The pension freedoms are one of the

Size: px
Start display at page:

Download "The pension freedoms are one of the"

Transcription

1 PARLIAMENTHILLMONEYTALK The personal finance newsletter for Parliament Hill member organisations published by Lighthouse Financial Advice AUTUMN 2015 How to reduce tax on your pension and other assets Beware when accessing your pension - you could end up with an expected tax bill, depending on how and when you access your money. The pension freedoms are one of the biggest shake-ups to private pensions in a generation. In a nutshell, they mean that you can withdraw as much of your pension fund as you like at any point from your 55th birthday onwards. It s important to note that although normally only 25% of your pension fund is tax-free; the remaining 75% will be potentially liable to income tax if you withdraw it. This can land you with a hefty tax bill. There are, however, several ways to reduce the tax liability on your pension, as well as on your other assets. What pension freedoms mean in practice Imagine, for example, that you have a pension fund of 50,000 and choose to withdraw the entire amount. This is how you would be taxed: 25% of it would be tax free, so you would get 12,500 without paying any tax. The remaining 75%, or 37,500, would be taxable. If you also have a separate income of 20,000, you d have a total taxable income of 57,500. As a higher rate tax payer, your tax liability on this amount would be 12,403. (40% tax of 6,046 and 20% tax of 6,357). 10,523 of that bill would be as a result of taking your pension fund as a lump sum, meaning you would lose over 20% of your pension fund to tax. Here are a couple of options for reducing that tax bill. Flexi-access drawdown You could use a flexi-access drawdown product. This is where you invest your pension into funds from which you ll be able to draw an income. From a tax perspective, the main advantage is that you can draw that income whenever you like. You can reduce your tax liability by adjusting the level of those withdrawals around any other sources of income you may have in order to stay in a lower tax bracket. In this example, your flexi-access drawdown is not providing a fixed income; it is allowing you to take money out of your pension fund. The amount you can take will vary depending on the combined performance of your chosen investment funds. Continued on next page Also in this issue Picturing retirement income: a fusion of art and science? 32 Time for change 43 Investing: = undering the risk and potential returns 5 Built for income the natural way of funding a long retirement 6 While Lighthouse Financial Advice endeavours to provide correct information, it cannot guarantee the accuracy of any information contained in this newsletter and no action should be taken or not taken solely based on the information contained in it. Professional financial advice should be sought before taking any action. Threshold, percentages, rates and tax legislation may change in the future. Lighthouse Financial Advice Limited is an appointed representative of Lighthouse Advisory Services Limited which is authorised and regulated by the Financial Conduct Authority. Lighthouse Financial Advice Limited is a wholly owned subsidiary of Lighthouse Group plc. Registered in England No Registered Office: 26 Throgmorton Street, London EC2N 2AN. 1 PARLIAMENTHILLMONEYTALK SPRING 2015

2 2 PARLIAMENTHILLMONEYTALK AUTUMN 2015 How to reduce tax on your pension and other assets (continued) Guaranteed-income drawdown Alternatively, you could choose to invest some or all of your pension into a guaranteed-income product. However, the income you ll receive will have a guaranteed minimum amount rather than varying because of investment performance, so you know how much you re going to get. The other advantage is that you can still withdraw lump sums (if your product allows you to). The cost of that flexibility is a lower income than you d usually get from an annuity, but more certainty over your income than with a flexi-access drawdown product. Inheritance tax thresholds It s also worth remembering that you can reduce your inheritance tax liability on your assets. You already have a personal threshold of 325,000 ( 650,000 for married couples and civil partners). If your estate is worth less than the threshold, then there is no inheritance tax to pay. Anything above the threshold is taxed at 40%. Charitable donations Finally, you can also reduce your inheritance tax liability through charitable donations. Leaving over 10% of your estate to charity will bring down your inheritance tax rate to 36% that s a 10% reduction. Other ways of reducing inheritance tax There are a number of other ways you may be able to reduce the amount of inheritance tax likely to be payable when someone dies. You may also be able to do so without necessarily reducing the income you receive from your investments. Take professional financial advice Arranging your finances tax-efficiently, whether when drawing your pension, investing, or to reduce potential inheritance tax, requires expert knowledge. You should therefore talk to a professional financial adviser who can recommend solutions specifically for you. Making gifts If you leave your entire estate to your spouse or civil partner (who must live permanently in the UK) then they won t pay any inheritance tax. You can also give cash gifts to children tax-free before you die, up to 3,000 per person per year. Larger sums can be tax-free, as long as they re given seven years before you die. Arranging your finances tax-efficiently, whether when drawing your pension, investing, or to reduce potential inheritance tax, requires expert knowledge. You should therefore talk to a professional financial adviser who can recommend solutions specifically for you. The value of your investments you could get back less than you invested. Tax advice which contains no investment element is not regulated by the Financial Conduct Authority.

