News and blog

Is your Deposit Money Protected if a Bank Fails?

Most people are aware that the protection on deposit monies has been increased to £85,000, but there is still a lot of confusion as to how the Financial Services Compensation Scheme works.

The protection is capped at £85,000 per person per Institution and it is this “per institution” restriction which causes the most confusion.

Brands with very different images may be linked under a single authorisation. For example, Lloyds Bank’s authorisation covers AA Savings, Bank of Scotland, Birmingham Midshires, Capital Bank, Halifax, Intelligent Finance, Saga, Cheltenham & Gloucester Savings, Scottish Widows as well as Lloyds TSB.

Therefore, if you have more than one of these accounts the maximum protection is £85,000 per person.  If you have joint accounts the cover is £170,000.

To get a full list of which brands are covered by which Institution click on the link below which will take you to the FSA’s list of “Linked deposits for the purposes of the Financial Services Compensation Scheme (FSCS)”.

http://www.fsa.gov.uk/consumerinformation/uk_groups

If your bank or building society is not on the list and you would like information about how it is authorised, you will need to speak to your bank which should be able to advise you.

And Finally...

I hoped to run this story last year but space in the Newsletter was a little tight in the run up to Christmas. With this in mind apologies for this slightly late news item.

Slightly belated congratulations go to Syd Prior who has retired from B&Q just days before his 97th birthday. Mr Prior had worked for B&Q for more than 20 years after starting work with them aged 76! He plans to enjoy spending time with friends and visiting the theatre more regularly. 

Mr Prior had not been unemployed since the age of 14 and has cited hard work as the key to long life and happiness. He is an inspiration to us all and we would like to wish Mr Prior a happy and healthy retirement.     

 

 

RIS Chosen Charities

We would like to thank you all for your comments regarding our charitable donation programme for 2012 and for your excellent suggestions.

After some deliberation we have decided that our two chosen charities for this year will be the Wickham First Responders and the Hampshire and Isle of Wight Air Ambulance. We feel that these are two very worthwhile causes and whilst modest we hope that our contributions will assist with their work over the coming year.     

Retirement Options Seminar

For those that read the local publications that appear periodically you may start to see adverts for our forthcoming seminar.

Following on from our extremely successful 7 Essential Steps for Everyone Facing Retirement seminar  the message from this seminar is "Don’t go into retirement ill prepared".

We want to help you to take the worry and guesswork out of planning for retirement by attending our free seminar about your options at retirement. At the seminar you will learn:

• What options are available to you at retirement

• How to cut through the pension jargon

• See if you could boost your retirement income at no extra cost

• The importance of keeping your options open throughout your retirement to handle any unforeseen expenses that may occur

• How to find out what the State will pay you and when

• The value of independent advice at this crucial time

If you are thinking about retirement, we would be delighted if you could join us at the Solent Hotel & Spa, Whiteley on Thursday 29th March 2012 at 6.30pm. To claim your free place, please contact us on 01489 878300 and speak to one of our friendly team or register on our website. Places are limited so book early to avoid disappointment.

Market Commentary Seminar with Brooks MacDonald

This is a reminder that our Market Commentary Seminar is being held on  Monday 13th February at the Solent Hotel and Spa in Whiteley. We are holding two separate sessions, one at 3pm and one at 7pm. Refreshments will be available at registration from 2.45pm or 6.45pm.

The guest speakers will be the fund managers John Wallace and James Grayson from Brooks MacDonald. Whilst they will be representing Brooks MacDonald they will be talking about their thoughts regarding the markets and general economy as well. Although the initial invitees were our client base we feel that this information would be useful to a wider audience. If you think that you might like to attend this event please contact us on 01489 878300 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. for details of availability and to reserve a place. Places are limited. 

As you will know we are always keen to share this type of knowledge and if you have any friends, relatives or colleagues who you feel might benefit from this free, no obligation seminar, then please ask them to contact us on the numbers above to reserve a place. We will put the name of all existing clients who bring a guest into a draw to win vouchers of their choice to the value of £100.

“Over 50’s must receive face-to-face auto enrolment advice”

 If you are aged between 22 and state pension age and earning above the income tax personal allowance (£7,475 in 2011/12) you will be automatically enrolled into a new workplace pension scheme at sometime in the next 4 years, unless you are already in a pension at work.

This could have a significant impact for everybody, but particularly for anyone over the age of 50. If you are over 50, you may think that the introduction of the new workplace pension scheme into which employees and employers are going to have to contribute is not really going to impact too much on your retirement plans.

