The Meaningful Money Personal Finance Podcast

Listener Questions Episode 28

Oct 8, 2025
This week tackles a variety of intriguing financial questions. Learn how to frame income protection targets beyond just basic needs. Discover the ins and outs of pension recycling and its rules for couples. Unravel the complexities of accessing local government pensions at age 55 amidst rising minimum age regulations. Plus, expert advice on avoiding the daunting 60% tax trap for high earners. Finally, find out when it's prudent to tap into Stocks & Shares ISAs for home projects.
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ADVICE

Design Income Protection Around Real Loss

  • Match income protection to your actual loss of income and employer sick pay before choosing cover details.
  • Use emergency savings and defer period choices to reduce premium costs and tailor cover to family needs.
ANECDOTE

Long-Term Illness Can End Careers

  • Roger described his partner Jen's chronic illness and how a bank paid sick cover then eventually pensioned her off.
  • That real-life example showed how long-term illness can permanently remove earning ability despite a previously safe job.
INSIGHT

Policies Intentionally Cap Replacement

  • Income protection typically insures around 65–70% of gross earnings to encourage return-to-work and avoid over-insurance.
  • Such benefits are generally tax-free to the claimant and often stop tax/NIC, so net replacement can be stronger than it looks.
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