Welcome to another Q&A show - this week we cover tax free cash from DB pensions, annuities vs drawdown and whether you should pay down a buy to let mortgage or invest. Plus quite a bit more!

Shownotes: https://meaningfulmoney.tv/QA9 

Questions

00:41 Question 1 Hi Pete and Roger. Thanks for your wisdom over the years. My question came about from an answer you gave on a previous Q&A about AVCs and tax free cash. You mentioned it was possible (sometimes) to use AVCs as tax free cash to preserve the maximum DB benefit. I have some follow up questions that relate to - A small DB pension that doesn’t appear to offer tax free cash. - A small DB pension that does offer tax free cash, but I have left that job so can no longer contribute to that pension (AVCs or otherwise) I don’t have AVCs in these pensions, but I do have a DC pot separately. Would I be able to use take tax free money from my DC pension if I took it at the same time I took the DB pension sort of in lieu of the tax free component of my overall pension?

I suspect this is clutching at straws, but thought it worth checking. Many thanks. Loyal listener, Mark

03:11 Question 2

Hi Pete & Roger! I hail from Northern Ireland and enjoy your Podcast to keep my mind active and up to date in all things financial - Top job. I have been looking at having a go at Voyant after various spreadsheets of my own as a way to play with the numbers so was considering a meaningful academy course - question is which course is right for me? I am in mid 40's and financially secure so in theory wealth all ready built? Mortgage paid, multiple residential and commercial properties owned debt free and an sizeable equity portfolio and so should I be looking at the retirement or wealth course? John

05:30 Question 3 Great podcast and been an avid listener for the last year. I have a question which, I think I know the answer but I'd be curious on your perspective.

Background: - I divorced in 2021 and as part of that agreed to transfer the house over to my ex-wife and a charge put on the deeds so that when it's sold I'm owed a percentage of the sale. - The house going on the market will be (or should be) triggered when my youngest son reaches 18 or leaves full-time education. This will be either 2028 or 2031. - Since the divorce I've been able to purchase another house and this is my permanent residence.

I'm a higher rate tax payer, and when that ex-marital home is sold I'd expect to get somewhere around £200k. However I won't actually need that to hit my retirement goals and would prefer to pass that onto my 3 kids.

Could you please discuss options on how I might do that in the most tax efficient way. Best Regards, Dave

10:38 Question 4 Hello Pete & Rog,

I stumbled across the show a month ago and have been "binge listening" since then, its amazing, where have you been all my life, keep it up guys. I am actively preaching the Gospel according to Pete to all and sundry.

I am a 61 years old Veteran in receipt of a Military (DB) pension to the amount of £18k per annum, which is index linked to CPI. Additional to this, I have a moderate private pension to the amount of £150k which I contribute £500 per month, it has an approx growth of circa 15%

I also have a small Stocks and Shares ISA, valued at £15k which I contribute a minimum of £250 per month, this is also growing at approx 14% pa. I am currently working and contributing the minimum amount into a work placed pension with NEST.

I am planning to look at retirement at either my next birthday in October 25 (62yrs old) or continue until 65 as I am enjoying work. I have deliberately avoiding factoring in my wife as she is a senior manager within the public sector and has a good DB scheme Final/Average earnings Pension.

My question is pension related and I have a dilemma as to decide between either an Annuity to boost my Mil Pension or veer towards a form of drawdown option at a higher rate until SPA and then look to reduce down withdrawals in order to be tax efficient and make it last longer?

I am debt free with mortgage paid off and only real major expense is a holiday account which we both contribute to as we like luxury holidays, I hear Rog saying "spend it now". No plans to put anything towards estate planning as both sons are very successful and they will probably inherit our home in time.

Just looking for some guidance on what feels may be the right decision under the circumstances, keep up the great work guys, love the show. Michael

16:34 Question 5 Dear Pete & Rog,

I have a pensions Annual Allowance query, the answer to which might be of interest to the MeMo community.

A relative uses salary sacrifice for her occupational DC pension scheme, and the employer contributes £40k, annually, into her plan.

Normally, she doesn’t make any personal contributions into any pension schemes, but after receiving a windfall, she is minded to do so via a newly opened SIPP — she has rejected the option of increasing her salary sacrifice amount, and wishes to contribute part of her windfall separately from her occupational DC scheme.

