Politicians of all persuasions clearly believe that saving for our old age is a good idea and are particularly keen on encouraging us to save via pensions.  While the cynical might suggest that the main reason politicians are so keen on saving for retirement via a pension is because pension funds are locked away until retirement, the fact is that the government does offer incentives to save through a pension and so it is worth at least looking at what is available before you take a decision on what is right for you. The state pension While it may seem odd to start with the state pension, the fact remains that it is a pension scheme into which everyone is, effectively, automatically enrolled assuming that they meet the qualifying criterion (i.e. they pay national insurance contributions) and it can be an extra source of funds in retirement.  If you are working and earning over a certain level of income, then you will have to pay national insurance whether you like it or not and therefore will automatically build up entitlement to a state pension.  If, however, you are not working, you may still be able to build up entitlement to a state pension if you are in receipt of certain benefits.  Therefore, it may be worth your while to claim these benefits even if you do not need the money or even if you do not get any money in your hand at this time.  Similarly, it may be worth your while to fill in gaps in your national insurance history in order to ensure that you have the necessary level of payments to qualify for a state pension.  There is, however, a caveat to this, which is that governments can change the rules on state pensions any time they like, for example, they can increase the age at which you receive one, hence if you do make extra payments towards your state pension, you may wind up receiving less benefit than you thought. Workplace pensions Under the government’s auto enrolment scheme, all employees who meet the qualifying criteria must be automatically enrolled into a workplace pension unless they specifically opt out of enrolment.  The employee is obliged to make (at least) a minimum level of contribution to which the employer adds (at least) a minimum level of contribution on top.  These employer contributions are the main advantage of saving for a pension via a workplace pension scheme versus a private pension, to which an employer is not obliged to contribute (although they may agree to do so voluntarily).  At the same time, however, it has to be noted that the workplace pension scheme (as it currently stands) has a conspicuous lack of flexibility.  Once you are enrolled in the scheme you must contribute at least the minimum amount for as long as you remain a member of it.  With private pension schemes, you are in control of the amount that you pay. Private pensions While the self employed, obviously, will not receive employer contributions towards their pension, they can still benefit from tax relief on contributions.  Similarly, home makers can benefit from their spouse’s tax contributions.  Under current rules, the earner can pay up to £2880 into their spouse’s pension and the spouse will receive the benefit of tax relief to a maximum of £720 meaning that the total contribution will be £3,600.  It is important to note, here, that although this is the maximum extent of the tax relief, this level of contributions may not be sufficient to provide the level of income you wish to generate for your retirement.  Therefore, it may be best to increase the level of contributions even if they do not attract tax relief. For pension advice we act as introducers only.

When it comes to getting a loan of any description, the key to success is to convince the lender that the risk of lending you their cash is justified by the reward they can reasonably expect to receive in the form of interest payments.  Although mortgages are secured loans, meaning that they are backed by an asset, the fact still remains that the price of an asset can go down as well as up, even if it’s only on a temporary basis, which means that lenders have to feel confident that borrowers can continue to make payments over the longer term, regardless of changes to their personal circumstances or the broader economic situation.  Here are four tips to help you make that happen. Start building up your credit record as soon as you can As the old saying goes, you need to learn to walk before you can start to run.  In other words, you it’s generally best to start small and work your way up to greater challenges and more responsibility.  In financial terms, that means that you want to start establishing your credit record as soon as you can so that by the time you are ready to apply for a substantial level of credit, such as a mortgage, you have a long-term track record of using credit responsibly and paying it back in full and on time. Build up as big a deposit as you possibly can There are two advantages to being to put down a substantial deposit.  The first is that it demonstrates to a lender that you can manage your money well enough to have meaningful savings (or that you have family who can support you).  The second is that it reduces the lender’s risk.  In simple terms, the greater the amount you can put down as a deposit, the more value a home can lose before a lender’s capital is at risk. Be careful what shows on your bank statements These days (post the mortgage market review) banks no longer want just proof of income, they want to see evidence that you can manage your money and while some people may think this is intrusive, it’s a fact of life and if you want a mortgage you will just have to deal with it.  In practical terms this means that you will be expected to turn over your bank statements for scrutiny and you may therefore want to think a little about how a third-party might perceive them or, to look at the situation from another perspective, just how much of your lifestyle information you’re willing to share with a stranger.  If you conclude that you make purchases you don’t necessarily want to have scrutinised for reasons of privacy, then you may want to think about making them in cash. Check your personal records are full and accurate The most obvious record to check is your credit record, even if you have checked it before.  Mistakes can happen at any time and if they do you want to get them rectified before you apply for a mortgage.  Similarly, you want to make sure that you are on the electoral role at your actual, fixed address, rather than at a hall of residence, your parents’ address (unless you do really live there) or an old address (even if it’s in the same constituency).  This not only helps to confirm that you are who you say you are (an important consideration these days) but also that you are organised enough to keep your personal records up to date, which is (another) indicator that you are a responsible individual. Your property may be repossessed if you do not keep up repayments on your mortgage.

