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Lincolnshire

Can You Take Your Pension Before 55?

Can You Take Your Pension Before 55?

By | Lincolnshire | No Comments

You cannot usually take money from your pension pot until reach the age of 55, however there are some cases where it may be possible. If you are seriously ill you may be able to take your pot early, regardless of your selected retirement age. The rules on taking your pension before the age of 55 depend on your pension provider.

If you think you may be eligible to take your pension early due to ill health, it is advisable to seek independent pension advice. A financial adviser that specialises in pension advice will be able to advise you on your best course of action and will help you determine whether you can access your pension pot early.

If you are looking for pension advice in Lincolnshire, we can help you find a pension adviser to help you with all aspects of pension planning, including taking your pension pot early due to ill health. Our recommended financial advisers provide pension advice in Lincolnshire to work with you to ensure you have the most effective pension planning strategies in place. All of the financial advisers we recommend provide advice that is tailored to your unique circumstances.

Taking your pension early due to ill health

If you are unable to work due to illness, you could be eligible to take your pension before the age of 55 or your selected retirement age. Your eligibility will depend on the rules set out by your pension adviser and their definition of ill health. A financial adviser will be able to help you determine the rules of your pension scheme and whether you are eligible.

Taking your pension early if you are seriously ill

If you have been diagnosed with a terminal illness, you may be able to take your whole pension pot tax-free. This could apply to you if:

  • You are expected to live for less than one year
  • And your pension pots are worth less than the lifetime allowance of £1 million.
  • Can you take the State Pension early?
  • There are not currently any provisions in place for taking your State Pension early. The earliest you can begin to claim your State Pension is when you reach your State Pension age, which will depend on your gender and the year you were born.

If you are looking for pension advice in Lincolnshire we can help you find a specialist pension adviser that can provide advice on all aspects of pension planning, including whether you are eligible to take your pension before your selected retirement age.

Seeking pension advice will help you to gain a clearer understanding of the different options available to you and ensure that you have the most effective strategies in place for your personal circumstances.

At PensionAdvice.org we can help you find a FCA registered financial adviser for independent pension advice in Lincolnshire. The financial advisers we recommend offer bespoke pension advice in Lincolnshire on all aspects of pension and retirement planning.

State Pension Triple Lock

What is the State Pension Triple Lock?

By | Lincolnshire, State Pensions | No Comments

In recent weeks you may have seen a lot in the news about the State Pension triple lock guarantee, but what exactly is the triple lock and what does the future hold for the guarantee? The State Pension triple lock was introduced in 2010 by the coalition government to guarantee that the basic State Pension would increase each year by either:

  • Price inflation
  • Average earnings
  • 2.5%

Whichever is the highest of these three factors determines how much pensioners will receive in their annual rise. The guarantee was introduced to help bring pensioner income in line with wages. While this has been beneficial to pensioners, the UK State Pension is still one of the lowest in Europe. At its fullest amount the New State Pension is £159.55, which while an improvement on the basic State Pension which is currently £122.30, it is unlikely to be enough to rely on in your retirement.

If you are at the earlier stages of planning for your retirement it is important that the state pension is not relied upon as in the future it may not exist in the capacity it does today and even if it is still in existence when you reach retirement age, it will likely not be enough for a comfortable life in your later years.

The Future of the Triple Lock Guarantee

While Prime Minister, Theresa May had confirmed that the triple lock will remain until at least 2020, the upcoming snap election could alter those plans and see the guarantee running for longer or being scrapped in favour of a double lock guarantee.

A double lock guarantee would see the State Pension rise year on year in line with either price inflation or average earnings, whichever is highest. Scrapping the 2.5% increase element of the triple lock would be a more cost effective solution for the government.

While the future of the triple lock guarantee is currently unknown and will likely become clearer in the coming months, for now and possibly the next three years at least, the State Pension will continue to increase by at least 2.5% each year.

