DEAR TRICIA
Need some practical financial advice? YOUR MONEY Editor Tricia Phillips and her team can help
SOUND advice & EXPERT help
Q
I’ve been contacted by a firm offering me a guaranteed 8% return on a property investment abroad. I’m over 57 and have pension savings I can access. This is the best interest rate I’ve seen for years and I’m tempted. A The golden rule is this: If it seems too good to be true, it usually is. I’ve read lots of horror stories about people losing their pension funds to this type of scheme. Before taking up any investment option you should check the Financial Conduct Authority’s website for scam
alerts and advice (fca.org.uk/scamsmart), and you can ensure a firm is FCA registered at register.fca.org.uk
Q
My husband and I own our property as tenants in common in a trust. Upon death, I think each share is split between our adult children. Can you remind us what happens on first death? A On the first death that share of the property simply falls into the property trust. The surviving spouse can remain in the property. However, it must be maintained and kept in good repair.
Q
I have paid National Insurance contributions for more than 50 years. I was opted out for five and have found out my state pension will be lower due to this. I thought you needed 35 years of NI to qualify for full state pension, I’m still in excess of that.
A
In 2016 the state pension saw a big change. While the aim was to make the system fairer for all and easier to understand, it can still be a minefield – and some retirees have lost out from the changes. It may be worth checking your
NI record by requesting a statement from HMRC. You can do this at gov.uk/ check-national-insurance-record or call 0300 200 3500. Also, try the Pension Service on 0800 731 0469 to check your pension.
Q I’ve just bought my first home. Is now the time to look at taking out life insurance, or should I be considering another product to protect my finances?
A If you can’t pay your mortgage your home may be repossessed
without some sort of cover. Therefore, first you should consider having appropriate and sufficient income protection, and possibly redundancy cover depending on your occupation status.
Q Instead of buying Christmas presents for the grandchildren we want to start savings accounts to help their financial future. Can we
do this or do we need their parents to open accounts for them?
A If you want the accounts to be in their own names then most require the parents to initially set them up. Thereafter, you can usually contribute without notice. Be aware there are often financial limits on what you can save in different types of child accounts.