Her (post-sacrifice) relevant UK earnings are £35k, so she is planning to contribute £20k gross into the SIPP (£16k net); in order to consume the full Annual Allowance limit of £60k [£40k (employer) + £20k (personal)].

The SIPP provider has advised her that she can actually contribute the whole £35k (gross) by using ‘carry forward’; as she hasn’t made any personal contributions in previous years [she’s only ever used salary sacrifice].

Is the SIPP provider correct?

Kind Regards,

James

18:15 Question 6 Husband and I are in our late 50's. We have a £30k interest only mortgage on our home, with £350k of interest only mortgages on 3 buy to let's.

Husband has £350k in personal pension and I have a civil service pension (I have taken my final salary element of civil service pension).

My B2L' s give £2300 income per month against associated costs of £1100 per month.

My question is around reducing our borrowing versus investing in stocks and shares ISA. I have been comfortable in having my buy to let's on interest only mortgages but I am now questioning my approach. We are intending holding at least 2 of the 3 properties throughout our retirement. I am thinking of using the next 5 years to position ourselves for our retirement. I could start to invest £500 into a stocks and shares ISA or I could pay down the mortgages. I am torn between approaches and would value your input on this.

I have only just discovered your podcast and it is now a weekly listen for me.

I hope I have explained this fully and look forward to hearing your views. Helen.

It’s another Q&A, and this week’ we’re talking Lifetime ISA withdrawals, whether you need life insurance and the NHS pensions scheme, among other things!

Shownotes: https://meaningfulmoney.tv/QA8 

01:08  Question 1

I just wanted to start by thanking you so much for your podcast. I'm probably one of your younger listeners, having started listening to you when I was 26. I feel very fortunate to have discovered your podcast at such a young age, as it means I will hopefully have years, if not decades, to put your excellent advice into practice.

I have a quick question that I was hoping you could help me with. I currently have a LISA that I was planning to use as a deposit for a house. However, I am now planning to move to Australia permanently with my Aussie fiancée. I have separate savings that I can use for a deposit now, but since ISAs are not recognised in Australia while UK SIPPs are, would it be wise to take the 25% hit by withdrawing the money from my LISA and transferring it into a SIPP to benefit from higher rate tax relief and continued tax advantages?

I understand you cannot offer specific advice, but I would be interested to hear if there are any general pitfalls or advantages in this plan that I should be aware of.

Many thanks! Simon

04:40  Question 2

Will try to keep this brief but is challenging.

Do we need life insurance?

If I die whilst employed my wife gets a lump sum which will cover our only debt the mortgage through my DB pension scheme.

If I retire aged 60-65 my lump sum will cover any mortgage remaining if still have one.

My wife has no such pension / cover if she were to die (currently between jobs).

I have emergency fund / Overpay into pension for tax relief & child benefit purposes / and recently opened stocks and shares ISA for myself and  2 children. Age 39 trying to build for future but started late :)

Many thanks Lee

09:55  Question 3

Many thanks for all the ongoing information and discussion, I’ve been listening for years, but still learning and trying to put into practice all positive behaviours (just like with diet and exercise, knowing and doing are rather different!).

A question and a thought.

Question; (apologies, after I typed it, it turned out to be very long and NHS specific so feel free to ignore, but I think the point about revising tax returns after submission when new info comes is more generally applicable).

I’m in the NHS pension scheme and am awaiting my RPSS after McCloud judgement. They were due by October. It’s November and I haven’t had mine (many others say the same). I believe they are prioritising those with who have definite AA charges and I doubt my NHS figures trigger that as I was part time for much of the relevant period.

However, I also contributed to a private pension every year, the amounts varied, but were usually calculated quite closely using the AAPSS that I had at the time to maximise residual allowances - so basically I think I may now have Annual Allowance issues that I didn’t at the time, but am not being prioritised by the NHS pension scheme for a new statement because they don’t know about my extra contributions.

Added to this I have already submitted my 23-24 tax return before I realised there might be a problem. Others have added a comment to theirs essentially saying ‘watch this space for more information’ and apparently have 12 months to amend them once their RPSS arrives.

