and/ or have dependent children (under 18). This is what happened to my dad.
He contributed to his NHS pension for 35 yrs and he didn't see a penny of it and neither did the family...it's sick. If I die tomorrow, all of my beneficiaries will receive 100% of my private sector pension.
TLDR; Public pensions are more like insurance policies rather than traditional pensions.
There is a special place in hell for the architects of this nefarious plan.
Happened to me too! My parent worked in the civil service. My sister was 19 which would normally exclude her as you said but luckily she was still in education so we were able to claim something for that.
It's disgusting to have to deal with that whilst dealing with the shock of death
@@123yesindeed Yep sounds about right, I heard the dependents pension is a pittance though. Like 10% of the pension or something like that? Anyway, at least someone got something😭
Sorry to hear that, thats awful! Condolences to you and your family. Thanks for shining a light on this to help others, we appreciate it!
Well I'm not putting into a pension, I don't care what happens when I'm old and fragile, I want to enjoy now
The problem today is the government keep printing and inflating the money supply, that dilutes the pound, so things seem more expensive, but they're not, the currency value is being absolutely crushed. So any pension increase we get, its still well below inflation. By the time we come time to draw it, the buying power will have lost the most value.
Thank you so much for this information. Godfrey you have enlightened me so much about the UK pension system.
Thanks for tuning into this episodeI I appreciate it! Glad you found it valuable
Very useful and accurate to the point advice. Recently found the savvy wallet channel and loving the content. Well done to the team. Really like Ato’s relaxed interviewing style.
Thank you guys!👏🏾👏🏾
Great conversation and very informative!
Glad you enjoyed it! Appreciate you tuning in
Well regardless what you do you still goanna pay the tax, I would rather pay that tax and NI at 30% now then at whatever 50% plus inflation by the time I would be 57 or older.
Essentially what you are saving is the 25% for lump sum but sure that is nothing compared to what taxes will be in 25 years from now plus inflation
The only thing that's relatively ok is that you could take only the minimum non taxable amount each year ( depending if is going to be any tax free aount in 25 years) 😂 and that obviously will be around £1000 only so in my opinion is not worth it. I would rather take my money and maybe invest get a return of whatever but still a return. In the last 8 years of contributing at same job my money haven't gone up, actually down with £25 each month foe whatever fees they take to keep " investing" it
Most of the info is good, if you put you together you will understand the GOV never loses and they don't do you a favour or let you keep them money😮
great channel, packed with so much value. Great vid. 👍👍👍👍👍👍👍
Could be solved overnight (well if they are willing to wait 60 years 😂)
If the government was to put 5k in a global index tracker for everyone when they are born that can't be touched until they are 65 at 8%RoR they'd have over 700k in retirement. Now imagine adding to that contribution throughout your life too.
It would cost 3Bn a year, put into context we spend more per annum on housing refugees and processing asylum seekers at over 4Bn a year (also think we should help those in need massively but charity also starts at home and just using that as an example to show the money can be found)
That’s a very interesting perspective! And a theory that would be great to discuss
@@savvywallet just to add... The state pension costs the tax payer nearly 120BN a year. Makes 3BN seem like a drop in the ocean in comparison, but like an acorn the downside is fruits of the labour wouldn't be seen for multiple decades so will never happen
excellent conversation, thank you Godfrey 🙏🏽
Huge respects and thanks, guys..got so much value from this podcast
Thank you for the kind words! Appreciate you tuning in
You have very valuable content… i feel like im “learning life all over again” lol thank you! Keep it up🎉
I'm loving this conversation 🎉
Glad you enjoyed it! Thanks for tuning in 😊
This is good but most people won't be able to but in the numbers they are talking about
Amazing!!....Thank you for this😊
Thanks for tuning into this episode I appreciate it! Glad you enjoyed it
Great video 👍
Thank you! Appreciate you tuning in!
Thank you guys for this great conversation it's very insightful, I just come across this channel and I have subscribed now.
Thanks for tuning into this episode I appreciate it! Glad you enjoyed it
One of my favourite podcasts out at the moment
Thanks for supporting the podcast, I appreciate it!
It would easily be affordable if they invested money instead of spending it on wars etc
I agree. Wars that enrich the wealthy.
Your either gullible or simply dumb to understand how politics work.