However, we agree with Lord Oakeshott, the LibDem Peer, who has publically stated that People over 50 being auto-enrolled into a pension should be given one hour of face-to-face advice due to the increased risk of misselling.

Lord Oakeshott is more concerned about the interaction with state benefits, debt and scheme charges, but it goes much further than this.....

The automatic enrolment, which will happen every 3 years if you opt out, can cause major financial implications if

  •  Your pension pot is likely to exceed 1,500,000
  •  You have applied for Enhanced or Primary Protection in the past
  •  If you are considering Fixed Protection because of the imminent reduction in the Lifetime Allowance from £1,800,000 to £1,500,000
  •  If you take advantage of the new Flexible Drawdown pensions

Without proper advice you could end up in the situation of breaching HMRC rules and be liable to large penalties or reductions in benefits. Depending on the size of the employer this automatic enrolment could start as early as October 2012 which means that you should contact us as soon as possible to take advantage of our free one hour consultation and make sure that you are not unknowingly breaching HMRC rules.

“Over 50’s must receive face-to-face auto enrolment advice"

If you are over 50, you may think that the introduction of the new workplace pension scheme into which employers are obliged to automatically enrol some or all of their workers into a pension scheme is not really going to impact too much on your retirement plans.

However, we agree with Lord Oakeshott, the LibDem Peer, who has publically stated that People over 50 being auto-enrolled into a pension should be given one hour of face-to-face advice due to the increased risk of misselling.

Lord Oakeshott is more concerned about the interaction with state benefits, debt and scheme charges, but it goes much further than this.....

The automatic enrolment, which will happen every 3 years if you opt out, can cause major financial implications if

  •  Your pension pot is likely to exceed £1,500,000
  • You have applied for Enhanced or Primary Protection in the past
  • If you are considering Fixed Protection because of the imminent reduction in the Lifetime Allowance from £1,800,000 to £1,500,000
  • If you take advantage of the new Flexible Drawdown pensions

 Without proper advice you could end up in the situation of breaching HMRC rules and be liable to large penalties or reductions in benefits.

 Depending on the size of the employer this automatic enrolment could start as early as October 2012 which means that you should contact an Independent Financial Adviser as soon as possible to make sure that you are not unknowingly breaching HMRC rules.

Equity Release – New Money Advice Service Guide

If you are wondering whether you should release money from your Home, you will find the updated free guide from the Financial Service Authority’s Money Advice website really useful.

https://www.moneyadviceservice.org.uk/en/categories/managing-your-money

If you click on the above link and select “Free Printed Guides” at the top of the page and then the “pensions and retirement options tab”, you will find the guide which was updated in November 2011.

The income you deserve

The advance of the baby boomer generation is leading to a massive increase in the number of people approaching retirement.

As far as I am concerned our main task is to make sure that our clients who are facing retirement get the maximum income possible.   In many cases, this can be as simple as making sure they use their Open Market Option. However, when you take into consideration that many people are affected by lifestyle issues or health conditions the advantages of shopping around become even more compelling. Typically, an enhanced annuity could increase our client’s income by a further 20%, perhaps much more

One in every two

Research from the Association of British Insurers suggests that nearly half of all retirees could improve their income with an enhanced annuity, yet only one in ten actually buy one.

However, with an uplift of perhaps £20 in every £100 offered by a standard life annuity, this has to be a concern. If you smoke or have ever stayed in a hospital or are taking prescribed medication you could qualify.

 A range of lifestyle conditions

From simple lifestyle issues such as smoking, alcohol and high blood pressure through to more serious illnesses such as heart disease, cancer and stroke, every piece of information matters. Together, they can make the difference between just getting an income - and getting the significantly uplifted income that these condition mean you deserve.

So the moral of this story is “don’t just take the pension offered by your existing company;  take advice and shop around before it is too late”

Christmas number one!?!?!

One of Pat's relatives is having a stab at pop superstardom with this festive offering!

Click here:

A possible Christmas number one? I don't think the military wives are worried just yet... Enjoy! 

We would like to wish all of our clients and associates a very Merry Christmas and a happy and prosperous New Year!      

 

 

  

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Contact us

Retirement and Investment Solutions
5 Lancer House, Hussar Court
Waterlooville
Hampshire, PO7 7SE

T: 01489 878300
F: 0870 0104883
E: advice@retirementis.co.uk