So, the question is, can I still change my tax return (submitted on behalf by my accountant if that’s relevant) if new information becomes available after Jan 31st (or even in the new tax year)?

Do you have any advice for those waiting documents from the NHS pension scheme or insider knowledge re. Timescales for remaining documents? Anja

13:28  Question 4

Thank you so much for an amazing podcast!

My question…

After 7 years of a long distance relationship, I’m  talking to my partner about moving in together.

Apart from checking your significant other listens to the podcast (mine does - phew) what are the most important areas to cover when thinking about joint finances, particularly if you haven’t talked much about money before?

Thank you!

Elizabeth

19:07  Question 5

Hi Pete and Roger!

Thank you so much for the show. I’ve been listening for the past 6 years and have gone from saving for a house to learning about pensions and now actively pursuing building my pension and ISA pots so that I can be ‘work optional’ as soon as possible (hoping to be there in 5 years and would not have known where to even start if it wasn’t for your podcast).

My question is how does the actual mechanics of drawing down from a pension work? Is there an equivalent of PAYE for pension draw downs? How is income tax calculated and collected? Would a tax return need to be done?

Thanks so much!!

Gavin

24:07  Question 6

I am approaching the Lifetime Allowance (used 91.43%) but my Armed Forces Pension tax-free amount I received was less than the 25% for the amount of LTA used ( 58.96%). I have a Transitional Tax Free Allowance Certificate to ensure I am still able to receive the maximum tax-free amount (£268,275).  I have currently received £168,932.69 as a tax-free amount.  In order to realise the maximum tax-free amount I will need to exceed the LTA by £259,143.76. Finally, I am still able to max out my contributions each year at £60,000 to help reduce my tax bill.

If I continue to max out my contributions each year and exceed the LTA to realise the tax-free amount, what are the implications of this or should I consider paying the money into other investment accounts?

Regards, Martin

Welcome to another Q&A show. This week we cover moving abroad, inheritance tax and paying into a pension while drawing from another, and lots more besides!

Shownotes: https://meaningfulmoney.tv/QA7  

01:16  Question 1

I’ve been a long time listener for my entire working career and your podcast has been invaluable to getting me to the great position I’m in now.

I have recently been offered a very exciting job opportunity abroad (specifically Luxembourg) and I’m thinking about financial issues I might want to cover. I am 29 and have a mid-five figure sum in each of my ISA, LISA, and DC pension in the UK. I hope to save and invest heavily abroad with a FIRE sort of philosophy. I wonder if there are any big things to think about in preparation for a move, or things to do while in the EU that will make a move back easier.

I realise this is probably a complex question, and maybe too niche for a podcast episode. I’ve considered getting a one-off consultation with a financial advisor before my move, do you think this would be worthwhile, and if so what sort of service or green flags should I be looking for? (Assuming Jackson’s is not a specialist in this area!)

Thank you again! Stuart

06:24  Question 2

Hi Pete, Hi Roger,

May I ask a question about pensions now being subject to IHT. My father in law’s strategy for passing on his wealth was to pass on an unused pension, previously protected from IHT, and he had also invested in AIM shares, again also previously exempt from IHT but now subject to 20% tax.

He is nearly 82. What options might you suggest for him to consider on either of those points, but in particular the pension point. Draw the pension and gift it?

Thank you very much. Love the pod and religious listener! Jo

13:00  Question 3

Hi Pete and Roger,

A great many thanks for all that you do towards simplifying personal finance principles. It is with thanks to your guidance that I am living within my means and on a budget with clear financial objectives.

My question today is on behalf of a family member, let’s call her Glynda.

Glynda is 58 years old and intends to continue working until she can claim her full state pension. She currently has two private pension pots, one is a SIPP on the Vanguard platform and one is her workplace scheme with a smaller provider I’ve never heard of called Creative Trust.

A few years ago, she chose to withdraw her 25% tax free cash allowance from her SIPP with a view to investing this in rental property. For one reason or another this didn’t actually happen so she is now saving this aside as her 18 month cash buffer. To withdraw the 25% tax free cash, she had to “crystallise” the entire SIPP pot.

The remainder is still invested in 100% equities - the growth engine as you say, but it is now in a flexi access drawdown account, not a pre-retirement pot.

