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.
Wednesday, 26 August 2009
Credit Unions Unveiled - Wealth-Wisdom Wednesdays
What are Credit Unions? Not for profit financial cooperatives owned and controlled by members.
How did they begin?
They started off in America and Canada and were based on the premise that people could help each other via a cooperative. Before 1979 there was no legal structure so some early CUs were formed under the Companies Act and others under the Industrial and Provident Societies Act. In April 1979 the Credit Union Act came became law. There are some 40,000 CUs around the world with about 118m members and just over 3/4 million members in the UK.
How can this organisation help me? A CU can help you in at least two ways (initially). 1. Learning to save regularly and 2. Borrowing. Some also offer other services such as... Current accounts and even Child Trust Funds and a new area they are moving into is Life insurance. You should contact your local CU office for more details of their individual services.
What are the joining requirements? CUs usually have a Common Bond which means their membership is based on certain factors, such as, Association, Employment, Live or Work or Residence.
What are their borrowing requirements? These vary, generally you must be a regular saver before they will borrow you any money. These loans are usually unsecured and are charged at a fixed rate. There are no set up fees, no hidden charges or repayment penalties.
What do I need to do once I find my local organisation? You will need to contact them and i. probably fill out an application form, ii. Pay a one of membership fee, iii. Complete a standing order form to begin your savings journey.
How are they able to loan money at much better rates? Because they are run by members for the benefit of members.
What is the maximum I can borrow? This varies from one organisation to the other and each application is assessed based on merits
What if I want to withdraw my money after I've been saving for a while? Quite simply fill out the form for your CU and they will usually send you your money back within about 5 days. Allowing time for processing.
Will I receive interest on my savings? Rather than paying interest, income from loan repayments is used to meet their running costs. They also keep some of the money in reserves and pay a dividend payment into your account.
There is no Credit Union in my area, what can I do? You can contact the Association of British Credit Unions to find out about any other options.
How can I be sure my money is safe? Since 2002, CU's have been regulated by the Financial Services Authority (FSA) in the same as UK banks and building societies. This means that the Financial Services Compensation Scheme will repay deposits up to £50,000 (as with banks etc).
I'm unhappy with my local Credit Union, what can I do? Follow their complaints procedure and if you get stuck, your complaint can be taken to the Financial Ombudsman Service.
Who governs Credit Unions in the UK?
The Association of British Credit Unions is the main trade association for Credit Unions in Britain (England, Scotland and Wales). The ABCUL provide information, representation and training to member Credit Unions.
How did they begin?
They started off in America and Canada and were based on the premise that people could help each other via a cooperative. Before 1979 there was no legal structure so some early CUs were formed under the Companies Act and others under the Industrial and Provident Societies Act. In April 1979 the Credit Union Act came became law. There are some 40,000 CUs around the world with about 118m members and just over 3/4 million members in the UK.
How can this organisation help me? A CU can help you in at least two ways (initially). 1. Learning to save regularly and 2. Borrowing. Some also offer other services such as... Current accounts and even Child Trust Funds and a new area they are moving into is Life insurance. You should contact your local CU office for more details of their individual services.
What are the joining requirements? CUs usually have a Common Bond which means their membership is based on certain factors, such as, Association, Employment, Live or Work or Residence.
What are their borrowing requirements? These vary, generally you must be a regular saver before they will borrow you any money. These loans are usually unsecured and are charged at a fixed rate. There are no set up fees, no hidden charges or repayment penalties.
What do I need to do once I find my local organisation? You will need to contact them and i. probably fill out an application form, ii. Pay a one of membership fee, iii. Complete a standing order form to begin your savings journey.
How are they able to loan money at much better rates? Because they are run by members for the benefit of members.
What is the maximum I can borrow? This varies from one organisation to the other and each application is assessed based on merits
What if I want to withdraw my money after I've been saving for a while? Quite simply fill out the form for your CU and they will usually send you your money back within about 5 days. Allowing time for processing.
Will I receive interest on my savings? Rather than paying interest, income from loan repayments is used to meet their running costs. They also keep some of the money in reserves and pay a dividend payment into your account.
There is no Credit Union in my area, what can I do? You can contact the Association of British Credit Unions to find out about any other options.
How can I be sure my money is safe? Since 2002, CU's have been regulated by the Financial Services Authority (FSA) in the same as UK banks and building societies. This means that the Financial Services Compensation Scheme will repay deposits up to £50,000 (as with banks etc).