3 3 PARLIAMENTHILLMONEYTALK AUTUMN 2015 Five steps to effective long-term investing We look at why putting your savings in a fund that invests in the stockmarket and paying in a regular amount each month can give you a better chance of making money over the longer term. If you are thinking about saving for a rainy day, to pay for your child s education or to provide an income in retirement, you might consider putting your money into a fund that invests in the stock market rather than a savings account that pays a low interest rate. But with a dizzying number of funds available to investors these days, choosing the right one can seem a daunting task, particularly when no one knows how stock markets will behave in the future. Here are five tips to help you get started. 1. Talk to a financial adviser The first port of call when choosing to invest is to speak to a qualified financial adviser who will be able to provide you with the right advice and make sure that you are making the right decisions for both your short-term and long-term goals. An adviser will ask a series of questions in order to determine your objectives and your attitude to risk, and will suggest an investment for your needs. 2. Put your money into a diversified portfolio Investing in stock markets involves taking a certain amount of risk, but this can be mitigated by holding a diversified blend of assets. In the past, this was a tricky task, but a new breed of investments known as multi-asset funds are available that take the guesswork out of the process. These funds have been designed to give investors the best of both worlds. Not only do they take the guesswork out of selecting the right blend of investments, but they are also available in a variety of risk options, so there will almost certainly be one that suits your needs. A financial adviser can help determine which fund might work for you. 3. Take a long-term view Very few people ever get rich in a short period of time and this is particularly true when it comes to investing. You stand a better chance of achieving attractive returns on your money when you take a long-term view and hold onto your investment through thick and thin. Of course, because investing in the stock market involves more risk than putting money into a savings account, there will inevitably be bumps along the road. For example, if you hold an investment for just two years, there is a possibility that you might not get much back from it if the stock market happens to fall. But if you intend to hold an investment for 10 years or more, you stand a much better chance of making a lot more money than if you held it in a cash deposit. 4. Don t be swayed by fads One of the most important things to remember when investing for the long-term is not to be drawn into short-term trends. Jumping onto the bandwagon of the latest fashionable investment is often a bad idea because the market could very well have peaked. Investing is a long-term process that requires shrewd judgement. While fashions come and go with the seasons, the best investment strategies are able to stand the test of time. 5. Top up frequently The best way to turn a small investment into a healthy nest egg is to make the most of what is known as pound-cost averaging. Because it is difficult to know the best time to put money into the stock market, one of the best ways to maximise your long-term returns is to invest at regular intervals, such as once a month, and to do this over the long term. Drip-feeding money into the market rather than investing a large lump sum all at once not only instils discipline, but it also means you won t be trying to second-guess what the market will do. Investing in a diversified blend of assets can help mitigate the investment risk.... if you intend to hold an investment for 10 years or more, you stand a much better chance of making a lot more money than if you held it in a cash deposit. The value of your investments you could get back less than you invested.

4 4 PARLIAMENTHILLMONEYTALK AUTUMN 2015 Using the home to fund long-term care Being faced with the prospect of paying for long-term care can be stressful and worrying. If you don t take action, you are likely to find that savings are used up quickly and may even run out. The good news is that you may be able to organise the person s finances in a way that makes their money go further. Just how much a local authority or health trust will contribute towards the cost of any ongoing, long-term care you or your relatives need will depend upon how they assess the person s health conditions against the national eligibility criteria and the total assets savings and other items of value they own they have available. Making the right choice is easier if the person going in to care is not under pressure to make decisions in a hurry. Here are some of the options: Selling the home This affords the benefit of releasing a large sum of money which can then be used to pay for care. However, selling the home is not something you should do without having taken expert advice to make sure that the proceeds will last long enough to cover the cost of care fees for the rest of the person s life, otherwise they may run out of money and be forced to move to another home of the local authority s choosing, which probably charges lower fees. Also, it may not be feasible to sell the home if the person s spouse or dependants live in it. Use a deferred payment agreement Many local authorities offer a deferred payment agreement, whereby they agree to fund care fees and then recover the cost when the person dies, from the proceeds of their estate (for instance the proceeds of selling their house). This is an option that can be negotiated if the person s main asset is their home, or they have another significant asset that the local authority is prepared to accept, and all the other assets are less than the upper capital limit (currently between 23,250 and 26,000, depending on where in the UK you live), or if their income will not cover their fees. Renting out the home Letting the home and using the income to fund care can be advantageous but brings its own set of challenges, and can prove time-consuming. You may wish to consider using a professional agent to manage this for you. If so, it is advisable to use one registered with ARLA (the Association of Residential Letting Agents). Releasing equity from the home There are currently two ways of doing this: one is known as Home Reversion and the other as a Lifetime Mortgage. Both allow you to stay in your home and retain some or all of the ownership of it, while releasing money from the property (either as a lump sum or a series of smaller payments).the loan is repaid by selling the property at some future date, usually when the owner dies. The money released can be used to pay for care, or anything else that you need it for. While equity release can offer a handy solution for many people, it is not for everyone, and expert advice is essential before going down this route. Downsizing You could sell the home and buy a smaller one to release funds, and keep that second property for the family to live in, or rent it out to generate income. Bear in mind the costs and effort of moving, the on-going money needed to maintain the property and, if it is rented, allow for possible periods during which you don t have tenants. Taking out a care plan Depending on the person s situation, it may be appropriate to buy a care fees plan, which provides a guaranteed income, paid tax-free directly to the care home, for the rest of their life. The plan could be paid for from, for instance the proceeds from selling the home, downsizing or releasing equity. What is the best route for you? Explore all your options thoroughly, preferably with the assistance of a professional financial adviser qualified in advising on long-term care and equity release. They will be able to assess your personal situation to find the right solution for you and your family.. Equity release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration. Equity release may not be right for everyone. It may affect your entitlement to state benefits and will reduce the value of your estate. Think carefully before securing other debts against your home. Depending on the person s situation, it may be appropriate to buy a care fees plan, which provides a guaranteed income, paid tax-free directly to the care home, for the rest of their life.