Pension Planning Advice

If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

At Pensions.org we can help you find a registered financial adviser for pension advice in Lincolnshire. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Self-Employed Advised to Plan for Retirement

Self-Employed Advised to Plan for Retirement

By | Lincoln, Lincolnshire | No Comments

It is anticipated that many self-employed workers do not have sufficient pension saving plans in place to provide an income for their retirement. While many employed workers have had the opportunity of auto-enrolment workplace pension schemes, this initiative does not include the self-employed meaning they need to set up their own pension savings plan to ensure they have a sufficient income in retirement.

Although, for many self-employed workers this can be a difficult task. Variable income plays a big part in why self-employed workers are unable to commit to regular retirement savings. Not knowing what they have coming in each month, makes it much harder to calculate what they can afford to save each month. And with the absence of employer contributions their pension pots may grow slower than someone who is employed.

If you are self-employed it is good practice to seek pension advice from an independent financial advisor to help you understand and determine your financial situation and help you to implement pension planning strategies that will help you reach your retirement income goals.

The experienced team of independent financial advisors at Castlegate provide pension advice in Lincoln and across the East Midlands. We regularly work with self-employed workers to provide support and guidance to ensure they have the best retirement planning strategies in place for their personal circumstances and financial objectives.

Our independent financial advisors provide pension advice in Lincoln and the surrounding areas to ensure you have the most efficient strategies in place and help you choose the most suitable type of pension for your requirements.

As a self-employed worker you will still be eligible to claim the state pension, for many this will not provide an adequate income for their later years – making it imperative for the self-employed to make additional plans for their retirement. Also, it is important that the state pension is not relied upon as in the future it may not exist in the capacity it does today.

Types of Pensions for the Self-Employed

The majority of self-employed workers use a personal pension for their pension savings, there are three types of personal pension:

A Personal Pension Plan

– A personal pension plan helps you save money for retirement and is available to any UK resident who is under 75 years of age.

A Stakeholder Pension Scheme (SP)

– A Stakeholder Pension is a type of personal pension plan designed to provide an optional lump sum and income in retirement.

A Self Invested Personal Pension (SIPP)

– Unlike a standard personal pension, a SIPP holder has a much wider choice of assets to invest in, each of which can be selected to meet the individual’s personal circumstances and requirements.

Each of the different types of pension plans have their benefits and the one that is best suited to your requirements will depend on your personal and financial circumstances. It is recommended that you seek advice from a regulated financial advisor such as Castlegate, who provide pension advice in Lincoln and across the East Midlands.

If you are looking for pension advice in Lincoln or across the East Midlands for support and guidance with retirement planning, please do not hesitate to get in touch to talk about the most appropriate investments products for your personal circumstances and financial objectives.

State Pension & Retirement

Will your State Pension Provide Enough Income for your Retirement?

By | Lincolnshire | No Comments

Whether you are coming up to retirement age or are at the early stages of planning for your retirement, you may be wondering whether your State Pension will provide a big enough income for a comfortable retirement. In many cases and even with the new rates, the State Pension is unlikely to provide a great enough income for a financially secure retirement.

It can however be a great top up to your other pension schemes. The New State Pension came into force in April 2016 and is applicable to those who are a:

  • Man born on or after 6 April 1951
  • Woman born on or after 6 April 1953
  • And have at least 10 qualifying years on your National Insurance record
    • How Much is the New State Pension?

      The amount of New State Pension you will receive will depend on the number of qualifying years you have on your National Insurance record, these can be consecutive or non-consecutive and include National Insurance Credits and voluntary National Insurance contributions.

      At its fullest amount the New State Pension is £155.65 per week, rising to £159.55 on April 6 2017. Which while better than the basic State Pension (currently £119.30 a week, rising to £122.30 on April 6 2017), it is unlikely to be enough to rely on in your retirement.

      If you are at the earlier stages of planning for your retirement it is important that the state pension is not relied upon as in the future it may not exist in the capacity it does today and even if it is still in existence when you reach retirement age, it will likely not be enough for a comfortable life in your later years.

      Seeking pension advice from an independent financial adviser will help you to gain a clearer understanding of the different options available, help you calculate how much you will need and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

      Should you Have Another Pension?

