Pensions Explained UK | Pension Basics for everyone

Well done on expluaing UK pensions in just over 10 minutes.

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio

Very helpful

Someone help me.. ive been doing research for some time now but i cant help but think that for someone like me with a 30 year horizon before i want to retire.. I should opt out of any employer pension schemes and put 100% of my spare cash in a good index fund with the pot being managed and protected more towards my retirement date. Someone talk sense into me.

Thank you so much - so is a DC pension risky at all? As it’s being invested; can you lose it? Or is protected somehow?

can you do a room tour please bro

I'm 60 next year and currently saving for my retirement.
Would i be better off putting the money i save in a savings account or into my work place pension.

Another great video. A question please, Is it legal for an ex employer to change my pension from a stakeholder pension to a SIPP?

Pensions are used as leverage in the magic money system which makes big money for the pension corporations whilst giving the pension investor minimal gains. In a very poor market / recession / depression you can lose everything.

Question : I work for local government, is it worth me paying more with spare cash even though I'm 53?

You didn't mention state pension, I know it's not much, but surely worth mentioning. Still a very useful video. I wish I knew more... Off to watch more videos 😊👍🏼thanks

My main concern about pensions is what if it ends up getting looted. That's basically what the likes of Maxwell and Philip Green did, isnt it? I think we're kidding ourselves if we think it's not going to happen again.

Really useful

Why are people so agaisnt pensions these days?

Thank you so much for this clear video, I have one question pls - in case of a personal pension, why is employer obligated to contribute equal amount?

In my case my employer already provides pension as part of compensation benefit but I am thinking of opening a separate personal pension account

With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $275k bond/stock portfolio

What percent of a salary would you recommend people put into their pensions?

It's not free money if you have to pay it back when you actually want to use it 😂

You could pay into a big name insurer who informs you sorry half your money is gone and you need to increase payments as there will be shortfall, ten years later ditto and again in another ten years so you either end up with 25% of what you had or you pay in four times more than you expected to .

Hi can u help I asked for 2500£ to come off my wages before tax salary sacrifice.but my employer out it in stakeholder after tax
Which I got not tax relief.i contacted HMRC and they said I can claim it back but I had to be over £44000 but because I do salary sacrifice my top wage if 50000£ will be under that so they said I can't get it so I have lost over £599 because if this error any advice

What is the difference between actual contributiona d and expected contribution in autoenrollment process of employer. please could you explain in detail

When the future comes everything change’s if you get anything promised you will be very lucky I’ve been there believe me

It’s always baffled me why they don’t have these teachings at secondary school, almost like the curriculum isn’t interested in educating young people on Pensions and their future, but ….always do your homework and don’t forget your P.E kit. What a load of shit the schooling system is.

Great video. I'm in my 30s but I am now planning for retirement (although I should've started in my 20s). New subscriber here!

Don't trust pension providers including the government

Its theft

Thank you, great video. Kinda simple ;-)

Can you also combine annuity with drawdown?

Thanks for the nice explanation. From what I understood, it seem better to invest in properties and rent it than going into the DC. Rent income is pretty much like DB.

Can you have a private and workplace pension at the same time?

Whats difference in privtae personal pensions and long term investing in stocks and shares isa? Is 1 less taxation?
Latter being can access at any age?
I'm 43 so have another 25 years before state retirement.
My workplace scheme seems a bit rubbish.

Just subscribed this is great,
I need advice and i need to learn how to make money work.
Thank you for your hard work, can i join the academy.
What do i need to do

Would you advise taking out 12570 a year from your pension starting from age 55?

All my pension has done is bomb out in the last three years. My pension company pensionbee hasn't made me one single penny since I joined them with all there B/S promises. All pension companies do is basically rob you behind your back.

One of the very best explanations of pension basics I have ever come across. This should be compulsory viewing for everyone.

