The Meaningful Money Personal Finance Podcast

In this UK personal finance Q&A episode, Pete Matthew and Roger Weeks answer six listener questions covering pensions, retirement planning, investing, and mortgages. You will hear practical guidance on topics like using UFPLS and ISAs for gifting, whether dividend income is a sensible retirement strategy, and what to consider before consolidating multiple pensions into one provider. The episode also tackles planning priorities, including how to sense-check your annual financial review, when it is worth switching to a higher-equity pension fund, and how to balance pension contributions versus ISA funding and mortgage overpayments. If you are looking for clear, jargon-free retirement and wealth-building advice in a UK context, this one is packed with real-world considerations and next-step thinking.

Shownotes: https://meaningfulmoney.tv/QA50 
 
02:24  Question 1
Hello gents,
My wife and I are hopefully about 5 years off retirement starting at 60, and thinking about options for gifting. We are both planning to stay within the basic band, but if plans go well we hope to support our kids while we're still alive with help towards a house deposit or similar. Am wary that a large withdrawal from a DC pot would likely take us into high rate tax. This would be mainly on me as we'd plan to spend my wifes smaller DC pot down during 60-67 to max personal allowance before state pension kicks in.
Is there any downside if I immediately draw UFPLS from my DC up to the top of the basic rate threshold, and putting excess into a cash or S&S ISA? That would then build up tax free and be used to fund family gifts (or perhaps replacing a car). my thinking is - the portion we move to ISA is still effectively part of the retirement portfolio - just held in a different wrapper.
thanks for your priceless information (for education and information only not guidance!) over the years. long may it continue!
cheers, Richard
 
07:15  Question 2
Hello Pete and Rog,
Loving the Podcast having only found it recently.  You're doing great work.
I've bought and read your retirement book, signed-up for an intro call with Pete and am thinking about doing your course.
In the meantime, and I know this is greedy, I have three questions.  I think they'll be interesting to your listeners, though, so here we go...
First, what are your thoughts on funding retirement income completely or mostly from dividends / coupon payments, rather than capital withdrawal?  For me it seems very attractive because I can draw-down the income on a quarterly basis while not touching the capital.  That makes me feel safer from having to sell in a down-market.  I can also expect the capital to grow a bit over time, at least the equity generating dividend element.  That said, I've seen one of the other retirement finance podcasters say that technically it doesn't matter whether you take income or capital.
Second, if I adopt an UFPLS approach to my pension and, rather than take a large tax free sum one-off, I take the 25% of each withdrawal as tax free, how does that work in the future in two respects.  First, can the government later change the rules and say that I can no longer take 25% as tax free?  I assume they can, which would be worrying.  Second, does the lifetime £268k limit for tax free cash still apply cumulatively over-time i.e. can I only continue to take 25% of my withdrawals as tax free up until they cumulatively sum to £268k?  Or, am I allowed to take 25% of each withdrawal, even as the fund might grow in value and then the total of these 25%s over say 10-15 years eventually exceeds £268k?
Third, I'm aware the age at which you can take your pension is changing from 55 to 57.  I will be 55 in March 2027, so can access my pension under current rules.  But I will not be 57 when the change kicks-in in April 2028, so am I going to then lose access to my pension for a number of months until I then turn 57 in Mar 2029?  I've heard someone say that there might be an exception for people who have already accessed their pension.  I've also heard it depends on whether there are certain protections/terms around the individual pension fund.  Any advice on whether this would be true would be very helpful.
Looking forward to hearing your thoughts on any or all of the above.
Best of luck with the pod.
cheers, Steve

14:52  Question 3
Hi Pete & Roger,
Thanks for the advice (go on, name that film) over 2025 and the podcasts.
There is a ton of material on you tube covering why pension consolidation is a good thing. How it simplifies the admin. How it makes it easier to track what you have and how it is performing etc.
Why wouldn't I want to consolidate all my pensions and what could be the disadvantages of consolidation?
Recently I've met with my IFA and for a year now I have been investing heavily into my SIPP. As the IFA he charges for the service he provides and I am happy with that (for now). The charges are low with this provider (Quilter) and it performs well as a medium risk opportunity. My IFA, rightly in my opinion, suggests avoiding keeping my Octopus (previously Virgin) pension as this doesn't offer flexi drawdown and is higher risk than my Quilter SIPP but with only slightly better performance. I have four pensions (SIPP) in total.
Now my IFA would of course benefit from me moving all funds to Quilter as he receives a percentage fee on a larger chunk of funds. So that is a warning sign for me as he cannot really be impartial.
At the moment I can track my pensions online and I do this almost daily, they all have the relatively same performance and together average about 9.6% over the past 12 months. They are all broadly within a single percentage point of each other.
I can see the following arguments to avoid consolidation altogether.
1. Tracking multiple pension funds is not actually hard to do.
2. Maybe when it comes to flexi access draw down it gets a bit more complex to get the tax free elements right to be as tax efficient over the long term but the pension companies track the percentages taken so I cannot see this as a big problem either.
3. Having multiple SIPPS allows me see how they perform against each other. Sometimes one is a little more volatile than the others but in actual fact I'd like to see more volatility on one over the other. Makes things more interesting. Of course that might change in later life so I may choose to draw more heavily on the well performing fund with more risk as I reach later life years.
4. Multiple SIPPS allow me to have funds with different levels of risk associated with the investments, so I might choose one fund to have medium risk and another quite high. 
5. The big one for me though. Why, why, why would anyone trust a single SIPP provider with all their future wealth? No matter how well it is managed today and the regulations which are in place and the FSCS protection etc, I just cannot stomach the risk in a single point of failure. Why?
So the IT platform could collapse making the funds inaccessible either for a short time or for months.
Rogue actors inside or outside the company could arguably sabotage the platform. Yes this is highly unlikely but it can happen. Spreading the risk mitigates this. There is a very real concern.
Poor management of the funds could lead to a serious downturn in the investments whether that be short term or longer term. Now the underlying funds might underperform but if that is your key worry then you'd simply change the SIPP investments.
When I research reviews on the web for anything I look for the pros and cons and decide which opinions seem most sensible to reach a balanced view. However in the case of pension consolidation everyone seems to recommending consolidation, not one article about keeping them separate.
Yippee cay aye (same film) and best regards,
Andrew
 
