These days, retirement is harder than it used to be. Rather than investing, I have been saving for a very long period. I'm thinking of investing in stocks because of all the inflation, but I'm not only familiar with market tactics.
My advice to everyone is this, if you want to grow big next year especially in your finances, be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldn't have to worry about savings as you do now. Thanks to my FA, my portfolio is doing really great and i'm proud of the decisions i made last year.
Nice. People often underestimate financial advisors' importance. Over 50 years of data reveal that those who work with advisors typically earn more than those who go it alone. I've been fortunate to work with one for 8 years, resulting to a $1 million portfolio, largely from early investments in AI and other growth stocks..
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘Diana Casteel Lynch’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Retirement is becoming increasingly challenging for many people. Low wages, inflation, and high rent costs make it difficult to save, and now, even middle-class Americans are struggling to buy homes-leaving them with fewer retirement options.
The rising costs have disrupted my plan to retire at 62, work part-time, and save for the future. I can't help but wonder if those who went through the 2008 financial crisis had an easier time than I’m facing now. The combination of stock market volatility and decreased income is causing me concern about whether I’ll have enough saved for a comfortable retirement.
This is exactly why I value the expertise of a portfolio coach in guiding my daily market decisions. Their extensive knowledge in simultaneously managing long and short positions, leveraging risk for asymmetrical upside, and employing strategic hedging to mitigate downturns significantly enhances performance potential. With their skillset, underperformance is highly unlikely. Having worked with a portfolio coach for over two years, I have realized gains exceeding $800,000.
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
High prices for everything have severely affected my plan of retiring. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.
Got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. I've been fortunate enough to achieve a 10x return compared to my previous efforts as a DIY investor, summing up nearly 85% ROI as of today.. My best so far!!
Melissa Terri Swayneis the licensed advisor I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
@@Ji-Min-j7b How do I get involved in this? I am excited to take part because I genuinely want to build a stable financial future. Who is the main inspiration behind your accomplishments?
Sophie Lynn Carrabus is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Retirement becomes truly rewarding when you have two key components: a solid financial foundation and a clear sense of purpose. Making wise investment decisions is crucial to achieving strong returns and enjoying a secure retirement.
Rising costs have impacted my original plan to retire at 62, work part-time, and grow my savings. I can't help but wonder if those who navigated the 2008 financial crisis had an easier time compared to the challenges I’m currently facing. Market volatility, combined with a lower income, has me concerned about having enough for a comfortable retirement.
You’re absolutely correct-financial advisors have access to strategies and opportunities that aren’t always available to the general public. I earned £560k in 2022 with guidance from my fiduciary advisor. Am I cashing out? Definitely not. I’m taking a step back to watch how the market evolves.
I’ve been considering that path myself. I have a significant stock portfolio, but some holdings are starting to decline in value. I'm unsure whether to hold onto them or sell, and I think hiring your advisor could help me effectively restructure my portfolio.
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
If you haven't got to pay for rent or mortgage you can live on £1k a month. I semi retired at 50 then fully at 55 with a small pension build up over 17 years. I live the life i want and im very happy.
It's amazing how history keeps repeating itself, and the urgency to prepare is definitely real! Investing can be the best decision of your financial life. I started my journey in 2021, and it’s been the best choice I've made for my finances.
No matter how long you wait, opportunities will arise in the market. Invest for the long term, and avoid being too greedy or too fearful. Making informed decisions is crucial; relying on luck isn’t enough, so partnering with an advisor is essential.
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
*Izella Annette Anderson* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
on the question 1:48 "would you have outlived your money, or would your money have run out before you die" - which is the greatest risk? personally, a 100 year old with no money left in the bank is a much better outcome that dying at 70 with loads of money to spare.
So at what age do you target running out of money? That is an ideal scenario for some but the age of death is unpredictable for most people, so it's impossible to achieve except by chance.
I am surprised that no one has commented that the two questions have exactly the same meaning but they are phrased differently. What was intended (I believe) was "will you outlive your money, or will your money outlive you?".
@@patoises I disagree. 100 yo with no money left is a life threatening situation. 70 yo with lot of money left after his death is just lost opportunity.
@@pistopitpit I would concur. Living in poverty is one of the worst things I can think of health issues excepted. I would say the retirement pot and spending need to be continuously managed to ensure the retireree does not run out of money ever.
@@badass6656 exactly. The world is cruel to an extent that I would risk to say: you have far higher chance of dying if you do not have money. It’s sad really that basic income is not assured. That is why we are all slaves of capitalism and that is why money is power. Power over your own existence, power over your time. Save and invest is the only way out, despite it is not guaranteed.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
My original retirement plan was to retire at 62, work part-time, and save diligently. However, rising costs have significantly disrupted this plan. I’m concerned about whether those who faced the 2008 financial crisis had an easier time compared to the challenges I'm facing now. With a shrinking income and the stock market's volatility, I'm worried about my future Medicare expenses and whether I’ll have enough savings for retirement, especially since I’m unable to contribute as much as I once did.
I’m still working full time. I do enjoy my work, it provides me with purpose and has secured my financial future. Most people are too eager to retire as early as possible. Even if you do retire early, best to get a part time job for the reasons cited above, as well as following many if not all of the suggestions in this video.
My advice: for newbies to grow financially this year, invest. Saving is good, but investing elevates your finances. Why newbie make huge losses on trade is because investing without proper guidance can lead to mistakes and losses. that will stop you from trading, this has been one of the biggest problem to new traders, I've learned this from my own experience
Sonya Lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I retired 55 with 110k no debts living frugally on 10k a year just reached pension age 66 it wasn't as hard as I thought it would be .best thing I ever done 😊❤
Very interesting. Did you have the 110k invested? Did you not run out before state pension. I’m single, also looking to retire at 55 with around 250k invested.
@@hupomone0609 yes approx 110 k it wasnt easy living frugally but i wrote all outgoings down and stuck to it should bi easier with 250k providing you have no debt .p.s. no car no morgage no debt and i reached retirement 😁👍
Retirement planning is tricky, but figuring out where to pull funds first made a big difference for me. I strategically reinvested my RMD, and despite doing very little trading myself, I’ve been able to build a stable weekly income of around $25k. It’s amazing how a well-thought-out plan can ease financial pressure later in life.
Dave is someone who offers guidance and strategies for trading, helping individuals navigate the market more effectively. He’s known for his personalized approach, which can be really helpful for both new and experienced traders!
Hello, I am due for retirement in two years, I'm a senior citizen but I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $50K per year but nothing to show for it yet.
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advlsory.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with Melissa Elise Robinson for years and highly recommend her. Look her up to see if she meets your criteria.
I'm 49 and earn about £2M ($2.5M) per year and save about 30% in HYSA's. I've been reading a lot of articles mentioning how w0rthless 'cash savings' are in this current unstable economy. D0 you suggest I invst in real estate, stocks or Gold?
A consistent 5% return from the bank and US securities sounds better to me than worrying about losing your money if the stock market falls. Also consider financial advisory with the size of your budget.
The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively in ROI, summing up to 7-figures as of today.
The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Finding financial advisors like *Marisa Michelle Litwinsky* who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
I’m 52 hoping to end the rat race by 60 with above $1M. I know money is a liability to be exchanged for assets with real value like real estate (properties for rent) stocks (dividends) bonds (interest) But, what is it with bitcoin? I hear a lot about it and I'd love to diversify my portfolio.
I went from no money to lnvest with to busting my A** off on Uber eats for four months to raise about $20k to start trading with Evelyn Infurna. I am at $128k right now and LOVING that you have to bring this up here
She hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost a million bucks in my portfolio.
Great to see some sensible illustrations and that a £200K pot plus full state pension means it is manageable. While the government’s keep raising state retirement age (due to costs) it means more people need to focus on their personal Plans either through work pension or a SIPP. The message is time to look after yourself. I was lucky in that my later years were also in my best paying job and I was putting extra contributions into my pension, plus annual bonus money. Although I lost that job at 60 my next job being at 50% pay of previous role my extra payments had taken effect. Moving funds out of the default lifestyle also saw much better returns. Inheritance from parents meant I could boost pension further and invest in a small property getting a boost in income. Made redundant last year but had planned to retire April 24 at age 64, so it was just 5 months earlier than planned. Don’t miss work one bit at all, have enough to do socially and with family and enjoy life being a lot less stressful.
I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
I am retiring next yr at 57 with steady income stream from my $4 Million dividend portfolio total $650,000 a yr to live comfortably, and its all because of my Fee only Advisor who handles activities in my Portfolio. 3 houses paid off worth 3.5 million. my place of residence and other 2 properties will give me $200,000per/yr rent, I also have no debts ... Stay Motivated!!🌹✅
I work with Essmildaa too! transferred all of my IRA from managing it myself, to making her my advisor. BEST decision ever! I truly enjoy the trades. I found exactly what I was looking for.
Essmildaa Morgan has helped me diversify My portfolio. With 60% sp500 and 40% Short-term, Low cost Investments that covers the stock market, which are heavily rooted in equities. with target of up to 15%, annually depending on trade. She is the best thing that happened to me as an investor.
I am 59 and have semi retired from work for health issues. I took my lump sum and invested it in various accounts etc with no drawing down. Now mortgage/debt free (reinvesting that money ). Have a side emergency fund. I hope to keep working part time for at least the next 5 years (health permitting) and will continue to save and invest. I found your figures extremely high, My overall retirement package is about half of your lowest figure for a single.
