Speak to an advisor NOW! Pension tax breaks: this is why they’re about to be cut

As always we like to publish posts that I feel are relevant & important. This is a particularly good article & one that affects a large number of you!

Pension tax breaks: this is why they’re about to be cut – George Osborne’s Wednesday Budget is expected to usher in the first of many cuts to pension savers’ generous tax breaks! http://www.telegraph.co.uk/finance/personalfinance/pensions/11716178/Pension-tax-breaks-this-is-why-theyre-about-to-be-cut.html

Taken from the above article

“What action can you take now?

Drastic and immediately effective reductions to pension tax relief are seen as improbable in Wednesday’s Budget. Previous reductions to both the annual pension contribution limit (currently £40,000) and the lifetime allowance (falling to £1m in April 2016) have been introduced with some warning.

Trying to invest within the next few days simply on the fear of radical action by the Chancellor is impractical and rash, warned Paul Evans of Suffolk Life, a specialist pension provider.

But for those with pension arrangements in place and who were planning to make contributions around now in any case, doing so before the Budget might be safer than waiting.

“But ideally there would be enough time to allow for structured planning,” Mr Evans said. Your earnings, your use of previous years’ allowances and your alternative potential uses of the money all need to be taken into account.

But maximising the very generous tax reliefs – while they last – should be on everyone’s agenda. “What we know for now is that pensions are up there among the most tax-effective investments going,” he said”

It is vital you take advantage of all the tax breaks available to you to ensure you the have retirement you desire!

Speaking to someone about your pension tax relief options is easy with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862 for a FREE initial conversation!

39% of UK employees do not have any form of life insurance

I have just read an article on the Actuarial Post website with some interesting facts & figures on it that I wanted to share with you.

A recent survey of UK employees for Canada Life Group Insurance highlighted the following;

  • Two in five UK employees (39%) do not have any form of life insurance
  • 38% of these have not even given any thought to life protection
  • 34% said they didn’t know how immediate costs (such as funeral expenses) would be met if anything was to happen to them and 37% said they didn’t know how their survivors would meet long term financial demands, including housing costs.
  • Four in five without protection don’t have a will – adding to uncertainty for families

“All these points seem to highlight the extent to which people avoid dealing with this uncomfortable topic and prefer to bury their heads in the sand rather than confront what might happen if they were no longer around. This is particularly worrying as 38% said that, if their survivors were relying only on savings and help from family and friends, they would expect their standard of living to be affected within one year”

A further alarming fact is ONS (Office for National Statistics) life tables suggest that 1 in 8 men and 1 in 12 women in the UK die during their working life (between the ages of 22-65) 3 , which further illustrates the importance of having appropriate cover in place.

It is imperative you ensure your family is protected in the worst scenario!

Speaking to someone about your protection planning needs is easy with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862 for a FREE initial conversation!

Please do take a look at our Protection Service Proposition!

Five pension avoidance scam tips!

A fifth of people over 50 have been targeted by pension scammers, according to research from provider Retirement Advantage. Here are 5 tips to ensure you beat the scammers

1. An offer to help you access your pension savings before age 55. It is only possible to do this in rare situations, for instance if you are very ill, so be careful and always check with your pension provider.

2. A recommendation to take a large amount of money, or your whole pension pot, in a lump sum and invest it. There are significant tax implications if you take lots of your savings in one go, so check the tax position before you make any decisions.

3. Warnings that the deal is limited and you must act now. Choosing the right retirement income product(s) is a big decision and shouldn’t be done quickly or under pressure.

4. An encouragement not to get professional financial advice or talk to Pension Wise. An adviser would be able to explain the rules and tax implications of different options and help you make the best choices for your personal circumstances, so be very suspicious if this is discouraged.

5. Contact by somebody who is not on the Financial Conduct Authority (FCA) register. The register is a public record of all the regulated firms and individuals in the financial services industry, including retirement income providers and investment companies.

Always seek professional advice regarding your pensions!

Speaking to someone about your pension options is easy with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862 for a FREE initial conversation!

Case Study – A growing household!

Last month we received an enquiry via Linked In from a long term contact who wanted some financial planning advice.

Steve was an Engineer & Sue worked as a secretary & they had 3 children. Previously they had taken advice from their bank & as such had accumulated a number of different financial products from different providers & they were unsure whether it all amounted to a plan or not

Our approach

As always Steve & Sue received a free initial consultation via a meeting at our office. Following this we conducted a full review of their existing products, where we found out that they had a number of investment products with high charges & modest returns as well as a number of insurance contracts that provided insufficient cover for them & their 3 children, in the event of illness, loss of income or death.

We discussed with them what their short, medium & long term objectives were,  ensured that we fully understood their risk profile & analysed their insurance requirements.  A complete financial plan was then discussed with them that included the following

  • What age they could retire at & define the income required to meet their lifestyle goals.
  • What correct level of insurance was to ensure their family was financially secure in the event of death or serious illness.
  • How to best ensure the wealth they had worked hard for could be passed tax efficiently to their family in the event of their death.

Steve & Sue will now receive annual reviews to ensure their plan remains on tracks & to take into account any changes to personal circumstances, legislation & investment returns.

Does this case study sound similar to you?

Speaking to someone about your financial planning needs is easy with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862 for a FREE initial conversation!

This is Money article! The insurance that can pay the bills if you can’t work – experts warn too many people still lack a safety net!