25:05 Question 4
Hi Pete and Roger,
Love the podcast.
I have just completed my annual review (thanks for the checklist from earlier seasons) and was wondering if you can suggest if there is anything else I should consider or am missing to help position me better financially.
For context I am 37 and married with two children under 5.
Pension - I contribute to my workplace pension which is 4% and the company contributes 8% (their max).
S&S ISA - I invest 5% of take home pay into two vanguard funds monthly.
Children S&S ISA - I invest a small sum monthly into each child's S&S ISA, both vanguard target retirement funds for when they turn 21.
Emergency Fund - I have 4 months expenses in a cash isa.
Life cover - I have a private policy and 8x salary death in service benefit.
Critical illness cover - I have both a private and work policy.
Income protection cover - Again I have both a private and work policy, work policy is limited to 36months and private policy is to age 65.
Mortgage over payments - I overpay the mortgage monthly with aim of reducing LTV and length of term when current fixed rate ends
Debt - I have no major debt
I think I am in a good position, but wanted to sense check in case I am missing something.
Thanks and keep up the good work.
Marc
Annual Review: https://meaningfulmoney.tv/2023/03/01/simplify-your-annual-review/ 

28:22 Question 5
Hello to you both,
I just wanted to say I really enjoy your podcast and your YouTube channel.
My question relates to my Workplace pension. I want to move from the default lifestyled fund into a 100% global equity fund. I also have a SIPP and an ISA that are fully invested in the same global equity fund and I wanted to bring them all into line. I have a salary sacrifice scheme with a 5% employer match and I wanted to take full advantage of that by paying into a better fund. I can't fully transfer without losing the match so I have left it for too long. I am debt free including the mortgage and I have redirected my mortgage payment into my SIPP. My question is, at 47 3/4, is it too late to switch from the default fund? I'd welcome your take on that.
Keep up the good work
Kind regards, Matt
 
31:02  Question 6
Hello Pete and Roger,
Really enjoy your podcast and find your advice really insightful, many thanks for what you do.
My question is about pension planning and specifically about getting the balance right between pension contributions, ISAs and reducing my mortgage.
I'm 46 and have saved from an early working age to build up a total pension pot amount of £510k as of today. I have prioritised my pension over other kinds of investments given the tax related attractiveness of pensions and use salary sacrifice as a way of keeping under £100k income - something important for us as a family in terms of qualifying for child nursery support, plus of course in maintaining my personal allowance.
I find my job quite stressful and would like to be able to retire in 10 years at 57, or at least take on a lower paid (maybe even minimum wage) or part time role at that time for a few years until retiring fully.
My assumption is that to be able to make this a reality it would be wise to build up my ISA, (which as of today totals only £15k), as a tax efficient bridge until nearer state pension age, and to minimise the need to drawdown excessively on my private pension in the early years.
Assuming you concur, my question is would I be best to reduce my pension contributions to enable me to put more in my ISA?  Of course this would mean potentially losing/ reducing my personal allowance.
The other factor in play here is my mortgage which is higher than I'd like at £380k. Ideally I'd like to increase my level of mortgage overpayments significantly in order to try to reduce the balance as much as possible over the next decade whilst working full time but again this will see me going over the £100k income level in order to do so.  I know I could probably clear whatever mortgage is remaining in 10 years from my tax-free pension amount but I'd like to minimise taking the tax free money in order to help the pot compound as much as possible to take me through to old age but also help support our two girls who are currently just 8 and 3 in their early lives.
Your thoughts and advice would be gratefully received.
Many thanks in advance and please do keep up the great work you do!
Kind regards, Lee

In this episode of the Meaningful Money Podcast Q&A, Pete Matthew and Roger Weeks answer six real listener questions on UK personal finance - from inheriting a SIPP (and the under-75 vs over-75 rules), to how inheritance tax could hit a property-heavy estate. They also discuss what to do with a large Employee Stock Purchase Plan (ESPP) holding, whether a longer 35-year mortgage can be a safer option, and the realities of financial planning for UK expats. Finally, they tackle a growing concern for many UK investors - how to protect wealth from increasingly sophisticated scams and impersonation fraud.

