Pension Liberators Prey on UK People Feeling the Pinch

The UK financial crisis rumbles on. After the 'great recession' of 2008-2009 it was speculated that the financial stability of the UK would recover and technically the country would be out of the recession by the first quarter of 2012. 

But the economic recovery has failed to gain traction and the UK now finds itself in the longest financial downturn slump in more than a century.

The UK government has commenced savage cuts in public spending and average UK household debt is one of the worst and spiralling. In fact, nearly one in five people in the UK who plan to retire in 2013 have unpaid credit cards and mortgage debts. This equals an alarming number of middle-aged people within the UK population who are finding themselves desperately trying to keep the wolves from the door with limited financial weapons to choose from. But, there is one metaphorical pot of gold that many are turning to.

For those that have saved for their retirement into a personal or company pension, tapping into that pension pot can seem like an easy way out to clear that financial burden. But in reality, invading those pension savings before the age of 55 in the UK can have severe consequences in terms of financial comfort during retirement and can also land people in hot water with Her Majesty's Revenue and Customs (HMRC) - the UK taxman.

Unscrupulous, unregulated individuals and marketing companies have been conning hard-up pension savers with "Pension Liberation Schemes". These schemes are unauthorised by the Financial Services Authority (the regulatory body in the UK for all Financial Advisors and Services). These schemes let pension savers "borrow" from their pension, before the age of 55 - which is the age that retirees can draw their pension.

These advisors and companies contact their victims usually via text message, emails or cold calling. They offer a "too good to be true" offer. They fail to explain the consequences of their scheme, which can leave people in financial ruin when they actually reach retirement. They take control of your pension fund, put it into a corporate bond and lend half of its value back to the victim...which must be repaid along with interest before retirement. They also charge hefty fees of between 10 to 50 percent of the fund value. HMRC will also require the victim to pay tax...but rarely do these scam advisors tell the individual this. This leaves the victim with a significant tax bill as well as penalty charges if they fail to disclose it to HMRC from the outset.

UK authorities are desperately trying to tackle pension liberation fraud, as are many pension providers - in the form of suspending transfers into schemes of which they are suspicious. However there are many people still being caught out.

Pension unlocking however is a perfectly acceptable way to utilise cash in a pension. From the age of 55, UK pension savers can take a tax-free cash lump sum from their pension of up to 25 percent of the total fund value which can be used to clear expensive debts. The remaining pension can then be either used to purchase an annuity, or one of a handful of other options designed to provide an income in retirement such as an income drawdown pension.

Above all it is important that people seek professional advice from regulated experts that specialise in post-retirement income. Annuity-Quotes.co.uk have a wealth of experience in UK annuities and pension transfers. Their website offers a wealth of information including the different options available and an annuity rates calculator. A UK regulated company will be able to provide their FSA number which can be verified.

Regardless of the options, a decision to raid pension savings should never be taken lightly and in reality should really be used as a last resort where debts are crippling and the economic benefit of paying them off with a tax free cash lump sum far outweighs the benefits of leaving the pension pot to grow until the saver stops working. In the UK, the state pension age is between 61 and 68, however individuals can continue working past UK state pension age if they wish. Even the perfectly legal practice of pension unlocking in the UK, will inevitably leave the individual with significantly less income in retirement than if the pension fund remained untouched.

Some questions that should start alarm bells ringing with any individual who has been approached by one of these pension liberation schemes, are as follows:

• Are you a UK citizen aged under 55? 
• Were you contacted by an unsolicited, email, text or cold call? 
• Is the advisor or company regulated in the UK by the FSA and can you verify this? 
• Have you recently left the UK Armed Forces, work in the UK Public Sector or have you recently been declared bankrupt? 
• Is this scheme registered or newly registered with HM Revenue and Customs? 
• Has the advisor or company mentioned "legal loophole"? 
• Are you being pressured into transferring your pension quickly? 

In December 2011, the UK High Court ruled that schemes allowing savers to access their saved pension funds before the age of 55 are illegal. There are extenuating circumstances where individuals may be allowed to access before the 55 year old threshold and this is usually in the case of a diagnosed terminal illness.

Author Bio

Lee Rawding is an Independent Financial Advisor in the UK who specialises in post-retirement income options and pension annuities.

