On this episode of the Money Confidence podcast, Sarah and Georgia talk about pensions.

KEY TAKEAWAYS

A pension is one of the most tax-efficient ways to save for your retirement, but it can't usually be accessed before age 55. This will increase to age 57 in 2028.

When you contribute to a pension, the government will give you tax relief on those contributions. If you make a contribution into your pension from your net pay (after tax and National Insurance has been deducted), basic rate tax relief (20%) will be automatically added to your pension at source. Any growth within the pension is tax-free.

There are generally two types of pension: A Defined Benefit Pension where you get a guaranteed income for life once you reach the Scheme’s retirement date and a Defined Contribution or Money Purchase Pension, which is invested in the market and can go up or down in value. With a typical Defined Contribution plan, you can access the funds from the standard minimum pension age (currently 55) and there are various ways you can access these funds. Typically, 25% of the pot value is tax-free and the remaining 75% is taxed at your marginal rate of income tax.

BEST MOMENTS

‘Pension is quite a scary word and a lot of people just file away their paperwork and forget about it until they come closer to retirement. As people tend to have numerous jobs throughout their lifetime and have a pension with each employer, they can end up with many different pensions with different providers. It's easy to lose track of your different pensions so it's important to keep a record of them all and make sure you keep your contact details up-to-date.’

‘It’s important to start a pension as early as you can, because the longer you invest the more you will build up your pension funds for retirement.’

‘You should check the details of your pension with your pension provider, to make sure you are aware of the ongoing charges on the plan, where it is invested and the features of the pension, for example, whether or not it offers flexi-access drawdown. Pensions can be complex so you should seek professional advice from a financial adviser’

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

CONTACT METHOD

E: [email protected]

IG: https://www.instagram.com/sarah_talks_money/ 

LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/ 

Hosted on Acast. See acast.com/privacy for more information.

On this episode of the Money Confidence podcast, Sarah and Georgia talk about tax.… don't switch off! They make it interesting… or, as interesting as it can be!

KEY TAKEAWAYS

There are many kinds of taxes. Most people know about Income Tax – the tax on your wages. The Personal Allowance is how much income you can receive that is tax free – this tax year (2022/23) it's £12,570, although this can change depending on disabilities or how much you earn.

If your adjusted net income is £125,140 or more, your Personal Allowance is zero. In order to bring your adjusted net income below £125,140 you could make a pension contribution. The effective rate of tax relief is 60%. You could also make a Gift Aid donation and if you're an employee then you may be able to give up some of your taxable earnings for non-cash employee benefits of equivalent value. 

Capital Gains Tax is paid on investments outside of a tax efficient wrapper such as a General Investment Account. If your investments grow by £50,000 and you sell all those investments, that £50,000 gain is chargeable to Capital Gains Tax. However, you have a Capital Gains Tax Allowance which is currently £12,300 (in the 2022/23 tax year) and you don't pay tax on this amount.

Inheritance Tax is a tax paid on death. The current Inheritance Tax rate on death is 40% above your nil rate band.

BEST MOMENTS

‘If your adjusted net income is £125,140 or more, your Personal Allowance is zero.'

‘If you pay into your pension via Salary Sacrifice (it comes out of your gross income, before tax), you also save on National Insurance. Your employer will also be saving on National Insurance contributions.'

‘If you're claiming Child Benefit and not working you get National Insurance credits towards your State Pension. Claiming Child Benefit until your youngest child is 12 will give you National Insurance credits which count towards your State Pension.'

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

CONTACT METHOD

E: [email protected]

W: https://www.thegoodmoneycoach.com

IG: https://www.instagram.com/sarah_talks_money/ 

LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/ 

Hosted on Acast. See acast.com/privacy for more information.

On this episode of the Money Confidence podcast, Sarah and Georgia talk about LISAs (Lifetime Individual Savings Accounts) which are a tax free way of saving money towards retirement or purchasing your first home.

KEY TAKEAWAYS

A LISA has to have been open for a year before you can use the funds towards the purchase of your first home. If you're thinking a LISA is for you and don't have the funds yet then it may be a good idea to open one up and put a pound in to start the clock.

If you're purchasing your first home with a LISA, the value of the property has to be £450,000 or less. You also have to purchase with a mortgage rather than buying it outright. You must be over 18 years old to open a LISA, be under 40 to make your first payment into it, and you cannot pay into it once you turn 50. You must also use a solicitor or conveyancer, when purchasing your home, who will receive the money directly from your LISA provider. Your LISA investment counts towards your overall £20,000 ISA allowance across all ISA products (in the 2022/23 tax year).

If you wanted to convert the LISA into a standard Cash or Stocks and Shares ISA or withdraw the money, you would be penalised via a 25% charge on your total savings – which means you'd be worse off.

The home you buy with a LISA can't be a holiday home or a buy to let property, it must be your first home that you live in. As a LISA will be in your individual name only, you could either use both yours and your partners LISAs or, if one of you has owned a house before, the one who hasn't owned a house before could still use their LISA.

BEST MOMENTS

‘If you use your LISA for saving towards retirement, you can't access it until the age of 60.'

‘You can contribute up to £4,000 a year into a LISA and the government gives you a 25% bonus on your contribution (up to £1,000 per tax year).'

‘You aren't usually tied to the provider you opened your LISA with, so you may be able to move it to another provider who may, for example, offer a better interest rate. However, check with your provider first.'

‘In 2020/21 £34 million was paid to the UK Government in LISA penalties!'

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

CONTACT METHOD

E: [email protected]

IG: https://www.instagram.com/sarah_talks_money/ 

LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/ 

Hosted on Acast. See acast.com/privacy for more information.

