Whether you’re 21 or 61 it’s important to learn about pensions and ensure you’ve made adequate provision for when you get older. Some may say, make provision for when you retire, others may say I’m never going to retire ‘cos when you retire one is more likely to wither and pass on to the land of no return.
What ever your age today, it’s best to be in the know. Ignorance is not bliss, it can be very expensive.
Below you’ll find some common FAQs on pensions and where you can go to find out more.
What are the different types of pension?
-State pension
-Company (occupational) pension
-Personal pension or Stakeholder pension
What’s the difference between these pension types?
A state pension in the UK is income received from the state (the government) at retirement. This state pension can comprise two parts, 1. The Basic State Pension (S2P) and 2. the State Second Pension.
At what age can I claim my pension?
For state pensions, the State Pension Age (SPA), if you are a woman, is age 60 and the SPA for men is 65. However from 2010 there will be a gradual change introduced which will last till 2020 when the state retirement age will increase to age 68 for both men and women.
For Company and Personal Pension schemes, the age at which you may claim your pension varies according to the rules of the company scheme.
What is the Basic State Pension (BSP)?
-The BSP is based on the number of qualifying years on your National Insurance record.
What is the State Second Pension (S2P)?
-This is paid in addition to the BSP if you earnings are more than £4,940pa. Everyone who earns under £13,900 but more than £4,940 is treated as if they earned £13,900.
If you earn more than £43,888pa these earnings do not count towards the S2P. S2P is not available to those who are self-employed as they pay a different class of National Insurance contributions.
Can I build up additional state pension for my S2P if I have not been an employee, for example if I have been a Carer, had a long-term illness or disability?
- Yes. You can build up an additional state pension through S2P for each full tax year you do not work at all, or earn less than the NI Lower Earnings Limit and you meet certain criteria.
How can I find out what my pension is likely to be?
-Contact the Pension Service to obtain a forecast.
Can I top up my state pension?
Yes. Contact the Pension service to find out how much you can add to your state pension.
I do not have a pension and I’m not sure if I should start a Personal pension or a stakeholder pension, what should I do?
-Visit the link below and do your own research. The pension site provides comprehensive information on the different schemes available.
I have heard I can create my own scheme and I would like to start buying property to place in my own self directed fund, what do I need to think about?
-Only commercial property will give you benefits if held in a scheme. Visit the link below for more up to date information.
I have several occupational pension plans from previous employers, what’s the best thing for me to consider?
-Conduct a full review of your pensions, note down all the details from each. If these have been misplaced, call the organisations with whom you worked quoting your NI number and DOB. You may also need to quote your payroll number and ask them to send you details of your pension forecast with them.
My previous employer has gone in to liquidation, how can I find out what has happened with my pension scheme?
-Contact the Pension Tracing Service via the pension service. http://www.thepensionservice.gov.uk/
Wednesday 16 September 2009
Wednesday 9 September 2009
Your Money after divorce: Wealth-Wisdom
So you’ve received your decree absolute, the dust has settled and you’re ready to start afresh. It’s time to get your financial house in order.
If you have had to move house. Change your address with all organisations with which you have an association.
Do a credit file review. Experien and Equifax are currently offering a free 30 day online report. Call Credit still charge.
If you remain in the same property after your divorce, make sure to file a notice of disassociation/correction to separate your finances from your previous partner.
Check your file again in a couple of months to ensure any previous joint accounts or associations have been removed.
If you have debt, create a debt management plan and stick to it.
Always open all your mail.
Now it’s just you, create yourself a budget detailing your income and expenses and stick to it.
If you have children, include their expenses in your plans. These could include sporting activities or musical tuition.
Undertake a full wealth review to determine your net worth (assets and liabilities) and put a date in your diary to do it next year. I use my birthday so I always remember.
Review all your assets, pensions, investments, savings, stocks, wills and trusts, death in service benefits and property.
Follow up and confirm your financial settlement with your solicitor to ensure everything is finalised as directed by the court.
