If your pension pot + other liquid assets is 25 x your annual expenditure you are good to retire. I'm 6 years in to retirement, still 4 years from the state pension and have the same amount of money as when i retired. 4 years ago i had a six figure loss, since made up through some (very) good years. So long as my gains = inflation no need to worry. Should i run out money in which case i will be quite old then equity release will give me more than enough to see me out. Enjoy your retirement.
You underscored why I am very reluctant to "de-risk" given I may have another 20 or more years for my investments to grow and reward me. Yes, a bad sequence of returns is always possible, but I'm expecting to at least double of my year to date portfolio return of 6.2%. This is simply not possible if I were to play it safe.
My worry is the incoming labour party will end the tax free lump sum on private pensions. Would this be on monies already inside a pension or just going forward. What are your thoughts on this. I have planned for early retirement and the tax free lump sum is part of that plan.
It's a thorny area, and no one truly knows. Despite wishing we all could have more stability in legislation. Pensions I feel will always be tinkered around by politicians. What I can say is the 'changing tax-free cash from pensions' features on every budget bingo card. This is a great response from Steve Webb from all the way back in 2017 👇👇 www.thisismoney.co.uk/money/pensions/article-4511008/Will-25-tax-free-pension-lump-sum-abolished.html My personal view is the tax-free cash lump sum changes or abolishment appears a far less elegant way of making changes to pensions than other areas like pension tax relief changes or death benefit changes. Put simply - they can probably raise much more money in a way which won't annoy a huge amount of the population. It would also be VERY unpopular as it's one of the few areas that are universally understood as a benefit of pensions. No crystal ball here though sadly!
if any political party suddenly announced the removal of this, it would hit such a large part of the population I think it would be a massive own goal. They may propose reduction over a period of time to 20 then 15% As you suggest there may be changes on tax relief given to contributions.
@@guyr7351 Don’t forget that the Tories increased the retirement age for women from 60 to 65 and for everyone from 65 to 67, soon to be 68. This obviously affects a large part of the population but it didn’t seem to do them any harm electorally. Governments will do anything to avoid taxing the very richest and so our pensions will always be a target.
@@charleswells8453 well the increase for women was part of equality, with women living longer than men having them retire 5 years earlier was patently unfair. There is no way the Government could afford to reduce the man’s age down to 60. Raising of the age to 66 then 67 and potentially to 68 is a backward step, 68 may not happen just yet while it is the intention. It has been agreed that the aim is to have the average period of retirement be a 1/3 or an adults life. This requires the average life to be 85 ( 68-18 =50, 1/3rd =17, 68+17 = 85 yrs) Covid impacted the average age, there has to be ten years notification of the change to allow people to make adjustments. Personally I think it is a backwards move, if you’re in a physical job then 65 can be too old. The early years of retirement “golden years” are those where ideally you still have health and can enjoy life, 68 smacks of working till you drop. I’m lucky I’m retired with 20 months until state pension kicks in. While auto enrolment on pensions has been with us a good while now, for lower paid many don’t realise how small that pot will be unless they make some extra contributions. We won’t have long to wait to find out what Labours plans are
Any plans to record a video on the upcoming quirk in 2028 when the NMPA rises from 55 to 57. Those of us who turn 55 before 6th April 2028 but don't turn 57 *before* that date face having access to our pensions being withdrawn until we do reach the new NMPA. Steve Webb has confirmed this is how things stand as legislation currently stands.
That's a great point! Thank you for the suggestion. I'll add that to the content list. I'm running a tad behind on my schedule but will add that to the upcoming topics! Thanks for watching
If your pension pot + other liquid assets is 25 x your annual expenditure you are good to retire. I'm 6 years in to retirement, still 4 years from the state pension and have the same amount of money as when i retired. 4 years ago i had a six figure loss, since made up through some (very) good years. So long as my gains = inflation no need to worry. Should i run out money in which case i will be quite old then equity release will give me more than enough to see me out. Enjoy your retirement.
Very good George. Thanx for posting.
Appreciated! Thanks for watching 🙌
Thanks, Principles Personal Finance; I love the intro to your video and your creativity in all your content.🎭
Thanks David. Always very grateful for your support & hope you are well!
