How much do I need to retire with £20k/£30k/£40k/£50k per year? (100-year backtest results)

Рет қаралды 157,538

Күн бұрын

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I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about working with us, please follow this link: go.novawm.com/getintouch
How Much Do I Need To Save Tool
james-shack.co.uk/savings-cal...
Software & Data
www.timeline.co is the backtesting software I used in this video. It includes over 100 years of stock market adn inflation data. To get such a large data set, they have spliced together different indices to cover different periods, but the modern version of the indices used in this video are:
Global Equities - Morningstar Global All Cap Target Market Exposure
Global Bonds - Morningstar Global Core Bond
RISK WARNINGS AND DISCLAIMERS
Capital at risk. This video does not constitute personal advice. Past performance is used as a guide only. It is no guarantee of future returns. Prevailing tax rates and reliefs are dependent on individual circumstances and are subject to change. We do not provide tax advice.
Issued on behalf of Nova Wealth. Nova Wealth is a trading name of Octopus Wealth Limited, which is authorised and regulated by the Financial Conduct Authority (FRN: 778951) and is a limited company registered in England & Wales (10739796).
James Shack™ property of James Shackell
Copyright © James Shackell 2024. All rights reserved.
The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it.
00:00 Intro
01:15 How much do I need to retire?
13:02 How much do I need to save?

Пікірлер: 376

@JamesShack 27 күн бұрын

To be super clear, we're talking about sustainable expenditure here. The software takes care of taxes. It's assuming you have no other income or capital gains coming in from other sources other than the state pension, as indicated.

@ZelenoJabko 26 күн бұрын

Why do you assume everyone will get state pension? I won't because I will have worked less than 10 years by the time I retire.

@alcanford4495 26 күн бұрын

@@ZelenoJabkobecause I imagine the vast majority of people watching this video will get some state pension, and a large percentage will get the full amount.

@OMGxILoveNo0bx 26 күн бұрын

I presume this does not work on phones? I input email and it just says download should begin shortly. Thanks!

@JamesShack 26 күн бұрын

@@OMGxILoveNo0bx Perhaps not, you can make a copy from here: docs.google.com/spreadsheets/d/19C7lE25wEbcDbODnWIH7WK9B2UBTszlolItBJFwK78o/edit#gid=1103659851

@jimboyuk1 26 күн бұрын

@@JamesShack it doesn't work on web browser either.

@Riggsnic_co 2 күн бұрын

The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.

@kevinmarten 2 күн бұрын

Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.

@JacquelinePerrira 2 күн бұрын

Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.

@Jamessmith-12 2 күн бұрын

Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.

@JacquelinePerrira 2 күн бұрын

Carol Vivian Constable is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

@Jamessmith-12 2 күн бұрын

Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance

@albacus2400BC 8 сағат бұрын

I think the people that should be worried are those of us who are retiring with less than a million. I have only 650k in my Roth and I don't know how to grow it and to be honest, it bothers me.

@ericmendels 8 сағат бұрын

I was in this same position a couple years ago. I was always anxious. I decided to start working with a financial advisor, and I started making a lot of monthly dividends that my anxiety disappeared.

@gregorywhem 8 сағат бұрын

Exactly my solution too, even though I'm not retired. As a contractor with limited time to analyze investments, I've relied on a fiduciary for the past seven years to manage my portfolio. This strategy has helped me navigate market fluctuations effectively and also increased my porfolio by up to 300%. You might consider a similar approach.

@FeelMyTruth 8 сағат бұрын

My husband and I have been considering a similar approach. Can I ask who you work with, if that's okay @gregorywhem?

@gregorywhem 8 сағат бұрын

I can't possibly drop her contact here, but you could look her up yourself and contact her if you wish. Her name is "Sharon Lynne Hart." You'll find details to reach her on her website.

@gregorywhem 8 сағат бұрын

*Sharon Lynne Hart* is the licensed advisor I use. Just research the name and you'll find necessary details to work with to set up an appointment.

@Jaymilnere 19 күн бұрын

Loved every second of my watch to the very end. I could really use your help James, I’m 52 and disabled since 2007, still own a small business with $80K in savings. But I'd still love to grow my investments ahead of my retirement.

@hullbruce 19 күн бұрын

Before making any investing decisions, it is advisable that you consult with a qualified financial counsellor. Just my two cents.

@Aurierserge50 10 күн бұрын

@@hullbruce Exactly, why I stopped taking financial advise from KZfaqrs, because in reality I end up with a collection of confusing stocks. Whereas, all I needed was a real market expert to have made over $350k in less than 2 years.

