Planning your pension in advance?

There are currently 1.38 million people aged over 85, a figure forecast to double in the next 20 years. Dementia also affects one in six people over 80 and one in three over 95, and is a growing priority for the NHS. Even before the promised overhaul of the rules surrounding pensions next April, many people are failing to get the best deals. Earlier this year, the Financial Conduct Authority (FCA) concluded that 80pc of savers who buy their annuity from their existing provider could get a better deal on the open market.

Nest said failings in the annuity market show that even if people feel confident, they are still capable of making mistakes, or “suboptimal” decisions. As experience financial planners at Enable in Bishop’s Stortford we know people tend to lose confidence with money as they get older.  Mark Fawcett, chief investment officer at Nest, has suggested people should maybe aim to plan how they will finance their retirement in their 50s, while their mental capacity to manage money is likely to be in a “sweet spot”.

Drawing upon Pensions Institute research the best time to buy an annuity is when people are in their 70s and 80s. Mr Fawcett also said there should be more financial products that allow people to select options in their 50s and 60s. These would be chosen in advance, ready for when people reach the point at which it makes most economic sense to tie their money up in an annuity, which could be at least a decade later. Such products are not yet available, but there are a number of things people in their 50s can do now to plan for their retirement and Enables’ IFA’s in Bishop’s Stortford can help you lay the foundations of your retirement plan whatever your age.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

What does a Pension 'bank account' mean?

In his Budget in March, Chancellor George Osborne announced a set of radical changes to pensions to allow pensioners greater freedom over how they draw their pension in retirement. The biggest reform is that from next April no-one has to buy an annuity, and people will be able to take their pension pots as cash.

The new rules will, almost allow people to use their company schemes like bank accounts, from age 55, they will be able to dip in and out of their money as they like. All pensions, even under today's rules, allow 25pc of pension money to be taken free of tax. Under the current rules most people have to take their 25pc tax-free pension lump sum within 18 months of them becoming eligible for their pension income. The Treasury also plans to remove this restriction.

What will this means for the future is that savers could take monthly payments from their pension where 25pc was tax free, with the balance taxed at their usual income tax rate. The benefits would be that people could take less of their pension early therefore leaving more invested. This would mean there would be more time for the whole pot - including the 25pc tax-free portion - to grow.

People will still be allowed to take all their tax-free money as a 25pc lump sum if they choose, or, if they decide to take it in uneven chunks (for example if they wanted to take a 15pc lump sum in their first year of retirement, followed by 3pc tax-free lump sums thereafter), they can arrange for their pension pot to be split in two. If you need help making sense of your pension options Enable’s IFA’s in Bishop’s Stortford will be able to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

More Autumn Statement details

One loop hole that the Chancellor has closed off in his Autumn Statement was not so fully reported but he has decided to close off the final loophole enabling investment in subsidised renewables within a tax shelter like enterprise investment schemes or venture capital trusts. Some think this could trigger a last minute dash of funds coming into renewables before the Government ends the existing tax arrangements next year.

The new rules were buried deep within the statement’s supporting documents and indicate that community energy projects and anaerobic energy plants will cease to benefit from EIS, seed enterprise investment scheme and VCT eligibility from next April and   “All other companies benefiting substantially from subsidies for the generation of renewable energy will be excluded from also benefiting from EIS, SEIS and VCTs with effect from 6 April 2015.” 

The rules follow the announcement in the Budget that VCT and EIS could not invest in solar or wind projects. This left hydro and anaerobic digestion, where waste is broken down to produce energy, as the remaining renewable alternatives eligible for VCT and EIS investment.  Robertson Hare partner Philip Hare says the latest announcement could trigger a surge of money coming in before the curtain comes down on them on 6 April. “I suspect there will be a mad rush into these investments up until 5 April a bit like when solar and hydro were excluded in the Budget.

The change is no surprise to Tilney Bestinvest managing director Jason Hollands, who says HM Revenue & Customs was concerned at the double tax breaks and the fact there was no real risk involved. “These are essentially underpinned by Government subsidy and are obviously attractive to investors because you are able to access tax efficient investments which are relatively low risk.” Enables IFA’s are concerned to be on top of changes that may affect wealth management and are happy to help you look at helping you make your long term investments as low risk as possible.


Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Pensions and the Autumn Statement

At Enable in Bishop’s Stortford the current changes around pensions have been much on the minds of many of our clients. The chancellor did not offer any more radical change in pensions but did announce the return of Pensioner Bonds or “Granny Bonds” as they used to be known. The Pensioner Bonds will be issued in January, and are expected to be hugely popular, as ever. They will be available to the more than 11 million people in the UK over the age of 65. The announcement said “there will be a one-year bond, which is expected to pay around 2.8% in interest, and a three-year bond, which is expected to pay around 4%.” Pensioners will be able to save a maximum of £10,000 in each bond – giving them another option for £20,000. The Treasury has also said that only a total of £10bn of the bonds will be issued, suggesting they could sell out very quickly.

The other thing that had clearly been in the pipe line is the Tax free status announced for annuities for dependents of people who die under the age of 75. This means that thousands of retirees who have pension annuities will be able to pass on the benefits free of tax, if their spouse dies before the age of 75. Previously they would have been liable for a 55% "death tax" on money in annuities now they will be able to receive the income from such policies without paying tax.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Stamp Duty changes not so welcome for a few...

