Recently cross-party politicians and industry leaders signed a joint letter calling on the Government and the FSA to address the risk a post-RDR advice gap could pose for people with small pension pots.
The open letter, drafted by ILC-UK chief executive Baroness Sally Greengross and sent to Treasury financial secretary Mark Hoban, pensions minister Steve Webb and FSA chairman Lord Adair Turner, called on ministers and the regulator to convene an urgent retirement income summit to address the issue.
The letter was signed by 16 people, including former Treasury select committee chairman Lord John McFall, MP Frank Field, NAPF chief executive Joanne Segars, Aifa policy director Chris Hannant and Money Marketing editor Paul McMillan. Recent research from MetLife reveals that two-thirds of advisers are already addressing some of the issues and would be willing to reduce fees for clients with pension pots worth less than £50,000. The research, which is based on a survey of 100 IFAs, found that 64 per cent would cut fees in order to provide a service to people with small pension pots.
MetLife UK managing director Dominic Grinstead says: “With the onset of auto-enrolment in October 2012 and the predicted sharp rise in small pension pots, it is encouraging that the majority of advisers would be willing to offer advice at a reduced cost to those with savings worth less than £50,000.”
If you need advice on your pension Independent Financial Advisors Enable are here to take you through the steps what-ever size your pension pot.
Showing posts with label Pensions needs. Show all posts
Showing posts with label Pensions needs. Show all posts
Thursday, 26 April 2012
Wednesday, 11 April 2012
Halifax figures house stability
The average UK house prices was £163,803 in March, almost identical to the £163,765 in July 2011, says the most recent Halifax data. Halifax’s monthly house price index showed house prices increased 2.2 per cent in the month, following February’s 0.4 per cent fall showing that prices continue to fluctuate month on month as transactions levels remain historically low.
However, Halifax’s monthly house price index revealed that house prices in the three months to March were 0.1 per cent less than in the previous three months. Prices in the first three months of 2012 were 0.6 per cent less than in the same period last year. This was the smallest fall in prices on this measure of the annual rate since October 2010. The data showed there were signs of a pick-up in house sales. The number of completed house sales has increased to its highest levels since late 2009. The proportion of house purchasers who are first-time buyers increased between the final quarter of 2011 and the first quarter of 2012.
Martin Ellis, housing economist of Halifax, said: “The underlying trend therefore indicates broad stability in UK house prices. “Efforts by first-time buyers to beat the expiry of the stamp duty holiday at the end of March have probably increased sales in recent months and may have helped to support prices. “We continue to expect little overall movement in prices this year provided that the UK economy does not suffer a pronounced weakening.”
Where ever you are on the housing ladder our experienced IFA’s at Enable of Bishop’s Stortford can help you take that next step.
However, Halifax’s monthly house price index revealed that house prices in the three months to March were 0.1 per cent less than in the previous three months. Prices in the first three months of 2012 were 0.6 per cent less than in the same period last year. This was the smallest fall in prices on this measure of the annual rate since October 2010. The data showed there were signs of a pick-up in house sales. The number of completed house sales has increased to its highest levels since late 2009. The proportion of house purchasers who are first-time buyers increased between the final quarter of 2011 and the first quarter of 2012.
Martin Ellis, housing economist of Halifax, said: “The underlying trend therefore indicates broad stability in UK house prices. “Efforts by first-time buyers to beat the expiry of the stamp duty holiday at the end of March have probably increased sales in recent months and may have helped to support prices. “We continue to expect little overall movement in prices this year provided that the UK economy does not suffer a pronounced weakening.”
Where ever you are on the housing ladder our experienced IFA’s at Enable of Bishop’s Stortford can help you take that next step.
Pension returns 2011
As with most investments for retirement you have to take a long term view but it is good to see that UK pension funds posted better returns for the third consecutive year. According to figures from BNY Mellon Asset Servicing, the average UK pension fund achieved a weighted average return of 4.3 per cent in 2011 making it the third year that UK pension funds have posted a positive annual return since the financial crisis in 2008, which saw funds provide an annual weighted average loss of 13.6 per cent.
“During 2011 pension funds experienced a wide range of individual results, depending on the extent to which they were following liability-driven investment strategies. The top performing funds achieved returns above 12.4 per cent and the bottom performing funds achieved losses of 4.2 per cent.” said their performance and risk analytics manager.