I'm unhappy with my local Credit Union, what can I do? Follow their complaints procedure and if you get stuck, your complaint can be taken to the Financial Ombudsman Service.
Who governs Credit Unions in the UK?
The Association of British Credit Unions is the main trade association for Credit Unions in Britain (England, Scotland and Wales). The ABCUL provide information, representation and training to member Credit Unions.
Wednesday, 19 August 2009
So what's a Living Trust and do I need one? - Wealth-Wisdom Wednesdays
What is a living Trust? A living Trust is an estate planning tool. It must be written to be valid. It is referred to as a living Trust because it is written and used while you are alive. It is also referred to as a revocable inter vivos trust.
Can a living Trust be changed in my lifetime? Yes so long as it is a revocable trust.
Do I need a living Trust? If you have any assets and you would wish for these assets to be held in trust for your beneficiaries you should give it serious consideration.
What assets should I include in my trust? The assets do not need to be listed in the trust document, however it is a good idea to have some sort of addendum to the trust so that the Successor Trustee knows which assets are being administered. It will certainly make their job easier and they will thank you enormously.
Who should I appoint as a Successor trustee? Any one you trust implicitly with your life and your assets. Choose wisely for they will have complete control of all your assets and you will not be around to question their actions
Which assets should I consider including in this list? Any property you own, life insurance policies, investments and savings and any other substantial assets you would like to pass to your beneficiaries when you are gone.
Do I also need a Will? Probably to 'sweep up' any other assets that may have been omitted from the Trust
What are the key characteristics of a Trust? A trust document must be written as a trust instrument and must contain the names of the Grantor, The Trustee, at least one Successor Trustee and the names of the Beneficiaries.
Is it expensive to create a trust? This depends on who you ask and how you choose to go about creating a trust. A deed of trust can be created and drafted by you or you may choose to hire a Solicitor to write it for you. Should you choose to ask a Solicitor, ensure you understand what you want from your trust otherwise this can be very expensive.
I've heard a Will becomes public in probate. What about a Trust? Correct. A trust is a private document outlining ownership of private assets.
Can a trust be contested? Yes, but only in Civil court. A Will on the other hand can be contested in the public probate court.
Once I have created my trust what next? You will need to finalise the transference of your assets into the name of the trust. Failing this, your assets may well become subject to Probate and this can be time consuming and costly.
Remember, this article does not constitute legal advise. You must always ensure you fully understand the legal rules and requirements before entering into any contract or undertaking. If in any doubt, always seek independent professional advice.
Can a living Trust be changed in my lifetime? Yes so long as it is a revocable trust.
Do I need a living Trust? If you have any assets and you would wish for these assets to be held in trust for your beneficiaries you should give it serious consideration.
What assets should I include in my trust? The assets do not need to be listed in the trust document, however it is a good idea to have some sort of addendum to the trust so that the Successor Trustee knows which assets are being administered. It will certainly make their job easier and they will thank you enormously.
Who should I appoint as a Successor trustee? Any one you trust implicitly with your life and your assets. Choose wisely for they will have complete control of all your assets and you will not be around to question their actions
Which assets should I consider including in this list? Any property you own, life insurance policies, investments and savings and any other substantial assets you would like to pass to your beneficiaries when you are gone.
Do I also need a Will? Probably to 'sweep up' any other assets that may have been omitted from the Trust
What are the key characteristics of a Trust? A trust document must be written as a trust instrument and must contain the names of the Grantor, The Trustee, at least one Successor Trustee and the names of the Beneficiaries.
Is it expensive to create a trust? This depends on who you ask and how you choose to go about creating a trust. A deed of trust can be created and drafted by you or you may choose to hire a Solicitor to write it for you. Should you choose to ask a Solicitor, ensure you understand what you want from your trust otherwise this can be very expensive.
I've heard a Will becomes public in probate. What about a Trust? Correct. A trust is a private document outlining ownership of private assets.
Can a trust be contested? Yes, but only in Civil court. A Will on the other hand can be contested in the public probate court.
Once I have created my trust what next? You will need to finalise the transference of your assets into the name of the trust. Failing this, your assets may well become subject to Probate and this can be time consuming and costly.
Remember, this article does not constitute legal advise. You must always ensure you fully understand the legal rules and requirements before entering into any contract or undertaking. If in any doubt, always seek independent professional advice.
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