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DEAR TRICIA.

Byline: Edited by TRICIA PHILLIPS

Need some practical financial advice? YOUR MONEY Editor Tricia Phillips and her team can help

Q My partner and I are 63 and 65 and have been together many years. On our deaths there's likely to be an inheritance tax liability mainly because of our joint home value. If I go first, will my partner get my main residence relief?

A Although main residence relief will be transferable it will be to spouse or civil partners but not unmarried couples, I'm afraid.

Q I am 45 with a small personal pension and think I might withdraw it all when I'm 55. But I've heard that the minimum age for taking pensions is to increase, so will I still be able to do so?

A You will be 55 in 2025 so you should be OK. From 2028, personal pensions will only be accessible from an individual's state pension age less 10 years. So if state pension age is 67, then personal pension will be first available at 57.

Q I'm having a few financial problems and often thought about declaring myself bankrupt. However, I've built up quite a large pension fund and heard that the liquidators can take it. Is this true?

A If your pension fund is uncrystallised and you haven't taken any benefits, it is unlikely that an income payment would be granted. But if your funds are in drawdown then it is possible that an income payment could be granted to the liquidators. Seek legal advice.

Q I have six years till my state pension and I'd like to reduce hours at work until I retire. I have a personal pension pot and want to generate a guaranteed fixed income to cover earnings lost until I get my state pension. When I receive my state pension, I will need flexibility again. What can you suggest?

A A fixed-term annuity could be suitable as it will provide you with the guaranteed income. It would also provide a guaranteed maturity value at the end of the term in six years for your flexible income requirements. And if anything should happen to you within the term it could provide an income or lump sum to your family.

Q I worked in the NHS for 33 years and my salary was about PS45,000 when I left. I now work privately in the health sector and hope to continue to save for my retirement. What is the calculation to work out how much lifetime allowance I have used as I don't want to exceed the limit.

A Step 1: Divide 33 by 80 or 60ths (depending on scheme) and then multiply this by your final salary when leaving to give your pension per annum. Step 2: Multiply your pension per annum by 20. Step 3: Include your tax-free cash, which is your pension per annum multiplied by 3, and add this to step 2. You get a total of PS426,937.50 (based on an 80ths scheme) plus any other pension funds you have. The LTA limit is PS1.25m.

Thanks to our independent financial advisers - The Money Map (0800 848 8250) and PMI's John Stewart (0800 018 3751). For independent advice send an SAE to Your Money Independent Advice Bureau, Daily Mirror, One Canada Square, Canary Wharf, London, E14 5AP. Please give your age, income, family circumstances and details of financial products you want advice on, along with your phone number.

Or email money@mirror.co.uk marked "advice".

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Title Annotation:Features
Publication:The Mirror (London, England)
Date:Oct 28, 2015
Words:584
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