Cost of divorce following couples into retirement

People who divorce may face an ongoing financial hit from it throughout their retirement, according to new research by Prudential. Younger divorcees and women especially are making potentially very costly mistakes by under-valuing their pensions. The financial impact faced by divorcees in retirement works out at nearly £4,000 a year, research by Prudential has found. In … Continue reading “Cost of divorce following couples into retirement”

Is inheritance tax too complicated?

The chancellor has requested a review of the “particularly complex” UK inheritance tax regime. What is it that makes inheritance tax so complicated? Chancellor Philip Hammond recently wrote to the independent Office of Tax Simplification (OTS) in order to call for a review of inheritance tax to make sure the system is “fit for purpose”. Official figures … Continue reading “Is inheritance tax too complicated?”

The race to deliver a pensions dashboard

For some time now the government has been promising an online ‘pensions dashboard’ that will let savers view and manage all their pension arrangements in one place. Meanwhile, private pension providers are competing to deliver a similar service to cover their own products. So who’ll win the battle of the dashboards – and what’s the prize for … Continue reading “The race to deliver a pensions dashboard”

How does your household spend compare to the UK average?

The ‘cost of living’ is a phrase that’s rarely out of the news, and increasing bills and prices in the shops appear to back up the claims that our household spending is on the rise. The Office of National Statistics (ONS) has released its report for the nation’s household spending for 2016/17 and it shows that we … Continue reading “How does your household spend compare to the UK average?”

Gig economy hides gigantic pension problem

Nearly half of the UK’s self-employed workers may have to rely on just the State Pension in retirement – which a recent report has found to be the ‘least generous’ in the developed world. As the gig economy grows, a potential pensions time bomb is growing with it. How much do you have in private … Continue reading “Gig economy hides gigantic pension problem”

Pension providers to warn over drawdown

If you access your pension via a drawdown scheme, your provider may soon recommend an ‘upper limit’ on the income you take. The new measures are intended to protect pensioners against using up their savings too fast, as many are still in the dark as to the underlying risks of drawdown schemes. Some of the … Continue reading “Pension providers to warn over drawdown”

Do you have the mortgage of Damocles?

Some borrowers are living with a sword hanging over their heads: a mortgage they have little or no hope of repaying. One possible answer is the “lifetime mortgage” – but it’s hardly ideal. What is an interest-only mortgage?  It’s one where only the interest is paid off each month, so the full amount must be repaid … Continue reading “Do you have the mortgage of Damocles?”

From Truffle Trees to Time Shares – Pension Fraud is Very Real

For the first time ever, the High Court has ordered the perpetrators of pension scams to repay the money they took from their victims. Four individuals, who between them ran 11 separate pension scams, must now pay back the £13.7 million they took from pensioners by dishonest means. According to the BBC, as many as 245 … Continue reading “From Truffle Trees to Time Shares – Pension Fraud is Very Real”

Will my workplace pension be protected?

The collapse of Carillion has once again drawn attention to the pension schemes of companies that go into adminstration. Following similar cases at BHS and Tata Steel, members of the Carillion scheme will need to be moved into the Pension Protection Fund. If you have this kind of pension, can you be sure it will stay afloat? It’s getting rough … Continue reading “Will my workplace pension be protected?”

UK Retirees increasingly reliant on the state pension

About 15 million people in the UK may be facing a bleak retirement according to a major new survey from the Financial Conduct Authority1.  It recently carried out research into the personal finances of just under 13,000 consumers in the UK. The Financial Lives survey found that 31% of UK adults don’t have private pension … Continue reading “UK Retirees increasingly reliant on the state pension”