Mr Yearsley reiterates the importance of having adequate finance for her new business as well as a business plan

Mr Yearsley reiterates the importance of having adequate finance for her new business, as well as a business plan. These will provide a lump sum, and income if she suffers a serious illness. She may also need public liability insurance to protect against compensation from accidents to the public from her business.As Ms Kennedy is single with no dependents she does not need life insurance, according to Mr Yearsley. A critical illness policy or permanent health insurance policy would benefit her. Skandia offers critical illness cover at £73.17 per month for £100,000 cover for 24 years.NEW CAREERMr Metcalfrecommends she builds up capital to minimise borrowing to fund her new business. If she does not have the details she should contact the scheme and ask for a statement of benefits. It is important that she notifies the trustees each time she moves so that they will know how to contact her when the benefits are payable.Mr Yearsley says final salary schemes are a luxury at the moment, since many are closed to new members.

If she changes career, she would not lose that pension, but she would have to make other provisions.INSURANCE Ms Starkey says Ms Kennedy will have life cover of twice annual salary under the university superannuation scheme. She would only need additional cover if she wishes to provide an additional amount in the event of her death.Ms Kennedy should consider critical illness insurance and income protection insurance when she starts her new venture, says Mr Metcalf. When she leaves she will get a statement telling her how much her pension is to date, and this will increase until retirement.Ms Kennedy worked in social services for six years, so Ms Starkey says she may have retained benefits within the Local Authority Pension Scheme. Based on her outgoings of £1,000 a month, Ms Kennedy ought to look to keep £3,000 in an easily accessible place. If she is unable to save money now to build this fund, then some of the money from her savings plan should be set aside when it matures.PENSIONMr Metcalf recommends Ms Kennedy remains a member of the USS pension as long as possible, as this means her employer will be making contributions for her as well.

This means equity-based investments would not be suitable and she should ensure that the capital is earning a decent rate of interest. Birmingham Midshires is offering 4.55 per cent, which includes an introductory bonus of 0.85 per cent for the first year.Mr Rayner suggests Ms Kennedy have at least three months’ expenditure in an instant access savings account in case of emergency. Intelligent Finance is offering 4.6 per cent a year gross.Ms Starkey says Ms Kennedy may need access to the capital from the sale of her house in the short term, especially if she moves back to Burnley. She has £4,000 in a savings account and a savings plan due to mature in 2006. She is also a member of the university superannuation pension scheme.We put her case to Ken Rayner of The MarketPlace, Ben Yearsley of Hargreaves Lansdown, Vivienne Starkey of Equal Partners and Mike Metcalf of the Metcalf IFA consultancy.JANE KENNEDY, 41, UNIVERSITY LECTURERStatus: SingleOccupation: Sociology lecturer at Liverpool UniversityEducation: BA in politics; MA in Latin American studies; CQSW qualificationSalary: £33,679 grossDebts: NoneSavings: £4,000; savings plan due to mature 2006Pension: University superannuation schemeProperty: RentingOutgoings: (per month) £1,000Insurance: Life insurance with savings planSAVINGSMr Metcalf advises Ms Kennedy to move the £4,000 in her savings account into an ISA, as this will shelter her interest from tax.