Great episode, I needed this.
Thank you! Appreciate you tuning in!
❤❤❤ great gems
Thank you! Appreciate you tuning in!
Love this channel
Big up Gof
The tax is more especially if your private pension performed well . O stand to be corrected.
Great video
Thank you! Appreciate you tuning in
I grew up on an estate in Stoke Newginton and we played or hung around on the estate we all knew each other now. no one does that . We were all friends, so much fun.
Very good information. Thank you.
Thank you! Appreciate you tuning in!
Awesome
Thank you! Appreciate you tuning in!
Love the pod!!!!!
Glad you enjoyed it! Appreciate you tuning in!
people do not realise National insurance is also tax which is 10% on all income
2 questions please:
1.
If you’re just into the higher tax payer (40%) bracket can you increase your pension contributions to bring down your taxable income to 20%?
2.
what are the tax favourable options for taking out a lump sum from your workplace /private pension before retiring
Yes you can increase your pension, so your taxable income is 20%. But remember you would need to ensure your increase the pension contribution to the point that your remaining taxable income doesn't exceed 50k per annum
You can make contribution up to £60,000 or your total income which ever is lower. You can claim additional 20% on your contribution when you are higher tax payer as the 20% is already relieved at source..
For your benefit you can select flex-access drawdown as it is more flexible or buy an annuity for life which is guaranteed income. Just for help.. get pension advice from professional pension advisors…
@@hagosazaria824 thank you :)
@@hagosazaria824good tip. thanks
This was very good lads, just one thing he missed. When you get to retirement age you stop paying NI. So tax does lower a bit! When you will pay tax on the rest of your pension. This is why I personally think they want to get rid of NI so you will tax on all of your pension.
Ahh now it makes sense why they are going on about scrapping NI
Appreciate you watching! That’s an interesting perspective and does make sense hmmm!
Amazing thanks
Glad you found it useful! Thank you for watching!
Sorry to say this but contrubuting to a government agency pension just seems so pointless, You might as well dig a big hole in your backyard. 1. There is no gruarantee that the Govt. will be able to pay you your pension when you retire. than you have to pay tax on it again, But I have alreasy paid tax on it when I earned it by working. So that is so far twice, If I save it , I pay tax on it again (three times) if I die and leave it for my kids, they pay tax on it again (four times ) for all my hard work. THE BESTB OPTION IS - SAVE UP, buy a property, live in it . Honestly all this tax the Govt. collects from us YET they have no money. Oh! yes Private pension is good as you do get a return but not everyone has that sort of money floating around.
All lots of these companies investing your pension money.. have negative returns.
35 Years Working to get full state pension meanwhile someone that’s Never Worked had a full life on benefits will get that full pension!!!
No they won't. You need to be paying national insurance for 35 years to get full state pension
Nope “qualifying years” don’t actually need to pay in being on benefit counts too.
New here ❤. Great episode 🏆.
Thank you! Appreciate you tuning in!
I’m going to follow him on In 😊
I’m sure he’ll be happy to be connected. Thanks for tuning in!
@@savvywallet my absolute pleasure 🙏🏾
Very insightful 😊 Thanks
Glad you enjoyed it!
Why would the govt. need to move the 25% tax free pension to 57 in 2028 because they worry about the workforce dwindling when all they need to do is force the young ones to work or stop benefits? Why is the older working force the only bait to maintaining the work force?
So important that all this useful and sensible information is their for the community, rather than all the usual pop trash.
Thank you for watching! Appreciate you tuning in! Financial literacy is key
If you opt into a salary sacrifice say in the middle of the financial year , will you get relief on what you was previously tax on at the beginning of the tax year if that makes sense?
Hey there, thanks for the question, best to reach out to Godfrey on this or if you have access to a financial advisor (I realised recently that many employers offer this but don't shout about it!)
Just found your channel 1:45 in and wondering if you have done a video on how to save for a pension when your on benefits/long term disability? I have been saving for my children but not for myself but would love to start just don’t know where to begin?
