“Independent Financial Advisers,       Peterborough and London”

01733 355120

02036 377140

enquiries@hensoncrisp.com

Please Confirm

OK Cancel

The new “flat rate” pension

20th May 2015

The Government is positioned to hit retirees with punitive state pension deductions, making it difficult if not impossible for thousands retiring over the next decade to do so on a full pension.

April 2016 - The New State Pension will be launched

Next year the “new state pension” will be launched, paying approximately £2,000 per year more than the existing basic rate pension (currently £115.95 per week and £6,029.40 per year).

The “new State Pension” will replace the old two-tier arrangement of a basic pension topped up by an extra earnings-linked payment, with a single-tier payment effectively combining both.




More than half of workers retiring in 2016-20 will fail to qualify for new full state pension of £148 a week

By Tanya Jeffries for “thisismoney.co.uk” 13th Jan 2015

new state pension April 2016 will you get the full amount?

Less than half of the 2million people retiring between 2016 and 2020 will get a full new flat-rate state pension of at least £148.40 a week, according to official data.

* Since this article the Government state that the new minimum will be £151.25

Read full article >>



Will you receive the FULL new Pension?


Many retiring after 2016 won't get full new pension

Right form the outset, the Government have acknowledged that many retiring after 2016 would not get the full new pension because deductions would be made for any periods spent “contracted out” of the second state pension.

You could be effected because you contracted out

Being “contracted out” means savings that would have gone into the second state pension have instead been invested into either a company or personal pension.

It is impossible to calculate how much anyone would be penalised since the Government declined to disclose the formula that would be used.

More transparency is needed

David Smith, pensions expert at Tilney Bestinvest, said: “We are getting lots of calls from people who have received their state pension forecast and are shocked. We need far more transparency about what is going on here, and how the deductions are calculated.”




How is the state pension changing?

The current state pension system is vastly complex and many people end up failing to claim vital benefits and credits.

At the moment, savers with 30 years of National Insurance (NI) contributions can receive a basic state pension of £115.95 a week.

Those in higher paid jobs can build up a second state pension (previously called SERPS : State Earnings-Related Pension Scheme).

Those on lower incomes can claim extra credits, and there is a boost for those with savings, too.

But from April 2016

But from April 2016, everyone with 35 years' worth of full-rate NI contributions will no less than £151.25 per week. The actual amount will be set in autumn 2015.

There will be no more credits and no more benefits.

If all this wasn't confusing enough, the changes have been coupled with a shake-up to the state pension age.

Women's pension age, which is currently 62, is already creeping up. By 2018, men and women will have the same retirement age of 65.

Between 2018 and 2020, the Government then plans to increase the state pension age for men and women to 66 and it will eventually rise to 67.




How your new State Pension is calculated


1. In April 2016 DWP will assess your “foundation amount” on which your future pension accrual will build. This will be the highest amount you qualify for either under the old or new system.

2. Under the old system, 30 years' NI contributions will qualify you for a basic state pension, currently £115.95; with any earnings-linked pension added on top. Under the new system, 35 years' NI contributions will qualify for a full-level state pension of around £155 weekly.

3. But deductions will be made under both the new and the old system for any period contracted out of the state earnings-linked top-up known as Serps or S2P. These deductions will be based on the notional GMP you would have been entitled to when you contracted out of the state system, and could be applied across your career.

4. After 2016, if you continue working you will add £4.24 weekly (rising in line with the increase in the pension) for each year worked to your state pension entitlement.

5. The value of the state pension is guaranteed to rise in line with either earnings, inflation or 2.5pc, whichever is the highest.




Deferring new State Pension

When you reach State Pension age, you don't need to stop working or claim your State Pension immediately. You can defer claiming your State Pension. If you put off claiming, you could get extra State Pension which would be paid as a regular amount when you claim.




How to check your National Insurance record

You can ask for a national insurance statement online to check if you have gaps in your National Insurance record. You'll need to say which years you want your statement to cover.

online.hmrc.gov.uk/shortforms/form/NIStatement



Wealth Managment and Later Life Advice

Henson Crisp Ltd are Independent Financial Advisers (IFAs) based in the city of Peterborough. We provide high quality Financial Advice, Financial Planning & Wealth Management advice. Our advisers are able to advise on a range of financial areas from investments and savings, retirement options, tax planning and business information to advice at Later Life and care fee funding options.