Check that all joint bank accounts have been closed, especially current accounts or savings accounts.
Set yourself goals for your new life and new financial ideals and remember to update your goals periodically.
Feed your mind, body and soul with dreams, ideals and actions you would like to dominate your new life.
Remember to smile. Your bright future awaits your creation.
For more articles designed to expand your Wealth &Wisdom visit us at http://www.ActivateAchievement.com
If you have had to move house. Change your address with all organisations with which you have an association.
Do a credit file review. Experien and Equifax are currently offering a free 30 day online report. Call Credit still charge.
If you remain in the same property after your divorce, make sure to file a notice of disassociation/correction to separate your finances from your previous partner.
Check your file again in a couple of months to ensure any previous joint accounts or associations have been removed.
If you have debt, create a debt management plan and stick to it.
Always open all your mail.
Now it’s just you, create yourself a budget detailing your income and expenses and stick to it.
If you have children, include their expenses in your plans. These could include sporting activities or musical tuition.
Undertake a full wealth review to determine your net worth (assets and liabilities) and put a date in your diary to do it next year. I use my birthday so I always remember.
Review all your assets, pensions, investments, savings, stocks, wills and trusts, death in service benefits and property.
Follow up and confirm your financial settlement with your solicitor to ensure everything is finalised as directed by the court.
Check that all joint bank accounts have been closed, especially current accounts or savings accounts.
Set yourself goals for your new life and new financial ideals and remember to update your goals periodically.
Feed your mind, body and soul with dreams, ideals and actions you would like to dominate your new life.
Remember to smile. Your bright future awaits your creation.
For more articles designed to expand your Wealth &Wisdom visit us at http://www.ActivateAchievement.com
Wednesday 2 September 2009
Unclaimed Assets, how to claim yours - Wealth Wisdom
Q. What are unclaimed assets? A. Unclaimed assets are benefits or even blessings that have been dormant and have not be claimed by their owners or beneficiaries.
Q. How come so many assets fall into this category? A. People do not notify address changes; Customers forget about their investments, and that forgetfulness becomes permanent; People make investments without telling their spouse. The surviving partner is unaware that funds are due to the estate; Companies change their names
Q. How much money is unclaimed in the UK? A. Approximately 15.3bn!
Q. What sorts of assets come under this category? A. Dormant bank and building society accounts; life insurance policies, unredeemed National Savings certificates and premium bonds or even unclaimed National Lottery Tickets.
Q. How do I claim my share of this money? A. To make a claim you should try and gather as much information as possible regarding the claim. You will obviously need to provide the personal details of the account holder or beneficiary, their last known address and any previous addresses and of course any previous names and their date of birth in order to make your claim as well as the details of the account type and any other details that may be useful to help trace the account and enable you to reclaim your assets.
Q. My claim relates to National Savings and Premium Bond prizes, how do I claim? A. Use the online using the prize checker at nsandi.com
Q. What about Life Insurance policies? A. If you are trying to trace an insurance company that may have changed its name or owner, the Association of British Insurers (ABI) recommends you should contact the Financial Services Authority. If you are trying to trace a life insurance policy, but do not know the name of the company, you should contact the Unclaimed Assets Register, which is owned by Experian, the Credit Reference Agency. The UAR (http://www.uar.co.uk/) do charge a fee currently £25.
Q. I've finally found my lottery ticket, can I claim my prize? All prizes need to be claimed within 180 days of the draw date, after which time the money will go to the Good Causes.
Q. My claim relates to a bank, how can I get my hands on the cash? A. Visit www.mylostaccount.org.uk to trace a bank or building society or National Savings or investments (NS&I). This service is provided free of charge and you are strongly advised not to pay a fee of any kind to search for your old bank account, building society or NS&I.
Q. What about claiming from my old Building Society that has changed its name or been bought by a bank? A. Use the same facility used for banks.