@Aurierserge50 10 күн бұрын

Exactly, why I stopped taking financial advise from KZfaqrs, because in reality I end up with a collection of confusing stocks. Whereas, all I needed was a real market expert to have made over $350k in less than 2 years.

@Jaymilnere 10 күн бұрын

@@Aurierserge50 I've been getting suggestions to use one, but where and how to find one has been challenging, Can i reach out to the one you use?

@Aurierserge50 10 күн бұрын

@@Jaymilnere Alicia Estela Cabouli is a hot topic among financial elitist in Manhattan. She's gained some reputation especially during covid. All the info. you need to set up an appointment is on her web page.

@Carry64 3 күн бұрын

Thank you for for bring up this video! Recessions are an unavoidable part of the economic cycle; all you can do is prepare for them and plan accordingly. I graduated into a slump (2009). My first job after graduating from college was as an aerial acrobat on cruise ships. Today, I work as a VP for a global corporation, own three rental properties, invest in stocks and businesses, run my own company, and have increased my net worth in the last four years.

@Murphy-lu8jr 3 күн бұрын

I have really been looking into mentors lately, the news I have been seeing in the market has not been so encouraging

@BenScott-kn7nv 3 күн бұрын

I would like advice you work with a financial advisor...because in this current volatile market, it is advisable to diversify while maintaining in safe investments, given your budget, you should consider a financial advisor

@StevenCharles-rk4yi 3 күн бұрын

No doubt!! Maya Wooldridge is highly responsive and always follows up to make sure my needs and questions were met. We were saving for a deposit to allow us to move into a new home, and it was successful.

@Murphy-lu8jr 3 күн бұрын

I would really want to use the expertise of this advisor. please is it possible?

@StevenCharles-rk4yi 3 күн бұрын

*MayaBryan01* is the licensed advisor I use. Just search the name. You'd find necessary details to work with to set up an appointment.

@JamesShack 27 күн бұрын

CORRECTION: At 10:00, I said NI for the basic rate tax band is 10%, but as of April 6th 2024, it has been reduced to 8%. I should really stop filming videos at 10pm at night...apologies for the mistake.

@BaileyMxX 27 күн бұрын

Probably won't be far wrong by the time Labour get back in later in the year 🙈😂

@adamp6320 26 күн бұрын

@@BaileyMxX true, I was going to post that - don't worry Labour will fix your mistake posthumously

@Shorty140291 26 күн бұрын

@@BaileyMxXI agree with you. Saying that I think it's needed and that the government reduced it without thinking about the welfare of our country.

@kykslr 25 күн бұрын

Also, in Scotland the higher tax starts at £42k so the earnings band band between 42 and 50k in Scotland has 42+8=50% deductions a huge mark up for salary sacrifice

@KelticStingray 23 күн бұрын

@@kykslrthis to me is unconscionable. That's a huge chunk in low middle earners take home pay and many Dont realise it. I try to salary sacrafice below this into pension for now until weans or life events come along. I don't have faith state pension will be anything remotely meaningful if at all by the time we ever retire so better let it grow a bit now for longer.

@jonno27 27 күн бұрын

I have spoken to a couple of financial planners to try and work this out. I dont have the data to work out the numbers, but i thought the concepts were pretty straightforward. Neither of them could answer these questions. Thanks for putting it here.

@markw6309 27 күн бұрын

I've been watching for a couple of years now and this is the best video yet.

@hailey0675 27 күн бұрын

Great video James, excellent information! I am state-side and sat down last week and did a year by year retirement analysis to age 95, looking at annual inflation, social security income, personal investment returns, along with reducing annual spending as I progress through my 80’s and 90’s with my spouse. I landed exactly where you did with your approach. Thank you for sharing your insights and analysis, much appreciated!

@iainh 27 күн бұрын

Using this video and the provided tool, I feel that I am "on track", at least for now. Thank you James for another great relatable video.

@rob3rt891 27 күн бұрын

Another great video James. I'm sure I've told you this before, but you really need to get your videos into schools so that the age group 16/17/18 especially get to see this stuff. (appreciate it's accessible to them through here, but I think giving them a nudge to come look would be highly beneficial) I'm 34 now and really wish I had this sort of advice when I was 18 and just started working. My pension got fairly neglected into my mid 20's, a large influence on this was poor (nonsense) advice from older relatives stating things like "pensions are a scam" etc. Videos like this help to illustrate just how easy it actually is to save for a comfortable retirement if you start early. Thanks Rob

@shellyperera2010 27 күн бұрын

Completely agree. And you're still young, we only properly looked at our finances in our early 50s. Luckily we'd been paying into pensions for years through work but had no idea which funds we were in. We've got ourselves on the right track with the help of KZfaq but the best thing is that I've talked about it with my children and started JISAs and JSIPPs and they now understand investing and compounding as teenagers. They're paying small amounts into their ISAs themselves and I see that as a big parenting success!

