3 Devastating Pension Mistakes Retirees Make

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Information 3 Devastating Pension Mistakes Retirees Make

Title	:	3 Devastating Pension Mistakes Retirees Make
Lasting	:	14.08
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Some other retirement focused videos for you: brbrHow to sort out your pensions - youtube/psH0JTS6PsIbrMaximising retirement income - youtube/yXl-zVTZxr8brHow I create passive income for my clients - youtube/sRjkmxFvlZQ
Comment from : @JamesShack

but isn't an isa also tax free? or am I missing something here
Comment from : @user-so3lp2fp9o

An eye opener definitely James You only mentioned drawing from defined contribution schemes Do defined benefit schemes incur the same £4000 limit on future payments?
Comment from : @stevej4061

Great video James Might be obvious, but its helped me realise that I'm better off transferring some of my stock and shares ISA into my pension via salary sacrifice to reduce my tax liabilitybrNow just need someone to help me with my poor performing pension the Aviva default fund hasn't impressed me
Comment from : @ubernard3000

If your provider of a defined workplace pension goes bust, are you only protected up to £85K via FSCS?
Comment from : @seant6731

Hi, James - This is very interesting How would this change if the man in your example does not use a mortgage, but instead uses cash that he can not place in his pension fund (this is my situation - I sold a house, moved to a less expensive country, and want to purchase 2 buy to let properties in the UK that will earn a guaranteed 6 after paying the property managers who also cover any repairs My income from those buy to let's will not be under 10k per year, and will be my only UK sourced income - so I won't owe UK taxes on that money earned I feel like this is a wise use of my funds to bring in some passive income during my retirement with an investment that will keep or go up in value over time Does my plan seem more sound since I won't have a mortgage?
Comment from : @cmvox7132

Whete this falls down is where pensions are losing money as a direct result of what the regime in power is doingbrbrWe saw this with the Westninster regimes action in 2022 abd it will ve amazing of this wealth transfer doesn't occur again in 2023 and beyond That's not even taking into account inflation which is running st 25 abd not the single digit fantasy the Westninster regime is spinning brbrThis advice would be gold if we lived under a legal, democratically accountable politucal system That's all gone
Comment from : @Telcontar1962

Great video! May I ask what calculator you are using for getting the percentage success of a portfolio?
Comment from : @dar1e

Wow! Im 60 this year and I'm thinking of taking my pension I don't understand a word of this ! - although you articulate the points very wellI don't have a blind clue what to do ! - Maybe I should make an appointment with a financial advisor !
Comment from : @8563robbie

My understanding is you can take your 25 tax free lump sum, and provided you haven't accessed further amounts, your annual limit remains at £40k Is this correct?
Comment from : @JamesSmith-xr4yo

james im looking to find information about state pensionif you have all these savings/investments do they penalise the amount of state pension you recievegreat video by the way
Comment from : @anniec6420

Problem in America if you pay taxes all your life and if u make over a thousand a year government wont help you If you are illegal they will give u all the help you need that is sad
Comment from : @joncastillo9142

Way it is in england My pension is tied to the state pension age which is currently 68 but will soon be 70 yrs old im sure I will basically have to work till im nearly dead and have a few shit years of poor health before i am actually dead I don't want to be living past 75 anyway, old age is nasty
Comment from : @deano2160

You may have already covered this, in which case, please just point me to that video, but if I have a pension fund but bdo/b bnot/b plan on taking ANY out as a "tax free" lump sum I want the max "regular" income I can when I retire, so I don't want to reduce my total pension fund by 25 by taking that 25 lump sum out of it What are the tax implications (good or bad) vs a (say 4) annual drawdown, or even an annuity? Thank you
Comment from : @stilettoheelslover

Hi James, great video and so easy to follow / understand I'm 59 and now planning my retirement However, I have trust issues and am concerned that people generally are only concerned in 'hooking'into my pot for their own income than giving me the right advice that will see growth that will more than cover the cost of the advice So I'm somewhat in limbo I have a private pension which lost 18K last year alone (thanks Liz)! I'd like to retire at 61 in 2 years time Do I leave the private pension and see what happens - with the risk of me losing more money from the pot, or do I withdraw it and have it in the bank and draw down as I need it? I also have circa 15 years in a Local Government company pension scheme and about 7 years with a another index-linked company pension scheme Where do I go for advice Any assistance / advice will be greatly appreciated
Comment from : @kerryc6198

Mr Scarcity mindset!
Comment from : @Mindsi

Still haven't found an investment expert that talks about the fact I will not be spending the same amount of money when I'm 65 and 85!
Comment from : @bjmullan

How does the 40 tax relief work? Say someone earns £52k, does only £2k pension contribution get 40 tax relief and any additional is 20 tax relief? Or will an unlimited amount be 40 tax relief?
Comment from : @HelenaWhitehead