On this episode of the Money Confidence podcast, Sarah and Georgia talk about ISAs (Individual Savings Accounts) which are tax free ways of saving money.

KEY TAKEAWAYS

There are different types of ISAs: Cash ISAs and Stocks and Shares ISAs are the most common, and the ones we're talking about on this episode, but there are also Lifetime ISAs, which we'll talk about on another episode as well as Innovative Finance ISAs, which uses peer to peer lending and isn't covered by the Financial Compensation Scheme, so we're not going to talk about that one. There are also Junior ISAs (both Cash and Stocks and Shares) which have a cap of £9,000 per tax year (2022/23) and these can be accessed by the child on their 18th birthday. 

Stocks and Shares ISAs can be invested in lots of different things: bonds, stocks and shares, funds, and some are riskier than others so you should really seek financial advice when it comes to investing – performance can go down as well as up.

BEST MOMENTS

‘The maximum you can put into an ISA in this tax year (2022/23) between the 6th April and 5th April the following year, is £20,000. This is the maximum across all of your ISAs.'

‘ISAs cannot be held in joint names or in trust.'

‘You have to be aged 16 or over and be resident in the UK to open an ISA, if you change residency you can no longer contribute to your ISA.'

‘ISAs are within your estate for Inheritance Tax purposes and, unlike pension contributions, you don't get Tax Relief on contributions into an ISA.'

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

CONTACT METHOD

E: [email protected]

W: https://www.thegoodmoneycoach.com

IG: https://www.instagram.com/sarah_talks_money/ 

LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/ 

Hosted on Acast. See acast.com/privacy for more information.

On this episode of the Money Confidence podcast, Sarah and Georgia talk about how to start saving by building up habits to reach your financial goals.

KEY TAKEAWAYS

Just looking at your bank account is so important. It's so common that people get to the last week of the month and have £50 left and they panic and wonder how they could have spent that much money. If you write it all down and divide it up into categories (for example, essential expenditure (mortgage and bills), and discretionary expenditure (clothes, takeaway food and alcohol) you'll probably get a shock. It all adds up slowly.

Work out your priorities, what you deem to be worth your time and money and what's not. How you spend your money is completely up to you, but look at what you're spending it on and see if it aligns to your needs and values. For example, if you're trying to live healthily, your gym membership may be important to you so you may want to look at cutting down how much you're spending on takeaways or alcohol.

See how much you can save without this affecting your standard of living. How much do you regularly have at the end of the month? Why not automate that amount (whether it's £5 or £50) to go into a savings account so you don't even think about it. Then, if you find you've got some more left over, save that amount too.

Give your money a purpose. What are you saving for? Have different pots, one for a holiday, one for clothes/going out/saving towards a house/new car/holiday, whatever you want to save up for.

BEST MOMENTS

‘Be brave and set a day and time to review your spending and stick to it. It's so easy to put it off. The sooner you start the sooner you can start saving and reach your goal.'

‘Slow and steady.'

‘If you move your money into a savings account, you're less likely to fritter it away on a coffee or something.'

‘Pay yourself first, as if you are your employer.'

‘Have someone who can hold you accountable, talk about your goals with a friend or family member. That way you'll be more likely to hit your goal.'

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

CONTACT METHOD

E: [email protected]

IG: https://www.instagram.com/sarah_talks_money/ 

LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/ 

Hosted on Acast. See acast.com/privacy for more information.

Welcome to the Money Confidence podcast where your hosts Sarah and Georgia aim to educate you about money in a fun, simple way, to increase your confidence with money and the decisions you make around money. On this episode Sarah and Georgia talk about the basics of saving, and how you can start building habits.

KEY TAKEAWAYS

There's not a lot of financial education in schools and as a result a lot of people are unsure about their finances and finances can be viewed as complicated and scary.

You could split your salary this way: 50% goes into your bills, 20% into savings and 30% is money to spend on yourself – seeing friends, family, buying presents for people, etc. Or, the envelope method is good for people who are disciplined: You take cash out, put it in an envelope and that's your spending money for the month, though it doesn't work for everyone. Some people put money in an envelope with their Christmas tree or Christmas decorations, so that the following year when they get their decorations back out, they have that extra cash to spend at a time which is usually quite expensive.

Automating a payment into your savings each month could be a good way to save because you don't even have to think about doing it. It's better to start low rather than high so you don't get into the habit of taking money back out of your savings if you find your bank account is low at the end of the month.

BEST MOMENTS

‘It's important to set up the habit, once that's done everything becomes so much easier and less complicated.'

‘I didn't have a savings goal, I just knew I wanted the money for a deposit on a house (£30,000-£40,000), and you just keep pushing yourself to save. Every time my salary increased, I didn't see that as a personal increase, I saw it as an increase in my savings.'

‘Don't label your savings as an “emergency reserve”, because you won't want to touch it. Instead have different pots for different purposes.'

‘The important thing with savings is to be flexible, put away more some months when you can to make up for other months when you can't or something comes up unexpectedly.'

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

CONTACT METHOD

E: [email protected]

IG: https://www.instagram.com/sarah_talks_money/ 

LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/ 

Hosted on Acast. See acast.com/privacy for more information.

PODCAST DESCRIPTION

Join us, Sarah and Georgia, as we help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. We talk all things money from investments, pensions and benefits to your mindset around money and steps we can take to improve your relationship with money. We aim to make it fun, educational and are with you every step of the way. Together, we've got this!

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way.

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

CONTACT METHOD

E: [email protected]

W: https://www.thegoodmoneycoach.com

IG: https://www.instagram.com/sarah_talks_money/ 

LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/ 

Hosted on Acast. See acast.com/privacy for more information.