5 5 PARLIAMENTHILLMONEYTALK AUTUMN 2015 Investing: understanding the risks and potential returns Investing provides potential opportunities for us all to grow our wealth, protect our futures, and get us closer to achieving our financial goals. It inevitably involves taking a certain amount of risk and you need to decide how much. Investing provides potential opportunities for us all to grow our wealth, protect our futures, and get us closer to achieving our financial goals. However, investments aren t guaranteed, so it is important to understand how they could perform during good and bad times. Investing involves taking a calculated risk, using all the information available to make a decision based on likely outcomes. What are the risks of investing? As an investor, you face three main types of risks: Investment risks The money you invest is not guaranteed and you are likely to see fluctuations in the value of your portfolio. The greater the risk you take, the greater the potential fluctuations. These risks arise as a result of what your fund is invested in (such as equities and bonds ) and how these investments perform. Taking some degree of investment risk is usually essential to benefit from investing and to meet your long-term investment goals. Product risks These are risk that have nothing to do with what your fund is invested in, but are related to the way the fund itself is structured. For instance, some investments that are structured to reduce the tax you pay are considered to be riskier than others because the tax breaks they currently enjoy may be withdrawn. Funds structured as mainstream ISAs, for instance, are generally considered to have a fairly low product risk. About Santander Asset Management s Atlas Portfolios The Atlas Portfolios are multiasset funds. A multi-asset fund invests in a range of other funds run by specialist asset managers. The investment teams blend together the best funds across different sectors, ensuring that different asset classes and geographies are represented. The value of individual investments it makes sense to have a mix of different investments that move in an unrelated way. This helps to reduce risk and achieve the investment objectives. We blend assets by: Asset Type (such as equities, bonds, cash, property, alternatives, etc.) The Santander Atlas Growth Portfolios are designed to help you and your financial adviser make an informed investment decision, weighing up potential returns against realistic potential for loss. Geographies (different economies and political systems) Asset Managers (who manage the funds we buy) Styles of Management (such as active or passive). Always at the helm with dynamic active management We have an extremely dynamic, comprehensive and robust investment process. Our investment team monitors the portfolio every day, always making sure the holdings are appropriate. The team invests where they consider the most compelling market conditions to be, while using strategies that protect against market downturns. The value of your investments you could get back less than you invested. Corporate risks These are the risks associated with the provider of the product, such as the potential mismanagement of your money, or even fraud in extreme cases. Investments vary from low risk to very high risk there is no such thing as a risk-free investment. Typically, the more risk you are willing to take the greater the potential for gain. In order to be sure the right fund is selected for you, it is critical to understand what you could experience, in both strong and weak markets. You should discuss this with your financial adviser, who should work out your attitude to risk and capacity for loss using a leading risk assessment method. Tax advice which contains no investment element is not regulated by the Financial Conduct Authority.

6 6 PARLIAMENTHILLMONEYTALK AUTUMN 2015 Built for income the natural way of funding a long retirement Where can you find a sustainable, long-term income stream to meet your needs during a retirement that could span decades rather than years? One key issue for people who are approaching retirement is how they can obtain a decent, long-term level of sustainable income which has the potential to last for the rest of their life. Annuities not necessarily suitable for everyone The traditional annuity with its guaranteed income may still be the preferred choice for many, but it may not necessarily be the most suitable option for everybody, and more people are expected to consider other income investment options following the radical changes to pensions regulations that came into effect this year. A multi-asset income fund that delivers a good income stream An alternative that may interest those approaching, or in retirement, is a multiasset income fund. Multi-asset funds offer diversification by investing in a range of different asset classes, such as bonds, company shares, property, and alternative assets. One such fund is the Premier Multi-Asset Monthly Income Fund. The Fund has a strong focus on delivering a good income stream for investors, on a monthly basis, by investing in a range of different incomeproducing funds managed by leading investment companies. All of the underlying investments are chosen for their ability to pay attractive levels of income. In its most basic form, this approach can be seen as a not putting all your eggs in one basket style of investing. By investing in many different types of asset and funds, investors are not overly reliant on a single asset or fund to provide the income. Cashing in units or shares to generate income Broadly speaking, there are two popular ways of getting income from an investment. One is cashing in units or shares. The amount of income you receive will depend on the number of units you sell and their price at the time they are sold. So to achieve a regular income you will probably need to sell a different number of units each month or quarter, depending on their price. If you generate your income by selling units, the number of units or shares you own will decrease over time, so there is the risk that you could end up selling all your shares or units over time. Generating natural income An alternative option is to receive natural income from underlying income-generating assets. This is the income that you receive from your investment as dividends in other words the various dividends paid by the funds or companies you hold within you investment portfolio. This dividend is paid per share, so it equates to the number of shares held multiplied by the dividend per share. The income can fluctuate over time but no shares have to be sold to generate the income. This means that you will have your full pack of shares that will hopefully continue to pay dividends for as long as you hold the investment. The share price will also fluctuate but may have the potential to grow over time. Crucially, a natural income can provide investors with a steady income stream even in troubled markets. Regular income over the longer term Premier s multi-asset income funds are built on the principle of natural income. Hence we look to construct a diversified portfolio of incomegenerating investments that aim to pay an attractive dividend per share to our clients over the long term, with no need to cash in shares to create the income, which is why we believe our multi-asset income funds could be of interest for people whose main objective is long-term income. The value of your investments can go down as well as up, so you could get back less than you invested. An alternative option is to receive natural income from underlying incomegenerating assets. This is the income that you receive from your investment as dividends in other words the various dividends paid by the funds or companies you hold within you investment portfolio.

