GETTING YOUR PENSION MONEY NEXT YEAR – OR NOW!

We are reading now about how next year will see the doors to your pension savings open up  completely for those aged 55 and over. Many people, however, will not even have to wait that long. Anyone already aged 55 or over can already access his tax free cash immediately

(and either use the remaining money to buy an annuity or leave it invested).

If you are fortunate enough to have a guaranteed pension income of £12,000 or more (from your State Pension or other pensions), you can access all of your pension fund now and do not have to wait until next year. Whether you should do so or not is another question!

And if you are aged 60 or over, and your total pension savings are less than £30,000, you

can take it all as cash immediately (25% of the fund tax-free and the rest taxed as if you had

earned it in that tax year). Those aged 60 or over with small pension pots (with less than a
value of £10,000) can cash in up to three of these on the same basis.

DECISIONS, DECISIONS, DECISIONS!

There are many new decisions to be made with your financial planning.

There are the latest changes in pensions and how they affect you and your planning. There is the

expected rise in interest rates and the need to decide whether to keep your existing deal

or go for a fixed rate. And those with savings still face the challenge of how to keep their

money relatively safe but still make a reasonable return from investing it.

Contact us for more information.

Interest Rates to Go Up & Mortgage Costs to Increase

There is no real question about whether interest rates will start rising in 2015, only when.



It is worth looking at your mortgage options now. The average Standard Variable Rate currently is 4.4%. Medium term fixed rates have already moved up a bit but there are still bargains to be had. We are recommending interest rates fixed for 3 years or longer.



We are happy to provide information about your options without obligation and in many cases the lenders pay all, or most of the costs for new clients. We have considerable expertise and experience to help you find a deal that saves you money and best suits your circumstances. Just give us a try. Contact us on 01342-313302 or at info@sovereignfinance.org .

STRIVING TO MEET EXPECTATIONS

From our surveys we understand that what the majority of our clients value most from us is our advice on financial matters, utilising our extensive knowledge and long experience over the last 30 plus years.

Those who have used us before know they can rely on us time and time again to provide a high quality service. Some of the recent client comments we have received:

“I would have no hesitation in recommending you. Thank you for all the excellent service over the years.”         – Mr I B of Cambridgeshire     

“We have dealt with Sovereign Finance for over 10 years and we have always been impressed with their attitude, as well as their ability to deliver market leading deals for our mortgages.”

 – Mr & Mrs PJF of Tonbridge

“We have always found them (Sovereign Finance) to be very efficient and helpful.”
 – Mr & Mrs JBF or Worthing

WORKPLACE PENSIONS FACE A LOGJAM

The legislation requiring all employers to set up a pension scheme for their employees, and requiring both employers and employees to contribute to it, continues to roll out. In 2014 it largely affects employees with between 50 and 250 employees. Next year it will start affecting the smaller employers. As there are thousands of them, this is likely to mean a logjam as regards pension providers and advisers.

As there are significant financial and legal penalties that can be levied on employers who do not fulfil their obligations, our advice is for employers to plan ahead. We will only be able to assist a limited number of employers and will give preference to those who are existing clients. Please contact Mr Arie Stuijt here at Sovereign for further information.

PROTECTING YOUR CASH DEPOSITS

Most people are aware that cash deposits in UK banking institutions are protected up to £85,000 in each account (£170,000, if a joint account). This is through the Financial Services Compensation Scheme. In the event of a claim the FSCS is required to refund the monies lost within 7 days. What is not broadly known, however, is that the £85,000 level of protection is only available for each banking group.

For example the Lloyds Banking Group includes Lloyds Bank, the AA, the Bank of Scotland, Capital Bank, the Halifax, Birmingham Midshires, Intelligent Finance, Saga and St James Place Bank.

This means that if you have deposits in several of the above, you are only protected for one total

amount of £85,000. To find out more visit the FSCS website at www.fscs.org.uk.

EQUITY RELEASE CHANGES

With the other changes occurring, there are also some new Equity Release options which permit the individuals taking them out to make payments back into them so as to limit or eliminate any increase in the amount owed.