Back to the old pension world.

So there you go additional rate for tax relief on pensions for a higher rate payer (50%). Yes great if your a higher rate tax payer you can add £16,000 to your pension, the taxman automatically adds £4,000 and you claim an additional £6,000 via your tax return. At this point I have to stop typing due to fear of being sued for copyright.  I could also go on to write that if your income has reached £130,000 since April 2008 you need advice.

Lets think about interest rates for a minute.

One recent bit of news in the UKis the increasing cost of inflation, the implications of this could be serious if the rate of inflation increases too much. Will this happen? If it does interest rates will increase and a fixed rate mortgage for those who are borrowing will be a top priority. However there still seems to be a lack of decent fixed rates available to borrowers.

Lets face it all the lenders offer fixed rates in excess of 4% and longer term ones at 5%, I don’t know may be it is time to fix, If I could I think I would. But this is the man who famously fixed his mortgage at 8% only to see the rates drop and drop, and I even paid an arrangement fee for the privilege.

Check our website out www.Portsmouthpensions.com

What happens after you’ve tried thinking…

Okay so you have looked at your options, and there are many ways of raising more money if you need to when you have reached retirement. Trade down to a smaller property very simple way of releasing cash but can take time depending on the housing market, may be though it’s not an option.  What else is there? Equity release or lifetime mortgage, can be great in that you secure a loan against your property but you don’t actually have to make repayments, you are however charged interest which is rolled up into the loan, or you agree to selling a percentage of your house when it is sold. A lifetime mortgage you release money and pay the interest as you would on a normal loan, the only problem being there are not that many lenders that like lending past 75 for example. I dislike the fact that people are treated differently just because they are over 75, may be that is part of getting older I am not there yet so how can I comment.

How to get the most from your pension?

 Today I am writing this on the first day of the new year this is a day for setting goals or making plans for  the year ahead. So what could you do to make your future a more comfortable, safe, manageable future. Could you have your funds in a growth fund do you consider the whole of the market as being high. Firstly you need to consider how your funds are invested, then you need to consider how to get the best from the money you have.

Is this the year your going to start drawing your pension, or is this the year that you have put of and  actually start paying in. Have your circumstances changed do you have a sum of money that you want to invest?