I was under the impression that landlords were able to write off their mortgages as an expense several years ago, but now can only write off interest Please could you clarify this might? Maybe I have misunderstood what was siad in the video Cheers
Comment from : @KMartha22

Great advice nicely explained James 👏
Comment from : @chrisstanton-jones6808

Should I cash in my pension or sell my buy to let to finance 100k house extension My financial adviser said cash in pension but I'm concerned as he is v vague
Comment from : @rphillips500

Great work James, about to have my first child, would love a video or any advise on junior ISA's or savings accounts?
Comment from : @jackt-j3215

Hi James, if you carry forward you Annual Allowance, can you claim back tax paid from those previous tax years? Or do pension contributions only get deducted off the current tax year?
Comment from : @matthewmunn6965

Hi James good video I’m currently drawing 5 per annum on my pension aged 61 but at 67 I can reduce this to 3 as I will be eligible for the state pension I’m assuming that pensions grow in line with inflation which it’s has done previously, although there’s a gap at the moment - hopefully a blip! Any reason you haven’t taken the SP into account?
Comment from : @davidgilford8959

Hi James, How can I contact you in terms of business cooperation?
Comment from : @RomanYakovchuk-dc4nw

I notice that there are a lot of Watts app scammers on your comments maybe state a warning on your vids👍
Comment from : @stephenplumb4136

Hi James - great content - like many others I've recently started taking some interest in my pension due to redundancy I've got my pension in a Vanguard SIPP now I also have a UK Armed Forces pension but haven't come across any financial channels mentioning Armed Forces pensions I'm presuming I should leave it well alone but it would be good to know why that is Would you be able to comment?
Comment from : @007maxchat

When you mentioned 60 tax relief on the upper tax bracket of £100k to £125k are you taking NI into this as well? not sure how you got to 60? thanks
Comment from : @sl0w_racer

Thank god its inaccessible I would surely have spent it if it was easier to
Comment from : @shocks123

James, some good information here as always Could you share which app you got the backtracking data shown at time stamp 13:10? Many thanks
Comment from : @maxgolaz1

Great video really helpful and relevant, thanks for posting!
Comment from : @PetsinNorfolk

James, can you do a video explaining how the low paid get a 20 uplift Its beyond me to understand In plain, simple terms, please
Comment from : @michaelhall2138

James, i stumbled across your channel a few days ago and have binge watched the lot! (and gone back over a few more than a handful of times!) Absolutely brilliant! i can honestly say i have completely changed my retirement direction of travel! I'm 52, have a tiny pension but earn a 6 figure salary of which until now, i have enjoyed spending with retirement not even considered Handbrake applied! I'm now reorganising my life to invest the maximum allowable and using my allowance for the past couple of years to hit the max! This should be compulsory viewing!
Comment from : @steve-EV

And you wonder why we don't trust the government or financial advisors
Comment from : @gooner1ization

Great content thank you Although I always have to watch you on 075 (drunk setting) playback because you're too fast :P Creative brains are terrible with numbers
Comment from : @cardermedia

God I am so sick of scaremongering videos that scare people into staying a slave Sorry
Comment from : @shelleypeppard4694

I am 68 next month! I have two small (miniscule, in reality) pensions that I have not yet accessed Both funds have shrunk over the last couple of years! Pensions are not the secure place for money that they used to be
Comment from : @steveaga4683

Does the MPAA apply if you draw a defined benefit pension early, or does it only apply to defined contributions pensions?
Comment from : @neilalmond9794

At 66 I put 330000 into Royal London 3 years later after several worrying years it is worth 332000 so no generation of wealth during the 3 years I took nothing from the fund unlike the advisor or Royal London
Comment from : @onetone4561

My strongest advice for retirement is not financial It is to make sure you have interests, stuff you want to learn but haven’t had time to so far, and lots to do that is stimulating Make a bucket list Challenge yourself The worst thing is to retire and be bored - I know a couple of people who’ve done that, and they haven’t survived long
Comment from : @bikerjock2654

" MOST PEOPLE MOVE DOWN A TAX BRACKET " No, " MOST " people do not Why don't you show tax efficient investing for plebs who pay tax at 20? Perhaps there isn't any? All this goes to show that tax efficient saving is only for the better off What a skewed system
Comment from : @michaelhall2138

I think it's a good idea to leave your money in your pension as much as possible My strategy has been to build a large stocks and share Isa portfolio around 400k to produce a tax-free dividend income of around 8 Whilst leaving my sipp alone, I retired recently and 53brAlso, retire without debt that helps 👍
Comment from : @dubsdolby9437