Meanwhile, the workplace scheme is growing nicely with contributions of around £3500/yr, which is not insignificant on her modest salary. This pension is not yet “crystallised” and is also aggressively invested through the limited fund selection on that platform.

You have spoken at length about pensions but my question has not yet come up, though I appreciate it may be niche.

If the SIPP has been crystallised and the Workplace scheme has not, can they still be combined?

Does Glynda need to take her tax free cash from her workplace scheme BEFORE transferring/combining this scheme into her SIPP for ease of management?

If she opts NOT to take the tax free cash before transferring, does she lose that option?

What is the point of “crystallisation”? Why is it even a thing in a world of flexi access drawdown, it seems irrelevant to me.

Do platforms charge different levels of fees post-crystallisation? If so, can Glynda transfer her crystallised SIPP to a new provider if savings can be made on fees.

Many Thanks, Sam

19:48  Question 4

Hi Pete and Roger,

I have been an avid listener to the podcast for a long time now, probably 5 years, what a journey! Thank you for all the content you put out.

Pete; I think I read your book first which put me on to the podcast, or perhaps it was the other way around, I can’t remember. I’m pleased to say that when I read your book, I then went through it with a fine toothcomb and ticked off everything I needed to do! Needless to say I’ve been in a good situation for a while now, thanks to you, your book and this podcast. I still use a Meaningful Money Budget Spreadsheet to plan my monthly finances! I did leave a review a good while ago on the app store letting you know how Meaningful Money has helped me! I have attached a picture of my copy of your book, hope you don’t mind all the post it notes!

My question is surrounding Emergency Funds and what criteria we should apply as to whether something is an “emergency?” Classic things such as a broken down car, a leak in the house or the boiler breaking down are all perfect scenarios for an emergency fund. But what about other more vague scenarios?

This question has come about because of my current situation. I unfortunately have a toxic boss and work environment which is affecting my mental health. It’s clear I need to leave the job, as my continued attempts to change the environment and my mindset have been unsuccessful. So, I am about to hand in my resignation, in the next few weeks and just go ahead and use my emergency fund, as this detriment to my mental health cannot continue. However, there’s a strong feeling inside that this isn’t really what an emergency fund is for. Particularly too, as I don’t have a strong exit plan. I have no other job lined up, I just need to get out of there.

So what do you think? Should the fund have strict rules as to what is, and is not an emergency? I suspect your answer will be that the holder of the emergency fund decides what is and is not an emergency. That being said if there isn’t strict rules surrounding it, then it would be quite easy for someone to decide a night out on the ale is an emergency due to a stressful week! Or can the rules be more “fluid” and a night down the pub is acceptable? Sorry about the pun! I’d be interested to know your thoughts.

Thanks again and I look forward to hearing your response!

Many Thanks, Phil

24:36  Question 5

Hi Pete & Roger

Thanks for all your podcast episodes - I've been listening for years and you've saved me a lot of money through not needing to pay an advisor (thanks to your free info) and not making expensive mistakes. I'm not sure if I'm your core demographic (33yo woman in London) but find all your content useful for me, my friends, brother and parents.

My question: I co-own a flat and live in it. My friend owns the other half but doesn't live with me. We have a joint residential mortgage and also have to pay a £250pm service charge and ground rent as it's a leasehold with right to manage. It's a 35yr mortgage so we get about £200pm equity and pay around £800pm interest. It's a great flat but I want to move to a larger property in a different area, initially renting as it'll take quite a long time to sell the flat (for various reasons I won't go into!). If we rent the flat out and I go and rent elsewhere, I'll be making a loss on the flat (I'm a 40% taxpayer and the rental income would cover the mortgage + service charge + agency fees but I believe I'd have to pay tax on income not profit hence the loss). There's also insurance, council registration fee, maintenance etc. Obviously I'd then pay rental money to a landlord too for the house I move to.

I know property taxes have changed in recent years and I'm very supportive of landlords being taxed on profits. However, my initial research suggests that professional landlords who buy property through companies only pay tax on (company) profits whereas I'd pay tax on revenue. I'd pay 40% vs them paying corp tax (25% ish?). Is my understanding right and is there any regulation or tax relief specifically for "accidental" landlords who are also renting a home themselves rather than having a big empire of properties as a business? Also how would the tax work for co-owners, would I just pay 40% tax on half of the rental income? My friend lives abroad in case that's relevant.

