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In this video, I go over the 3 key pension hacks which can stop you running out of money!
📺3 BIG RETIREMENT MISTAKES
📺SAVE YOUR RETIREMENT FROM ANY CRISIS
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*6.07 I say ‘asset/liability matching. That’s probably inaccurate to use that phrase in retirement planning as its more asset duration/expenditure matching. I know, I know, no-one cares. 🤷♂️
OTHER CONTENT 📺
📺 3 PENSION TAX MISTAKES
📺 STATE PENSION EXPLAINED
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LEARN MORE ABOUT: Retirement Pension Plans
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Retirement is a phase of life that we all look forward to. It is a time when we can finally relax, travel, and enjoy the fruits of our labor. However, the thought of not having enough savings to support us during these years can be daunting. That’s why it is important to plan and make the most of our pension funds. In this article, we will discuss the only three pension hacks you need to retire without worry.
1. Start Early and Contribute Regularly:
The golden rule when it comes to retirement planning is to start as early as possible. The sooner you begin saving, the more time your money has to grow. Take advantage of compound interest, which allows your savings to earn interest on top of the interest already earned. This can significantly boost your pension fund over time. Another crucial aspect is contributing regularly to your pension fund. Set up automatic monthly contributions, so you don’t have to worry about missing any payments. Remember, consistency is key!
2. Take Advantage of Employer Matching:
Many employers offer a pension plan and may even match your contributions up to a certain percentage. This is essentially free money that can add up over the years. If your employer provides this benefit, make sure you contribute enough to receive their full match. By doing so, you are essentially doubling your savings without any extra effort. It’s an opportunity that should not be missed.
3. Maximize Tax Benefits:
When it comes to retirement savings, taking advantage of tax benefits can go a long way. In many countries, contributions made towards pension funds are tax-deductible. This means that the money you contribute to your pension fund can be deducted from your taxable income, reducing your overall tax liability. Maximize this benefit by contributing the maximum allowable amount to your pension fund each year. Consult with a financial advisor or tax professional to understand the specific tax rules in your country.
Moreover, consider saving in a tax-advantaged retirement account, such as a Roth IRA or a 401(k). These accounts allow your investments to grow tax-free, and when you withdraw the money during retirement, you won’t owe any additional taxes.
In conclusion, these three pension hacks can significantly improve the chances of retiring without worry. Starting early, contributing regularly, taking advantage of employer matching, and maximizing tax benefits are crucial steps towards building a strong pension fund. Remember, retirement planning is a long-term commitment, so be consistent, stay informed, and adapt your strategy as necessary. With the right approach, you can look forward to a worry-free retirement!
I start to watch, and am waiting for the bit, where as a guy of 60, I have to go back in time to implement it…I will note the running time location here…oh hold on, none of this applies to me, it requires that you already have quite a bit of money. As a tory once somewhat obviously remarked to me ‘You needed to choose different parents’. A really good guide to your likely financial wealth, is how wealthy your parents and grandparents were. Actually as a guy who paid off several mortgages, I didn’t need a lot of inherited wealth and indeed did not get much, but it needn’t have mattered…what I needed would you believe, was that at a single moment, someone offered to back me up, IN CASE a legal situation didn’t go my way, because I wouldn’t be able to pay both mortgages…in the end, I won the case, but had to sell one of my properties because I had a child coming, and had no way to ensure I could meet my mortgage commitments. Thus, I only needed a PLEDGE from my surviving parent, no actual money would have been needed in the end…the problem was I couldn’t trust them as far as I could throw them, and their 2nd wife would probably have demanded their names go on the deeds…and there your nightmare begins.
At a judicious moment, have you a ‘sponsor’ or backer, who will block the damage that could be levied on your property or investment, from doing it’s worst? If you do, you are very lucky, well done, you probably chose the right parents. A good vid, but as always there is no substitute for parents or a guardian who acts as ‘ice-breaker’ and can tell you the rules of the road, and shield you when times are hard. I had a faithless, absent cheater for a parent, and unfortunately the lovely fair-minded one died, and that was that. Good luck to you, I hope yo have chosen your parents wisely.
Thanks, good video. Quick question on the Buffer Assets: I understand that they are to prevent you being forced to realise your assets at the bottom of a Bear market, so don't they have to last significantly longer than the average Bear Market, so that if your regular income stops at the very beginning of a Bear market (unfortunate timing!), you can delay realising your retirement assets until well into the next Bull Market rather than near the beginning, or bottom, of it?
Fantastic video, George. Practical, realistic and actionable.
Hi George. Got another unrelated question about pensions. My tight employer makes pension payments almost 1 month after my salary is paid. So for the last period of tax year 2022/23 the pension payment doesn't hit my pension account until period 1 of tax year 2023/24. Does that pension payment count towards 2022/23 or 2023/24? Cheers in advance.
Have you heard of anyone having a problem getting their pension fund from NEST?
How about if aged 55 want to retire and only buy an annuity to cover you for 12 years until the state pension kicks in? E.g. how much would an annuity that pays a 55 year old £10k per annum for 12 years cost? Leave rest of the pension to grow and use drawdown as and when – basically the annuity and state pension being the buffer…
If I was to go into a care-home, how do I make sure I don’t lose my house,
Maybe consider a money market ETF to protect your assets in this critical period? Only 1 GBP denominated ETF for UK investors I can see. Might work well for those on HL platform where holding a money market fund is expensive
Would love you to do one on a Dividend portfolio were your not using drawdown and don’t need to sell your assets. This is what I’m working on but not sure I’m doing it right. Note this is in an ISA
Must admit I have hated the prospect of an annuity but some of the term annuities on offer would seem to provide a solid income with a final cash benefit. As part of a mix, then, just possibly a good buy?
Fantastic video 🙂
Premium bonds for the buffer? Could get lucky with a decent amount in.
For me, adaptive spending with adaptive working should work well.
you can over think this sort of thing this is my view i am 65 and i start takeing my pension this year Hopefully i will have another 10 years of good health and when i get to 75 from what i can see is health issues start just like an old car things start going wrong the ten years from 65 to 75 have been the gold time every old person i know who passes 75 start to slow down and state pensions and private pensions start to mount in the bank because your not spending i have seen this happen time and time again its all to do with balance take 5% and forget the rest and stay invested
Your content is superb
Another great video mate – this will help a lot of people as always