Generation still taxed Numbers nearly double in the last two decades With so much choice on offer, and with frequent rule changes and distinct tax benefits to consider, finding the right vehicle for your retirement planning is essential. Add to this the number of taxpaying pensioners nearly doubling over the last two decades, and with talk of also requiring pensioners to pay National Insurance on any earnings or even on pensions, the older population may start thinking of themselves as ‘Generation

Looking to the future Taking the steps now to prepare yourself for retirement With increasing numbers of people working past traditional retirement ages[1], stopping work can seem a long way off, especially for younger people. But it’s the dream of an early retirement that keeps many people going through the daily work grind. Fantasies of a round-the-world cruise, sundowners on a seaside terrace or writing a best-selling novel can make work endurable. The good news for many is that the

Do you have protection if the worst should happen? Nine in ten Britons are in danger of financial hardship – so what cover do you need? Britons are woefully under-protected should serious illness strike, according to new research[1]. Despite more than a fifth (21%) of people admitting their household wouldn’t survive financially if they lost their income due to long-term illness, fewer than one in ten (9%) have a critical illness policy. People are, in fact, more likely to insure

Retirement savings leap Retirement savings leap But one in five young people still saving nothing The number of under-30s saving enough for retirement has risen sharply by 9%[1]. As the success of auto enrolment continues, two in five UK workers (39%) aged 22–29 years old are now saving adequately for retirement, up from 30% last year. Despite this, more than one in five young people (21%) are still saving nothing for later life, with a further 20% saving seriously less

Taking early retirement Making the most of the next chapter in life With increasing numbers now working past traditional retirement ages[1], stopping work can seem a long way off, especially for younger people. However, new research[2] reveals that the early retirement dream lives on. Nearly two thirds (60%) of those stopping work this year are doing so before their expected State Pension age or company pension retirement date. The study which tracked the finances and aspirations of those planning to

Maximising retirement income Time to start looking at accessing your pension? Income drawdown is a way of using your pension pot to provide you with a regular retirement income by reinvesting it in funds specifically designed and managed for this purpose. The income you receive will vary depending on the fund’s performance. However, worryingly a third of people using income drawdown (32%) to fund their retirement have no investment experience, yet two in five (41%) of these have not received

‘Pretirement’ Half of pensioners plan to work past retirement age A recent study found half (50%) [1] of those retiring during 2018 are considering working past State Pension age. This is the sixth consecutive year where half of people retiring would be happy to keep working if it meant guaranteeing a higher retirement income. Cost of day-to-day living concerns More than a quarter (26%) of those planning to delay their retirement would like to reduce their hours and go part-time

Generation game Long-term saving could yield a £1m retirement pot for some millennials The millennial generation don’t just spend their hard earned savings on smashed avocado and flat whites, but they do have a different attitude to money than older generations. In fact, some young people today or in future generations could accumulate a pension pot as high as £1 million[1] when they come to retire through a combination of higher earnings, a generous workplace pension and several decades of saving,

Protecting yourself from scams Tactics commonly used to defraud A recent study [1] found 9% of over-55s say they have been approached about their pension funds by people they now believe to be scammers since the rules came into effect from April 2015. Offers to unlock or transfer funds are tactics commonly used to defraud people of their retirement savings. One in three (33%) over-55s say the risk of being defrauded of their savings is a major concern following pension freedoms.

Plan for Tomorrow, Live for Today With the summer holidays coming to a close, it’s hard not to think of the future. Where to go next year, for a start. But why should you limit your leisure time to the all too short summer holiday season? With some careful planning it is possible to enjoy more than one break a year and if you don’t have kids you have even more options. Of course, it’s also important to plan for

Lifetime transfers Potential implications of such gifts with regard to Inheritance Tax Some people like to transfer some of their assets whilst they are alive – these are known as ‘lifetime transfers’. Whilst we are all free to do this whenever we want, it is important to be aware of the potential implications of such gifts with regard to Inheritance Tax. The two main types are potentially exempt transfers (PETs) and chargeable lifetime transfers (CLTs). PETs are lifetime gifts made

Protecting you and your family’s finances Top reasons people gave for not taking out protection The State of the Protection Nation report[1] reveals that the top reason people gave for not taking out protection was that they think premiums are too expensive (69%). They also believe they won’t get ill and they don’t need insurance. Despite this, many people want to protect their lifestyle and loved ones from the financial impact of dying or becoming seriously ill. Nearly half of the people surveyed