Ask Gaynor – This week – affordable travel insurance for the elderly, how to let out a room in your house and pension advice for the middle aged.

Are you confused by an aspect of your money or are you seeking help with a more specific financial matter? Then please send your query to our Ask Gaynor section.

Each week we choose up to five questions for our panel of experts to answer – and publish the results on the FMWF site. Unfortunately we are unable to answer all the questions we receive or send personal replies.

To increase your chances of being chosen, please write your question carefully in simple, concise English and include any facts and figures that you feel will help us fully understand your situation.

Email: women@financialmail.co.uk 

Where can I find affordable travel insurance for my elderly mother?

I would love to take my elderly parents on holiday to the South of France for their 50th wedding anniversary, but my mother suffers from emphysema.  I am really struggling to find affordable travel insurance – quotes tend to be around the £400 for ten days mark.  Can you recommend a specialist insurer who might be able to provide a good policy that is a little cheaper? Kim, Surrey

Lesley Collins from Edinburgh based investment consultants Independent Women replied: ‘There are a number of insurers who do specialise in this, such as Pulse and World First; however, your best option would probably be to contact a general insurance adviser who would be able to obtain quotes from a number of insurers and help you select the most suitable provider.’

Who do I need to tell if I let out a room in my house?

I am really struggling to make ends meet financially and I am considering letting out my spare bedroom to help pay the mortgage.  I am 30 and work full time.  Do I need to notify my mortgage lender of this intention and is it simply a case of filling in a self-assessment form at the end of the tax year to declare this extra income? Ayisha, Maidenhead.

Lesley Collins from Edinburgh based investment consultants Independent Women replied: ‘You will only need to pay income tax on the income you receive from renting out your spare room if this exceeds £4,250 per annum.  If you do receive more than this, you will need to declare the income on a self assessment following the end of the tax year.  While you continue to occupy the property, you do not need to inform your lender of your intention to let out one of your rooms.

Am I saving enough for my old age?

I am 50 year old mother of three who gave up working 15 years ago to raise my family.  While my husband has a pension, I am seriously worried about my own.  I stopped paying into my personal pension when years ago and only have around £8,000 saved for my old age.  I am hoping to start working again soon but would only have around £50 per month spare to invest in a pension, is this enough or should I be worried? Jane, Cardiff.

Lesley Collins from Edinburgh based investment consultants Independent Women replied: ‘It’s important to bear in mind your goals and priorities when you are considering long term saving.  As well as your own retirement provision, you will also probably have built up some entitlement to the State Pension and you may want to contact The Pension Service for a forecast. 

‘Once you have a forecast, you should consider how much additional pension you feel that you will require to be comfortable in retirement, bearing in mind your husband’s provision. 

‘That should then be the deciding point to how much more you invest.  With current annuity rates, your current pension fund will provide an annual income of nearly £1,200 when you reach 65 (I have used a number of assumptions, including future investment growth, none of which are guaranteed so the actual income could be higher or lower than this).

‘Even after deciding how much income you need in retirement, this should be balanced with your other needs.  If you cannot afford more than £50 per month, the main thing is that you are doing what you can and this will make a difference even if you do subsequently need to reassess your retirement goals. 

Lesley Collins is CEO of Edinburgh investment consultants Independent Women

www.independentwomen.co.uk

Tags: Elderly Parents, Family Holiday Advice, family holidays, travel insurance

Posted by Gaynor Pengelly on Saturday, September 4th, 2010 at 7:32 am.

Filed under Ask an Expert, Personal Finance, Who Cares?, Tagged as: , Elderly Parents, Family Holiday Advice, family holidays, travel insurance.