As­sess your op­tions when saving for re­tire­ment

Gloucestershire Echo - - CASHING IN -

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.

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