Illness can strike anyone at any time and, depending on how you earn your living and what kind of lifestyle you lead, it doesn’t even have to be particularly serious to be a drag on your finances.  As always, being prepared can help to cushion the impact. Short illnesses (e.g. colds) Colds and mild bugs are a fact of life, as are seasonal ailments like some allergies (e.g. hayfever).  If you’re self employed being laid low for even a day or two can be a problem, (especially if it occurs at a time when you’re chasing a deadline).  For those in paid employment, loss of income may be less of a concern (although there are exceptions such as employees who derive significant income from commission or who may miss out on the chance of overtime), but it may still impact you in other ways.  For example, if you have essential tasks to do, which cannot wait (e.g. taking children to and from school) and you cannot do them yourself, then you will have to arrange for someone else to do them and this may involve payment.  Because of this, regardless of whether you are self-employed or employed, it can be very beneficial to have an emergency fund you can reach into when the unexpected happens. More serious illnesses Similar comments apply to more serious illness although, of course, to a greater degree given that a more serious illness will, presumably, have a more significant impact on a person’s ability to work.  While those in employment may have access to in-work benefits as well as state benefits, it is highly recommended to check what this would actually mean in practice and how well the income you could expect to receive in certain situations would stack up against your expectations of what you would need to maintain your current lifestyle and to factor in the possibility that being struck by a serious illness could actually increase your expenses, for example, through the need to pay for transport to get to and from hospital. The self-employed, by definition, will not be eligible for in-work benefits and therefore will need to make their own provisions.  There are various forms of insurance cover which might apply to those looking to protect themselves against the possibility of being forced to deal with a serious illness of which the two which stand out are income protection insurance and critical illness insurance.  You might also want to consider pet insurance, to avoid having to make difficult and painful decisions when both your health and your finances are suffering.  Last but by no means least, in a worst-case scenario, having appropriate life insurance in place can make life easier for anyone you leave behind. The economically inactive So far, this article has focused on income-earners, be the employed or self-employed, however even those who are classed as “economically inactive”, such as home-makers can play an important role in ensuring the health of the family finances.  For example, in a family with children, the presence of a healthy home maker can remove (or at least reduce) the need to pay for child care.  Because of this, it can make sense to arrange relevant insurance cover for non-income earners, such as critical illness insurance and life insurance.  It may even be worth extending critical illness cover to children since it could provide you with extra money to help with any expenses caused by the child’s illness, for example adapting a home to their needs as they convalesce, or paying for other people to look after siblings while the home maker nurses the sick child (or vice versa).

