A pension can be viewed as a long-term savings plan to help you save money that is accessible for you when you retire.

It is never too late to start saving for your pension as it will help to make your savings grow with regular contributions that you make and then are able to access from the age of 55 onwards.

You will receive a State Pension which is a regular payment made by the government, however the maximum basic State Pension you will receive is £159.55 per week (as of April 2017) and this is far less than what most people say they can live on.

Automatic Enrolment
Employers are gradually being required to automatically enrol their employees into a work place pension. Your employer will contribute towards this which will help towards saving more money for your retirement. This is referred to as ‘automatic enrolment’ scheme which is compulsory for all employers to provide.

Pension types
Defined contribution pension It can also sometimes be referred as ‘money purchase’ pension. They can be personal pensions organised by you or your employer. The amount you receive depends on how much money is contributed and how well the investments have grown. The value of your pension can go up or down dependent on the investments made. See below the various types of defined contribution pensions:
• Executive pension plan
• Group personal pension
• Master trust pension (eg NEST, NOW pension, the People’s Pension)
• SIPP (Self Invested Personal Pension)
• SSAS (Small Self-Administered Schemes)
• Stakeholder pension

Defined benefit pension can also be known as a ‘final salary’ or ‘career average’ pensions. Defined pension is arranged by your employer. The amount of pension you receive depends on your salary and the duration of time you have worked at your current workplace.

Need more information?
If you would like further advice on any of the matters above, CHN Financial Consultancy would be delighted to help you. Call 0113 3878240 or use the quick contact form to arrange an initial NO OBLIGATION review.

Keep thinking about sorting your finances, but not sure where to start? It’s never too late to begin! We’ve put together some handy hints to help you:

There are a variety of ways you can protect your money such as savings accounts, SIPP (Self Invested Personal Plan) or a cash ISA. Whichever option you are wanting to set up, CHN Financial Consultancy are here to help!

ISA (Individual Savings Account)
Put simply, ISA’s are a tax-efficient savings account. The tax-free allowance for 2017/18 is £20,000. Begin tax efficient savings with the help of our Independent Consultants who can provide you with the most relevant options available.

Retirement: Are you saving enough?
It’s never too early to start saving for your retirement; the basic State Pension is £159.55 per week (as of April 2017) and is considered far below what most people say they can live on. Two popular ways of saving for retirement are:

• Work place pension
A percentage of your wage is automatically paid into a work pension scheme. Most companies now contribute a percentage of money towards the pension scheme also.

• Personal pension
This is chosen by you with a pension provider where you can contribute regular monthly payments to the pension provider who will invest it on your behalf.

Investments
Investment is a vehicle to try and ensure that your money receives a profitable return. You can invest in assets such as shares, bonds, funds or property.

Each investment has a different potential for growth and carry their own capital risk, therefore investments can fall as well as rise and you might not get back the original capital invested. You should think carefully before investing.

Need more information?
If you would like further advice on getting to grips with your finances, our Independent Financial Consultants offer professional and unbiased advice. Call 0113 4387820 to discuss your options or use the quick contact form to arrange an initial NO OBLIGATION review.

Keep thinking about sorting your finances, but not sure where to start? It’s never too late to begin! We’ve put together some handy hints to help you:

Savings
There are a variety of ways you can protect your money such as savings accounts, SIPP (Self Invested Personal Plan) or a cash ISA. Whichever option you are wanting to set up, CHN Financial Consultancy are here to help!

ISA (Individual Savings Account)
Put simply, ISA’s are a tax-efficient savings account. The tax-free allowance for 2017/18 is £20,000. Begin tax efficient savings with the help of our Independent Consultants who can provide you with the most relevant options available.

Retirement: Are you saving enough?
It’s never too early to start saving for your retirement; the basic State Pension is £159.55 per week (as of May 2017) and is considered far below what most people say they can live on. Two popular ways of saving for retirement are:

Work place pension
A percentage of your wage is automatically paid into a work pension scheme. Most companies now contribute a percentage of money towards the pension scheme also.