Thank you Pete, so refreshing to hear someone say it and not scare folk quoting PLSA expected spending figures. The other thing you can't plan for are unexpected events like having a serious heart attack at age 52 as I did in January ! Didn't even know it was happening - I went to hospital on the bus to save parking fees ! 😂 Then 3 weeks into my recovery from a stent procedure my employer announces 250 redundancies they were looking to fill through voluntary applications so I took the money and ran. Now living frugally off the redundancy pay in the hope that it will see me through to 55. You never know what is around the corner folks.
BTW any video plans or insight into the quirk in the NMPA that means those of us born after 6 April 1971 but before 6 April 1973 will gain access to our Pensions at 55 but - as per current legislation - we will then LOSE access in April 2028 as we won't have turned 57 ?!!!
Those bloody figures! I see some people say the Which? figures are far more realistic. Take care of yourself, I'm on myriad tablets to try and avoid that happening.
Planning for unexpected events such as yours is entirely possible. You just have to set up policies such as income protection, critical illness cover or life cover. These policies should always be used as part of any financial plan so that if the worst happens you/your family have the money you/ they need.
One in 10 failure is actually not acceptable - while 100% certainty is in fact an impossibility - i would not accept more than a 5% failure rate and 2.5% is where i actually want to be.
@@NekonataVirino Isn't the idea that you would be flexible given the circumstances. Most failures occur with a market failure at the beginning of retirement (especially in any time before state pension age), if you have a plan for that (draw out less, work another two years, etc) most failure cases can be avoided. If you also take likelihood of death by age into account against the success rate at that age the risk goes down further.
My two penneth is to work out a detailed budget before you stop work and then check this against what you actually spend. That should give you a good idea of whether you're on track or not. Mine has been ok apart from a few unexpected big bills on the house/car etc so ive added a bit of contingency in my future budget.
Fantastic video, Pete! 🙌 I really hope a younger audience gets to see this, as it’s incredibly valuable to learn these lessons early on. I hear so many of my peers worrying they’ll never be able to retire with their current financial situation, but your perspective brings a lot of hope and practical advice. Thanks for sharing this, more people need to hear it!
Fifteen years ago, I used to think the same way (that I would never be able to retire before state pension age) but here I am, retired a few years early and having proved that the last ten years can make a big difference, although the previous ten years getting out of debt also helped me to economise, so you just convert those debt repayments into pension investments once the debt is payed down.
The day I retired I woke up with a jolt worrying if we would have enough. Reality is we probably could have retired a few years earlier, or even much earlier. But my last job wAs the best time of my career...but careful planning and getting money into cheap global index trackers seems key!
Excellent video Pete, and along the same lines as I have been calculating. The problem and fear that I (and I suspect many others watching this video) have is what our new government are going to do to state pension, given their seeming strategy of taking money off people who work/save hard and giving it to those that don't.
Thank you for posting this Pete. I know you probably won't see my comment but this is timely for me. As a single person I've been feeling very dispirited and disheartened of late, especially dreading the impending taxes with the new Govt, wondering if I can ever afford to retire. I plan outside of state pension but my occ pension is quite pitiful but luckily I've paid off my mortgage so I've been thinking a lot about saving enough to retire even if I am not confident that it will be enough. Thank you for boosting my confidence with this video. I think I am despairing a little less after watching this.
I've never seen this scenario discussed.... You want to retire from full time work at 60 but would be happy to work part time - earning roughly the equivalent of your state pension (so tax free earnings) until you are 67. Then your pension draw-down wouldn't have to be so significant in those 7 years leading up to your 67th. This would make an interesting video and I would imagine lots of us are thinking along the same lines...
Given that you have adequately described the scenario in a less than 30 seconds read, it probably doesn't need a video. I suspect that quite a lot of people do this, Often by dropping down to part-time working in their existing role. It wouldn't have worked for me, so I was glad to retire fully a few years early, partly because I didn't realise how much we had saved, or how much less we'd be spending (in part due to serious but unpredictable illness).
@@mrkrotosuk You are correct, under the current rules. The query/suggestion is about how best to bridge the gap to state pension using a combination of continuing part-time employment and pension savings. You may want to do that if either you don't have sufficient personal pension income to meet your needs, or if you enjoy your work and wish to wind down slowly (or perhaps for other reasons).
Thanks, Pete. I think reinforcing the inportance of our unique situations (for my wife and I it's mostly an age gap one) really helps viewers. Best wishes.
THE BIG ASSUMPTION...that current rules for drawing pensions remain static. They won't. They can't. Successive governments over decades have ingored the obvious economics that underpin the pensions economics. It'll be tough for our kids unless we help them financially and if we don't educate and prepare them sufficiently. Well done for continuing to champion the pension education cause, Pete - great job as usual.
1) the future existence of the state pension is in doubt; 2) inflation data is an inaccurate amalgam of various types of spend which have little relevance to day to day spending; 3) real world inflation data for said day to day spend is order of magnitudes higher than the official figure; 4) the inflationary projections for that data is massively uncertain in the future - thus your purchasing power is likely to diminish massively 5) thus assuming a 4% inflation rate is nonsense when baked beans have increased 75% in a single year
I retired at 57 and my wife 56, I am now 66 and claiming my private and state pension. My wife gets her smaller pensions later this year. We were partly able to do this by moving to a cheaper area, whilst having the advantage of being near the coast. Our total wealth at 57/56 was about £320k, but at the end of this year when we have all our pensions in place we will still have £160k in savings. We run two nice cars and have two foreign holidays a year, as well as belonging to a golf club and a gym. This has been made possible through careful budgeting, planning, and a small amount of investing. The point is if you don't blow all your money on your grown up family and are prepared to move you can retire on relatively little money
160k left and only 66? are you not going to run out of money? maybe i read that wrong. You still have all your pension money and that 160k is to do whatever you want with as its technically not even needed for you to live well.
@@TheInnerSession Our joint pensions amount to approx about £35k a year after tax, and we have savings of £160. We live on about £30k a year, so plenty really
@@br5380 I think you're missing the point, I am not short of money and believe you don't need as much money to retire as you may think. As it happens though we did try and just have one car, but because of our social lives it didn't work out. In Fact, at one stage we also had a vintage car as well. I live on the east coast of Lincolnshire, and any form of public transport is a no no
@@watchalot919 i live in lincolnshire too lols. and people are just reading your comment wrong(including me) i intiially though tyou meant you only had 160k left of your pension and savings lol. but nah your loaded..
Pete, love your videos, long time watcher. Could I suggest that anytime you mention a number (age/money), to put them on screen as well? It would be a lot easier to follow. Thank. you
The recent inflation shock has meant, while my net worth has increased by 10% since 2021, the equivalent spending power of my assets has actually dropped by about 14%. These extreme events are pretty scary for the longevity of a portfolio. 😮
Equity’s beat inflation overtime. That’s why you invest in them. An example of this is the inflation adjusted return of say the S&P 500 is 4% on average when the no adjusted return is closer to 10% per year.
I’m going to manage my own retirement account. My plan is five years of spending money out of the market, 70 percent in VTI, 30 percent in a total bond fund.
My first port of call was to invest in how much you can reduce your utility bills. This for me saved an astonishing equivalent to £100k in a pension pot. It’s easy to do, but you need to think carefully on how to achieve that result.
@@mangaikannan2330 You don’t actually need Solar panels but it does help. If you look at your electric use, along with what tariff you are on that’s the first thing to sort out. You will need to invest to maximise any savings, so please bare this in mind. It’s an investment to your future. If you can afford battery storage this is the best way to reduce your electricity bill. Fill the batteries up over night on low rate, then use the power stored for the time you are at home in the daytime. Also look at when you are using big energy drawing appliances such as Washing machines and have those to work over night and not the daytime. This way of using electricity becomes the norm after a while and you really will see a huge difference to your bill. You would need to research the batteries option as nit all batteries are the same, nor are the inverters. You do need an inverter that’s around a 5kw output to stop you using grid electric when the batteries are being used. Most are only 3Kw rated. It’s a bit of a mine field, so search out a good well recommended company that know their onions are will help you decide. Again it will need investment so the other things to look at is an EV rather than petrol or diesel. I drive a ridiculous amount of miles as I live rural Devon. My little EV costs nothing to run or to service, and it does almost 250 miles per charge. The bill to run my home and the car for a full month is £17 for electricity and £20 standing charge, which is a rip off. This alone saves me around £4k per year in fuel and servicing. The other thing you can look at is to use rain water to flush your toilets. This would save you a small fortune. 2/3 if the water charge is for sewerage, if you cut that out you will immediately change your bill downwards. These are just a few things I have done and I’m saving enough per year that’s equivalent to over a £100k pension pot. It may not suit everyone and you cut your cloth as they say. Second hand EVs have never ever been so cheap, so anyone who argues otherwise are not living in the real world. Hope this helps a little
Is downsizing property a valid route to bolstering funds? Say if you have £500k equity in a house and move to a smaller house for £300k, does adding that £200k to a pension or high interest savings account work ok? Is this what most people do anyway?
Only if by comfortable you mean a 2 bed terrace in Bradford, shared ownership of a bike, a Lidl loyalty card and 7 nights self catering in a 2* tower block in Marmaris.
55 looking to retire at 60. Have around 600k currently and no mortgage on my home. Wife has little pension probably around 50k. Maximising as much as possible before we both go at 60. Hopefully have around 800k in 5 years and that should be fine. Our outgoings are about 25K a year including Holidays and one car.