      As the State Pension is likely to be significantly less than your income it is advisable to have another pension plan in place to ensure you will be financially secure in your retirement. There are many options available and an independent financial adviser will be able to advise you on the best options for your personal circumstances and financial objectives.

      When thinking about your retirement and how much income you will require from your pensions it is important to consider the type of retirement you want, such as if you want to travel or take up hobbies and also the day to day expenses such as food and household bills. Thinking about these factors at the beginning of your pension planning will give you a clearer understanding of the right type of pension for you.

      If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

      The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

      At Pensions.org we can help you find a registered financial adviser for pension advice in Lincolnshire and across the East Midlands. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

A Guide to Auto-Enrolment Workplace Pensions

A Guide to Auto-Enrolment Workplace Pensions

By | Lincolnshire | No Comments

In the past many employees may have missed out on the opportunity of a workplace pension, either because they were not offered by their employer or because the employee didn’t apply to join their company’s pension scheme. By April 2019 every employer must provide a workplace pension to those who are:

  • Aged over 22
  • Earn more than £10,000 a year
  • Work in the UK

Providing you are eligible and meet the above criteria you will be automatically enrolled in the pension scheme provided by your employer. While many employers have already adopted the auto-enrolment pension schemes, the law for them to do so does not come into force until April 2019, so your employer has until then to provide a pension scheme if they are not already doing so.

Although you will be automatically enrolled into your employers auto-enrolment pension you can opt out, but in many cases, you must be opted in to be able to opt out. If you are unsure if the auto-enrolment pension scheme your employer is offering is worthwhile it is advisable to seek financial advice from an independent financial adviser before making any changes.

Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available, help you calculate how much you will need and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

How do Auto-Enrolment Workplace Pensions Work?

Auto-enrolment pensions are designed to help you build a pension pot for the future, you will be required to make a monthly contribution which will be a percentage of your pay, your employer will also contribute and you will receive a tax relief from the Government to help you build your pension fund.

Depending on the type of scheme offered by your employer you may be able to increase your contribution amount, this could mean that your employer will contribute more too. The more you pay into the scheme the greater the benefit for your retirement.

It is important that your employer provides you with information about the scheme prior to enrolling and you should seek independent financial advice to make sure it is the best option for your personal circumstances.

What Happens to your Pension When You Change Jobs?

If you are enrolled in an auto-enrolment workplace pension scheme and change jobs, you may be able to transfer your current pension to your new employer. This will depend on the rules of your current auto-enrolment pension scheme and the rules of your new employer’s pension scheme. It is always best to seek independent financial advice on transferring pensions before making any changes to ensure you are making an informed decision.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

At PensionAdvice.org we can help you find a registered financial adviser for pension advice in Lincolnshire and across the East Midlands. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Do I Need a Pension?

Do I Need a Pension?

By | Lincolnshire | No Comments

Whether you are nearing retirement age or are just entering the world of work, you may find yourself asking whether you need a pension. While most people will qualify for the State Pension, in many instances this may not be a sufficient amount to provide a comfortable standard of living for you and your family.

One of the ways to ensure your retirement years are comfortable and free from money worries is to pay into a private pension. There are many different types of pensions available and the one that suits you will depend on your personal circumstances. You may also be unsure of how much you will need for retirement or what your current arrangements will provide.

Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available, help you calculate how much you will need and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

If you are looking for independent pension advice in Lincolnshire and the surrounding areas, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement.

How Do Pensions Work?

Pensions work by putting money into a pension fund during your working life, which can then be accessed once you reach retirement age. Although there are many different types of pensions such as workplace pension schemes and personal pension schemes, they can be broken down into two main types:

Defined Contribution

Where you and in some cases your employer pay money into your pension which will build your final pension pot.

Define Benefit

This is where your final pension pot is based on your salary and how long you have worked for your employer.

Pensions vary depending on their type and the offering from different pension providers, but you can usually choose to take a lump sum or regular income depending on the rules of your pension scheme. An independent financial adviser can help you understand the difference and determine which is best for you.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice in Lincolnshire and across the East Midlands. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.