The last date for issuing a notice of intended retirement date under the current regime is 5 April 2011 and the employer can set the retirement date at any time up to 12 months later, provided six to 12 months’ notice of intended retirement is given, the statutory retirement procedure is followed correctly and the employee has attained or will attain the age of 65 on or before 30 September 2011.

The amended draft regulations also now contain a longstop date of 5 January 2012 for an employee to exercise his right to request to work beyond retirement.  This enables an employee who is given 12 months’ notice of retirement on 5 April 2011 to exercise his right to request on the last day available (which is three months before the employer’s notice runs out).

A note from the Government states that an extension of employment of up to six months can still be agreed during the transitional period through the statutory retirement procedure.  Any purported retirement dismissal notified from 6 April 2011 onwards will, if not objectively justified, amount to unlawful age discrimination under section 13 of the Equality Act 2010.  It is also likely to constitute an unfair dismissal.

According to the group’s latest report, the average asking prices of properties on its books rose from £494,000 to £532,000 between August and November 2010.

Overall demand from buyers fell during the three months, however, as confidence waned and mortgage availability remained tight.

The number of properties for sale across the UK remained stable and above levels seen during the same period a year earlier. But it was the growing demand for high-calibre family homes that underpinned the market, fuelling an upward trend in asking prices.

Dominic Agace, Chief Executive of Winkworth, said: ‘It is the availability of finance which remains a key determinant of the level of activity in the housing market in 2011.

‘Until the banks feel comfortable to lend again, particularly at the bottom end of the market, volumes are likely to remain constrained.’

In the rental sector, demand continued to outstrip supply between August and November, with the number of properties to let sliding to a level more than 45 per cent lower than that of the same period in 2009.

2. Location – consider who your ideal tenants will be. To attract quality tenants you need quality locations.

3. Buy well – consider both price and content. Research prices in the area and look for comparables. Can white goods, flooring or furnishing be included in the purchase?

4. Make sure the numbers work – most wealth is created through capital appreciation, so buy a property that supports this type of growth. Ensure you include all costs in your financial projections (such as legal fees, stamp duty, service charges, ground rent and contingency to accommodate void periods between tenants). These costs are all too often ignored, leading to negative monthly cash flows.

5. Appoint the right advisers – a professional regulated adviser can secure the best deals free from fees and aligned to your investment strategy. Good letting agents will minimise void periods. Remember that not all solicitors are off-plan specialists.

6. Don’t expect to get rich quick – property investment should be approached with a long-term view. It is an asset class that in the medium to long term has outperformed all other asset classes and we would encourage people to build a sustainable, appropriately geared portfolio over a number of years.

7. Never ignore the basics of supply and demand – find out what is needed in your chosen area. The markets for one-bedroom flats and four-bedroom houses do not follow the same pattern.

8. Don’t be influenced by your emotions – you’re not living in your investment so decorate and furnish at an appropriate level of quality. Make sure you understand what quality is required and don’t be tempted to furnish cheaply if you want to retain quality tenants.

9. Be wary of incentives – particularly schemes or developments where you are under pressure to sign up quickly to secure the deal, and never buy an off-plan or new property without the guarantee of either a National House-Building Council (NHBC) or Zurich ten-year warranty.

10. Don’t pay over the odds – avoid paying finder’s fees, commissions or subscriptions, particularly prior to completion. If the investment proposition is a sound one, there should be no reason to pay up-front fees.

Research by Moneyfacts.co.uk shows choice falling to an all-time low two years ago, when only 1,097 residential mortgage products were available.

Since then, the number of home loans on offer has more than doubled, to 2,447, with borrowers holding a 20 per cent deposit seeing the number of deals available soar from 97 to 390.

Currently, the largest range of products is to be found in the 75 per cent loan-to-value (LTV) tier, where 851 mortgages are available, up from 422 two years ago.

At the same time, the number of loans at 60 per cent LTV has fallen from 261 to 187, the financial website reports.

However, Moneyfacts claims that despite the overall rise in mortgage availability, access remains restricted for many.

Spokesperson, Michelle Slade, explains: ‘Borrower affordability remains the key factor in lending decisions and lenders remain strict over which borrowers they will accept.’

Ms Slade also warns that rising rates and the implementation of the Financial Services Authority’s Mortgage Market Review are likely to restrict affordability calculations further.

Following this, the UK government looks set to endorse a controversial gender directive from the European Commission that will make it illegal for insurance companies to take into account differences in sex when setting insurance premiums, according to This is London.

What today’s ruling means

Today’s ruling confirms that to take gender into account as a risk factor in insurance contracts is incompatible with the fundamental rights protected in the Treaty on European Union. It will be illegal to do so in insurance contracts from 21 December 2012.

Insurance companies and pension funds have also hit out at the draft directive, claiming it could force women to pay higher car insurance, in defiance of statistical evidence which shows women are less likely to be involved in a car accident than men.

Men are also set to lose out on pension funds, whose lifespan is on average five years shorter than women’s, with annual income from a £100,000 retirement annuity likely to shrink by an average of £221 to £7,178.

The ECJ ruling also points out that the existing derogation was accepted provided there was an appropriate transition period for the introduction of unisex rates. The 2007 ruling did not specify a time limit and the Court have now ruled that the derogation from the general rule of unisex premiums and benefits will be invalid with effect from 21 December 2012.

If you would like to have more control over your own pension fund and be able to make investment decisions yourself with the option of our professional help, a SIPP could be the retirement planning solution to discuss with us.