Shownotes: https://meaningfulmoney.tv/QA49 


02:04  Question 1
Hello Pete & Rog. Thanks for the wonderful podcast
I will keep it as brief as possible as it means hopefully you can squeeze more content for your listeners.
I am a 35 yr old renting in London with a salary of approximately 35k and would consider buying my own place if I could build up enough of a deposit.
My mum died a long time ago but my dad has just been informed that he has a medical condition which will probably end his life in the next 5 years or so. He is currently 73.
I don't have any siblings and my dad has shared with me the details of his assets which primarily comprise of a SIPP of around 200k (he has taken and spent his 25% tax free amount).
My question may sound a bit morbid but it reflects the reality of life unfortunately. It's about the rules of inheriting this SIPP. I'm not sure I fully understand the 'rules' about if my dad passes away before 75 or after he is 75.
My understanding is that if less than 75 I can just 'cash in' the 200k tax-free and for example use it as a deposit for a house. That seems straightforward. But hopefully he will get well past his 75th, so if that's the case I understand the 200k would be taxed as income, so I would be crazy to take it all out in that way.
So what would be my options in that case?
- Is there any way to take it out of the pension wrapper without having to pay tax to give a bit more flexibility?
- could I just inherit it as a pension and if so, would I still be able to take 25% tax free?
- can I draw down from before I reach pension age e.g. to pay the mortgage or rent (mindful not to go up into the next tax bracket)?
Have I got the rules right and are there any other options I could consider?
Regards, Steve
 
07:08  Question 2
Hi Pete & Roger
Love the content and just discovered your YouTube podcast!
I'm concerned about my wife parents (Mid 70s) inheritance tax liability and was wondering if you had any advice on how to structure the portfolio to reduce it or if it was worth considering a gifting strategy.
Primarily I'm concerned as the recent inclusion of pensions into IHT from 2027 and I'm pretty sure their estate is over 2m and therefore a reduced residence nil rate.
Rough figures are below:
Current house - 1.1m (according to Rightmove - jointly owned)
Own another house 800k (according to Rightmove - jointly owned)
Own a holiday letting business (retirement business) which has three properties circa 1.1m (according to Rightmove - jointly owned)
With this in mind I put their IHT liability at 2m+ without factoring their pensions
Questions
What do you consider the ball park IHT bill to be?
How do you suggest my wife (mid 30s) approach this issue? Or should she just deal with the cards as they lie in the future?
Tony
 
14:05  Question 3
Hi Pete & Roger,
I wanted to start with a thank you for your podcast - specially for acting as the friendly, inclusive and relatable voices of finance. The podcast is a welcome change to the scarier world of finance which many of us sometimes run and hide from!
My question for you is regarding my ESPP. I was employed by a US-based company around 10 years ago. During my time there I was able to sacrifice a percentage of my salary which was put towards the purchase of company shares at a discounted rate. It's a very effective scheme, and although my salary there was modest, I've been able to leave the shares alone which are now worth around £230k.
The predicament I now have is what to do with these shares. I've been happy to let the shares sit and grow, which they have been doing extremely well, though the value of them now has me wondering what my future strategy should be. For reference, the 10 year growth on these shares is around 850%.
As far as I'm aware, I'll need to pay tax on these shares when it comes to selling them as there's no way to transfer them into my stocks & shares ISA or similar. So it's either leave them where they are, or sell some/all of them now and transfer the cash (after tax) into my stocks & shares ISA, SIPP or elsewhere.
I'm 40 and looking to purchase a house next year with my partner - though we don't need these funds for that purchase. I have a stocks & shares ISA, a cash ISA and a SIPP, as well as a modest amount in a LISA and cash savings.
Whilst I don't feel like I have all of my eggs in one basket, I do feel increasingly nervous about the value of the shares which are entirely dependant on the success of one company. That said, the returns to date have been incredible and I wouldn't want to miss out on future growth.
I'd love to know if you have any guidance on this, and if there's any factors that I haven't considered yet.
Thanks again, Ian
 
20:36 Question 4
Hi Guys,
Love your podcasts. You've helped me a lot with understanding my finances and I'd love to ask a question.
My wife and I are 36 and have been back in the UK for 3 years. We are hoping to buy our first property in 2026.
Due to our age, is it okay and safer to do a 35 year mortgage and pay more off monthly to pay the mortgage off quicker? We aren't high earners but hoping to put any extra onto the mortgage principle.
Hope to hear from you.
Kind Regards, Dhiren
 