Personal pension
This is chosen by you with a pension provider where you can contribute regular monthly payments to the pension provider who will invest it on your behalf.

Investments
Investment is a vehicle to try and ensure that your money receives a profitable return. You can invest in assets such as shares, bonds, funds or property.

Need more information?
If you would like further advice on getting to grips with your finances, our Independent Financial Consultants offer professional and unbiased advice. Call 0113 3878240 to discuss your options or use the quick contact form to arrange an initial NO OBLIGATION review.

REMEMBER: Each investment has a different potential for growth and carry their own capital risk, therefore investments can fall as well as rise and you might not get back the original capital invested.

Buying a home for the first time can be a daunting experience and mortgages can be the most complex part in purchasing a home. 

Finding the right mortgage options for you can take time, so we’ve put together a quick guide to help explain the process to you.

How much deposit will I need to get a mortgage?

You will usually need a minimum deposit between 5% and 20% to receive a mortgage. Placing a bigger deposit could help lower your monthly mortgage repayments*

What type of mortgage rate is available to me?

‘Fixed rate’ mortgage payments will not change during the period the fix rate is set for.

‘Variable rate’ mortgage payments can usually increase or decrease with a variable rate.

There are more options available than the ones detailed, but whichever one you decide to choose, once the rate period comes to an end you can re-mortgage your home and find another deal.

Who can help me get a mortgage?

You can seek a mortgage from various providers such as your bank, building society or an independent broker. Our team of Mortgage Consultants are on hand to find you the best deal and search the whole of marketplace to help you achieve this.

What if I can’t pay my mortgage payments?

Taking out a Mortgage Payment Protection Insurance (MPPI) can help you cover your payments, if you have had an accident, become too ill, can’t work or you have been made redundant. Our Consultants can advise you on the most suitable plan for you.

Need more information?

If you would like further advice on getting a mortgage, CHN Financial Consultancy would be delighted to help you. Call 0113 3878240 or use the quick contact form to arrange an initial NO OBLIGATION review.

 

*Your home may be repossessed if you do not keep up repayments with your mortgage.

The ISA (Individual Savings Account) is a popular way to save and invest money tax efficiently. Recent years have seen the amount you can save rise rapidly – a further increase is due in April 2017 – but what is an ISA and is it the right choice for you?

How does the ISA limit work?

The current maximum amount you can save is £15,240 – in 2017/18 the ISA investment limit will rise to £20,000, with the Junior ISA (JISA) and Child Trust Fund limits increasing to £4,128. Under existing rules, you can either split the money between a cash ISA or a stocks and shares ISA, or put the full amount into a mixture of both.

What’s the difference between a cash ISA and a stocks and shares ISA?

Put simply, a cash ISA is simply a tax-free savings account that accrues interest paid by your cash ISA provider. A stocks and shares ISA lets you invest in shares, bonds and investment funds – your money (unlike a cash ISA) has the potential to be affected adversely by stock market volatility, but also has the potential to yield a higher return.

Will I pay tax on dividends paid within a stocks and shares ISA?

At the time of writing, investors receive a £5,000 tax-free allowance. After that, dividend tax rates start at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers and finally 38.1% for those who pay the additional rate of tax. This can be a complex area and it could be prudent to seek professional advice on this matter.

What happens if I exceed my annual ISA limit?

As it is possible to hold a cash ISA with one provider and a stock and shares ISA with another, there is always the risk that you could pay in too much during a tax year. It is your responsibility to keep track of BOTH types of ISA. HMRC is notified when a deposit is made and tax records for individuals are checked and oversubscriptions recorded. Any anomalies will be assessed and advised by HRMC themselves.

If you want to find out more about ISA’s or any other area of investments, CHN would be delighted to hear from you. Call us on 0113 3878240 or use the quick contact form to arrange an initial NO OBLIGATION review.