The value of your pensions and investments and income from them may go down as well as up. You may not get back the original amount invested.


Close 'Click here to close extra information'


Our London Office

25.03.15

We have recently opened our London office; many of our existing clients are based in London.

London Office



i2 Office, No.1 Royal Exchange, London, EC3V 3DG

T:020 37516510

E: enquiries@hensoncrisp.com


Close 'Click here to close extra information'


Later Life Advice

When you save for a pension, you shouldn't focus only on how much you're putting into it. You should also regularly review how it's being invested. And as you get older, you should probably change your investment strategy to reduce risk as retirement draws closer. This is where we can help.

We pride ourselves in our expertise we can offer in this area. We will look at getting you the best possible retirement that your savings, Investments and pension will allow and cover any protection issues like Long Term Care.

There are many options for funding long-term care and they can often be complicated to understand. Long Term Care expert advice can give you peace of mind to those needing care and to their family.

We can discuss the many care fee funding options available including immediate need care fee payment plans and deferred payment agreements.


Close 'Click here to close extra information'


Pensions & Retirement Options

Pension Planning

It's essential that you review your pension situation regularly. We can help you with taking steps to make it more certain that your pension pot will be able to achieve the income you want when you retire.

We can help you look at your retirement options and make sure you're making the most of tax benefits when paying into a personal pension and advise on consolidating any earlier pension schemes you may have entered into with previous employers.

Let us explain the new pension freedom changes happening in April 5th 2015 which give you more choice on Annuities and Income Drawdown.

The value of your pension can fall as well as rise and you may not get back the original amount invested.


Close 'Click here to close extra information'


Investments and Savings Advice

Our team of advisers assess where you are financially and where you'd like to be positioned to cope with future life stages. It's important to make sure your investment planning is on track

We can advise on a range of products, including but not limited to:

Property Investment

Premium Bonds

National Savings Certificates

Individual Savings accounts

Investment Bonds

Offshore Investment Bonds

Unit and Investment Trusts

Share Portfolios

The value of your pension can fall as well as rise and you may not get back the original amount invested.


Close 'Click here to close extra information'


Long Term Care

The options for funding long-term care are varied and can often be complicated. So if you or a loved one need to pay for care at home or in a care home, it's important to know the facts.

We can discuss the many care fee funding options available including immediate need care fee payment plans and deferred payment agreements.


Close 'Click here to close extra information'


Tax Planning

For those with large portfolios or whose estates fall into the Inheritance Tax trap specialist independent financial advice can provide you with tax mitigation strategies to minimise your tax liability.


Close 'Click here to close extra information'


Business Advice

If you're a business owner it's a good idea to seek guidance from an independent financial adviser (IFA) as we can help you with the financial matters that are the foundation of every business. We can give you advice on how to structure your company, insure your business, protect your employees' financial well-being and protect the business if a key employee cannot work.

Covering but not limited to:

Business Protection - Providing Cover for Key Personnel, Directors and Groups. Providing replacement income if an employee is absent from work through long-term illness or injury.

Employee Benefits - Advising on benefits such as pensions and life protection to your employees.

Directors Pensions - The aim of a Director's Pension is to build up a sum of money in a tax-efficient way that will be used to provide you with an income when you retire.

Auto Enrolment - A workplace pension is a way of saving for your retirement that's arranged by your employer.


Close 'Click here to close extra information'


Advising on your savings and investments for your future

Our independent financial advisers can offer expert financial advice to both individuals and businesses

We're here to assist you in all areas of financial planning, helping you to achieve your financial and lifestyle goals and protect all that's important. The type of advice we give you can depend where you are in Life.

For instance at Pre-Retirement we would help you in ensuring that sufficient reserves have been built up to provide the desired level of retirement. Whereas at Later Life we would be looking to ensure you're enjoying the best possible retirement that your savings and pension will allow and minimising inheritance tax on anything that you wish to pass and perhaps investigating Long Term Care options.

The value of investments and income from them may go down. You may not get back the original amount invested.



