Avoiding financial scams

Enable’s IFA’s in Bishops Stortford and Saffron Walden know only too well how damaging falling victim to a financial scam can be. Falling victim to any type of fraud is a traumatic experience.  One of the best ways to combat this rising crime it to make sure people are forearmed with the knowledge to beat fraudsters at their own game.

Alongside the rise in this kind of crime is the problem of the banks and police being under resources and therefore are struggling to cope, and in many cases the blame can end up with the person who fell victim, often ‘negligence’ is cited. Refunds from banks are becoming an increasingly grey area and they seem to get more and murkier, whether you're a victim of vishing, smishing or phishing.

There has been a flood of fraud in Britain in the past few years, some of it originates here, but some of it from gangs in areas such as Eastern Europe, Russia and the US. Last year, online fraud losses were up 64 per cent annually, reaching £133.5million according to Financial Fraud UK.  At the same time, phone banking fraud was up 92 per cent. A recent survey by Nationwide Building Society found that one in three people would be trusting enough to transfer cash to an unknown account if they were called by someone posing as their bank, showing a knowledge gap when it comes to fraud. The rise of this kind of fraud is not showing any signs of stopping and it is difficult to know what to do but at least when you hear about a new fraud, the tricks of the conmen can be revealed. 

This is Money has created a Beat the Scammers hub page. It might be worth your while reading up on it and telling your friends and relatives about.

http://www.thisismoney.co.uk/money/beatthescammers/article-3774226/Fight-rush-financial-scams-new-Beat-Scammers-page.html

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE  

Pensions and property

Enable’s IFA’s in Bishop’s Stortford and Saffron Walden have long suggested that for long term financial planning, rather than putting all your eggs in one basket savers should have a balanced portfolio of investments, of which property of course should form a part.  In a speech delivered recently by the City watchdog's (FCA) boss, Andrew Bailey, cautioned the idea of investing too much of one’s retirement fund in property.

His comment seem to directly challenge some of the more recent calls made by Andy Haldane, the Bank of England's chief economist, who has suggested that property is a better option for funding retirement than a pension. Mr Haldane had previously also admitted he could not make "the remotest sense of pensions" because they are too complicated.

Fresh data reveals the property wealth of over 65s in Britain has surpassed £1 trillion for the first time.  Key Retirement’s Pensioner Property Index reveals pensioners who have paid off their mortgages have gained on average £19,120 tax-free in the past three months taking their property wealth to a new record high.  Jon Greer, a pension’s technical expert, at Old Mutual Wealth, says “Housing wealth can be an important part of the mix when it comes to retirement income. But treating your house as your pension is a major risk. “Putting all your eggs in one basket is never a good idea, particularly when you consider that unlocking value in property is not straightforward.

Interestingly Halifax data shows the average home has risen in value by 231pc over the past two decades, while ABI data shows a typical pension fund has made 211pc investment growth over the same period. Enable’s IFA's in Bishop's Stortford can try and help you get the balance right.

http://www.telegraph.co.uk/news/2016/09/16/city-watchdog-chief-warns-against-using-property-as-a-pension/

Mortgage rates come and go…

Enable’s experienced IFA’s in Bishops Stortford and Saffron Walden know that mortgage interest rates can go up as well as down.  At the moment the average variable and fixed mortgage products rates have fallen to record lows. According to the latest Moneyfacts UK Mortgage Trends report, the Bank of England’s move to drop the base rate to 0.25 per cent in August meant two-year tracker’s fell by 0.19 per cent from 2.13 per cent in July to the lowest point on record of 1.94 per cent. The fixed rates have also hit record lows, with two-year products dropping 0.4 per cent to 2.44 per cent and five-year fixes falling 0.03 per cent to another record of 3.05 per cent.

But according to Bovill’s mortgage specialist interest-only mortgages could be less of a “ticking time bomb” and more a “firecracker”.  Five years ago Martin Wheatley described interest-only mortgages as a ticking time bomb” and Darcy Tallon, a mortgage specialist at regulatory consultancy Bovill thinks the fuse still hasn’t been lit on the former Financial Conduct Authority chief executive’s warning, and only time will tell if Wheatly was right. Tallon says “The market has moved on, maybe due to his proclamation, but that time bomb is looking more like a firecracker at the moment.”

