Martin Lewis Busts Pension Myths With His Money Masterclass | This Morning

It’s one of the biggest battlegrounds of the upcoming election, but pensions are a much confused topic. With so many different types, which one should you opt for? And is a pension pot really essential? Our money man Martin Lewis is live in the studio to take it back to basics, with his pension masterclass.

Broadcast on 18/06/2024

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[senny]

Trouble is the tax threshold being kept at £12, 570 so once’s the state pension is factored in most will still be paying tax even on a small pension 😡

[jabberwockytdi]

The biggest thing no one is talking about is how much you really need to save and how poor most modern workplace pension schemes are compared to old DB schemes. Pay attention what % your employer is putting in and if they will match your payments, DON'T JUST PAY THE DEFAULT MINIMUM IT'S NOT ENOUGH, NOT NEAR . If you don't put in more than the minimum you will be worse off then your parents come retirement.

[imohimoh]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[LilianScott-dynz]

Pension schemes often fall short of providing adequate retirement income, leaving many retirees with insufficient funds to maintain their desired standard of living, due to factors such as low contribution rates, poor investment returns, and increasing life expectancy.

[bigbangerz]

I like Martin he talks sense and truth

[teresaearl]

Being frugal means, having choices in life and being able to retire early.❤

[OneAndOnlyMe]

Remember though with a pension you can't retire before age 55. If you want to retire before age 55, then also save into an ISA (invest in index funds). That way you can use the ISA to retire before 55, if you want to.

[franknash]

I started a pension at age 28 and worked until I was 69. It was the best financial decision that I ever made. I took 25% tax free when I retired. The pension fund goes tax free to dependents if you die before age 75 and is tax free until drawn from if you die older than 75. It's no good saving unless you save over the long term.

[br]

Pensions are so complex. From someone who has worked in finance for 16 years, I had to concentrate to understand parts of this.

[garybarnes]

Love a workplace pension. 34 and 70k in mine already. Compound interest is your friend

[fkwa]

Made me hungry, I fancy a piece of Swiss roll now

[tangoterrier]

One inaccuracy here is that if you take the jam first sponge late option you will not be a non taxpayer if you draw your state pension because that will use up most of your personal allowance. Probably the best you can achieve is paying tax at only basic rate.

[markwoodward]

Its an unfair anomaly that 40% tax payers i.e richer people benefit more then 20% tax payers who need it more, it should be more even.

[ivanglossop]

I paid in from 16 years old with the NCB .until 30 and Paid in to DCC for 24 years. Retired at 54 best thing I ever did .

[MEF]

A lot of people with family single earner cannot afford £100 per month😊

[boballan]

Good assessment, the bit you missed out is you’re not in control and THEY keep changing the rules. I’m out 100%. I started with a final salary, then it was changed to a money purchase, then it was taxable at draw down, then when I was 49 they changed it 55 before you could cash it in. Beware kids, it’s going to get worse🤨

[TazBo-wdig]

So you put your money in a pension. The government use the interest on it, then tax you for taking it out again.

[curiousinterests]

The vast amount of Workplace Pension money can be used by the next Labour Government to finish Big Government projects like HS2. They can give it to the Water companies to sort out the sewage problems. One advantage of Pension Schemes is you are stopped from taking it out allowing Governments to re-allocate it's use. Fortunately for the rich who keep their money off-shore they won't suffer the pain.

[terasci]

It is not a benifit, I paid all my life into my uk pension! 15 to 66!

[EverydayLife]

Thank-you that is the best ever explanation I've ever heard (swiss roll). I'm lucky in that I'm in a final salary scheme, but even we can now take some of the tax free sum once we're 55, but continue to work at less than 4 days / week? - I think!