Since you ask

Feb 7 2006

By Peter Rutherford, The Journal

Your money queries answered by Peter Rutherford, chief executive of Rutherford Wilkinson plc, independent financial advisors. Mr BW from Whitley Bay asks I have four pension schemes which are still with previous employers. My current employer has a final salary scheme and I was thinking of transferring all my pensions into it. Is this sensible? Answer First of all, will your existing employer's scheme accept the transfers? If they do, you are putting all your eggs in one basket and there is no guarantee that pooling everything will give you more. You should take advice from a pension specialist from a firm of independent financial advisers. Mrs AS from Birtley asks My husband and I have always paid for private medical insurance. We are now both in our 70s and in recent years the premiums have gone up substantially, despite agreeing to an increased excess. Our renewal has just come in and is now over £250 per month, which is really becoming unaffordable. We are thinking of cancelling the policy and instead saving this money to pay for our own medical care if needed. What would you advise? Answer You could shop around to see if you can obtain a more competitive premium from an alternative provider, but they would normally exclude any pre-existing conditions, which your existing insurers may be covering. If you do decide to self insure then you are potentially saving over £3,000 per annum and if you put this into a high interest deposit account then over the years you will build up a substantial sum which may cover the cost of any future operations. Story continues ADVERTISEMENT The danger, however, is what if one or both of you require quite serious and costly medical treatment in the near future? You need to think long and hard and explore all the alternatives before making any decisions. Mrs NS from Ashington asks In 1990 I was advised to contract out of the State Earnings Related pension through a personal pension. I am 49 and decided to contract back in last year. My question is, when can I actually start to get an income from this pension fund, and can I get a lump sum? Answer At present you can only start to draw benefits from this scheme from 60 and you cannot get a lump sum. However, from April 6 this year, the earliest age at which you can take your benefits changes to 50 (55 from April 6, 2010) and you will be able to take up to 25% of your fund as a tax free lump sum. Talk to an independent financial adviser as they will be able to give you further guidance on this matter. *********** Investors Guide is a booklet with information on all aspects of investment and is available to readers. To apply for your free copy, freephone 0800 074-5489 or write to me at Rutherford Wilkinson Plc, 21-23 Bridge Street, Morpeth, Northumberland, NE61 1NT. Please also write with any queries you would like answered. Rutherford Wilkinson Plc is authorised and regulated by the Financial Services Authority.

Top | Back | E-mail to a friend | Printable version

 

Copyright and Trade Mark Notice

© 2012 owned by or licensed to ncjMedia Limited. icNewcastle™ is a trade mark of ncjMedia Limited. Please read our Terms and Conditions and Privacy Statement before using this site.

 

Jobs Newcastle, Homes in Northeast, Used Cars Northeast, Newcastle Free Classified ads Mortgages, Jobs in Newcastle Local Mole - Local Directory