The new tax year is almost upon us, and the beginning of April is a great time for a bit of a financial spring clean; not just for your business, but also for your personal finances.
We’ve had a word with Crunch partners Paradigm Capital to find out what you should be looking out for to make sure your money is working as hard as possible.
1. Review your mortgage interest rate
If you find that you are on the Standard Variable Rate with your lender (4.25% to 5%) you may be able to save 1% to 2%, and that can mean a not-inconsiderable savings each month. Lenders are having to compete more for business now, and that means a better deal for the borrower – 3 and 5 year fixed rates are looking very competitive.
2. Review your pension
According to a recent survey almost half of the working population have never reviewed their pension plans, even though the majority of those contacted did say that they considered it important to know how their pension funds were invested. A failure to review your pension can leave you exposed to inappropriate investments and also prevent effective planning for your retirement income when you reach your 60s and 70s.
It can also be worth your while getting a State Pension Forecast.
3. If you are a 40% taxpayer
Ensure you are taking maximum advantage of your pension contributions to reduce how much you pay in tax.
4. Take advantage of your Individual Savings Account allowance
Particularly the Cash ISA, so that you can build up a cash cushion (and generally get a better rate of interest on your savings).
5. If you have an interest-only mortgage
Review it carefully to ensure that it will not become a problem when you reach the end of the mortgage term. It is wise to act early rather than ignore the problem until it is close upon you.
6. Review your insurance
If your circumstances have changed since you last took out life assurance you may need more, or less, cover to meet your needs.