I think it is an important message to get across that often people can retire earlier than they think.You don't seem to cover converting pension pots to annuities, but this is a very relevant option. It was the method I chose to retire at 60 at the beginning of this year, I actually got a significantly enhanced annuity because of lifestyle\health. It covers all of my basic costs and then some. I have sufficient capital in a mix of ISSA and bonds to fund reasonable discretionary spending (extra holidays , house modifications). Once I reach State Pension age I will be very comfortable. My available spend still goes up every year in the meantime. I would encourage anyone who is around 60 and already owns their property, to have a chat with a pension advisor such as yourself to look at the maths dispassionately, they may get a pleasant surprise as I did.
@@alexm7310 surprisingly I fill my days really well at the moment. Golf, gardening and then all those chores that I would normally have to cram at the weekend, so at weekend we get to do some family stuff. Also been on 3 holidays with 3 more booked before end of year. Mrs retires next year so some longer travel plans ahead. I worked from age 16 at same PLC so the well was trying dry having done 38 years there. Not missed work at all so far which is a bit of a surprise.
@@alexm7310 humans gatta keep moving if you spent your working life behind a desk meeting and greeting. The real working stiffs need to recover from it 😁
Why do you "need" to retire? Perhaps you enjoy the social part of the job, or the salary is good, or you have not built up enough for your retirement? Or maybe you really enjoy working or fear retirement! Unless you have no other choice, keepl working, maybe go down to part-time hours, as retirement can be very long.
How much do people that have retired in early 50s have in their pension pot and ISA to bridge the gap and what income do they draw/what pension do they anticipate?
I'm retiring on March 1st 25, and I'm lucky enough to have a civil service pension . I've looked at the 50-70% income guide, and even at 70%, I should have that figure of my final salary coming in each month
Thank you, i was supprised a single person retiring at 60 could get £16k for the rest of their lifes with £200k, unless they live to 100, that much more than i thought.
Note that most of that will be from the UK State Pension of around £11,500 from 67 which he stated at the start he had assumed full entitlement to which should be correct if you worked fairly constantly in the UK from age 20-60.. Only £5k of your income is coming from the £200k after 67 as you will have used £16k per annum of it between 60 and 67. I am unclear on the tax impacts factored into his scenarios but tax should be fairly minimal at that low income as the Personal Allowance is £12,570 currently (2024-25 tax year).
@@michaeljohnston6811 that’s why state pension is a life saver. I still have 12 years to be 67 and I hope by then the state pension will be at least £15-16k and still available
@hometechUK ..unfortunately that isn't enough by itself over 25 years it would equal to £8000 per year from age 60 without a state pension (£200K divided by 25 years) once reaching age 67 you would get the state pension too to top this up to a more livable income
Strewth Pete, just look at how busy the bots have been! Good advice, and I think many people overestimate their cash needs in retirement. I certainly did and here I am at 70 years not having touched my very large pension fund and simply bolstering my state pension with saved cash and living very comfortably at the same time.
No one knows. I think it's more likely that the government will raise the retirement age again first which is largely uncontroversial. If they were to means-test the state pension then I'd be surprised if it wasn't phased n over many, many years to give people plenty of time to plan ahead. Anything less than that would be political suicide for whichever party implemented such a policy.
The government in the UK labels you economically inactive if you retire early. They dont want you retiring early and will make it difficult as it effect growth in the economy. Already strong rumours they will cap the 25% lump sum to 100k or worse remove it completely.
Agreed! And also to increase the pot to show more variables! There are some of us young ones out here that have had the advantage of finding your advice early and have some big goals as well :). Thanks for the video
I intend to switch to part time. I can see now that having worked from 16 and never being unemployed for a single day the shock of leaving work 100% could be too much. I have decided to phase into retirement and in doing so I can start earlier and still live well.
@@Nosolutionsonlytradeoff5 TBF if you are young you probably won't be able to access your private pension until 60 (you know moving goalposts). So if you do want to retire earlier best save some in another investment vehicle like an S&S ISA. Remember the LISA is already 60 for retirement purposes.
I’m just a bit confused, do the spending figures include the state pension? For example, you say a single person with £200k at state pension age can spend £20,000 a year. Is this a ~£9000/year draw from investments (so £11k pension + £9k = £20k) or £20k from investments (£31k with pension)?
I saw one of your posts a few weeks ago and started digging around in my safe and drawers. I have a defined benefit scheme with additional AVC's. I 'forgot' that I had 2 years stakeholder pension from a stop-gap job I did 10 years ago - GBP 80K. Now 58 and semi-retired doing my own thing and frantically arranging 25% tax free cash sum plus the remainder GBP 60K as a fixed term annuity to take all tax free within my personal allowance. Won't need to touch my defined benefit scheme until 65 - again maximising tax free cash before shitty Labour mess up state pension at 67.
The Tories had set the rise to 67 and proposals to 68. How on earth they think people in physical jobs will be able to do the work at that age I have no idea. It seems to me politicians forget not everyone is office based, lower incomes but in physically hard environments who don’t earn the funds to get a good defined contribution pot. MP’s of course get a very tasty defined benefit scheme based on their MP wages and while they can pay high amounts in the rewards for enhanced pension make it sensible eg A large pension for being an MP for 12 years
Depending on the budget and tax relief of pensions. I’ll look to switch investments back into ISA and spend tax free before retirement and leave my pension which potentially will be means tested in future as low as possible.
If you are planning for retirement Here are some key pointers. Firstly, kick-start your savings early to benefit from compounding. The longer your money has to grow, the better. Secondly, make the most of retirement accounts like 401(k)s and IRAs, especially if your employer offers a matching contribution - it's essentially free money. Thirdly, diversify your investments across different assets to mitigate risk. Think stocks, bonds, and real estate.
Great advice for retirement planning! Starting early and taking advantage of employer-sponsored plans can make a huge difference in the long run. And diversifying investments is crucial for managing risk. Thanks for sharing these valuable tips!
Spot on! Planning for retirement is crucial, and these pointers are gold. Diversifying investments is a key strategy plus, having an investment expert by your side can really help navigate the complexities and optimize your financial plan.
What would you do if you’re 60 and your savings are in Isa’s & not pensions? We have a lump sum but it’s all in savings pots, with tiny pensions but we’re in our early 60’s,
Excellent video. A real can of worms with so many different variables for specific individuals. It is amazing to me how many retired couples are living reasonably comfortable lives and have never worked out how much their income would be reduced if one of them dies. Final salary pensions may be reduced by half if they opted for widows pension. They would lose a state pension. It can really make a huge difference. One partner may also be receiving a state allowance eg DLA and this would stop. The financial situation of the partner left could radically change.
Thanks for the help. None of this worked. I have an old fire stick that works on both TVs with no problem. Very frustrating. But again thanks for the help.
I've spent a lot of my adult life on esa unfortunately, so has my husband. We are now both fit for work but only have 20 years to retirement. We are very nervous. How on earth do we make sure we'll be OK. We don't need fancy amounts of money, after all we've got through on esa sums. But we don't want to be stressing about heating, we've already been there thanks.
Despite having multiple DB pensions between us we’ve been trying to build some flexibility into our futures via SIPPs. Tricky to know what’s for the best ie. Early retirement/lump sums etc of deferred DB pensions.
Your vlogs normally make out that you need £1Million using the 4% rule give £40,000 per annum With a state pension of £980 per month => £11,760 per annum. I would struggle to spend £51,760 per annum or £1,000 per week with a mortgage free freehold house. In fact I would struggle to spend £350 a week.
The fact that there are so many over 60's in a sound financial position, eg, savings or portfolios £250,000.00 and over, means they have been financially astute, they will have very little or no debt, they will have private pensions as well as the state pension, and most important, their spending habits and attitude to being prudent won't change. They will die financially secure, we are in such a position, running out of years and no desire to spend frivolously, and therein lies the conundrum, how to prevent the state or care homes taking most of it?
i am exactly in that position, i’m retired and i get £2,600 a month net. outgoings (i pay council tax insurance etc in one go) are about £650. Leaves me £2k. i dont spend lots as i live alone as a widower. I save well over £1000 a month, adding to my £55k in the bank i don’t know what to do with. I do get disability benefits as im also paraplegic of 42 years but worked hard my entire life. i just realised how boring i am….
Given the way politics is at the moment and if you are retiring long into the future, the state pension is looking less and less likely to be dependable. My hope is that I don't live too long, and am healthy enough to keep on running my side hustles so I just keep on working. Theoretically I have planned to retire at 70 but I can't imagine not working in the way I do now, self employed with multiple side hustles, until the day I drop dead. Combining that work with whatever the state pension looks like, coupled with my SIPP and S&S ISA, both of which will be small because I started saving way too late because I am on a small income, means I may just scrape through without dying from starvation or a lack of heating in winter. At any rate, my pension predictions as they are now, mean I may have more income than I do now but heavens knows what 20 years into the future will look like.
One of the key items you don't touch on is how your spending decreases as your age increases... I am fortunate enough to have a 101 year od grandparent.. believe me, he spends nowhere near his state pension! His needs are simply much much less. He have his car up at 90, stopped travelling abroad at 85, stopped eating anything but Big Soup and the like many years ago. Everyone is different and if we are fortunate enough to reach that age I simply don't want the income I had at 60 if that meant I missed out on some freedom years when I still had the health and mobility.
