• Adviceworks Limited
  • 52a High Street
  • Redbourn
  • Hertfordshire
  • AL3 7LN
  • Tel: 01582 799087
  • Fax: 01582 799088

Don't let the taxman break into your savings

ISA's can be an ideal way to shelter your savings from personal taxation.  But you only have until 5th April to secure your ISA for this tax year.

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Contact us for advice on your ISA options 

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Please note: 

Levels, bases, and reliefs from taxation are subject to change. 

The value of your investment and any income from it may go down as well as up and you may not get back the full amount invested.

 

Short-term Annuities

This is a drawdown pension. It enables you to take a proportion of your fund and purchase an annuity, which gives you an income for up to five years. Meanwhile, the rest of your fund remains invested and exposed to the stock market.

The plus points

Once you have purchased your annuity, for the duration of the annuity’s term, you will know what your income will be. Perfect for people who like some degree of certainty.

The pitfalls

The many plus points of short-term annuities are also their drawback. Signing up to a set income for the duration of the annuity, will reduce the overall value of your fund. If investments in your fund under-perform, it could result in a lower income when you finally purchase an annuity.

It is also worth noting that you get much less value for money with a short-term annuity. With lifetime annuities, the people who die sooner than expected subsidise the rates for everyone else. So you get more for your money. With an annuity of five years or fewer, the subsidies are very low, consequently lowering the rates. So, you get much less for your money.

If you’re unsure whether short-term annuities are right for you, call us for advice.

Income withdrawal

Phased retirement

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