Monday 29 July 2013

Pension Notes

There were fewer changes to do with pensions this year in the Budget, but it is worth reviewing the key facts regarding pensions:

1. The usual minimum age to take pension benefits is 55 – male or female

2. Normally you can take up to 25% of your pension fund as Tax Free Cash.

3. You do not have to retire to take your pension benefits.

4. If the total of your pension funds is less than £18,000, from age 60 you can take it all as cash (25% Tax Free) and the balance taxed as earned income.

5. If you have a couple of very small pots (less than £2000 in each pot), from age 60 you can take these all as cash (25% Tax Free and the rest taxed as income).

6. You have various options when you take your pension benefits including:

a) an enhanced annuity (higher income) if you have serious medical issues;
b) taking just your Tax Free Cash and leaving the balance invested until later and with the option of taking an income from your pension fund annually;
c) taking an annuity which guarantees an income for as long as you live – level or increasing payments.

We can help advise on all of your choices so as to help customise your pension benefits to meet your needs. Give us a ring on 01342 313302.

Monday 22 July 2013

How Much is a Mum or Dad Worth?

Those who have children should certainly consider having life assurance. Recent research showed that only 53% of parents in the UK had life assurance and this level is decreasing. The research looked at what it would cost if a family lost a parent and had to replace all of the work they do. The value of replacing a Mum worked out at £30,032 and a Dad at £21,306 (Dads take note!). Contact us and we can provide quotes speedily.

Monday 15 July 2013

Unusual Mortgage Solutions

While rates are competitive, the majority of lenders have brought in new restrictions on age to meet the regulators requirements. Nevertheless, there are niche lenders who can help deal with such situations where borrowing needs to go past the usual retirement age of 65. We will be pleased to assist in finding a solution. There are also Equity Release options from age 55 onwards although these are usually “last resort” solutions.

Monday 8 July 2013

Cheap Mortgages

Rates for new mortgages are very competitive currently with fixed rates at record lows. However, the majority of borrowers are still suffering from being on their lender’s Standard Variable Rate ranging from 4.5% upwards. If you are a mortgage payer do make a point of checking out what interest rate you are being charged.

We can then assist you with quotes for what you could get if you changed lenders.
Such a change can save thousands of pounds over a year or two.

Friday 5 July 2013

Help for the Property Market

The Chancellor announced additional measures to help more people buy property – whether they are First-Time Buyers struggling to raise a deposit, or those with a growing family needing to move but without sufficient value in their current home to enable them to move to a larger place. This is already in effect for new builds where the builders and/or Government help with the deposit. From January 2014 the help is to be expanded with the Help to Buy mortgage scheme which will not be limited to newly built properties and will only require a 5% deposit.