At time of writing, the U.S. federal government was still locked in the longest (partial) shutdown in the country’s history, and most federal employees would not get paid until it is resolved (members of the House of Congress are an exception), nor are they necessarily guaranteed backpay for the time during which they are furloughed. A lesson from the U.S.? The ramifications of the government shutdown can extend beyond people directly employed by the federal government (and contractors) because employees who are furloughed, by definition, are not at work performing the service for which they were hired.  This means, for example, that certain benefits programmes may not be administered, thus impacting the people who rely on them.  Now while government shutdowns of that nature have never happened in the U.K., people should still be very aware that, regardless of their profession, there is no 100% guarantee that they will be paid from one month to the next let alone paid on time.  This may sound cynical but if a company goes bankrupt, then it may not have enough money to pay its employees let alone its contractors.  The former may be able to claim back pay and/or statutory redundancy from national insurance, but only if they were actually eligible for redundancy in the first place.  Even if a company is solvent, circumstances beyond its control may stop workers from being paid, such as the infamous RBSG IT meltdown of 2012.  Like the U.S. government shutdown, this also had a “butterfly effect” in that people who had not been paid themselves, could not pay their bills. So what would happen to you if you lost your income? The answer to that question probably depends on what, exactly, you mean by lost. Income lost to IT glitches If your loss of income is due to an IT glitch or other similar factor, then you may find life a whole lot more comfortable if you have access to funds held outside of your main current account (and ideally with a completely separate financial institution), which you can use until the issue is resolved. Income lost to other short-term temporary factors On a similar note, having a “cash cushion” of emergency savings can be very helpful when dealing with short-term loss of income due to temporary factors.  For example, if you are self-employed or work on short-term contracts or even if you are, technically, fully employed but on a zero-hours contract, then you may well find yourself in a “between-jobs” scenario when you have a reasonable expectation of being able to earn an income again in a short space of time, but are not actually earning any money at that particular point in time.  It’s also worth noting that when you do start working again, you will be paid according to your employer’s schedule and hence will still have to keep yourself until your new pay date rolls around. Income lost to illness/accident/longer-term unemployment There are state benefits to assist those who are unemployed and looking for work as well as those who are unemployed because they are unable to work, however, you may find that these benefits are not sufficient for your needs and, even if they are, you may prefer to avoid having to deal with the job centre.  This is where insurance can prove invaluable.  Here are three forms of cover you may wish to consider: Payment Protection Insurance - This will ensure that the repayments for specific debts continue to be made even if you become unemployed or ill. Income protection insurance - This can replace your income if you become unable to work for various reasons. Critical illness cover - This can provide you with a lump sum if you are diagnosed with a qualifying illness. If you want to be the superhero of your family.. it really doesn't take much to take take care of them. Find out more my contacting us today

Interest rates can genuinely be very interesting and it can certainly pay to understand what they are and how they work.  With that in mind, here is a brief guide to what interest rates mean in practice. Interest rates are a tool to control inflation The Monetary Policy Committee of the Bank of England has been charged by the government to keep the rate of inflation at 2%.  If inflation looks to be rising above target, the Bank of England can raise interest rates to make it more attractive to save money instead of spending it (and more expensive to borrow it), whereas if inflation looks to be falling below target, the Bank of England can lower interest rates (or use quantitative easing) to make is less attractive to save money (and cheaper to borrow it).  As the Bank of England is a central bank, the rates it sets only apply directly to the banks with which it does business, but the interest rates set by the Bank of England will influence the interest rates set by its customer banks, which is why the rate set by the Bank of England is known as the base rate. From base rate to retail rate The base rate is, essentially, the benchmark rate, which retail banks can use as a guideline for their own pricing decisions.  In terms of attracting savers, banks can offer different rates of interest depending on the profit they expect to make from lending out the cash deposited with them.  So, for example, a flexible savings account might pay very little interest because the bank has no guarantee how much money is going to be left in the account for how long.  By contrast, if a saver agrees to leave a certain amount of money in the account for a certain length of time, they may be rewarded with a higher rate of interest.  When it comes to lending money, banks are essentially looking to find the right balance between risk (the possibility of the borrower defaulting) and reward (the money they can earn from interest payments made by the borrower).  There are various criteria they will use to determine this, such as the purpose for which the loan is being made (for example is it for the purchase of an asset, which could be sold to pay back the lender if the need should arise), the flexibility with the repayment schedule (for example a low-interest loan may require the capital to be repaid within a certain time whereas a higher-interest credit card might only require minimum payments to be made) and the borrower’s personal situation. The individuality of interest rates One of the key points to remember about interest rates is that the fact that a bank can offer a certain interest rate for a certain product does not mean that they will offer that interest to everyone.  They may offer you the same product but at a different rate of interest or they may decline to offer you the product at all.  Therefore, before even applying for any sort of credit, it can be useful to look at the situation from the perspective of a lender and ask yourself the sort of questions they are likely to ask.  As previously mentioned, in addition to looking at the purpose and nature of any loan, a lender will also take a close look at the potential borrower by means of their credit rating, hence it makes sense to do everything you can to get it looking good, especially if you wish to borrow a large sum of money, for example to buy a house.

