Financial freedom Deciding what to do with pension savings – even if you’re still working On 6 April 2015, the Government introduced major changes to people’s defined contribution (DC) private pensions. Once you reach the age of 55 years, you now have much more freedom to access your pension savings or pension pot and to decide what to do with this money – even if you’re still working. Depending on the scheme, you may be able to take cash lump

Art of bond investing Portfolio balancing, negating stock market volatility and lowering risk A bond is an IOU, typically issued by a government or company (an ‘issuer’). Companies issue bonds to meet their expenditure or to settle out their debts. Governments also issue bonds in order to settle any financial deficits of the government, and also to bring development. When issued by a company, they are referred to as ‘corporate bonds’. By buying a bond, you are lending the issuer money.

State Pension New changeover arrangements designed to be simpler than the old system The State Pension changed on 6 April 2016. If you reached State Pension age on or after that date, you’ll get the new State Pension under the new rules. The new State Pension is designed to be simpler than the old system, but there are some changeover arrangements which you need to know about if you’ve already made contributions under the old system. You can claim the

Have you considered whether you or a relative may need to enter residential care or a nursing home in the future?    Most will have considered a pension for the end of their working life, but this is an additional expense that many overlook. Care home bills alone can eat up £50,000 a year and who knows how long you might need to reside there. Specialist care for dementia patients is likely to be higher. Whether you opt for a

Cultivating the art of patience Sticking with a long-term commitment to your investments The longer you’re prepared to stay invested, the greater the chance your investments will yield positive returns. That means holding your investments for no less than five years, but preferably much longer. During any long-term investment period, it is vital not to be distracted by the daily performance of individual investments. Instead, stay focused on the bigger picture. Putting your money into the market Success in the

Protection matters Families face a precarious situation if the worst were to happen Everyone’s circumstances are different, but most people start to think about cover to help protect their family financially once they have children. But research from Scottish Widows[1] reveals that 60% of women in the UK with dependent children have no life cover, leaving their families in a precarious situation if the worst were to happen. The research also shows that only 13% of mums have a critical

Investment trusts Public company aiming to make money by investing in other companies Investment trusts, unlike unit trusts, can borrow money to buy shares (known as ‘gearing’). This extra buying potential can produce gains in rising markets but also accentuate losses in falling markets. Investment trusts generally have more freedom to borrow than unit trusts that can be sold to the general public. BUYING SHARES Unlike with a unit trust, if an investor wants to sell their shares in an

One in eight will retire with no pension in 2018 Excuses to avoid facing the difficult work of saving for retirement Retirement is one of our biggest financial challenges. As with any daunting challenges we face, we tend to think up excuses so we can avoid facing the difficult work of saving for retirement. Worryingly, nearly one in eight people retiring this year (12%) have made no provision for their retirement, including 10% who will either be totally or somewhat

Money’s too tight to mention Financial impact on annual retirement income after divorce However, for some couples, no amount of marriage counselling is enough to avoid a divorce. It’s a tough process emotionally and financially. Untangling two people’s money can be messy. Long before spousal or child support is awarded or your post-divorce budget is in place, you’ll need to prepare your finances for the work ahead. Marriage breakdown impact on pension saving Divorcees who plan to retire in 2018

This time next year we’ll be ‘million-heirs’ Larger individual wealth and expectation of substantial inheritances Put simply, Inheritance Tax is a tax charged on your estate when you die. The Government set a tax-free allowance called the ‘nil-rate band’, which is currently £325,000. Any amount above this level is taxed at 40%. Your estate is the value of everything you own, such as your house, car, investments, life assurance policies and the contents of your home. UK’s massive wealth increase

Making the most of your pensions Have you accumulated multiple plans that need reviewing? Consolidating your pensions means bringing them together into a new plan, so you can manage your retirement saving in one place. It can be a complex decision to work out whether you would be better or worse off combining your pensions, but by making the most of your pensions now, this could have a significant impact on your retirement. Retirement savings in one place Whenever you

Guide to New Tax Year Planning 2018/19 Time to take a tax wealth check? Now that we’ve entered the 2018/19 tax year, a number of key changes have taken place to existing policies, along with some newly introduced initiatives. It’s important to consider these tax implications when making financial decisions. The key changes to existing policies and newly introduced initiatives To help you navigate your way through the main changes that could have an impact on your financial situation, we’ve