Citizens Advice research last year estimated that nearly 1 million people had interest only mortgages with no arrangements to pay them off at the end of the term. Mr Tallon says the “real test” will come after 2020 when a surge of interest-only mortgages mature. But perhaps these people still won’t struggle to pay off their outstanding balance, said Mr Tallon assuming house price growth and low LTVs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

http://www.ftadviser.com/2016/09/16/mortgages/interest-only-mortgage-firecracker-rather-than-time-bomb-L2VQ73I3F1h2GanhIqMZsK/article.html

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Should I Buy-to-let?

Enables’ IFA’s in bishops Stortford have been following the Buy-to-Let market post Brexit with interest. Some market analysis by Mortgage Brain has revealed recently that that the costs of buy-to-let mortgages have actually fallen by as much as 8% over the past six months. Meaning many buy-to-let landlords have been benefitting from the continuing reductions of mortgage costs, as lenders across the board have been shaving percentage points off their best deals in an effort to attract greater business from those buying or re-mortgaging property, including buy-to-let landlords.

Part of the analysis of Mortgage Brain’s latest product data shows that the cost of a five-year fixed buy-to-let loan with a 70% loan-to-value (LTV) is now 8% less than it was in March 2016. With the current rate of 2.8%, as of 1 September 2016 there is a potential annualised saving of £738 on a £150,000 mortgage.

Many economists are predicting that the Bank of England will announce another cut to the base rate in November taking it from 0.25% to just 0.1%. If that is the case then there is every chance that mortgage costs could fall even further in the closing months of 2016. Mark Lofthouse, CEO of Mortgage Brain said: “With further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.
“There’s no doubt though that on the whole borrowers and potential buy-to-let investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing.” 

https://www.landlordtoday.co.uk/breaking-news/2016/9/buy-to-let-mortgage-costs-down-by-as-much-as-8

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Keeping on top of your NI payments

Enable’s IFA’s in Bishops Stortford and Saffron Walden are keen to make sure their clients stay ahead of any changes in the financial landscape.  Another of the elements of the new state pension changes introduced in April, requires that workers must have at least 35 years of NI contributions.  This is five years more than under the previous system if you are to receive the full payment, which currently stands at £155.65 a week.

One pension provider Aegon recently conducted some research that revealed that eight out of ten Britons don't know how many years of National Insurance (NI) contributions are needed to qualify for the full welfare payment. In addition a third of people had no idea that a career break could harm their state pension payments. Six in 10 women have a taken a career break of at least a year at some point in their life

Kate Smith, head of pensions at Aegon UK, said: “The fact that 80 per cent of people don’t understand the potential implications of career breaks on their state pension just highlights the sheer scale of the task ahead to properly educate people about the new state pension.  Ms Smith added: "To ensure no-one loses out, every individual in the UK should be contacted and provided with an estimate of the state pension they are on target to receive. "This approach will not only force people to engage with their pension more often, it may also prompt them to review their private provision and in doing so, take stock on whether they are on course for the retirement they aspire to."

http://www.express.co.uk/finance/personalfinance/701094/state-pension-confusion-over-national-insurance-contributions
 
Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Helping the next generation

Enables’ experienced IFA’s in Bishops Stortford and Saffron Walden know that the reported cost of bring up a teenager can amount to more than the average UK salary. The Cost of Youth report put together by Aviva found that the money spent providing for  teenagers aged from 13 – 19 topped the average salary which is just £26,104, and that  ‘Sweet 16’ was the most expensive year, seeing parents forking out over £4,800 a year.

These costs did not include household expenses, like food and utility bills, but were related to birthdays and special occasions, holidays, gap year travel, food and drink outside of household groceries, including school meals, essential clothing and shoes, pocket money, additional education or tutoring and technology (mobile contracts and handsets, computers, tablets).

Over a third of parents said they have sacrificed retirement savings to meet these costs and 37% said they have stopped going out so that they could give money to their teenagers. Half of the parents said they have dipped into savings or relied on credit cards or loans for their teens. But only half of the parents surveyed said they have taught their children about budgeting, banking or how savings accounts work. At Enable our IFA’s know it is never too early to start teaching your children about managing their money.

http://www.mummymoneymatters.com/2016/08/teens-cost-parents-more-than-the-average-uk-salary/

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

COMMERCIAL PROPERTY UPDATE

Following the Brexit vote, even though over a third of commercial property deals were either abandoned or renegotiated, some investors – particularly those from Asia and the Middle East – have identified a buying opportunity.