Sending a child to school for the first time is a significant milestone in many ways and, if truth be told, one of those ways is financial.  Even though childcare costs may still be an issue, especially in the school holidays, the fact still remains that school provides a place to keep children safe while parents get on with work (or anything else they do) as well as an education. When children reach school-leaving age, they are classed as young adults and while they may, in principle, be able to fend for themselves.  In practice, however, there are good reasons why they might still benefit from parental help regardless of whether or not they plan to go on to university.  For example, driving lessons and their own transport might help to open up job opportunities for them.  That being so, parents may wish to put away some money while their children are at school in order to help them transition into young adulthood when they turn 18 (or 16). Junior ISAs are a tax efficient option for saving for children Junior ISAs are essentially restricted versions of the standard adult ISA.  For the 2018/2019 tax year, the maximum payment is £4,260, which may not sound like much compared the the adult £20,000, but is still a lot better than nothing.  Like standard adult ISAs, the money can be held as cash (in which case interest income is tax free) or it can be invested in stocks and shares (in which case capital gains and dividend income are tax free).  An adult controls the account until the child is 16, at which point they can take over the management of the ISA, but can only withdraw the money when they turn 18. Cash versus stocks and shares Deciding how much of the money to keep in cash and how much to invest could be a challenge for some parents and professional advice could be very helpful here.  While cash is, on the face of it, the safest option, in that the capital is guaranteed to be preserved, interest income alone may not be enough to ensure that your (child’s) savings grow in line with inflation, not even when protected from taxation.  While investing in the stock market may seem more risky, it also offers the potential for much higher returns, which could really make a difference to your child’s future as a young adult. The question of control Speaking of risk, there is one issue with Junior ISAs, which some parents may find off putting.  That is the fact that as soon as your child reaches their 18th birthday, they get full control over the money, whether you like it or not, and they can spend it exactly as they see fit.  In other words, you might have intended them to use it the money to further their education, but if they want to spend it on the latest tech gadgets, there is absolutely nothing you can do about it.  There are basically two ways you can look at this possibility.  One is to take the view that if you educate your child about good financial management while they are still young, then you will have equipped them to handle the money responsibly and if they choose not to do so, you can legitimately decline to give them further finance or insist that the money is given as a loan and paid back.  The other is to avoid Junior ISAs and opt for a savings method which may be less tax efficient but gives you the option of exercising (some degree of) control over how the money is spent. For investments advice we act as introducers only.

The most fundamental rule of home improvement is that it should add value to your home in some way, be that by increasing your enjoyment of it or by increasing its financial value (or both).  While everyone will have their own idea of what makes a perfect home, there are some basic rules of home improvement of which everyone should be aware. Work out what you can do before you think about what you will do Before you set about making any major updates to your home, double check what your house deeds say about it and what your insurance company thinks about it.  If there are no stumbling blocks here, then make sure you are clear on where you stand with regards to planning permission.  In particular, do not just assume that any adaptations to your home will be covered under “permitted development”.  Finally, you may want to stop and take some time to think about how your plans might impact your neighbours or to put it another way, just because you legally can do something, doesn’t mean that you necessarily should.  If your neighbours dislike your plans, then you will have to think about the benefits of the improvement versus the risk of jeopardising good neighbourly relations. Be realistic about the impact the change will have on the resale price of your home Even if a change does add value to your home, there is no guarantee that it will increase the eventual sales price by as much as you paid to make the change.  Therefore, in an ideal world, you should aim to make any major changes when you still anticipate living in the home over the long term so that you can benefit from them in terms of the improvement to your lifestyle.  The closer you get to the point where you are thinking of selling your home, the more carefully you should think about spending money on major updates, especially where they involve an element of personal taste.  For example, you might think that the industrial look is perfect for a kitchen in a modern home, but people who come to view your home may disagree and either move on to another property or put in an offer which takes into account the cost of removing the kitchen you’ve just had put in. Use professionals (at least for major work) While the problems of “cowboy builders” may make for good TV, there are plenty of good quality, reputable builders out there who have skills, tools and insurance and who can provide any documentation necessary to demonstrate that your build meets legal requirements.  Depending on what you are having done, they may also provide a warranty.  Before reaching out to builders for quotes, make sure you are clear in your own mind about what you want, but be prepared to listen if a prospective builder makes alternative suggestions, even if they are more expensive, just ask them to explain themselves in plain English and good builders will be happy to do so.  Only proceed with a contract once you are 100% sure that you and the builder are completely clear about what you have agreed and are happy that it can be delivered to the agreed time-frame and for the agreed price.  This is important with any form of contractual agreement and arguably especially important when it comes to building work since it is far easier to make changes to plans, timescales and budgets, while they are still on paper than to start changing your mind once a builder has begun putting up scaffolding or ripping up floorboards. Do you have these? Top 10 DIY nightmares: Woodchip wallpaper Mirrored ceilings Carpeted bathrooms Ugly blinds Fake beams Outside toilet Artex ceilings Internal stone cladding Beaded curtains in doorways External stone claddingTop 10 DIY dreams: Interior redecoration Flooring replaced New bathroom Garden makeover New kitchen New boiler/ central heating system Double glazing / new windows New shed or garden building Exterior redecoration 10. Better insulation