23:49 Question 5
Dear Pete and Roger
Thanks a lot for all the education and sensible insights you are providing to all
I am an avid listener of your podcasts and  watch your videos regularly.  Now I can see Roger as well.  Both very handsome and knowledgeable. Your discussions are lively and interesting.
I am also a member of the academy from the beginning. Also on Facebook community. Currently working my way through retirement guide.
I am working abroad for nearly 8 years. I was told by a financial planner that he can't advise non UK tax payers as per regulations. Since then you have been my main source of information and guidance.
I am an Ex NHS consultant and now receiving pension. I have a very small SIPP and substantial Investment ISA which I can not contribute to. So my main investment is through GIA. All via Vanguard. Apart from this I have stocks and shares account with a couple of providers which helps me to keep thinking about investment opportunities. I am not a big risk taker and currently doing well with my stocks. I read and listen to a variety of educational materials to help with this
I have 2 questions. Is it possible to get financial planner help for UK citizens while working abroad?
What should I do with my investments before coming back to UK to live, for tax planning and reduce risk of huge tax for selling investments after coming back?
Currently I am in Middle East with zero percent income tax. My pension is also at zero percent under DTAA arrangements.
Sorry for long question. Thanks a lot again for your suuuuuuuuuper work. Continue great job
Kind regards, Sudhakar
Link: Perceptive Planning
https://www.perceptiveplanning.co.uk/world-citizens 

28:37  Question 6
Hi Roger and Pete,
Love the podcast. Thank you for everything. This is about to be a long question, for which I'm not at all sorry.
I've seen articles and videos about the increased sophistication of hacks and scams. Things like stealthily getting access to accounts and for years collecting information that can then be used to impersonate you to socially engineer access to bank accounts. AI plays a part in letting people change how they sound to make impersonating on calls easier than ever.
Going forward, I'm worried that one of the biggest threats to my wealth is not a market crash, but someone getting access to my investments through fraudulently calling support lines and impersonating me, or alternatively getting access to my money through 'traditional' password leaks and viruses.
To this end, I've been overpaying my mortgage as a way of having money locked away in an asset that cannot be liquidated without a solicitor (and hopefully more stringent checks of identity), but I'm going to be mortgage-free in less than 5 years at this rate.  My question is: Am I overblowing the risk here, and what are my options if I want to reduce the my risk from this perspective? I have considered:
- Having multiple S&S ISAs with different providers should mean that only a fragment of my portfolio can be lost through any one hack.
- Buying 'real' estate as an investment seems appealing from a security standpoint, regardless of expected returns, and although recent changes have made BtL less attractive, the old Rothschild saying of "Buy when there's blood in the streets" could mean that now might be a good time to buy. Is there an advantage in having overseas property as a wealth storage mechanism?
- Putting money in my DC pension pot will lock the money away until retirement, but suddenly becomes fair game to foul play once I do.
- Buying an annuity is not as fiscally efficient as drawdown, but is an attractive way of mitigating risk of losing it all to a scam caller. Especially if I'm old and doddery and more likely to fall for a scam.
- Buying physical gold (and a safe or a Swiss safety deposit box) doesn't appeal to me, but I have considered it.
Please assume that I'm being sensible with passwords and 2FA. My question isn't about basic IT security practices, but which of these decisions you think might be a good/bad decision and whether there's anything I haven't considered.
Thank you, Alex
Link: Cal Newport - https://calnewport.com/

It's another Q&A show where Roger and Pete answer YOUR questions about such mighty subjects as bridging the gap from retirement to state pension, CGT for non-taxpayers and much more besides!

Shownotes: https://meaningfulmoney.tv/QA48 

02:18  Question 1
Hello Pete and Roger, wonderful podcast and I'll try and acceed to your short question desire. And I'll try not to use the word should.
I am 52 and my wife and I would like to retire at 60. I have a DB pension that should pay me £20k per year from 65.  I would like to live off £50k per year and currently have £220k in a DC pension. That will hopefully get to £500k by age of 60. Equally I am hoping to have £100k in a S&S ISA and hoping to have the first year of retirement spending in cash.
 
My question is around my bridging requirements before my DB pension and state pensions kick in (my wife is 46).
 
Am I better off pulling 25% of DC tax free at the age of 60 and putting that into ISA's  or is it better to just pull pension money per year with and ongoing 25% tax free Allowance and using the smaller ISA amount to minimise tax.
Just interested in your thoughts :-)
Thanks and please keep up the great work.
Kind regards, Adrian

06:38  Question 2
Hi Pete & Roger
A few months ago a friend recommended your podcast and I've been devouring it ever since! Having worked in Compensation & Benefits for the past 15 years, and spending much of my time these days in the design and operation of pension plans, I thought I had a pretty good grasp on such things. But I've already learned a few tips and tricks to help as I plan my retirement, so huge thanks to you both!
My question for you is about CGT liabilities when one is a non-tax payer. My son is in the fortunate position of having a healthy savings pot in a GIA, thanks to gifts/inheritances from grandparents over the years, which each year he sweeps into his LISA and stocks and shares ISA up to the £20k limit. The return has been really good this year and he is likely to realise a gain in excess of the £3k limit next April when doing the sweep.
As he is still at university and only earning a few pounds here and there as a freelance musician, his earnings are well below the Personal Allowance. My Googling suggests that he would therefore not have to pay any CGT if the gain was above £3k next April.
Is that correct?
Many thanks in advance and keep up the good work!
Kind regards, Marion