What is a SIPP?
A SIPP is a personal pension wrapper that offers individuals more freedom of choice than conventional personal pensions, however they are more complex than conventional products and it is essential you seek expert professional advice.
They allow investors to choose their own investments or appoint an investment manager to look after the portfolio on their behalf.

Individuals have to appoint a trustee to oversee the operation of the SIPP, but having done that the individual can effectively run the pension fund on his or her own.
A fully fledged SIPP can accommodate a wide range of investments under its umbrella, including shares, bonds, cash, commercial property, hedge funds and private equity.

How much can I contribute to a SIPP?
Many SIPP providers will now permit you to set up a lump sum transfer contribution from another pension of as little as £5,000, and while most traditional pensions limit investment choice to a short list of funds, normally run by the pension company’s own fund managers, a SIPP enables you to follow a more diverse investment approach.

Most people under 75 are eligible to contribute as much as they earn to pensions, including a SIPP (effectively capped at £255,000 each tax year). For instance, if you earn £50,000 a year you can contribute up to £50,000 gross (£40,000 net) into all your pension plans combined in the 2010/11 tax year.

If your total annual income has reached £130,000 since April 2008, you may experience further restrictions on the amount you can contribute and obtain higher or additional rate tax relief.

The earnings on which you can base your contribution are known as Relevant UK Earnings. If you are employed, this would generally be your salary plus any taxable benefits. If you are self-employed, this would normally be the profit you make (after any adjustments) for UK tax purposes.

Even if you have no Relevant UK Earnings, you can still contribute up to £3,600 each year to pensions. Of this the government will pay £720 in tax relief, reducing the amount you pay to just £2,880.

Even if you have no Relevant UK Earnings, you can still contribute up to £3,600 each year to pensions. Of this the government will pay £720 in tax relief reducing the amount you pay to just £2,880.

Can I transfer my existing pension to a SIPP?
Before transferring to a SIPP it is important to check whether the benefits, such as your tax-free cash entitlement, are comparable with those offered by your existing pension. Make sure, too, that you are aware of any penalties you could be charged or any bonuses or guarantees you may lose.

If you have had an annual income of £130,000 or more since April 2007 and make regular contributions to a pension, changes announced in the 2009 Budget could affect you. Switching regular contributions to a new pension may mean future regular contributions are subject to a £20,000 limit.

A SIPP will typically accept most types of pension, including:

- Stakeholder Pension Plans
- Personal Pension Plans
- Retirement Annuity Contracts
- Other SIPPs
- Executive Pension Plans (EPPs)
- Free-Standing Additional Voluntary Contribution Plans (FSAVCs)
- Most Paid-Up Occupational Money Purchase Plans

Where can I invest my SIPP money?
You can typically choose from thousands of funds run by top managers as well as pick individual shares, bonds, gilts, unit trusts, investment trusts, exchange traded funds, cash and commercial property (but not private property). Also, you have more control over moving your money to another investment institution, rather than being tied if a fund under-performs.

With a SIPP you are free to invest in:

- Cash and Deposit accounts (in any currency providing they are with a UK deposit taker)
- Insurances company funds
- UK Gilts
- UK Shares (including shares listed on the Alternative Investment Market)
- US and European Shares (stocks and shares quoted on a Recognised Stock Exchange)
- Unquoted shares
- Bonds
- Permanent Interest Bearing Shares
- Commercial property
- Ground rents in respect of commercial property
- Unit trusts
- Open ended investment companies (OEIC)
- Investment trusts
- Traded endowment policies
- Warrants
- Futures and Options

Once invested in your pension the funds grow free of UK capital gains tax and income tax (tax deducted from dividends cannot be reclaimed).

Why would I use my SIPP to invest in commercial property?
Investing in commercial property may be a particularly useful facility for owners of small businesses, who can buy premises through their pension fund. There are tax advantages, including no capital gains tax to pay, in using the fund to buy commercial property.

If you own a business and decide to use the property assets as part of your retirement planning, you would pay rent directly into your own pension fund rather than to a third party, usually an insurance company.
Ordinarily, a business property will, assuming that its value increases, generate a tax liability for the shareholders or partners. Unless, that is, you sell the property to your SIPP. Then the business can pay rent to your pension fund, on which it pays no tax, and any future gain on the property will also be tax-free when it is sold.

What are the tax benefits of a SIPP?
There are significant tax benefits. The government contributes 20 per cent of every gross contribution you pay – meaning that a £1,000 investment in your SIPP costs you just £800. If you’re a higher or additional rate taxpayer, the tax benefits could be even greater. In the above example, higher rate (40 per cent) taxpayers could claim back as much as a further £200 via their tax return. Additional rate (50 per cent) taxpayers could claim back as much as a further £300.

When can I withdraw funds from my SIPP?
You can withdraw the funds from your SIPP between the ages of 55 and 75 and normally take up to 25 per cent of your fund as a tax-free lump sum. The remainder is then used to provide you with a taxable income.

If you die before you begin taking the benefits from your pension the funds will normally be passed to your spouse or other elected beneficiary free of Inheritance Tax. Other tax charges may apply depending on the circumstances.

What else do I need to know?
You cannot draw on a SIPP pension before age 55 and you should be mindful of the fact that you’ll need to spend time managing your investments. Where investment is made in commercial property, you may also have periods without rental income and, in some cases, the pension fund may need to sell on the property when the market is not at its strongest. Because there may be many transactions moving investments around, the administrative costs are higher than those of a normal pension fund.

As the festive season approaches, I would like to take this opportunity to thank you for your continued business.  It is business associates like you who make our jobs a pleasure and keep our business successful.