State Pensions Credit 2023 2024

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Nothing Saved at 50 / What can I do and how much should I save? / Retirement Planning UK • ⏰ • 0:00 - Introduction • 1:33 - State Pension available? • 1:51 - PLSA Retirement Living Standards • 2:14 - Create a savings gap • 3:43 - Passive income? • 4:11 - Where should the majority of your savings go? • 4:34 - Greatest gains will come from contributions, not returns. • 5:14 - What tax wrapper should be used? • 8:02 - Example on a cashflow plan. • This is such an important area and one that has come up a number of times. And it has to do with not having saved any money at various ages, from 35 all the way up to individuals in their 50’s. • Now straight away, at age 50, the positive here is that there is still time to get a plan together and save some money. • First of all for our 50 year old with no savings we need to know what they will be entitled to get, if they have their 35 qualifying years then we know they will get full state pension of just over £9,000. So this is a great start. However, they are looking for a higher income than this, if we go by the PSLA retirement living standards, the minimum retirement living standard is £10,200 for a single person or £20,200 for the moderate standard of living. So lets look at both of this to see what would needed to be saved between the ages of 50 and 67 to approx. achieve that level of income and we’ll look at the most tax efficient way to accumulate it. • Lets first look at the achieving the minimum level which is £10,200 per year, clearly with a full state pension of around £9000 per year this level is easily achievable and would really only need an income from a pension of approx. £900 per year. Which in this case would equate to an approx. fund value of £25,000. But bearing in mind this is the minimum. The contributions as I’ll show you here would be around £100 gross per month based on 3% net return (we have built 2% inflation into this). • It becomes more of a stretch when a total income of £20,000 is required. As this would need a pension income of approx. £1000 per month or £12000 per year which would equate to an approximate fund value of £250,000. In order to get there we would need contributions of £1000 gross per month based on 3 net return. If we were to assume a salary of £45,000 which is slightly below average for a 50 year old then the contribution of 8% would equate to £3600 gross per year. To hit £1000 per month based on £45000 they would need to contribute a further 18% for a total gross contribution of 26%. • The benefits taken from the pensions assume a 4% withdrawal rate and this could be different depending on whether an annuity or fixed term annuity was used rather than drawdown. • Video on how to check your State Pension Age and Forecast: • • UK STATE PENSION AGE FORECAST - How... • Link to PLSA research: • https://www.retirementlivingstandards... • 🗒 Please note: • The information provided is based on the current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow. • All references to taxation are based on my understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances. • This channel is for information and education purposes only. Any information or guidance given does not act as financial advice. Please consult a financial adviser if you are unsure in anyway. • Keep in mind that the value of your investments can go down as well as up, so you could get back less than you invest. • ⭐ My aim is to provide education and guidance to help individuals understand pensions, investments and protection.

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