People who retire this year will be £3,000 worse off than those who retired four years ago because factors such as the credit crunch, the recession and the eurozone crisis have pushed down annuity rates to a record low. Annuity rates fell by eight per cent in 2011, which was the fourth consecutive year of [...]
In its latest Real Retirement Report, insurance company Aviva suggests that people over the age of 55 are ‘significantly poorer’ now than they were a year ago. The average income of people over 55 has fallen 4 per cent over the last year, and high-levels of inflation mean that in real terms their income has [...]
People aged between 45 and 64 whose children are still living at home are much less likely to have made financial plans for their retirement than those in households with no children, according to new research. A study by Standard Life revealed that 49 per cent of this age group, with two or more children [...]
New figures from financial research company Defaqto reveal that UK savers are pessimistic about their pensions and many are failing to make adequate provision for their retirement. Dafaqto reports that the proportion of savers who fear that their needs won’t be adequately met when they retire has grown 6 per cent to 44 per cent. [...]
In a bid to encourage people to save for their retirement, the Government has announced that all UK businesses should offer a company pension scheme or enrol members of staff into the new National Employment Savings Trust (NEST). Employees will be enrolled automatically in the scheme unless they opt out, contributing 4% of their salary. [...]
A report published by the Office for National Statistics (ONS) has revealed pensioners are not as poor as they were once believed to be. According to the report, pensions who opt to work in their retirement years are wealthier compared with the rest of the population. The study established that working in retirement provides a [...]
Government plans to scrap the default retirement age are “great news” for those approaching retirement, according to pensions provider Aviva. Research by Aviva found nearly seven in ten (68%) of over-55s would like to continue working when they reach 65. Last week the coalition government said from October 2011 employers will no longer be allowed [...]
The assumption that downsizing from the family home as old age approaches can help fund a comfortable retirement has been challenged by Standard Life. The insurer has recently conducted an “extensive analysis” of the UK property market to calculate how much retirement income downsizing can generate, and is warning those whose retirement dreams are dependent [...]
The traditional practice of leaving an inheritance is being replaced with a “pre-inheritance”. Nearly half (46%) of British adults have received a pre-inheritance, money given to them out of the estate of a benefactor who has yet to die. However, the new trend could already be on the wane, with just 17% of over-55s saying [...]
Self-employed people are failing to put enough money aside for their retirement, Standard Life claimed this week. The pensions provider said half of self-employed people aged 35-44 have saved less than £3,500 towards retirement. This is compared to an average of £73,000 in pensions savings for employed people of that age. “The recession has created [...]
Paying off the mortgage in full before they reach age 50 is the goal of nearly two thirds of Brits. Research by the Co-operative Bank found 62% of UK consumers aim to be mortgage free by their 50th birthday. Once their mortgage is paid off, the main goal of those surveyed was to take more [...]
The Personal Accounts pension scheme, which is aimed at encouraging low to middle income workers to save for their retirement, is to be re-branded as the National Employment Savings Trust (NEST). NEST will be one option open to employers who will have to enrol workers into a workplace scheme. Employees will be enrolled automatically in [...]
Britons’ love affair with property has left more than one million over fifties looking sadly on their retirement prospects. According to a poll by insurer LV=, 12% of homeowners aged 50 and over are relying on capital growth from their homes to part-fund their non-working years. The boom years of the UK’s housing market actually [...]
More than a third of UK consumers believe their pension savings have been depleted by the recession, new research by Aviva has discovered. Thirty five per cent of the 1,200 people polled – all of whom are nearing retirement – said their retirement funds have fallen in value because of the credit crunch. Over one [...]
Everyone in the pensions industry knows the retirement age must be increased to 75 if a pensions crisis is to be averted, an industry expert has claimed. Robin Ellison, pensions consultant at international law firm Pinsent Masons, said the retirement age needs to go up to match an increase in life expectancy. “When state pensions [...]
A High Court judge has today ruled that employers are still able to dismiss workers when they reach the age of 65. Currently, the law means that a British worker can have their employment terminated at the age of 65 without redundancy payments – even if they do not want to retire. Furthermore, an employer [...]