Stamp duty on residential property was reformed and came into effect last week so that rates apply only to that part of the property price that falls within each band 0% paid for the first £125,000 then 2% on the portion up to £250,000 5% up to £925,000, then 10% up to £1.5m; 12% on anything above.

Enable’s IFA’s of Bishop’s Stortford can see that for many this is a fairer welcome change to an unpopular and outdated approach which had proved very uncomfortable for buyers around the thresholds. However, the new rates reveal that anyone purchasing a property with a value above £937,500 will be worse off, in some cases by a considerable amount.   For example, a £1.5m property will now attract stamp duty of £93,750, which is £18,750 more than under the old system. In contrast, a £510,000 property will see a 24% reduction in stamp duty and buyers of £210,000 properties would pay 19% less.



 “The Chancellor’s announcement on the changes to stamp duty is excellent news for buyers of properties valued under £950,000, although it is not so good news for ‘squeezed professional middle’ buying above the £1m-mark and is a real blow for all buyers at the top-end of the market.” Said Robert Bartlett, Chestertons’ CEO, “My real concern is how this move has the potential to damage London’s standing as a global city by discouraging wealthy international buyers from investing here and the knock-on effects that this could have to the broader London economy.” Enable’s Mortgage brokers in Bishop’s Stortford are happy to advise on property investments in London and its environs.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Savings in the Autumn Statement

It would have been hard to miss that Chancellor George Osborne had updated the Houses of Parliament about the state of the economy and adjusted various tax provisions in his last Autumn Statement last week.  But Stamp Duty rather took center stage in the press and you might have missed some of his adjustments in savings.

Enable's independent Financial Advisors in Bishop’s Stortford often recommend ISA’s as a saving vehicle and from next April 2015 the ISA threshold will increase  again from £15,000 to £15,250 a modest but useful tax free addition for savers.  Whatever platforms you save across it is nearly always worth your while to max out your ISA allowance as savers who take out an ISA pay no tax on capital appreciation or income.

But perhaps a more interesting decision has been made by the Treasury to enable spouses to inherit their partners ISA’s tax free on their death. In previous years a spouse or civil partner inheriting an ISA would have been liable for tax on the savings. From next April the 6th 2015, however partners who have been bereaved will be able to add their late spouse's ISA’s to their own, without any tax to be paid. The treasury estimate that as many as 150 000 married partners will be affected by the change and George Osborne told MPs, "Pass on your Isa tax free. Pass on your pension tax free. We are delivering fairness for savers."  Enable’s IFA’s in Bishop’s Stortford are happy to help you make the most of your savings.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Should you cash in your pension in 2015?

New pension rules as many of us are now aware will allow you to cash in your retirement pots from April next year if you are over 55 but understanding what to do with the money is tricky. Enable's IFA’s in Bishop’s Stortford are here to help investors consider whether keeping pensions invested might actually result in higher returns.

So if you are 55 and have a pension you will soon be able to take out your whole defined contribution pension but remember income tax will be payable at your marginal rate on any withdrawals in excess of the 25pc tax-free cash sum allowed. Withdrawing a large sum and having that added to any other income that you receive in the tax year could really push up your tax bill so understandably many will want to consider keeping their pensions invested after retirement to avoid any sudden big tax bills.

If you decide to keep your pension invested, you need to ensure a good mix of investments reflecting; safety, inflation-proofing and growth. Asset allocation is key when it comes to building a balanced pension portfolio. Diversifying your investments between the main asset classes – cash, fixed interest securities, commercial property and equities spreads your assets and help reduces the overall level of this risk. Of course delaying taking your pension itself is not without risk, the stock market will inevitably continue to move up and down and can have an effect on your retirement income but Enable's IFA’s are here to offer retirement planning advice to help you find the right order of risk or security for you.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Starting a pension plan?

Whatever the current changes in accessing your pension fund Enable's Independent Advisors in Bishop’s Stortford know it is important to have one in the first place. Basically a pension plan is a form of saving to provide an income in your retirement. There are broadly two types of pension plan available.

One is a Defined Benefit pension, often referred to as a ‘final salary' scheme, this kind of scheme pays out a proportion of your salary as income payments when you retire. The other type of pension is a Defined Contribution pension, often referred to as a 'money purchase' scheme. This is where a certain amount is paid into a pension fund (an investment vehicle for your money) and accumulates throughout your working life to provide you with a pot of money to secure a retirement income. A personal pension is a type of defined-contribution pension where you choose the provider and make arrangements for your contributions to be paid. If you haven't got a workplace pension and with many more people working for themselves this is more and more common form of pension.

For the vast majority of people the best way to save for retirement is with a pension but the complexity and cost can make starting something that is constantly put off.  Putting off starting a pension however can be an expensive mistake – a Standard Life survey recently found that UK savers' biggest financial regret was not saving enough for a pension. Starting a pension early means you benefit from compound interest i.e. interest being paid upon interest effectively means the longer you have to save the less you have to put away. The other key advantage to pensions saving is that they are very tax advantageous, in plain English if a basic rate taxpayer invests £80, or a higher rate taxpayer invests £60, the government will top up that contribution to £100. Deciding how to save for your retirement is a vital part of any financial planning and Enable’s IFA’s in Bishop’s Stortford can help you explore your options.


Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Too old to manage your money?

A set of controversial scientific findings by university professors in America have made their way to Britain recently.  The Harvard University research suggests people’s ability to make good financial decisions peaks at age 53 and then starts to decline.

The results come from measuring two types of intelligence that help people manage their money. The first is “crystallised intelligence”, which is based on skills acquired through experience, and therefore improves with age. The second is “fluid intelligence” which is based on the ability to solve new problems, and declines with age.  According to the Harvard academics, overall cognitive performance declines after mid-50s. This is because the ageing process causes the brain to approach a tipping point at which their “crystallised intelligence” stops offsetting the decline in their “fluid intelligence”.

They warn that by the time people get into their 80s, approximately half the population suffer from a significant cognitive impairment, which may make them incapable of making important financial choices. Nest, the government-run occupational pension scheme for British workers, is so concerned by the findings that it has called upon the industry to develop financial products which let people plan their pensions in their 50s, saying that financial decision-making above this age could become “increasingly problematic”.

But Ros Altmann, the Government’s older workers champion, who also studied at Harvard, has branded the research “ageist”. She said: “Everybody is different so there is no point in making stereotypes. There are plenty of people in their 80s who are still very mentally capable.” Whatever your cognitive capacity Enable's IFA’s in Bishop’s Stortford are here to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Pensions: What happens to my annual pension allowance once I take money out?

From next April 2015, the chancellor wants you to be able to do what you like with your pension savings once you reach age 55. With the new freedoms come a set of new rules that can be confusing. Enable’s retirement planning advisors in Bishop’s Stortford want you to be aware of any pitfalls in the new system.  Another thing to be aware of is that once you have taken money out of your pension savings beyond just the tax-free lump sum, the amount you will be allowed to put into pensions in future will be significantly reduced. If you take only your tax-free cash and nothing else, then your annual allowance stays at £40,000 a year. However, as soon as you take money out of a flexi-access drawdown account, or make just one bank-account style withdrawal, you will not be allowed to put more than £10,000 a year into a defined contributions pension scheme again.  (NB Those who have a final salary-type pension will still be able to contribute £30,000).

The new pension rules may seem exciting but as with everything they come with conditions and if you don't really need to take the funds out  or your pension and want to have the chance to build up more pension, Enable's IFA’s of Bishop’s Stortford would suggest thinking very carefully before you take more than your tax-free cash lump sum. There is much to think about in the brave new world of pensions Enables IFA’s wan to help you make the best decisions for you.



Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

What tax will I pay for my new pension freedoms?

The new pension reforms announced by Chancellor George Osborne will give people a lot more freedom over how they invest their life savings from April 2015. The new freedoms may introduce more freedom but they also introduce more complexity to the market Enables independent Financial Advisors in Bishops Stortford could see many people could finding themselves unnecessarily pushed into higher tax brackets without good retirement planning.

Perhaps one of the most important things in the new pension world is to beware of inadvertently tipping yourself into top-rate tax. Any money that you withdraw from your pension fund, apart from your tax-free lump sum will be counted as income in the tax year that you take it.  So if you are still working or have other income of, say, £40,000 a year and you cash in a £40,000 pension fund, £10,000 will be tax free, but the remainder will be taxed, meaning you would have a total income of £70,000 in that year, pushing you into the 40 per cent tax band for much of your pension withdrawal.  If you took £150,000 from a pension fund then you would push yourself into the 45 per cent tax bracket.

Enable’s pension advisors are concerned that many will inadvertently overpay tax – it is  essential to be aware how much tax you will lose if you cash in your pension fund early or take out a large amount. If you delay taking your pension money until your other income falls, or if you plan to take out smaller sums at a time, the tax you pay should be much lower.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

What should I do with my pension savings? Changes you need to know about

From next April, the chancellor wants you to be able to do what you like with your pension savings once you reach age 55, new rules mean if you want to spend your whole fund you can; if you want to take out a bit at a time, you can; if you want to use your pension fund like a bank account, you should be able to do so.

But you don’t have to do anything! Many people approaching retirement age will have personal pension plans started in the 1980s or 1990s. When setting up these funds, you would have been asked to select a retirement date and many would have chosen a birth date between 55 and 65.

About six months before your chosen pension age, the pension company will send out a 'wake-up pack', offering you an annuity. When you get this kind of pack, you may think you have to do something, but you don’t have to and if you are still working, or if you have other pension income, you may benefit from leaving the fund alone to earn extra tax-free investment returns, rather than buying a product, or transferring it or withdrawing the money.

In the past people have tended to believe they had to automatically buy an annuity or income drawdown product, but you don’t and there are lots of other thing you may want to do with your pension. The 'do nothing' option may still be a good one, Enables IFA’s in Bishop’s Stortford can help you with your retirement planning if you're not sure what's best.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Mortgages taken out at highest level since 2007

As experienced Mortgage Brokers in Bishop’s Stortford Enables independent financial advisors have seen lots of changes in the housing market over time. Recently it is interesting to note that despite signs of a slowdown in late summer, figures from mortgage lenders showed that from July to September 188,000 mortgages worth a total of £32.4bn were advanced to first-time buyers and home movers. The Council of Mortgage Lenders said that this was “the highest totals since the final three months of 2007 when the housing market downturn was just beginning”.

It is also the case however, that although rising house prices mean the value of those loans has almost returned to its pre-crisis level, the number was still below the 223,900 recorded in quarter four of 2007, and lower than in any quarter between 1996 and 2008. And the number of borrowers re-mortgaging has picked up, rising by 20% during the month, although despite a fierce price war breaking out between lenders, it was still down by 12% on September 2013.

Paul Smee, director general of the Council of Mortgage Lenders said it had been a year of change, transition and growth as banks and building societies have got to grips with new rules on lending.
He added: “The lending market is healthier than it was a year ago, and set to remain so. Re-mortgaging has returned as a driver of lending volume in the buy-to-let sector. But any fears of over-heating in the housing market are now dissipating as house purchase lending activity seems to be softening.” Whatever your mortgage requirements Enable’s IFA’s in Bishop’s Stortford are here to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Know your terms

As Financial Life Planners Enable’s IFA in Bishop’s Stortford know the old adage for investing well, don’t put all your eggs in one basket’. For long term gains from any investment it is always wise to spread risk and try and diversify across a range of companies, asset classes and geographical regions.

In wealth management there are a ‘traditional’ set of asset classes to make the most of; cash, equities or shares and bonds. There are also a host of ‘alternative’ asset classes that have become much more available to private investors which include commercial property and private equity trusts. Many wealth management companies now use financial wraps to help further mitigate risk but maximise long term gain.

None the less it is always helpful to know some of the terms to understand better the asset classes involve in your wealth management.  So back to basics a share (often referred to as equity) is a unit in a company listed on a stock exchange. If a company is worth £100 million and has issued 100 million shares then each share is valued at £1. The overall value of the company fluctuates based on a variety of factors including demand and supply for the goods or service the company is offering, merger and acquisition activity, competitor activity and the economic environment to name a few, all of which can impact the share price.

Investing in shares can have good long term returns - equities have historically delivered better returns over the long-term than other asset classes such as bonds or cash. But equally there are risks by their very nature stock markets fall. Typically investing in the stock market should be taken as a ten year view, Enable’s IFAs can help you see what is right for you.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Town or Country?

As experienced mortgage brokers in Bishop’s Stortford Enables IFA’s know that it its life style choices that often determine whether we want to live in the town or the country.  But a recent survey indicates that a home in the country costs a quarter more than a home in an urban area, on average at the moment.

Interestingly research conducted by Halifax one of the UK’s leading mortgage lenders found the least affordable rural area was Chiltern district, between London and Oxford, where at an average of £477,526 homes cost 9.5 times local average earnings. The Cotswold district was next, with an average house price of 9.4 times the local salary, at £339,052.

On average homes in rural Britain attracted a premium of £46,475, selling for £225,217 against the typical cost of £178,641 in urban areas outside Greater London. Inevitably the least affordable rural areas were all further south. Across rural Britain, Halifax said, homes cost 6.8 times the typical salary, against 5.6 times salary across urban areas outside London. As a result, first-time buyers are struggling to afford them.

Martin Ellis, housing economist at Halifax, said: “It typically costs significantly more to buy in rural areas with a substantial premium existing in all the regions of Great Britain. This reflects the aspiration of many to own a property in the countryside. As one of the leading mortgages brokers in Bishop’s Stortford Enables experienced IFA’s can help people wanting to move either from town to country or country to town to suit their current life style choices or needs.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

How will the mansion tax effect financial planning?

Mortgage brokers Enable of Bishop’s Stortford have been reflecting on the details of the Labour party’s proposals for a mansion tax were more fully revealed this Autumn,  the so called Mansion tax seems as if it might not be quite as bad as originally promised – although if it came into play it  could still have significant impact on owners of top end homes.

If we have a Labour government after next year’s general election in May the chances of a Mansion Tax are pretty high. The proposed tax seems to be quite popular across the electorate, it is seen as a tax that only a small group, concentrated in London and the South-east would have to pay with enormous benefits for the NHS. The mansion tax was perhaps named to appear to apply to unreasonably large properties, in its current form however it will apply to any residential property worth more than £2m. Savills estimates about 40,000 residential properties are worth between £2m and £3m and about 57,000 homes are worth over £3m. So quite a few clients could be affected.
The proposed tax would operate on a slab basis with a flat-rate charge applying to each slab or band of property value. The bottom band would be £2m–£3m and shadow chancellor Ed Balls has announced the flat-rate charge for anyone in that slab would be £250 a month or £3,000 a year.

A client with this kind of property might also be reasonably concerned about whether a Mansion tax would have a significant impact on the value of their home for inheritance tax purposes. The effect on values could also be important when considering downsizing. Enable's IFA’s are here to help you anticipate any possible changes on the horizon that may affect your wealth management.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Wealth management of property

As leading mortgage brokers in Bishop’s Stortford Enables IFA’s have witnessed alongside the rest of the UK that investing directly in bricks and mortar can clearly lead to significant capital growth and has done for many in the UK over recent years. Property investment often starts with borrowing to buy a home and then paying down the mortgage.

