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Source: http://chriswickscfpretirementspecialist.blogspot.com/feeds/posts/default

<?xml version='1.0' encoding='UTF-8'?><?xml-stylesheet href="http://www.blogger.com/styles/atom.css" type="text/css"?><feed xmlns='http://www.w3.org/2005/Atom' xmlns:openSearch='http://a9.com/-/spec/opensearchrss/1.0/' xmlns:blogger='http://schemas.google.com/blogger/2008' xmlns:georss='http://www.georss.org/georss' xmlns:gd="http://schemas.google.com/g/2005" xmlns:thr='http://purl.org/syndication/thread/1.0'><id>tag:blogger.com,1999:blog-2786900589273621430</id><updated>2024-03-06T12:03:12.338-08:00</updated><category term="Retirement Options"/><category term="retirement planning"/><category term="Higher Rate Pension Relief Restricted"/><category term="cash flow based modelling"/><category term="pension tax relief"/><category term="Annuities"/><category term="Business Loans"/><category term="Increased ISA Allowances"/><category term="Open Market Option"/><category term="Pension Consultant"/><category term="Pension Protection Fund"/><category term="Pension Transfers"/><category term="UK investor compensation"/><category term="business finance"/><category term="chris wicks cfp"/><category term="early retirement"/><category term="financial planning"/><category term="n-trust"/><category term="pensions v isas"/><category term="personal pensions"/><category term="stakeholder pensions"/><category term="state pension"/><category term="tax free cash"/><title type='text'>Chris Wicks CFP Retirement Income Specialist</title><subtitle type='html'>Professional UK based pension and retirement income specialist. In his career spanning over 20 years Chris has advised both corporate and individual clients on all aspects of pension provision.</subtitle><link rel='http://schemas.google.com/g/2005#feed' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/posts/default'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/'/><link rel='hub' href='http://pubsubhubbub.appspot.com/'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><generator version='7.00' uri='http://www.blogger.com'>Blogger</generator><openSearch:totalResults>13</openSearch:totalResults><openSearch:startIndex>1</openSearch:startIndex><openSearch:itemsPerPage>25</openSearch:itemsPerPage><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-4988470255953478910</id><published>2011-03-16T02:46:00.000-07:00</published><updated>2011-03-16T02:47:21.466-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="business finance"/><category scheme="http://www.blogger.com/atom/ns#" term="Business Loans"/><title type='text'>Alternative Sources of Business Finance</title><content type='html'>With banks showing contunued reluctance to provide borrowings to small busineses funding new projects, buying new plant or machinery or even simply restructuring the finances of a business has become more difficult. However what business owners often overlook is that there are other sources available to them. These include the use of personal savings and investments as well as using some of the equity that they may have in their form to take a further advance on their mortgage. However there is a further source that is often overlooked which is available to the owners of limited companies. Limited company owners are able set up a type of pension scheme which can make loans to the company or buy property, including the trading premises of the business if they are already owned by the company or its owner. Whatever people may think of pensions, most people have accumulated funds over their working lives, perhaps built up during previous employments. These are often dispersed amongst a range of policies with different insurance companies. These funds can be brought together into a single arrangement which can then be used to do a number of things. It can make a loan to the company at a minimum interest rate of 1% over base (somewhat better than rates generally available from banks). This needs to be secured with a first charge over assets held by the company, which can include its book of debitors (unpaid customer invoices). If the company owns its trading premises the fund can buy the building thereby releasing cash which can be used to restructure the business finances and perhaps get rid of the overdraft. Alternatively the pension can buy new trading premises for the business for which the business would pay rent at a commercial rate, which goes into the fund. These schemes are extremely versatile. However, they are not without their pitfalls and it is important that advice is taken from an experienced pension consultant.</content><link rel="related" href="www.chriswickscfp.co.uk" title="Alternative Sources of Business Finance"/><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/4988470255953478910/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=4988470255953478910' title='1 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/4988470255953478910'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/4988470255953478910'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2011/03/alternative-sources-of-business-finance.html' title='Alternative Sources of Business Finance'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>1</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-3182141197331276692</id><published>2009-08-22T04:46:00.001-07:00</published><updated>2009-08-22T04:46:09.914-07:00</updated><title type='text'>Final Salary Pension Scheme Shortfalls - Ecademy</title><content type='html'><a href="http://www.ecademy.com/node.php?id=133602">Final Salary Pension Scheme Shortfalls - Ecademy</a> Shared via <a