10:03  Question 3
Hi Pete and Roger,
I am 56 and have been paying closer attention to my Pensions for the last 12 months. This is with a view to making an informed decision about my retirement plans at 60.
Pete's videos and the podcast have been a great help.
I am aiming for the Retirement Living Standards 'comfortable' figure for a single person because a) why not?, b) I am pretty sure I will be able to afford it, and c) I have estimated my needs and that more than covers it.
I have a spreadsheet which models everything for me.
I have 2 questions. A quarter of my pension will come from a DB which starts at 65. A quarter from the state from 67. The rest from my DC pot which I expect to be at least £600,000 by 60. The bridge from 60-65 comes from other assets. Any thoughts on the equity/bond split for my DC pot given that 50% of my pension is secure? 60:40 feels too bond heavy to me, I was thinking 80:20.
And, following your 'not advice' I have modelled what I know now, inflation at 3.6%. I experimented by dropping inflation by 1.0%. I was amazed to see that at 3.6% my pot runs down but not out at age 100. At 2.6% it keeps accumulating and never turns down. I have used 8.25% for growth but made no allowance for tax free cash, UFPLS etc. It just shows the pernicious impact of inflation. Does that feel about right to you.
Thanks, Mike

18:31 Question 4
Hi Chaps
A thought just occurred to me and I wondered whether you've covered this already....
Will v Pension Expression of Wishes - which one wins in that battle if there's a conflict (from April 2027)? I've just noticed that my wife's EOW for her pension is different to that in her will, and would therefore be a problem from April 2027?
Cheers, John
 
21:34 Question 5
Hi Gentlemen (Pension Gurus)
My 18 year old children are setting out in the wonderful world of work and (with my "encouragement") are squirrelling away 10-12.5% of their salary into pensions (with their employers contributing 4 and 12.5% respectively). So one ok and one really good.
Q: Their workplace pensions are with Aviva and L&G respectively and at the moment they are in the "default" scheme. As default pensions are a "one size fits all" I don't think that it's necessarily the best for my children with at least 35 years of investing left. Plus I don't like the idea of 10% being gambled on start ups. I'd like to come out of the default scheme but am not sure what to invest in i.e. if I DIY what % global index? global bonds what %? multi asset and if so what %? Or something simple like life strategy etc? What would your guidance be to an 18 year old on what to invest in their pension?
Many thanks, London Mum

27:48  Question 6
Hi both, I am wondering how to approach retirement.
I am 32 years of age and I have a DB pension with work. I am single with 18 years left on my mortgage. No kids.
I have been splitting my saving contributions between workplace pension which goes out before I get my pay, cash ISA, S&S ISA and Lifetime ISA. With the latest budget I am conscious of the constant messing of the pensions and ISA's, mainly the lifetime ISA as they are potentially getting rid of it.
Do I just carry on with the contributions as is? Will the lifetime ISA still be ok to contribute to for retirement planning?
Thanks, Lisa

Time for another Q&A episode where Roger & Pete answer questions on retirement planning, passing assets to children. SIPP vs ISA and much more!

Shownotes: https://meaningfulmoney.tv/QA47 


01:42  Question 1
Hi Pete, Roger, and Nick,
Thank you for the podcast - I've been listening for a while but fell behind and just binged about 15 Q&A episodes over the last fortnight! There's nothing like listening to the podcast to get me fired up about my finances!
I have a question about the upcoming change to minimum retirement age, and a question about how to use my SIPP versus S&S ISA post-55/57.
I was born in February 1972 and so by my reckoning should be ok to access my SIPP at 55. However, I heard somewhere that access could be removed at the date the law changes, because I wouldn't be 57 by that date.
Can you shed any light please? It doesn't make sense to me to grant access then take it away.
The reason I'm asking is because I'm thinking that in the next year I should favour putting money into my SIPP for the tax relief instead of into my S&S ISA, since I can access it within a short time anyway if I really needed to.
Once I'm 55, does it still make sense to put money in the ISA at all, given the SIPP will continue to have tax relief so long as I'm working?
All the best and looking forward to the videos coming out!
Chris

07:04  Question 2
Hi Pete & Rodger,
My wife & I are both aged 55 & I plan to retire aged 60 possibly a little earlier my wife isn't sure exactly when she will stop at the moment.
I currently have a work place Scottish Widows default pension lifestyle turned off £225,000 I pay in 31%, company pays in 4%, salary sacrifice I then occasionally move funds to my 100% equities SIPP low cost global index fund £442000.
My wife has a small DB pension and 45,000 in a SIPP again all in equities. My plan is to retire at 60ish on the SW pension to bridge the gap to state pension age 67. Leaving the SIPPS invested in equities both in low cost global index funds. Possibly adding some bonds a few years out from state pension age. Currently 20k emergency fund cash isa and my liquid assets whisky collection.
Do you feel I could improve my plan or is it reasonably sound?
Kind regards, Lee.
 