The near 10% devaluation of Sterling following the vote has spurred foreign investors into the market. One example being a consortium of Saudi Arabian and UK investors bidding $1.3 billion for the prestigious ‘Grosvenor House’ hotel in London.

Meanwhile, the Abu Dhabi Financial Group, already holding a portfolio of £2 billion in London, has said it is looking for further sites.

Will Fulton, Chief Executive of FTSE 250 company UK Commercial Property Trust, which owns commercial property across the UK, was reported to have commented that although the vote to leave the EU had destabilised the market, an increase in foreign buyers seeking UK property was evident.

He remains confident that the occupational market for commercial property is strong, of 16 leasing transactions the company had in the pipeline prior to June 23, 14 were still proceeding.

Record high but Brexit spoils the party

Commercial property has achieved a record high, although Brexit uncertainty has muddied the waters, according to the Investment Property Forum (IPF). They report that the sector has risen by nearly 50% since its nadir, seen following the recession in 2009, with a valuation of £871 billion, an increase of around 11%. The amount of stock in the sector actually fell in 2015, so any increase in overall value came from price increases achieved.

The former highest valuation that the IPF put on the market was £865 billion, ten years ago in 2006.

Stamp duty on commercial property – gauging the potential impact

The recently released Q2 2016 UK Commercial Property Market Survey from the Royal Institution of Chartered Surveyors questioned respondents on their views regarding the potential impact of the changes made to stamp duty in the March 2016 budget, when a new marginal system was introduced.

Across the UK, 57% of respondents felt the change is likely to have little impact on transaction volumes and 24% believe it could lead to a reduction in volumes. Only a small number anticipate a resulting boost in transactions (4% of respondents), with 15% of respondents unsure.

In London, 43% of respondents felt the new regime would result in a reduction in transactions, with 42% believing the impact will be minimal.

 Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

BANK OF ENGLAND CUTS INTEREST RATES

In a determined and direct effort to boost the UK’s economy, after the fall-out from the recent Brexit decision, the Bank of England (BoE), for the first time since 2009, unanimously decided to cut interest rates. The rate now sits at 0.25%, an all-time low.

The Governor of the BoE, Mark Carney, also intimated that, should the economy worsen, they could lower the interest rate further in the future.

Another adrenalin shot to the economy was announced by the Bank of £170 billion worth of monetary easing measures. These include a new Term Funding Scheme, wherein £100bn of funds will be made available to the commercial banks at rates close to the new 0.25% rate, provided these funds are utilised as loans to households and businesses and that they benefit from this rate reduction accordingly.

The BoE will also purchase £60bn of UK Government Gilts and £10bn of corporate bonds, thus pumping more liquidity into the market.

Mark Carney was quoted as saying at the time: “The MPC is determined that the stimulus the economy needs does not get diluted as it passes through the financial system.”

He went on to add: “We took these steps because the economic outlook has changed markedly, with the largest revision to our GDP forecast since the MPC was formed almost two decades ago.

“By acting early and comprehensively, the MPC can reduce uncertainty, bolster confidence, blunt the slowdown, and support the necessary adjustments in the UK economy.”

 Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE  

RECORD NUMBER OF PEOPLE NOW IN WORK

Between April and June 2016, with 31.75 million people working, 23.22 million of those in full-time employment and 8.53 in part-time, the employment rate (for those aged from 16 to 64 years) in the UK has hit 74.5%. This is the highest rate seen since comparable records began back in 1971.

Of the unemployed, there were 1.64 million people, which is a rate of 4.9% and 52,000 less than the previous quarter and 207,000 lower than a year earlier. Again the lowest figure seen since the March to May quarter of 2008.

On the wages front, average weekly earnings including bonuses rose by 2.4% and those excluding bonuses rose by 2.3% although these figures are not adjusted for price inflation. The average total pay employees earned was £501 per week in the April to June quarter.

ONS statistician David Freeman commented: “The labour market continued on a strong trend in the second quarter of 2016, with a new record employment rate.

“However, little of today’s data cover the period since the result of the EU referendum became known, with only claimant count and vacancies going beyond June-July for the former and to May-July for the latter.”

 Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

MARKETS: (DATA COMPILED BY THE OUTSOURCED MARKETING DEPARTMENT)

Equity markets worldwide recovered some of their momentum following the Brexit vote, reinforcing July’s improvement with the FTSE100 ending August at 6,718.51 to record a 0.85% gain, although it had touched an intra-month high of 6,941, which was just 2.29% short of its all-time high of 7,103 seen in April 2015. The wider and sometimes more closely followed FTSE250 saw a more impressive rise of 2.6%, to close at 17,732.77 and the junior AIM market finished at 791.32, for an impressive 4.69% jump.

Across the pond the Dow Jones trod water somewhat, spoiling the party by losing a nominal 0.17% to close the month at 18,400.88. Meanwhile, the technology-based Nasdaq managed just short of a 1% rise to 5,213.22.

On the continent the Eurostoxx50 also improved by 1.08% to see the month out at 3,023.13. Likewise in Japan, who are still struggling with deflation, the Nikkei225 also improved by 1.92% closing August at 16,887.40.

The foreign exchanges saw a quiet month following the Brexit sell-off of Sterling in June, however, the pound managed to stand its ground against both the US Dollar and the Euro. It closed out the month unchanged at $1.32 and €1.18 respectively. The ‘Greenback’ also remained stable against the Euro, finishing at $1.11.

The price of Brent Crude rose an impressive 10.92% to $47.04 a barrel, still 10.2% up on the year-to-date.

Gold lost a little of its recent sparkle, dipping 2.98% to $1,308.84, but it still recorded a very healthy year-to-date gain of 22.06%.

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

“MARKED SERVICE SECTOR DOWNTURN”

The latest Markit/CIPS UK Services Purchasing Managers Index (PMI) covering the ‘Services’ sector, reveals that – both output and new business – fell for the first time in three-and-a-half-years, and at the fastest rates since Q1 2009. Employment in the sector was unchanged from June, halting the period of continued job creation which commenced in 2013.

The Business Activity Index came in at 47.4 in July, down from the 52.3 recorded in June. Any figure below 50 indicates contraction and therefore a fall in output for the sector. At 4.9 points, the decline was the largest seen since the survey began in 1996.

Among some of the mitigating factors quoted were uncertainty surrounding Brexit, increased cost pressures, particularly in salaries, fuel and food costs and the consequences of Sterling’s devaluation.

Markit’s Chief Economist, Chris Williamson, said: “The marked service sector downturn follows news from sister PMI surveys showing construction activity suffering its steepest decline since mid-2009 and manufacturing output contracting at the fastest rate since late-2012. At these levels, the PMI data are collectively signalling a 0.4% quarterly rate of decline of GDP.

“It’s too early to say if the surveys will remain in such weak territory in coming months, leaving substantial uncertainty over the extent of any potential downturn. However, the unprecedented month-on-month drop in the all-sector index has undoubtedly increased the chances of the UK sliding into at least a mild recession.”

The importance of this particular PMI is the fact that the output of the UK’s ‘Services’ sector currently represents about 75% of current Gross Domestic Product and is therefore an important pulse point for the overall economy.

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

UK INFLATION EDGES HIGHER

UK inflation, as measured by the Consumer Prices Index (CPI), edged higher in July rising from its previous level of 0.5% to 0.6%, according to the latest data from the Office for National Statistics (ONS).

Whilst remaining at historically low levels, this rise of just 0.1% was sufficient to record the highest inflation figure seen since November 2014.

The major factors behind these statistics were the increase in the price of motor fuels, alcoholic beverages and accommodation services. Food prices, although lower, did not fall by as much as in previous months.

Counterbalancing these increases were falls in the cost of social housing rents, together with some falling prices for certain toys and games.

The wider measure of inflation the Retail Prices Index (RPI), which includes housing costs, whilst no longer deemed to be a National statistic, also rose to 1.9% from its previous recorded level of 1.6% in June. RPI is important, however, as many service costs, such as regulated train fares in England, Scotland, and Wales, are matched against this benchmark and could rise accordingly by a similar amount.

In future, the de facto devaluation of Sterling will impact further on prices as the cost of imported goods will increase accordingly.

The Head of Prices at the ONS, Mike Prestwood, commenting on this was reported to have said: “There is no obvious impact on today’s consumer prices figures following the EU referendum result, though the Producer Prices Index (PPI) suggests the fall in the exchange rate is beginning to push up import prices faced by manufacturers.”

 Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE  

Don't confuse your life insurance policies

Enable’s IFAs in Bishop’s Stortford find that insurance can be one of those issues that’s overlooked in financial planning.  But it is an invaluable tool for offering some financial peace of mind in more than one set of circumstances.  Level Term life insurance is perhaps the most common and most fundamental form of insurance for protecting your dependents but it is just one type of life insurance, others that do different jobs are also available.

Another form of insurance; Mortgage decreasing term insurance is a form of cover that pays out to pay off your mortgage should you die within a set term. As your mortgage debt decreases over time, the amount it pays out will also decreases, because of this feature it can also be called 'decreasing term assurance'.  This also makes it a cheaper form of life insurance than level term life assurance as the insurer would usually find themselves paying a lot less on average to cover these terms. Although it has to be remembered that it does not leave a lump sum for your dependants so that they can cover any other debts and cope with on going spending as a level term life insurance policy would.

Whole of life insurance is another form of insurance which is often but not always an investment-linked life insurance policy it is mainly used to mitigate inheritance tax. With this insurance the amount paid out should be able to cover the inheritance tax bill on death, these policies clearly run out when you die, instead of after a fixed time. If you need help making sure you have the right insurance policies in place Enable’s IFAs in Bishops Stortford can help.

Source: Money Saving Expert

 Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Struggling with your savings?

Enable’s experienced IFA’s in Bishop’s Stortford know that the theory behind the Bank rate cut is sound in so far as when consumers see a cut in their mortgage bill, and a worsening return on their savings, they go out and spend. Hence, there is a boost to the economy. The very same logic applies to businesses who will be more inclined to invest thus seeing us through this tricky time.

This is obviously a simplistic explanation but it does make it clear why they are cutting the Bank rate and that a Bank rate cut continues to be bad for savers. Savings interest rates have been fairly pitiful for years, and even those locking in their savings for five years are only getting an average of 1.97% in interest. Susan Hannums, of SavingsChampion.co.uk. said: "Many savings accounts could not even suffer a quarter point cut. With almost a third of easy access accounts currently paying 0.25% or less, savers need to act now to better their returns."

About three-quarters of bank current accounts do not pay interest at all and for every savings rate that has been increased in 2016, around nine have been cut, according to data from financial information service Moneyfacts.  Even those that have are about to change.

MoneySavingExpert.com founder Martin Lewis said: "Santander 123 has been a beacon, shining out for those with a decent chunk of cash, as at 3% it pays decent interest. Now it’s halving that, meaning for those with £20,000 saved, it drops from roughly £600 to £300 a year." Mr Lewis added: "Unfortunately, it is likely Santander is just at the vanguard of rate cuts. Its main competition, the other banks with high interest accounts, may well cut those too. Enable’s IFA’s in Bishops Stortford are happy to help you look at your savings plans.


Source:http://www.express.co.uk/finance/personalfinance/700097/Santander-slashes-rates-on-top-123-bank-account

 Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

Do you know where you are with you NI?

Enable’s IFAs of Bishop’s Stortford regularly help people plan for their retirement. Financial planning for your later years is essential so it is striking to see that according to research by one pension provider 8 out of 10 Britons don't know how many years of National Insurance (NI) contributions are needed to qualify for the full welfare payment.

It would also seem that a third of people have no idea that a career break could harm their state pension payments. With so many new pension opportunities and regulations it is important to know that under the new state pension, introduced in April, workers must have made at least 35 years of NI contributions to receive the full pay-out, currently £155.65 a week. (This is 5 more years of contributions than previously required.)

Women can be particularly at risk of not having paid the full number of years as 6 in 10 women have taken a career break of at least a year at some point in their life.  Another thing many people don't realise is that there are some steps, such as claiming child benefit that can mitigate the impact of fewer years of NI contributions. Kate Smith, head of pensions at Aegon UK, said: “The fact that 80 per cent of people don’t understand the potential implications of career breaks on their state pension just highlights the sheer scale of the task ahead to properly educate people about the new state pension.” An inquiry by the Commons Work and Pensions Committee earlier this year found just weeks before the introduction of the new state pension many people were left "unprepared and confused". If you want to make sure you are prepared and not confused about your pension provision Enable’s IFAs in Bishops Stortford are here to help.

Source: http://www.express.co.uk/finance/personalfinance/701094/state-pension-confusion-over-national-insurance-contributions

 Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE