Help to get a foot on the ladder.

Enable’s experienced IFA’s in Bishop’s Stortford have had many discussions with parents and grandparents who want to help their children get a foot on the property ladder. The property market really can be an intimidating place for first-time buyers at the moment, with prices having soared and young adults struggling to scrabble together a deposit. According to Lloyds Bank Family Savings Report, last year UK parents handed over £8.2bn to adult children to buy property, with those receiving support benefiting from an average of £13,281.

With the new pension rules in place since 6 April 2015, allowing those aged 55 or over complete freedom to access the money in defined-contribution pension pots it is now possible to take 25 per cent of your pot tax-free to help younger family members onto the ladder, but be careful – all subsequent lump sum withdrawals will be charged at your marginal rate of income tax. Sue Faiers, associate director of financial services at Smith & Williamson says, "If you had a £200,000 pension pot and wanted to stick it all into a property for your kids to live in, the danger is that £150,000 would be taxed as income."

Parents often have very real concerns about how to raise the capital, and Ms Faiers, says "If they haven't actually got funds available in cash but have investments, it's worth asking whether it makes sense to raise money from those investments or whether it makes sense to raise money against their own properties.”  But if you are reliant on your investments for income it is not necessarily the best option, Enable’s IFAs are happy to talk it through.

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

Pension freedom is upon us?

With new pension freedoms now available Enable’s IFA’s in Bishop’s Stortford can see that only one thing is really clear and that is that the new world of pensions is unchartered waters for providers, advisers and consumers alike.  In this brave new world finding the right path to generating the income you need from savings to retire is what it is all about. Income, security, access and inheritance are the most common priorities among those nearing retirement in our experience but the most used traditional solution to providing for retirement- the annuity is not proving popular.

In a recent Platforum report, financial advisers were asked how likely it is that they would recommend various retirement savings products in light of the current pension changes. Annuities came off badly, with almost 40 per cent of advisers saying they would not recommend them confirmed by annuity sales figures having plummeted since the pension freedoms were first announced.  This shift presents a huge challenge for providers, particularly as it would seem consumers do not like annuities either the Platforum consumer research also found that only 5 per cent of Telegraph readers would consider an annuity at retirement.

So what will people over 55 choose to do with their pension cash? Non-advised drawdown looks like a particularly risky pension plan many advisors like Enable of Bishops Stortford are looking closely at the options and one very positive outcome is the idea of a multi-asset managed drawdown product, In the Platforum report 60 per cent said they were likely to recommend this route, with only 22 per cent unlikely to do so. A number of fund managers have already brought products to market, most of which look to generate income and offer potential capital growth over the medium to long-term for their clients. If you need help planning your financial future Enable’s IFA’s are happy to talk you through 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