Getting on the housing ladder is all very well, but if you start off your time as a home owner by purchasing a small property then you may well find yourself in a similar situation to first-time buyers if you later decide you wish to move to a larger home, for example in order to start a family. While you will hopefully have built up equity in your property and may have seen it increase in value, all things being equal percentage increases in the price of smaller, more affordable, homes will still result in less net profit than percentage increases in the price of larger homes.  For example, if a home originally cost £100K and increases in value by 1%, it will be worth £101K but a 1% increase in the value of a house which cost £200K will make it worth £202K and so on.  This means that instead of the £100k difference in price there was initially, there is now a difference in price of £101K. Even if you are planning to move to a different area, where homes are more affordable, you may still find yourself facing challenges.  For example, if you wish to move from a small, city centre flat, to a family home in a commuter town, but still plan to keep the same job (or at least work in the city itself) then your mortgage affordability calculations will have to incorporate the fact that your travel costs will increase.  You may still save money overall, but possibly not as much as it might initially seem from the house prices alone. As is so often the case in life, there are no easy fixes to this situation, but here are some thoughts you might want to keep in mind when you’re moving into your first home. Keep saving for your next deposit Resist the temptation to think “job done” and relax your financial discipline.  Yes, buying your first home is cause for celebration and, of course, life is for living, but if you have any plans to move on to a bigger home at some point in the future, for example, if you want to have children, then it’s a good idea to start preparing early. Be careful what changes you make to your current home The longer you plan to stay in a property, the longer you have to benefit from any changes you make to it.  The less time you plan to stay in a property, the less time you have to benefit from any changes you make to it and therefore, from a purely financial perspective, the more confident you need to be that these changes will increase the value of your home sufficiently to justify making the up-front investment.  Also, be very careful of making any change which it would be difficult for a new purchaser to reverse. Do everything you can to maximise the sale price on your home when the time comes This may seem like stating the obvious, but it does matter.  In particular, do your research before deciding on an estate agent or estate agents and a conveyancer and once you have made your choice be ready to work with them to make your house as appealing as possible to potential buyers.  Remember that every little increase in the sales price is a bit more money in your pocket, which can go towards your next home (or any other purpose you choose).  Keep in mind, however, that you will usually have to pay standard selling charges out of the sales price (for example the fees for your estate agent and your conveyancer) so your net profit will typically be slightly less than the sales price minus the balance of your mortgage. Your property may be repossessed if you do not keep up repayments on your mortgage.

General figures about the cost of retirement income can have their uses, but the fact of the matter is that, like many aspects of life, the cost of retirement will depend greatly on your own personal circumstances, needs and wants.  Therefore, instead of looking at “average costs”, we’d like to suggests some points you should consider when estimating how much money you will need to live on comfortably in retirement. Housing Obviously you will need a place to live in your retirement and where you choose to live will influence how much it will cost, although working out the effective cost of a home may require looking at far more than just the headline figures.  For example, let’s say you own a flat in London and have paid off your mortgage.  It would be nice to say that it would now be free to live in your flat, but actually there will still be costs involved and these costs may be both open and hidden.  An example of an open cost might be council tax, which you might still be required to pay depending on your income.  An example of a hidden cost might be the loss of earnings generated from the lump sum you would gain from selling your property and moving somewhere smaller and/or in a more affordable location.  Moving to a more affordable location, however, could also carry hidden costs, for example, you may find yourself spending money on fares to visit your nearest and dearest or for them to visit you.  You then have to decide whether or not the move is justified either because you are still better off financially or because the move enhances your life in some other way, such as allowing you to live in a more congenial climate. Opportunities to earn further income Retirement is an opportunity to leave behind the grind of everyday working life, but you may still find it beneficial to keep working in some capacity, at least in the earlier part of your retirement.  You may also want to look at other ways to earn income such as letting out a room in your property.  What opportunities are open to you will depend at least partly on your housing decisions.  For example, if you opt to live in a popular holiday destination and have a spare room, then you could look at offering holiday lets, whereas if your home is off the tourist trail and/or you don’t have a spare bedroom, then the holiday lets market may effectively be closed to you, although other options may still be open, such as undertaking knowledge-based work via the internet or running your own online store.  Basically the more income you can earn in your retirement years, the further your retirement savings could potentially stretch and the longer you can delay your effective retirement (as opposed to your official one) the longer your retirement savings will have to keep growing. Desired lifestyle A person’s lifestyle essentially has two components, needs and wants.  Needs, by definition, have to be taken care of as top priority and so your needs will form your baseline for judging the cost of your retirement.  In order for your calculations to be accurate, it is really important to be clear about the difference between needs and wants.  For example, you need a place to live, you do not necessarily need a home with one or more extra bedrooms, even if you do plan to have family over regularly.  Once you have worked out how much your needs are going to cost, you can start looking at your wants and, if necessary, prioritising them and thinking about what they will mean in financial terms. For pension, investments advice and tax planning we act as introducers only.