And investors in property over the years have seen huge returns over the years investment in bricks and mortar has proved to be a reliable investment.  Property prices of course are influenced primarily by supply and demand and with supply short in the UK and problems with supply and credit, property has boomed but it can equally fall sharply.

Property tends to perform differently to other asset classes and as ever, the experienced wealth managers at Enable would always recommend diversification across asset classes when considering investing. Historically this is undoubtedly why property has been a corner stone of any portfolio or investment for many years.
 
Investing in property on an individual basis once you have secured your home, can be enormously beneficial but also very risky. In a downturn property can drop dramatically it can also be very slow and expensive to buy and sell. If you are wanting to make sure property is part of your portfolio, beyond your home,  a collective investment in the property sector may be a better bet. Why invest in just one property when you could invest in many. There are lots of diversified property or real estate funds available

Interest rates will change

As experienced Independent Financial Advisors Enable's mortgage brokers in Bishop’s Stortford know it is only a matter of time before interest rates go up.  As the economy continues to gain strength and shows more and more signs of a sustained recovery, the interest on borrowing particularly mortgages will inevitably have to change, in an upward direction.

Although there is still much speculation, and it is clear that even a small increase in interest rates could lead to many more households struggling with their debts, interest rates cannot stay at this long running all –time low of 0.5% for ever. To reassure the Bank of England’s governor Mark Carney has repeatedly emphasised that increases will be “gradual and limited”.  But many believe the first changes are just around the corner and expected to be announced in the first half of next year. Again Mark Carney says the Bank of England has “no pre-set course” and that, “rates will go up only as far and fast as is consistent with price stability as part of a durable expansion with the maximum sustainable level of employment.”

Inevitably the debate as to when will go on and the policy makers will continue to monitor the data and signals indicated with each new release of economic data.  But Enables experienced mortgage brokers of Bishop’s Stortford are sure a rise in interest rates will come and are happy to help you review your borrowing  to try and help you be in the very best financial position you can be when the changes come.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Is the government Help to Buy scheme helping you?

As experienced mortgage brokers in Bishop’s Stortford Enables IFA’s we glad to see the government scheme to help first-time buyers, come into the mortgage market to start with. It’s a scheme that offers up to 20 per cent of the value of a mortgage on a property as government assistance to help those trying to buy a new-build home. The buyer must have a cash deposit of at least 5 per cent and a mortgage lender must provide a loan of at least 75 per cent.

The criticism or the scheme has suggested it helps to fuel rampant house-price inflation. But in a recent report published by the Bank of England they said the scheme was not driving house prices up. The Bank said if you believe the figures, “the average house price in the Help to Buy mortgage-guarantee scheme was £153,800, significantly below the national average” but these mortgage figures were based on June mortgage date, published at the beginning of September. But the latest government statistics on Help to Buy also published recently include data to the end of August. That mortgage date shows that the average price in the first 17 months of the scheme was actually £210,269, significantly higher than the national average property price of £188,374, according to the Nationwide. 

Enables’ IFA’s experience as mortgage brokers in Bishop’s Stortford tells them that it can often be hard to read the date to prove the benefits of mortgage schemes and if you need help making sense of it all we are here to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Property as part of your portfolio

As experienced wealth managers and mortgage brokers in Bishop’s Stortford Enables Independent Financial Advisors often discuss property as part of people’s portfolios either as an investment in a home or as part of a more commercial property fund.



There is much argument as to whether or not favourable conditions in UK property look set to continue but many believe they can. Last year was a turning point in the economy as far as investment in commercial property was concerned. After three to five years of uncertainty and as a result of this market hiatus UK government bonds became increasingly popular as investors looked for wealth preservation. But over the past 18 months, the UK has been increasingly viewed as economically stable and commercial property looks good value on a yield basis relative to other asset classes, which has attracted both domestic and international interest.


The property part of a wealth management portfolio aims to give investors an attractive level of income, at the same time as providing an element of growth in income and capital.  Many property fund’s have historical yields around 4 per cent, which many think is sustainable especially if portfolios focus on high quality buildings in good locations, with strong tenants and with certain assets in London and the South East experiencing  significant rental growth. Sadly the economic recovery is not uniform across the UK so property funds tend to be more focused on the income line produced from properties in other regions. Enable's IFA’s in Bishop’s Stortford can help you make property part of your wealth management plans.



Your home could be at risk if you do not keep up the repayments.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

What is an offset mortgage?

Enable’s IFAs who act as mortgage brokers in Bishop's Stortford can help you investigate it it is a smart and tax-efficient way to cut your mortgage costs.  Only around ten per cent of borrowers currently take advantage of this type of home loan. It works by simply combining your savings and mortgage balances helping to save thousands of pounds in mortgage interest costs at the same time as reducing the term of your home loan when interest rates are low.

For higher rate-tax payers in particular the other key benefit, is that there’s no tax to pay on your savings interest and the equivalent return is the same as your mortgage rate. At the moment with interest rates on instant access and 1-year savings accounts stuck around the 2 per cent park, for many people even if they are not higher rate tax payers, there’s still more to be gained by offsetting your nest egg against your mortgage balance, which in many cases is being charged at upwards of 3.5 per cent.