href="http://addthis.com">AddThis</a> </content><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/3182141197331276692/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=3182141197331276692' title='1 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/3182141197331276692'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/3182141197331276692'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2009/08/final-salary-pension-scheme-shortfalls.html' title='Final Salary Pension Scheme Shortfalls - Ecademy'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>1</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-5183496385871460158</id><published>2009-06-23T12:54:00.000-07:00</published><updated>2009-06-23T12:56:39.015-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Pension Consultant"/><category scheme="http://www.blogger.com/atom/ns#" term="Pension Protection Fund"/><category scheme="http://www.blogger.com/atom/ns#" term="Pension Transfers"/><title type='text'>Inadequate Protection When Final Salary Schemes Close</title><content type='html'>The Pension Protection Fund only provides limited protection if an employer goes bust and in some cases substantial reduction in the pension payable. Anyone with final salary benefits should arrange for them to be reviewed by a specialist pension consultant.</content><link rel="related" href="www.n-trustgroup.co.uk" title="Inadequate Protection When Final Salary Schemes Close"/><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/5183496385871460158/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=5183496385871460158' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/5183496385871460158'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/5183496385871460158'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2009/06/inadequate-protection-when-final-salary.html' title='Inadequate Protection When Final Salary Schemes Close'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-7075644070535926015</id><published>2009-06-15T15:33:00.000-07:00</published><updated>2009-06-15T15:34:56.983-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Higher Rate Pension Relief Restricted"/><category scheme="http://www.blogger.com/atom/ns#" term="pension tax relief"/><category scheme="http://www.blogger.com/atom/ns#" term="Retirement Options"/><category scheme="http://www.blogger.com/atom/ns#" term="retirement planning"/><title type='text'>Pension savers miss out on £720 million</title><content type='html'>Research recently published by Unbiased has revealed that UK pension savers are missing out on &pound;720 Million in tax relief by failing to top-up their employers' pension schemes. Higher rate tax payers who make additional contributions are entitled to tax relief at up to 40% on contributions, which they make to improve their retirement income. These can be to the employer's scheme or to a private arrangement. With many schemes under pressure and reducing the rate at which future benefits build up, or even ceasing to provide future benefits, it has never been more important for people to take personal responsibility for their retirement planning. Tax breaks are available for pension contributions as well as for other forms of saving. Unbiased have provided a tax waste calculator to help you find out whether you are making full use of the relief available to you. Find out how much tax you are wasting <a href="http://www.unbiased.co.uk/financial-tools/tax-waste-calculator/" rel="nofollow">here </a></content><link rel="related" href="www.n-trustgroup.co.uk" title="Pension savers miss out on £720 million"/><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/7075644070535926015/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=7075644070535926015' title='1 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/7075644070535926015'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/7075644070535926015'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2009/06/pension-savers-miss-out-on-720-million.html' title='Pension savers miss out on £720 million'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>1</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-7132168086584009496</id><published>2009-05-26T12:10:00.000-07:00</published><updated>2009-05-26T13:13:37.819-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="cash flow based modelling"/><category scheme="http://www.blogger.com/atom/ns#" term="chris wicks cfp"/><category scheme="http://www.blogger.com/atom/ns#" term="Retirement Options"/><category scheme="http://www.blogger.com/atom/ns#" term="retirement planning"/><title type='text'>Half of all UK adults are making no retirement savings</title><content type='html'><div style="text-align: justify;">A recent survey commissioned by the BBC suggests that half of all UK adults have made no pension savings. Only 36% of under 30's make any contributions and only 45% of 41 to 65 year olds contribute. Most cite lack of affordability but others expressed concerns about pensions given recent stock market falls and the well publicised failure of companies such as Equitable Life. </div> <div style="text-align: justify;">This is not as straight forward as it seems. For many on low earnings it is arguable that they are quite right in not making private pension contributions as this is simply likely to tip them over the threshold for state benefits of far greater value than the pension which they will receive. The UK government has tried to remedy this effect by introducing Pension Credits. You can find our more about Pension Credits <a href="http://www.thepensionservice.gov.uk/pensioncredit/home.asp" rel="nofollow">here</a> If you know what your expected private and state pensions are, you can can obtain an