12:48  Question 3
Hi Pete & Roger,
I have a deferred DB pension which in 2018 (when it closed) I was told my annual pension at age 62 would be £18270.
The pension is capped at CPI or 2.5% annually, whichever is lower. As such it is getting deflated by high inflation. As of today it's £21840. (With CPI it would be £23830 or even £26050 with RPI). I have a decent DC scheme to top it up but what can I do mitigate this decline with transfer out values currently quite low?
Thanks for your advice.
Richard
 
18:08 Question 4
Hello Pete and Roger,
Firstly, thank you for your brilliant podcast - it really is absolutely fantastic. Since discovering it early in 2024, I've listened to almost every show! I love the way you both make complicated concepts easy to understand and often have me chuckling along at the same time!
I have a question to you both about inheritance tax and a potential way to reduce, or even eliminate, its effects. I don't believe you have covered this particular strategy, so I'm very interested to hear your thoughts. Here's what I am thinking.
My wife and I are both 43 and have two lovely children aged 7 and 9. We both work full-time in well-paid jobs and save a good amount into our pensions and ISAs, whilst also ensuring we 'live for today' by going on regular holidays and spending as much time as possible with the children (whilst they still like spending time with us!). Our rough combined financial position is as follows:
- £1m in company DC pensions, contributing at a rate of about £85k gross per year
- £350k in stocks & shares ISAs, contributing at a rate of £40k per year
- For each child – £40k in Junior SIPP contributing at a rate of £3600 gross per year, and £10k in Junior ISA with no significant annual contributions
- A house that is worth about £700k with £400k still to pay on the mortgage (remaining term 15 years)
I am aware that it's very early to think about inheritance tax, and I know that rules in the future will very likely change. However, it's very conceivable to me that our children will incur a very significant IHT bill when we both shuffle off (to use Pete's phrase!). My "solution" to this is as follows. When our children reach the age of 18, rather than paying £40k per year in our ISAs, we will pay it directly into their ISAs. We will fund this either through earnings (I still love my job and envisage working well into my 60s), and/or from one or both of our pensions. When we are retired, we plan to take regular payments from our pensions up to point where we would start paying higher rate tax; this will hopefully allow us to live comfortably whilst also contributing to our children's ISAs. Any shortfall will be covered by our own ISAs.
We will give this money to our children on the basis that it is still our money if we ever need it (e.g., care homes, massive holiday, Lamborghinis, etc). In other words, we will tell them that we will continue paying them £20k a year each provided that they do not touch it and have it available for us if we ever need it. With a bit of luck, we will never need it, and both our children will ultimately receive a substantial sum of 'inheritance' without paying any IHT.
I appreciate there are some risks associated with this strategy. The two that I can think of are as follows. Firstly, there's a risk that we fall out with our children and lose control of the money. Secondly, if one our children marries, then divorces, then half of the money we've given them may disappear to someone else. This is definitely a concern. However, provided we are both comfortable with these risks, do you think this is a sensible method of transferring wealth to our children, and can you think of anything other considerations we need to think about? I'm probably missing something really important so it'd be great to hear your thoughts!
Thanks again for your amazing podcast – I really do love tuning in every week!
Thanks, Martin

28:19 Question 5
Hello gents,
My question is this : if someone is looking to retire pre-state pension, and bridging that gap, what are the primary options available? 
I've been looking at for example - fixed term annuity if rates are good; bond ladder (feel a bit overwhelmed on this); money market fund; bung it in a cash savings account.
I'm assuming I want minimum volatility - is that the right approach to take?
Richard.
32:18  Question 6
Hi Pete, Roger and Nick
I have become an avid listener in the last three months, having just taken Voluntary Redundancy at age 63. I have benefitted hugely from your expertise and listenable style. Many thanks.
I'm imagining that if you include this question in your podcast you might mention a tax tail wagging the dog. However, I don't want my dog to miss out on performing tax tricks.
My question concerns whether I can take taxable income from my SIPP whilst leaving my tax-free lump sum untouched. I would then like to take the tax free lump sum at a future date to fund a home relocation. Is this possible? 
The background is as follows:
My DB (£40k) pension will kick-in at 65 (18 months to go) when I will also take a lump sum which I will place into my and my wife's ISAs. I have to do this at 65 due to scheme rules. So in the meantime we're living on my £100k redundancy pay which is sizeable enough to also fill our ISA allowances for 25/26 financial year. I will avoid higher rate income tax on this VR payment via a SIPP contribution. This means that our current and future 2 financial years ISA contributions will be full and I will also have a SIPP bumped up to £250k. However, it will also mean most of my VR pay will then be in SIPP and ISAs leaving us short on spendable income next year!
But next financial year, being un-salaried, I will have the opportunity to take £50270 from my SIPP whilst limiting my income tax to 20%. This will then fill next years income gap. (Once I start receiving my DB pension I will find it harder to get the remaining SIPP funds out without paying 40% income tax as the state pension plus DB will then take me over £50270). I don't want the tax-free lump sum next year as I don't have a need for it until age 65 when we plan to relocate and I can't put it in ISAs because I've already filled them.
So can I start taking taxable income but leave the tax-free lump sum in the SIPP where it currently performs the function of an ISA (ie tax-free growth).
Alternatively, am I just being a bit silly and making life overly complicated? Your wise observations will be eagerly received.
I have done my own cash-flow modelling in detail and this is just a simplified summary of the main facts. Once I am in the new routine post-65 then it'll become a lot easier, but these few steps in the dance over the next couple of years require a great deal of thought.
Kind regards, Tom