Making the most of your tax-free allowances

Making the most of your tax-free allowances UNISONMONEYTALK The personal finance newsletter for UNISON members published by Lighthouse Financial Advice Autumn 2015 Making the most of your tax-free allowances A key consideration for anyone with money

More information

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and

More information

Making the most of your retirement

Making the most of your retirement Making the most of your retirement A guide to equity release and our advice service Provided by Contents Welcome from the Age UK Group 3 Do more with your retirement 4 What is equity release? 5 Is equity

More information

A guide to the pension changes in April 2015

A guide to the pension changes in April 2015 A guide to the pension changes in April 2015 106027837.indd 1 05/01/2015 10:00 Contents What do the changes mean for you? 3 Summary of the changes from 6 April 2015 5 What s changed in practice? 6 How

More information

With new options available from April 2015, we can help you plan your finances for a worry-free retirement

With new options available from April 2015, we can help you plan your finances for a worry-free retirement Your retirement With new options available from April 2015, we can help you plan your finances for a worry-free retirement Life is full of financial decisions and planning your retirement is one of the

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

Your retirement could have even more going for it

Your retirement could have even more going for it Your retirement could have even more going for it A straightforward guide to equity release For no obligation advice: call 0800 015 0993 www.justretirementsolutions.com Contents Imagine what you could

More information

INVESTMENT POTENTIAL,

INVESTMENT POTENTIAL, ADD POWER TO YOUR INVESTMENT POTENTIAL, CHOOSE THE M&G ISA 2 CONTENTS What is an ISA? 3 The key benefits of ISA investing 4 Reasons to invest in The M&G ISA 6 What is a Junior ISA? 7 The key benefits of

More information

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 CONTENTS What is equity release?... 3 How much money could I raise through an equity release?... 4 What

More information

The Retirement Account. Certainty, flexibility and simplicity for life

The Retirement Account. Certainty, flexibility and simplicity for life Certainty, flexibility and simplicity for life Introducing Retirement Advantage Previously known as MGM Advantage and Stonehaven, we are a well-established company that can trace our roots back over 150

More information

The five-step plan to a better retirement. A step by step guide to organising your finances

The five-step plan to a better retirement. A step by step guide to organising your finances The five-step plan to a better retirement A step by step guide to organising your finances This is one of the biggest financial decisions you ll make so it s important to get it right. At Fidelity we strongly

More information

Your Guide to Equity Release

Your Guide to Equity Release Equity release has provided me with financial stability. I now have the opportunity to help my family, go on holiday, and make some home improvements. Mr W, East Sussex Your Guide to Equity Release Contents

More information

Your guide to Annuities

Your guide to Annuities Your guide to Annuities From Standard Life It s good to know what s around the next corner 1 of 24 If you would like a secure source of income and have a built up pension fund or a lump sum to invest,

More information

A Guide to RETIREMENT PLANNING

A Guide to RETIREMENT PLANNING A Guide to RETIREMENT PLANNING PARTNERS IN MANAGING YOUR WEALTH Contents 3 Retirement planning guide 4 Retirement - the facts 5 How much will you need in retirement? 7 Investing for your retirement 8 What

More information

Pension benefits guide How you can use your pension pot to suit your needs

Pension benefits guide How you can use your pension pot to suit your needs Pension benefits guide How you can use your pension pot to suit your needs axawealth.co.uk With the flexibility you have to take benefits through your pension, it can be difficult to know what s best for

More information

Your Guide to Equity Release

Your Guide to Equity Release Equity release has enabled me to go on more holidays, purchase a new car and make some major household purchases. The service provided met our financial needs in an efficient and helpful way. John, Sutton

More information

INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO

INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO INVESTING Contents Helping you reach your financial goals 3 Introducing the different types of investments 4 Where could you invest? 4 Where

More information

Your Guide to Pension Freedom

Your Guide to Pension Freedom Your Guide to Pension Freedom 3 From April 2015, individuals will have more freedom to access their pensions. These changes mark a radical departure from the existing system, by giving you greater choice

More information

Helping your loved ones. Simple steps to providing for your family and friends

Helping your loved ones. Simple steps to providing for your family and friends Helping your loved ones Simple steps to providing for your family and friends Contents 01 How can I take control of who gets what? 02 Inheritance Tax 04 Do you know how much you re worth? 06 Making lifetime

More information

TAKING CONTROL OF YOUR PENSION PLAN. The value of pension contributions

TAKING CONTROL OF YOUR PENSION PLAN. The value of pension contributions TAKING CONTROL OF YOUR PENSION PLAN If you add together all the money you have in pension arrangements, the total may well dwarf every other investment you ever make. Despite this, many people are happy

More information

PREMIER PORTFOLIO MANAGEMENT SERVICE INVESTOR GUIDE FOR CLIENTS OF PROFESSIONAL FINANCIAL ADVISERS ONLY

PREMIER PORTFOLIO MANAGEMENT SERVICE INVESTOR GUIDE FOR CLIENTS OF PROFESSIONAL FINANCIAL ADVISERS ONLY PREMIER PORTFOLIO MANAGEMENT SERVICE INVESTOR GUIDE FOR CLIENTS OF PROFESSIONAL FINANCIAL ADVISERS ONLY 2 Premier Portfolio Management Service Investor Guide WELCOME Neil Birrell Chief Investment Officer

More information

2014/15. Year End. Tax Planning A GUIDE TO WITH CAREFUL TAX PLANNING, IT MAY BE POSSIBLE TO MITIGATE TAXES OR MAKE THEM MUCH MORE MANAGEABLE

2014/15. Year End. Tax Planning A GUIDE TO WITH CAREFUL TAX PLANNING, IT MAY BE POSSIBLE TO MITIGATE TAXES OR MAKE THEM MUCH MORE MANAGEABLE FINANCIAL GUIDE A GUIDE TO 2014/15 Year End Tax Planning WITH CAREFUL TAX PLANNING, IT MAY BE POSSIBLE TO MITIGATE TAXES OR MAKE THEM MUCH MORE MANAGEABLE Atkinson White Partnership Regency House, 51 Coniscliffe

More information

M&G Guide to Retirement Income

M&G Guide to Retirement Income M&G Guide to Retirement Income 2 Working out how to make adequate financial provision for retirement is one of the most important financial decisions most of us will ever face. However, it can be a daunting

More information

Taking control of your future

Taking control of your future The Association of Investment Companies Taking control of your future A guide to Self-Invested Personal Pensions September 2014 www.theaic.co.uk The Association of Saving for your retirement is one of

