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How it works:
- We will call you back to find out more about your aims and requirements
- We will arrange a meeting with one of our team at a convenient time, either over the phone, on video, at your home or workplace, or at one of our offices
- You will be able to ask any questions you have and find out more about managing your wealth with Saltus
- Your review will be at our cost and there is no obligation to work with us afterwards
Who we work with:
- Individuals with £250,000 or more in investable assets
- High earners with £100,000 or more to invest and able to reach £250,000 within five years
A significant number of our clients have one, particularly high earner in the family. The majority believe that because they have ‘death in service’ insurance through their workplace, not much financial disruption would occur if something happened to them. The reality is somewhat different…
Why a workplace death in service insurance may not be enough
Yes, death in service, or life insurance, might pay out a lump sum to cover the mortgage but what about everything else? What about continuing to pay for the school fees; household bills; holidays; the car and general spending money?
In addition, when a family is particularly young, it’s fairly common that one of the couple has had to step back entirely from work for some time. So, if their partner were to die, replacing all their income immediately could be an almost impossible task. Even if your death in service is enough to pay down the mortgage, it still presents a massive potential protection gap.
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Defined benefit pension schemes and annuities
I also regularly come across couples that are about to or have recently retired. Usually, one of the couple is one of the lucky few with a substantial level of guaranteed income from an old defined benefit pension scheme or annuity. Now, these schemes can be fantastic, however, in exchange for this guaranteed income, you typically lose out on flexible death benefits.
The unpleasant truth with these setups is that you and the pension provider are both gambling on how long you may live. If the individual was to die earlier than expected, and their partner was reliant on that existing level of income for their retirement plans, it could cause some considerable problems. The scheme may continue to pay income out, in full, for a very short period but it more commonly reduces by 50% and often just stops entirely.
Family income benefit
If you’re one of the aforementioned individuals, what can you do to make sure it doesn’t go horribly wrong?
Well, family income benefit is a fantastic option and can be a great addition to term cover. It’s essentially an insurance policy that will pay out guaranteed income if the person insured were to die. Implemented properly and it can mean that you’d see very little financial disruption if your high earning spouse were to pass away. It will ensure that their regular income is directly replaced by the policy payments. That money that arrives in your account every month to pay the school fees; bills; subscriptions; holidays; and car will just keep on coming. And, as a ‘brucy bonus’, most policies will make sure the income increases with inflation, to reflect any pay rises your partner may have received.
You can obtain cover for terms of anywhere between three and seventy years in length, and some providers will maintain the policy right up until someone’s ninetieth birthday. The best thing of all is that it’s one of the most affordable types of insurance out there, so generally, it’s a great option if it’s right for your personal circumstance.
So, if you have a high earner in your family or are going to be reliant on some guaranteed income in retirement, make sure you protect it. If you don’t, and something awful happened, all your financial objectives could be knocked off course. So, do check out family income benefit and take some advice.
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Saltus Financial Planning Ltd is authorised and regulated by the financial conduct authority. Information is correct to the best of our understanding as at the date of publication. Nothing within this content is intended as, or can be relied upon, as financial advice. Capital is at risk. You may get back less than you invested.
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Financial planning can help you reach your goals in life, whether you want to determine when you can retire comfortably, bring organisation to your financial world or pass on your wealth effectively.
Pensions and retirement planning
Deciding when to retire is a challenging decision and can feel like a leap of faith. At Saltus, we gather information on all of your existing assets and then use our technology and expertise to show you exactly how to achieve the retirement you’re after.
Reducing your tax burden
How to structure your wealth and access income should be approached in a sophisticated way. A detailed financial plan may use pensions, ISAs, general investment accounts, offshore bonds and other tax wrappers to ensure you can draw your money in a tax-efficient manner.
Consolidating your wealth
Holding multiple investment accounts and pensions can mean they’re hard to keep track of and administer. We’ll help you overcome this by consolidating your accounts into a single plan so that you can understand your financial position with ease.
Protecting you and your assets
We protect our cars and houses without much thought yet you might be the most valuable asset in your family. Whatever your situation, we can provide advice to ensure you have the right level of insurance in place to keep your finances protected.
Passing on your wealth
Estate planning is more important than just having a Will. We’ll work closely with you to understand how estate planning, which has emotional as well as financial consequences, can impact your overall financial plan.
Significant life events
Significant life events can present great opportunities but also considerable challenges. Whether you are going through a business sale, divorce or are receiving a lump sum, we’ll help build a financial plan to meet your changing lifestyle.