Great video James On thing though - you talk about the 40 or 45 tax relief as if it goes directly into your pension, which is true if you use salary sacrifice, however if you make separate contributions you would only get 20 relief added in your pension from the DC pension provider automatically, while the rest is paid to you in cash from HMRC after claiming on your self assessment How do you actually get the extra 20-25 into your pension without and endless cycle of paying and claiming?
Comment from : @henrikgrunditz2672

With BTL it's also worth factoring in house price growth, and the fact that you benefit from the growth of the entire house value not just the 25 you had to put down as a deposit For every 10k of growth, you're able to take 75k (75) out as cash when you come to remortgage (assuming rental figures meet lender requirements) So, if you get 50k of growth over 2 years, when it comes to remortgaging, you may be able to take 375k as cash and you could use that on further investments Or any way you please
Comment from : @nigeljohnson8030

What are you thoughts on Medical retirement? If say, you're 37 and have a 50 chance in the next 7 years you can't work, would you be paying as much as you can into your pension? And do you still get entitled to the 25 tax relief when you do medically retire? Odd question I know It might be an interesting video to talk about it Thanks for all your advice on your channel, you're very genuine and passionate and I think that resonates with alot of us!
Comment from : @Durace11Bunny

I like this vid Good insight
Comment from : @gerry2345

Thanks for the video Apologies if this has been asked already Point #2, this sounds good but I am concerned about the pre-planning recycling rules Can you explain when this would/would not apply please?
Comment from : @ninesix8

I love these real life scenarios! So much food for thought
Comment from : @barbarar5869

Hi there Love watching your videos I'm currently in full time employment and planning to retire in 3 years time I am currently drawing a final salary pension from a previous job of £425pm net Am I allowed to increase my contributions to my current works pension by £500 for the next 3 years? If so would that be a good idea?
Comment from : @Manc-fh5we

Grows or falls free of capital gains taxI know retired people who have lost 25 this year
Comment from : @systemx4

Hi JamesbrA quick questionbrI'm selling my buy to letbrHopefully will make around 80K profitbrShould I pay that money into my pension or into a savings accountbrI'm 54 soonbrThanks
Comment from : @simoncook1325

I am building a pension and a S&S Isa I like the idea of using my ISA to subsidise my income as I reduce my Woking hours into my later 50’s and early 60’s I wont take any of my pension until I retire fully at 65
Comment from : @stuartb3690

A video on lifetime allowance would be appreciated Especially effect of growth post retirement
Comment from : @jeffreyelms1804

Hi James Thanks for your videos, they are useful and clear A lot of your audience will have a mortgage free property Have you done any videos on the reverse mortgage type products or plan to do one? It's a growing market so I think it will be of interest Of the people I've spoken to, most don't understand them or trust them, but the market is improving as the providers increase
Comment from : @grahamlewis6777

Last thing i wanted to do when i retired was get another job, which is what being a LL entails There's nothing passive about being a landlord far from it I dabbled in it whilst working because relatives needed accom and also let the place out short term to people i knew in between moves and the like Still a lot of hassle it was a relief to sell it
Comment from : @Joe-lb8qn

Great video! I have a question slightly more related to your previous video brDoes using salary sacrifice into a pension affect the personal savings allowance?brIf you are a higher tax payer and sacrifice enough to lower your tax band, would that mean that you would also get the £1000 savings allowance instead of £500? Thanks
Comment from : @cristovaorodrigues1000

Love your videos and know your audience will be mainly DC Pensions but think you could do one with a mix of DB Eg One of the common DB Pension decisions is when to take it, retire early and take the DB reduced or leave it deferred Your DB index linked could be say 15k at 55, 20k at 60 or 25k at 65 I would like to see a video of how much DC pension you should build up outside of the DB Pension to either bridge the gap to taking your deferred DB or simply take it early and have it payment longer So if you wanted an income of say 30k, 35k or 40k how much would you need in the SIPP or AVC to bridge the gap Thanks again for your videos
Comment from : @darrencowie1178

Hi James thanks for the video in it you recommend in one of the examples the guy puts 40k cash out of 50k he has into his pension as cash why not all of it? You can get quick access to your pension after 55 if required?? Also I am 52 is the state pension age moving again from 67 to 68??
Comment from : @henryalex1597

So, I find myself having had to retire early At 55 - due to ill health Therefore I am currently drawing my pension, which was a small final salary one - so that’s okay, but are you telling me in theory I could or even I should put away £4000 a year that I am getting from other sources into a pension and get the extra tax relief And draw it down in my 60s and 70
Comment from : @NekonataVirino

This is another great video James I'm starting to be pretty clued up on this topic and I've learnt two brand new things that just never occurred to me (1) Recycling money from the ISA to the SIPP to get that extra tax relief (2) Never thought of just saving cash into the SIPP and leaving it as cash for short term usage br brI'm thankful content like this is available and free 🙂
Comment from : @bashh568