When you retire you have first: * The go-go years (travelling, eating out, hobbies, activities, etc) * Then you have the slow-go years (my parents are at this stage now) * And finally the no-go years (your father)
Perhaps you could do a video showing as a couple who live till there 85 and spend 40k a year till there 75 and 30k a year after this including the statement pension.As you wont be able to do much foreign travelling etc after 75, particulary if your a male.The best years of retirement are 60-70 spending say 40k per annum then less year after year.You dont want to be the richest couple in the cemetery.
Annuities and pension plans are the answer forthe common man. Been doing it retired for 2 years now living on the Dave Ramsey envelope system until I take full S.S. next april. Life sucks retired now.
Hi Pete, another informative video, a quick question, my 25% tax free lump sum is due to be paid early Nov 24, do you think in the budget they could change the rules on this, which would effect how much I would receive due to tax changes? I think you previously said that it would need an act of parliament, therefore would take a while to implement.
Hi Pete, can you provide figures for those who want to retire early as in 45 or 50 years old. 60 years is not that early and doesn't align to the folks following FIRE
As you can't access your pension until 57, those figures are only relevant to yourself. Work out your pension target from 57 and then your desired income for the preceding years.
It's incorrect that you can only access your pension at 57. This is a widely misunderstood figure in the UK and even the financial gurus don't understand the facts. Age of access to your pension depends on your provider. If you request 55 as your age to access pension funds and the provider has protected retirement age then 55 is the age of access. This a protected and regardless of what government changes come into play in 2028 this remains protected. Pete the figures would be good if you could show at 45, 47, 50, 55. These are the early retirement years most FIRE folk relate too.....but your figures are always for 60 or 65 years and above. Hope you can address on a future video.
Pete, interesting thoughts. Unfortunately we don't know what the new government has in store for us. There seems to be a view that they have an eye on our pension savings. I have retired and receive the state pension but have left my DC pension in place, I have concerns that they will abolish the 25% tax free lump sum.
I think it more likely they will try to limit the tax relief on contributions, although the exact form is unknown. I hope there will still be some allowance at full rate relief, but £60k is incredibly generous when comparing with peer nations. This is most likely to raise tax income in the short term. I wouldn't rule out dropping the tax free sum to 20% but people have plans around receiving this and major changes late in life cannot be adjusted for, so would not be sensible.
Always very informative videos Pete, I’d like to see more content on retirement at 55-58 age bracket, while I appreciate it’s life style and wealth based, I’d like to see your views on same, allowing for a mixture of couples having ISA’s / Cash and pensions pots able to draw down for the age bracket as above. I totally appreciate it’s down to individual’s life style … I’m dreading working to 65 + ..
Next video idea - how about what should your retirement fund consist of, what ratio. So pension should not be the only source of retirement income; ISA’s, savings etc……but what ratio of each? 70% pension + 20% S&S isa + 10% cash savings?
That depends on the age you retire surely? ISAs are a bridge to when you can get your pension for the FIRE folk, or they are an alternative if your pension pot is going to hit 1.5m or so (higher tax rate in drawdown). You certainly need an emergency fund that can also act as a cash buffer against market downturns if your pension is still mostly equities.
I’m retired don’t have an ISA yet as made payments into Morgan’s pension fund a priority. Where I had a lump sum so was going to invest into ISA a major house issue meant the money had to be spent rather than add to mortgage ( I was 62) my mortgage scheduled to run to 2034, I retired this year. Pension plans always included covering the mortgage.
@@Equitybonds24Of course nobody knows for sure. But given the state of the country now, the widening birth gap, and rising inequality, there is a fair chance that pensions will be unaffordable in the future on a universal basis. So might be worth planning for that now.
Hi Pete. Great content as always but would appreciate if you could specific as to whether this spending includes the tax liability? I.e is this pre or post tax?
It's simpler than this. Pay off your mortgage and you can live comfortably on a pension which is 25% of your working income. I retired at 52 and have no problem with a 25% working income pension. I've still 8 years before I get my state pension. Remeber, no NI on pension payments, but you do pay income tax.
Nice video. I’d suggest slowing down a little and explaining more the assumptions behind your projections. Finally, some of us have kids that we need to fund through education and we wish to leave them an inheritance. Please explain how we should incorporate these issues
I’m a little confused by the ‘couple at 60’ figure for £200k being less than the combined state pension income. Is the rough idea you spend down the entire amount in the first 7 years and then live off state pension? but that’d only be £157k for the first 7 years.
The interest on 750k would be nearly 20k at 2.5%. You could live on that until you get to retirement. I wouldn't count your chickens with the state pension, if it becomes means tested, your on your own.
Hi, confused on what I saw. I know 4% rule is only a rough guide but you are showing 22.5K a year drawing from a pot of 200K for couple at 60 which is over 11%. What am I missing here...?
If you have £750k 'invested', and it grows at 4% (a pretty poor return) that equates to an income of £30k. So you could in theory spend £30k out of a £750k pension pot ... FOREVER
Hi. Can anyone help with a couple of questions? Please excuse me if I've missed something obvious. 🤷🏻♂️ The couple retiring at 60 with 200k. Are they both supposed to have a 200k pot? If not, then why can they take out over £1800 per month and not run out but someone single needs to take out approx £1300 at 60 in order to not run out? Is the tax burden on a single person making this big of a difference? Also, I don't think you mention how much either the couple or the single would have left to add to their pension when they reach 67. This is pretty important to me and probably a lot of others too. Thanks.
Would it not make more sense to build up a portfolio of dividend paying stocks with an average yield of 4%? If you accumulated 500k with a 4% yield, you'd be able to draw 20k per year and still keep your full ammount of investment. Combine that with the full state pension and you'd have a total pension income of 43k if single and 66k as a couple?
In the accumulation phase it's total return that's important, not dividend yield. In the deccumulation phase, it's income that's important, which could be achieved if you were invested in stocks which paid increasing dividends. The yield % is irrelevant, the amount paid is.
These days, retirement is harder than it used to be. Rather than investing, I have been saving for a very long period. I'm thinking of investing in stocks because of all the inflation, but I'm not only familiar with market tactics.
My advice to everyone is this, if you want to grow big next year especially in your finances, be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldn't have to worry about savings as you do now. Thanks to my FA, my portfolio is doing really great and i'm proud of the decisions i made last year.
Nice. People often underestimate financial advisors' importance. Over 50 years of data reveal that those who work with advisors typically earn more than those who go it alone. I've been fortunate to work with one for 8 years, resulting to a $1 million portfolio, largely from early investments in AI and other growth stocks..
I've been considering but haven't been proactive. Can you recommend your advisor? Could really use some assistance.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘Diana Casteel Lynch’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for the recommendation. I'll send her an email and I hope I'm able to connect with her.
Retirement is becoming increasingly challenging for many people. Low wages, inflation, and high rent costs make it difficult to save, and now, even middle-class Americans are struggling to buy homes-leaving them with fewer retirement options.
The rising costs have disrupted my plan to retire at 62, work part-time, and save for the future. I can't help but wonder if those who went through the 2008 financial crisis had an easier time than I’m facing now. The combination of stock market volatility and decreased income is causing me concern about whether I’ll have enough saved for a comfortable retirement.
This is exactly why I value the expertise of a portfolio coach in guiding my daily market decisions. Their extensive knowledge in simultaneously managing long and short positions, leveraging risk for asymmetrical upside, and employing strategic hedging to mitigate downturns significantly enhances performance potential. With their skillset, underperformance is highly unlikely. Having worked with a portfolio coach for over two years, I have realized gains exceeding $800,000.
Speaking of coaching, do you have any recommendations? I have about $80k to invest now that large-cap stocks are trading at a discount.
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
The solution is to live in a cheaper country, many to choose from, only western countries are becoming unaffordable 😊
High prices for everything have severely affected my plan of retiring. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.
Got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. I've been fortunate enough to achieve a 10x return compared to my previous efforts as a DIY investor, summing up nearly 85% ROI as of today.. My best so far!!
Can you share details of your CFA? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
Melissa Terri Swayneis the licensed advisor I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
@@Ji-Min-j7b How do I get involved in this? I am excited to take part because I genuinely want to build a stable financial future. Who is the main inspiration behind your accomplishments?
Sophie Lynn Carrabus is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Retirement becomes truly rewarding when you have two key components: a solid financial foundation and a clear sense of purpose. Making wise investment decisions is crucial to achieving strong returns and enjoying a secure retirement.
Rising costs have impacted my original plan to retire at 62, work part-time, and grow my savings. I can't help but wonder if those who navigated the 2008 financial crisis had an easier time compared to the challenges I’m currently facing. Market volatility, combined with a lower income, has me concerned about having enough for a comfortable retirement.
You’re absolutely correct-financial advisors have access to strategies and opportunities that aren’t always available to the general public. I earned £560k in 2022 with guidance from my fiduciary advisor. Am I cashing out? Definitely not. I’m taking a step back to watch how the market evolves.
I’ve been considering that path myself. I have a significant stock portfolio, but some holdings are starting to decline in value. I'm unsure whether to hold onto them or sell, and I think hiring your advisor could help me effectively restructure my portfolio.
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
If you haven't got to pay for rent or mortgage you can live on £1k a month. I semi retired at 50 then fully at 55 with a small pension build up over 17 years. I live the life i want and im very happy.
In principle I agree with you in principle but £1k would be enough now but 10 yrs down the line and that £1k will be worth a lot less
@@Insertnamehere3000 Not when your investment keeps up with inflation also.