More information

Saga Equity Release Advice Guide

Saga Equity Release Advice Guide Your guide to Equity Release Expert advice with no obligation Your introduction to equity release Your retirement should give you the freedom to do all the things in life you haven t had time for. However,

More information

CAVENDISH EQUITY RELEASE. The Essential Guide. Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985

CAVENDISH EQUITY RELEASE. The Essential Guide. Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985 CAVENDISH Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985 EQUITY RELEASE The Essential Guide INDEX Welcome to Cavendish Equity Release 3 How can Equity Release be used? 4 Why is specialist advice

More information

Investing for a brighter future. Stocks and Shares ISAs explained 1 STOCKS AND SHARES ISAS EXPLAINED

Investing for a brighter future. Stocks and Shares ISAs explained 1 STOCKS AND SHARES ISAS EXPLAINED Investing for a brighter future Stocks and Shares ISAs explained 1 STOCKS AND SHARES ISAS EXPLAINED Contents 03 What is a stocks and shares ISA? 04 How much can I invest? 05 Why invest in a stocks and

More information

A guide to inheritance tax

A guide to inheritance tax Sept 2014 Contents: 1. Understanding inheritance tax page 02 more 2. Should I be worried about inheritance tax? page 03 more 3. Inheritance tax planning page 05 more 4. Using gifts page 07 more 5. Using

More information

MORE CHOICE MORE FREEDOM

MORE CHOICE MORE FREEDOM LOOK FORWARD TO MORE CHOICE MORE FREEDOM A guide to Income Release Pension Portfolio royallondon.com WELCOME TO ROYAL LONDON We re a mutual organisation and, unlike a PLC, we don t have any shareholders

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The point at which you

More information

Guide to SIPPs. Investment Helpdesk: 0131 550 1212. www.cs-d.co.uk

Guide to SIPPs. Investment Helpdesk: 0131 550 1212. www.cs-d.co.uk Investment Helpdesk: 0131 550 1212 www.cs-d.co.uk SIPP stands for Self Invested Personal Pension. SIPPs are a flexible type of personal pension. Like most, they are designed to provide a retirement pot

More information

Equity Release An easy to understand guide just for you

Equity Release An easy to understand guide just for you TRuE BEARing ChARTEREd e Right direction for Financial Advice Equity Release An easy to understand guide just for you True Bearing Chartered 2 Buckshaw Court, East Terrace Business Park Euxton Lane, Euxton,

More information

PASSING ON YOUR PENSION. A guide to death benefits from income drawdown. Retirement Solutions

PASSING ON YOUR PENSION. A guide to death benefits from income drawdown. Retirement Solutions PASSING ON YOUR PENSION A guide to death benefits from income drawdown Retirement Solutions It s now easier than ever to pass any remaining money in your pension to the people you love when you die. New

More information

KEY FEATURES OF THE METLIFE INVESTMENT BOND PORTFOLIO ENTER A MORE CERTAIN WORLD

KEY FEATURES OF THE METLIFE INVESTMENT BOND PORTFOLIO ENTER A MORE CERTAIN WORLD KEY FEATURES OF THE METLIFE INVESTMENT BOND PORTFOLIO ENTER A MORE CERTAIN WORLD Investment Bond Portfolio Contents 1 Key Features of the MetLife Investment Bond Portfolio 2 2 Guarantee Options 6 3 Other

More information

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE?

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE? WHAT IS EQUITY RELEASE? Equity Release can free some of the capital tied up in your home, while you continue to live there. This money can be in the form of a tax-free lump sum, a regular income or a combination

More information

guide to pension tax relief.

guide to pension tax relief. guide to pension tax relief. introduction tax benefits of pensions tax relief maximum contributions how to make a pension contribution what next? introduction tax benefits of pensions tax relief maximum

More information

Key features. For customers One Retirement

Key features. For customers One Retirement For customers One Retirement Key features Contents Its aims 02 Your commitment 02 Risks 03 Questions and answers 04 Secure retirement income (SRI) 08 Other information 11 How to contact us 12 The Financial

More information

KEY GUIDE. Investing for income when you retire

KEY GUIDE. Investing for income when you retire KEY GUIDE Investing for income when you retire Planning the longest holiday of your life There comes a time when you stop working for your money and put your money to work for you. For most people, that

More information

RELEASING CASH FROM YOUR HOME

RELEASING CASH FROM YOUR HOME RELEASING CASH FROM YOUR HOME As a recommended adviser for the Society of Later Life Advisers (SOLLA) we are frequently asked to advise on home income/equity release plans. These notes are designed to

More information

For customers Wealth Management Portfolio A flexible, tax-efficient investment

For customers Wealth Management Portfolio A flexible, tax-efficient investment For customers Wealth Management Portfolio A flexible, tax-efficient investment Introducing our Wealth Management Portfolio Our Wealth Management Portfolio is a tax-efficient offshore bond with lots of

More information

A Guide to Approved Retirement Funds (ARF)

A Guide to Approved Retirement Funds (ARF) & Guidance RF A Guide to Approved Retirement Funds (ARF) A Guide to Approved Retirement Funds Contents I m approaching retirement, what are my financial options? 02 What is a Financial Broker? 03 Why would

More information

Our guide to. buying an annuity

Our guide to. buying an annuity Our guide to buying an annuity 2 Our guide to buying an annuity Contents Introduction 3 Pension reforms Thinking about retirement 3 Money and budgeting How can we help? Your retirement timeline Key questions

More information

2014/15. Year End. Tax Planning. With careful tax planning, it may be possible to mitigate taxes or make them much more manageable

2014/15. Year End. Tax Planning. With careful tax planning, it may be possible to mitigate taxes or make them much more manageable FINANCIAL GUIDE A GUIDE TO 2014/15 Year End Tax Planning With careful tax planning, it may be possible to mitigate taxes or make them much more manageable A GUIDE TO 2014/15 YEAR END TAX PLANNING With

