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Money Confidence – Pensions
On this episode of the Money Confidence podcast, Sarah and Georgia talk about pensions.
KEY TAKEAWAYS
A pension is one of the most tax-efficient ways to save for your retirement, but it can't usually be accessed before age 55. This will increase to age 57 in 2028.
When you contribute to a pension, the government will give you tax relief on those contributions. If you make a contribution into your pension from your net pay (after tax and National Insurance has been deducted), basic rate tax relief (20%) will be automatically added to your pension at source. Any growth within the pension is tax-free.
There are generally two types of pension: A Defined Benefit Pension where you get a guaranteed income for life once you reach the Scheme’s retirement date and a Defined Contribution or Money Purchase Pension, which is invested in the market and can go up or down in value. With a typical Defined Contribution plan, you can access the funds from the standard minimum pension age (currently 55) and there are various ways you can access these funds. Typically, 25% of the pot value is tax-free and the remaining 75% is taxed at your marginal rate of income tax.
BEST MOMENTS
‘Pension is quite a scary word and a lot of people just file away their paperwork and forget about it until they come closer to retirement. As people tend to have numerous jobs throughout their lifetime and have a pension with each employer, they can end up with many different pensions with different providers. It's easy to lose track of your different pensions so it's important to keep a record of them all and make sure you keep your contact details up-to-date.’
‘It’s important to start a pension as early as you can, because the longer you invest the more you will build up your pension funds for retirement.’
‘You should check the details of your pension with your pension provider, to make sure you are aware of the ongoing charges on the plan, where it is invested and the features of the pension, for example, whether or not it offers flexi-access drawdown. Pensions can be complex so you should seek professional advice from a financial adviser’
ABOUT THE HOSTS
Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!
The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.
CONTACT METHOD
IG: https://www.instagram.com/sarah_talks_money/
LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/
Hosted on Acast. See acast.com/privacy for more information.
View all episodes
By Sarah Blyth and Georgia LeggOn this episode of the Money Confidence podcast, Sarah and Georgia talk about pensions.
KEY TAKEAWAYS
A pension is one of the most tax-efficient ways to save for your retirement, but it can't usually be accessed before age 55. This will increase to age 57 in 2028.
When you contribute to a pension, the government will give you tax relief on those contributions. If you make a contribution into your pension from your net pay (after tax and National Insurance has been deducted), basic rate tax relief (20%) will be automatically added to your pension at source. Any growth within the pension is tax-free.
There are generally two types of pension: A Defined Benefit Pension where you get a guaranteed income for life once you reach the Scheme’s retirement date and a Defined Contribution or Money Purchase Pension, which is invested in the market and can go up or down in value. With a typical Defined Contribution plan, you can access the funds from the standard minimum pension age (currently 55) and there are various ways you can access these funds. Typically, 25% of the pot value is tax-free and the remaining 75% is taxed at your marginal rate of income tax.
BEST MOMENTS
‘Pension is quite a scary word and a lot of people just file away their paperwork and forget about it until they come closer to retirement. As people tend to have numerous jobs throughout their lifetime and have a pension with each employer, they can end up with many different pensions with different providers. It's easy to lose track of your different pensions so it's important to keep a record of them all and make sure you keep your contact details up-to-date.’
‘It’s important to start a pension as early as you can, because the longer you invest the more you will build up your pension funds for retirement.’
‘You should check the details of your pension with your pension provider, to make sure you are aware of the ongoing charges on the plan, where it is invested and the features of the pension, for example, whether or not it offers flexi-access drawdown. Pensions can be complex so you should seek professional advice from a financial adviser’
ABOUT THE HOSTS
Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!
The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.
CONTACT METHOD
IG: https://www.instagram.com/sarah_talks_money/
LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/
Hosted on Acast. See acast.com/privacy for more information.