I know there are a lot of accidental landlords due to cladding, relationship changes etc so am hoping the question is also useful for other listeners.

Thank you! Emma

32:33  Question 6

Thanks for an excellent podcast - one of the best in the personal finance space.

Around 6 years ago I inherited a low 6 figure sum which I put into a GIA. Each year I have made Bed & ISA transfers to diffuse any Capital Gains and to move more of my money into a tax shelter. As we have had a strong investment environment over this period I still have a reasonable balance in the GIA. Now the government has reduced the annual Capital Gains allowance to such an extent that I expect to be unable to defuse all of my Capital Gains each year. This will limit the amount I can Bed & ISA and I expect the GIA balance to start increasing compounding the issue. To be honest I don't think this will be an unusual position to be in as you will not require an unfeasible balance in a GIA to pay CGT on "gains" solely due to inflation.

My current plan is to allow the above to happen by only utilising my annual CGT allowance and not paying CGT while I am working.

My question is how CGT is charged in early retirement. Lets say I stop working at 55 and don't take my pension until 57 (earliest I can). I will have no income for two years so my Personal Allowance will be unused. In this case can I make £15,570 of gains in the year before CGT? Searching online I can only find information on Basic and Higher Rate GGT and not Nil Rate. Thanks, Simon

38:43  Question 7

Hi, Love the podcast. I have some questions about pension contribution limits and tax relief. My taxable employment income for 2024/2025 is around £30k. I already contribute to a workplace pension via salary sacrifice. The total amount paid in by my employer is £12k.

I am using my full ISA allowance but still have savings and investments in a GIA, not sheltered from tax and would like to pay a lump sum into a SIPP before the end of the tax year. My questions are:

What's the maximum I can pay in? Is it £30k or do I have to subtract my employer workplace contributions, so only 18k? I keep finding conflicting information online! If it's 30k, does this mean I actually pay in 24k? If it's 30k, would I receive government top up on all of it, even though I didn't pay tax on the first £12,570? Does the contribution to a SIPP actually reduce my taxable income? So if I contribute the full £30k (assuming I can) is my personal allowance then unused by employment? I have savings and investments income of around £10k from my GIA. Would this then fall inside my personal allowance and no tax be due?

Thanks for any help you can offer. I'm so confused with all the information online! Thanks so much for the podcast - keep up the good work. Alison

In this episode we answer questions about RSU’s, the Cashflow Ladder, Pension vs LISA and a whole lot more!

Shownotes: https://meaningfulmoney.tv/QA6 

01:42  Question 1

Hello Pete and Roger. Recently discovered this and am listening to every single episode. Brilliant. I've read a fair amount about the % balance of Equities, Bonds/Gilts and Cash I should have in my retirement pot, based on my age (61). Somewhere in the 40%s for Equities, perhaps. What I am not finding advice on is whether I should include my DB pension in this equation and, if so, how? Do I consider it to be cash? And if so do I use the transfer value or use the predicted annual pension pay-out in some kind of calculation?  Thanks for any clues! Best wishes, Phil

11:14  Question 2

I enjoy listening to your podcasts whilst running and I read your book, recommended to me by a financial advisor friend. I’m 37, and early next year I am likely to get around £220k from some shares I hold in the company I work at. If capital gains tax rises, I guess I’ll see, at best, £150k. Any advice on the best place to keep it / invest it for up to 5 years?

We plan to then use it to relocate abroad and perhaps set up a lifestyle business such as a B&B. I read about setting up a 'dividend-paying company' which could be useful as it’s often accepted as ‘passive income’ when moving to another country (potentially Portugal or Cyprus). This holding company could pay out whilst growing the savings through managed investing. Is this a potential option for my money?

Many thanks, Faye.

19:14  Question 3

Your recent podcast on Helpful Basics: Self-employment and Side Hustles got me thinking about retirement saving vehicles. Specifically, what is the best investment vehicle for a self-employed basic rate taxpayer; a pension or a stocks & shares LISA for retirement purposes?