estimate of your entitlement, if any. It would be sensible for anyone on low earnings who is considering making private contributions to check whether they will actually be better off. </div> <div style="text-align: justify;">The FSA consumer website <a href="http://www.moneymadeclear.fsa.gov.uk/home.html" rel="nofollow">Moneymadeclear</a> also provides a great deal of useful information, not only on pensions but other aspects of financial planning. </div> <div style="text-align: justify;">Whilst I recognise only too well that younger people can only afford very limited contributions, it is worthwhile mentioning that if an early start can be made with retirement planning a respectable level of retirement income can be built up at an affordable contribution rate. The opposite is also true. If contributions are left too late, it will be nearly impossible to make them up. In <a href="http://www.moneymadeclear.fsa.gov.uk/tools/pension_table_popup.htm" rel="nofollow">this</a> table the FSA have shown estimates of the levels of pension which can be expected given different levels of contributions and starting ages. For example, a 20 year old contributing &pound;50 per month could expect a pension of &pound;238 per month when they retire at 65. They would need to live just under 8 1/2 years after retirement (i.e. to age 72 1/2) which is within most people's life expectancy, i.e. they are likely to get their money back. Of course, other assets can be used such as properties and business sale proceeds. These need to be factored into retirement planning. The key word here is 'Planning'. In order to ensure that you are able to achieve the level of income in retirement which is needed to maintain your standard of living, you need to have a plan which is updated regularly. The plan should be based on cash flow modelling as this is the only effective means of analysing the impact of different types of assets as well as changing levels of requirement. </div></content><link rel="related" href="www.n-trustgroup.co.uk" title="Half of all UK adults are making no retirement savings"/><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/7132168086584009496/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=7132168086584009496' title='1 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/7132168086584009496'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/7132168086584009496'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2009/05/half-of-all-uk-adults-are-making-no.html' title='Half of all UK adults are making no retirement savings'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>1</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-6137929011582682210</id><published>2009-04-22T12:30:00.000-07:00</published><updated>2009-04-22T12:34:55.024-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Higher Rate Pension Relief Restricted"/><category scheme="http://www.blogger.com/atom/ns#" term="Increased ISA Allowances"/><title type='text'>Government Restricts Higher Rate Relief on Pension Contributions</title><content type='html'>In today's Budget the Chancellor has restricted higher rate tax relief on employee contributions to pensions where the employee earns £150,000 or more and makes annual contributions of £20,000 or more. For further details see <a href="http://www.hmrc.gov.uk/budget2009/pensions-industry-1550.pdf">this</a> Good news ISA allowances have been immediately increased to £10,500 for the over 50's and for everyone from 6th April 2010.</content><link rel="related" href="www.chriswickscfp.co.uk" title="Government Restricts Higher Rate Relief on Pension Contributions"/><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/6137929011582682210/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=6137929011582682210' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/6137929011582682210'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/6137929011582682210'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2009/04/government-restricts-higher-rate-relief.html' title='Government Restricts Higher Rate Relief on Pension Contributions'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-6337440273141224546</id><published>2009-04-15T08:45:00.001-07:00</published><updated>2009-04-15T09:06:35.553-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="n-trust"/><category scheme="http://www.blogger.com/atom/ns#" term="pension tax relief"/><category scheme="http://www.blogger.com/atom/ns#" term="personal pensions"/><category scheme="http://www.blogger.com/atom/ns#" term="retirement planning"/><category scheme="http://www.blogger.com/atom/ns#" term="stakeholder pensions"/><title type='text'>Is Higher Rate Tax Relief On Pensions Under Threat?</title><content type='html'>A number of commentators have suggested that The Chancellor will abolish higher rate tax relief on pension contribution in The Budget on 22nd April. <a href="http://www.ft.com/cms/s/2/818e25f0-25c5-11de-be57-00144feabdc0.html">Financial Times</a> <a href="http://uk.biz.yahoo.com/10042009/399/pension-tax-relief-warning.html">Yahoo Finance</a> These could just be 'buy now while stocks last' rumours but there may be some truth in them, given the financial pressure, which the government is under. If in doubt, it would make sense to bring forward contributions to prior to the Budget. It is unlikely that any changes will be retrospective but this can not be ruled out. If tax relief is removed, this should not be a reason to stop making savings for retirement. After all, at some stage, like it or not, employment and the earnings associated with it will cease. When that day comes, there needs to be a replacement source of income. This does not just need to be provided by way of a pension but as long as there is some tax relief on contributions they probably have the edge on other methods of saving. See my last blog for more information on this.