It has been claimed that A-Day is set to be the biggest shake-up that pensions in the UK have experienced in over 60 years but it has also left many wondering what A-Day is and what pension advice they will need to prepare for it. Below we take a closer look at A-Day and what it might mean for the average worker.
What is A-Day?
A-Day refers to the changes to the UK pensions which is set to occur in April this year.
What is the aim of A-Day?
The main idea behind A-Day is to ?increase choice and flexibility for all?. The government's broad aim in the introduction of the new pension rules in April 2006 is to simplify the existing pension rules. The rules will affect all pensions including personal and work pensions. In a nutshell, A-Day aims to take the pressure off agencies that need to give pension advice by actually simplifying the whole pension system.
What pension changes will occur with A-Day?
?The Standardisation of Tax Free Cash - The tax-free cash sum entitlement currently differs between Pension Schemes. Furthermore, the entitlement in the Occupational Pension Schemes can actually be less than 25%. The simplified pension rules will ensure that Tax Free Cash allowance of all Pension Schemes is set at 25% of the fund value as standard. If you have an occupational pension where the tax-free cash entitlement is higher than 25% then you will need to seek pension advice from an experienced Independent Financial Adviser, who will be able to help you protect this right.
?Alternatively Secured Pension - An Alternatively Secured Pension will also be introduced which will mean that after the age of 75 withdrawal of income will be known as "Alternatively Secured Pension? and will be similar to income drawdown. This allows you to draw an income, up to a maximum of 70% of the highest single-life annuity, each year from your pension fund.
?Greater Flexibility in Investment - There will also be greater flexibility in investment including the provision enabling you to hold residential property within your pension fund. You may also be able to sell and buy these properties between individuals.
?Contributions - The amount you can currently contribute into a pension scheme is capped but A-Day is set to change all this. As of April this year, there will be no maximum amount of pension saving.
Who will be affected by these pension changes?
Actually nearly everybody who will work or has worked will be affected by these pension simplification rules. It will impact on any individual who already has a pension in place or any individual who will start a pension plan at any point in the future.
Where is the best place to get pension advice regarding A-Day?
It is always highly advisable to discuss any pension advice you may require with a professionally trained financial adviser. It is also worth noting that you should always check that any financial adviser you speak to is registered with the FSA and is thereby duty bound to offer you unbiased advice.
Advice Of The Day
You might find, if you have your day care center business plan in order, that a church or labour union will sponsor your business, or even offer financial backing. Arranging some sort of partnership or sponsorship agreement with an established local organization will solve a lot of problems for you, not only in the area of space but in assistance with start-up costs and city-father approval.
Incidentally, a day care center is perhaps the ideal business for absentee ownership or a group of professional investors. Keep this fact in mind as you organize your plan and seek financing.
Generally, a 'shoestring entrepreneur' in this business will do very well to locate in a vacant convenience store, or even a vacant grocery store in a larger shopping center. The zoning will be in your favour, plus you'll have adequate parking space, and less expense in partitioning or remodelling the building to suit your needs.
Ideally, your day care center should be located on a main thoroughfare, with the building set back from the street. You should be on the right hand side of the street as the traffic heads towards the major business or industrial areas of your community. In larger metropolitan areas, this would be on the city-side of the "bedroom" communities. In smaller communities, you can locate just about anywhere except in the downtown area.
If at all possible, you should plan your facility similar to a hospital or motel entrance. This would be a driveway from the street to your door, usually under a covered drive-thru, with the driveway continuing back out to the street. Your long-term parking space would then be located in the center of the 'U' or between the driveway and the street. You want to strive for the convenience for the parent in being able to drive right up to your door. She can drop off the child with only a few steps into your facility and easy access back onto the main thoroughfare.
Depending on your city sign ordinances and your finances, go all out with your sign. Advertise the name of your day care center, the hours you're open, whether you accept drop-ins, overnighters, or weekenders, and of course, your phone number.
The sign makers and advertising people may strongly advise you against so much wording on your sign, but in this instance, do not listen to them. Your sign should state all essential information, and serve to convince passers-by that you can handle their child-care problems whenever the need arises.
If you initially locate in, or through the sponsorship of a church or labour union, these people can assist you tremendously by including a mention of your services in their membership bulletins, and by passing out circulars or flyers.
You'll need to decide on your regular day care hours. Generally, these are from 6 a.m. through 6 p.m. You'll also need to decide whether you want to offer breakfast for the children. If so, you'll have to plan for a cook and food supplies for morning meals. We'll discuss kitchen facilities and kitchen help later, but the first decision must be if you will include breakfast. You'll already be set up with kitchen facilities and a cook because you will be serving a noon meal. If you do decide to offer breakfast for those parents not wanting to feed their children at home, you'll be able to add $8 to $12 per week to their billing. By buying your food supplies in bulk, you'll probably be able to realize some savings in overall food costs.
You can begin small, and expand in stages with your profits. However, you must draw up a long-range plan detailing exactly what you intend to do, and each milestone you'll have to pass before proceeding to your next goal. In this way, you can succeed and attain not only the ultimate business, but also the kind of profits planned at the start.
The basic and bottom line secret to success with your own day care center will be your ability to hold your costs in line while achieving maximum capacity enrolment. You've got the plan and my best wishes for success!
Both Elizabeth Grant & are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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