After council tax , utility bills etc ! 1k would give you no food or money to protect future income as Murphy’s will visit
You are happy because you know how to be.
@@nickdolan8068 council tax, service charge, water, electric, internet and netflix is about £350 per month, so still £650 left
It's amazing how history keeps repeating itself, and the urgency to prepare is definitely real! Investing can be the best decision of your financial life. I started my journey in 2021, and it’s been the best choice I've made for my finances.
What's the best way to begin, and how long until it starts yielding profits?
No matter how long you wait, opportunities will arise in the market. Invest for the long term, and avoid being too greedy or too fearful. Making informed decisions is crucial; relying on luck isn’t enough, so partnering with an advisor is essential.
I hope you don’t mind suggesting your sûpervisor, as you mentioned before
Olivia Charlotte Oswald
She's an amazing professional I’ve had the pleasure of engaging with. You can look her up
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
@@mikegarvey17Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
@@mikegarvey17I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
*Izella Annette Anderson* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
on the question 1:48 "would you have outlived your money, or would your money have run out before you die" - which is the greatest risk? personally, a 100 year old with no money left in the bank is a much better outcome that dying at 70 with loads of money to spare.
So at what age do you target running out of money? That is an ideal scenario for some but the age of death is unpredictable for most people, so it's impossible to achieve except by chance.
I am surprised that no one has commented that the two questions have exactly the same meaning but they are phrased differently. What was intended (I believe) was "will you outlive your money, or will your money outlive you?".
@@patoises I disagree. 100 yo with no money left is a life threatening situation.
70 yo with lot of money left after his death is just lost opportunity.
@@pistopitpit I would concur. Living in poverty is one of the worst things I can think of health issues excepted.
I would say the retirement pot and spending need to be continuously managed to ensure the retireree does not run out of money ever.
@@badass6656 exactly. The world is cruel to an extent that I would risk to say: you have far higher chance of dying if you do not have money. It’s sad really that basic income is not assured.
That is why we are all slaves of capitalism and that is why money is power. Power over your own existence, power over your time. Save and invest is the only way out, despite it is not guaranteed.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
Mind if I ask you to recommend this particular coach you using their service?
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Im 38 and even im sh****g myself about it and i don't even have a fancy lifestyle!
My original retirement plan was to retire at 62, work part-time, and save diligently. However, rising costs have significantly disrupted this plan. I’m concerned about whether those who faced the 2008 financial crisis had an easier time compared to the challenges I'm facing now. With a shrinking income and the stock market's volatility, I'm worried about my future Medicare expenses and whether I’ll have enough savings for retirement, especially since I’m unable to contribute as much as I once did.
I’m still working full time. I do enjoy my work, it provides me with purpose and has secured my financial future. Most people are too eager to retire as early as possible. Even if you do retire early, best to get a part time job for the reasons cited above, as well as following many if not all of the suggestions in this video.
My advice: for newbies to grow financially this year, invest. Saving is good, but investing elevates your finances. Why newbie make huge losses on trade is because investing without proper guidance can lead to mistakes and losses. that will stop you from trading, this has been one of the biggest problem to new traders, I've learned this from my own experience
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
Sonya Lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I retired 55 with 110k no debts living frugally on 10k a year just reached pension age 66 it wasn't as hard as I thought it would be .best thing I ever done 😊❤
Very interesting. Did you have the 110k invested? Did you not run out before state pension. I’m single, also looking to retire at 55 with around 250k invested.
@@hupomone0609 yes approx 110 k it wasnt easy living frugally but i wrote all outgoings down and stuck to it should bi easier with 250k providing you have no debt .p.s. no car no morgage no debt and i reached retirement 😁👍
Retirement planning is tricky, but figuring out where to pull funds first made a big difference for me. I strategically reinvested my RMD, and despite doing very little trading myself, I’ve been able to build a stable weekly income of around $25k. It’s amazing how a well-thought-out plan can ease financial pressure later in life.
25k a week? Amazing! how did you get started?
I signed up for a 1-on-1 trading session. It's like copy trading, but with personalized guidance.
the session was secure and a supportive way to improve your trading skills while earning, the best part is there's no upfront payment required at all
I suggest consulting with Dave for guidance, This way you can get strategies designed to address your unique long/short-term goals
Dave is someone who offers guidance and strategies for trading, helping individuals navigate the market more effectively. He’s known for his personalized approach, which can be really helpful for both new and experienced traders!
Hello, I am due for retirement in two years, I'm a senior citizen but I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $50K per year but nothing to show for it yet.
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advlsory.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I’ve been considering getting one. Can you recommend your advlsor?
I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with Melissa Elise Robinson for years and highly recommend her. Look her up to see if she meets your criteria.
Thank you for the recommendation. I'll send her an email and I hope I'm able to connect with her.
The amounts people spend shock me too: I spend under 10k a year
I'm 49 and earn about £2M ($2.5M) per year and save about 30% in HYSA's. I've been reading a lot of articles mentioning how w0rthless 'cash savings' are in this current unstable economy. D0 you suggest I invst in real estate, stocks or Gold?
A consistent 5% return from the bank and US securities sounds better to me than worrying about losing your money if the stock market falls. Also consider financial advisory with the size of your budget.
The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively in ROI, summing up to 7-figures as of today.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
*Marissa Lynn Babula* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
You earn £2m per year and you are asking for advice from random TH-cam commenters? Staggering.
The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?
Finding financial advisors like *Marisa Michelle Litwinsky* who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Life is short as we all know,we all have lost friends and family before they had time to enjoy there retirement,enjoy and make memories now ❤
I’m 52 hoping to end the rat race by 60 with above $1M. I know money is a liability to be exchanged for assets with real value like real estate (properties for rent) stocks (dividends) bonds (interest) But, what is it with bitcoin? I hear a lot about it and I'd love to diversify my portfolio.
bitcoin does not pay any yield but will reward you with growth that you can't find in any other asset class
I went from no money to lnvest with to busting my A** off on Uber eats for four months to raise about $20k to start trading with Evelyn Infurna. I am at $128k right now and LOVING that you have to bring this up here
She hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost a million bucks in my portfolio.
I want to be part of this success... I need to contact Evelyn immediately. Thanks for the info
She's definitely a top player in the trading world. Her ability to make successful trades is really impressive
Great to see some sensible illustrations and that a £200K pot plus full state pension means it is manageable.
While the government’s keep raising state retirement age (due to costs) it means more people need to focus on their personal
Plans either through work pension or a SIPP. The message is time to look after yourself.
I was lucky in that my later years were also in my best paying job and I was putting extra contributions into my pension, plus annual bonus money. Although I lost that job at 60 my next job being at 50% pay of previous role my extra payments had taken effect. Moving funds out of the default lifestyle also saw much better returns.
Inheritance from parents meant I could boost pension further and invest in a small property getting a boost in income.
Made redundant last year but had planned to retire April 24 at age 64, so it was just 5 months earlier than planned.
Don’t miss work one bit at all, have enough to do socially and with family and enjoy life being a lot less stressful.
I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
I am retiring next yr at 57 with steady income stream from my $4 Million dividend portfolio total $650,000 a yr to live comfortably, and its all because of my Fee only Advisor who handles activities in my Portfolio. 3 houses paid off worth 3.5 million. my place of residence and other 2 properties will give me $200,000per/yr rent, I also have no debts ... Stay Motivated!!🌹✅
Amazing! thank you for sharing your experience. do you mind also sharing your how to find your Fee Only Advisor?
Essmildaa Morgan is well known, just look her up.
I did quick research on her, she has pretty decent credentials, I found this very helpful, thank you!
I work with Essmildaa too! transferred all of my IRA from managing it myself, to making her my advisor. BEST decision ever! I truly enjoy the trades. I found exactly what I was looking for.
Essmildaa Morgan has helped me diversify My portfolio. With 60% sp500 and 40% Short-term, Low cost Investments that covers the stock market, which are heavily rooted in equities. with target of up to 15%, annually depending on trade. She is the best thing that happened to me as an investor.
This is so helpful for those with small pots and limited time to accumulate big numbers, thank you!
I am 59 and have semi retired from work for health issues. I took my lump sum and invested it in various accounts etc with no drawing down. Now mortgage/debt free (reinvesting that money ). Have a side emergency fund. I hope to keep working part time for at least the next 5 years (health permitting) and will continue to save and invest. I found your figures extremely high, My overall retirement package is about half of your lowest figure for a single.
Thank you Pete, so refreshing to hear someone say it and not scare folk quoting PLSA expected spending figures. The other thing you can't plan for are unexpected events like having a serious heart attack at age 52 as I did in January ! Didn't even know it was happening - I went to hospital on the bus to save parking fees ! 😂 Then 3 weeks into my recovery from a stent procedure my employer announces 250 redundancies they were looking to fill through voluntary applications so I took the money and ran. Now living frugally off the redundancy pay in the hope that it will see me through to 55. You never know what is around the corner folks.
BTW any video plans or insight into the quirk in the NMPA that means those of us born after 6 April 1971 but before 6 April 1973 will gain access to our Pensions at 55 but - as per current legislation - we will then LOSE access in April 2028 as we won't have turned 57 ?!!!
Those bloody figures! I see some people say the Which? figures are far more realistic. Take care of yourself, I'm on myriad tablets to try and avoid that happening.
Planning for unexpected events such as yours is entirely possible. You just have to set up policies such as income protection, critical illness cover or life cover. These policies should always be used as part of any financial plan so that if the worst happens you/your family have the money you/ they need.