</content><link rel="related" href="www.chriswickscfp.co.uk" title="Is Higher Rate Tax Relief On Pensions Under Threat?"/><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/6337440273141224546/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=6337440273141224546' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/6337440273141224546'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/6337440273141224546'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2009/04/is-higher-rate-tax-relief-on-pensions.html' title='Is Higher Rate Tax Relief On Pensions Under Threat?'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-802814710322093664</id><published>2009-04-05T11:37:00.000-07:00</published><updated>2009-04-05T11:39:12.345-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="pensions v isas"/><title type='text'>Are Pensions Not Fit for Purpose?</title><content type='html'>In <a href="http://www.citywire.co.uk/adviser/-/features/q-and-a-tax-and-pensions/content.aspx?ID=334718&amp;re=5128&amp;ea=205650&amp;ViewFull=True">this</a> Article published on Citywire Lucien Camp argues that pensions are not fit for purpose. He suggests that there is a birth date lottery, which affects the level of income, which you can expect when you retire. He implies that a tax free savings vehicle such as an Individual Savings Account (ISA) would be a more effective method of retirement saving. He also suggests that their annual contribution limits are more than enough to cater for most people’s funding needs. Let us examine whether either of these propositions is actually true. Before doing so, it is worthwhile comparing the two types of arrangement: Pension Contributions: Paid net of basic rate tax relief at source. Higher rate tax relief is also available. This means that basic rate taxpayers pay 80p for every £1 invested. Higher rate taxpayers only effectively pay 60p for every £1 invested. Respectively they have immediately made a 20% and 40% return on their contributions. ISA Contributions: No tax relief is granted. Contributions are paid out of income on which tax and National Insurance have already been paid. Pension Income: Taxable. Paid net of tax at your highest rate. ISA Income: Tax Free. Access to capital: Pensions – 25%; ISAs – 100% Which will provide the better retirement income? Let us consider, given the same cash outlay by a basic rate taxpayer, which of the two is likely to provide the greatest income on retirement at age 65. For this purpose, I have assumed that the full value of the pension or ISA fund would be used to provide an income. In both cases the fund has been assumed to grow at the same rate (a conservative 5% pa), since the same investment choices are available to each. Contributions of £7200 (in terms of the cash paid out by the pensioner) have been assumed to be made for 20 years. This means that the pension contributions will be increased by tax relief to £9,000 per annum. The ISA investments will be £7200 per annum, as they do not benefit from any tax relief. In the case of the pension fund, I have assumed that a level single life annuity payable for a minimum of 5 years (even if the pensioner dies) is purchased. For the ISA I have assumed that the fund would be run down over 25 years (i.e. until the pensioner is aged 90, by when most people have probably died). When the pensioner is aged 65, he/she will have a pension fund of £297,593 or an ISA fund of £238,074. This represents a difference in the accumulated fund of £59,518. The pension income would be £21,027 per annum gross, based on current rates. After tax, a basic rate taxpayer would receive £16,821 per annum. The ISA fund would provide a tax-free income of £16,087 per annum. The pension income would be guaranteed for the life of the pensioner, however long they live and would not be dependent on future investment returns. The ISA income would be dependent on both the future growth of fund and the life expectancy of the pensioner. If investment returns are less than I have assumed or, should the pensioner live more that 25 years after retirement, the ISA income may be reduced or stopped. In this example the pension income, which is payable for life would exceed the ISA income by over £700 per annum. If the pensioner were a higher rate taxpayer whilst they worked and a basic rate taxpayer in retirement, the difference would be £1847 in favour of the pension fund. This assumes that they make pension contributions, which ultimately net down to £7200 per annum. Note that non-taxpayers still benefit from basic rate tax relief at source on pension contributions although they may only pay £3600 per annum (equivalent to £2880). It is also possible to provide for a fully inflation proofed retirement income or draw an income from the pension fund (i.e. similar to that assumed for the ISA) instead of buying an annuity. The conclusion as to which can provide the best level of retirement income, all other things being equal is that a pension fund is likely to beat an ISA in most scenarios. This is without taking into account the fact the pension funds sit outside your estate for inheritance tax purposes and are not accessible to creditors, should you become bankrupt. Bear in mind, despite the adverse and ignorant press to which they have been subjected, that pensions are designed to provide a retirement income. Their tax breaks give them the edge over ISAs. This is not to say that ISAs are not useful. They are more suitable for medium to long-term savings, perhaps