Personally, I am 44 years old and started a LISA from its inception. I am a homeowner. Is it best to maximise LISA contributions until I am 50 years old, then focus on pension contributions?

I have a pension pot of £250k which I am minimally contributing to, preferring to prioritise LISA (and ISA) contributions. I like the idea of the 25% bonus on contributions and tax-free withdrawals, which should complement future pension withdrawals from the pension pot in a tax efficient manner.

Any guidance would be greatly appreciated. Best wishes, Adam

23:06  Question 4

Where someone has had a number of jobs over their career then consolidating multiple DC pension pots can seem attractive (to reduce admin and costs etc). However, what sort of benefits/ guarantees can be lost by transferring pensions, in particular are there specific things to be aware of with regard to older stakeholder / with profits pensions?

It would be handy to know what to look for and what sensible questions to ask when talking to existing pension providers.

Thank you G Locke

32:05  Question 5

Hi Pete and Roger,

Loving your podcasts, great content as always. A question to do with retirement cashflow forecast planning.

I have been reading an article by an American financial planner named Ty Bernicke. In his article, he asserts that retirees voluntarily spend less as they get older, referencing statistics from US government departments.

Is there any equivalent recent research in the UK? Should I use his approach and figures when attempting my own forecast?

With very best wishes and thanks again, James Cotterill

37:40  Question 6

Hi both,  Stumbled across your podcast recently and have been binging on the episodes ever since. Very insightful information for an early 30 something year old trying to make better financial decisions, so thank you!

My questions is: You often talk about paying off credit card debt before investing, but what if the credit card debt is not excessive and can be managed? What are your thoughts on paying off small amounts off your credit card monthly but also investing monthly, especially if returns on investing is potentially greater than the interest on the debt?

Thank you Nathaniel

Today we’re talking about budgeting and encouraging that you CAN set and stick to a budget. It’s not easy, but it isn’t complicated either, so we’re here to make it as easy as possible.

Shownotes: https://meaningfulmoney.tv/YC4 

01:22  Budgeting is a baseline skill – spend less, earn more.

07:55  Budgeting should be forward-looking – be proactive not reactive.

09:30  Keep it flexible – Emergency fund for surprises.

12:27  Track – Establish your income, Identify what you spend your money on currently.

19:31  Plan – Pay yourself first, Know your triggers for (over)spending.

24:50  Do – Two account system, Bills and spending.

32:34  Review – Review weekly and at the end of the month. It’ll take time to bed in, so don’t beat yourself up if you don’t get it right first time.

40:44  Podcast Review.

42:17  News about the podcast.

This week, I chat to long-term friend of the show, Rob Dix, co-host of the Property Podcast, author of The Price of Money and now a new book Seven Myths About Money, which I highly recommend.

Shownotes: https://meaningfulmoney.tv/session564 

02:10 - Remind us about who you are and what you do.

03:47 - What was the trigger for writing this book hard on the heels of The Price of Money?

08:53 - Can you summarise the Ashvin Chhabra money motivations and why we need a new paradigm for risk management?

16:44 - I imagine some people will be surprised to read your challenge about home ownership. Can you tell us your views on home-ownership as a kind of default goal for so many people?

21:30 - I found myself nodding along as I was reading all of the book, and especially the sections around compounding and diversification - both of which are part of the accepted doctrine of investing. Is it fair to say that you think we're in for a lower and slower investing world going forward?

26:15 - If you had to give a single piece of advice to anyone looking to take their finances seriously, perhaps for the first time?

29:45 - Where's the best place to get the book and find out more about what you're up to?  https://robdix.com/myths/ 

We’re back with another Q&A show, with a bit of a DB Pension tilt this time, though we even get into a question on equity release. We cover lots of ground, as always - hope it’s useful!

Shownotes: https://meaningfulmoney.tv/QA5 

00:55  As you made a request for questions I thought I'd pose this (apologies in advance for the length, feel free to trim as required):

I am single, mid-forties, with no dependents (I do have some family I plan to pass wealth on to, but when they need it rather than leaving it in my estate). I'm aiming for the mystical die with zero.

As a home owner, and given I'm not worried about passing it on, would it be a good idea to start drawing on the capital locked up in my home via drawdown equity release (using say home reversion) before the investments in my pension and ISAs given this is the most illiquid and concentrated of my assets?