In this Meaningful Money Q&A episode (QA46), Pete Matthew and Roger Weeks answer six listener questions on the financial decisions many UK households are wrestling with right now. We cover bridging the gap to the State Pension with fixed-term annuities, strategies for staying under £100,000 adjusted net income (and avoiding the 60% tax trap), and how LGPS "CARE" pensions work including whether salary sacrifice can reduce student loan repayments. There's also practical guidance for self-employed listeners facing a tough year and needing to cut costs, plus how to think about funding private school fees without derailing long-term plans. Finally, we discuss how to decide whether to take the maximum tax-free lump sum from a defined benefit pension, including the trade-offs and how to model the impact.

Shownotes: https://meaningfulmoney.tv/QA46 

02:18  Question 1
Hi Pete & Roger,
I am a long-time fan of your podcasts, and I often sneak off during the day for some peaceful R&R and listen to your latest release or even go back on old shows.
My wife and I are in the fortunate position that we have both retired but still have a number of years before the state pension will commence (6 years / 2 years).
Our long-term plan was to build up our private pensions so that we would have a comfortable retirement but also be able to leave our two children a reasonable inheritance which has meant we have been reluctant to dip into our DC pensions too early.
With the proposed changes to IHT bringing in the unused pension pots on 2nd death into the estate and on current projection we have in excess of £1m in DC pensions which unfortunately are heavily weighted in my favour to 80/20 and we both have a DB scheme each (circa 5K) which have been activated.
My questions relate to fixed term annuity.
To bridge the gap between retirement and receiving the state pension for my wife circa 6 years, I was considering looking at one of these to cover sufficient income to take her up to the personal tax allowance limit bearing in mind the annual DB income.
My dilemma is where or how best to fund this.
Can we or do we use our personal savings?
Do we use my wife's DC pension in part?
Can I use my own DC pension, but any withdrawal would be subject to 20% tax rate so not a preference even if allowed?
As part of my look into these fixed term annuities, there also seems to be an option to have guaranteed cash return at the end of term. 
Is there any sense in considering this as it would require a bigger investment or withdrawal? 
Would this cash also be tax free or would it be income and added to your existing income stream?
It would seem to me that if I wanted to reduce the pension pot differential but ensuring the tax payable was only 20%, then I could either max my withdrawal requirement annually or consider the annuity route but this could be complicated with my state pension commencing 2027?
Should I be hung up on the pension pot differential values between us and does the IHT rule of the couple's tax-free limit being £650,000 nil rate ignore where the money originates. 
This pension pot differential must be quite common, do you have any other comment or suggestions that would be helpful.
I, like many of your listeners enjoy your banter and how you impart knowledge to the wider audience for their better good – a big thank you for this.
Best Regards
Brett.
Meaningful Academy Retirement Planning

11:04  Question 2
Hi Pete & Roger, I'm a big fan of the podcast — thanks for all the clear and practical advice you share each week.
My base salary is about £76k, but with shift allowance and a car allowance my total package is closer to £90k. On top of that, I can earn overtime (which is unpredictable) and I also get a discretionary bonus of up to 20% of base salary.
The challenge is that we don't find out the actual bonus figure until the end of March, but if we want to waive it into pension we have to decide in advance — so it's guesswork. Without any planning, the bonus can push my adjusted net income over £100k, which means I start to lose my personal allowance and fall into the so‑called "60% tax trap" between £100k and £125k.
At the moment, I already have several salary sacrifices in place: – Pension, Holiday purchase, Share Incentive Plan (SIP).
I'm now considering adding an electric vehicle through salary sacrifice, which would reduce my taxable pay by about £10.5k a year. That would keep my adjusted net income below £100k, but it obviously reduces my monthly take‑home.
I'm 29, so I don't mind putting a bit extra into my pension for the long term, but I don't want to over‑commit too early and lose too much cash flow now. In the next year or so, my wife and I are also planning to have children — which adds another layer, because if my income goes over £100k we'd also lose access to childcare perks.
I know there are worse problems to have, but I'd really like to maximise my take‑home pay without losing benefits and while staying as tax‑efficient as possible. So my question is: how should someone in my position — with variable overtime, an uncertain bonus, existing salary sacrifices, and family planning on the horizon — think about the £100k threshold, the 60% tax trap, and the personal allowance taper? And more broadly, how should PAYE employees balance lower monthly net pay against the tax efficiency, taper protection, and childcare benefit eligibility that salary sacrifice schemes can provide?
Many thanks. Lewis.

