Tag: savings

Free financial health checks with local financial planner

To celebrate Financial Planning Week 2020 (5-11 October 2020) and World Financial Planning Day (7 October 2020), wealth manager Charles Stanley is offering free one-hour consultations with a financial planner.

Advisers in the Edinburgh office will be on hand to help people understand how they can achieve financial wellbeing and identify what steps they need to take to help reach their future goals. 

With the market and future so uncertain due to the Covid pandemic, many people are looking at their financial situation as their circumstances are changing, but planning finances can appear daunting and getting it wrong could be very costly. 

Anyone with questions around areas such as retirement, savings and investments or estate planning and inheritance, might benefit from getting an outside expert view.

Sam Cowan, Financial Planner at Charles Stanley says: “Many people think that only very wealthy people need advice, but nothing could be further from the truth.  Anyone planning for life milestones such as buying a home, planning for retirement or saving for their children’s university education can benefit. 

“There have been a number of tax and pension changes over the last year which can be complex which means people often miss out on available options and getting advice can really pay off and make a difference to your financial future.”

To book a video or telephone appointment for a free one-hour, introductory meeting call 0203 553 7384, email or fill in the form through our website. Appointments are limited and are allocated on a first come first served basis. 

Top 10 reasons to see a financial planner:

  1. Retirement:  Avoid common retirement planning traps and get help in making crucial decisions such as whether it’s better to buy an annuity and how to get the best deal or if it’s better to draw money from your pension without buying an annuity to secure your future income.  Some people may be considering, or forced to consider, early retirement and need help in putting their affairs in place. 
  2. Pension planning: many people are notputting enough aside to ensure the retirement they ideally want, while others want help in transferring their pensions from one scheme to another and consolidating them.

3. Inheritance:  whether you have inherited a sum of money and want to make the most of it, or if you want to plan ahead for passing on your estate to make sure your loved ones get as much of your hard-earned money as possible, it is worth getting advice.   The sooner you start planning, the more options you have to minimise the amount of inheritance tax that might be due, such as looking at trusts or lifetime gifts and annual exemptions.  Similarly, if the main or sole earner in your household has passed away you may need help in sorting out your financial affairs.

4.       Children’s savings:  saving little and often from an early age can build into a substantial nest egg by the time your children leave school.  Explore the most tax-efficient options of saving, from JISA’s to pensions, and whether cash or stocks and shares solutions are the most appropriate for your needs. 

5.       Preparing for life milestones: whether you are looking at buying your first home, changing career, starting a family, paying for your child’s education or planning for retirement, it’s important to make sure you are financially prepared. Take time to set goals and think about what your priorities are to put the best savings scheme in place for your life ambitions.

6.       Succession planning: having a succession plan in place is crucial to safeguard a continued smooth running of your business or estate.  Transferring a business to a new owner can have significant tax implications, so it’s important to understand how the funds from the sale of your company may tie into your own personal wealth objectives.

7.       Tax-efficiency:  tax rules are complex and there are a number of tax allowances and exemptions to be aware of, to ensure you are not paying more tax than you should be.  From Capital Gains Tax (CGT) and Inheritance Tax (IHT) to Charitable Giving and tax-efficient saving, there many ways to make sure you are taking advantage of all the legitimate tax breaks you are entitled to. 

8.       Long-term care planning: with the onus increasingly on the individual to meet some or all of the expense of long-term care should it be needed, there are a number of options to consider, from covering the costs from savings and investments or taking a Deferred Payment Agreement (DPA) with the local authority to equity release or taking out an immediate care annuity.  By planning early, you can ensure you are prepared. 

9.       Divorce:  going through a divorce is a stressful transition and a financial planner can be invaluable when it comes to cataloguing assets and advising on potential distribution, as well as other important factors, to ensure you are in the best possible financial position going forward. 

10.   Lifestyle protection:  make sure your family is protected and reduce the burden of life-changing events by arranging flexible protection policies to provide peace of mind such as life insurance, critical illness cover and income protection.

