Finance

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From April 2015 there are new rules on how much you can withdraw from your personal pension.

You may have heard that the Chancellor of the Exchequer has introduced new rules about withdrawing money from a pension. There have been press reports about people being able to blow their pension pot on a Lamborghini.

From 1 April 2015, if you have saved into a defined contribution (DC) pension, for example, a Personal Pension Plan or a Stakeholder Pension Plan, you will have access to the entire fund from the age of 55. The current rules say that this age limit will go up to 57 in 2028 and will increase with the state retirement age. So you have to be careful if think you will you need to access funds before this date.

Governments can alter the state retirement age so there are no guarantees that if you are 57 in 2028 you will have access to your pension pot. Under the new rules you can still purchase an annuity if it suits you, extract all of your pension savings in a lump sum, or keep your pension invested and access it over time or any combination of these options that you want to choose.

People say their goal in life is the pursuit of happiness, with the major challenge is that neither money nor time are unlimited.

As having enough money is often key to major life goals, financial advisers can steer you to make the best investment and spending choices for your personal situation.

Don’t believe us? Take a look at five reasons why an independent financial adviser (IFA) can be a force for good.

A recommendation from a trusted friend or colleague is ideally the best place to start, but it still pays to do your own research.

The Law Society has a search facility that allows you to search by field of expertise for example, conveyancing, family law and location. It's important that you see an appropriate lawyer for your specifc needs - you wouldn't go to a lawyer who specialises in buying and selling houses for advice on floating a business.

It's also worthwhile having an initial meeting with a lawyer to allow you to assess them and get a feel for how you would get on.

Sometimes, though not always, these initial meetings can be free. If you're unsure exactly what area of law you require, feel free to phone us to discuss the issue and we can point you in the right direction.

One of the most important insurance policies needed is Income Protection Cover.

Also called 'Income Replacement' or 'Permanent Health Insurance', this insurance covers the holder in the event of long term illness or injury that causes a significant loss of income.

Income Protection Cover

Typically, policies cover the holder until the age of retirement. Income protection insurance is not the same as Payment Protection Insurance, nor the same as Critical Illness insurance.Income Protection Cover would start to pay out if health conditions caused a loss of income for a specified period. Unfortunately, the occasional sick day would not trigger a pay-out. They are usually established with either a one month, three month, six month or twelve month deferment period; the longer the deferment period the cheaper the policy is.

Income Protection cover (also called ‘Income Replacement’ or ‘Permanent Health Insurance’) pays out an income in the event of long term illness or injury that causes a significant loss of income.

It’s not the same as critical illness insurance (which pays out a lump sum) or payment protection insurance (which covers only a particular set of payments).

Unfortunately income protection cover doesn’t kick in after a couple of sick days. They usually have a deferment period of more than one month. The longer the deferment period, the cheaper the policy is. So, if you are employed and your employer continues to provide full sick pay for a certain period, you might choose to have income protection cover with benefits kicking in when the employer cover ends.