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Retirement


ChrisK said:
Ongoing advice is 0.65% but now I am set up will probably drop them next year.
What have you got too lose 👍
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Not saying you're wrong and I may well go down the same route but that's what you've got to lose. Someone providing a bit of advice, a few hours work at most, and taking 0.65% of your pension pot each year for the privilege. If you have 500K in there that's over £3K a year for doing next to nothing. Is there not another way where you pay someone for a few hours of their time at a more palatable rate? Or am I underestimating what they actually do? I can't help thinking with a bit of initial advice and some homework you can make the same choices yourself surely. All the information about tax thresholds and suchlike is public info after all, there isn't any great hidden wisdom they have access to but the rest of us don't. Again, unless I'm missing something.
 
The Great Soprendo said:
Not saying you're wrong and I may well go down the same route but that's what you've got to lose. Someone providing a bit of advice, a few hours work at most, and taking 0.65% of your pension pot each year for the privilege. If you have 500K in there that's over £3K a year for doing next to nothing. Is there not another way where you pay someone for a few hours of their time at a more palatable rate? Or am I underestimating what they actually do? I can't help thinking with a bit of initial advice and some homework you can make the same choices yourself surely. All the information about tax thresholds and suchlike is public info after all, there isn't any great hidden wisdom they have access to but the rest of us don't. Again, unless I'm missing something.
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If theres tax advice that saves you more than that, it'll be worth it. And yes, you can watch the likes of James Shack, you can then figure it out yourself but if youre not a numbers person which many aren't you might need that help.
 
Fletch said:
Anybody pushed the button retired and not bothered with an IFA ?
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I didnt consult anyone
My mate was about 6 years into early retirement already .
He'd self taught himself what to do regards investing and doing stuff to maximum gain.So I just picked his brain a bit ,did some basic maths ,did a few things before my earnings dropped to zilch as in maxing out allowances to top ups and sipps . and packed in at 62 .
 
The Great Soprendo said:
Not saying you're wrong and I may well go down the same route but that's what you've got to lose. Someone providing a bit of advice, a few hours work at most, and taking 0.65% of your pension pot each year for the privilege. If you have 500K in there that's over £3K a year for doing next to nothing. Is there not another way where you pay someone for a few hours of their time at a more palatable rate? Or am I underestimating what they actually do? I can't help thinking with a bit of initial advice and some homework you can make the same choices yourself surely. All the information about tax thresholds and suchlike is public info after all, there isn't any great hidden wisdom they have access to but the rest of us don't. Again, unless I'm missing something.
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I thought the same mate,
tbh it’s what you feel comfortable with, but what most people don’t think about, no matter where you put your money you are paying for the privilege, sometimes a hidden cost, say you are getting 6% on a product what do you think the company who own that product are getting from it been invested probably 12% or more none of these investments are free companies are making money off your money.
So am 3 years into retirement now, and don’t have all my investments with them, probably half but for example their products have done better than the Vanguard ones which I have plus you also pay too use there platform, at the moment I would rather have a mix rather that lumping everything in one basket.
Say for example with no advice u manage yourself and your pot of say 500k is making 6% but the IFA recommended products have made 12% the 0.65% fee is quickly forgotten.
More importantly for me was
The tax I claimed back as without there knowledge I would have lost that money.
I won’t mention how much but it was a decent amount as I was paying 40% income tax at the time.
On of the reasons I got tax back was
In my last 3 years working I hadn’t used up all my tax free allowance paying into a pension pot, so they advised sticking my redundancy in a new Sipp
and that meant I wouldn’t be taxed 40% on everything above the 35k tax free redundancy allowance. Quids in 👌
Your bank will offer a wealth management service and the first appointment is free imho its a no brainier for anyone who isn’t in the financial sector.
 
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Fletch said:
Take it you needed to inform HMRC , and have chat with your pension provider
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I left end of tax year . I briefly claimed jsa and half looked for part time work so hmrc updated me straight away . That meant I got all of my little pension I'd been drawing a few years instead of 2/3 of it .My earnings this year will be under the allowance .That's the plan for the pre state pension phase . Main pension untouched bar tf lump I took
 
ChrisK said:
say you are getting 6% on a product what do you think the company who own that product are getting from it been invested probably 12% or more none of these investments are free companies are making money off your money.
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Can you explain that one? I can't get my head around it
 
ChrisK said:
I thought the same mate,
tbh it’s what you feel comfortable with, but what most people don’t think about, no matter where you put your money you are paying for the privilege, sometimes a hidden cost, say you are getting 6% on a product what do you think the company who own that product are getting from it been invested probably 12% or more none of these investments are free companies are making money off your money.
So am 3 years into retirement now, and don’t have all my investments with them, probably half but for example their products have done better than the Vanguard ones which I have plus you also pay too use there platform, at the moment I would rather have a mix rather that lumping everything in one basket.
Say for example with no advice u manage yourself and your pot of say 500k is making 6% but the IFA recommended products have made 12% the 0.65% fee is quickly forgotten.
More importantly for me was
The tax I claimed back as without there knowledge I would have lost that money.
I won’t mention how much but it was a decent amount as I was paying 40% income tax at the time.
On of the reasons I got tax back was
In my last 3 years working I hadn’t used up all my tax free allowance paying into a pension pot, so they advised sticking my redundancy in a new Sipp
and that meant I wouldn’t be taxed 40% on everything above the 35k tax free redundancy allowance. Quids in 👌
Your bank will offer a wealth management service and the first appointment is free imho its a no brainier for anyone who isn’t in the financial sector.
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The 'products' are off the shelf index funds that typically have inbuilt fees of around 0.2%. I have my funds in vanguard who charge a platform fee of 0.15% which is capped once you hit £250k. Your 12% returns are just because the markets have done well in recent times. Mines up about 15% in last 12 months (well it was before the US invaded Iran). 95% of fund managers dont beat the market
 