PLEASE HELP!. I have a number of different pension schemes as a result of working in numerous different places in my life. But each scheme appears to have the same issue, that's making me very sceptical about investing in pensions at all. Whenever I get an annual statement from any of these suppliers it tells me what I've invested, and the current value of the pension pot. There is also a section which aims to give an indication of what this might be worth in terms of an annual pay out when I retire assuming x% interest growth between now and retirement. The issue is that if I retire at 67, and given the annual pay out quoted, I would have to live until over 100 to even BREAK EVEN on the CURRENT value of my pot, never mind what it should be by the time I retire. I believe the average life expectancy in the UK is late 70s so on average a person has roughly 10yrs to recoup the value of their pot. Based on my calcs I don't even recoup what I've personally invested so far by the time I reach average life expectancy, and I'm 20yrs shy of retirement age. That's not even taking into account the success of the investment. So what gives? Am I looking at this in the wrong way, because as I see it there appears to be zero point in putting your money in a pension. I've also phoned a few of these suppliers to ask this question and unfortunately the people on the end of the phone cant explain it. It seems plain as day to me so I can only assume I'm misunderstanding. Just as an example, today I received an annual statement from one of these suppliers. In this particular fund the value currently sits at 52k, I'm 46 yrs old and I don't contribute to this scheme any longer. Adjusting for inflation they are telling me that the purchasing power of my annual amount in retirement is at best guess £1800 a year. Well that's 28 years before I even break even. I'll be 96. Lets say I die at 80, which isn't a bad innings, I'll get 13 years of 1800 = 23.4k, that's not even half the value of my current fund and I haven't even started talking about tax yet. Could anyone please explain? As I say, this isn't an isolated thing, my current workplace pension illustrations paint a similar picture.

I think this also applies to some other countries too~~! thank u~~!!

This is my fifth year after retirement. I’e been following the 4% rule thing, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.

I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me, retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income-generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45

10mins 21secs, thats the bit that concerns me! when i mentioned this to my pension company they flatly refused to offer me anything!! stating that it was too early!!

Hi id like to know where i stand regarding my pension? i worked for a company from 1976-1991, Jaguar cars, when i left, the pension was transferred to The Coop, then over time, moved again twice. The next time was to The Royal Liver, and now at present, its now in The Royal London. Since then ive moved abroad. I am now 64. I recently contacted The Royal London after several weeks of calling them, to see how my pension is doing, and to see if i could get a lump sum from it! They bluntly said no!! saying its too early!! Are they within their rights to refuse me?? TIA

i am 64 atm, i have a private pension with The Royal London. It was originally with Jaguar cars, then it was transferred to The Coop, then it was transferred to the Royal Liver, and now its with The Royal London. I am now living abroad, and after lots of phone calls, i finally spoke to someone about my pension. I was under the impression that i was entitled to a lump sum from it! But when i did speak to somebody at the royal london, they said otherwise!!! So legally where do i stand?

Awesome content.

I have finally gained access to my pension account and can now review its details. I wanted to seek your advice regarding whether I should pay for all the shortfalls or just a few specific years that I have missed. I have attempted to contact the future pension center for guidance, but unfortunately, it has been difficult to reach them and obtain any advice. Therefore, I am reaching out to you in search of expert advice.
So far I've got 4 years of full contributions, 11 years I did not contribute enough, so I've got 28 years to contribute before 5 April 2051
Should I make up the payment shortfalls in full or are there other considerations to take into account?

I greatly appreciate any guidance you can provide on this matter. Thank you for your assistance.

I have a question
If i get 22 years record on my state pension and for example its like 6k per year by 2039 and the working allowance its 16k an year this means that i can take from my pot 10k pee year free tax or i need pay tax as well if both combined don't go over 16k?

Great videos thanks. I was hoping to reduce CT from my limited company by paying in employer contributions to my SIPP. I’m now told that as I drew £6k from my SIPP back in 2016 I am only now allowed to pay in £10k per year which sounds crazy and somewhat unfair. 😢

Can employers pay directly into a SIPP?

Can you make another video on tax relief and pensions, with number examples thanks

Thanks for a great explanation of this. I still struggle to understand though what happens to all the money, say in the 2015 NHS scheme which is DB. The amount contributed by employee and employer always seems to be so much more than the 1/54th promised for each contribution year? Anyone explain the maths here?

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways

Question: Using the same example of a £200K pot; considering a drawdown period of 20 years - does it mean for someone who has not taken the tax free lump sum can actually take £12570 + £2500 per year before starting to pay tax?

The music in between was so loud in between it nearly blasted my ears off 😮