@@PrinciplesPersonalFinance I am, thanks for asking.😀
Excellent advice as always George! Keep up the good work, it’s really appreciated
Thanks Jason, appreciate you watching!
Greta advice. Looking forward to this channel growing!
Thank you!
Great video, well done
Thank you!
You underscored why I am very reluctant to "de-risk" given I may have another 20 or more years for my investments to grow and reward me. Yes, a bad sequence of returns is always possible, but I'm expecting to at least double of my year to date portfolio return of 6.2%. This is simply not possible if I were to play it safe.
Thanks for watching and glad it was useful!
@14:00 FODIY, i've infinitely got fear of do-it-yourself; but financial planners seem to want me to sign a contract and Im fearful of that too!
Excellent content and information - thanks, George!
Cheers Simon, thanks for watching!
Great video George 👍🏻
Thanks for watching! Appreciated 🙌
My worry is the incoming labour party will end the tax free lump sum on private pensions.
Would this be on monies already inside a pension or just going forward. What are your thoughts on this.
I have planned for early retirement and the tax free lump sum is part of that plan.
It's a thorny area, and no one truly knows. Despite wishing we all could have more stability in legislation. Pensions I feel will always be tinkered around by politicians.
What I can say is the 'changing tax-free cash from pensions' features on every budget bingo card.
This is a great response from Steve Webb from all the way back in 2017 👇👇
www.thisismoney.co.uk/money/pensions/article-4511008/Will-25-tax-free-pension-lump-sum-abolished.html
My personal view is the tax-free cash lump sum changes or abolishment appears a far less elegant way of making changes to pensions than other areas like pension tax relief changes or death benefit changes. Put simply - they can probably raise much more money in a way which won't annoy a huge amount of the population. It would also be VERY unpopular as it's one of the few areas that are universally understood as a benefit of pensions.
No crystal ball here though sadly!
if any political party suddenly announced the removal of this, it would hit such a large part of the population I think it would be a massive own goal. They may propose reduction over a period of time to 20 then 15% As you suggest there may be changes on tax relief given to contributions.
Did you hear what kier starmer said just today regarding tax free lump sum.
“It comes to an end soon and we will have a look at it then “
@@guyr7351 Don’t forget that the Tories increased the retirement age for women from 60 to 65 and for everyone from 65 to 67, soon to be 68. This obviously affects a large part of the population but it didn’t seem to do them any harm electorally. Governments will do anything to avoid taxing the very richest and so our pensions will always be a target.
@@charleswells8453 well the increase for women was part of equality, with women living longer than men having them retire 5 years earlier was patently unfair. There is no way the Government could afford to reduce the man’s age down to 60.
Raising of the age to 66 then 67 and potentially to 68 is a backward step, 68 may not happen just yet while it is the intention. It has been agreed that the aim is to have the average period of retirement be a 1/3 or an adults life. This requires the average life to be 85 ( 68-18 =50, 1/3rd =17, 68+17 = 85 yrs)
Covid impacted the average age, there has to be ten years notification of the change to allow people to make adjustments.
Personally I think it is a backwards move, if you’re in a physical job then 65 can be too old. The early years of retirement “golden years” are those where ideally you still have health and can enjoy life, 68 smacks of working till you drop.
I’m lucky I’m retired with 20 months until state pension kicks in. While auto enrolment on pensions has been with us a good while now, for lower paid many don’t realise how small that pot will be unless they make some extra contributions.
We won’t have long to wait to find out what Labours plans are
Brilliant content .thanks
Thank you, appreciate you watching and your support! 🙌
Any plans to record a video on the upcoming quirk in 2028 when the NMPA rises from 55 to 57. Those of us who turn 55 before 6th April 2028 but don't turn 57 *before* that date face having access to our pensions being withdrawn until we do reach the new NMPA. Steve Webb has confirmed this is how things stand as legislation currently stands.
That's a great point! Thank you for the suggestion. I'll add that to the content list. I'm running a tad behind on my schedule but will add that to the upcoming topics! Thanks for watching
👍
Trying to explain inflation to an American audience, humorous