Close 'Click here to close extra information'


Useful Articles on your Pension Pot

21st Oct 2015

Planning for Retirement The importance of Planning for Retirement
10 Top Retirement Planning Tips Pension Forecast, carry on working, defer pension income and more
Getting the most from your Pension Savings, Tax Relief, Reviews
Pensions advice for self-employed What you should consider on Pensions if you're self employed
Taking regular withdrawals from your pension pot? The danger of taking regular withdrawals from your pension pot
How big should my pension pot be? Anything from £12,000pa to 2/3 of your salary


Close 'Click here to close extra information'


The importance of Planning for Retirement

Once you reach the stage where you're considering your retirement income, expert financial advice becomes even more important. Many of the choices you make at this time will affect your lifestyle so you need to make sure they're right.

A pension is a form of investment or savings plan designed to provide you with an income to live on when you retire. There are many different types of pension arrangements available, including the state pension.

Options are varied and can be tailored to your circumstances.

Find out More on Planning for Retirement »  Planning for Retirement




10 Top Retirement Planning Tips

Let us help you to get the most from your retirement. You need to look at finances and seek advice if needed, also think about making the transition from work to retirement as smooth as possible. It can prove difficult going from full time work to being at home.

10 Top Retirement Planning Tips, Find out More   Find Out More »




Getting the most from your Pension

Do you want to know how to get the most from your pension?

There are a number of things you can do to improve the performance of your pensions.

How to get the most from your Pension  Find Out More »




Pensions advice for self-employed

You can't rely on the state pension for your retirement

It's really important to start planning ahead as soon as possible, so that you can live life the way you want when you retire.

Being self-employed can leave you vulnerable when it comes to your pension. It is very likely you will need another pension, apart from the state pension, in order to retire comfortably.

Our advisers are qualified to offer comprehensive guidance on taking out a personal pension. When it comes to your pension it's important you take proper advice.




Do you want to find out more on Pensions advice for self-employed?   Find Out More »




The dangers of taking regular withdrawals from your pension pot

Following changes introduced in April 2015 you have more choice and flexibility than ever before over how and when you can take money from your pension pot. It's important to take your time to understand your options, and get the right help and advice. What you decide now will affect your retirement income for the rest of your life.

Using the new freedoms to make regular withdrawals without keeping a close eye on the markets and their effects on your fund is a dangerous route.

The danger of taking regular withdrawals from your pension pot  Find Out More »




How big should my pension pot be?

Anything from £12,000pa to 2/3 of your salary?

Everyone wants to save enough to ensure they have a comfortable retirement. But it's difficult to know just how much income you'll need as a pensioner.

Many experts are saying 2/3 of your income to live very comfortably (and maintain their lifestyle) and £12,000* for a very basic standard of living.

Do you know how big should my pension pot be?   Find Out More »





Close 'Click here to close extra information'


Website Sitemap



Close 'Click here to close extra information'


Henson Crisp ~ Qualified Financial Advisers Peterborough and London

What do our clients say about the financial advice they receive?

Friendly yet professional service, we have known Jonathon for many years after we were referred to him by a Mortgage Advisor. He has provided us with sound financial advice in this time and we trust his judgement wholeheartedly. As a result we have referred Jonathon to numerous other friends and family, who are equally trusting of him and the services he is able to offer.

Ian and Wendy Hodges-Jackson

When the time came to look closely at my pension plans I knew that I would need help. I am used to dealing with quite complex financial matters, but pensions are different with constantly changing rules / laws, and great care needs to be taken to ensure that you get the best result for your future needs. It is an extremely important decision which I felt required expertise from people used to dealing with such matters. I felt at ease in all my discussions with Rachelle Jordan from Henson Crisp and felt confident that they would do their best for me. At all times I knew where I stood regarding fees etc., and all the intricacies of the pension plans were explained to me carefully, efficiently. and in a friendly manner .

Mr & Mrs N Ely

>> Click here to see what our clients have to say <<


Close 'Click here to close extra information'


Contact Henson Crisp ~ Financial Advisers Peterborough

Contact:

Henson Crisp
Peterscourt
City Road
Peterborough
Cambs
PE1 1SA
Tel: + 44 (0)1733 355120
Email: enquiries@hensoncrisp.com


Close 'Click here to close extra information'