Your pensions questions answered

We wanted to answer some of the most popular pensions questions we get asked by new clients. Of course we can only give general guidance in a short blog, so if you would like to discuss your own specific circumstances, please call the office and make an appointment with one of our advisers. Our first meeting is at no cost to you and we will be able to work out the next steps to help you achieve your perfect retirement.

When should I start saving into my pension?

The short answer is – now! Simply the longer you save for your retirement, the longer your investment will have to build up and the more you will have.

How much should I save?

This will depend on how old you are, how many years there are until you want to retire and how much disposable income you have. We can help you forecast how much you might achieve in your pension pot with different levels of savings, but remember that investments such as pensions can go up as well as down. So any long term figures we calculate will be for guidance purposes only.

I’ve got a company pension from an old job, can I transfer it into another pension?

Some pension funds can be transferred, depending on the type of pension it is. If you are able to give us the details we can take a look. You may be better off leaving the funds where they are, again, if we have specific details we can advise you on the options.

I’m getting divorced, what happens to my pension?

Your pension will need to be included in the financial settlement calculations. If your partner has a significantly greater pension pot than you do, or if they have greater property assets, you may be entitled to a pension sharing order. We have more information on this here, and we recommend you talk to your solicitor about the potential options.

Can I retire early?

If that is your ultimate aim, then we can take this into account when planning your pension arrangements. Remember that the point at which you can claim your state pension may have changed, so check that here

It’s likely that you will be able to claim any personal or occupational pension earlier than your state pension. These days many of our clients choose to reduce their working hours while starting to claim on their pensions until they retire completely. There are many different ways to structure your income as you approach retirement. We can talk through these options depending on your personal circumstances.

What happens to my pension if I die, can I pass my pension on to my children?

You can’t pass on the right to your State Pension to your children or grandchildren after your death. But in most cases any personal pensions you have can be passed to your spouse, children or to anybody else. Occupational pensions can normally provide benefits from your financial dependants, which is often your spouse or partner or young children. Pensions are normally outside of your estate and won’t be subject to Inheritance Tax. You need to ensure that you have completed the appropriate paperwork naming the right people as your desired beneficiaries.

I have another question, please can you help?

Yes of course, we love answering pension questions. Please get in touch with us by calling 01543 410512 and let us see how we can help you.

Family Finances – What is the value of a parent ?

Many of us know someone who has died young, or who has had a serious illness, and this can have a massive impact on family finances.

But how many of us have seriously thought about how long we could pay the bills for if we were unable to work.

It is a simple calculation to look at what you have in savings, and to compare this against your monthly spending.  How long would this last?

This does not only apply to wage earners. Legal and General, in their 2015 Value of a Parent survey, value the domestic work a Mum does each year at £29,535.  For Dad’s it’s £21,601.

If as a parent you were unable to cook, clean or look after the children due to an accident or illness would your family be able to cope financially?

Would one income be enough to pay the bills? Or would you have to give up work to become a carer? State benefits are probably a lot less than you think, and would probably not even cover the bills.  If you have a mortgage could you even end up losing your home?

Did you know you may be able to protect your income in the event of accident or sickness for Less than £5 per week.

That’s less than 2 Starbucks coffees, Less than 2 Pints in the pub, Less than a Friday night take away.

As an example:

A 40 year old male, non-smoker, paying £20 per month could receive a tax free income of nearly £865 per month if unable to work due to accident or sickness (subject to underwriting).

This type of income protection cover is also available for manual workers with accident cover included from day 1

So for less than £5 per week you could have peace of mind that your financial situation would be in order leaving you to concentrate on caring for your family.

Contact us today to discuss your protection needs or any other financial matters, an initial meeting is free of charge.

Quote based on a 40 year old male, payment after 3 month deferred period, assuming acceptance at normal rates. Data correct at 12/11/2015.

Call us now