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Wealth News Letter – Autumn 2018

Posted on 02 October, 2018

HAVE YOU EVER COMMITTED TO FINANCIAL AGREEMENTS YOU DON’T UNDERSTAND?

At some point, we’ve all been confronted with complicated documents we’re expected to sign. And if we’re honest with ourselves, we probably didn’t completely understand all the small print. Recent research shows that this is a widespread problem that affects one in four of us. More than half the adults questioned for the survey believed they had overpaid for something because the contract was overly complicated. The research from the University of Nottingham showed that some insurance contracts require PhD-level education to fully understand them………

 

SAVING FOR A COMFORTABLE RETIREMENT

The earlier you start saving for retirement the better, due in part to the powerful effects of compound interest (earning interest on interest) and reinvested share dividends – both playing a part in investment growth. If you leave pension planning to your later years, your money won’t have as long to grow. To encourage everyone to save for their retirement, the government gives tax relief on pension contributions. So, if you pay into a pension, or if your employer deducts your payments from your salary, you automatically get 20% tax relief as an additional deposit into your pension pot. If you are a higher-rate taxpayer you can claim an extra 20%, while those paying additional-rate tax can claim back an extra 25%. When you retire, you can take 25% of your savings as a tax-free lump sum, though not necessarily all in one go……..

 

TIME TO PLAN

You need to take a realistic approach. Think about when you want to retire, and whether you want to adopt a more flexible approach, perhaps working part-time for a few years. Getting a state pension forecast will also show you how much you can expect to receive, so you can then work out how much money on top of that you’ll need to fund the type of retirement you’re looking for……..

 

For the full FREE article download here: Wealth Newsletter – Autumn 2018

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