Bishop’s Stortford mortgage brokers at Enable can see why many people do not necessarily take up the mortgage product as it is a more complex product than many other mortgage products and can be perceived as only suitable for those with large savings balances, but sometimes it pays to really nut out the sums. For example with some mortgage products , someone with savings of £5,000, offsetting this balance against a £100,000 mortgage at 4.00 per cent would save interest charges of £8,016 and take 1 year and 3 months off the term of a 25-year mortgage. Enables mortgage brokers in Bishop’s Stortford can help you work out the best mortgage product for you.




Your home could be at risk if you do not keep up repayments.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

What will next years general election bring?

Enable’s experienced IFA’s know that political change often brings fiscal change and for investments and wealth management tax management is vital. After the round of Autumn conferences all parties are promising major changes to tax, pensions, welfare and property over the next parliament.

Although it is tricky to predict what another coalition might bring these appear to be the key financial element of the key parties:

LibDems:
Wholesale reforms of pensions tax relief
Auto-escalation of pension contributions
New higher rate council tax bands
Higher taxes on investments
Raise the personal allowance to £12,500
No EU referendum unless there is major treaty change

Conservatives:
New schemes to boost home ownership and first-time buyers
Raise the personal allowance to £12,500
Raise the 40p tax band to £50,000
Hold an in/out EU referendum by 2017

Labour:
Raise new taxes from bankers’ bonuses, tobacco firms, payday lenders
Cut higher rate pensions tax relief to 20p
Introduce a fiduciary duty on all financial services staff
Reintroduce Schedule 19 stamp duty on UK funds
Reintroduce 50p income tax band on salaries over £150,000
No EU referendum unless there is major treaty change

Ukip:
Raise personal allowance to £13,500
Create new 35p tax band between £44,000 and £55,000
Scrap 50p income tax band
Leave the EU

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

What is a Personal Pension the basics?

A personal pension is exactly what it says on the tin and you can have one if you're employed but not in a company pension scheme, or you might want to have one in addition to a company pension. Or if you are self employed you may want to set up a personal pension or even if you are not working but can afford to put aside money for retirement you can have a personal pension.

You can pay a regular amount (usually monthly or annually), or a lump sum to the pension provider who will invest it on your behalf. The overall final value of your pension will depend on how much you have contributed over the years and how well the fund's investments have performed. Charges are made for setting up and running your pension and are normally deducted from your fund in the form of fund management charges.

The Annual Allowance for pension contributions is £40,000pa from 6 April 2014 this includes both employee and employer contributions. You can carry forward unused contributions from the previous three years (ie. back to 2011/2012 for 2014/15), potentially allowing contributions of up to £160,000 in a single year. HMRC has confirmed that you do not need to have made a contribution to a pension scheme in a year to be able to carry forward unused allowances – you simply need to have been a member.

For each pound you contribute to your scheme, the pension provider claims tax back from the government at the basic rate of 20 per cent. In practice, this means that for every £80 you pay into your pension, you end up with £100 in your pension pot. Enable’s IFA’s can help you decide if you want to set up a Personal pension.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Robots on the horizon

Enable's IFA’s in Bishop’s Stortford know it is hard to predict the future for investments but if you believe robotics are the future you might be interested to hear that EFT securities recently launched a fund to track the global robotics industry.

The Robo-Stox Global Robotics and Automation GO Units ETF has been listed on the London Stock Exchange and is the first ETF offering focused exposure to companies into robotics. It was developed by Robo-Stox, almost 40 per cent of the index’s companies are North American, with 35 per cent in Asia. Europe makes up just 22 per cent.

Robo-Stox Partners chief executive Richard Lightbound says the world is in the early stages of a “transformational new economic era” founded on robotics slowly becoming more and more part of our daily life. “After the rise of the internet age rapid advances in technology such as machine vision, motion sensors and image and voice recognition are enabling robots to perform increasingly sophisticated and delicate knowledge-based work,” he explains.  “Ageing populations and shrinking workforces will accelerate this trend.”

The annual global supply of industrial robots more than doubled to 170,000 units over the decade to 2013, according to the International Federation of Robotics.  Howie Li says “the robotics and automation industry includes heavy-duty factory lines as well as companies making automatic vacuum cleaners,” also “there are lots of sectors that will be looking at robotics, like agriculture and mining.” If you want to try and make sure your investments are linked to future trends Enables IFA’s in Bishop’s Stortford are here to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Planning a retirement abroad?

If you have always dreamed of retiring abroad Enables’ IFA’s of Bishops Stortford would be happy to help you with your financial planning and investments and there are some big decisions on the horizon for expats as the UK pensions rules change next April.

It is important to note that new rules coming into force next April will prevent those with pensions in unfunded public schemes, known as defined benefit (DB) schemes usually held by people who have worked in the military, the police, NHS workers and teachers, from transferring their pension overseas. The upshot of this means that anyone with savings in one of these schemes –– will find themselves at the mercy of exchange rates when it comes to how much they will get from their pension payments.

If you are serious about retirement abroad and hold a DB pension you still have time before April to move it to a Qualifying Recognised Overseas Pension Scheme (Qrops). Qrops have obvious tax benefits, when you transfer them to a lower tax environment; they ensure your pension is paid in the currency of the country you live in, which removes currency risk. Exchange rate fluctuations are probably the greatest concern for those retiring abroad on a fixed pension amount.