@esmeecampbell7396 26 күн бұрын

Pensions COULD be a scam. The government could change their mind tomorrow and "poof" your pension doesn't exist anymore or you can't access it until 80 or whatever.

@Backtoreality1873 26 күн бұрын

The answer to everything cannot be the government.

@shellyperera2010 25 күн бұрын

@@esmeecampbell7396 You can't do/not do something now based on what you think "might" happen at some unknown time in the future.

@rjScubaSki 25 күн бұрын

@@esmeecampbell7396private pensions. Also, pensioners are an incredibly unlikely group to fuck over in a democracy - they vote at the highest rate and generally for the most status quo policies with a bit of selfishness built in

@willmiller1460 27 күн бұрын

Great video James! Retirement planning is the real gap since pension freedom. I work in investments and took some free advice from our IFA division recently, all they wanted to do was 'move me onto the platform (with a "staff discount")....all I wanted to know about was tax efficiency, retirement planning and paying into my partners pension as a more efficient way of drawdown in retirement....we spent most of the hour talking at crossed purposes!! I have been looking at 75% (global) equity with 25% spot price gold as a buffer....I know it's not traditional equity bond, but after the truss budget I have less faith in bonds being a buffer any more......have you ever thought of doing backtesting on equities and gold? would be interesting to see........

@cavandavidson1185 26 күн бұрын

This is great stuff, clear, balanced and realistic...thanks.

@veramentestanco 22 күн бұрын

Linear and super easy to digest! Simply brilliant!

@eoinm0nvk110 19 күн бұрын

Hi James, TY. I handed my notice in. I retire at 55. Done all your spreadsheets, taken expert advice. I can do it.

@samyeoski 26 күн бұрын

Hi James, I really like how you show your workings and assumptions. Thanks for the video!

@annawong1305 27 күн бұрын

This is the video I've been waiting for! Relatable and concise. Also, thanks so much for the templates, James! Will be sharing this video.

@JamesShack 27 күн бұрын

Glad it was helpful!

@bruceknight3720 27 күн бұрын

Yes, I agree. I'm 51, and I'm imagining retiring at 65. This vid is excellent, and the handy tool should get me focused. Thanks very much

@ryanjames2962 24 күн бұрын

Would be interesting to see required amounts based on ages 57/59/61/63/65 as an alternative too

@294loo 27 күн бұрын

One of your best videos! Thanks again 👍

@GWJUK 27 күн бұрын

My father told me that your desire to do things changes and to that of a lower spend level! He is 80 this year.

@adm58 27 күн бұрын

Yes. I've noticed that to some extent already just between 55 and 65. The other consideration is that spending will reduce if one has nobody (partner or friends) to share experiences with. Holidays, meals out, etc alone aren't as attractive as shared ones. Do things while you can.

@ChrisBird1 27 күн бұрын

70 year olds mostly spend nothing ,their Zest for Sex ,Food ,Beer and fast cars has long gone ,as has the desire to travel ..Comfort is the Norm .. I semi retired at 36 and have seen em all .. They all regret not doing sooner . I saw my dad slowly Die of Dementia at 90 ..Crack on whilst you can is what I see on an almost daily basis . Most people dont actually live that long ,so bare that in mind ,as well as the potential for WW3 and UFO ,s that are coming /here ,Not to mention Covid episode TWO ,lol. .. Lots of variables out there other than $$$$$$$$$$$$

@Lookup2Wakeup 27 күн бұрын

@@adm58So true! I'm 67 & that sums me up pretty well. I have a coffee with various walking & social groups about 3 times a week. I go to Weatherspoons for a 550 calorie breakfast about twice a month. I watch my diet & cycle & walk. Not much else to blow my £2k per month pension on.....😮

@darrenholden7447 27 күн бұрын

@@Lookup2Wakeup £2k/mnth before or after tax? I ask as I’m 51 and want to retire at 57. Collect part of my DB pension at 60 and trying to see how much people live on. I know everyone is different. Wife says I should as I have ailments and enjoy it while I can!

