Question time

Why planning for your future retirement requires answers

We all look forward to stopping work, embarking on a new path and making the most of our new-found freedom. But with all the talk and concern about dwindling retirement funds and our shaky economy, many retirees and soon-to-be-retired boomers need to consider three very important questions, sooner rather than later. Continue reading “Question time”

One of life’s unpleasant facts

Protecting your assets to give your family lasting benefits in an uncertain world

Inheritance Tax (IHT) in the UK is a subject that was once something that only affected very wealthy people. It may be one of life’s unpleasant facts but today it affects more people than ever, partly due to the rise in the property market that has not been matched by a corresponding rise in the IHT threshold. Continue reading “One of life’s unpleasant facts”

‘Am I diversified enough?’

What’s positive for one investment can be negative for another

Different types of investments are affected in different ways by factors such as economics, interest rates, politics, conflicts, even weather events. What’s positive for one investment can be negative for another, and when one rises another may fall. This interlinked movement between assets is known as ‘correlation’. Continue reading “‘Am I diversified enough?’”

Workplace challenges for older workers

One in three could not carry out current jobs past their traditional retirement age

Employers estimate up to a third of their staff would struggle to continue in their current jobs past traditional retirement ages, research for MetLife Employee Benefits[1] shows. Its nationwide study found HR directors believe that, on average, 31% of their current workforce would not be able to perform their jobs adequately once they reach normal retirement ages, even though 54% of them expect an increase in the proportion of older staff. Continue reading “Workplace challenges for older workers”

Offsetting the negative effects of inflation

Why more people are retaining exposure to stocks and shares

New research[1] suggests that UK adults are planning to use equity investments to help them outstrip inflation and manage the rising cost of living. Over half (53%) of UK adults rate the rising cost of living as their number one fear for retirement, and almost a third (32%) of pre-retirees[2] say they would retain some exposure to stocks and shares to offset the negative effects of inflation on their retirement income. Continue reading “Offsetting the negative effects of inflation”

Saving for a rainy day

Fewer people are putting money away despite improvements to the economy

T he gap between the fortunes of savers and non-savers continues to widen, and research supports these findings[1]. ‘Habitual savers’ continue to put away more for a rainy day, but the total number of people saving has fallen, and, despite improvements to the economy, one in five people in the UK have no savings at all. Continue reading “Saving for a rainy day”

Retiring in good health

How new pension fund rules could increase life expectancy

With the news that the tax charge on pension funds will be removed before age 75, some commentators have suggested that over 90% of people retiring in good health should expect to live beyond age 75. For someone with moderate levels of health issues, over 80% might expect to live to at least 75. The tax landscape beyond age 75 is different, with tax being paid on monies passed on. Continue reading “Retiring in good health”

Pension tax charge abolished sooner rather than later

New rules will simplify the existing regime from April 2015

The Chancellor, George Osborne, has brought forward the expected announcement on the tax charge that applies to certain individuals’ pensions on their death. The new rules will simplify the existing regime and come into force from April 2015, abolishing the 55% tax that applies to untouched defined contribution pension pots of people aged 75 or over, and to pensions from which money has already been withdrawn. Continue reading “Pension tax charge abolished sooner rather than later”