Other types of pension are unaffected; if you want to live abroad so if you are in a defined contribution scheme, personal pension or self-invested personal pension (Sipp) for example, you are free to transfer your pension to a Qrops. Enable’s IFA’s of Bishop’s Stortford can help you look at how to make the most of your money and fulfill your retirement dreams


Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Asset allocation in bricks and mortar

Liquidity may never be far from the mind of anyone investing in bricks and mortar but many investment portfolios tend to have a slice of property in them. For wealth management Enables IFA’s know that balanced portfolios include bricks and mortar and with signs of recovery in the UK economy the trend to encourage investment in property has returned. Rather than make individual and more time consuming individual property investments having them as an asset class in a portfolio makes sense.

Mike Deverell an investment manager said recently, “We have done a fair bit of research comparing the Investment Property Databank index with economic growth and we know property is highly correlated to the economy. “With the economy doing better over the last 18 months it made sense that property was a good place to put money. Property as an asset class has done fantastically well in the last 12 months and you still get a much better return on a rental yield from a property than from cash, a bond or anything else, by a long way.”

His research also indicated that rental income growth has still to come through in property while the number of vacant properties still remains high, but the eventual improvement in these two areas of the sector should only act as another boost for the asset class. Enable’s Independent Financial Advisors are here to talk you through a balanced portfolio approach to saving and investing so if you are planning to increase your exposure to property we are here to talk you through your options you may even want to look at how to boost liquidity and diversification through the addition of a property derivatives funds.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Danby Bloch: Advisers must save clients from themselves

Enable’s Independent financial Advisors of Bishops Stortford agree that, “Advisers should be emphasising to clients just how much the proposed new rules for drawing retirement benefits have made registered pensions easily the most attractive vehicles for long-term savings.” As pointed out by Danby Bloch the editorial director of Taxbriefs Financial Publishing.

In the past most of the objections to investing in registered pensions have stemmed from their inflexibility on the event of death.  The main change that has come into the spotlight this year is that people who reach the age of at least 55 will be able to draw as much or as little as they wish directly from their pension without having to buy an annuity and regardless of what clients choose, and they will still be able to receive 25 per cent of their pension savings as a tax-free lump sum.

In addition from 6 April 2015, there will be a limited ability for people in drawdown to make contributions into a money purchase pension changing the current situation, where if you start drawing funds directly from their pension, you cannot make any further pension contributions, although the limit on these contributions will be £10,000 a year rather than the full £40,000 annual allowance.

As ever one of the key job for IFA’s like Enable of Bishop’s Stortford is to inform clients about tax implications. The message Danny Bloch says is clear. “Leaving aside the question of their future income needs, they should always take tax and financial advice before deciding how much to draw from their pension. Any drawings above the tax-free lump sum will be subject to income tax as additional income. Whatever they leave in the pension plan is free of tax on any investment income and capital gains.”

If you would like some financial advice why not get in touch with our team of IFA’s.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

What would Labour do differently on pensions?

It’s the season of Party Politics and all this year’s conferences clearly have next year’s elections in their sights.  With such a shake up to the pension scheme this year it is hard to envisage swings back or in a different direction should we have a change of government but this is part of an Independent financial Advisors' role to keep on top of changes in legislation and how they might affect your savings and investments.

Some of the key changes the Labour Party raised with respect to pensions in their conference include  the idea that Labour would scrap the Government’s pot follows member scheme to stop the build-up of multiple small pension funds when people change jobs. As an alternative it prefers an aggregator model, where small pots are transferred to a central third-party scheme and then distributed. With respect to the Cap Charge the Department for Work and Pensions will be imposing a 0.75 per cent charge cap on all auto-enrolment schemes from next April. Labour says it would go further with a 0.5 per cent cap for schemes that wish to be eligible for transferring stranded pots.
Labour also said it would lift the £4,600 annual contribution limit and ban on transfers immediately if elected next year.

Enable of Bishop’s Stortford know that all three of the major parties will review tax relief, Labour is expected to reveal its proposals in its manifesto. Pensions minister Steve Webb, a Liberal Democrat, has proposed a new flat rate of less than 30 per cent while the Conservatives are considering further changes to the taxation of savings too.


Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Pensions & Divorce

This is a tricky area but in many cases peoples pensions are their second largest asset after their home and so they really do need to be addressed properly in any settlement process.

Since the Welfare Reform and Pensions Act 1999 brought in the option of Pension Sharing On Divorce from December 2000 what is mostly advised it to attempt a ‘clean break’ settlement for pension funds on divorce. Offsetting and earmarking will still be options to consider but a new option was introduced which allows the pension benefits to be shared or split between the parties at the time of the divorce.

Offsetting simply means that the pension funds are valued, and the spouse with greater benefits provides the other spouse with additional funds elsewhere in the settlement, to compensate them for the loss in pension rights.  Earmarking applies to all private pensions (including those in payment), but not state benefits.  It involves the court issuing an attachment order to the pension scheme. This attachment requires the scheme’s trustees to pay a proportion of the member’s benefits directly to the ex-spouse, when the benefits are taken.

