Newspaper article The Journal (Newcastle, England)

Q&a

Newspaper article The Journal (Newcastle, England)

Q&a

Article excerpt

Your money queries are answered by PETER RUTHERFORD, senior director of Rutherford Wilkinson Ltd, chartered financial planners QI have money invested with my bank, but they have caused me problems by stopping a payment on a car loan. As it is the final payment it is quite large and has taken me over the overdraft limit that I have. Why have they done this when I have money with them? A From what you have told me the money you hold with the bank is held in investment funds through its trust company. This does not have a direct relationship with the clearing bank that deals with cheques and direct debits etc.

Clearly you are in something of an awkward position, but it is not insurmountable. You need to talk to the bank to allow a higher overdraft limit on a temporary basis and then arrange for funds to be transferred from the trust company investments into your current account to bring it back into balance.

You need to do this with some urgency so that any future standing orders or direct debits can be honoured.

QI am a pensioner and I saw a headline in one of the papers that suggests that I am going to suffer a 40% cut in my income. I can't afford to have any less than I do have now and am feeling rather nervous. What can I do to protect myself? AI think the article you are talking about appeared in one of the national broadsheets and it actually refers to people who are in what is known as income drawdown where they are taking their pension out of an invested fund rather than purchasing an annuity.

This has nothing to do with any State benefits.

However, with income drawdown the level of income that can be taken is reviewed every five years, but this has now been changed to every three years.

Over the last five year period not only have investment markets been difficult, but the amount of income that can be taken has also been reduced by new legislation that limits the withdrawal to 100% of a single person's annuity. Previously it was 120% of a single person's annuity. …

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