More information

Key Features Document

Key Features Document Keyfacts Key Features Document Transact Section 32 Buy Out Bond IntegraLife UK Limited A firm authorised and by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and

More information

OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX

OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX OCTOPUS EVERYTHING YOU NEED TO KNOW ABOUT INHERITANCE TAX CONTENTS Understanding inheritance tax 3 Should I be worried about inheritance tax? 4 Inheritance tax planning 6 Using gifts 8 Using trusts 10

More information

Provide for your loved ones. A guide to death benefits from your pension plan

Provide for your loved ones. A guide to death benefits from your pension plan Provide for your loved ones A guide to death benefits from your pension plan This guide covers the death benefits from the following plans: Self Invested Personal Pension Group Self Invested Personal Pension

More information

Customer Guide. to lifetime mortgages. more 2 choose a range of lifetime mortgage plans to suit every need

Customer Guide. to lifetime mortgages. more 2 choose a range of lifetime mortgage plans to suit every need Customer Guide to lifetime mortgages more 2 choose a range of lifetime mortgage plans to suit every need From one of the UK s largest retirement lending specialists Please speak to your adviser for further

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The higher rate threshold

More information

TD Direct Investing A Guide to ISAs

TD Direct Investing A Guide to ISAs TD Direct Investing A Guide to ISAs Introduction The aim of this guide is to explain how an Individual Savings Account (ISA) works and the benefits to investors. We offer our services on an execution-only

More information

RELEASING CASH FROM YOUR HOME

RELEASING CASH FROM YOUR HOME RELEASING CASH FROM YOUR HOME As a recommended SOLLA adviser we are frequently asked to advise on home income/equity release plans. These notes are designed to provide some general background to clients

More information

SUPPLEMENTARY INFORMATION DOCUMENT THE NFU MUTUAL SELECT INVESTMENT PLAN THE NFU MUTUAL SELECT INDIVIDUAL SAVINGS ACCOUNT (ISA) INVESTMENTS

SUPPLEMENTARY INFORMATION DOCUMENT THE NFU MUTUAL SELECT INVESTMENT PLAN THE NFU MUTUAL SELECT INDIVIDUAL SAVINGS ACCOUNT (ISA) INVESTMENTS SUPPLEMENTARY INFORMATION DOCUMENT THE NFU MUTUAL SELECT INVESTMENT PLAN THE NFU MUTUAL SELECT INDIVIDUAL SAVINGS ACCOUNT (ISA) INVESTMENTS SUPPLEMENTARY INFORMATION DOCUMENT The NFU Mutual Select Investment

More information

SIPP Key Facts. This is an important document which you should keep.

SIPP Key Facts. This is an important document which you should keep. SIPP Key Facts! This is an important document which you should keep. 2 Key Facts of the Alliance Trust Savings SIPP The Financial Conduct Authority is the independent financial services regulator. It requires

More information

A guide to the world of investing

A guide to the world of investing A guide to the world of investing Investments Introduction If you are thinking about investing, then this booklet is designed to help lead you through the investment landscape. It s a quick,simple guide

More information

TD Direct Investing A Guide to SIPPs

TD Direct Investing A Guide to SIPPs TD Direct Investing A Guide to SIPPs Introduction If you are considering investing for retirement, there are a number of ways to approach it. One way is to embark on the do it yourself (DIY) self investment

More information

exploring the options

exploring the options Information caveat The content of this presentation is provided for illustrative purposes only and is not intended to be used for individual investment or financial planning and does not constitute personal

More information

A Guide to Releasing Capital from your Home

A Guide to Releasing Capital from your Home Advice for older people A Guide to Releasing Capital from your Home Advice provided by Advice for older people FirstStop Advice brings together the expertise of some of the most trusted and respected organisations

More information

It s flexible. Key features of the Flexible Income Annuity. Flexible Income Annuity

It s flexible. Key features of the Flexible Income Annuity. Flexible Income Annuity It s flexible Key features of the Flexible Income Annuity Flexible Income Annuity This is an important document and you should read it before deciding whether to buy your pension annuity from us Purpose

More information

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives?

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives? Buyer s Guide : Content Page 1: What is equity release? Page 2: Is equity release the right choice for you? Page 3: Protecting yourself If it isn t right for you, what are the alternatives? Page 4: Lifetime

More information

Buy-to-let guide about tax

Buy-to-let guide about tax Perrys Chartered Accountants Buy-to-let guide about tax Introduction As a buy-to-let landlord it is important you know about tax and how it affects you and your investment. This is why Perrys Chartered

More information

Your guide to retirement savings and fund choices

Your guide to retirement savings and fund choices Your guide to retirement savings and fund choices The Global Connections Group Personal Pension Plan for employees automatically enrolled into the plan Contents What is The Global Connections Group Personal

More information

Key Features of the Local Government Additional Voluntary Contributions (AVC) Scheme for England & Wales

Key Features of the Local Government Additional Voluntary Contributions (AVC) Scheme for England & Wales Key Features of the Local Government Additional Voluntary Contributions (AVC) Scheme for England & Wales Important information you need to read The Financial Conduct Authority is an independent financial

More information

Keeping up with mortgage repayments

Keeping up with mortgage repayments Keeping up with mortgage repayments This information is an extract from the booklet Housing costs, which is part of our Financial guidance series. You may find the full booklet helpful. We can send you

More information

Key Features. of the Suffolk Life SIPP (Deed Poll Scheme)

Key Features. of the Suffolk Life SIPP (Deed Poll Scheme) Key Features of the Suffolk Life SIPP (Deed Poll Scheme) This document is part of a set, all of which should be read together. Key Features Your Personal Illustration Schedule of Fees Schedule of Allowable

More information

EQUITY RELEASE GUIDE. Everything you need to know about equity release.