The Help to Buy scheme was rolled out in April 2013 and recently made headlines (albeit not necessarily front-page ones) by being rolled out to March 2023.  While it may be a matter of debate whether the Help to Buy scheme is a useful scheme to help those struggling with house purchases or just a backdoor hand-out to home builders which simply works to keep house prices artificially high, it is a matter of fact that the interest-free loan only lasts for five years, after which the government charges interest of 1.75% on the original loan amount, increasing each year by RPI plus 1%.  This means that from now until (currently) 2028, a percentage of home owners who have bought their homes using the Help to Buy equity loan scheme will be seeing their payments increase. A reminder about how equity loans actually work In short, the government provided a loan of up to 20% of the purchase price of a new-build home in return for an equivalent stake in the property.  Buyers provided a minimum deposit of 5% and standard mortgage providers made up the difference.  The equity loan is interest-free for the first 5 years, after which interest becomes payable at 1.75% and then each year it increases by the retail price index +1% until the loan is paid off.  In effect, the equity loan functions as an interest-only mortgage in that you are only paying interest on the debt rather than repaying the debt itself, which lowers your monthly payments but means you are not making inroads into the sum originally borrowed. Paying back your equity loan There are basically two ways to repay your equity loan.  One is to sell your property and give the government the appropriate percentage of the sales price.  The other is to have your home valued (by a RICS surveyor) and buy the government out of its share as a percentage of current market value.  NB: this is only possible provided that you are repaying a minimum of 10% of your home’s value. Selling your current home If you are in this situation, you could take it as a sign that now would be a good time to take a good look at your living arrangements and think long and hard about whether or not they are right for you.  Home owning does have its advantages, but so does renting and if you’re unsure about where the future is going to lead you, it may be best to opt for the flexibility of renting until you have a clearer idea of where you are headed professionally and financially. Staying put If your equity loan is now coming due, it presumably means that you have been in your current home for the last five years, paying off your main mortgage, in which case, you will hopefully have some equity in your property, especially if house prices in your area have risen since you made your purchase.  If you are confident that your are happy to stay in one place and able to finance a mortgage over the foreseeable future, then you may wish to streamline your life and potentially reduce the overall cost of your home by paying off the equity loan.  Be aware, however, that doing so will not necessarily reduce the cost of your purchase, since you will change from paying interest to the government to paying interest to a mortgage lender.  Assuming, however, you opt for a repayment mortgage you will, at least, be making inroads into the outstanding balance of the loan and you will also get the full benefit of any house-price rises after you have bought the government out of its share of your property. Your property may be repossessed if you do not keep up repayments on your mortgage.