How to Manage Your Financial Payroll With Accounting Software

 (Photo credit: Wikipedia)

Processing payroll is a primary duty of different sizes as well as kinds of business houses. However, all entrepreneurs will uniformly agree that this aspect of managing a business is extremely time consuming. For collating the information of the different employees, applying the tax to be deducted and for complying by the new legislations a lot of time is wasted. Even if you have a special in house team working for the same purpose, they spend a lot of time in performing this particular task. To aid the finance team of your organization, you can take the help of accounting software. These softwares are tailor made to meet with the payroll processing needs of the clients and increase the efficiency of the accounts team.

If you are planning to install accounting software in your organization, you are going to come across many options on the cyber world. However, opting for the one suiting your need is the most vital challenge.

Here are some ways discussed by Mitchell Charlesworth whereby you will be able to manage your payroll processing efficiently with the aid of accounting software:

One Stop Solution

The payroll accounting softwares are the one stop solution for handling different aspects of payroll processing. Right from accurately determining the monthly pay of every employee to managing the taxes applied on their scale of salary, everything is handled by the software automatically and with precision. However, the employees need to incorporate the right facts and figures in the software, for it to work properly.

Expert in Multitasking

The payroll accounting softwares are expert in multitasking. If different employees in your organization are paid in different methods like some are paid in monthly basis, while others are paid in hourly basis or some are hired on contract, then the salaries are to be calculated using different methods. Moreover, the rate of tax applied is also different. The payroll accounting software can handle the multiple payment rates for different employees with efficiency. Moreover, if your employees are working in different states, the payroll accounting software can handle their portfolios with ease as well.

Easier to Apply Different Kinds of Benefits and Taxes

The accounting softwares are developed in such a way so that it can automatically calculate the tax rate applicable and bonuses and withholdings applicable to different employees accurately. Thus there would not be any chance of grievances among the employees and they will be happily working for growth and profit of the company.

Easier to Track Records

Payroll accounting softwares ensure the use of least paper works and all the important data are stored in the platform itself. Moreover, professionals have the option of storing hard and soft copies of the different payroll transactions and the income and expenditure of the company. Therefore, it is much easier to track different monthly and annual records for preparing valuable market reports and innovating new policies that will be crucial for the growth of the organization. Thus by using this advanced technology, handling different aspects of the business become much easier and faster.

Latest Updates

The payroll accounting softwares are automatically updated by the organizations that develop it. Therefore, the latest legislations and tax rates are integrated in the software at the earliest so that the organizations using it can comply with the latest guidelines set by the IRS. So there will be no instance of fines or litigation because of failure of the professionals who were not aware of the latest rules and laws.

However, to get the best result it is extremely important to choose the right software meeting your need. There are different softwares meeting up with the needs of different size of organization. Choose the one that has the facilities meeting your company’s and employees need. Presence of extra features might make it a bit difficult for the users to make the best use of the payroll accounting software. So do some research and communicate with accounts teams to understand the need of the company and thereafter invest in an ideal one.

Get Help in a Financial Crisis with a Car Title Loan

Car title loans are well recognized as a source of help when we find themselves in financial distress. Though they may not be the best option, observing certain precautions can make them a good option. Sometimes they are the only option available to an individual. 

Why Car Title Loans Are a Good Option 

Car title loans San Diego locations make a good option for a number of reasons. These include: 

• Ease of obtaining 
• No credit check required 
• Quick to get 
• May be larger loans 

These loans are easy to get. You just have to fill out a simple, short application. There is no credit check, and you get your money in just a few minutes. This means if you have a financial emergency, you can get help with no waiting. These loans are often larger that could be obtained otherwise, since your car will be used as collateral. 

Some Precautions to Note 

Though car title loans San Diego locations are convenient and easy to obtain, there are a few precautions of which you should be aware. One precaution is to make sure the business you are considering is licensed and follows applicable rule and regulations. You don’t want to have to pay more interest that is legally allowed, for example. 

You should also be careful to not borrow more than you can reasonably pay back, as your car is at stake. If you can’t pay the loan back according to agreement, you will lose your vehicle. This can be devastating and end up costing you more financially than you are willing to risk. 

Another precaution involves recognizing your money management skills. If you are always at risk financially, you may have difficulty managing your money. This means you might not be able to manage well enough to be able to pay off this additional loan. Also, if you income is too low, you may not be able to repay. In those cases, you should avoid the additional financial burden. 

