Make Money Fast Blog

Questions Asked

Question 1
Hi guys,

Financial infrastructure and policy in the UK is built around to support (and likely encourage/enforce) the “standard” life of consistently working for 40 years and then stopping altogether. State and private pensions accessible around age 60, Lifetime ISAS, compounding growth of stocks etc.

For various reasons, my wife and I (both 32) don’t want to do this. We are in the fortunate position where we can take months or years off at a time and plan to do this several times throughout our lives. We know this means our earning potential and growth will be lower and that we may not end up with as large a pension as we could have. But we may also end up having some sort of income until we’re much older.

Question: what if anything can people do with today’s accounts/tax advantages/schemes to enable this type of lifestyle?

Hypothetical question: what type of infrastructure could the government introduce to enable this? How about a “pension” you can take at any time up to some cap per year and only for X years in a row? Given fewer jobs now require physical use of our bodies (and hence 60 may no longer be a necessary stopping point), could we see more people “working” off and on until 70 or 80?

Tom
Question 2
Hi Pete and Roger

First of all, thank you for the valuable conversations you bring to listeners.

I’m a 32-year-old with a strong interest in personal finance and investing, and I would describe myself as financially literate and proactive in managing my own money.

I currently feel I’ve been underestimating my potential and would like to pivot into financial services. I’m considering self-funding qualifications such as the LP2 (Financial Services – General Route) as a starting point, followed by the RQF Level 4 Diploma in Financial Planning.

Do you think starting this pathway at 32 is realistic, or have I left it too late to successfully transition into the industry?

Thanks,

Darren. G
Question 3
Hello Pete and Roger,

Firstly, I very much enjoy listening to your podcast whilst doing my weekly walks. I currently live in Australia and will be returning to the UK in 6 months to live near my family and will be turning 55 at the same time.

My question is:

I have a Defined Contribution pension, valued at 70K with a GAR. I am legally required to get IFA before I can drawdown, UFPLS, lump sum etc. There appears to be an exception to this mandatory requirement if I take an annuity. Is this correct? If it is, would this also apply to a fixed term annuity?

Secondly, what options do I have to access my pension if no financial advisor is keen to take me on as a client and sign the ‘advice taken' form that is required by my pension provider. My provider (Royal London) has said that the advice doesn't have to be positive or negative to what I want to do, I just have to show that I at least went through the procedure.

Thanks for your help.

Regards

Brett
Question 4
Dear Pete and Rog,

Thank you so much for the wealth of wisdom you share with us all – it has helped my family towards a more secure and planned future. I'm not an expert but as the future recipient of a few small DB pensions I have a question.

You often infer Defined Benefit pensions are “solid gold”, implying they should be preserved at all costs. I want to challenge your strong preference to avoid taking the 25% tax free cash (Pension Commencement Lump Sum (PCLS)).

Isn't it “dangerous” to not clarify the commutation rate more explicitly? On one hand, with a poor commutation rate isn't the member effectively “selling” inflation-linked, guaranteed income far too cheaply?

On the other, with an attractive commutation, by taking the 25% tax-free cash “off the table,” a member can:

1. Eliminate mortality risk: If they die early, that cash stays with the family; the DB income disappears.
2. Manage Tax Drag: Using the PCLS to bridge to state pension age can keep a retiree in the basic rate band rather than being pushed into higher rates by a full DB payout.
3. Seek Outperformance: While DB is index-linked, a well-allocated ISA can historically outperform inflation over the long term.

Why do you treat the PCLS as a “loss” of income rather than a strategic “de-risking” of the pension asset?

Thanks for clarifying – because I think I must be missing something.

Gareth
Question 5
Hi Pete and Roger,

I started listening to the podcast when I began Couch to 5K, and it’s been really helpful. It also makes me feel quite virtuous, like I’m improving both my health and finances at the same time!

I’d value your thoughts on managing money for a child who is approaching financial independence.

I’m the trustee for my 16-year-old daughter, who inherited directly from a relative. She has £140k in total, with 42% in cash savings, 46% in investments (mainly low cost global tracker) and 12% in a junior SIPP (also in global trackers). I'm moving as much as possible into ISA wrappers annually. I don’t currently plan to add further to the SIPP.

She is aware that there is a “good amount” of money saved for her but not actual figures yet and it is referred to as money for a house deposit. I plan to start involving her more directly in managing it from age 17, although we already talk regularly about money and financial habits.

She's academic and likely to go to university although also considering degree apprenticeships. She wants a high paying career but has no idea what career yet!

A few things I’d really value your perspective on:

How should I think about asset allocation? I'm not risk averse and feel like there's too much in cash but mindful that she will be in control in 2 years and may want to use some of the money in the short term, e.g. for university, car, travelling etc.

Would you lean towards encouraging her to fund university costs rather than taking out a student loan if she goes, given that under the new plan around 80% are expected to repay their loans in full? At least there would be less available to fritter away or spend on a red Lamborghini!

Or keep it invested and position it more clearly as a future house deposit?

And finally I have an 11-year-old in the same position. Given the longer time horizon, would you do anything different now in terms of structure, investment approach, or how and when to involve them?

Thanks so much — I’d really appreciate your thoughts.

Beth
Question 6
Hi both, hope you're well. I am 28 , working full time in the NHS. My partner and I bought our first home just before Christmas.

I have an emergency fund in an easy access account as well as putting 10% of my salary into a S&S ISA each month which I plan to use to bridge the gap between retirement and access to my NHS Pension. I also recently moved into the 40% tax bracket and so opened a SIPP which I put another 5% of my salary into each month. Any other savings go into high yield interest accounts/ISAs.
I just wanted to ask, is there anything else I should be doing with my money or is it simply a case of keep at it now?

Thanks a lot, Joe

Send Us Your Listener Question

We’re going to spin out the listener questions into a separate Q&A show which we’ll drop into the feed every 2-3 weeks or so. These will be in addition to the main feed, most likely, but they’re easier for us to produce because they require less writing! Send your questions to hello@meaningfulmoney.tv Subject line: Podcast Question