to meet a specific objective, such as education funding. In reality the perceived flexibility of full access to the capital is somewhat illusory because if fully encashed and spent early on in retirement, there will be nothing left to live off later on. Are ISA maximum contribution limits sufficient for most people’s needs? In order to examine this it is necessary to factor in the effects of inflation. If inflation of say 3% per year is deducted from the assumed investment return of 5% per annum, this gives a ‘real’ return of 2% in round terms. On retirement, the ISA would generate an income in today’s terms of £8478 per annum. The average wage in the UK to April 2008 equated to £24,908. This means that the prospective ISA income amounts to just over 35% of pre-retirement income. It also assumes that on the above level of earnings the pensioner was able to fund ISA contributions of £7200 per annum, equivalent to 28.91% of earnings. Assuming that the same person instead pays £7200 net into a pension fund, on retirement they could expect a real income of £9884 if they are a basic rate taxpayer whilst working and in retirement. If they were a higher rate taxpayer, obviously earning more than average earnings, their real income in retirement would be £13178 per annum. It is obviously somewhat improbable that a person on average earnings will be able to afford maximum annual ISA contributions. However, this illustration has shown that for a person on average earnings they are unlikely to provide a pension that is anywhere near previous earnings. Summary In both of the above examples (where the same investment return assumptions have been used for both pensions and ISAs), pension arrangements appeared to be the most effective method of retirement funding. On balance, if funding for retirement, a pension should be used. If funding for a medium to long term financial objective an ISA would probably be more suitable since all of the proceeds can be accessed.</content><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/802814710322093664/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=802814710322093664' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/802814710322093664'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/802814710322093664'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2009/04/are-pensions-not-fit-for-purpose.html' title='Are Pensions Not Fit for Purpose?'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-2483223558793692162</id><published>2008-10-18T09:25:00.000-07:00</published><updated>2008-10-18T09:26:50.691-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="early retirement"/><category scheme="http://www.blogger.com/atom/ns#" term="Retirement Options"/><category scheme="http://www.blogger.com/atom/ns#" term="tax free cash"/><title type='text'>Accessing cash in hard times</title><content type='html'><div align="justify"> Many commentators are predicting that we are about to enter into a recession, as a consequence of which unemployment is likely to rise. With the housing market still in decline and credit being in short supply alternative sources of funds need to be found. For the over 50’s there is a source of funds in the form of the tax free cash sum from accumulated pension funds. Most private pensions allow policyholders to draw a lump sum of up to 25% of the value of the fund. This can currently be taken from age 50 although from 5th April 2010 the minimum age will rise to 55. It is not always necessary to draw a pension at the time when the tax free cash lump sum is taken. Instead the remainder of the fund can be allowed to continue to be invested according to the level of risk that the policyholder wishes to take. If an income is required this can be taken from the fund subject an upper limit, which is reviewed every five years, or in the form of an annuity which can provide a guaranteed income for life. The income is normally paid net of UK tax although expats can arrange for it to be paid without deduction of UK taxes but subject to tax where they reside. If the policyholder is trying to maximise the amount of cash in the short term they could take their entire first year’s entitlement to income from the fund as a single payment at the beginning of the year. Potential funds from which benefits may be taken early include personal pensions, stakeholder pensions, retirement annuities, final salary (defined benefit) schemes and additional voluntary contributions (AVCs and FSAVs). In the case of final salary schemes and AVCs the policyholder needs to have left the service of the employer with which they built up the benefits. The proceeds from several different pensions of all varieties can be brought together in a single arrangement in order to allow the withdrawal of tax free cash. Take a case where funds of say £80,000 have been accumulated in a variety of plans. Once they have been transferred, £20,000 can be paid out as a tax free lump sum. In addition a further £3880 gross (£3104 net of basic rate tax) could be paid as an upfront income payment from the fund. This facility is not just useful to help clear debts. The capital released in this way can be used towards new business ventures or even as a deposit for people wanting to take advantage of the drop in house prices by investing in properties which they will rent out. This article, of necessity, has been abbreviated in order to keep things simple. One should not forget that the primary purpose of pension funds is to provide an income when the policyholder or member no longer works. If benefits are taken early this will be at the expense of later income in retirement. Some private pensions provide guaranteed annuities, which can be forfeited if the policy is transferred elsewhere. Where benefits are transferred from a final salary pension scheme this could result in a smaller longer term retirement income and guarantees could be lost. These are just some of the issues that may need to be considered. Due to the complexities involved it is most important that advice is sought from a properly qualified pensions specialist before entering into any transactions.