Are Pensions worth it anymore?

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00:00 Intro
00:52 What is changing at a high level
03:16 This will affect more people than you think
05:03 Changes in more detail
06:00 Are the changes here to stay?
07:27 Pension vs ISA for retirement
11:52 Pension vs ISA for IHT
13:03 DON’T SKIP THIS BIT
14:04 When should I STOP paying into a pension?
17:19 Why retirement planning has got a lot more complicated
18:12 Should I change the way I draw from my pension in retirement?

[JamesShack]

Please let me know your questions! Will these changes affect your approach to pensions?

[steviec]

Having spent most of my working career alongside financial advisers, James’ ability to communicate complex matters clearly & simply really stands out. Great work again.

[Equitybonds]

I passed my advanced diploma this week in regulated financial advice and I have to say your videos are more engaging and educational than 99% of the articles I see from major providers in the UK. Thank you James for helping me on my journey!

[adimit]

Tbh, this is the best video so far out of all the Finance experts online on the ISA vs Pension debate. You have clearly outlined a spectrum on how to determine instead of the usual ‘it depends’ without any models or context. More like this please

[walkjar-qs]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[robertmead]

You're better off spending any money you've got, going on pension credit and taking off the state. I've worked for 40 years and still got ten to go. They take your money if you end up in care. They take your house if the money runs out. This has happened to so many friends of mine. Honestly, spend it while you can enjoy it. Don't let the government screw you over. That's my words of wisdom for the day.

[ojunglisto]

Norway may charge 40% tax, but when you retire, you receive 90% of whatever income you had. You can also get a doctor's appointment the next day...

[vinceh]

Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.

[richsmart]

yes absolutely pensions are worth having. Provided you use them for retirement planning instead of for inheritance tax & estate purposes.

[Radictor]

This is the problem with pensions, the control is with the government, who knows what pensions will be like in 30/40 years time...

[steve]

The 7 year gift tax is actually on a sliding scale which you should point out - after 3 years it is 32% instead of 40%. Then it goes down 8% every year (8% after year 6). My son has bought a freezer just in case!

[richhudsonsmith]

I'm really getting sick of this. People who have been smart enough to save rather than spend are being penalised. It's absolutely ridiculous

[sebastiaanthijn]

Managing Money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times, while orders tend to avoid them. Well, at least my advisor does too.

[SamMaffs]

Great advice, the frustration is that a pension has been bastardized as an IHT wrapper rather than a retirement planning tool.

[augustlion]

Well as a former boss of her's has now revealed, she is not an economist, she worked below him and he was aware her and 3 senior managers were signing off on each other's expenses and just avoided being sacked, she was almost sacked but resigned to save face when it was discovered her many dental/ doctors appointments were actually her Labour council activities. She was was never an economist for the Bank of England and her LinkedIn profile has been amended to cover up her lies.

In business anyone assuming a job based upon a fraudulent CV can be sacked. Which begs the obvious question.

[Hannahbenowitz]

People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.

[YinusaSaheed]

Bullish or bearish, AI stocks will still dominate 2025, even beyond. Why I prefer NVIDIA is that they are better placed to maintain long-term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.

[IMBlakeley]

"Pension providers have terrible customer service"

Ah ha, you have dealt with Mercer too.

[Gtbg]

Great video again. I think one of THE best finance communicators on you tube. On a related topic I’m so glad they did not change the tax free amount you can take out and reduce the tax relief going in. I think with both this government and future the freezing of allowances across the board will be a challenge to future generations.

[eddied]

James - I know you said it took you a while to put this video together, but it shows. There are a number of complex topics/what-if scenarios in this video and you walk us through them with your usual clarity. An excellent video with something here for everyone.