Downsizing isn't really an option to release capital (it's a two-bed semi so property doesn't get much smaller). That said equity release looks to offer rates well below the market value (apparently they want to make a profit), certainly if you're on the younger end of the eligibility spectrum. It's far from the case of selling 50% of the house and getting that amount, even spread over a number of years.

I could sell the house myself and rent instead, using the released money to pay the rent (and if the money is invested, provided my rent doesn't rise egregiously, it might even stay ahead of that cost). Though there are potential issues with that approach, certainly over the long term.

Are there any other ways to unlock the capital tied up in my property?

Regards, Lee

10:20  Hello Pete and Roger.

I work in public sector and have a decent DB pension, larger part being final salary and lesser part CARE. I will be able to commute up to 25% with a commutation factor of about 24:1. Which will give me about £180,000 depending on when I leave.

Upon retirement I will seek to move most into a 100% equities investment wrapper, I’m fairly happy with proportionate risk, as my DB pension will provide a life long index linked safety net, and I will also build a bit of cash ladder of declining risk.

I have recently watched your ISA v Pension comparison with keen interest. It was fascinating to see that even though a pension is taxed, the tax relief going in, offset the tax going out, and the option of having both works particularly well in terms of tax efficiency and retirement planning.

I had been putting a modest amount into a S&S ISA each month for the last few years, but recently opened a SIPP and am now sending the spare cash that way for the extra tax relief. It’s very satisfying seeing the “free money” coming in each month..

I can potentially retire in 2 years at 55 with an actuarial reduction or continue working until 60, or retire sometime in between. I also have a preserved DB pension that I can take at 60 from a previous employer.

In the mean time I want to keep saving and investing, and will try to ramp it up for next few years.

My question is – It was pretty clear from your numbers that those with a DC pot are best with both ISA & SIPP in terms of tax efficiency and flexibility, but given that my DB pension will use up all my personal tax allowance, does that swing the momentum on where to invest back in favour of an ISA over a SIPP, as other than the 25% tax free element, I would pay basic rate tax on all my SIPP drawdown.  I’m sure other people with either a modest DB pension or secondary passive income could find themselves in similar quandary.  ( I’m aware all could change after the next budget. )   I live up north, houses are cheap as chips, therefore IHT unlikely to be a major concern in terms of decedents.

Chris

16:47  Loving the sultry combination of the north and south tones! I’ve been listening to the podcast for several years now, and you’ve given me loads of practical tips that I’ve been able to take forward. However, I’ve recently received an ADHD diagnosis, and while I earn a good salary, my impulsivity often leads to overspending, and I’m finding it difficult to maintain control over my finances. I have a monthly planner that I check regularly with the bills, so they are ok, but on spending it is always difficult, and I often dip into credit card usage.

I would really appreciate any advice or practical tips you could offer for someone like me, who struggles with impulsive spending with a disability. Things like “just don’t spend money” just don’t work! Are there any specific strategies, tools, or approaches that can help someone with neurodiversity, particularly ADHD, to manage their money more effectively? Thanks again for the amazing content you put out. Looking forward to any guidance you can provide.

Best regards, Ian

22:53  My question / suggestion relates to listeners with Defined Benefit (DB) pensions.

Although they’re becoming rarer, there is still a sizeable minority of people who have DB pensions. I suspect the majority of them are (or have previously been) employees in the public sector – but they’ll run to quite a high number.

For instance, there are 1.5 million current employees in the NHS, half-a-million Civil Servants, half-a-million teachers, Police, Fire Fighters etc etc. Double that to allow for all the former employees, plus those with DB pensions in the private sector, and you’re talking decent numbers.

I’ve learned a lot over recent years from your Podcast, but there have been a number of occasions where you’ve alluded to the fact that financial planning advice might differ for folk with DB pensions.

One example might be the topic of opening a separate SIPP (in addition to the DB pension) to supplement retirement income (or to fund early retirement) or to move money outside the person’s estate.

Another example might be the balance of ISA versus Pension: with some DB schemes, the benefit of “topping-up” is reduced compared with those in DC pensions. In many cases the employer isn’t adding “free money” to your pot, so for many there may be more reason to lean towards ISA contributions.