</div></content><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/2483223558793692162/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=2483223558793692162' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/2483223558793692162'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/2483223558793692162'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2008/10/accessing-cash-in-hard-times.html' title='Accessing cash in hard times'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-4270991129341883089</id><published>2008-09-16T03:21:00.000-07:00</published><updated>2008-09-16T03:22:10.372-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="UK investor compensation"/><title type='text'>In these times of financial stress, how well protected are your investments?</title><content type='html'>Given the current turmoil in the world markets with banks going bust and insurance companies needing emergency loans to keep afloat you could be forgiven for worrying about the security of your money. However, all is not lost. In the UK when an insurance company, bank or broker goes bust there is an organisation called the Financial Services Compensation Scheme (FSCS) which provides compensation to investors and policyholders who have lost out. The FSCS is funded by levies on the companies authorised to trade in the market place. The levels of compensation that it can pay depend on the type of arrangement that you hold and have been set out below: Deposits: £35,000 per person (for claims against firms declared in default from 1 October 2007). 100% of the first £35,000.* Investments: £48,000 per person. 100% of the first £30,000 and 90% of the next £20,000. Mortgage advice and arranging: £48,000 per person (for business conducted on or after 31 October 2004). 100% of the first £30,000 and 90% of the next £20,000. Long-term insurance (e.g. pensions and life assurance): unlimited. 100% of the first £2,000 plus 90% of the remainder of the claim. General insurance: unlimited. Compulsory insurance (e.g. third party motor): 100% of the claim. Non-compulsory insurance (e.g. home and general): 100% of the first £2,000 plus 90% of the remainder of the claim. General insurance advice and arranging: unlimited (for business conducted on or after 14 January 2005). 100% of the first £2,000 plus 90% of the remainder of the claim. Compulsory insurance is protected in full. Summary In summary, if hold cash with a bank or building society the maximum compensation amount is now £35,000 per customer at each bank. The maximum compensation for insurance policies is effectively 90% of the value of the claim (100% of the first £2000). Whilst insurance companies provide a greater degree of investor protection this relates to the surrender or claim value NOT what you paid for it. If your policy is invested in the markets it will certainky have reduced in value. If it is held in back deposits and the underlying banks go bust - you loose your money. The above levels of compensation relate to individual investors and policyholders - not institutions. Whether you are worried about the solvency of the insitutions with which you hold money or about the effect of the markets on your investments you should not act in haste as this could trigger penalties or merely crytalise investment losses. Seek professional advice from an independent financial adviser who can provide you with impartial professional advice. If you would like further information on the FSCS click <a href="http://www.fscs.org.uk/consumer/About_us/">here</a></content><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/4270991129341883089/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=4270991129341883089' title='1 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/4270991129341883089'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/4270991129341883089'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2008/09/in-these-times-of-financial-stress-how.html' title='In these times of financial stress, how well protected are your investments?'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>1</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-3556777133906908202</id><published>2008-06-30T14:46:00.000-07:00</published><updated>2008-06-30T14:57:28.180-07:00</updated><title type='text'>Useful Changes to Contracting Out Rules</title><content type='html'><div align="justify"> </div><div align="justify"> </div><div align="justify">The government has just introduced new rules which will improve the choices available to millions of pension policy owners. The rule changes, which will come into effect on 1st October 2008, affect those with Protected Rights Benefits. These are acquired when an employee person opts out (known as Contracting Out) of the State Second Pension S2P (previously known as the State Earnings Related Pension Scheme- SERPS). Protected Rights can be acquired in a number ways: 1. Via a Personal Pension or a Stakeholder pension. Employees pay the full rate of National Insurance Contributions. After the end of each tax year the Revenue work out how much has been paid and rebate a part of this into the employee’s plan (something I am frequently asked about and the subject of a later blog). 