Hi James, what is the name of the forecasting software you use at around 12min45s in the video? Thanks
Comment from : @jamesdean1371

Oops
Comment from : @fasthracing

Such a shame I never found your channel a few years ago before I'd made mistakes, being one of the older guys in work many ask me questions about pension planning, I push the the more you can put in the better, however I always say make sure you get proper advice its the best money you will ever spend !
Comment from : @martinhammett8121

If someone took their eye off the ball on one of their pensions and didn't spot it had moved 40 from stocks to bonds, and bonds had gone down, quite a lot, should they actively switch the money invested into bonds back into stocks? Or not? I know you can predict the future But I think many might be in this position And it would be a great future topic to talk about what might economic event(s) would reverse the recent fall in bond prices So not saying how likely it is, but the mechanism (if there is one) that would restore bond prices (I guess it is essentially confidence in the UK government/economy?) Or once the bond have fallen to their current levels, can they not increase?
Comment from : @markukblackmore

Your Client should have got himself a holiday home and run serviced accommodation… way more tax efficient than BTL…you didn’t factor in long term capital growth either brAgree that taking out more than 25 to finance was a big mistake
Comment from : @celiahall6168

There is so much info here I can't thank you enough James To an immigrant like me this is immensely helpful Rewatching almost all your videos to make sure I don't miss anything Thank you again
Comment from : @blondscientist

Hey James, I have watched some of your retirement videos and feel like it often focusses on people close to their retirement I’m 28 and want to know what I can do at a younger age to maximize my pension growth I currently have £120k in my SIPP of which 90 are in foreign equities high risk as I have a long time till retirement I’m a high rate tax payer and currently pay 21 towards my pension 7 + 14 company contribution I also have a LISA that I plan on using for retirement in which I put £4000 a year, and put the remaining £16000 in an ISA However I still have spare cash to invest, should I contribute more towards my pension through salary sacrifice? Also how worried should I be about the Pension Cap as my projection is well above this at an age of 65 does this change everything? Thanks
Comment from : @nunuknowstheway6710

It's funny how many people only look at their investment journey up to the point of retiring Most people forget that they make the biggest returns on their investment once they retire due to the compounding effect - our investments don't stop working just because we do
Comment from : @downwind_david

@jamesshack I have been on your consultation waiting list for a month… any idea of how long it is taking to be able to finally grab hold of a consultation with you? Thank you
Comment from : @holisticallyme556

Nice video James, thank you 👍
Comment from : @pousis101

The one thing that keeps coming to my mind about retirement and thatis I should be spending a good proportion of the 'fun money' while I am relatively young, say under 75 My poor old dad is pushing on 80 and he is a shell of his former self Its so sad to see I bloody hope I have had a really good time, I have given most of what is left to my daughter and any kids I may have in the future and when it is my time, I go quickly and not as I started my life (wearing a nappy and dribbling on my self)
Comment from : @jonathanhowson6420

I've just found your channel, this is fantastic advice! Really got me thinking
Comment from : @chrissykes1576

Hi James Good video I’m 55 and now drawing down from sipp what I think is sustainable Coupled with isa dividends and rental income I may even have some spare cash Would you put that back into an isa or a sipp (up to 4k) I was thinking sipp May be better to reduce income tax bill?
Comment from : @nickwebster6846

Too many assumptions about life expectancy and rules
Comment from : @latibes

Is £550k what is really required to retire? I believe I'm not going to have anything like I need to retire and can't afford to retire
Comment from : @fallofdutee

No amount of rational explanation will ever convince the majority that BTL is not actually a magic money miracle tree
Comment from : @ChrisShawUK

I'm 53 have a pension and property (with almost no mortgage) This is a real eye opener The Key is for me is leave my pension untouched as long as possible I contribute around 20K a year to itbrGreat Video James
Comment from : @pataleno

Hi James Once again great video, really love these as it helps get a basic understanding so I don’t look such a tool when I see my FA lol👏🏻
Comment from : @neilsmith8187

You can use your pension to buy commercial property and keep that 10 roi, 7 years doubled pension
Comment from : @SiHodgy

Glad I have a DB pension
Comment from : @maltesetony9030

Hi, do you have any opinions on the Teacher’s Pension Scheme?
Comment from : @samueljanes1580

Hey James! Another great video I've been following for you a little over a year and the most useful information that I found is withdrawing in retirement, precisely the guardrails of either not increasing with inflation said year or 10 decrease from last year's value if the market has dropped brI had a question, what other investment avenues/wrappers are available for someone who is putting maximum money into a pension account and ISA and is 20+ years away from retirement? My current calculations say I would exceed LTA allowance even with modest 6 return
Comment from : @TomBarker-xd7sf