@wl660 27 күн бұрын

@@darrenholden7447Do a few budgets and see how they look. Basic, comfortable, Best Living… Big question. Have you proven to ALWAYS live within your means? If it’s proven you have always lived in debt, take car PCP deals, expensive holidays…then these traits are likely to continue. Old Dog and new tricks….

@leemactavish3104 27 күн бұрын

The problem is most of us leave it too long before thinking of a pension, then you have a mortgage and other bills so saving for a pension is hard.

@F0ssil 27 күн бұрын

Hi James, I recently found your channel off of some other financial channels I watch. I am someone (possibly) quite typical in that I am just realising that although I’ve paid into pensions (workplace and private) for some time I may not have been giving it the attention it deserved and at 58 (this year) need to pull the finger out, it’s good to put figures (even if they are ballpark and dependant on returns) to the amounts needed to sustain (in my case) 20 to 30k a year once retirement comes.

@JamesShack 27 күн бұрын

I’m glad you found the video useful and best of luck for the future!

@paulmckayart3824 25 күн бұрын

Excellent explanation. Thank you!

@mvp_kryptonite 27 күн бұрын

Excellent! Fingers crossed the other half can start to build assets soon too.

@stevecollman2435 27 күн бұрын

Another superb video James, thank you.

@JamesShack 27 күн бұрын

Glad you found it useful!

@King_Law1 26 күн бұрын

Great video, thanks James.

@jwracingteam 27 күн бұрын

Well look at that, it would appear i have enough, cheers James!

@lkyuvsad 27 күн бұрын

This video is absolutely excellent James. I can't believe how clearly you managed to explain what is a very complex topic. Edward Tufte would not be especially disapproving of your charts, I think, and that's really helping.

@Richard-fm1cx 27 күн бұрын

I have Tufte’s book “The visual display of quantitative information” on my bookshelf - not many people quote him 😂😂

@lawLess-fs1qx 26 күн бұрын

Gloriously simple. Well done James. That tool looks like fun. I'd love to know what the spending of pensioners who own their own home is by year. At 65 you need £blah. at 75 , etc. I always imagine I'll spend very Little but “assumption is the mother of all mistakes” .

@markfi123 25 күн бұрын

Brilliant, thank you!

@JohnHoganN8 13 күн бұрын

Great video! Well done! 👍🏻

@rmedh 25 күн бұрын

Thanks for doing this it's very informative. Do you have a model that allows us to work out our own numbers?

@DKNW62 27 күн бұрын

Hi James great video as usual, a spread sheet of the first part would be good. I have a few comments, if you have a cascade of pots the net effect would surely mean you need less, as per your other vids you could dynamically draw down? Re pension, if you lucky your company will add their NI savings, for anyone worried I believe salary sacrifice pension is the best vehicle to get to the big numbers, but important is to check for yourself how you pension is invested. A theme you keep touching on are care home costs which could be relatively biblical, how should one think about this, a bit cliche but it’s a concern a long term frugality might be swallowed up by care fees, what are these scenarios likely to look like?

@Claudia-yd3dd 27 күн бұрын

Great Video, thank you from Germany!

@kraigschess1772 26 күн бұрын

A good addition to something like this is - how much money would you need, and need to be investing per month at 20, 30, 40 years old to reach this. I know how to work this out myself but it’s mind blowing when you see it spelled out - the power of compound growth and how little you need if you start early vs late. I still have colleagues in their 20s who have OPTED OUT of our employer pension!

@pataleno 26 күн бұрын

Time becomes more valuable than money as you get older. So if you’re still Working at 60 and don’t enjoy it. It’s time to make plans.

@danguee1 25 күн бұрын

Don't forget: the government has shown they're capable of messing with or raiding your pension. So far they haven't touched the ISAs - I'm guessing having paid full income tax on it, it's harder to justified scalping it. For that reason, I'm trying to make sure my ISA has close to half of my retirement fund assets in it.

@MattSwain1 26 күн бұрын

Thank you. Retiring at 55 would be a bit of a dream as I’m only a couple of years away but I can at least see that the value of my pension pot which currently feels like way too little isn’t so far away from being enough. Hopefully I can quit before I’m 60 😊

@robkewley 26 күн бұрын

Excellent video. Would love to see a follow up of this based on retiring at 60 as I'm going to need to start saving.

