Assess your options when saving for retirement
QI’M IN my 30s and want to put more into my pension savings, but my employer says I can’t.
What other options do I have to save more towards my retirement?
AYOU could start up a stakeholder pension, a personal pension or even a self-invested personal pension (SIPP). All have varying retirement features, investment options and charging structures, so you need to choose the one most suitable.
Alternatively you could build up savings in say, ISAS, to create a tax-free additional pot of cash for your retirement.
I would suggest you speak to an independent financial adviser to help you choose the most suitable option for your circumstances.
QI CAN start drawing my state pension in October and I’m thinking of giving up work early next year. Should I wait until the new
tax year to access my private pension to help keep the amount of tax I pay as low as possible?
ANOBODY likes paying tax, so if you can afford to wait until the new tax year, then yes. It is also possible to defer your state pension too, if you want.
QMY BOYFRIEND and I have just bought our first home. Do we each need to take out life insurance or can we buy a joint policy?
Or would some other form of protection be best to cover our mortgage repayments?
ALIFE cover pays out in the event of death, and it is worth having.
However, if you want a policy to cover your monthly mortgage repayments then you need to consider mortgage payment protection insurance, which is designed to cover your repayments in the event that an accident, sickness or unemployment stops you from working.
QIS THERE a limit to how much my parents will have to pay for their care?
AYOUR parents are selffunding, so typically when their capital reaches less than £23,250 the local council usually assists with funding.
I suggest that you request another financial assessment a few months before you reach that point.
QIS THE £85,000 limit on how much cash is safe in a bank account per person or per account?
ATHE Financial Services Compensation Scheme protection limit is per person, per bank. So, a couple can have £170,000 in joint names with a particular bank.
You need to double check that any banks into which you are proposing to put cash are covered by the scheme.
Also, if you have several pots of cash, check that the banks concerned are not part of the same group.
Life insurance is worth while
It is costing almost £8,000 a month and we are quickly running out of cash from the sale of their home.