Posted September 14th, 2009
Here are three simple tips to increase your income in retirement.
1. Use the Open Market option
Did you know that not all annuity providers are equal. Having saved all your life into a pension, you might expect that the income on offer from your existing provider would be competitive. However, this is not always the case and it can pay to shop around.
In my experience, increases in income of up to 25% are not uncommon. So, based on the average pension pot at retirement of £24,000, this increase is roughly the same as having an extra £6,000 added to your retirement pot.
2. Enhanced Annuities
It is estimated that 40% of people would qualify for an enhanced annuity as they have smoked, are taking or have taken prescription medication and have been hospitalised for a medical condition. If this is you, an enhanced annuity could seriously boost your annuity income even further. Based on the average £24,000 pot, an enhanced annuity could add nearly £10,000 to the basic pot, an increase of c.40% .
If you are suffering serious medical problems, you may even qualify for an impaired life annuity which will offer much higher rates of income based on a lower life expectancy.
It pays to check whether your annuity provider is taking your medical history into account.
3. Advice pays
Financial advice on annuities is not free but by going direct you may think that this will save money. However, the costs associated with selling an annuity cover a number of things - advertising, commission, etc. These costs are not discounted when applying direct with a provider.
Further information
Our retirement review service can help you to make the right choice – and maximise the income available.. We take a detailed look at what you have, what your plans are and what can be done – and then seek out the best solutions for you.
If you would like more information, call us on 01204 663904 and we can discuss the benefits and outline the process in more detail, without any obligation on your part. It will take only a few minutes – but could end up saving you thousands of pounds.
Tags: annuities, annuity, commission, enhanced annuity, Financial Advice, impaired life annuity, income, medical history, OMO, open market option, pension, Retirement | Posted in Retirement |
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Posted August 4th, 2009
It is as if children have become a luxury item. From their first squeal through to the end of their time at university, you will pay out more than £185,000*. This can be a hefty chunk of your after-tax income and it is therefore worth planning ahead to minimise the burden.
However much you have available, you can find an option which is suitable. Some will be specifically designed for children – and some will even have tax benefits thrown in.
Choosing the right option
First, there is the Child Trust Fund which the Government starts for you by offering a donation. Invested well, this can make an important contribution to future costs, particularly if you – and other relatives or friends – top it up over the term. Second, there are the friendly society children’s bonds, with low minimum investment levels, available to anyone connected with you, including friends and god parents as well as close relatives.
Both these options come with tax breaks. However, the list does not end there. With many generic products also now offering minimum investment levels of just £20 or £30 a month, a standard fund may be just as suitable. Taking costs, your tax position and your attitude to risk into account, some could be used instead of – or perhaps as a top up to – the more tax efficient options.
Planning for your children’s future
With such a large range of options available, making the right choice can be difficult – and take a significant amount of your time as you search through the different offerings.
Alternatively, we can help. Not only can we quickly outline what the different options mean for your child’s future, we can also assess your needs in the context of your situation, with full knowledge of the wide range of products available.
For more information on how you can make the most of the money available to your child, please give us a call on 01204 663904 or email advice@white-well.co.uk.
* Source: Liverpool Victoria, Annual Cost of a Child survey 2007, to age 21; published Jan 08.
Tags: Child Trust Fund, Children, Financial Advice, Financial Planning, Government, Kids, University | Posted in Investing for Kids |
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