How to choose a financial planner

  • Get a recommendation:  speak to family and friends and see if they can recommend anyone.
  • Check qualifications and expertise
  • Get references:  speak to existing clients and check if they advise any clients in a similar situation to you.
  • How do they charge?  Make sure you get a breakdown of their charges and that you fully understand what you are getting for your money.
  • The psychology of money:  can the financial planner work out a financial life plan for you and create a vision for the future with a related financial plan?
  • Meet them:  make sure you feel they understand you and what you are trying to achieve.  Establishing a relationship with a financial planner you can trust is critical to achieving your goals.  Make the most of free consultations.
  • Do the understanding test:  make sure they explain everything clearly and don’t use jargon.  If you can explain their advice to a family friend, and if they understand it and can sense check it for you, then that’s a good way of checking that advice is sound.
  • What do you really, really want?  be clear about the advice you are looking for and what you hope to gain from the meeting and make sure they can offer it and are focused.
  • Check they are regulated:  they should be authorised by the FCA so check they are on its Register.

Breakthrough? UNISON postpones lobby of crunch finance meeting

‘Our mandate from our members remains. Industrial action remains a real possibility in the event of compulsory redundancies.’ – UNISON lead negotiator Tom Connollycapital

UNISON has postponed its lobby of Edinburgh Council’s Finance and Resources Committee tomorrow following assurances from senior councillors that privatisation plans will be dropped and redundancies delayed for further talks.

Amanda Kerr, Edinburgh UNISON branch secretary, said: “Following concerted UNISON pressure, we welcome this re-think and the dropping of privatisation plans. We also welcome the delay on redundancies, however we still have a long way to go and we will be building for a lobby of the next Finance and Resources Committee on 29 October.

“Our campaign has brought this to the public eye and that campaign will continue. We warned that the level of cuts envisaged would be devastating for services. After years and years of cut after cut, no council can sustain even more massive cuts.”

Lead negotiator Tom Connolly added: “This is an important victory. The damage privatisation would have caused cannot be overestimated. The union will focus on protecting jobs and conditions, engaging with our members and building towards the lobby on 29 October. Our mandate from our members remains. Industrial action remains a real possibility in the event of compulsory redundancies.”

Last week, UNISON warned that up to 3000 jobs could be lost as the council aims to balance it’s books, and councillors are set to consider a number of key proposals to address a £126m budget shortfall over the next four years at tomorrow’s meeting.

Councillor Alasdair Rankin, Finance Convener, said: “We are very clear about the scale of the financial challenge that the Council is facing. The Council is experiencing greater demand for services than ever before, with a growing population in Edinburgh and increasing numbers of older people and younger people, while our overall budget remains the same.

“We need to take action in order to achieve the necessary savings to meet this demand, and we are making every effort to do this in a way that will safeguard frontline services for the people of Edinburgh.

“We want to invest in the services that are important to the public but must also look to rationalise our spending where appropriate. We recognise that some of these proposals may involve tough decisions, including a reduction in Council jobs, particularly in middle management. But while this won’t to be easy, savings will allow us to prioritise the things that matter most to people.

“Our aim, as ever, is to improve and enhance the city for residents, and this package of measures is the next step to achieving this. Councillors will consider these proposals and we are looking forward to the discussions. ”

Osborne: pensioner bonds will pay 'best available interest'

Chancellor of the Exchequer George Osborne has announced that that the government’s 65 plus bonds will pay savers the best available interest rates.

One year bonds will pay an annual interest rate of 2.8%, while three year bonds will pay 4% – both rates are significantly higher than any others currently offered in the market.

A key part of the government’s long term economic plan is to support savers at all stages of their lives. That is why the government announced at Budget 2014 that National Savings and Investments (NS&I) will launch two fixed-rate, market-leading savings bonds, which will be available in January 2015.

These bonds, the rates of which were confirmed on Friday, will provide certainty and a good return for those who have saved all their lives and now rely on their savings in retirement.