19:48  Question 3
Hi Pete and Rog
I'm 28 and my fiancé is 26 so we're at the early stages of building our empire. The knowledge and insight I've picked up from listening to you over the past 12 months has been a massive help, so thank you!
My financial situation is fairly run of the mill: a  Salary Sacrifice DB pension with a 6% employer match, early days Stocks & Shares ISA, emergency fund etc.
However my Fiancé works for our local council and has a DC pension titled "CARE". From what I can understand, this means every year she works, she builds up an amount, that yearly amount tracks inflation up to retirement, then at retirement all those revalued yearly amounts are added together to give her a guaranteed annual income for life.
To my question! Firstly, is my understanding correct, or is there anything I'm missing? And secondly, is there a way of playing with her percentage pension contribution to lower the amount of student loan she has to pay back?
Bonus question: I've just finished Q&A Ep31 and caught wind Pete had a beer - what's your tipple of choice?
Always thankful for each episode and video you provide!
Thanks, Tom
 
24:23 Question 4
Hi Pete and Rog
Long time Facebook group, podcast and you tube fan, asking a question that I haven't heard answered yet.
I am self employed, and have been for 12 years now. 2025 has been an unexpectedly difficult one in my industry with corporate customers cancelling projects and budget cuts, and individual clients feeling uncertainty.
How can I make hard decisions about cutting back on my business and personal expenses, whilst also staying as positive as possible about the future?
My turnover is down about 30%, with a knock on effect on my income. I've stopped investing in my pension as the business isn't making enough profit to do so, and am now looking at cutting back on business expenses like the subcontractors I book to work with me and marketing (which I've held off doing hoping income will recover).
Meanwhile I took on many personal expenses that feel very hard to cancel like private health cover for my family, income protection insurance, gym membership, kids sports clubs and their  orthodontist treatments - all totalling £6-800 pounds per month. I'm not sure where to start!
Thanks for considering my question.
Best Wishes, Lara
 
31:40 Question 5
Dear Pete and Roger,
Loving your podcast. I can honestly say listening to it has transformed my relationship with money and investing. My husband used to do all the money management alone and seems thrilled I've finally shown an interest...
Short version:
- She 39, he 44
- Her - late starter due to Uni and maternity - now profits of £60pa self emp
- He has £50k pa accrued in DB scheme plus AVCs - maxing contributions
- He sacrifices to stay below £100k
- ISAs - they don't say how much
As the children are approaching secondary age and with some SEND issues in the mix we are looking at all the options including fee-paying independent schools. Luckily with the age gaps we have we will only be paying for two kids at any one time and grandparents are stepping in for eldest. This is costly, but I think doable for us as we're quite frugal people anyway. I'm now working out how best to fund this. If we reduce our pension contributions we will lose huge amounts to tax and student loan deductions (in my case) - 62%/47% (him) and 51% (me) will be deducted and we'll lose the childcare funding for our toddler which will be a massive blow.
Would it be mad/bad to release some equity from the house, enjoy this money now and pay this off with a pension lump sum when we can access it?
I feel that it would be absolutely mad to retire with far more than we need, whilst our children missed out but also mad to miss out on the tax relief.
I'm really interested in your thoughts and if there are other ideas? We have just a few years to prepare and ideally I'd like some flex or contingency in any plan. Could an offset mortgage be useful here? I could go full time but I don't want to miss out on raising the kids so this would be the last resort. It just feels like a cash flow issue that needs some planning for. HELP!
Thank you for reading, fingers crossed I've got all the vernacular right and haven't caused any confusion.
Take care and best wishes, Annie
 
36:58  Question 6
Hi Nick…Roger…and the other guy! 
I'm an avid new listener having read and loved Pete's retirement book and binged on your podcasts. I'm loving what you do and how you do it, and have recommended you widely. 
My question relates to how I judge the amount of tax free lump sum to take from a DB scheme. It feels wrong to convert inflation-protected DB pension into a lump sum, but I'm thinking of taking the maximum and wonder if I'm being foolish.
I could take my £40k DB in 18 months or could reduce this to £26k for £190k lump sum with a commutation factor of 14.
The spouses pension is maintained at 50% of the unreduced pension (ie £20k) even if I take a lump sum. Nice!
My wife will also have a £6k DB at same retirement date. We will both receive max state pensions 2 years later. We also have SIPPS and some ISAs and I am confident that these non-DB funds will see us through to state pension age with good margin.
My budget shows we will need up to £60k PA spend for very comfortable retirement. £40k PA to cover basics. If I didn't take a lump sum then we have £40k (DB) + £6k (wife DB) + £24k (SP) = £70k income. This works.
But as I say, I actually think I should take a max £190k lump sum…
This would mean £26k (DB) + £6k (wife DB) + £24k (SP) = £56k total index linked, which works out at £49k after tax.  The additional £11k PA will be easy to provide from the  invested lump sum.
But the real reason to take the max lump sum is to manage the risk of me being first death. If/when that happens then my wife has £20k (spouse DB)+ £6k (her DB) + £12k (SP) = £38k index-linked income, or £33k after tax. I think she'll need to find £15-£20k PA from the invested lump sum to stay comfortable. This feels more borderline, especially as she has little natural affinity for investing and may be better buying an annuity. 
It seems to me that I would be wise to take the full lump sum to best provide for my wife should I die first (statistically the most likely). This matters a lot to me.
Is this reasonable thinking? Or is there a way of judging an in-between lump sum?
With kind regards, Tim