@MikesGlitch 27 күн бұрын

Another excelent video. 😊 7:05 - Care/Assisted living - would be interesting to see how that would impact the plan 🤔

@AidanJeavons 27 күн бұрын

It destroys it which is why it was not included. The reality is that you can only hope you run out of time before you run out of money. Those on the higher end, with 50k per year can just about support one individual requiring care. But if you are a couple, then your significant other has no income for retirement, or worse they also require care and you need to sell off your assets either way. You would require an income of 100k per annum matched with care home inflation fees to avoid this scenario. This is not feasible for many. *To clarify, this is for care home assisted living. For private carers to visit your home it is somewhat more manageable, but it would still require a great amount extra, although not double. It’s made somewhat easier with Disability Allowance etc.

@lemmybongo8611 25 күн бұрын

Only after my dear mother passed away and I acted as executor on her estate did I realise how brilliantly she did as a professional woman and the way she looked after her finances over decades. She could easily have afforded to have retired earlier and avoided doing a couple of jobs she did not enjoy, as well as spent some of her money to make her life easier and more enjoyable. The message here is, if we are going to put all this effort into looking after our future finances we should also make plans on how to enjoy that money when we are older. The goal should be to retire around 55-58 years of age and enjoy our lives, whilst making provisions for our legacy. Be great now and your future you will be grateful!

@russellekins2799 17 күн бұрын

This is really useful, thank you

@gav2302 16 күн бұрын

Love your videos James. So much so that they’ve educated and influenced me to change direction in my career and get into financial planning. Start a new job in financial services in 3 weeks, can’t wait to get going. Thanks for everything

@jasonohare3557 26 күн бұрын

Fab video James, as always! How you cram in so much detailed analysis and advice is admirable…and I thank you very much sir!

@Lovemy911 26 күн бұрын

Another quality video 😊 Its a shame we cant cover every eventuality! As nobody's guaranteed govt pensions now as the age is getting further & further out of reach ...im mid 50s ' not the best health now and to expect to live into my 70s and receive a state pension @70 now is pretty unrealistic. My grandparents & parents never made it to 70 😮 Genetics & luck is needed ! Whilst iv saved €200 k for when im 60plus its a pipe dream for many to reach thus age ! 🙏

@Hasan10-oh7vl 27 күн бұрын

Love it !! Do you need a video editor? I can do a sample video ;)

@LoveLearningInDorset 24 күн бұрын

Thank you James, could you do a similar video wth property assets rather than shares? 😊

@alexm7310 27 күн бұрын

Ooo, this was good! So pleased you considered retiring @60 y as a singleton... am slightly concerned about fees levied on pots when moving to retirement 'drawdown products' (meant generally). Do your calcs take account of these? Thank you so much for these videos 😊❤

@yellowvurt 27 күн бұрын

Great vid. Love Voyant.

@gerry2345 25 күн бұрын

I like this vid. Good insight and interesting.

@doingthingsdifferently 27 күн бұрын

Really useful thank you James

@JamesShack 26 күн бұрын

Very welcome

@Mikcdi 12 күн бұрын

Thanks for this video! Have you considered inflation in your analysis?

@ottonellomattia 25 күн бұрын

Great video!

@Paul-vl2wg 27 күн бұрын

Great video James, thanks

@JamesShack 26 күн бұрын

Glad you enjoyed it

@mkdons22 24 күн бұрын

Fantastic informative video thanks james

@JamesShack 24 күн бұрын

Glad you enjoyed it

@marks7471 27 күн бұрын

I don't think I will ever retire as such, I have 2 businesses and have taken a few months off in the past but being in contact with people and just doing stuff is really rewarding. Gotta keep moving 👍

@christopherjhall 27 күн бұрын

You can still be in contact with ppl and very much have a rewarding life without work. Life, for some people, is so much freer and expansive without the construct of work. Taking regular breaks from work has allowed me to appreciate the opportunities for life. I have a wonderful job, don’t get me wrong, but there is a world out there that needs to be enjoyed.

@pataleno 26 күн бұрын

Same here I’m in a well Paid Easy stress free job but they still have my time for 8 hours a day and I hope to get rid of that at 60 and do what I want to do each day.

@rajmehta6210 26 күн бұрын

Great video James. Can you post the equivalent figures at higher levels of expenditure, eg 100/125k please?

@richcarless7740 24 күн бұрын

That spread sheet it pretty damn good, I had a similar one for calculating how long it would take me to pay off my mortage if overpaid.

@ThomasMcConaghie 25 күн бұрын

James this resource is fantasic. You mentioned thinking for couples in your video but I' wondering if this spreadsheet can show this as well? My wife and I process all our income and expenditure jointly, so jointly planning our needs would be helpful.