 

Stocks and shares ISA’s are investments therefore the money invested may go down as well as up and you may not get back the original capital invested.

financial-resoultions

We all (or should, at least) take a keen interest in our health – after all, it is the one thing that money can’t buy. When it comes to our finances and how healthy they are, lots of us take a backseat and ignore it as an irritant to be dealt with at a later date.

We believe that there’s no time like the present to make sure your finances are as strong as possible for the year ahead – here’s some simple steps you can take to make 2017 a more financially secure year.

Set yourself a realistic budget
Do you REALLY know what you spend in a year? List your expenses on a sheet of paper, and (most importantly), be honest! Don’t leave out any expenses, and you’ll see what you can easily cut out.

Pay your credit card balance in full
In some cases, you could be paying over 20% in interest for every unpaid credit card balance over a year. That means you’re paying 20% more than the listed price for your purchases! So, pay your credit card balance as soon as you’re able to – it could be the first step towards improved financial well-being!

Build up a cushion for emergencies
What would you do if you lost your job tomorrow? Build yourself a fallback for emergencies that’s equivalent to roughly six months of income – it could be crucial while you seek new employment.

Get informed!
Don’t automatically avoid the finance sections of newspapers, magazines, and websites. You could find information that help you understand your own financial situation and help you better understand what your Financial Consultant and Company are telling you.

Consult a Professional. We’re here to help!
We’re proud to offer independent advice on a range of financial matters; Our Consultants search the whole of marketplace to find the solution that’s best for YOU.

CHN are also proud to hold the prestigious “Chartered Financial Planners” status, awarded by the Chartered Insurance Institute and considered to be the “gold standard” in our industry. It recognises the dedication, integrity and high level of customer service we aim to give ALL our clients.

To arrange an initial NO OBLIGATION review, use the contact form or call 0113 3878240.

 

beautiful-christmas-tree-wallpapers-6

We’d like to wish all our clients and those who have continued to support CHN in 2016 a VERY Merry Christmas and a Happy New Year!

Our offices will be closed over the festive period from 1pm on Friday 23 December, and will re-open at 8:30am on Tuesday 3 January.

Here’s to a fantastic 2017!

The CHN team

 

Poland High Resolution Invest Concept

CHN Financial Consultancy believes that helping you understand your investments doesn’t need to give you a headache; with access to Independent Consultants who deal in this area on a regular basis, our collective experience could help you on the way to realising your investment ambitions.

Getting to know you:

It is important that we get a full picture of your financial circumstances and plans for the future, and will ask you about your current circumstances and your financial goals. You will then be asked to complete a short questionnaire which is designed to help us understand your attitude to risk.

We use the questionnaire to create a suggested “risk profile” based on your answers. We will discuss the results with you, and together decide if the risk profile is appropriate for you and your particular needs. This includes how much potential loss you are willing to accept in return for potential gains, as well as considering your capacity for loss according to your circumstances.

Is a return on an investment guaranteed?

It can be disheartening to hear friends talking about their investment gains while money you have safely stored away in a savings account doesn’t make you a particularly profitable (or discussion worthy) return, but before you take the decision to begin your investment journey, ask yourself a vital question: how would you feel if your investment were to drop in value?

Investments can fluctuate and it’s important to recognise that the performance of a fund in the past isn’t necessarily an indicator of strong performance in the future. The potential scenario that you could end up losing money (as well as making it), should be a major contributing factor in your decision to invest or not.

Where should I invest?

There are many types of investments available and choosing the right one for you is paramount to you achieving your financial “denouement” – this could be a shorter-term investment to pay for a world cruise for example, or a longer-term investment to help you pay for your child’s university studies.

To spread the risk, a fund could be an ideal place to start. Unit trusts and OIEC’S (Open-Ended Investment Companies) are examples of this. Your investment can be shared out amongst different companies in the fund, thus reducing the chances of you losing money and increasing the potential for a profit.

