New Year is the perfect time to review your financial health as well as your personal health
The new year is the perfect time to spring clean your finances, says David Haughton of Lovewell Blake Financial Planning.
Did you know: that as a result of long-term illness or injury, statistics show that 59% of people would last less than 12 months without their income, and 43% would struggle within 6 months?
Statutory Sick Pay is currently £116.75 per week. That is less than a third of the weekly take-home pay of someone on the adult minimum wage. SSP is only paid for the first 28 weeks of sickness, and is only payable from the fourth day of illness.
Did you know: that you can nominate beneficiaries for your pension? This ensures that, when you die, any unused pension pot isn’t lost and can pass on according to your wishes.
The recent Budget has focussed attention on what happens to a pension when the pension holder dies.
Did you know: that since 2015, ‘pensions freedoms’ allow you to access your pension pot from age 55? You can take it as a lump sum, drawdown regular amounts or buy a fixed income with an annuity.
The rules on how you can withdraw money from your pension pot became a great deal more flexible in 2015, allowing you to access your pension from the age of 55, rising to 57 in 2028 (those suffering significant ill health may be able to access their fund even earlier than that).
Did you know: that life expectancy is increasing, which means you might need a larger pension pot to maintain your ideal lifestyle in retirement?
Advances in medical science, coupled with healthier lifestyles, means that average life expectancy continues to rise. In the ten years from 2011 to 2021, average life expectancy grew from 80 to 81½.
Did you know: that Income Protection Insurance can replace up to 70% of your income due to illness or injury?
Statutory Sick Pay is currently £116.75 per week. That is less than a third of the weekly take-home pay of someone on the adult minimum wage.
Did you know: that only about 35% of UK adults have life insurance, despite its importance in providing for their families?
There are two main reasons that people take out life insurance cover – but many should be considering it for other purposes.
More investors looking at benefits of EIS and VCT investing
A growing number of investors are seeking ways to invest tax-efficiently in places other than their pensions and ISAs, usually because they have already fully used their ISA allowances, and significant pension contributions have compounded over the years.