@drln1ghthaunter 27 күн бұрын

Nice tool it validates my own assumptions of where I'll end up on a conservative 4% interest (My SIPPS rate is 12.42% so defintly on the conservative side). I know what I'm contributing and timescales, it's the goal which is a little fuzzy. I finangled the target in steps to fit in my plan. £257 for 1 year, £357 for 19yrs then up to £530 for the last 14 once my mortgage is paid off. £380K at 68 seems pretty positive when my take home after tax is only 21k. Looks like I'll end up with a choice between more income then when I was working or retiring earlier. Probably a bit of both.

@christopherjhall 27 күн бұрын

Great analysis, but I would have thought in later life you will be in a position to contribute much large sums and consider retirement much earlier

@drln1ghthaunter 27 күн бұрын

@@christopherjhall It would be nice, unfortunatly I'm not particularly career driven and easily get complacent. My goals have generally been to afford a house & make enough that I don't have to go days without electric or food like I did as a child. It's part of why it's taken 11yrs to get to 26K as I've already got that. Unfortunatly there is also not much in the way of job opportunities locally and my natural skills would have me do well in areas like social care or working with special needs. Areas not particularly known to be a lucritive career path.

@narttamash7863 27 күн бұрын

What tool do you use to work out all these scenarios and backtests? Looks like an online service of some sort?

@FoobsTon 24 күн бұрын

None of this is rocket science, however if you're not financially savvy, it can really appear so. James has a real strength in being able to break it down and explain it simply. The psychology of investment and the ability to sleep at night, which he touches on are super important and these can prevent the "mistakes" he mentions. Good work James.

@JamesShack 24 күн бұрын

Thank you very much for saving so, I appreciate it!

@Haines9032 25 күн бұрын

Thanks James. I wish it was easy to understand how much is required when you've got both DB and AVC pensions - any tips on this? I try to follow Martin Lewis' general rule but it's hard to work out!

@denisedeakins4828 26 күн бұрын

Another great video James :) When I looked at the downloadable tool it has a starting saving target of £800 K, i know you mention a target of a lot less than this, say 300-500K how does someone on a lower income work out their monthly savings needed for this sort of amount? Thank you

@soggymoggytravels 25 күн бұрын

Very useful!

@Yrie27 26 күн бұрын

Great video! Id love to check if I'm on track, but the download didn't work for me.

@user-ng5dq9ot6o Күн бұрын

Hi James. Great video and particularly useful for us as the scenario you use as an example closely reflects our circumstances. What would be really useful is if you could expand on the pot size details for a married couple retiring at 62 with disposable incomes of £30k/£40k/£50k (including state pension). TIA (if you don’t ask etc etc 😊)

@pukkanig1 23 күн бұрын

Found your videos while off work sick the other day. It felt like i was a couple symptoms away from a trip to dignitas, so the latter years of my life was clearly on my mind 🤣. Anyway super videos - really accessible, informative and thought provoking! So thx. I'm 10 years from retirement and going to move from a 33:33:33 stocks:balanced:cautious approach to something more like 80:20 stocks:balanced. Is it worth waiting for the bonds/cautious part of my portfolio to recover from a pretty dismal last 3 years or just bite the bullet and shift the propotions now? (I have a v. good defined benefit safety net in place, so this is regarding a modest extra DC portfolio i've built up worth about 60k).

@medievalfolkdancer 15 күн бұрын

Fantasticnvideo. I So need you to review my position as I'm 50 and really want to retire at 60/62. Would love to have a go at that excel calculator from this video.

@L0000NEY 27 күн бұрын

Could you do a video like this for those of us looking to retire in our mid-late 40's ? as the calculations seem far more risky when there are many years before we can access any pension benefits.

@Popeye147 25 күн бұрын

A great video with a lot of insights. For me there is this challenge of save, save save and you end up dying 3 years into retirement (all too common story) The balance of living a life you want to live NOW enjoying the things you appreciate more NOW is key. Obviously I am not advocating splurging all of your cash and having nothing for when you finish work I just think each case is different. You don't want to have nice cars, foreign holidays and expensive things when you are 75 so therefore don't need a large amount of wealth at that age

@arhodes2866 7 күн бұрын

Thank you for such succinct description. As an NHS employee is there any chance you could do an in-depth look at the old pension they had and new one CARE and how it maybe feasible to reduce it to 65 retirement instead of Gov retirement age? How it maybe possible to boost it. I know a vast amount of people who would be interested as the calculators on the sppa website aren’t always working and the statements are not clear or continued when old portion of pension taken but CARE left in to take later. Many thanks though for all the videos you do. Very much appreciated

@pataleno 26 күн бұрын

Great video James. Always a concern in the future they start means testing state pensions… Punishing the ones who saved for their retirement. 😢

@snubbii9276 27 күн бұрын

I know that ISAs are not as tax efficient but I have been contemplating having an ISA for income top-ups and to delay drawdown. Essentially buffer plus a big excess. ISA just in case I need money before retirement. Seems like a sound plan in my head

@tomra01 27 күн бұрын

Super video. Thank you!

