Wills and LPAs
I was listening to Michael Buerk on the Moral Maze which had the very apt title “Danger and Opportunity?”
In the introduction Michael said words to the effect that “many of us are banged up at home writing our wills according to the law Society which is struggling to keep up with demand”
I once had a client who said: “Give me a one-handed adviser”. He went on to explain that I kept on saying ‘on the one hand this and other hand that’, but he just wanted the answer.
I understood his frustration but as soon as I explained there was not one right answer and it was important to consider both sides of the argument he was happy with my two-handed approach.
Advice in the workplace
When presenting to trustees I always know when I have got their attention because I get a strange look when I ask; “Do you want your members to a second-class service”?
I go on to explain that if people contact me for help as they approach retirment because they may have seen my name in the papers on heard me on the radio ask one of the team will give them a personal service. This involves explaining all of their options and an offer to tailor our advice to their individual circumstances.
Think of your pension as a long salami – OK think of a £ 100,000 pension pot as being made up of 10 separate pots with £ 10,000 in each pot.
Instead of chopping off 25% of the salami and eating it (sorry, spending it) without giving any of it to the tax man, you can just chop of a slice of the salami (e.g. £ 10,000) and take 25% (£2,500) tax free.
Fixed Term Plans
Historically, the only way to convert a pension fund into income was by purchasing a lifetime annuity or investing in pension drawdown. One is totally secure but inflexible, the other completely flexible but has a number of risks.
Then in 2007 the first fixed term annuity or fixed term income plan in 2007 was launched.
MOS annuity misselling part 2
Are you worried you may have been mis-sold an annuity? The letter that can help you beat the insurance bandits - By Jeff Prestridge for The Mail on Sunday Published: 22:31, 12 October 2019
This is a brilliant article in the Mail On Sunday - Hundreds of pensioners have backed The Mail on Sunday’s campaign calling for insurance companies to compensate all customers who were railroaded into taking out inappropriate pension annuities, going back to the early 2000s. Launched last week in the wake of a £23.9million fine imposed on Prudential for mis-selling annuities from 2008, our Justice for Annuity Victims campaign has drawn overwhelming support – not only from readers bamboozled into poor-value annuities they cannot escape, but also from pension experts.
FT Blow for pensioners
Blow for pensioners as bond market rally hits annuities - Financial Times - Josephine Cumbo, Pensions Correspondent September 5 2019
Since the beginning of the year, annuity rates — what is offered by insurers to turn a pot of pension cash into a secure retirement income — have fallen by 15 per cent. This means pensioners are getting a lot less from their savings.In practical terms, a £100,000 pension pot now buys a 65-year-old a yearly income of £4,654 or £759 less than at the start of the year
Sam Brodbeck personal finance editor Telegraph- 21 Aug 2019 The silent killer taking £2,713 from your £100k pension Annuity rates have been lousy for years. The pitiful income they pay are one of the reasons the Coalition government scrapped the effective compulsion to buy them, back in 2015, with the launch of "pension freedoms". Boris Johnson’s pledge to leave the European Un ...