The data also showed that in the past decade UK pension funds have shifted investments from equities to fixed income, although equities still remain the largest single component for portfolios.
During the year investment in bonds did not see any significant overall changes, but in a 10-year period holdings in this sector have increased by 10.1 per cent, according to the data.
Enable IFA’s of Bishop’s Stortford are pleased to be seeing more and more positive returns for clients but we always stress that simply having the tax relief on pension contributions still makes pensions a good saving tool.
“During 2011 pension funds experienced a wide range of individual results, depending on the extent to which they were following liability-driven investment strategies. The top performing funds achieved returns above 12.4 per cent and the bottom performing funds achieved losses of 4.2 per cent.” said their performance and risk analytics manager.
The data also showed that in the past decade UK pension funds have shifted investments from equities to fixed income, although equities still remain the largest single component for portfolios.
During the year investment in bonds did not see any significant overall changes, but in a 10-year period holdings in this sector have increased by 10.1 per cent, according to the data.
Enable IFA’s of Bishop’s Stortford are pleased to be seeing more and more positive returns for clients but we always stress that simply having the tax relief on pension contributions still makes pensions a good saving tool.
Thursday, 29 March 2012
Pensions in the budget?
Given that it was a well publicised maybe even over publicised budget there was no surprise that the Chancellor did little to interfere with pensions as expected. At Enable Independent Financial Advisors of Bishop’s Stortford we were keen to consider any changes to pensions. It seemed unlikely that there would be a withdrawal of higher rate relief for pension contributions – the Chancellor would have found it hard to respond to calls to cut pension tax relief, not least because the current system was only put in place in April 2011.
Withdrawing higher rate relief would be much more complex than it might at first appear. The way in which Defined Benefit schemes work could mean employees in such schemes could end up with a big pension and low earnings. Some public sector schemes aren’t funded, so levying a charge which is then borne by taxpayers raises no money at all. There’s also a problem with Defined Contribution schemes. Cutting tax relief could mean many put in less money. However, many schemes operate on a matched contribution basis, cutting an employee’s contributions would also cut the employer contribution. Another option being floated would be a cut in the amount that could be put into a pension scheme each year; currently this is £50,000. If you have cash that you might be considering putting into your pension Enable’s Independent Financial Advisors would be able to help you consider your options..
Withdrawing higher rate relief would be much more complex than it might at first appear. The way in which Defined Benefit schemes work could mean employees in such schemes could end up with a big pension and low earnings. Some public sector schemes aren’t funded, so levying a charge which is then borne by taxpayers raises no money at all. There’s also a problem with Defined Contribution schemes. Cutting tax relief could mean many put in less money. However, many schemes operate on a matched contribution basis, cutting an employee’s contributions would also cut the employer contribution. Another option being floated would be a cut in the amount that could be put into a pension scheme each year; currently this is £50,000. If you have cash that you might be considering putting into your pension Enable’s Independent Financial Advisors would be able to help you consider your options..
Thursday, 5 January 2012
It's 2012 and here are some reasons to be cheerful
As experienced IndependentFinancial Advisors Enable have seen that confidence is vital to recovery and for some reason we Brits find that hard. In a recent poll just one in ten Britons (9%) expect their local economy to improve in the next six months, half the level seen in America according to new research from and online survey conducted in 24 countries.
Managing Director, Ipsos MORI, Bobby Duffy, said:
“With all the frenzied talk of a global meltdown it’s easy to miss that there are actually large parts of the world economy that are still feeling pretty confident about the future. And this is not just Brazil, India and China – the majority in many other countries like Canada, Australia and Saudi Arabia also feel their economy will improve in the next few months. Even within Europe, which does face real dangers in the coming months, there is a stark difference between high confidence countries (like Sweden and Germany) and low confidence countries (like the UK and France).
Only the Hungarians (6%), Japanese (6%), Belgians (4%) and the French (2%) are more pessimistic about the future of their local economy than the Brits. Even the Spanish are more optimistic than Britons (17%). By the far the most optimistic of the 24 countries are the Brazilians with 72% expecting improvement.
Enable of Bishop’s Stortford would like to play their part in helping you to be less gloomy about 2012, as we know consumer confidence has a direct relationship with real economic outcomes.
Monday, 14 November 2011
Pensions in safe hands...
