5 reasons why Flexi-Access Drawdown is Better Than Annuities

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5 reasons why Flexi-Access Drawdown is Better Than Annuities

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The Retirement Café with Justin King

Күн бұрын

When you retire, you may prefer to use your retirement savings to buy an annuity, rather than use flexi-access drawdown. I want to explore 5 reasons why you might consider drawdown to be beneficial over an annuity immediately.
Other videos about pensions you might like: • Pensions
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Пікірлер: 32

@TheRetirementCafe 2 жыл бұрын

Did you know this about flexi-access drawdown versus annuities?

@nightowl8352 2 жыл бұрын

No,everytime I learn something new with you.

@brownwellson54 9 ай бұрын

My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in US.

@LorenaG.Cresswell 9 ай бұрын

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.

@GudrunScharrer 9 ай бұрын

Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors and here says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.

@LorenaG.Cresswell 9 ай бұрын

I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?

@GudrunScharrer 9 ай бұрын

Having a counselor is essential for portfolio diversification. My advisor is Stephanie Kopp Meeks. who is easily searchable and has extensive knowledge of the financial markets.

@LorenaG.Cresswell 9 ай бұрын

Found her, I wrote her an email and scheduled a call, hopefully she responds, I plan to start 2023 on a woodnote financially..

@lxxxs2247 2 жыл бұрын

under rated channel, very useful for everyone, the world needs more content like this! Thanks for putting in the effort

@nightowl8352 2 жыл бұрын

Brilliant video as usual,better than my private work pension provider a million times Huge thanks

@TheRetirementCafe Жыл бұрын

Glad it was helpful!

@MultiOutdoorman Жыл бұрын

Let's not forget the advantage of pension drawdown to financial advisers .... endless fees for every year of our retirement days. Call me cynical .😢

@aficio698 11 ай бұрын

Exactly- tired of poor returns whilst fund managers n advisors take their fees. Took back control. Advise was more about maintaining IFA involvement.

@mohamedpatel3978 2 жыл бұрын

Thanks again for another great video.

@TheRetirementCafe Жыл бұрын

My pleasure!

@roblowry9457 2 жыл бұрын

Interesting video - many thanks. Any chance you could do one on flexible access drawdown vs UFPLS? Not sure which would be more useful when drawing down chunks of cash (e.g. annually)

@pankajthakrar1679 Жыл бұрын

Thank you

@hometechUK Жыл бұрын

Why are so many people against Annuitys, remeber you will soon get 11k state pension that goes up with inflation & currently annuities are curreny quiet high, with drawdown you have to spend time checking your not running out of cash.

@iaing9028 6 ай бұрын

People are against annuities because they are very bad value, they basically amount to giving an insurance company your money, they will invest it & give you the interest on that money every year. When you pass away, they keep the capital. I have 2 pensions, one a DC pension where I have paid in for 25 years & a previous DB pension with 10 years payments. This DB pension basically pays me an annuity. I’m really glad I have the other pension as this DB final salary pension is paying a low return & if I pass away before retiring my wife gets a pittance of the money.

@dd-ys9wi 2 ай бұрын

Look at annuities on 75th birthday when you start gifting on a major scale at start of the 7 year wind-down to dementia & check-out dates.

@HungNguyen-se8dn 26 күн бұрын

In layman's language, can you tell me what are the draw down and annuity? Thanks

@MultiOutdoorman Жыл бұрын

But I did just hit the like and subscribe buttons 😅

@dd-ys9wi 2 ай бұрын

A bit unclear. Would benefit from: (a) 3 charts showing. £40,000 income - taken over 1, 2, 3 years. "Look people - being patient, I take it in March & April, not just March saves me £xx because I've spread it over 2 tax years" (b) £100k in my pension vs £50k in mine, £50k in wife pension (c) £25k in each of pension & ISA. Yes, I didn't get the tax relief but spare £1k - throw it into ISA in your 50s, 60s and this good housekeeping will help in holiday planning just 10years later"

@davehood1514 Жыл бұрын

Can I take my DB pension at 60 then put 25% tax free from my DB pension and put into my DC pension and and gain the x 1.25, keep paying into DC pension and take the25 % tax free on DC pension at a later stage? Great channel by the way 👍

@Wiltshire-observer Жыл бұрын

I’m not sure you can take 25% tax free from a DB pension, it would be written in the rules of the scheme. I know you can’t ‘recycle’ tax free cash through pensions - it would be a great idea if you could !. So the taxman might stop you doing what you suggest.

@davehood1514 Жыл бұрын

I work for Bt part b of the DB pension (80 th scheme) after 40 year you get half pay pension index linked and 1.5 years tax free lump sum with an option off less pension and more tax free lump sum, what would stop me putting enhance lump sum into my DC pension?

@Wiltshire-observer Жыл бұрын

@@davehood1514 book an appointment with PensionWise Dave. They can give you accurate advice. I think the taxman will stop you taking a tax free withdrawal then asking the taxman to add 25% to it on another scheme !. PensionWise is your best source.

@TheRetirementCafe Жыл бұрын

Yes, You can take the Tax-free cash from the DB scheme, and reinvest in your DC scheme. This shouldn't trigger the Money Purchase annual allowance. You will need to check your contribution allowance which is dependent on your salary. You can of course carry forward if that's a problem. I have videos on this. Consider salary sacrifice as an alternative to you making the contribution as you may get an NI uplift.

@onetone4561 Жыл бұрын

Poor advice I've hed a flexi drawdown pension for 4 years and zero growth

@jan2000nl 8 ай бұрын

Really? May want to reconsider your investment. Have a look at the S&P500 over the last 4 years. All that’s needed is a low cost index tracker. A globally diversified fund would return lower but have less volatility as well. Either way sounds like you haven’t got your money in a good pot.

@user-gz2os8mi9h 6 ай бұрын

@@jan2000nl What is a low-cost index tracker, Pls? Is Vanguard S & P 500 the one the account is opened with five hundred pounds then one deposits one hundred pounds monthly until retirement age or state pension age which is in ten years? I have a small workplace DB pension scheme so hope to buy additional pension contributions by paying installments until retirement age so I can have £25000 annual pension income upon retirement at state pension age, To achieve this, I have to contribute around £900 to £1000 per month to the workplace DB pension scheme. Is it better to half the amount and invest in the S &P 500 SIPP and ISA since annuities die with the individual?

@heavenlymermaid2192 Жыл бұрын

Bugger the family ! It’s my money I’ve worked for it so I’m spending it asap at 55 ,why be the richest person in the graveyard ???? The family can save their own money not get mine !