2. Via Contracted Out Money Purchase Schemes (known as COMPs). These are employer sponsored pension schemes. The employees pay reduced National Insurance Contributions and the employer makes minimum contributions to the scheme. 3. Via Final Salary Pension Schemes (also known as Defined Benefit Schemes). These are schemes that provide a promised level of benefits to members when they retire, typically based on their final earnings and years of service. Where the scheme has opted out of S2P, these are expressed in the form of a pension but they can be expressed as Protected Rights or converted especially if the benefits have been transferred. 4. On divorce or termination of a Civil Partnership where a Pension Sharing Order is made. In such circumstances the pension benefits of one of the spouses/civil partners is allocated under a Court Order to the other. The benefits can be provided within the same scheme but more typically the scheme will require that they be transferred out. Successive governments have imposed restrictions on the way in which Protected Rights may be paid out. Quite a few rules have been removed in the last few years and the remainder should disappear all together from 2012. However, for now, benefits must be taken from age 50 (55 after 5th April 2010) and these must include a spouses/dependents benefit. It is also currently a requirement that they only be invested in insured pension arrangements. On 1st October 2008 the new rules will allow Protected Rights Benefits to be transferred into a Self Invested Personal Pension (SIPP). Until recently these types of schemes were not regulated and as a consequence transfers of Protected Rights into them were prohibited. SIPPs allow investment in a wide range of assets including stocks and shares, investment funds and commercial property. It is also possible to borrow 50% of the value of the assets in the fund to assist with the purchase of new investments, such as buildings. The ability to invest in commercial buildings is particularly useful to business owners wanting to invest in new premises. SIPPS can even be used to buy the premises already owned by the business, thereby releasing the capital locked up in the building. The proceeds received by the business can be used to help finance expansion, or even to simply pay off accumulated debts. If the SIPP buys trading premises for the business, the business is required to pay a market rent which is fully relievable against its taxable profits but received tax free by the scheme. As the scheme does not have to pay tax on its rental income all of it can be used to reduce its borrowings. This results in the earlier repayment of the borrowing which means less interest will be paid. A group of SIPPS owned by different individuals can collectively purchase premises. This is a method used by quite a few professional firms such as lawyers and accountants as well as doctors and dentists. This is not just an opportunity for new investments but also for top-ups to existing schemes. These can be used to make additional investments. Alternatively the additional funds can be used to reduce scheme borrowings. As with any transfer of benefits it is important that professional advice is taken from an appropriately qualified independent financial adviser. They will be able to review all of your options for you as well as make sure that you are fully aware of any adverse consequences of transferring your benefits. </div></content><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/3556777133906908202/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=3556777133906908202' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/3556777133906908202'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/3556777133906908202'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2008/06/useful-changes-to-contracting-out-rules.html' title='Useful Changes to Contracting Out Rules'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-3332693682829364904</id><published>2008-06-26T10:37:00.000-07:00</published><updated>2008-06-26T10:41:20.981-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="Annuities"/><category scheme="http://www.blogger.com/atom/ns#" term="Open Market Option"/><category scheme="http://www.blogger.com/atom/ns#" term="Retirement Options"/><title type='text'>Shop Around when you retire</title><content type='html'>BBC Breakfast on Saturday 21st June featured a piece on the importance of shopping around to ensure that you get the highest possible income when you retire. This applies to those of you with private investment linked pensions. These operate on the basis that you make contributions during your working life to create a pot which you use to support yourself in retirement. At that point, you can typically take 25% as a tax free cash sum and the rest must be used to provide an income in one of a variety of ways. For most people of relatively modest means the most appropriate option is likely to be an annuity. Annuities come in all sorts of shapes and sizes. They can be paid monthly, quarterly, half yearly and yearly, in advance or arrears. Payments in arrears tend to be greater than in advance. For example a pension yearly in arrears will be better than a pension monthly in advance. They can be level or escalating and can include various levels of provision for spouses and dependents. They can also include a degree of capital protection so that the fund is not all lost should you die shortly after retiring. Enhanced annuity rates are available to smokers as well as to people in poor health. A key aspect of annuities is that once you have made your choice and the annuity has been put into force, you cannot change your mind. It is therefore