British workers who fail to save for their retirement could end up working until they reach 86 if they want to be paid a decent pension. Research by Standard Life found the real retirement age of people not currently saving for retirement could be between 74 and 86 if they want to retire on two-thirds [...]
Brits approaching retirement should do their utmost to pay off debts before they leave employment, a consumer advice charity warned this week. Anyone aged over-50 should strive to pay off debts as soon as possible to ensure they have a comfortable retirement, the Money Advice Trust (MAT) said. The MAT made the remarks following reports [...]
A survey by pension advisers MGM Advantage has revealed that around 35% of people over 55 who are still working said they would put off plans to retire. Meanwhile, a further 23% of people in this age group are expecting to work past the state pension age of 65, while a third (32%) confessed to [...]
Better financial advice could help keep more people out of poverty during retirement, the Government’s Pensions Commission claimed this week. The Work and Pensions Committee said it is “unacceptable” that two million pensioners still live in poverty, and called on the government to commit to ending pensioner poverty. Giving pensioners access to better financial advice [...]
M&S Money launches 3% cash ISA
M&S Money has launched an Advantage Cash ISA paying 3 per cent, and which allows transfers in from other ISAs. It can be opened with a minimum deposit of £100 lump sum followed by minimum monthly deposits of £25. The 3% rate is variable, but there is no short-term bonus so the return won’t plummet [...]
Google suspends UK Compare Mortgages site
Google has closed its UK mortgage comparison site which it launched in July last year, after it proved to be less popular than expected. Mortgage comparison sites are designed to allow visitors to compare mortgages quickly and easily without having to visit each lender’s individual site. Google was competing with several well-established comparison sites, including [...]
AA launches ‘black-box’ policy for young drivers
The AA is launching an innovative car insurance policy called Drivesafe which could help younger drivers save up to £850 a year. Younger drivers already pay substantially higher premiums than other motorists and these costs are increasing. A new study by Confused.com suggests insurance costs for younger driver have gone up by 5.7 per cent [...]
ATOL scheme updated to protect online bookers
ATOL, a financial protection scheme managed by the Civil Aviation Authority, is being extended to protect up to six million more holidays a year. The scheme ensures that holiday makers do not lose out financially if a travel company collapses, and that they are not stranded abroad. An increase in the number of holidays booked [...]
Home repossessions lowest for four years
The number of UK homes repossessed fell to 36,200 in 2011, significantly below the Council of Mortgage Lenders’ forecast of 40,000, and lower than 2010 when 37,100 homes were repossessed. With interest rates remaining low and lenders adopting a sympathetic attitude to customers in financial difficulty, repossessions fell to their lowest level since 2007. However, [...]
Monthly pay lasting just 17 days
Workers are running out of money just 17 days after receiving their monthly pay, according to new research by the Halifax bank. This means that the average UK worker spends half the month worrying about money. The study, based on the responses of more than 2,000 adults, found that 10 per cent of workers start [...]
Women disadvantaged by auto-enrolment changes
Government proposals to increase the auto-enrolment threshold to £10,000 could put 1.8 million women at risk of missing out on a pension, the TUC has warned. Under the auto-enrolment scheme, which will be phased in from October, private sector employers will automatically enrol workers between the age of 22 years and the state pension age, [...]
Emergency household repairs company Homeserve is taking longer than expected to get back on track after its operations were suspended last October. The company expected customer numbers to fall by 5% this year but it has increased this estimate to 8% and announced the loss of 200 jobs. It estimates that renewal revenue in 2013 [...]
Sale rumoured for Yorkshire and Clydesdale banks
There is growing speculation that National Australia Bank (NAB) may sell Yorkshire Bank and Clydesdale Bank after the Australian parent company announced a strategic review of the two banks’ operations. The Australian economy is performing well and NAB reported strong profits for the final quarter of 2011 but with the UK economy at a virtual [...]
More women experiencing debt difficulties
Women in Debt, which offers female-focused debt advice, has warned that the number of UK women facing serious debt has grown significantly over recent years. The organisation believes that more women will need advice on solving debt problems in the future because they are building up an unsustainable level of indebtedness. Women in Debt’s director, [...]
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