@aconlin 26 күн бұрын

Hi James, the final retirement figure. It’s based on today’s prices. So doesn’t the final figure need to be adjusted for inflation?

@RealStAndrews 26 күн бұрын

Fantastic video James, I wish the youth of today could see it in schools

@mbronti 25 күн бұрын

It would be great if you took a look of the effects on pension pots depended upon where you live e.g. I have a uk pension pot of XXX, but plan to retire in a South Asia country where cost of living is 0.5 or whatever, that of UK...

@harry7890 26 күн бұрын

That spreadsheet isn't downloading for me. I've tried two different browsers too

@EZ1111 25 күн бұрын

Great video tbh this will now be my reference for pensions lol

@robkgilchrist 26 күн бұрын

Great video, but am I doing something wrong as I can't get the 'How Much Do I Need To Save Tool' to download

@BoulderDash24 26 күн бұрын

Hi James. I think it's time for a video on the new lifetime allowance rules. First, there's a limit of £268,275 'lump sum allowance' equal to 25% of the new 'lump sum and death benefit allowance' Now unless you are desperate to pay off a mortgage, most people will not take 25% of their pot at retirement. If you have a £500k pot at retirement, for example, hopefully it will grow over the years and you will be able to take more than £125,000 tax free. So two questions arise. Who is supposed to keep tabs on the actual amount of tax free cash you withdraw? And what will happen if you breach the limit? And a question that I've always had, which may now be moot unless the lifetime allowance is reintroduced by a different government, if your pot continues to grow and looks like it will breach the £1,073,100 limit, at what point should you start to take large amounts out so you don't end up paying huge amounts of tax?

@lynnkerr7071 13 күн бұрын

We have paid into private pension, not huge ones at that, but since we have started to claim our state pension we are taxes to the point where any increase in the state pension is swallowed up in extra income tax.

@uncleskies8163 26 күн бұрын

Hi James, Great video again. I can't seem to get the How much to save tool to either download or send to an email address. Perhaps it's just me. Keep up the good work.

@windemilla 26 күн бұрын

same here

@russdavey1919 26 күн бұрын

Excellent video! I'm curious that after the cash buffer is the assumption that the remaining amount is invested in 100% stocks?

@JamesShack 26 күн бұрын

60% stocks and 40% bonds is the base case, but there is one set of examples where I look at the effect of increasing/decreasing risk.

@alexcannon-microdot 25 күн бұрын

Is it worth considering what the purchasing power of £20-50k would be if you're reaching retirement age in 10-30 years?

@AG-so4gl 27 күн бұрын

Go where your savings work hardest for you. Expenses 30%+ less in SE Asia, great quality of life and private medical care, particularly Thailand, Malaysia.

@jami7772 27 күн бұрын

Agreed. My plan is to go to Malaysia but they've just suspended the MM2H program and are looking at revising the qualifications to apply.

@FlorinVZaharia 27 күн бұрын

That's a bit sad unless U really want to live there. U gonna leave your grandkids behind and move to Uruguay because U didn't save enough to live a decent life in the UK?

@terrybrown3486 26 күн бұрын

Anothet factor is that with state pension and any annuities you cannot run out of money. You may run out of your investments.

@Santoshlv426 26 күн бұрын

The drawdown as a % of capital is on average 5-6%, so it's not far off the 4% rule. I think it re-enforces that the 4% rule is pretty safe & conservative. Spending will definitely decrease as one gets older though. Medical expenditure will increase though.

@elephantandcastle838 22 күн бұрын

A drawdown of 6% is a LOT different than drawing 4%. You would then be taking 50% more from your pot. A 4% drawdown that ended up lasting 25 years, may only last 16.7 years with a 6% drawdown, all other things being equal.