Using Car Title Loans Wisely 

It is important to use caution in using car title loans San Diego areas to alleviate financial troubles. You should be aware of the amount of money you have to repay. Also, be aware of any difficulties that might keep you from repaying, such as having no budget, too low of an income, and potential further emergencies that an prevent following the terms of the loan. 

Understand that car title loans are designed as a relief for a temporary financial emergency. They are not meant to be a major and regular source of income. The cost of using them just adds an additional burden to an already stressed financial situation. They do help when needed, but should be used cautiously. 

When Car Title Loans Might Not Be Advisable 

There are times when it might not be a good idea to rely on a car title. Though car title loans San Diego areas can be a good option when you have a financial emergency, there are a few reasons to be careful about using them. 

One precaution is to be careful about risking your vehicle if you depend on it for your livelihood. There is always the chance that you will not be able to pay the loan back and will lose ownership of your car, since you offer the title as collateral. 

Author Bio 
Dean Wilson writes about personal financial issues. She writes about car title loans San Diego in particular. Her tips help consumers make the best decisions about personal financial issues. She is knowledgeable about many areas of financial health for the consumer and writes frequently about them.

Is the Personal Elevator Truly Useful?

While some say that personal elevators are just an accessory, others have come to the conclusion that having one in a house with more than one floor can become quite useful. Although at first you would be inclined to think that people use elevators because they are lazy, if you take the time to analyze the situation a little deeper, you will see that there are actually some truly valid reasons to owning a personal lift. Let's take a look at some of them. 

Create an Accessible Home

Although we do not encourage a sedentary lifestyle, when it comes to homes, personal lifts can actually be very useful. It is no longer a matter of commodity, but rather a problem of conserving energy. For example, if you own a two or three floors home you are likely to place the bedrooms on the superior floors and the garage or service rooms on the inferior ones. Although stairs are faster and healthier, in time they can have brutal effects on the knees. Just imagine yourself rushing up and down the stairs with your hands full of laundry or furniture. In a few years your joints will be screaming arthritis. Furthermore, your house will undoubtedly be equipped with a flight of stairs, so for those who think that they will become less active because of the elevator, we remind you that it is merely a matter of willpower. You don't have to use the lift if you don't need it, but it's nice to know that it is there in case you have heavy lifting to do.

Care for People with Disabilities

Growing old is something none of us are looking forward to, but it is something that we also can't avoid. A personal lift can become an invaluable element in your house, especially if you are passed your prime. Moreover, if you are living with your elderly family members, an elevator can prove to be of great comfort. Elevators are also one of the safest forms of transportation. Personal elevators will enable them to continue living in your house, and for most this is a dream come true. Even if you might think that they could easily live on only one floor, having access to the entire house can be quite reassuring for them.

It is not only the elderly that you should think of. First of all, the needs of people with disabilities are usually neglected. Imagine that you are having a disabled friend over, and he won't be able to move freely between first and second floor because he is stuck in a wheelchair. Secondly, there are a great number of locomotive apparatus diseases like osteochondrosis, joint diseases or sciatic pains which will make climbing twenty stairs feel like conquering the Everest.

Increase the Value of Your Home

In the past few years people have become more and more interested in the overall appearance of their home. And it seems a natural concern, because the house that we live in says a lot about our personality. You don't have to spend a lot of money in order to create a nice looking place of your own. In this regard, personal elevators can be really useful. First of all they occupy less space than the stairs, and they can become a valuable addition to your household. For example, Manwell Dumbwaiters offers customized designs, and this means you will have the perfect fit for your home. Not only this, but also customized elevators can be easily used by people with disabilities or health problems like the ones mentioned above. They are not only functionally justified, but can also be seen as an enhancement for interior design. For example, if you want to highlight it you can add glass walls and create an interesting view of the inside. On the other hand, you can conceal it behind foldable doors.

Maintenance Costs

Before you decide whether or not you want to install a residential elevator, you must consider all aspects and this also includes the issue of regular maintenance, more precisely, maintenance costs. This is an arguable subject, because some consider that the overall costs are very high. However, there are certain models which are maintenance free. Specialists say that a typical residential lift can last 20 years, given the proper care. We believe that you can create the shaft also as a preventive measure, but instead of installing an elevator in it from the beginning you can use it as a closet. As soon as you feel the need to use one – should you be growing old or experiencing health problems - you can easily install it, without making major adjustments to your home plans. This way you will save the money that would have been spent on maintenance.

