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FINANCE
We will bring you a financial feature every fourth issue, if you have a financial
question, please write in to the paper. |
Joys and pitfalls in Retirement
The time has come when, at last, retirement is in your grasp. It should be a time when you
can go out and do all the things you wanted to do but simply never had the time to. Your
friends already retired tell you that they are busier since they retired than they ever
have even been! But there is one thing that is required to ensure that your retirement is
enjoyable and not a constant frustration...MONEY. Maybe not as much as when you were
earning, but don't wholly believe the old adage about you can't buy happiness. Retirement
won't be much fun if you can't afford to do the things you want to! Retirement planning
doesn't happen by accident and so this is the time when you really do need Independent
Financial Advice. Over the coming months I will go through different stages leading up to
and during retirement informing you of different choices you need to make. The first area
that needs to be examined is your pension. If you have a Personal Pension what options do
you have? Most people take the annuity (pension income) offered to them by the pension
company they have saved with. They will let you know that you have an "Open Market
Option" meaning that the annuity can be purchased from a different company, but
surprisingly few people do this. This can a great mistake because annuity rates vary and
often it is possible to get a better annuity from a different company. With annuity rates
currently at historical lows, you may want to retire but not lock into low rates. There
are ways where you can take your lump sum and part, or your entire pension income
entitlement, without having to purchase an annuity right up until your 75th birthday.
Again you would need professional advice as to whether this is the best option for you.
Once in retirement 'investments' might be important to you, You need to ask yourself, how
much income do you need to live on? Can you safely invest to top up your income without
risking your capital? For many people their home is their biggest asset, but bricks and
mortar can't pay bills! What are the benefits and disadvantages of looking at Equity
Release Schemes? Which ones should you consider and what are the pitfalls? Are you
utilising your annual Capital Gains Tax allowances to reduce tax? Will Inheritance Tax be
an issue? Has the rise in your property value put you created or increased IHT liability?
If so then your family could be paying the Inland Revenue 40% from their inheritance. The
"nil rate" IHT exemption at present is only £255,000 and this will include
everything you own. The best summary of IHT I have heard was from Lord Jenkins when he
declared "Inheritance Tax is broadly a voluntary levy paid by those who distrust
their heirs more than they dislike the Inland Revenue". Long Term Care is also an
issue that a lot of people do not consider. The belief is the government will fund this
for you. Not so! Every year about 70,000 people are forced to sell or raise money against
their home to fund their care fees*. Average Care fees range from £284 for residential
and £400 for nursing care**. Four hours of care per day at home cost about £240 per
week***. If you need care now do you know what benefits are available to you and what is
the best way to fund the care you require? Consider this, if you do not get good advice on
this subject, whether it is now while you are still healthy, or when you need care, you
increase the danger that the inheritance that you were hoping to pass on may never happen,
because your money will have run out! I shall go into more detail over the next months
about all the issues I have raised and more. Pam Blyth MLIA(Dip). Senior Consultant.
Financial Futures IFA Limited.
*Liberal Democrats research June2001.**Lang and Buisson 2001.***British Nursing
Association 1999. |
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| BROADBAND
CAMPAIGN |
We would like to thank all of you who completed and
returned the flyer for Broadband Registration in the last issue. At the time of typing,
the number registered stands at 158 and many more registrations have not yet been
processed. Slowly but surely we are climbing towards our target. WE WILL MAKE IT. There
seems to be some confusion over Broadband in Sheringham, some say that we already have
Broadband, some say that we don't. The truth of the matter is that there is more than one
version available, all of them have advantages and disadvantages and will suit the needs
of different people. In our next issue we will explain the differences between them. In
the meantime, please keep registering your interest on either
http://www.at-sheringham.co.uk or via local
service provider Paston Chase http://www.paston.co.uk who
will be happy to answer any queries you may have about broadband. You can still complete
the flyers you had with the last issue and hand them in to our office. Remember, you are
registering an intrest NOT committing to having the service.
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| Carnival Quiz results and awards are
available at the paper and will be published on www.sheringhamcarnival.co.uk. |
Sheringham Evening W.I. Strawberries and Cream, served with wine, was one of the treats at
our August meeting, the second being the entertainment provided by Ann Stephenson,
'Laughter with humourous verse', which had us chuckling and applauding. The Dutch theme
for our entry in the Sheringham Carnival, 'Tulips from Amsterdam', complete with a
windmill and authentic Dutch costumes, made by members, had received a good welcome from
the crowds on the route and had been very much enjoyed by those taking part. Useful
meetings had taken place with Norman Lamb, MP and the Chairman of NCC Social Services to
press home our Albert Hall resolution on the Care of Older People and Norfolk Federation's
Public Affairs Committee had pledged it's support for our campaign. Next meeting,St.
Andrew's Church Hall,11th September at 7.30pm. |
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