@bobdobalina276 13 күн бұрын

Here's a question I've not seen asked. I'm not a million miles from 55 so starting to think about the tax free 25% draw down. I have an ISA, I have SIPPs all pretty much identical (invested into the same global index funds on platforms with low/zero fees). Is there any benefit in not taking the 25% tax free (or at least 20K chunks) and funnel it into the ISA's? Does the pension wrapper offer anything on static cash (ie not money coming in, or money leaving) that an ISA doesn't? The main downside I see is I'd burn through ISA allowances every year until the 25% is reached.

@katrinapeacock8317 26 күн бұрын

James, I love your videos but being in Australia the conversions and differences in tax laws, pensions and the like make it difficult to apply. If only there was Aussie-James!

@DonaldUrquhart-ds9ir 25 күн бұрын

James, Thanks yet again for the time and trouble that you put into making these videos. I (and, I can see from below, so many others) appreciate it very much. I'd seen a previous version of this, but this betters it (good as the original was). I like the 'inner Chimpanzee' analogy, but fear that mine may be an 'inner Silverback'. It might take a little more controlling in the event of a sustained crash in that case, so the video that this one took me on to (sticking to the plan) was also invaluable. All the very best, and looking forwards to the next 'teach in'!

@David-od4bq 18 күн бұрын

James. How do you buy gold n silver through a SIPP that has not been rehypothecated?

@timburgess1528 26 күн бұрын

thanks James, very informative as usual and much appreciated. You mentioned briefly about the potential very high costs of funding healthcare in later years. I presume that this would have massive and dominant impact on the calculations, is there a reason why you don't take it into account? Many thanks!

@JamesShack 26 күн бұрын

Originally, I thought that there are too many additional assumptions related to end of life care that it would be hard for people to relate to. Length of care? Both going into care? What types of care? Are you happy to sell your home? Where do you live (affects costs a lot)? We have default assumptions for our clients, £80k per year for 5 years before they die. But I think I would have to spend 5 mins justifying those assumptions! However, on reflection I should probably have just showed one scenario and then rolled it back and continued on without it.

@Shorty140291 26 күн бұрын

@@JamesShackyour reasoning is sound. I would have liked one scenario showing the effect of care on the cost but I still loved the video

@paulchilvers5032 26 күн бұрын

Hi James, if you hold a cash buffer of say 2-3 years expenditure , wouldn’t that enable you to avoid draw down during at least some, hopefully the worst, market downturns and hence increase the overall average returns achieved over the life of the retirement?

@JamesShack 26 күн бұрын

I would not go so far as to say that it will be return-enhancing. The goal of the cash buffer is to reduce stress, moderate behaviours, and prevent mistakes rather than to "enhance" returns.

@EcomCarl 19 күн бұрын

It’s important to have a flexible retirement plan that can adapt to changing market conditions and personal circumstances. 📈

@voodo0983 27 күн бұрын

An increasing number of people are now renting in their later years. I don't think think you have covered this base? Excellent presentation btw.

@titolovely8237 26 күн бұрын

This is my plan for early retirement. It’s so much cheaper now to simply rent that you really only need a few hundred thousand in your portfolio to be able to live in perpetuity IF you rent. I know a lot of people believe home ownership is part of the American dream but homes are just unnecessary now if you’re an empty nester.

@pincermovement72 25 күн бұрын

Yes my house will probably be half my pension fund.

@voodo0983 25 күн бұрын

@@titolovely8237 Yes. I like the flexibility and freedom to move post divorce and not owning a large asset, though renting is not particular secure either as you approach retirement in particular in the UK although Europe is probably better.

@misterbeach8826 26 күн бұрын

I wouldn't worry about when to retire. Your goal should be to get as quickly into the stock market as possible. The median US income has grown by x1.62 since 1980, while the US GDP has grown 10x, the same as the S&P 500. You have an extreme disadvantage living from a salary, on average; therefore, do not ask when you can retire but instead, how early can you start investing in ETFs, stocks, and bonds as early as possible to escape the median income trap--in order to have a few million USD left at the age of 65.

@SootheSound 22 күн бұрын

Great in-depth and honest video as usual. Does the 0.5% factor in the Financial Advisors fees, or is it based on the money being in a SIPP or ISA, with fees similar to Hargreaves Lansdown at ~0.45%?

@JamesShack 22 күн бұрын

It assumes fees are related to the investment platform and underlying fund costs. No adviser charges. Hargreaves is one of the more expensive platforms!

@jocar-1735 22 күн бұрын

HL platform fees for holding ETFs and investment trusts are capped at an annual fairly low amount in both SIPP and ISA accounts.