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Your cash questions.

Byline: MONEY with Melanie Wright

QI AM looking at taking my pension benefits via an annuity and don't need my tax-free cash lump sum. Can I generate more taxefficient income than I would with buying a conventional annuity with this money? ATHERE are many options, including ISAs and 5 per cent tax deferred withdrawals from investment bonds. You could also buy a purchased life annuity, where the majority of the income is classed as return of capital. That way you would pay less income tax than if the same amount was invested in a conventional annuity.

QI AM retiring in 2013 and I have just found out about the gender directive changes. I am male. How will this now affect my income? ATHE post-directive changes are not as detrimental as was first thought, with annuity rate reductions for males in the region of approximately 5 per cent a year. If you exercise your open market option and shop around you might even get a better rate.

QI'VE read about new RDR financial advice rules. What happens if my financial adviser has not passed all his exams by JANUARY 1? AUNFORTUNATELY it is likely they will lose their licence to give investment and pension advice. More importantly they will be unable to review existing clients' business until they have the right qualifications.

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Title Annotation:Business
Publication:Sunday Mirror (London, England)
Date:Dec 30, 2012
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