Pensions – Looking For A Better Income

CASH PLEASE


You can have a maximum of 25% of the value of your pension funds (This refers to personal pension; the rules are different for a Final Salary Scheme where the benefit is based on the salary and years of service.). So, if your pension funds total up to £20,000, you can get £5,000 as tax-free cash. If they are worth £100,000, you can have £25,000 tax free.

Pensions – Looking For A Better Income

Pensions are always changing. Each Government seems to feel the need to make changes – with the result that there are several different types of pension legislation we have to work with. The biggest change recently, however, is not one caused directly by this or the previous Government. Inflation and people living longer have combined with the result that people with personal pensions will get considerably less income than they had hoped for from their private pensions. Call us to find out your options on 01342 313302.

Other Age Issues

Parents are increasingly being asked to help their children get a start on the property market. For some it is helping out with the deposit. For others it may mean acting as a guarantor – either though their income or the value in their properties. As we get older, we do begin to see the necessity of having a will to ensure everything is dealt with smoothly should we go under the Number 9 bus. Other matters that also arise as one gets older include issues such as possible Care Home fees, Powers of Attorney and Living Wills. It is probably never a right time to discuss such matters, but we are available to assist on these matters as well. There are arrangements that can be made in advance which can assist with important matters such as preserving money in the face of potentially large Care Home fees. Call us on 01342 313302.

Equity Release – A Useful Tool

With a greater number of older homeowners, Equity Release has increased in popularity. Traditionally it was just a way for those who were cash-poor but property-rich to enhance their lifestyle. This is still the way it is used by most, but others have found it a tool to handle other situations. One property owner used Equity Release as a bridging loan for a property purchase. Another used it as capital raising for a business venture. Most recently we completed a case where the mother in her 80s wanted her only son to have some of his inheritance now to help out his family, rather than having to wait until she was gone. With the increasing use of Equity Release, more options are becoming available and interest rates have edged downwards. Call us on 01342 313302.

Mortgages – You Are Not Too Old!

In the past people generally were expected to have paid off their mortgage by the time they reached the usual retirement ages then of 65 for men and 60 for women. Needs and expectations have changed with many men and women wanting or needing to have a mortgage extending beyond these ages. Generally lenders have grown more cautious about lending into “retirement”. However, there are lenders who will take a more enlightened view based on the borrowers ability to repay the mortgage. Recently we assisted a couple who were both aged 75 to raise a mortgage to purchase a property they wanted. If you have run into a problem with borrowing because of your age, do contact us and let us see if we can find a solution for you. Call us on 01342 313302.