Time is ticking away to make smart year-end retirement planning decisions. It’s common knowledge that increasing our retirement savings will better prepare us for retirement. But in addition to saving for retirement, it’s also important to maximise on other ways to improve our retirement finances in 2016 and beyond.
One of the key challenges some people face is imagining a retirement which may be decades away. As individuals take on more responsibility for their retirement, a clear idea of what they can expect from the State Pension and their own savings becomes ever more important.
Individual Savings Accounts (ISAs) are one of the most valuable tools available to investors focused on wealth creation for the long term. There is no tax on interest payments, no higher-rate tax on dividend payments from 6 April 2016, no tax on capital gains to pay and no need to declare ISAs on a tax return.
If you became sick or injured, how would you meet your monthly financial commitments or even your medical bills as you recover? Protection insurance can be a valuable safety net for you or your family should you become ill or die. More than one in five (23%) Britons with savings say their savings wouldn’t last longer than a couple of months if they were unable to work, yet less than one in twenty protects their income.
Last year, the Chancellor announced a significant change to Individual Savings Account (ISA) inheritance rules – a change that has the potential to improve the situation of around 150,000 widows or widowers a year.
It’s fair to say there was no one else quite like David Bowie. He was truly one of a kind, and his music helped inspire generations of people throughout his illustrious career. However, it would now seem that he could become an inspiration when it comes to estate planning too.
It’s easy to think, ‘I’d cope, that’ll never happen to me’. But any of us could become ill, and a critical illness policy may help to give some financial security at a difficult time.
If the worst does happen, it’s important to make sure you’re financially protected against the impact a critical illness could have on you and your family.
Successful investing involves making choices that meet your unique needs today and your financial goals for the future. A well-defined investment strategy is one of the cornerstones of a successful financial life. Investing is about building wealth slowly rather than getting rich overnight.
Understand what it will mean for you
Administration
– See Letters of Administration.
1. The main ways to avoid Inheritance Tax are to spend your money while you are alive or give it away.