“Independent Financial Advisers,       Peterborough and London”

01733 355120

02036 377140

enquiries@hensoncrisp.com

Interest rate cut is a blow to pensions

4th August 2016: The Bank of England cut Bank Rate to 0.25% and introduces a package of measures designed to provide additional monetary stimulus

Interest rate cuts and my pension.

While homeowners with variable rate mortgages have been rejoicing at the recent cut to the Bank of England base rates, those coming up to retirement have been faced with a less favored outcome.

Pension savers could be big losers from the Bank of England rate cut, critics forecast that pension payouts will fall to record lows, with many of the top providers cutting their annuity payouts.

Soon after the Bank's decision to cut the base rate to 0.25%, yields on government bonds, otherwise known as gilts, dropped to an all time low.

Pension schemes are being hit by lowered interest rates, the impact will not be felt equally by everyone.

Please contact us if you'd like some advice on your pension.

Workplace pension saving remains one of the most tax efficient ways for most people to save and with returns from cash savings at an all-time low, using a pension fund to invest in other assets that have a greater opportunity to grow over the long term is still well worth considering.



Lower risk pension schemes

There are pension schemes with robust funding plans that have less risk, these will fare better. It is more important than ever for employers and employees alike to get good advice on pensions schemes.

The lower rate cut also puts annuity returns in jeopardy. An annuity provides a lifetime income and annuity rates have also fallen to low levels.

Though the impact on annuities has been partly offset by the rise in the stock market. The FTSE 100 surged by nearly 1.5% soon after the rate cut, and was around 12% ahead of its post-Brexit lows.




How much can you pay into your pension?

  • You can contribute as much as you earn in a year, up to £40,000 annually
  • You can also use HMRC’s “carry forward rules” to use the past three year's pension contribution limits - if you haven't already
  • Once you start drawing from your pension your annual limit is reduced to £10,000
  • The lifetime pension limit reduced from £1.25m in 2016



Are you a high earner?

The generous tax reliefs that have been given to pension arrangements mean that pensions have long played an important role in tax planning for high earners.

However, in recent years, increasing restrictions have been placed on these reliefs, just as the rising burden of income tax has made them all the more valuable.

The amounts you can pay in and take out without being penalised with heavy tax charges have been reduced but pensions still continue to offer significant tax benefits.

Workers earning over £150,000 will have their annual pension allowance gradually reduced to £10,000 until they earn £210,000, at which point they no longer qualify for tax relief on contributions.

If you want to reduce the amount of tax you pay, come and talk to us. Planning ahead may help you to lessen your tax burden.



Government plans to save companies crippled by pension costs

Government plans to save pension scheme.

Companies that still offer final salary pension schemes will find the cost of maintaining them soar as a result of lower interest rates and will have to find the money to fill the gap in their pension schemes.

Pensioners could lose nearly a third of their retirement pot under Government plans to save companies being crippled by growing pension costs

Cuts to final salary-type pensions could become possible under measures being considered by MPs in the influential Work and Pensions Committee to make them more affordable for companies.

This might mean that “Cash-strapped” employers could reduce workers' final salary pensions without first going through courts, which is currently not allowed.

Pressure is rising on the Government to make final salary pensions more sustainable, many retirees could be affected by the possible overhaul,

Currently when companies go bust their pension schemes are rescued by a Government funded lifeboat scheme called the “Pension Protection fund”. In such cases employees lose as much as 22pc of their pension, depending on how much they earn.




Any information in this blog article does not constitute advice and should not be acted upon without taking professional advice.


society of later life advisers : advising on care fee funding and later life

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.

We are members of SOLLA: society of later life advisers. At Henson Crisp we pride ourselves in providing a personal and professional service to our clients.

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.


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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


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Later Life Advice

Accessing quality and specialist advice is crucial to older people now more than ever.

We are delighted to be members of SOLLA. The Society of Later Life Advisers provides a framework which ensures this advice is available and easily accessible to those who need it, and importantly, that the advisers who give this advice are trust worthy and empathetic, as well as having the appropriate knowledge to help older people with their financial affairs.

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.


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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.


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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.


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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.


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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.


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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.


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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.



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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


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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 »





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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 <<


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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


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