Enhance Your Pension Income By 25% - Published:18/10/07
As a solution for providing us with an income in retirement, life annuities are far from perfect Annuity rates have crumbled in recent existence and the prospects for a reversing trend don't look good But the fact leftovers for the vast bulk an annuity is still the best option for taking retirement fund benefits - so it pays to know how to maximise yoursIn my previous article How To Get More Out of Your retirement fund Fund I looked at an innovative new product which could help you holdup purchasing your annuity until you're older, are more probable to have suffered health problems and therefore may be able to take advantage of more generous annuity tax Today I want to explain in more detail how you could be eligible for an enhanced or impaired life pension and what this could mean for your retirement profitsEnhanced annuities provide people with a higher level of profits if their life expectancy is deemed to be below average Annuities are often criticised for as long as poor value for individuals who don't survive to reach standard life expectancy Usually, if you only live for a few years after intially purchasing the annuity, the lion's share of your unique pension finance will be lostBut precisely because there's a higher probability you won't live to average life expectation, some annuities companies will pay higher rates to reflect the inferior risk you represent to them And you don't of necessity need to be in a poor health to be eligible for improved rates either People who smoke or who are plump, for example, could also benefit from the greater than before annuity these products offerHere are some examples of medical circumstances or lifestyle factors which could qualify you for an improved annuity:If you suffer from a very serious medical condition, you could benefit from what's known as an impaired life pension This type of annuity could offer you a significantly higher annuity income if your existence expectancy is significantly reduced as a resultHere are some examples of medical conditions which could meet the criteria you for an impaired life annuity:Research by the place of work for National Statistics (ONS) revealed that, in 2001, fit life expectancy was 67 years for men and 688 years for women Therefore, if you can holdup purchasing your annuity until these ages, then there is a greater chance you will qualify for an enhanced or impaired life annuityThe table below outlines the dissimilarity this could make to your annuity profits By putting off your annuity purchase until you reach 70 or 75, you could receive an increase of around 25% on normal ratesSource: Investment, Life & Pensions Moneyfacts September 2007 buy price £10,000 Annuity rates are based on a single existence, level income, guaranteed to pay out for five years with no riseI know here at The Fool we continually harp on about shopping around for a better contract but there really is an excellent cause for that With many pensioners struggling in retirement, making the most of your retirement fund fund is essential and I think it would be foolish not check out whether you could get an enhancement to your annuity income If your physical condition has deteriorated far enough to make you entitled for impaired life rates then your income could be even greaterCurrent research suggests up to 40% of populace could take advantage of an improved or impaired life annuity, but the message is yet to catch on and many of us don't realise we're absent out on higher levels of profits For this reason, if you think you might qualify, it's very important to ask There are companies out there such as Just Retirement, company and Tomorrow (formerly GE Life) which specialise in this type of commerce But even big players in the annuity market including Norwich Union and Prudential may offer uplifted ratesRemember once you've committed to an pension there's no going back, so the decision you create will affect the rest of your lifeCan't find what you need in Retirement And Pensions Try one of our other personal finance areas© Copyright 1998-2007, The Motley Fool Limited All human rights reserved This material is for personal use onlyput of Reg: England & Wales Company Reg No: 3736872 storage bin Reg No: 735 7818 01 Registered Office: 30 huge Pulteney Street, London W1F.
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Top ten property reports: February - Published:07/03/07
information Companies & markets Investing Power portfolio Campaigns Mortgages & homesMortgage featuresInsurance Consumer advice Broadband & phones departure Saving & banking Credit & loans Small commerce Tax & wills Message boards Money blog Tools & calculators Ask an specialist Guides Compare & buyThe campaign against rip-off mortgage exit cost won a major victory when lenders were prearranged to either lower charges or justify their increases by supervisory body the Financial Services Authority last monthLAP OF LUXURY: A account that flats in bonbon & bonbon's One Hyde Park development have been valued at £84m each grabbed readers' attentionA QUICK cash MAKEOVER If you only have one minute to learn how to sort your finances, not remember the rest and read this>> Our 8-step planUnsurprisingly, how to get a refund was the large question being asked by mortgage clientele and exit fees were the most well-liked subject with This is Money readers in FebruaryReaders have emailed us to say they have reclaimed big chunks of £200-plus way out fees and thanked This is Money, Richard Dyson and the Financial Mail on Sunday side and the Daily Mail's cash Mail staff for campaigning against the feesLong-time favourite buy-to-let again registered a fit interest in the large stories for February, with a readers' question on how to hit rising interest rates striking a chordThis is Money also took a glimpse into the world of the super-rich, by looking at London's £84m flats and exposed that Poland is leading the race for international possessions investingWe've compiled a full list of lenders' fees, to help you work out how much you might be able to reclaimThe housing market is showing signs of slowing Lucy Farndon looks at the forecast for house prices in the pending monthsI bought a buy-to-let property three years before My fixed-rate mortgage is about to run out and the rent will only now cover the repayments What should I doBuy-to-let is no longer the headline grabber it once was, but many investors are still keen Read This is Money's top ten buy-to-let tipsThousands of populace will be looking to remortgage as a result of the bank rate rise This is cash picks the best dealsNorwich Union is puzzling policyholders about who will get windfalls if its proposed sharing of £4bn goes aheadThe highest British price for a flat has been shattered by four flats overlooking Hyde commons which are on sale for up to £84m each - a evidence even for London's super richNorwich Union owner Aviva wants to plate out £4bn of surplus assets We ask its 'policyholder advocate' what the diagram meansThe European housing market shrugged off forecasts of a hold up in 2006 with Scandinavia and Eastern Europe most important the wayMortgage customers hit with unfair fees when they shut their accounts can get £200+ back from the greedy lenders Find out more and follow our simple guide© 2007 linked Northcliffe Digital Ltd Terms Privacy policy promote with us LoansCardsMortgagesInsuranceCompare the best deals around with This is cashPlease choose a loan£ Select a loan term 12 months (1 day 24 months (2 years) 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 existence 120 months (10 years) GO novel credit cardPick your favoured card offer Please decide 0% introductory rate No annual fee Cashback Loyalty scheme All of the above GO equilibrium transferPlease select a type of insurance Life insurance house and contents Car Breakdown armed forces Health - medical Health - dental Travel Pet - dog Pet - cat GO RECLAIM ALL FEESAdvice/template mailBUY-TO-LET TIPSThinking about investing in possessions This is Money has the.