A key part of June Mulroy’s work will be a blueprint for DC provision which will outline 11 basic principles that trustees, providers and employers will need to follow.
The regulator’s initial discussion paper, entitled, Enabling good outcomes in DC pension provision, published in January, identified six elements which it believes are important for achieving good outcomes for savers; appropriate decisions with regards pension contributions, appropriate investment decisions, efficient and effective administration of DC schemes, protection of scheme assets, value for money, appropriate decisions on converting private pension savings into a retirement income.
The Pensions Regulator will produce 11 principles for good quality defined contribution provision building on these six key elements.
Mulroy says: “We have tried to capture the principles in simple language, so the opposite should obviously be wrong. So, for example, we will say ’assets should be safeguarded’ the concept of assets not being safeguarded is obviously not right. “We will also outline a couple of principles about charging around transparency and simplicity.”
While the amount providers charge on pension products has inevitably grabbed the headlines in recent weeks, the regulator is equally focused on the costs incurred by providers. Mulroy says: “. We need to get disclosure of what it is costing because we do not have a proper comparative market. Getting to that point is not going to be easy but it is absolutely doable.”
Whatever kind of provision you have made for retirement Independent Financial advice from reputable IFA’s like Enable of Bishop’s Stortford can help put your mind at rest.
The regulator’s initial discussion paper, entitled, Enabling good outcomes in DC pension provision, published in January, identified six elements which it believes are important for achieving good outcomes for savers; appropriate decisions with regards pension contributions, appropriate investment decisions, efficient and effective administration of DC schemes, protection of scheme assets, value for money, appropriate decisions on converting private pension savings into a retirement income.
The Pensions Regulator will produce 11 principles for good quality defined contribution provision building on these six key elements.
Mulroy says: “We have tried to capture the principles in simple language, so the opposite should obviously be wrong. So, for example, we will say ’assets should be safeguarded’ the concept of assets not being safeguarded is obviously not right. “We will also outline a couple of principles about charging around transparency and simplicity.”
While the amount providers charge on pension products has inevitably grabbed the headlines in recent weeks, the regulator is equally focused on the costs incurred by providers. Mulroy says: “. We need to get disclosure of what it is costing because we do not have a proper comparative market. Getting to that point is not going to be easy but it is absolutely doable.”
Whatever kind of provision you have made for retirement Independent Financial advice from reputable IFA’s like Enable of Bishop’s Stortford can help put your mind at rest.
Unconventional pension regulation...
It’s hard not to notice the Pensions Regulator executive director for defined-contribution June Mulroy she is not exactly your stereotypical regulatory official. To start with she is a woman and she dresses in quite an unusually flamboyant way, her hair is dyed pink and she is plain talking. She has been tasked with kicking the pensions industry into action on some pretty sensitive and entrenched issues, such as pension charges and the disclosure of costs.
She says: “We have had some very interesting conversations with people about what their charges are. Interesting in the Chinese sense. Nobody can really tell us what their charges are. We have done a lot of research, so we know some of the things that are underneath the charges. But we really had to dig to get people to be honest and open”.
“There is an awful lot of Tommy Cooper that goes on when people try to describe charges but I do not think it is as complicated as certain people in the industry try to make out. It is no more complicated than forms of pricing are in any financial product.”
Mulroy is attempting to break through some of the jargon and complexity of the pension industry as she looks to improve both the quality and the comparability of DC schemes.
Your pension requirements might not be as flamboyant as June Mulroy but plain talking is what Enable like and reputable Independent Financial Advisors like Enable of Bishop’s Stortford are happy to talk through your pension provision with you.
She says: “We have had some very interesting conversations with people about what their charges are. Interesting in the Chinese sense. Nobody can really tell us what their charges are. We have done a lot of research, so we know some of the things that are underneath the charges. But we really had to dig to get people to be honest and open”.
“There is an awful lot of Tommy Cooper that goes on when people try to describe charges but I do not think it is as complicated as certain people in the industry try to make out. It is no more complicated than forms of pricing are in any financial product.”
Mulroy is attempting to break through some of the jargon and complexity of the pension industry as she looks to improve both the quality and the comparability of DC schemes.
Your pension requirements might not be as flamboyant as June Mulroy but plain talking is what Enable like and reputable Independent Financial Advisors like Enable of Bishop’s Stortford are happy to talk through your pension provision with you.