One in 10 failure is actually not acceptable - while 100% certainty is in fact an impossibility - i would not accept more than a 5% failure rate and 2.5% is where i actually want to be.
@@NekonataVirino Isn't the idea that you would be flexible given the circumstances. Most failures occur with a market failure at the beginning of retirement (especially in any time before state pension age), if you have a plan for that (draw out less, work another two years, etc) most failure cases can be avoided. If you also take likelihood of death by age into account against the success rate at that age the risk goes down further.
This is a brilliant video with clear free advice.
Indeed!
My two penneth is to work out a detailed budget before you stop work and then check this against what you actually spend. That should give you a good idea of whether you're on track or not. Mine has been ok apart from a few unexpected big bills on the house/car etc so ive added a bit of contingency in my future budget.
Fantastic video, Pete! 🙌 I really hope a younger audience gets to see this, as it’s incredibly valuable to learn these lessons early on. I hear so many of my peers worrying they’ll never be able to retire with their current financial situation, but your perspective brings a lot of hope and practical advice. Thanks for sharing this, more people need to hear it!
Fifteen years ago, I used to think the same way (that I would never be able to retire before state pension age) but here I am, retired a few years early and having proved that the last ten years can make a big difference, although the previous ten years getting out of debt also helped me to economise, so you just convert those debt repayments into pension investments once the debt is payed down.
As a widower its great to see single figures talked about
So are the undateables
The day I retired I woke up with a jolt worrying if we would have enough. Reality is we probably could have retired a few years earlier, or even much earlier. But my last job wAs the best time of my career...but careful planning and getting money into cheap global index trackers seems key!
how much did you retire with?
Excellent video Pete, and along the same lines as I have been calculating. The problem and fear that I (and I suspect many others watching this video) have is what our new government are going to do to state pension, given their seeming strategy of taking money off people who work/save hard and giving it to those that don't.
Your advice is outstanding Pete. I am forever grateful!
Thank you for posting this Pete. I know you probably won't see my comment but this is timely for me. As a single person I've been feeling very dispirited and disheartened of late, especially dreading the impending taxes with the new Govt, wondering if I can ever afford to retire. I plan outside of state pension but my occ pension is quite pitiful but luckily I've paid off my mortgage so I've been thinking a lot about saving enough to retire even if I am not confident that it will be enough. Thank you for boosting my confidence with this video. I think I am despairing a little less after watching this.
I've never seen this scenario discussed.... You want to retire from full time work at 60 but would be happy to work part time - earning roughly the equivalent of your state pension (so tax free earnings) until you are 67. Then your pension draw-down wouldn't have to be so significant in those 7 years leading up to your 67th. This would make an interesting video and I would imagine lots of us are thinking along the same lines...
This is exactly what I want to do
Given that you have adequately described the scenario in a less than 30 seconds read, it probably doesn't need a video. I suspect that quite a lot of people do this, Often by dropping down to part-time working in their existing role. It wouldn't have worked for me, so I was glad to retire fully a few years early, partly because I didn't realise how much we had saved, or how much less we'd be spending (in part due to serious but unpredictable illness).
This is the kind of thing I want to do, I have the bonus of a final salery pension i have paid in to for 29 years :)
from my understanding you can draw from the private pension 10 years before state?
@@mrkrotosuk You are correct, under the current rules. The query/suggestion is about how best to bridge the gap to state pension using a combination of continuing part-time employment and pension savings. You may want to do that if either you don't have sufficient personal pension income to meet your needs, or if you enjoy your work and wish to wind down slowly (or perhaps for other reasons).
Thanks, Pete. I think reinforcing the inportance of our unique situations (for my wife and I it's mostly an age gap one) really helps viewers. Best wishes.
THE BIG ASSUMPTION...that current rules for drawing pensions remain static. They won't. They can't. Successive governments over decades have ingored the obvious economics that underpin the pensions economics.
It'll be tough for our kids unless we help them financially and if we don't educate and prepare them sufficiently.
Well done for continuing to champion the pension education cause, Pete - great job as usual.
On,y need 1 Tory gov before I retire to undo labours changes.
1) the future existence of the state pension is in doubt; 2) inflation data is an inaccurate amalgam of various types of spend which have little relevance to day to day spending; 3) real world inflation data for said day to day spend is order of magnitudes higher than the official figure; 4) the inflationary projections for that data is massively uncertain in the future - thus your purchasing power is likely to diminish massively 5) thus assuming a 4% inflation rate is nonsense when baked beans have increased 75% in a single year
Buy less beans
@@TheLeonPrior good point
What rubbish. You have no idea about inflation statistics.
@@terryboland3816 go on…
@@terryboland3816 please go on and explain how…
I retired at 57 and my wife 56, I am now 66 and claiming my private and state pension. My wife gets her smaller pensions later this year. We were partly able to do this by moving to a cheaper area, whilst having the advantage of being near the coast. Our total wealth at 57/56 was about £320k, but at the end of this year when we have all our pensions in place we will still have £160k in savings. We run two nice cars and have two foreign holidays a year, as well as belonging to a golf club and a gym. This has been made possible through careful budgeting, planning, and a small amount of investing. The point is if you don't blow all your money on your grown up family and are prepared to move you can retire on relatively little money
160k left and only 66? are you not going to run out of money? maybe i read that wrong. You still have all your pension money and that 160k is to do whatever you want with as its technically not even needed for you to live well.
@@TheInnerSession Our joint pensions amount to approx about £35k a year after tax, and we have savings of £160. We live on about £30k a year, so plenty really
do you really need 2 cars, surely just 1 and then occasional taxis etc would be far cheaper
@@br5380 I think you're missing the point, I am not short of money and believe you don't need as much money to retire as you may think. As it happens though we did try and just have one car, but because of our social lives it didn't work out. In Fact, at one stage we also had a vintage car as well. I live on the east coast of Lincolnshire, and any form of public transport is a no no
@@watchalot919 i live in lincolnshire too lols. and people are just reading your comment wrong(including me) i intiially though tyou meant you only had 160k left of your pension and savings lol. but nah your loaded..
Situation is much more rosy than presented as it assumes constant expenditure which will likely decline substantially 75yrs+
Pete, love your videos, long time watcher. Could I suggest that anytime you mention a number (age/money), to put them on screen as well? It would be a lot easier to follow. Thank. you
Noted, thank you 👍🏻
@@MeaningfulMoney Thanks Pete
The recent inflation shock has meant, while my net worth has increased by 10% since 2021, the equivalent spending power of my assets has actually dropped by about 14%. These extreme events are pretty scary for the longevity of a portfolio. 😮
Equity’s beat inflation overtime. That’s why you invest in them. An example of this is the inflation adjusted return of say the S&P 500 is 4% on average when the no adjusted return is closer to 10% per year.
@@sid35gb if only that was likely to happen over the next couple of decades. 🤞
I’m going to manage my own retirement account. My plan is five years of spending money out of the market, 70 percent in VTI, 30 percent in a total bond fund.
Which total bond fund if you don’t mind my asking? I was thinking of doing something similar
My first port of call was to invest in how much you can reduce your utility bills. This for me saved an astonishing equivalent to £100k in a pension pot. It’s easy to do, but you need to think carefully on how to achieve that result.
Other than solar panels, how else can we reduce bills?
@@mangaikannan2330 You don’t actually need Solar panels but it does help. If you look at your electric use, along with what tariff you are on that’s the first thing to sort out.
You will need to invest to maximise any savings, so please bare this in mind. It’s an investment to your future.
If you can afford battery storage this is the best way to reduce your electricity bill.
Fill the batteries up over night on low rate, then use the power stored for the time you are at home in the daytime. Also look at when you are using big energy drawing appliances such as Washing machines and have those to work over night and not the daytime. This way of using electricity becomes the norm after a while and you really will see a huge difference to your bill. You would need to research the batteries option as nit all batteries are the same, nor are the inverters. You do need an inverter that’s around a 5kw output to stop you using grid electric when the batteries are being used. Most are only 3Kw rated. It’s a bit of a mine field, so search out a good well recommended company that know their onions are will help you decide.
Again it will need investment so the other things to look at is an EV rather than petrol or diesel. I drive a ridiculous amount of miles as I live rural Devon. My little EV costs nothing to run or to service, and it does almost 250 miles per charge. The bill to run my home and the car for a full month is £17 for electricity and £20 standing charge, which is a rip off. This alone saves me around £4k per year in fuel and servicing.
The other thing you can look at is to use rain water to flush your toilets. This would save you a small fortune. 2/3 if the water charge is for sewerage, if you cut that out you will immediately change your bill downwards.
These are just a few things I have done and I’m saving enough per year that’s equivalent to over a £100k pension pot. It may not suit everyone and you cut your cloth as they say.
Second hand EVs have never ever been so cheap, so anyone who argues otherwise are not living in the real world.
Hope this helps a little
@@TheFlaneur-up1ft thank you 👍👍
Install a battery and charge it overnight on cheap rate 7p and save 70% on your electricity bill for a one off 8k investment
Is downsizing property a valid route to bolstering funds? Say if you have £500k equity in a house and move to a smaller house for £300k, does adding that £200k to a pension or high interest savings account work ok? Is this what most people do anyway?
Me and my Mrs live on €20000 per year. Very comfortable, includes Friday down the bar.
€20k?? Which country are you in?
Me and my Mrs live comfortably on probs less than £ 20 K a year after tax and that includes 2 or 3 holidays abroad
@@boyasaka I don't think I could live comfortably on that. For a start, I pay £2,400 a year on council tax.
