Question:
Are you independent?
Answer:
Yes we are independent financial advisers with access to whole of market on an agreed remuneration basis be that fee , commission or offset.
Question:
How much do I owe you for this initial consultation?
Answer:
No charge is made for the initial information gathering process. All subsequent recommendations will be subject to an agreed remuneration basis which is detailed in our terms of business.
Question:
How much State Pension am I likely to get?
Answer:
You can request a State Pension forecast from The Pensions Service which will give you an estimate of your
- Basic State Pension
- Additional State Pension (also called the State Second Pension and formerly known as the State Earnings-Related Pension Scheme (SERPS))
Question:
I only have a small pension fund do I have to buy an annuity with it?
Answer:
If the total of all your pension funds is less than a minimum amount, you can take some or all of your pensions as a cash lump sum, rather than taking an income. This is known as trivial commutation.
You must be between at least 60 but not yet reached 75 and all the pension funds which you want to “commute” must be converted to cash within a 12-month period.
A quarter of the money you will get is tax free and the rest will be taxed as income.
You don’t have to “commute” all your pension funds, but bear in mind that it might be difficult to get a retirement income from small funds because many annuity providers will not take funds below a specified minimum, say £10,000.
Question:
Where can I get the best deposit rates for my cash?
Answer:
It depends on whether you wish to have immediate access to your deposit capital. If you can afford to tie up any deposits for a period of time, say 6-24 months, then better fixed term rates will be available from many banks or building societies compared to short term current accounts can offer. You should consider using your ISA allowances to avoid payment of any tax on your interest payments (all non tax payers should look to avoid this by completing form R89 to claim gross interest on bank deposits). Particularly for those aged over 50, there are often better deals available from UK banking institutions or affinity groups. We can assist in guiding you toward the most suitable home for your short term cash deposits.
Question:
Where is best place to invest capital for income?
Answer:
In many instances, it will depend not only on your need to access capital easily but also your views of risk in terms of investing longer term and your tax circumstances. Both life assurance bonds and collective schemes (such as unit trusts) may have value as will some National Savings products for certain investors. Using a life assurance bond can defer income tax into the future which can be useful for some investors, whereas using your full ISA allowance annually to build up a savings pot held outside of UK income and Capital Gains tax rules from which you can draw a fixed or natural level of income is another serious option. A range of products including short (or long) term Annuities, Income Bonds offered by National Savings & Investments and certain Fixed Term deposit accounts provided by UK banks amongst others can also be suitable. One must not forget that your pension (state or private) could fit into the “income” category and you may receive tax relief as well by making contributions to a private pension arrangement. To get the best from your income investments you should speak to your financial advisor to discuss your overall requirements particularly with respect to income levels, personal taxation and access to capital in future.