DEAR TRICIA
Need some practical financial advice? YOUR MONEY Editor Tricia Phillips and her team can help
Q I earn just less than £10,000 working three days a week. I don’t get automatically enrolled into my firm’s pension scheme. Can I ask to be enrolled?
A Yes, you still have the right to join a workplace pension, and you might find that your employer will make contributions too – although they are not legally bound to do this for workers earning less than £10,000. Many do enrol all of their staff into schemes under the same contributions system, regardless of their pay level.
Q My interest-only mortgage comes to an end next year but I’ve heard nothing from my lender about my options. I can’t afford to repay the full outstanding balance. Will I be able to re-mortgage on to another deal?
A It’s likely your lender will want you to either repay the debt in full or re-mortgage onto a capital and interest deal. If you can’t find a solution with your current lender, there are more providers getting into the later-life mortgage market, offering loans up to age 85 and beyond with a range of products including retirement interest-only deals. Firms in this market include Bath Building Society, Hodge Lifetime, Leeds Building Society, Nationwide Building Society, Shawbrook Bank and Vernon Building Society.
Q I’m in my late 60s and my life insurance expires soon. I want to be able to leave something for my funeral costs and a nest egg for my wife. Is there anything I can do?
A The most appropriate cover would be a Whole of Life plan
which is guaranteed to pay out on your death. You decide the sum assured that you want to leave, and the premium will be subject to medical underwriting.
Q I have about five pension pots from various jobs and I wondered if I should, and could, transfer them into one fund. Is there anything I should be wary of?
A It’s likely they could be transferred, yes. However, I suggest you seek a professional review of each plan, which includes all plan features, performance and
charges, along with a comparison of any proposed new plan. You need to ensure you are not giving up any guaranteed benefits from any of your existing plans.
Q If I owned my home before I got remarried does it still mean my new wife is entitled to half of it should we break up?
A A court will usually look at both of your personal incomes, all your assets including your home, and the standard of living you both enjoyed during the marriage. Unless you have jointly agreed otherwise, that is.