@@tancreddehauteville764 Probably boomers so a bit thick and all me me me, so prolly leaving out relevant details (ir. they've paid their houdse off
Only if by comfortable you mean a 2 bed terrace in Bradford, shared ownership of a bike, a Lidl loyalty card and 7 nights self catering in a 2* tower block in Marmaris.
55 looking to retire at 60. Have around 600k currently and no mortgage on my home.
Wife has little pension probably around 50k.
Maximising as much as possible before we both go at 60. Hopefully have around 800k in 5 years and that should be fine. Our outgoings are about 25K a year including Holidays and one car.
I think it is an important message to get across that often people can retire earlier than they think.You don't seem to cover converting pension pots to annuities, but this is a very relevant option.
It was the method I chose to retire at 60 at the beginning of this year, I actually got a significantly enhanced annuity because of lifestyle\health. It covers all of my basic costs and then some.
I have sufficient capital in a mix of ISSA and bonds to fund reasonable discretionary spending (extra holidays , house modifications).
Once I reach State Pension age I will be very comfortable.
My available spend still goes up every year in the meantime.
I would encourage anyone who is around 60 and already owns their property, to have a chat with a pension advisor such as yourself to look at the maths dispassionately, they may get a pleasant surprise as I did.
Excellent Video and excellent clarity and easy to understand- thank you
Thanks Pete for your great content
I need to retire. Why am I still working - what's wrong with me!?
Do it! I just retired in April age 54 (now 55).
@@Mikey_NoCap what do you do with yourself all day!? 😊
@@alexm7310 surprisingly I fill my days really well at the moment. Golf, gardening and then all those chores that I would normally have to cram at the weekend, so at weekend we get to do some family stuff. Also been on 3 holidays with 3 more booked before end of year. Mrs retires next year so some longer travel plans ahead. I worked from age 16 at same PLC so the well was trying dry having done 38 years there. Not missed work at all so far which is a bit of a surprise.
@@alexm7310 humans gatta keep moving if you spent your working life behind a desk meeting and greeting. The real working stiffs need to recover from it 😁
Why do you "need" to retire?
Perhaps you enjoy the social part of the job, or the salary is good, or you have not built up enough for your retirement? Or maybe you really enjoy working or fear retirement!
Unless you have no other choice, keepl working, maybe go down to part-time hours, as retirement can be very long.
How much do people that have retired in early 50s have in their pension pot and ISA to bridge the gap and what income do they draw/what pension do they anticipate?
Go where your money works hardest. I retired at 55 to Asia, live very comfortably on 2-2.5k a month
Where in Asia?
@@mutton_manI’d say Thailand at a guess.
Nobody wants to live there that’s why
@@CaboloNeroSays who?
Thailand is great, Cambodia is even cheaper, but Thailand has best food in the world ❤️ Chiang Mai for the Mae Hon Son Loop 🔁 🏍
I'm retiring on March 1st 25, and I'm lucky enough to have a civil service pension . I've looked at the 50-70% income guide, and even at 70%, I should have that figure of my final salary coming in each month
Thank you, i was supprised a single person retiring at 60 could get £16k for the rest of their lifes with £200k, unless they live to 100, that much more than i thought.
Note that most of that will be from the UK State Pension of around £11,500 from 67 which he stated at the start he had assumed full entitlement to which should be correct if you worked fairly constantly in the UK from age 20-60.. Only £5k of your income is coming from the £200k after 67 as you will have used £16k per annum of it between 60 and 67. I am unclear on the tax impacts factored into his scenarios but tax should be fairly minimal at that low income as the Personal Allowance is £12,570 currently (2024-25 tax year).
@@michaeljohnston6811 that’s why state pension is a life saver. I still have 12 years to be 67 and I hope by then the state pension will be at least £15-16k and still available
@@michaeljohnston6811 yes i did wonder how he arrived at this figure, thanks for the explanation
@hometechUK ..unfortunately that isn't enough by itself over 25 years it would equal to £8000 per year from age 60 without a state pension (£200K divided by 25 years) once reaching age 67 you would get the state pension too to top this up to a more livable income
@@denisedeakins4828that assumes no interest at all…
Strewth Pete, just look at how busy the bots have been! Good advice, and I think many people overestimate their cash needs in retirement. I certainly did and here I am at 70 years not having touched my very large pension fund and simply bolstering my state pension with saved cash and living very comfortably at the same time.
I hate the bots, but it’s so hard to catch them all. As the channel gets bigger it’ll become impossible!
But will the government change the rules and not give you the state pension if you saved your money?
No one knows. I think it's more likely that the government will raise the retirement age again first which is largely uncontroversial. If they were to means-test the state pension then I'd be surprised if it wasn't phased n over many, many years to give people plenty of time to plan ahead. Anything less than that would be political suicide for whichever party implemented such a policy.
The government in the UK labels you economically inactive if you retire early. They dont want you retiring early and will make it difficult as it effect growth in the economy. Already strong rumours they will cap the 25% lump sum to 100k or worse remove it completely.
Those rumours have been stoping before every Budget for at least the last 20 years. Doesn’t mean they won’t do it, mind!
Great video, Would've been good to see numbers from 55/57, the ages of which you can access your pension
Agreed! And also to increase the pot to show more variables! There are some of us young ones out here that have had the advantage of finding your advice early and have some big goals as well :). Thanks for the video
I intend to switch to part time. I can see now that having worked from 16 and never being unemployed for a single day the shock of leaving work 100% could be too much. I have decided to phase into retirement and in doing so I can start earlier and still live well.
@@Nosolutionsonlytradeoff5 TBF if you are young you probably won't be able to access your private pension until 60 (you know moving goalposts). So if you do want to retire earlier best save some in another investment vehicle like an S&S ISA. Remember the LISA is already 60 for retirement purposes.
I’m just a bit confused, do the spending figures include the state pension? For example, you say a single person with £200k at state pension age can spend £20,000 a year. Is this a ~£9000/year draw from investments (so £11k pension + £9k = £20k) or £20k from investments (£31k with pension)?
@@chrismantonuk I was as confused
Looking at the figures this is basically just the 4% rule, once you deduct the state pension
I saw one of your posts a few weeks ago and started digging around in my safe and drawers. I have a defined benefit scheme with additional AVC's. I 'forgot' that I had 2 years stakeholder pension from a stop-gap job I did 10 years ago - GBP 80K. Now 58 and semi-retired doing my own thing and frantically arranging 25% tax free cash sum plus the remainder GBP 60K as a fixed term annuity to take all tax free within my personal allowance. Won't need to touch my defined benefit scheme until 65 - again maximising tax free cash before shitty Labour mess up state pension at 67.
The Tories had set the rise to 67 and proposals to 68. How on earth they think people in physical jobs will be able to do the work at that age I have no idea. It seems to me politicians forget not everyone is office based, lower incomes but in physically hard environments who don’t earn the funds to get a good defined contribution pot. MP’s of course get a very tasty defined benefit scheme based on their MP wages and while they can pay high amounts in the rewards for enhanced pension make it sensible eg A large pension for being an MP for 12 years
Depending on the budget and tax relief of pensions. I’ll look to switch investments back into ISA and spend tax free before retirement and leave my pension which potentially will be means tested in future as low as possible.
If you are planning for retirement Here are some key pointers. Firstly, kick-start your savings early to benefit from compounding. The longer your money has to grow, the better. Secondly, make the most of retirement accounts like 401(k)s and IRAs, especially if your employer offers a matching contribution - it's essentially free money. Thirdly, diversify your investments across different assets to mitigate risk. Think stocks, bonds, and real estate.
Great advice for retirement planning! Starting early and taking advantage of employer-sponsored plans can make a huge difference in the long run. And diversifying investments is crucial for managing risk. Thanks for sharing these valuable tips!
Spot on! Planning for retirement is crucial, and these pointers are gold. Diversifying investments is a key strategy plus, having an investment expert by your side can really help navigate the complexities and optimize your financial plan.
What would you do if you’re 60 and your savings are in Isa’s & not pensions? We have a lump sum but it’s all in savings pots, with tiny pensions but we’re in our early 60’s,
Excellent video. A real can of worms with so many different variables for specific individuals. It is amazing to me how many retired couples are living reasonably comfortable lives and have never worked out how much their income would be reduced if one of them dies. Final salary pensions may be reduced by half if they opted for widows pension. They would lose a state pension. It can really make a huge difference. One partner may also be receiving a state allowance eg DLA and this would stop. The financial situation of the partner left could radically change.
Thanks for the help.
None of this worked. I have an old fire stick that works on both TVs with no problem.
Very frustrating. But again thanks for the help.
I've spent a lot of my adult life on esa unfortunately, so has my husband. We are now both fit for work but only have 20 years to retirement. We are very nervous. How on earth do we make sure we'll be OK. We don't need fancy amounts of money, after all we've got through on esa sums. But we don't want to be stressing about heating, we've already been there thanks.
Despite having multiple DB pensions between us we’ve been trying to build some flexibility into our futures via SIPPs. Tricky to know what’s for the best ie. Early retirement/lump sums etc of deferred DB pensions.
Your vlogs normally make out that you need £1Million using the 4% rule give £40,000 per annum
With a state pension of £980 per month => £11,760 per annum.
I would struggle to spend £51,760 per annum or £1,000 per week with a mortgage free freehold house.
In fact I would struggle to spend £350 a week.
Me too. My wife on the other hand....