Pension sharing applies to all pensions, apart from the state basic old age pension so the pension benefits are valued and the share can be granted by way of a transfer to the petitioner’s own scheme. One of the biggest problems with pension sharing is the cost. Schemes are entitled to charge for the calculations and administration involved in the splitting of the benefits. Enable’s IFA’s of Bishop’s Stortford can help talk through any of your pension issues.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Which? Is the one to trust...

Our reliable Independent Financial Advisors at Enable in Bishop’s Stortford can see why the executive director of Which? Richard Lloyd has suggested that the Treasury needs to “pull its finger out." He wants the government to publish details of exactly how the guidance guarantee for pensions that has been proposed will work. He was Speaking at a fringe event at the Liberal Democrat conference in Glasgow recently and thinks that the Treasury is leaving it late as the new system will be launching within months.

The new system initiated by George Osborne as part of his radical pension reforms means that all the UK population over 55s will have the right to “free, impartial, face-to-face” guidance from next April.   Richard Lloyd, who was and advisor to ex-Prime Minister Gordon Brown from 2007 to 2010, said: “The Treasury needs to pull its finger out and work out who is going to provide guidance and how, and put standards in place. “It’s getting a bit late in the day for the details to be published and all the agencies involved need to be ready. It’s becoming a bit of a problem to say the least and the Treasury needs to speed up its decision making on how the guidance guarantee will be delivered.”

At the Labour conference, the shadow pensions minister Gregg McClymont has also called for more details to be published soon. Some advisors are asking for a delay so that the plans can be clearly thought through and delivered.  If you are simply wanting some straight forward one to one discussion on the best management of your pension Enable’s IFA’s can help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Watch out watch out there are pension liberation fraudsters about

Reputable Independent Financial Advisors Enable of Bishop’s Stortford have been shocked recently to read in a recent report that as many as 13 per cent of people aged over 50 have been targeted by fraudsters trying to get them to cash in their pension pots. These so called 'Pension liberation' fraudsters try to persuade people to cash in their retirement savings early, but they either charge huge fees or try to take all your money outright.  According to the poll carried out by Fidelity Worldwide Investment three out of five of those approached could see it was a scam straight away, but 27 per cent did not and a further 12 per cent were interested in the conversation and trusted the advice.

“Pension liberation” describes a way of releasing pension funds, usually before the age of 55, and converting those funds partly or entirely to cash.  The process is sometimes also known as taking a “pension loan”, such schemes are offered by companies that make money by charging you a fee or by taking cash direct from your savings, which may be as much as a third of the value of your pension pot.

The poll also found that people aged 50-59 were the most likely to be approached, as pension liberation firms try to exploit lack of knowledge of what age you have to have to access your pension lump sum and other rules. While 41 per cent of the people asked correctly replied you must be 55 or older to access a 25 per cent lump sum from your pension, the rest either gave different replies or said they didn't know. Make sure you seek advice form reputable Independent Financial Advisors.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Helping people be more confident with financial products

Enable’s Independent financial Advisors in Bishop’s Stortford recently saw that earlier in the autumn the Financial Services Compensation Scheme (FSCS) has launched a new consumer awareness campaign.  The Campaign is using radio presenter Fearne Cotton but she is just the first of five “well-known personalities” who will take part in the campaign over the next few months. The names of the others are yet to be released.

Protecting Your Future is the name of their campaign which will run until March 2015 and it want to help reassure consumers their money is protected up to £85,000 per person if their bank were to fail.  FSCS chief executive Mark Neale says: “We know from our research that consumers who are aware of FSCS are more confident and likely to buy financial products. “The Protecting Your Future push intends to deepen engagement with the public to build awareness of FSCS. “We know that many of those consumers are not interested in financial or savings issues, so we believe that anchoring stories from a well-known personality’s perspective will not only draw consumers into the conversation, but leave a positive level of awareness that will last far longer than the campaign itself.”

Making sure you take an active interest in your financial planning and feel able to use financial products and save is clearly really important for individuals and families throughout the course of lifes ups and downs.  Enable’s IFA’s are able to talk you though your options.


Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Further Pension changes to come

George Osborne has declared that from 6th April 2015 inheritance tax will change alongside other changes to pensions. On death you will be able to pass on your pension cash without your heirs being forced to pay over half to the taxman.

Currently when a saver dies they must pay a 55 per cent tax charge to pass their drawdown fund to their loved ones.  The only exception has been for under  75 year olds who have not touched their pension. Only spouses and dependent children under the age of 23 have been able inherit their pensions without paying a tax charge.

But from next April anyone inheriting pension cash from someone who dies before the age of 75 will not have to pay any tax at all.  Those who inherit a pension from a loved one who passes away after the age of 75 will pay tax on money they withdraw at their normal rate of income tax. For many people this can be as little as 20 per cent. If they however withdraw a one off lump sum tax at 45 per cent will be levied.

It is important to remember that he shakeup applies only to savers who keep their money invested in the stock market and use their pension funds for income, using a method known as income drawdown which allows people to drawdown cash as they require it, instead of using their pension pot to buy an annuity.  If these changes are turning your financial planning upside down Enables’ IFA’s of Bishop’s Stortford are here to help you get things in order.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE