DEAR TRICIA

Need some practical financial advice? YOUR MONEY Editor Tricia Phillips and her team can help

QI was in my employer’s finalsalary pension scheme for 37 years, but a few years ago the firm closed it. What happens to the money accumulated in the scheme? When will I receive this and will it be as a lump sum?

It becomes a deferred pension. You should receive your built-up pension income at the scheme’s normal retirement date which is usually age 60-65. You will be able to exchange some of that income for a tax-free lump sum.

AQYou recently replied to a reader regarding gifting money to family. Does the £3,000 per year limit without tax implications only apply to people whose estate will be subject to inheritance tax?

No. Everybody is entitled to this annual allowance. However, it is not truly effective unless there is an inheritance tax issue.

AQI’m wondering if I need life insurance or critical illness cover. I can’t afford both. What are the key things I should consider?

AIt depends what the reason is for the cover. Is this to cover a loan, such as a mortgage or family/ dependant protection?

Without this information it’s difficult to guide you. Life insurance pays out a lump sum on death to your dependents.

Critical illness covers you and typically pays a lump sum if you are diagnosed with an eligible lifethreatening illness.

QDo you need a really good credit rating to take out a 0% balance