With an investment limit of £10,000 per bond per person, the government expects that the 65 plus bonds will help an estimated 1 million pensioners. The bonds will be available directly from NS&I by post, phone or online.

The Chancellor made his announcement during a vsit to Eastleigh, where he met with pensioners to discuss the benefits of the 65 plus bonds. The visit formed part of the Chancellor’s tour around Britain aimed at highlighting the policies announced in Autumn Statement 2014.

Mr Osborne said: “A key part of our long term economic plan is to support savers and boost hardworking peoples’ financial security at all stages of life. That’s why the government is introducing savings bonds for people aged 65 and over, and why we’re confirming today that these bonds will pay the best available interest rates. They will give hundreds of thousands of older savers the certainty and comfort of a good return over the life of their investment”.

Investors can hold bonds jointly, but this will still count towards their individual limits – i.e. a couple could hold £40,000 jointly.

There is a minimum investment of £500 per bond.

Visit www.nsandi.com for further details.

 

Pensions: millions to benefit from impartial advice

piggyMillions of people will benefit from a right to free and impartial guidance on how to make the most of the new pensions choices that come into effect in April 2015, Chancellor of the Exchequer George Osborne announced today. This follows the Westminster government’s consultation on how best to deliver the radical changes to how people access their pensions announced at the Budget.

In total 18 million people will be able to benefit from the changes to pensions should they wish to do so.

From April 2015 300,000 individuals a year with defined contribution pension savings will be able to access them as they wish when they turn 55 – subject to their marginal rate of tax.

This is the biggest change to how people access their pensions in almost a century, removing the effective requirement for many to purchase an annuity.

The consultation since the Budget has shown that these changes have been overwhelmingly well received, with individuals supporting greater freedom and choice, and the pensions and insurance industry ready for the challenge of creating new, flexible products, which better suit individuals’ needs.

The government’s response to the consultation today confirmed that:

  • the guaranteed guidance on pensions choices will be provided by independent organisations rather than pensions schemes or providers
  • even more people will be able to benefit from the new pensions flexibilities as the government will continue to allow individuals to transfer from private sector defined benefit schemes to defined contribution pension schemes – subject to two important new safeguards
  • a new override will be introduced so that pensions schemes are able to offer individuals flexible access to their savings and the pensions tax rules will be amended to allow providers to develop new retirement income products that are tailored to the needs of individual consumers

Chancellor of the Exchequer, George Osborne, said: “It’s right to support hard working people that have taken the long-term decision to save for their future and I’m pleased that the responses we had to our proposals on making pensions more flexible have been overwhelmingly positive.

“We’re making sure that people have the right support to make their own choice about how best to finance their retirement and I’m pleased to confirm that everyone with defined contribution pension savings reaching pension age will get free and impartial guidance on their range of available choices at retirement.”

The government wants to ensure that guidance is trusted by consumers, and the vast majority, including most of the financial services industry who responded, said that consumers would not trust guidance given by a person or organisation with a vested interest in selling a financial product or service. It will bring together a range of delivery partners, including the Pensions Advisory Service (TPAS) and the Money Advice Service (MAS), which already provide guidance and support to consumers.

People with private sector defined benefit savings will continue to be able to transfer to defined contribution schemes (excluding pensions that are already in payment), alongside two new safeguards to protect both pension schemes and the individuals transferring out.

Guidance will be offered through a broad range of channels, including web-based, phone-based as well as face-to-face, and to remain free to the consumer will be funded by a levy on regulated financial services firms.

The Financial Conduct Authority (FCA) have also today published a paper which consults on the elements of the guidance guarantee for which the FCA will be responsible: setting and monitoring the standards with which guidance providers will have to comply, making and enforcing rules on how contract-based schemes signpost to the guidance services, and adjusting the FCA’s existing conduct rules to support the introduction of the guidance guarantee and in response to the new flexibilities.