Romance can make the world a brighter place but as any long-term couple will know, in day-to-day life there are a lot of practicalities to consider when it comes to making a relationship work.  One of these is considering how assets will be managed, in particular, who actually owns them and who pays for them.  A property is generally a huge asset so it makes sense to give serious consideration to the formalities of its ownership.  Here are some common scenarios and points to consider with regards to each of them. Couples in legally-recognised unions buy a property together If you are in a permanently-recognised legal union then for practical purposes, you and your spouse are recognized as two separate but equal halves of the same whole.  Holding a property as joint tenants would reflect this since it would give you equal shares in the property and equal rights over it.  It would also mean that if one of the parties died, the other would automatically inherit their share of the property.  Where a property is bought with a mortgage, life insurance may be necessary to ensure that the survivor can continue to live in the property (or at least sell it on their own terms), which raises the question of whether or not each party should take out an individual life insurance policy or whether they should take out a joint policy.  There is no right or wrong here, but there is the hard fact that joint life insurance policies typically pay out once (on “first death”) and then terminate, which means that if life insurance were still required, the survivor would have to take out a new, individual, policy in any case and the cost of life insurance goes up with a person’s age. Couples in non-legally-recognised unions buy a property together Whatever your views on the laws surrounding marriage, civil partnerships, divorce and dissolution, the fact is that there are laws so there is a legal framework in which couples operate, whether they like it or not.  Couples outside of this structure need to put their own framework in place.  They can buy as joint tenants if they wish and this may be an appropriate choice for couples in long-established unions who are confident that they will be together until death parts them, but otherwise it may be more appropriate for them to buy as “tenants in common”, which puts the purchase on a more business-like footing and gives each purchaser their own share in the property.  These shares can be of different sizes and each purchaser can treat their share as they see fit, for example they could sell it on to a third party or bequeath it to someone other than their partner.  Tenants in common can still take out joint life insurance if they wish, however it might be more appropriate for them each to take out their own life insurance policies to reflect that fact that they are still acting as legally-independent units. One half of a couple moves into a property which is owned by the other half of the couple This may be the trickiest situation of all since there are so many possible variations.  Rather than try to cover them all, we’ll just offer a basic rule of thumb that if you contribute to the purchase of a property in a meaningful sense then it could make a great deal of practical sense to have that contribution recognised legally by having the property ownership transferred to being one of tenants in common, always remembering that the tenants’ shares can be of different sizes.  You would then have to consider what would happen to both your partner and your share of the property in the event of your death. Your property may be repossessed if you do not keep up repayments on your mortgage.

Assets are nice to have but it’s income which pays the bills, literally.  This reality may pose something of a conundrum for modern retirees who could find themselves in a situation where they have a high net worth on paper, but poor cash flow, with the result that although they are technically well-off, in actual fact, they may struggle to pay their bills.  Here are some suggestions to help address this situation. Make the most of your pension pot Even if you have already taken out an annuity, you may be able to cancel it and take an alternative approach.  It is, however, strongly recommended to get financial advice before taking such a major step.  If you have not yet taken out an annuity, then you will want to make sure that you take the right decisions with your hard-earned pension pot every step of the way throughout your retirement.  Again, this is where professional advice can be invaluable. Either downsize or make the most of the space you have Accommodation can be a tricky subject for retirees.  Some may be comfortable in their established family home or, at least, not see anywhere better, in which case their immediate preference may be to stay put.  Those who opt to do so should, however, be aware that this carries risks.  Perhaps the most obvious risk is that property prices will go down so that you will get less for your home if you decide to sell it or release equity from it.  In the former case, you should also expect to pay less for your next home, but this does not apply in the latter.  A less obvious, but still potentially significant risk, is political trends.  For example, the government could change the tax system to make it more expensive for people to stay in houses which are held to be under-occupied.  If you do wish to stay in your current home, you may could look at ways to make the most of any extra space you have, for example, unused bedrooms vacated by adult children could be used by lodgers even if only for part of the year. See if you can still work in some capacity You may not want to go back to “working nine to five”, but there may still be ways you could earn a cash income, such as joining the gig economy or monetising a hobby.  This may not be a great income or even an income on which you could live without touching your retirement savings, but it would be extra money and if you earned it doing something you enjoy, it would be fun too. Be strategic with your cash savings Most of us need to keep some cash savings ready to hand if only as an emergency fund and although interest rates are still at less than 1% (plus savings interest can be taxed), as the old saying goes, “look after your pennies and your pounds will take care of themselves).  While you will probably want to avoid bouncing around between banks if only for your convenience, you should certainly keep your eyes open for anyone who is offering an especially good deal and, in particular, see if it would be worthwhile for you to keep your cash savings in an ISA wrapper to minimise your tax liability. Keep setting aside investment income if you possibly can Try to keep making savings from your pension (and/or other income) so you can carry on investing for your future and so that you have the potential to leave a legacy behind you, even if you don’t have children, you may still have family and friends or at least causes you wish to support. For pension, investments advice and tax planning we act as introducers only.