critically important that you carefully consider your requirements – and those of your dependents- before you commit yourself. If you suspect that your health may qualify you for a better rate check out enhanced rates. The Financial Services Authority, the body which regulates the financial services industry, has produced a useful booklet which summarises your choices on retirement. You can access it <a href="http://www.moneymadeclear.fsa.gov.uk/pdfs/pensions_choose.pdf">here</a> The thrust of the BBC piece was that a large number of people do not appreciate that when they retire they do not need to buy an annuity from the company with which they built up the pension fund. All pension providers are required to offer what is known as the ‘Open Market Option’, which is the facility to take the fund to another company where an improved annuity can be provided. As a consequence they are losing a substantial amount of money. The importance of checking out the Open Market Option cannot be overstated. Most pension companies do not offer good annuity rates. Prior to retirement they issue a pack of information containing a range of options and this will mention the open market option. However too many people ignore this to their cost. So how do you find out more about the Open Market Option? See an independent financial adviser. They will not only be able to shop around for you but they will also be able to advise you on which on the other benefits you should include such as a spouses/dependents pension, escalation etc. They will also be able to liaise with the various companies involved to ensure that your pension comes into payment with a minimum of delay. As a practitioner I can assure you that this is not merely a theoretical exercise. Barely a month goes by when I don’t help someone shop around for the best rates. Most recently this has resulted in a pensioner increasing their income by some £3000 per year. Chris Wicks CFP I help you achieve your lifetime goals for reasons that are important to you</content><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/3332693682829364904/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=3332693682829364904' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/3332693682829364904'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/3332693682829364904'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2008/06/shop-around-when-you-retire.html' title='Shop Around when you retire'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>0</thr:total></entry><entry><id>tag:blogger.com,1999:blog-2786900589273621430.post-5061120328207080730</id><published>2008-06-26T10:34:00.000-07:00</published><updated>2008-06-26T10:36:14.888-07:00</updated><category scheme="http://www.blogger.com/atom/ns#" term="cash flow based modelling"/><category scheme="http://www.blogger.com/atom/ns#" term="financial planning"/><category scheme="http://www.blogger.com/atom/ns#" term="retirement planning"/><category scheme="http://www.blogger.com/atom/ns#" term="state pension"/><title type='text'>Waiting Longer for the State Pension</title><content type='html'>A little known fact is that the government have fairly quietly increased state pension ages for men and women so that for all people retiring after 2024 will increase from age 65 to age 68. What does this mean to you? Well, if you were able to retire now you would receive £90.70 per week plus any increases due to the State Second Pension (previously known as SERPS)This equates to £4716 per year. Therefore if you are one of the unlucky ones you could be loosing out on £14,149 over the three years. The Pensions Service have put together a useful little calculator on their website so that you can find out how much extra you will have to wait for your state pension. If you would like to find out, click <a href="http://www.thepensionservice.gov.uk/resourcecentre/statepensioncalc.asp">here </a> What can you do about it? Well… the starting point is to have a plan. Of course, the state pension should only be a part of your income when you retire. You need to assess what you require to maintain a comfortable standard of living and then compare this with the level of income which you think you will get. If there is a shortfall, something needs to be done. Alternatively you could consider making use of a financial planner who can prepare a cash flow based model for you which will show you where you stand and help you to create a plan to make sure that you don't descend into penury when you retire.</content><link rel='replies' type='application/atom+xml' href='http://chriswickscfpretirementspecialist.blogspot.com/feeds/5061120328207080730/comments/default' title='Post Comments'/><link rel='replies' type='text/html' href='http://www.blogger.com/comment.g?blogID=2786900589273621430&postID=5061120328207080730' title='0 Comments'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/5061120328207080730'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/2786900589273621430/posts/default/5061120328207080730'/><link rel='alternate' type='text/html' href='http://chriswickscfpretirementspecialist.blogspot.com/2008/06/waiting-longer-for-state-pension.html' title='Waiting Longer for the State Pension'/><author><name>Chris Wicks CFP</name><uri>http://www.blogger.com/profile/02153400297772485225</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='30' height='32' src='//blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioH2ZrXVX9NLQKjWJF6MPg9sZ7U0Cq_hI2DjnpeIq7ruQ7nIGIqY33FjfrqEpa0Xaxdz_NIe029vaGgkOu9-PmY65MMqhGUwT4XUdBk3RFtKBE_vPXiiPb5BG8Za152w/s220/Chris+Ecad+Pic.jpg'/></author><thr:total>0</thr:total></entry></feed>

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