EQUITY RELEASE GUIDE. Everything you need to know about equity release. EQUITY RELEASE GUIDE Everything you need to know about equity release. An informative guide from the equity release specialists The informative guide to equity release... Equity release has come a long

More information

Our managed funds products are issued by

Our managed funds products are issued by Our managed funds products are issued by 1 According to the Investment and Financial Services Association 1, Australia s first managed funds were introduced in 1954. Since then the industry has grown substantially

More information

How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide.

How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide. How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide. www.increaseyourpension.co.uk Welcome to making investing simple Investing doesn t have to

More information

OUR GUIDE TO EQUITY INCOME INVESTING INCOME GENERATION COVERED FROM EVERY ANGLE

OUR GUIDE TO EQUITY INCOME INVESTING INCOME GENERATION COVERED FROM EVERY ANGLE OUR GUIDE TO EQUITY INVESTING GENERATION COVERED FROM EVERY ANGLE FIRST THINGS FIRST: DECIDING WHAT YOU WANT FROM YOUR INVESTMENTS Put simply, people usually invest their money in funds in order to help

More information

Portfolio Investments Key Features

Portfolio Investments Key Features Portfolio Investments Key Features Including the Investments ISA IMPORTANT INFORMATION YOU NEED TO READ AND UNDERSTAND BEFORE YOU INVEST The Financial Conduct Authority is a financial services regulator.

More information

Buying a pension annuity

Buying a pension annuity Buying a pension annuity Why do I need to think about buying a pension annuity? When you come to retire, you will have some important decisions to make. Probably most important of all is how you will generate

More information

The Saga Guide to Paying for Care

The Saga Guide to Paying for Care The Saga Guide to Paying for Care Welcome An active and secure retirement is something we like to think we re all entitled to and we find it hard to imagine a time beyond that, when we may need care from

More information

planning for a better retirement

planning for a better retirement planning for a better retirement retirement is the time when you finally get to do all the things you said you were going to do page 01 making the most of your retirement Retirement is the time when you

More information

A simple solution to the investment puzzle. Multi-asset Funds. Ready-made investment funds matched to your attitude to risk

A simple solution to the investment puzzle. Multi-asset Funds. Ready-made investment funds matched to your attitude to risk A simple solution to the investment puzzle Multi-asset Funds Ready-made investment funds matched to your attitude to risk Contents Why Aviva Investors? 2 A simple solution to investing 3 Are these funds

More information

YOUR GUIDE TO. Understanding life insurance

YOUR GUIDE TO. Understanding life insurance YOUR GUIDE TO Understanding Making life less complicated. Most people know that can provide their families with a death benefit if the unexpected should happen. But they may not know that it can also be

More information

UNDERSTANDING YOUR FUTURE CREATE A PICTURE OF YOUR RETIREMENT

UNDERSTANDING YOUR FUTURE CREATE A PICTURE OF YOUR RETIREMENT UNDERSTANDING YOUR FUTURE CREATE A PICTURE OF YOUR RETIREMENT CONTENTS My Future 2 Your Family 2 Your Property 3 Your Assets 3 Your Future Summary 4 Your Retirement 4 Your Future Income 5 Details & Events

More information

Conventional Lifetime Annuity Options Your Questions Answered

Conventional Lifetime Annuity Options Your Questions Answered Conventional Lifetime Annuity Options Your Questions Answered 0800 014 7470 0333 014 6267 am-5.30pm weekdays. Calls may be recorded for training and monitoring purposes. www.425fs.co.uk Contents 1. Introduction

More information

The best laid plans. A Saga guide to planning for the future. Being in the sandwich generation is no picnic. About this guide

The best laid plans. A Saga guide to planning for the future. Being in the sandwich generation is no picnic. About this guide The best laid plans JUNE 2015 Being in the sandwich generation is no picnic Common belief has it that those aged 45-60 have it easy. Growing up at the perfect time to take advantage of free education and

More information

BAE SYSTEMS PENSIONS BECAUSE PLANNING IS PART OF THE JOURNEY RETIREMENT ACCOUNT GUIDE LEVEL 100+ MARCH 2015

BAE SYSTEMS PENSIONS BECAUSE PLANNING IS PART OF THE JOURNEY RETIREMENT ACCOUNT GUIDE LEVEL 100+ MARCH 2015 BAE SYSTEMS PENSIONS BECAUSE PLANNING IS PART OF THE JOURNEY RETIREMENT ACCOUNT GUIDE LEVEL 100+ MARCH 2015 CONTENTS Where your Scheme benefits come from 4 Your choices affect your retirement account 5

More information

Financial Information Guide: Residential / Nursing

Financial Information Guide: Residential / Nursing Financial Information Guide: Residential / Nursing Financial Information Guide for people going into a care home, or care home with nursing on a permanent basis 2015/2016 This booklet explains: 1. About

More information

Preserving your wealth for future generations. Towry s Guide to Estate Planning

Preserving your wealth for future generations. Towry s Guide to Estate Planning Preserving your wealth for future generations Towry s Guide to Estate Planning About Towry We are one of the UK s leading wealth advisers and specialise in providing high quality, expert fi nancial advice

More information

Flexible access to short-term finance. Precisely when you need it. Rathbones secured lending facility.