Two new safeguards are being introduced to protect both individuals and pension schemes in relation to defined benefit to defined contribution transfers: a new requirement for an individual to take advice from an impartial financial adviser regulated by the FCA before a transfer can be accepted; and, new guidance for trustees on the use of their existing powers to delay transfer payments and take account of scheme funding levels when deciding on transfer values.

HM Treasury

HM Treasury also published the following guide today:

Pension Reforms: Eight things you should know

Understanding the pension system can be complex sometimes. We’ve explained how the new system will work and what it means for you.

1. We’re completely overhauling the system so you can take your pension how you like

In order to create greater choice and flexibility for people who have saved hard for their pension, we announced at Budget 2014 a series of changes to how people access their pension.

From April 2015, no matter how much you decide to take out from your pension after retirement, you will be charged the normal rate of income tax you pay on your salary (so either 0%, 20%, 40% or 45%) rather than the previous tax charge of 55% for full withdrawal.

2. 25% of your pension pot will remain completely tax-free, as it was before

You’ll be able to access 25% of your pot in one go without paying any tax.

3. We previously announced this would apply just to people with ‘defined contribution’ pensions

This is a type of pension also known as a ‘money purchase’ scheme.

This is when the money you and your employer pay in is invested by a pension provider chosen by your employers. The amount you get when you retire usually depends on how much has been paid in and how well the investment has done.

4. We’ve now announced that people who have a ‘defined benefit’ scheme will benefit too

A ‘defined benefit’ pension is typically a promise of a certain level of pension in retirement which is linked to your salary.

We’ve now announced that people in the private sector or in a funded public sector scheme will still be able to transfer from a defined benefit pension scheme to a defined contribution one if they want to, meaning they can benefit from the changes.

This means that around 18 million people will ultimately be able to withdraw their pension flexibly should they wish to do so.

5. Everyone who will be able to take advantage of the new reforms will be able to access free and impartial guidance

This will help people make confident and informed choices on how they put their pension savings to best use.

This guidance will be available through a number of different channels – via an online tool, over the phone, or face to face. Individuals will be able to choose the channel, or mix of channels, that they find most convenient.

It will be entirely impartial, so won’t be given by anyone who could be trying to sell you a product.

6. Your pension provider or scheme will be required to tell you about the guidance and how to access it

Accessing the guidance will be arranged by your pension provider, who will be required to tell you about it.

7. The changes will come into effect from April 2015

If you are over the age of 55, or will be from April 2015, you will be able to take advantage of the new system from then.

If you’re younger than 55 then you will be able to take advantage of the new system when you do reach 55.

8. You don’t need to do anything until then

If you’re thinking about retiring soon, you don’t need to do anything in the meantime, but we’ve also made other changes to help you save until then, such as our reforms to ISAs.

You can find more information about the pension reforms by reading our factsheet we published at Budget explaining the differences between the new changes and the old system, or more details on our response to the consultation.

Police warn of ‘bank’ phone call scam

imagesPolice are warning members of the public to be alert to phone calls from criminals who claim to be working for banks. The fraudsters frighten victims into believing their bank accounts have been hacked – and then persuade them to transfer their savings into new ‘safe’ accounts. 

The fraud works like this:

A phone call is received from a male pretending to be from their bank’s Fraud Department. He informs the victim that there has been suspicious activity on their bank account and asks them to call the helpline telephone number on the back of their bank card in order to verify his position at the bank.

The alarmed victim does this – but unbeknown to him/her, the caller keeps the telephone line open (there will be no dial tone). The phone call is then  ‘answered’ by a female and she was then ‘transfers’ the victim over to another male who claims to work in the bank’s Fraud Department.

He advises the victim that that their finances are at risk of fraud and they must transfer their money into ‘safe accounts’ immediately; he then manipulates the unsuspecting victim into transferring their savings into these new ‘safe accounts’.

A call of this nature is upsetting, and that’s what the fraudsters rely on – they stress the urgency of the need to act NOW to protect your funds and they don’t give victims the time to think.

If you have even the slightest of concerns or are suspicious in any way, hang up and use a mobile phone to call your bank – always call back from a different phone.