It seems that elevators for personal use aren't as useless as some might have thought. Besides the obvious reasons stated above, there are also additional aspects which make it an inspired choice in any household.

Personal Capital APP Review

This post brought to you by Personal Capital. All opinions are 100% mine.


In today's world it is more important than ever to keep track of our financial life. What we save, spend, and invest in is critcal to our success with money. Keeping track of these things has become more difficult with the increasing complexity of our lives. Keeping track of income, planning with a budget, and making sure our investments are on track can take up a lot of time.

Sometimes we need to have this information at our finger tips. Luckily, we have a multitude of mobile computing devices that can make this simple. With Personal Capital's mobile app we can have all this important information close by.

The Personal Capital App, is available for the iPad, iPhone and Android; it allows you to see the overall picture of your finances. You can view all your financial accounts in one place. Your savings and checking account, mutual funds and stocks all displayed in an organized, easy to view way.

Personal Capital Benefits from Personal Capital on Vimeo.

The Personal Capital app is free to download and use. Plus has all these feature:

1. Encompasses all your finances. Personal Capital gives you access to all your finances in one location.
2. Gives you a broad overview of your investment portfolio. Many investors that have accounts with multiple brokers can view them all in one easy to view place.
3. Personal Capital offers a great way to drill down into asset allocation and tax optimization.
4. Check your investment fees by using the mutual fund fee calculator.
5. Stay on top of your 401k with the free organizer.

I always found that the major complaint from people who want to keep their finances organized is the desktop and mobile apps we have today are just to hard to use. I have found that the Personal Capital app is very simple to use and this is the one thing that will keep me using it. I think this app has made looking after your finances no longer a chore.

I recommend you give the Personal Capital app a try. You can download it to your iPhone, iPad, and like me even your Android device.

If you want track your income and spending plus finally feel sure your doing all you can to be successful with your financial life. Use the Personal Capital app.

The Necessity of Individual Retirement Accounts

retirement (Photo credit: 401(K) 2013)

Even if you have quite a long time before you retire, it's never too early to start thinking about a plan. When that day comes, you want to make sure you have enough money saved up and that you are able to live comfortably. What are the benefits if individual retirement accounts, which are sometimes referred to as IRAs?

An Individual Plan

Not everyone has the same needs, and you want to ensure that your personal ones are met. By developing an IRA, you can work to craft a plan that makes sense for you and addresses your personal and financial needs. When you take the time to sit down with a certified financial planner and come up with an individual retirement account, you are being smart about your future. Specifically, you will be able to work toward attaining a specific amount of money to have reserved for you when you retire. In society at large, these accounts allow people to develop a greater sense of personal responsibility.

Personal Responsibility

Let's explore this concept of personal responsibility a little bit more. It is clear from the state of the economy that many people and government entities are not great with money. Therefore, it's also smart to take some steps to amplify your knowledge and to learn more about where your money goes and why it's important. Taking the step to have an IRA, regardless of the specific type, means that you are putting personal stake into your financial affairs and working toward a plan that works for you.

Tax Options

You likely want to know about taxes on these accounts, and CNN Money's article, "Retirement: IRA Investment Advantages" discusses them in detail. The article writes, "There are two types: a traditional IRA offers tax-deferred growth, meaning you pay taxes on your investment gains only when you make withdrawals in retirement, and, if you qualify, your contributions may be deductible...A Roth IRA, by contrast, doesn't allow for deductible contributions but offers tax-free growth, meaning you owe no tax when you make withdrawals in retirement." You don't need to be told that both of these situations are rather desirable.

Withdrawing Money

The end of the article notes, "Further, if you need the money before retirement, there are more opportunities for penalty-free withdrawals." Ultimately, the goal here is to save up as much money as possible before retirement so that you do not have to deal with financial burdens later in life. However, sometimes situations do arise, and you just need to have the cash available now. When that happens, you can turn to your IRA and take out some of the money to help get you through. Since it's your personal account, you do have the freedom to do that.

Working toward an IRA is really a smart idea. Whether you have just entered into the workforce or you are thinking about retiring soon, it's smart to start making a plan that can be really beneficial to you and your financial situation.

Author Jason Harter is a retired accountant who can happily say that he has all of his retirement accounts in proper order. He obtained his Online Bachelor's in Accounting Degree.