@@gavind9487 Sorry to tell you, I am more intelligent than you, I remained single and had no children.
Forget the 4 percent rule
Your million will get 10 percent growth a year
That's 100 K a year and your million quid will remain a million
The fact that there are so many over 60's in a sound financial position, eg, savings or portfolios £250,000.00 and over, means they have been financially astute, they will have very little or no debt, they will have private pensions as well as the state pension, and most important, their spending habits and attitude to being prudent won't change. They will die financially secure, we are in such a position, running out of years and no desire to spend frivolously, and therein lies the conundrum, how to prevent the state or care homes taking most of it?
i am exactly in that position, i’m retired and i get £2,600 a month net. outgoings (i pay council tax insurance etc in one go) are about £650. Leaves me £2k. i dont spend lots as i live alone as a widower. I save well over £1000 a month, adding to my £55k in the bank i don’t know what to do with. I do get disability benefits as im also paraplegic of 42 years but worked hard my entire life. i just realised how boring i am….
Numbers look good to me Pete. Great advice as always. Cheers.
Given the way politics is at the moment and if you are retiring long into the future, the state pension is looking less and less likely to be dependable. My hope is that I don't live too long, and am healthy enough to keep on running my side hustles so I just keep on working. Theoretically I have planned to retire at 70 but I can't imagine not working in the way I do now, self employed with multiple side hustles, until the day I drop dead. Combining that work with whatever the state pension looks like, coupled with my SIPP and S&S ISA, both of which will be small because I started saving way too late because I am on a small income, means I may just scrape through without dying from starvation or a lack of heating in winter. At any rate, my pension predictions as they are now, mean I may have more income than I do now but heavens knows what 20 years into the future will look like.
Great video, thank you it’s help me in my 40’s
One of the key items you don't touch on is how your spending decreases as your age increases... I am fortunate enough to have a 101 year od grandparent.. believe me, he spends nowhere near his state pension! His needs are simply much much less. He have his car up at 90, stopped travelling abroad at 85, stopped eating anything but Big Soup and the like many years ago. Everyone is different and if we are fortunate enough to reach that age I simply don't want the income I had at 60 if that meant I missed out on some freedom years when I still had the health and mobility.
Good advert for Big Soup!
When you retire you have first:
* The go-go years (travelling, eating out, hobbies, activities, etc)
* Then you have the slow-go years (my parents are at this stage now)
* And finally the no-go years (your father)
Thanks for great video
Perhaps you could do a video showing as a couple who live till there 85 and spend 40k a year till there 75 and 30k a year after this including the statement pension.As you wont be able to do much foreign travelling etc after 75, particulary if your a male.The best years of retirement are 60-70 spending say 40k per annum then less year after year.You dont want to be the richest couple in the cemetery.
If your health fails your retirement plan may change overnight
Annuities and pension plans are the answer forthe common man. Been doing it retired for 2 years now living on the Dave Ramsey envelope system until I take full S.S. next april. Life sucks retired now.
Hi Pete, another informative video, a quick question, my 25% tax free lump sum is due to be paid early Nov 24, do you think in the budget they could change the rules on this, which would effect how much I would receive due to tax changes? I think you previously said that it would need an act of parliament, therefore would take a while to implement.
Hi Pete, can you provide figures for those who want to retire early as in 45 or 50 years old. 60 years is not that early and doesn't align to the folks following FIRE
As you can't access your pension until 57, those figures are only relevant to yourself.
Work out your pension target from 57 and then your desired income for the preceding years.
It's incorrect that you can only access your pension at 57. This is a widely misunderstood figure in the UK and even the financial gurus don't understand the facts.
Age of access to your pension depends on your provider. If you request 55 as your age to access pension funds and the provider has protected retirement age then 55 is the age of access. This a protected and regardless of what government changes come into play in 2028 this remains protected.
Pete the figures would be good if you could show at 45, 47, 50, 55. These are the early retirement years most FIRE folk relate too.....but your figures are always for 60 or 65 years and above.
Hope you can address on a future video.
Epic video as always 👌
Pete, interesting thoughts. Unfortunately we don't know what the new government has in store for us. There seems to be a view that they have an eye on our pension savings. I have retired and receive the state pension but have left my DC pension in place, I have concerns that they will abolish the 25% tax free lump sum.
I think it more likely they will try to limit the tax relief on contributions, although the exact form is unknown. I hope there will still be some allowance at full rate relief, but £60k is incredibly generous when comparing with peer nations. This is most likely to raise tax income in the short term. I wouldn't rule out dropping the tax free sum to 20% but people have plans around receiving this and major changes late in life cannot be adjusted for, so would not be sensible.
Always very informative videos Pete, I’d like to see more content on retirement at 55-58 age bracket, while I appreciate it’s life style and wealth based, I’d like to see your views on same, allowing for a mixture of couples having ISA’s / Cash and pensions pots able to draw down for the age bracket as above. I totally appreciate it’s down to individual’s life style … I’m dreading working to 65 + ..
Next video idea - how about what should your retirement fund consist of, what ratio. So pension should not be the only source of retirement income; ISA’s, savings etc……but what ratio of each? 70% pension + 20% S&S isa + 10% cash savings?
That depends on the age you retire surely? ISAs are a bridge to when you can get your pension for the FIRE folk, or they are an alternative if your pension pot is going to hit 1.5m or so (higher tax rate in drawdown). You certainly need an emergency fund that can also act as a cash buffer against market downturns if your pension is still mostly equities.
I’m retired don’t have an ISA yet as made payments into Morgan’s pension fund a priority. Where I had a lump sum so was going to invest into ISA a major house issue meant the money had to be spent rather than add to mortgage ( I was 62) my mortgage scheduled to run to 2034, I retired this year. Pension plans always included covering the mortgage.
@@guyr7351 I’ll be mortgage free 5 years before planned retirement (aged 58)
Thanks for another great video
I would love a video on investing in rental property (HMOs) Vs Sipp investing as not sure what would be better long term.
Anyone under 40 I would suggest you don't factor in state pension at all. Otherwise good advice!
Why?
@@Equitybonds24government pension might not exist
@@Equitybonds24 Because they're going to means test it or even phase it out. So don't rely on it.
@@jimbocho660 how do you know that for sure?
@@Equitybonds24Of course nobody knows for sure. But given the state of the country now, the widening birth gap, and rising inequality, there is a fair chance that pensions will be unaffordable in the future on a universal basis.
So might be worth planning for that now.
Very informative and hello Pete from just up the road in Lanner
Hi Pete. Great content as always but would appreciate if you could specific as to whether this spending includes the tax liability? I.e is this pre or post tax?
The future of the state pension is probably more uncertain than stocks atm.
It's simpler than this. Pay off your mortgage and you can live comfortably on a pension which is 25% of your working income. I retired at 52 and have no problem with a 25% working income pension. I've still 8 years before I get my state pension. Remeber, no NI on pension payments, but you do pay income tax.
Nice video. I’d suggest slowing down a little and explaining more the assumptions behind your projections. Finally, some of us have kids that we need to fund through education and we wish to leave them an inheritance. Please explain how we should incorporate these issues
I’m a little confused by the ‘couple at 60’ figure for £200k being less than the combined state pension income. Is the rough idea you spend down the entire amount in the first 7 years and then live off state pension? but that’d only be £157k for the first 7 years.
Are these required savings amounts before or after tax figures ? Because you may have large capital gains taxes once you withdraw from various funds.
I think it assumes that they are in pensions or ISAs (UK) so capital gains tax doesn't apply
The interest on 750k would be nearly 20k at 2.5%. You could live on that until you get to retirement. I wouldn't count your chickens with the state pension, if it becomes means tested, your on your own.
Hi, confused on what I saw. I know 4% rule is only a rough guide but you are showing 22.5K a year drawing from a pot of 200K for couple at 60 which is over 11%. What am I missing here...?
He's factoring in the state pension
If you have £750k 'invested', and it grows at 4% (a pretty poor return) that equates to an income of £30k. So you could in theory spend £30k out of a £750k pension pot ... FOREVER
Hi. Can anyone help with a couple of questions? Please excuse me if I've missed something obvious. 🤷🏻♂️
The couple retiring at 60 with 200k. Are they both supposed to have a 200k pot? If not, then why can they take out over £1800 per month and not run out but someone single needs to take out approx £1300 at 60 in order to not run out? Is the tax burden on a single person making this big of a difference?
Also, I don't think you mention how much either the couple or the single would have left to add to their pension when they reach 67. This is pretty important to me and probably a lot of others too. Thanks.
Hi, Pete. At 67 and a single person.
With 400000.
They should get 28000.
In a pension. Does that include the state pension as well
11600£
Yes that did in his numbers. So about £17k coming from the £400k fund.
the rule of thumb is 4% from your pot plus state pension, so 28K in your case
You didn't say what asset classes invested in... UK stocks ? UK stocks and bonds or global stocks? global stocks and bonds?
Would it not make more sense to build up a portfolio of dividend paying stocks with an average yield of 4%? If you accumulated 500k with a 4% yield, you'd be able to draw 20k per year and still keep your full ammount of investment. Combine that with the full state pension and you'd have a total pension income of 43k if single and 66k as a couple?
In the accumulation phase it's total return that's important, not dividend yield. In the deccumulation phase, it's income that's important, which could be achieved if you were invested in stocks which paid increasing dividends. The yield % is irrelevant, the amount paid is.
In the accumulation phase you reinvest your dividends. So it’s no different