Another difference might be the topic of investment risk – if someone with a DB pension has a guaranteed inflation-proof income in retirement, might they be wise to consider higher risk investments? And certainly without the dreaded “profiling”.

Another example (as alluded to earlier) might be in Estate Planning: with a DB pensions, there’s no “pot” of invested money lying outside one’s estate, so there’s no IHT advantage.

I realise this might amount to more than just a 5-minute topic for your Q&A edition, but I think you’d have enough listers to make a whole episode for DB pension recipients. What to you reckon?

Thanks for all the great advice. Best wishes, Dr Pete

29:43  Thank you for all of your support over the years through the podcast and YouTube.

I work for the NHS which is very tough at the moment but it does give me the benefit of a defined benefit pension when I get there. I am 35 years old but am wanting to make sure I am saving enough for retirement but also to make sure that I have enough for my children to support them through university and starting life! My wife is a fantastic stay at home Mum. We are aiming to have the “comfy” level of retirement at £58000 that you have previously mentioned which should give us some capacity to support the children!

I earn £58000 plus about £7000 as a side hustle. I save into my NHS pension, save about 50% of the side hustle income into a SIPP, and save around £400 into a S&S ISA and £200 into cash savings each month.

There are lots of examples about how much you should save but I haven't found anything when you are part of the NHS/other DB pension. Am I saving enough, or too much? I don't want to miss out on life now by over saving!

Thanks, Alex

36:13  Enjoying listening to another excellent podcast where I heard the shout out for questions. One I had is “what’s the best tax efficient way to save for kids futures? I started going down the path of saving into JISA’s, but then didn’t like the idea of being unable to access the money on their behalf, or them to do so before 18. I contribute to premium bonds, but theoretically that will be capped at £50k (here’s hoping!). Any other obvious good suggestions?”

Thanks & keep it up, continue to love the show.

Cheers, Chris

Today we’re going to be taking about being financially prepared for life events. This is important because it’s so easy to make progress with your finances, only to have the rug pulled out from under your feet by something unexpected. Or even something that IS expected…

Shownotes: https://meaningfulmoney.tv/YC3

Everything You Need To Know

03:00 Life events – like what?

03:55 Marriage

04:43 Having a Child

05:09 Buying a Home

05:24 Career Advancement

06:02 Starting a Business

07:47 Receiving an Inheritance

08:44 Job Loss or Career Change

09:10 Divorce or Separation

10:04 Serious Illness or Disability

10:41 Death of a Family Member

11:36 Caring for Aging Parents

12:25 Children’s Education Costs

12:53 Relocation

13:45 Retirement

14:14 Unexpected Large Expenses

15:15 Being prepared means mastering the 3F’s – Foundation, Forward-looking, Flexibility.

Everything You Need To Do

17:03 Foundation – Emergency fund, workplace benefits and personal insurance.

LifeSearch - affiliate agreement.

28:38 Forward-looking – consider what may happen and what is likely to happen.

43:02 Flexible – keep things flexible so that we can be able to make changes as needed.

51:47 If big events happen – take your time, seek help.

53:35 Podcast Review

In today’s episode, we show you how YOU CAN learn to invest. Honestly, it’s easier than you think!

Shownotes: https://meaningfulmoney.tv/YC2 

Everything You Need To Know

01:21  What is investing? Swapping your money for assets that grow in value, produce an income, or ideally both.

05:46  Why do people think it’s hard?

08:14  What you really need to know? Asset classes that matter - equities, bonds and property.

Everything You Need To Do

29:48  Build a foundation first.

32:58  Start with money you’re probably already investing.

42:27  Open an ISA/LISA/Pension

48:40  Choose a fund - You want a global multi-asset fund.

52:25  Watch and learn - Commit to doing NOTHING for at least a year.

56:02  Don’t…

58:05  Podcast Review 59:20  The Meaningful Money Retirement Guide is due out on 6th May 2025

Today we kick off a brand new season designed to empower you to take control of your finances. We’re excited for this one as we hope to show you that you CAN be good with money!

Shownotes: https://meaningfulmoney.tv/YC1  00:01 - Intro 03:27 - Everything You Need To Know 23:29 - Everything You Need To Do 49:08 - A Review From A Listener