Extremely busy at the moment to write any of my own Blogs but as always I try to give my contacts relevant info. This article is a very good one from the This is Money website

The insurance that can pay the bills if you can’t work – experts warn too many people still lack a safety net!

http://www.thisismoney.co.uk/money/bills/article-3094027/Protect-income-no-matter-young-Rise-insurance-policies-pay-wages-stop-suddenly-injury-illness-death.html#ixzz3bRyBoX00

Speaking to someone about your Income Protection needs is easy with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862.

This is Money Article! The cunning tax trick that means millions of workers coming up to retirement could boost their pension by 41%

Another great article I wanted to make sure my contacts read from the This is Money website (http://www.thisismoney.co.uk/money/index.htm)

The cunning tax trick that means millions of workers coming up to retirement could boost their pension by 41%

  • Those able to put extra cash into a pension could benefit from tax perk
  • Benefits far outweigh interest paid on cash savings by High Street banks
  • Trick possible since recent pension rule changes and will only benefit basic rate tax payers

http://www.thisismoney.co.uk/money/pensions/article-3088131/Millions-workers-coming-retirement-boost-income-thousands-pounds-using-simple-trick-allowed-new-pension-rules.html#ixzz3afZgOwqd

Speaking to someone about your pension arrangement is vital to ensure you get the retirement you desire! Why not do that with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862.

Case Study 2 – Pension Planning – Bruce (49 years old)

Bruce (49) came to us because he didn’t know where his pensions were or even how many he had! He was confused because he had received letters from some companies that he didn’t recognise. Furthermore he had received lots of different valuations & he didn’t know which ones were correct.

Bruce gave us his authority to look into his different pension plans. We then wrote to the various companies & asked them to provide us with information about his pensions, & an up-to-date value of his plans.

Once we had all the information from the providers we analysed them & prepared a straightforward report which showed all of his pensions together and what they were worth in total. Furthermore we provided Bruce with a number of recommendations, which we discussed with him on a face-to-face basis. He was then able to make the best decision for him that that suited his current & future needs.

Bruce ended up moving 5 of 7 pensions into a SIPP (Self-Invested Personal Pension) on a platform. Moreover he was able to put his other investment vehicles, including ISA’s & unit trusts onto this platform. This arrangement means it’s much easier for Bruce to understand his current position as well as giving him the control he desired.

Finally Bruce has become a Portfolio Management Client & therefore receives regular reviews to ensure his pension is working as hard as possible for him. This will hopefully then give him the retirement he desires!

Does this case study sound like you?

Speaking to someone about your pension arrangement is vital to ensure you get the retirement you desire! Why not do that with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862.

Case Study – Pension Planning – Mr D (56 years old)

Recently Mr D (56) came to us via the medium of Linked In for help with his pension planning.

He had a few plans (5 in total) with different companies and he didn’t understand what he had. On top of this he had no idea what they were worth, how to find answers, and most importantly – when he could retire!

Mr D wanted us to explain his information to him in a way that he could easily understand.

After an initial dialogue where we gathered some base facts & established his needs we sent off to the relevant pension providers to gather the information on his plans. Some of his plans had started many years ago, so the information was quite complicated.

Once we had all the information from the providers we analysed them & prepared a straightforward report which showed all of his pensions together and what they were worth in total. Furthermore we provided Mr D with a number of recommendations, which we discussed with him on a face-to-face basis.

Mr D ended up moving his 4 of his old, poorly performing pensions to one new plan, which he finds much easier to understand and which has the chance of giving him a bigger pension when he retires.

Furthermore Mr D has become a Portfolio Management Client & therefore receives regular reviews to ensure his pension is working as hard as possible for him. This will hopefully then give him the retirement he desires!

Does this case study sound like you?

Speaking to someone about your options is imperative! Why not do that with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862.

The lessons learnt from Rik Mayall not having a will!

As I’m sure we all know that Rik Mayall sadly passed away last year. Unfortunately he didn’t have his Wills & Estate Planning in order, which has huge tax implications on his family

Please do read the following 2 articles from the Telegraph & Daily Mail. They really do highlight the importance of having a valid will in place & how you can protect your family in the event of death!

Rik Mayall’s inheritance tax trap – and how to avoid it. By not writing a will, Rik Mayall has left his family facing potentially hefty death duties on his £1.2 million estate. What would happen if you died? http://www.telegraph.co.uk/finance/personalfinance/tax/11549890/Rik-Mayalls-inheritance-tax-trap-and-how-to-avoid-it.html

Rik Mayall’s family face a huge tax bill – because he failed to make a will to deal with his £1.2 million estate http://www.dailymail.co.uk/news/article-3045275/Rik-Mayall-s-family-face-huge-tax-bill-failed-make-deal-1-2million-estate.html#ixzz3XxUvck6Q

Ensuring you have your Wills & Estate Planning is easy with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862.

Typical questions other pension savers like you ask are!

As I’m sure your aware last week saw the introduction of the much talked about pension changes. We have been inundated with phone calls from clients & prospective clients who want to understand their options as we enter this new era of pension freedom.

Have you asked yourself any of the following questions?

  • Do the new rules affect me, even if I’m not retiring yet?
  • When can I start taking money from my pension?
  • Should I take the 25% tax-free cash as soon as I get to age 55?
  • How much tax would I pay on further withdrawals?
  • How exactly do I pass my pension on to my children?
  • Should I move money in savings accounts and other investments to my pension?
  • How do I ensure I don’t miss out on the benefits of the new rules?

Speaking to someone about your options is imperative! Why not do that with Reeves Independent, just email info@reevesifa.com or call us on 0191 281 9862.