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01737 225989 [email protected]
Downsizing to boost pension pots The percentage of homeowners over the age of 55 who plan to sell their current property increased by 3% in the 6 months to November 2014, according to research by Prudential. Three quarters of homeowners over the age of 55 say they will downsize when they sell. On average, this group hopes to free-up £87,600 from the sale of their home - an increase of £2,300 since May 2014.
• 48% will save or invest the money • 45% will spend cash on luxury
purchases, such as holidays. The main reasons for downsizing among the over-55s are: • having too much space (61%) • more convenient to run a smaller
home (58%) • accessing equity (34%) • reducing the day-to-day costs of
running a large home (22%)
Of those expecting to release equity from downsizing:
• changes in personal circumstances,
• 40% will use the funds to boost
Prudential’s retirement income expert, Vince Smith-Hughes, said:
their pension pots
“Freeing up cash as a result of selling your property may be appropriate for some, but it should never be seen as a substitute for saving for retirement. The best way to secure your desired standard of living in retirement is to save as much as possible from as early as possible and to seek professional inancial advice on the best retirement income options available for your needs.”
such as divorce or separation (21%).
We can help you plan for your retirement.
3D Financial Planning is appointed representative of the Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority
www.3dfinancialplanning.co.uk
Half of employers could ofer employees aged 55 and over greater remuneration lexibility when pension reforms are introduced in April 2015. The number of homeowners over the age of 55 who are planning to downsize has increased in the last 6 months. Almost 1 in 6 people are intending to use part of their pension savings to pay of their mortgage. And inancial advisers have said employers are leaving it too late to seek auto-enrolment advice.
DECEMBER 2014
In this month’s Wealth Knowledge newsletter…
Employers may offer salary lexibility
• 35% said they will ofer this for all employees aged over 55
Half of employers may ofer employees greater remuneration lexibility when the government’s pension reforms are introduced in 2015, a survey by Jelf Employee Beneits and LaterLife Learning has found.
• 6% said they won’t allow it for any employees.
• 15% will consider it on a case-by-case basis • 44% haven’t decided yet
Steve Herbert, head of beneits strategy at Jelf Employee Beneits, said that legislators may have “grossly underestimated” the popularity of this remuneration option.
From April 2015, members of deined contribution schemes will be given the option to take their pot in multiple lump sum payments without having to buy an annuity. Employers could choose to redirect salary payments for employees aged over 55 into their pension pots, allowing both to sidestep national insurance liabilities.
Tony Clack, managing director for LaterLife Learning, said: “There has never been a time of greater change within pensions legislation. Added to the removal of the default retirement age this increases the complexity of decision making and consequently the need for greater retirement education to assist with both inancial and lifestyle decisions.”
Jelf asked 200 employers if they were planning to allow such lexibility:
Will you take advantage of the greater pension lexibility from April 2015? Talk to us for advice.
Mortgage plans for retirement savings
Employers delaying auto-enrolment advice
Almost 1 in 6 people aged 40-70 are planning to use part or all of their pension savings to pay of their mortgage, research by Partnership has found.
The majority of employers are leaving it too late to get advice on preparing for and complying with autoenrolment, research by NOW: Pensions has found.
The survey of more than 1,500 people found that 15% of respondents intend to use some of their pension pot for mortgage repayments:
A survey of 244 inancial advisers found that 72% said employers are not leaving enough time to take advice before their staging date.
• 10% are intending to use their tax-free pension lump sum
An employer’s staging date is the day they must begin automatically enrolling eligible employees into a workplace pension scheme. More than 1.2 million small and micro businesses will start staging from June 2015 according to government estimates.
• 5% plan to use their pension savings.
However, the majority of respondents are still planning to repay their mortgage by more conventional means. 58% will continue making monthly repayments, while 22% will make lump sum payments in addition to their monthly instalments. Mark Stopard, head of product development at Partnership, said the survey results were “worrying”: “This research clearly highlights that people need to focus on repaying their mortgage as early as possible and avoid traps such as remortgaging for the full period each time they take out a new deal. Even those who are currently retiring have options such as working longer, downsizing or taking out an equity release plan – all options that will help to keep their pension funds intact.” We can help you make decisions about your retirement income. Call us today.
The survey found: • half of the advisers surveyed said irms have come to them
close to their staging date • 22% said irms have come to them very close to and after
their staging date • 87% said that many employers don’t have the knowledge to
make informed decisions about auto-enrolment. Morten Nilsson, CEO of NOW: Pensions, said: “While auto enrolment has been successful so far, it is important that smaller employers and the industry do not get lured into a false sense of security. “We urge those who will begin staging next year, to plan ahead.” Contact us today to start preparing for auto-enrolment.
Important Information
Pension eligibility depends on personal circumstances. Tax rules and allowances are not guaranteed and may change in the future. The value of investments can fall as well as rise and you may not get back the amount you originally invested. Your home may be repossessed if you do not keep up repayments on your mortgage. This document is solely for information purposes and
nothing in this document is intended to constitute advice or a recommendation. You should not make any investment decisions based upon its content. Whilst considerable care has been taken to ensure that the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information. E & OE.
