Chris Exley Money Geek

£400k pension…

How long would it last?

First - keep in mind the fact that for most of us - we won’t be looking for a consistent level of income in retirement - it may be more to begin, and less later on.

We might also have other sources like state pensions and buy to let income to think about.

But here’s what people miss:

They forget to factor in INFLATION and TAX

Here I use an inflation adjusted growth rate of 2.5% (5% - 2.5%).

I also add 20% tax to all withdrawals to make the numbers more realistic.

What do you want me to do next?

⚠️ This content is not financial advice and should be used for educational purposes only. We recommend you do your own research and consider taking personal advice before making any financial decisions.

Investing over the long term typically outperforms cash savings, but values can fall as well as rise over time.

Figures are for illustrative purposes only.

Pensions will be part of my estate for OHT from 2027 onwards.

But that doesn’t mean they get passed in my will!

A separate form is required to inform the provider (the trustee) who to send the money to when I s***f it.

Check your nomination of beneficiaries form!

⚠️ This content is not financial advice and should be used for educational purposes only. We recommend you do your own research and consider taking personal advice before making any financial decisions.

This is carry forward.

Not many know about it.

Even fewer actually understand it.

This is my attempt to explain it in 60 seconds!

There’s lots of nuance here - as always do your own research and seek advice if you’re unsure.

⚠️ This content is not financial advice and should be used for educational purposes only. We recommend you do your own research and consider taking personal advice before making any financial decisions.

People are missing this…

Pensions will form part of the estate from 2027.

PS. Note there is currently no IHT between spouses, but there could be on second death.

IHT on pensions seems fair enough.

But under existing rules they’re already taxed when you die over age 75. Whether tax free cash has been taken or not, the whole pot gets taxed as it’s drawn at your beneficiaries marginal rate.

And it’s been confirmed those old rules aren’t going anywhere.

So the tax will stack.

Will this change your behaviour ?

Pensions still remain a fantastic and tax efficient tool to save for retirement.

But do we really need more complexity?

⚠️ This content is not financial advice and should be used for educational purposes only. We recommend you do your own research and consider taking personal advice before making any financial decisions.

Taxation can be complex and individual circumstances vary significantly.

Examples are illustrative only. Circumstances will differ.

All of this being said…

I could achieve much of this in my own accounts too - but for me - I’d rather it be kept separate so I can maximise my own ISA and Pension limits separately.

⚠️ This content is not financial advice and should be used for educational purposes only. We recommend you do your own research and consider taking personal advice before making any financial decisions.

Buy to Let vs ISA…

This isn’t to say B2L cannot work.

It is to say that we’re no longer in a place where any property could function as a profitable buy to let.

Interest rates

Income tax

Capital gains

Maintenance costs

There are all things you don’t get in a stocks ISA.

What’s your preference?

⚠️ This content is not financial advice and should be used for educational purposes only. We recommend you do your own research and consider taking personal advice before making any financial decisions.

Business owners pay less tax…

But it’s not because the tax rates are more favourable.

When you work out the difference between sole trader vs Ltd Co director, the difference is marginal.

But the key benefit is YOU get to choose whether to bring your profits inside the personal tax sphere or;

- Retain it in the business
- Pay into your SIPP (deductible expense)
- Use it to pay for death in service or life insurance
- Allocate salary or dividends to a partner (where appropriate)
- Reinvest in yourself or items that benefit the business
- Invest money in Stocks INSIDE the business
- Save the salary for a year when your tax burden might be lower

Lots of options.

More complexity.

But for me, more options is a good thing.

What do you think?

⚠️ This content is not financial advice and should be used for educational purposes only. We recommend you do your own research and consider taking personal advice before making any financial decisions.

Most people get this one wrong.

⚠️ This content is not financial advice and should be used for educational purposes only. We recommend you do your own research and consider taking personal advice before making any financial decisions.

Tax on ISAs?

Well - sort of.

From April 2027:

- Your total ISA allowance stays at £20k
- But only £12k of that can go into a cash ISA (down from the full £20k)
- The other £8k? Stocks & shares ISA, or you lose it
- Over 65? You’re fine — full £20k cash ISA stays
- And from April 2027, tax on savings interest outside an ISA jumps to 22% / 42% / 47%

But there’s plenty of added complexity around this.

Do you think the governments plan to get people investing is fair?

⚠️ This content is not financial advice and should be used for educational purposes only. We recommend you do your own research and consider taking personal advice before making any financial decisions.

Taxation can be complex and individual circumstances vary significantly.

Now build a plan…

Not towards a number.

Towards taking more photos like this - today and tomorrow.