Edit: new subscriber
Hi there, thanks for tuning into the episode, I appreciate it! I haven't talked specifically about contributing to a pension when you're on benefits but that is definitely something I would look to cover in the future. Godfrey did mention the possibility of setting up your own pension (self-invested personal pension). There are a few free independent advice services like Moneyhelper, that could maybe help you answer your question too
I'm soooooo please to find and share your program
Thanks for tuning into this episode I appreciate it! Glad you enjoyed it
Remember when your employer gives you that extra "free money" or you personally invest £100 into your pension and the government magically adds 20 or 25% on top.
When you withdraw your pension, you will still pay tax on your withdrawal at the normal basic or higher rate (depending on how much your pension pays you per month)
EDIT: You talked about this.
You don't need a workplace pension and a private pension to balance risk? Just chose what your 1st pension is invested in
Thanks for tuning into this week's episode! I definitely understand your sentiment andI agree a company pension should be sufficient. I don't want to speak for Godfrey but I'd imagine people with multiple pension pots may have them invested in different things
You can’t choose what the workplace pension is invested in in most instances
Tax relief because of the company
Workplace pensions give payments from your company but you may be able to get a better return from a private pension than your employer provides as you may not have any control. He’s simply telling you how to maximise your pension.
He’s simply telling you how to maximise your return.
Amazing info Very intelligent Handsome Black Man ...
What's colour got to do with anything
The interruption and yah yah was way too much. Makes it harder to follow what your guest was saying. Otherwise, it's such a great show!
Keep up the good work!
Thanks for tuning into this episode I appreciate it! Glad you enjoyed it....honestly speaking I've recognised that myself and made some tweaks on that. On the other hand that's just my personality so there's a balance
When he's talking about private he means SIPP, right?
I wonder how much does it cost to seek guidance from Financial Advisor
I would say reach out to one and see if it works for you. Many offer free consultations
Do what I’m doing and invest in properties. That’s gonna be my pension but I will still contribute to my workplace pension as well.
Very solid plan! Thanks for tuning into the episode!
Whats with the screaming "green subtitles " it makes it hard to focus on what he is actually saying. You tube provides its only subtitle feature for a reason. They know what works
10'000 paid into pension? Over 800 a month into pension? Just to receive 150 child benefit? Or did i not hear right?? Great content though.. thank you
I think the pension system and NHS will end before we gen z retire, money down the drain
state pension age will ever increase and private pension will never catch up inflation it only gives IBs most benefit who ultimately invest to market and stocks r risky so common people will have to work till death bottom line reality.
Cancel the triple lock
Savvy Wallet, Subscribed because your videos are so much fun!
Thank you! I appreciate you subbing to the channel!
A lot worked hard and died, whats gonna be the case in this instance
Your private and workplace pensions will be transferred or inherited by your descendants or whoever you choose.
@@MargareteJBSousa Only if they are not public sector pensions
You have to assume that your not going to die before you collect your pension, otherwise whats the point of doing anything
@@MargareteJBSousa NOT public sector pensions, the government take it all
My rule of thumb is this( give or take).
I need £925, 715.00.
My current salary net pay is £2700.00 per month.
If I had that amount in a very conservative dividend index fund that has a yield of 3.5%.
That’s what I’ll need.
Yes there are higher dividend paying stocks and higher dividend index fund.
But that’s my calculation 😅😅
I love the fact that you took some time to make your own calculations that’s very important you’re taking all the right steps! It’s a solid plan for sure. Definitely if you’re able to diversification would also be quite good. Thanks for tuning into this episode, I appreciate you!
Amazing how it's the general people state pension
Never about the politicians pensions .which the get from taxpayer ..funny that !??
Living longer 😂😂😂 Life expectancy has been falling for a decade... as KPMG and others.
remove new state pensions. completely. force people to have normal private/company pensions
Yeah..? Yeah. Mm yeah yeah yeah.. yeah.. yeah. Yeah! Yeah. Tru dat gov yeah yeah yeah. Shame I came for a good listen.. couldn't get past the yah.. yeah yeah.. feel me yeah? "Don't recommend channels youtube if rheu don't speak English!!" Yeah!!
@user-wj7cv9hb5j don't be obtuse. Stop trawling YT and leaving abuse ffs🤦🏼♀️
Absolutely no one asked you here. Keep your wyt ass moving.
There’s vital information in this video and you’re focusing on this??? Please get a life
Wow, very insightful. Thank you very much
Thanks for tuning into this episode I appreciate it! Glad you enjoyed it