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Equity release a costly choice - Published:19/12/06
A generation of retired possessions owners risks losing out through signing up to expensive even-handedness release schemes that allow them to withdraw cash from their homesWhat will happen to house prices in 2007 understand writing the house prices latest and have your speak in our poll >> VoteSomeone looking to release £50,000 from a £250,000 possessions could be more than £150,000 not as good as off after 20 years by choosing the most expensive type of plan, rather than downsizingThese are the conclusions of a study commissioned by the Financial Services customer Panel, which advises the Financial military Authority The panel hired actuaries to do the number crunchingIn most luggage the actuaries found the odds were clearly in good turn of selling up, though in some cases a lifetime mortgage worked out better worth Home deterioration plans were found to be the most expensive option in almost all circumstancesLifetime mortgages are loans where the interest is not paid monthly, but is additional to the sum owing, increasing the in general debt In the case of equity let go, though interest rates are fixed, most loans double in size in about ten to 12 years The loan is repaid only when you leave your home and put up for sale it Companies offering these loans include Northern astound, Standard Life, Prudential and Norwich UnionA home reversion diagram works differently The company buys a stake in your home for less than its market value, based on your existence expectancy You can remain livelihood there rent-free, but when the property is sold, the reversion company takes its slash from the proceeds Firms marketing reversions comprise GE Life, Bridgewater Equity Release and In Retirement ServicesThe consumer panel report did not conclude that equity let go firms were profiteering and found their products were quite priced But John Howard, the panel's chairman, says: 'clientele should be aware there is no obligation on advisers to tell clientele that downsizing without taking any financial product is probable to be the cheapest alternative'A smaller home is also likely to have lower energy and maintenance costs and smaller assembly tax billsCheaper running expenses are partly why Wendy Branson sold her three-bedroom house in Bovey Tracey, Devon, a day ago and enthused into a smaller, two-bedroom property in the town Wendy, 64, has a small pension from her time as a local administration administrator But this income is stretched as she has to disburse for the upkeep of her horse, Dolly MixtureShe says: 'Dolly Mixture and I have been together 17 years and I needed to be sure I could carry on to afford to look after her' Freeing money by downsizing gave her money towards feed, rental fee for the horse's field and examine billsWendy, who is divorced, says: 'It was difficult to leave a home I was happy in, but I have moved to a house that is easier to uphold and nearer the middle of town'The study comes as more retired homeowners twist to equity release More than £113bn was haggard through equity release plans in the year to the end of September, according to trade corpse Safe Home Income Planssend chairman Jon King says: 'This study is helpful in getting customers to think all options We have produced a ten-step even-handedness release checklist and number one is, 'Have you considered selling your house' clientele have to think about that before they look at anything else'One problem for those considering equity let go is trying to weigh up the true cost of each option expenses vary dramatically depending on how long persons live, and on what happens to house prices in the meantimeFor example, a lifetime mortgage becomes poorer worth for cash the longer someone lives because interest is charged on accumulated interest By contrast, a home reversion plan gives most horrible value if someone dies almost immediately after taking one out The panel tried to balance all these factors by scheming the value of a property that a proprietor or their estate would be absent with after different time periods, once the release company had engaged its shareTake the example of a man old 65, trying to release £50,000 from a property value £250,000 The actuaries found that downsizing would cost £120,512 - the growth in value of a bigger possessions lost by moving to a smaller one But the cost of a life mortgage is pound;169,793, while a home reversion plan involving trade a half share in the property costs £273,891 This calculation was repeated for various circumstances Downsizing more often than not works out as improved valueDean Mirfin, business development director at specialist advisers Key Retirement Solutions, says: 'This examination will help people think about costs Two out of three clientele end up without an equity release plan, either because they make a decision to move, get help from relations or boost income by claiming benefits'However, some even-handedness release firms are not happy Ali Crossley, director of life mortgages at Prudential, questions the report's assumptions 'I think they have underestimated the costs of a move, which we speak are more like £9,500 on a £250,000 home, double what they have authorized,' she says 'In that light, moving is an expensive alternative if you just want to release £20,000'The report is simplistic and does not talk about the emotional side of staying in your own home' Even if you do decide to move, in some parts of the country there is a shortage of appropriate retirement homes This means they order top pricesThis is what Wendy Branson found in spite of moving to a smaller, cheaper home, she was strained to draw down £19,000 earlier this year through a lifetime mortgage with Norwich UnionSelect a loan term 12 months (1 day 24 months (2 years) 36 months (3 years) 48 months (4 natural life 60 months (5 natural life 72 months (6 natural life 84 months (7 natural life 96 months (8 natural life 108 months (9 natural life 120 months (10 natural lifePlease select a type of insurance existence insurance Home and contents Car Breakdown services physical condition - 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