01737 225989 [email protected]
Downsizing to boost pension pots The percentage of homeowners over the age of 55 who plan to sell their current property increased by 3% in the 6 months to November 2014, according to research by Prudential. Three quarters of homeowners over the age of 55 say they will downsize when they sell. On average, this group hopes to free-up £87,600 from the sale of their home - an increase of £2,300 since May 2014.
• 48% will save or invest the money • 45% will spend cash on luxury
purchases, such as holidays. The main reasons for downsizing among the over-55s are: • having too much space (61%) • more convenient to run a smaller
home (58%) • accessing equity (34%) • reducing the day-to-day costs of
running a large home (22%)
Of those expecting to release equity from downsizing:
• changes in personal circumstances,
• 40% will use the funds to boost
Prudential’s retirement income expert, Vince Smith-Hughes, said:
their pension pots
“Freeing up cash as a result of selling your property may be appropriate for some, but it should never be seen as a substitute for saving for retirement. The best way to secure your desired standard of living in retirement is to save as much as possible from as early as possible and to seek professional inancial advice on the best retirement income options available for your needs.”
such as divorce or separation (21%).
We can help you plan for your retirement.
3D Financial Planning is appointed representative of the Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority
www.3dfinancialplanning.co.uk
Half of employers could ofer employees aged 55 and over greater remuneration lexibility when pension reforms are introduced in April 2015. The number of homeowners over the age of 55 who are planning to downsize has increased in the last 6 months. Almost 1 in 6 people are intending to use part of their pension savings to pay of their mortgage. And inancial advisers have said employers are leaving it too late to seek auto-enrolment advice.
DECEMBER 2014
In this month’s Wealth Knowledge newsletter…
Employers may offer salary lexibility
• 35% said they will ofer this for all employees aged over 55
Half of employers may ofer employees greater remuneration lexibility when the government’s pension reforms are introduced in 2015, a survey by Jelf Employee Beneits and LaterLife Learning has found.
• 6% said they won’t allow it for any employees.
• 15% will consider it on a case-by-case basis • 44% haven’t decided yet
Steve Herbert, head of beneits strategy at Jelf Employee Beneits, said that legislators may have “grossly underestimated” the popularity of this remuneration option.
From April 2015, members of deined contribution schemes will be given the option to take their pot in multiple lump sum payments without having to buy an annuity. Employers could choose to redirect salary payments for employees aged over 55 into their pension pots, allowing both to sidestep national insurance liabilities.
Tony Clack, managing director for LaterLife Learning, said: “There has never been a time of greater change within pensions legislation. Added to the removal of the default retirement age this increases the complexity of decision making and consequently the need for greater retirement education to assist with both inancial and lifestyle decisions.”
Jelf asked 200 employers if they were planning to allow such lexibility:
Will you take advantage of the greater pension lexibility from April 2015? Talk to us for advice.
Mortgage plans for retirement savings
Employers delaying auto-enrolment advice
Almost 1 in 6 people aged 40-70 are planning to use part or all of their pension savings to pay of their mortgage, research by Partnership has found.
The majority of employers are leaving it too late to get advice on preparing for and complying with autoenrolment, research by NOW: Pensions has found.
The survey of more than 1,500 people found that 15% of respondents intend to use some of their pension pot for mortgage repayments:
A survey of 244 inancial advisers found that 72% said employers are not leaving enough time to take advice before their staging date.
• 10% are intending to use their tax-free pension lump sum
An employer’s staging date is the day they must begin automatically enrolling eligible employees into a workplace pension scheme. More than 1.2 million small and micro businesses will start staging from June 2015 according to government estimates.
• 5% plan to use their pension savings.
However, the majority of respondents are still planning to repay their mortgage by more conventional means. 58% will continue making monthly repayments, while 22% will make lump sum payments in addition to their monthly instalments. Mark Stopard, head of product development at Partnership, said the survey results were “worrying”: “This research clearly highlights that people need to focus on repaying their mortgage as early as possible and avoid traps such as remortgaging for the full period each time they take out a new deal. Even those who are currently retiring have options such as working longer, downsizing or taking out an equity release plan – all options that will help to keep their pension funds intact.” We can help you make decisions about your retirement income. Call us today.
The survey found: • half of the advisers surveyed said irms have come to them
close to their staging date • 22% said irms have come to them very close to and after
their staging date • 87% said that many employers don’t have the knowledge to
make informed decisions about auto-enrolment. Morten Nilsson, CEO of NOW: Pensions, said: “While auto enrolment has been successful so far, it is important that smaller employers and the industry do not get lured into a false sense of security. “We urge those who will begin staging next year, to plan ahead.” Contact us today to start preparing for auto-enrolment.
Important Information
Pension eligibility depends on personal circumstances. Tax rules and allowances are not guaranteed and may change in the future. The value of investments can fall as well as rise and you may not get back the amount you originally invested. Your home may be repossessed if you do not keep up repayments on your mortgage. This document is solely for information purposes and
nothing in this document is intended to constitute advice or a recommendation. You should not make any investment decisions based upon its content. Whilst considerable care has been taken to ensure that the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information. E & OE.
