Radcliffe News

Mar

14

Have you lost track of your pensions?

January 2018 figures from the government have revealed a staggering £400 million is currently sat in unclaimed pension savings, due to millions of savers losing track of old pensions. Previously, the government revealed the average worker switches jobs 11 times over their career. A change of employer can often lead to starting up a new pension, and – for many it seems – forgetting about the old ones. The latest government research discovered that a fifth of us have no idea how to... Read More »

Mar

14

Five tax considerations for 2018

The 2018/19 tax year heralds the introduction of tax changes that might impact on your savings and investments. Whilst despite industry speculation, other rules remain the same. 1) How much you can pay into a pension over your life The lifetime allowance – which limits how much your total pensions can grow to, without paying tax – is being increased from £1 million to £1,030,000. This 3% rise is a welcome boost for many people. For example, more than 2,500 people exceeded their... Read More »

Mar

14

Don’t fall off the retirement cliff

An over-reliance on the state pension could prove dangerous. The £8,456.20 maximum amount of annual income it pays, for the 2018/19 tax year, is certainly an extremely valuable benefit to support your lifestyle. But on its own, will it be enough to provide for your retirement? A December 2017 report, by the Organisation for Economic Co-operation and Development (OECD), suggests it won’t. The report warns many people could face something of a retirement income cliff – because the gap... Read More »

Mar

14

What next for interest rates?

The Bank of England has embarked on the first rate rise for a decade, but there remains a long way to go. The pain goes on for savers. Despite the Bank of England increasing interest rates from 0.25% to 0.5% in November, interest rates on savings accounts remain at dismally low levels, with no end in sight. With inflation reaching a six-year high in the same month, growing your savings in real terms remains a considerable challenge. Certainly, the rate rise failed to deliver the upturn in... Read More »

Mar

14

Inheritance tax planning

The issue of inheritance tax continues to grow. Despite the introduction of favourable new rules last April, the amount of inheritance tax collected by the government has reached record high levels and is forecasted to keep rising over the next five years. If, when you die, the value of your estate falls above your personal inheritance tax threshold (the highest amounts being up to £450,000 if you’re single or divorced, or up to £900,000 if you’re married or widowed, for the 2018/19... Read More »

Mar

14

The cost of no financial advice

November 2017 research from Nottingham Building Society has found that – with the support of financial advice – better savings habits can be developed. On average, Nottingham discovered people put £1,600 less away every year when they don’t have access to financial advice. One in five of us say they are saving less because they’re unable to find suitable financial advice on how to properly handle their money. 21% admit they don’t think they’re saving as much as they... Read More »

Mar

14

Cost of moving house reaches record high

Moving house is considered to be the most stressful life event you can experience – and it will also prove very expensive. December 2017 research by reallymoving.com concluded the average cost of moving house has reached a record high of £7,381. 44% of the total cost of moving is made up of estate agent fees (averaging £3,254), followed by stamp duty (27% of the total amount), with other outgoings including conveyancing fees and removals. As ever with the housing market, there are... Read More »

Mar

14

The (rising) age of inheritance

When you’re struggling to achieve life’s major goals, such as getting onto the property ladder, the windfall of receiving an inheritance could make all the difference. However, a December 2017 report by the Resolution Foundation has found that people currently aged between 25-35 – known as millennials – will have to wait until they are nearly at retirement age for their inheritance. The research found that, on average, millennials will be 61 before they receive an inheritance.... Read More »

Mar

14

How big is your pension pot?

The average UK worker will need to build more than £300,000 into a pension to maintain their current lifestyle in retirement, according to January 2018 research by Aegon. This figure is based on the average UK employee earnings of £27,000, as revealed by the government as part of its auto-enrolment review announced in December. The government also believes we should be targeting a retirement income equivalent to two-thirds of our working income – £18,000 a year, or £1,500 a... Read More »

Mar

5

Over 750,000 savers risk passing pension to wrong person on death

Three-quarters of a million people coming up to retirement are at risk of their pension being passed on to an ex-partner when they die, according to research by Royal London. The insurer estimated some 773,000 people aged between 55 and 64, who are now in second or subsequent relationships, may be affected by this issue. According to Royal London, the problem arises where people have told a pension scheme they want "any payments after their death to go to a first spouse" but then... Read More »