Flexible access to short-term finance. Precisely when you need it. Rathbones secured lending facility. Flexible access to short-term finance. Precisely when you need it. Rathbones secured lending facility. Flexible lending. As a client of Rathbones, there may be occasions when you need to access short to

More information

How To Take A Pension From A Pension Fund

How To Take A Pension From A Pension Fund UPDATED: 6 April 2015 NEW pension freedoms Your options at retirement How to take tax-free lump sums and income, under new pension freedoms One College Square South, Anchor Road, Bristol, BS1 5HL www.hl.co.uk

More information

A Guide to RETIREMENT PLANNING PARTNERS IN MANAGING YOUR WEALTH PARTNERS IN MANAGING 1 YOUR WEALTH

A Guide to RETIREMENT PLANNING PARTNERS IN MANAGING YOUR WEALTH PARTNERS IN MANAGING 1 YOUR WEALTH A Guide to RETIREMENT PLANNING PARTNERS IN MANAGING 1 YOUR WEALTH Contents Retirement planning guide 3 Retirement the facts 4 How much will you need in retirement? 5 Investing for your retirement 7 What

More information

Investor Guide. RRIF Investing. Managing your money in retirement

Investor Guide. RRIF Investing. Managing your money in retirement Investor Guide RRIF Investing Managing your money in retirement 1 What s inside It s almost time to roll over your RRSP...3 RRIFs...4 Frequently asked questions...5 Manage your RRIF...8 Your advisor...10

More information

Dealing with your mortgage shortfall

Dealing with your mortgage shortfall Dealing with your mortgage shortfall The options available Things to consider Helping you stay on track The Money Advice Service is independent and set up by government to help people make the most of

More information

The. Estate Planner. FAQs about donating real estate. The Roth IRA: Is it time to convert? It s intentionally defective?

The. Estate Planner. FAQs about donating real estate. The Roth IRA: Is it time to convert? It s intentionally defective? The Estate Planner September/October 2009 FAQs about donating real estate The Roth IRA: Is it time to convert? It s intentionally defective? How an IDGT can benefit your estate plan Estate Planning Red

More information

There are two types of returns that an investor can expect to earn from an investment.

There are two types of returns that an investor can expect to earn from an investment. Benefits of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money. We will discuss some

More information

THE WORLD OF INVESTING

THE WORLD OF INVESTING PENSIONS INVESTMENTS LIFE INSURANCE THE WORLD OF INVESTING A QUICK GUIDE INTRODUCTION If you are thinking about investing, then this booklet is designed to help lead you through the investment landscape.

More information

The Personal Range Key Features of the Individual Personal Pension Transfer Value Account

The Personal Range Key Features of the Individual Personal Pension Transfer Value Account The Personal Range Key Features of the Individual Personal Pension Transfer Value Account Reference MPEN11/F 07.15 The Financial Conduct Authority is a financial services regulator. It requires us, Friends

More information

A Guide to Retirement Options. Contents

A Guide to Retirement Options. Contents A Guide to Retirement Options Contents 2. Quick Guide 5. Lifetime Annuities (Secured Pension) 6. Single Life and Joint Life Annuities 6. Level and Escalating Lifetime Annuities 6. Impaired Life and Enhanced

More information

Mortgages Things You Should Know

Mortgages Things You Should Know Mortgages Things You Should Know Moving and Money So you re starting to talk about moving out of London or perhaps you ve made the decision already and you ve started the search in earnest. One of the

More information

RETIREMENT ACCOUNT ADVISER TECHNICAL GUIDE

RETIREMENT ACCOUNT ADVISER TECHNICAL GUIDE RETIREMENT ACCOUNT ADVISER TECHNICAL GUIDE This information is for UK financial adviser use only and should not be distributed to or relied upon by any other person. INTRODUCTION THE RETIREMENT ACCOUNT

More information

WITHDRAWING MONEY PURCHASE FUNDS

WITHDRAWING MONEY PURCHASE FUNDS WITHDRAWING MONEY PURCHASE FUNDS WITHDRAWING MONEY PURCHASE FUNDS Pension commencement lump sum plus annuity Uncrystallised funds pension lump sum Flexi -access drawdown Small pots PRESERVE YOUR FUTURE

More information

Collective Retirement Account

Collective Retirement Account Key features of the Collective Retirement Account The Financial Conduct Authority is a financial services regulator. It requires us, Old Mutual Wealth, to give you this important information to help you

More information

Equity release. A guide for those considering unlocking the value in their home

Equity release. A guide for those considering unlocking the value in their home Equity release A guide for those considering unlocking the value in their home Purpose Equity release is a big decision that will affect the rest of your life. It will mean giving up full control over

More information

Freedom and Choice in Pensions. Your guide to the changes

Freedom and Choice in Pensions. Your guide to the changes Freedom and Choice in Pensions Your guide to the changes Contents Freedom and Choice 3-5 in Pensions Buy an annuity 6-7 Remain invested - 8-9 entering drawdown Take a cash lump sum 10 Will providers offer

More information

Make the most of your retirement. Retire with Friends. It s good to talk to Friends

Make the most of your retirement. Retire with Friends. It s good to talk to Friends Make the most of your retirement Retire with Friends It s good to talk to Friends You can count on Friends Retirement today looks a lot different than it did for previous generations. It s good news. There

More information

Important information. Key Features of the Teachers Additional Voluntary Contributions (AVC) Scheme

Important information. Key Features of the Teachers Additional Voluntary Contributions (AVC) Scheme Important information Key Features of the Teachers Additional Voluntary Contributions (AVC) Scheme > Contents About this booklet 4 About the Teachers AVC Scheme 5 Its aim 5 Your commitment 5 Risks 6 Questions

More information

Conventional Lifetime Annuity Options Your Questions Answered

Conventional Lifetime Annuity Options Your Questions Answered Conventional Lifetime Annuity Options Your Questions Answered 0845 077 7077 (8.30am-6pm weekdays) Calls may be recorded for training and monitoring purposes. www.425fs.co.uk Contents 1. Introduction to

More information

Guide to Annuity Purchase

Guide to Annuity Purchase Fiducia Wealth Management Limited Guide to Annuity Purchase September 2012 For Professional Advisers Only Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Colchester, Essex, CO7

More information