Fletch said:
Take it you needed to inform HMRC , and have chat with your pension provider
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You don’t need to inform HMRC - your employer will do this and issue a P60, but you will need to instruct your pension provider to start pension drawdown/take lump sum. Once you start taking your pension the pension company will inform HMRC and the pension company will also issue your P60 each year.

I never used a FA, but all depends on your personal circumstances.if you haven’t already done so, then everyone over 50 is entitled to a free appt. with pension wise/money helper, which is government backed.
 
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42 said:
The 'products' are off the shelf index funds that typically have inbuilt fees of around 0.2%. I have my funds in vanguard who charge a platform fee of 0.15% which is capped once you hit £250k. Your 12% returns are just because the markets have done well in recent times. Mines up about 15% in last 12 months (well it was before the US invaded Iran). 95% of fund managers dont beat the market
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👍 All mine in Vanguard mix of VLS and Global all cap, no IFA. Just checked up 18% from 6th March 2025, that includes taking my pension out as well
 
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Fletch said:
Anybody pushed the button retired and not bothered with an IFA ?
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Yes, years before I'd ditched my pension advisor after lots of research and education and deciding passive investments were the way to go. As such I had more confidence and knowledge on what to do with the pension etc when it came to retirement. Knowing when I could retire was always the question (working out 'the number' - Google it). I don't think anyone that's worked decades is truly comfortable with the thought you stop bringing in a regular income and start using savings (if pre 55) and/or withdraw a pension (how long will it last?). It's been a couple of years of drawing my private pension for me and before that I had gone a few years of intermittent work by choice. It's finally dawned on me I have more than enough to live a comfortable retirement (without any extravagance) so have no thoughts on returning to work. If you're not comfortable doing the research and gaining that knowledge then definitely go with an IFA.
 
archiesdad said:
Is it just the cost putting you off. I think having an experienced person look over your plans is a good option and not that expensive in the grand scheme of things. (I guess it depends how complicated your plan in)
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It’s the missus , has a mix of cash / S&S isa/ vanguard pension - not big amounts though so relatively straightforward
Barista said:
You don’t need to inform HMRC - your employer will do this and issue a P60, but you will need to instruct your pension provider to start pension drawdown/take lump sum. Once you start taking your pension the pension company will inform HMRC and the pension company will also issue your P60 each year.

I never used a FA, but all depends on your personal circumstances.if you haven’t already done so, then everyone over 50 is entitled to a free appt. with pension wise/money helper, which is government backed.
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She Self employed , just rang them said ring back after retired and they update records so no longer do self assessment
 
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Matt Hopkins said:
👍 All mine in Vanguard mix of VLS and Global all cap, no IFA. Just checked up 18% from 6th March 2025, that includes taking my pension out as well
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Actually thinking about it, 12 months back was when Trump lost the plot over tariffs & market plummeted. So the high 12 month returns includes all of the bounce back. So even though theyll theyve dropped over last few days, the YoY returns will have still held up because current drops aren't as bad as last years
 
42 said:
Actually thinking about it, 12 months back was when Trump lost the plot over tariffs & market plummeted. So the high 12 month returns includes all of the bounce back. So even though theyll theyve dropped over last few days, the YoY returns will have still held up because current drops aren't as bad as last years
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My lowest value was 4th April 2025 up nearly 30% since then 👍
 
Matt Hopkins said:
Can you explain that one? I can't get my head around it
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Ha ok mate will try,
I no expert but here goes say you have 100k in a Post Office ISA @ 3% return you would get £3k per year interest happy days.
But the Post Office are not daft they will have your 100k invested somewhere and they are getting a much bigger return on it yet they only pay you 3%, that is the privilege of using there product they are making money out of your money if that makes sense.
So everyone who uses a bank or building society is paying one way or the other.
42 said:
The 'products' are off the shelf index funds that typically have inbuilt fees of around 0.2%. I have my funds in vanguard who charge a platform fee of 0.15% which is capped once you hit £250k. Your 12% returns are just because the markets have done well in recent times. Mines up about 15% in last 12 months (well it was before the US invaded Iran). 95% of fund managers dont beat the market
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Yes mate
I also got Vanguard LS 80% & 60% both doing well, really easy to use there products and website, and no doubt I will eventually move more across and manage myself, but everyone’s circumstances are different, especially when retiring and taking your work pension, the pension lump sum and the redundancy, I really didn’t want to cock it up,
and getting the tax back I did kind of proved my point, of a good decision to speak with a IFA.
 
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