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No CI cover could damage pension pot, says L&G

Legal & General is urging people to consider the impact that having a critical illness could have on their ability to save into their pension.

The life and pensions company estimates that someone aged 30 would need to save £292 per month in order to live comfortably in retirement.

However, if the same person were to delay paying into a pension for 10 years as a result of a critical illness and drop in income, they would have to save £635 a month to achieve an equivalent pension.

L&G protection product marketing director Bonnie Burns says the proceeds from a CI policy could be used to make regular payments into a pension plan. For a 30 year old at £292 gross a month, an average CI payout of £60,000 would provide two years worth of monthly pension savings and still leave over £50,000.

He says: “It’s well documented that many people do not save enough for their retirement. However, if you are unfortunate enough to suffer a critical illness then you may never get your pension plan back on track.

“The earlier in your career you take out a policy, the cheaper it is and you can protect your most important years in terms of savings capacity.”


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FSAS director Mackay to retire

Alistair Mackay, director of Lighthouse Group subsidiary Financial Services Advice and Support is to retire at the end of the year. Executive director Andrew Snowball will work alongside fellow co-founder Alan Pinkerton to form the management team.

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In recent times, we have witnessed high-profile celebrities and sports stars make the headlines for potential tax liabilities on ‘failed’ tax avoidance schemes. We are now used to reading about these individuals, but what about those who advise on such schemes? Read more


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