It’s extremely important that you weigh up both the pros and cons of investment; the risk factor involved is not something everyone is comfortable with, so it’s important you understand from the outset what your options are.

How CHN could help:

CHN take pride in offering quality independent advice. Contact us to arrange a no obligation review.

Midsection of young male doctor holding piggybank at desk in clinic

A quick glance at the bank balance, let alone a credit card bill or mortgage statement, is enough to throw many people into a crisis. Money just seems to vanish. Whatever happened to the home you dreamed about? The bulging pension pot? The debts you want to get rid of? Here’s some of the major issues many of us face:

Property
One way to lower monthly mortgage payments is by opting for a longer repayment term. Some lenders will do 35- or even 40-year loans, and an increasing number are prepared to lend well beyond retirement age.

Traditionally, many lenders would only grant a mortgage up to an individual’s planned retirement date – so for someone aged 45 who expects to retire at 67, that meant a maximum mortgage term of 22 years. But things are changing, and a number of building societies in particular will let you have a mortgage until you are 85+. In July, Nationwide upped its “maximum age at maturity” from 75 to 85, while the Halifax raised its maximum from 75 to 80.

If you are happy to live in a new-build, the help to buy equity loan scheme will see the government lend you up to 20% of the cost.

Taking a mortgage into retirement can have a big impact on your income, so it’s important to have a clear financial strategy to make sure you have enough to live on in later life.

Pensions
Investing in a pension is important – don’t overlook it due to other financial commitments!

If you’ve accrued various money purchase (defined contribution) workplace pensions, CHN could get them to work harder for you. Bringing them all under one roof may make sense financially, and will make it easier to keep track of them.

Many pensions offer additional voluntary contributions (AVCs). If you can afford to, these could be one of the best financial decisions you make. The best AVCs see employers paying in as well as employees – for example, they might pay 50p for each £1 you put in.

Debts
When it comes to many credit cards, overdrafts and personal loans, people have racked up some serious debt. It can be harder to make more than the minimum payments at this time: In a sobering statistic, SunLife found that as a percentage of income, those aged 45-54 have more than half of their income allocated to fixed costs like these!

If you need independent financial advice then contact us using the online form, or call us on 0113 3878240.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Senior couple embracing on beach, rear view

It’s easy to think that if you have a pension, you can forget all about it until it’s time to retire.

However, regular reviews with Clayton Holmes Naisbitt could help you enjoy a more financially comfortable lifestyle in retirement. Don’t make these costly mistakes…

Being over-optimistic about your state pension:

Although the basic state pension has risen to £155.65*, not everyone will receive the full amount as it depends on your contribution record. In reality, it will never represent more than a safety net. Getting a pension forecast from gov.uk will show you what you’re likely to receive.

Not joining an employer scheme:

If you can join a workplace pension scheme, you should jump at the chance. By 2018, all UK companies will have to offer one and will contribute to it on your behalf provided that you don’t opt out of making your own contributions. As with your state pension, you need to keep an eye on the amount of benefits you’ll receive.

Not reviewing your plans regularly:

The longer you delay, the more expensive it becomes to build up a reasonable pension. It really pays to review your contributions regularly to help ensure you’re saving as much as you can comfortably afford and that your pension pot is invested in a diversified spread of funds. The earlier you save, the more opportunity there is for your pension to grow, and of course there’s the added incentive of valuable tax relief.

Thinking you can work forever:

While you might want to do this, it might not be a realistic prospect. We all age at different speeds and as you approach retirement age you might not feel up to carrying on, and the opportunity to do so might not be open to you, so don’t bank on this happening.

Making your property your pension fund:

Relying on your home to fund your retirement is a risky strategy. It could mean downsizing to release cash and you might find it difficult to sell in a downturn. Plus, you’ve got the expense of finding alternative accommodation.

Need further advice? Fill in our contact form or call us on 0113 3878240

 

*Correct at time of publication

Clayton Holmes Naisbitt