Q. The bank or building society or National Savings have contacted me to say they have found an account that I am looking for, what next? A. You will need to be able to provide official documentation to confirm your identity.
Q. Is there anything else I can do to keep track of my assets? A. In addition to all the other items mentioned, also keep a record of all employment with dates and locations as you will want to ensure your beneficiaries can claim any death in service benefits and or pension entitlements. See article titles Trusts for more information
Q. How can I avoid finding myself looking for my assets in future? A. Keep a log of all your assets. You can create a simple spreadsheet with this information. The name of the account holder, the beneficiary, the account number or reference number and sort code. You may also wish to keep details of where you opened the account and how much you opened the account with. You should review all your net assets at least once a year when reviewing your annual financial plan and net worth statement. See article titled, Budgeting and Planning.
Q. I've heard that the government wants to use unclaimed monies from dormant banks and building societies for good causes if not claimed within 15 years, how will this affect my claim? This will not affect any claim you make under current legislation. Under the legislation anyone can still continue to make a claim and be paid their money.
Q. How come so many assets fall into this category? A. People do not notify address changes; Customers forget about their investments, and that forgetfulness becomes permanent; People make investments without telling their spouse. The surviving partner is unaware that funds are due to the estate; Companies change their names
Q. How much money is unclaimed in the UK? A. Approximately 15.3bn!
Q. What sorts of assets come under this category? A. Dormant bank and building society accounts; life insurance policies, unredeemed National Savings certificates and premium bonds or even unclaimed National Lottery Tickets.
Q. How do I claim my share of this money? A. To make a claim you should try and gather as much information as possible regarding the claim. You will obviously need to provide the personal details of the account holder or beneficiary, their last known address and any previous addresses and of course any previous names and their date of birth in order to make your claim as well as the details of the account type and any other details that may be useful to help trace the account and enable you to reclaim your assets.
Q. My claim relates to National Savings and Premium Bond prizes, how do I claim? A. Use the online using the prize checker at nsandi.com
Q. What about Life Insurance policies? A. If you are trying to trace an insurance company that may have changed its name or owner, the Association of British Insurers (ABI) recommends you should contact the Financial Services Authority. If you are trying to trace a life insurance policy, but do not know the name of the company, you should contact the Unclaimed Assets Register, which is owned by Experian, the Credit Reference Agency. The UAR (http://www.uar.co.uk/) do charge a fee currently £25.
Q. I've finally found my lottery ticket, can I claim my prize? All prizes need to be claimed within 180 days of the draw date, after which time the money will go to the Good Causes.
Q. My claim relates to a bank, how can I get my hands on the cash? A. Visit www.mylostaccount.org.uk to trace a bank or building society or National Savings or investments (NS&I). This service is provided free of charge and you are strongly advised not to pay a fee of any kind to search for your old bank account, building society or NS&I.
Q. What about claiming from my old Building Society that has changed its name or been bought by a bank? A. Use the same facility used for banks.
Q. The bank or building society or National Savings have contacted me to say they have found an account that I am looking for, what next? A. You will need to be able to provide official documentation to confirm your identity.
Q. Is there anything else I can do to keep track of my assets? A. In addition to all the other items mentioned, also keep a record of all employment with dates and locations as you will want to ensure your beneficiaries can claim any death in service benefits and or pension entitlements. See article titles Trusts for more information
Q. How can I avoid finding myself looking for my assets in future? A. Keep a log of all your assets. You can create a simple spreadsheet with this information. The name of the account holder, the beneficiary, the account number or reference number and sort code. You may also wish to keep details of where you opened the account and how much you opened the account with. You should review all your net assets at least once a year when reviewing your annual financial plan and net worth statement. See article titled, Budgeting and Planning.
Q. I've heard that the government wants to use unclaimed monies from dormant banks and building societies for good causes if not claimed within 15 years, how will this affect my claim? This will not affect any claim you make under current legislation. Under the legislation anyone can still continue to make a claim and be paid their money.
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