Tag Archives for " Financial Services "

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!

Are you at Risk? Part 2 – Permanent Health Insurance Explained!

After my last Blog on Critical Illness Cover, I thought I would do a follow up explaining another type of insurance that I get asked about frequently – Permanent Health Insurance (PHI)

I found this quick guide on www.adviser-hub.co.uk

What is PHI?

Regardless of whether you are single or have several financial dependents, if you are suddenly unable to work, your income will disappear completely – and this will have a direct impact on both you and those around you.

Permanent Health Insurance (PHI) is less well known than life assurance but is just as important. In the event that you have an accident or contract a serious illness and are unable to work, PHI is designed to replace the income you lose. This is typically, up to three quarters of your gross income (ie: approximately your net take-home pay), minus any state benefits for which your situtation might mean you become eligible.

This income is paid until retirement age, until the end of the policy term or until you are able to return to work, whichever comes first. Consequently, whilst you are rehabilitating or coming to terms with changes in your life, you can be reassured that your financial position will be unaffected and that the bills will continue to be paid.

This type of policy can be of particular benefit if you are selfemployed, ie: when your job does not come with any sick pay or group pension & protection scheme benefits (of which this form of cover can sometimes be a part).PHI has a reputation for being expensive, however, it comes with a choice of deferral periods and the longer that deferral, the lower the risk. Therefore, if cost is an issue, simply extend that deferral period beyond 1 month to perhaps 3, 6 or even 12 months, and the costs come down significantly. If you receive minimum sick pay from work or savings which can get you
through the short term, this cover can be very cost-effective.

Here at Reeves Independent we would gather a full fact find to fully understand your whole situation and research appropriately from this. This would then enable us to present to you the best options in respect to protecting the wellbeing of you & your family in the unfortunate event of ill health.

For a FREE no obligation chat about your requirements then call 0191 281 9862 or e-mail info@reevesifa.com NOW!