Families face a precarious situation if the worst were to happen
Everyone’s circumstances are different, but most people start to think about cover to help protect their family financially once they have children. But research from Scottish Widows[1] reveals that 60% of women in the UK with dependent children have no life cover, leaving their families in a precarious situation if the worst were to happen.
Larger individual wealth and expectation of substantial inheritances
With estate planning, you can decide what happens to your money and possessions – even your pets – if something happens to you. But estate planning is useful in other ways too: it can help you minimise any Inheritance Tax liability and ensure your wishes are carried out in the event of your death or if you need to go into care.
With increasing life expectancy and rising cost of living, the need to plan for one’s golden years is essential. Although retirement is one of the most distant financial goals, it is in our own interest not to ignore it. And almost three quarters (73%) of people aged 45 or over are longing for the day when their life is no longer confined by their working routine, according to new research[1].
Looking forward to having more time to explore faraway places
Today, with more Britons living longer and healthier lives, the concept of retirement is much different to what it was only one generation ago. For each retiree, retirement is different. Perhaps you’re looking forward to having more time to explore faraway places, or maybe you dream of simply waking up each day and doing whatever takes your fancy.
Older workers are increasingly valuable members of the gig workforce
We tend to associate young people with the gig economy, but new research shows that older, more skilled workers are increasingly making the move. The gig economy has been enthusiastically embraced by millennials who favour the flexibility it offers, although it appears that it is older workers who might be benefiting the most.
Excuses to avoid facing the difficult work of saving for retirement
Retirement is one of our biggest financial challenges. As with any daunting challenges we face, we tend to think up excuses so we can avoid facing the difficult work of saving for retirement. Worryingly, nearly one in eight people retiring this year (12%) have made no provision for their retirement, including 10% who will either be totally or somewhat reliant on the State Pension, according to new research[1].
How to protect the value of your money from its effects
Is inflation back? After two years when consumer prices in the UK barely rose, the annual rate of inflation has risen above the Bank of England’s (BOE) target of 2% in 2017. The combination of high inflation and limited wage growth – as well as uncertainty about the terms on which Britain will leave the European Union in 2019 – is expected to mean Britain’s economy grows more weakly than other EU economies this year.
How your future looks will ultimately be determined by having the right vehicle in place for your retirement. As you approach retirement and start thinking about when and how to take your money, it’s a good idea to check what pensions you have and what they might give you. The rules around pensions are continuously changing, which means it’s essential to receive regular professional advice on how to build up and invest your pension effectively.
When it comes to managing money, one of the things some people find most difficult to understand is the tax relief they receive on payments into their pension. Tax relief means some of your money that would have gone to the Government as tax goes into your pension instead. You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief you get on your pension contributions.
Putting a value on your pension savings in the future
The pension lifetime allowance is a limit on the value of payouts from your pension schemes – whether lump sums or retirement income – that can be made without triggering an extra tax charge.