Thursday, 3 November 2011
Need to make sense of changes to pensions?
The Department for Work and Pensions has amended the Pensions Bill and has redefined money purchase schemes and defined benefit schemes as a result of a recent High Court case.
According to John Lawson, head of pensions policy at Standard Life,” the case focused on dividing the line between DB and DC schemes”. The scheme at the centre of the challenge, Home Decor Pension Scheme, was, according to the DWP, promoted in the “same way as a money purchase scheme but it did not have any means to fulfil its promises”.
The DWP argued that it was a money purchase scheme, which the scheme denied. The Supreme Court found in the scheme’s favour. Mr Lawson said: “Money purchases schemes such as personal pensions [and/or] DC occupational schemes where funds go up or down in the market can only become an annuity with an insurance company or income drawdown. “Schemepensions have been left out of the reclassification, which implies they are DB. DWP wants to make sure trustees are funding these schemes properly.”
According to Mr Lawson, currently those in scheme pensions can reduce the level of income they are taking if their fund is running low or investments are performing badly. However the DB rules mean the provider would have to make up any deficit or risk the scheme falling onto pension lifeboat scheme the Pension Protection Fund, meaning schemes having to pay PPF levies.
Sounds too complicated, let Enable IFA’s of Bishop’s Stortford help you make sense of it.
Tuesday, 20 September 2011
Don’t put your head in the sand about your pension
There is much in the news currently about public sector pensions and all the talk of strike action to protect them but the irony is that many in the private sector would be quite happy with some of the pension provision, even that currently on offer to public sector workers. Pensions outside the public sector are much more patchy in their provision and might not be offering the kind of pensions people would have hoped for in the long run – a recent survey by Prudential showed that one in three workers didn't have any pension at all, which could lead to an impoverished old age if action is not taken to avert the situation.
Even of those who do have private sector pensions in place we at Enable, IFA’s based in Bishop's Stortford, would agree with the thoughts expressed this week in The Telegraph, “the two thirds who have joined their workplace scheme need to take an active interest in how their money is being managed. If not, it could cost them in the long run.
A combination of low contribution levels, poor investment returns and falling annuity rates means many of these DC schemes will produce far smaller pensions than those paid through final salary schemes, where people typically expect to retire on half their salary.”
If you have concerns about how your pension is being managed or simply want to understand what it is you have let Enable explore it with you.
Even of those who do have private sector pensions in place we at Enable, IFA’s based in Bishop's Stortford, would agree with the thoughts expressed this week in The Telegraph, “the two thirds who have joined their workplace scheme need to take an active interest in how their money is being managed. If not, it could cost them in the long run.
A combination of low contribution levels, poor investment returns and falling annuity rates means many of these DC schemes will produce far smaller pensions than those paid through final salary schemes, where people typically expect to retire on half their salary.”
If you have concerns about how your pension is being managed or simply want to understand what it is you have let Enable explore it with you.
How is your pension performing?
In the news this week “New research, seen exclusively by The Telegraph, shows that more than two thirds of the people who run private sector pension schemes admit that their members do not face "good outcomes" in retirement.
In other words, the trustees, consultants and advisers who set up and administer defined contributions (DC) schemes – the most common type of workplace pension – fear they won't provide sufficient income for a comfortable retirement.
The research, conducted by the insurance company Partnership, showed that there was widespread disengagement with pensions among the 2.5 million members of DC schemes – where a person's retirement income is based on contributions, investment returns and annuity rates, rather than earnings.
In total, eight in 10 of those surveyed said the average worker did not understand their pension. The professionals interviewed cited three main problems: apathy, a lack of education about retirement options and a "general fear of pensions".
All three things that we at Enable want to make sure you avoid by getting the best independent Financial advice with reputable IFA's in Bishop Stortford.
The Telegraph go on to report “This lack of engagement is less of a problem if you are still a member of a final salary or "defined benefit" scheme – where your pension is based on your earnings. Here, there are far fewer choices to make: members don't have to choose between different investment options or take out an annuity on retirement. It is the schemes' trustees that shoulder both the investment and longevity risks. If they make the wrong decisions, the scheme can suffer, but it is still obliged to pay out the promised pensions to members.”
If you not are in this more fortunate position Enable IFA's can help you plan for the future.
In other words, the trustees, consultants and advisers who set up and administer defined contributions (DC) schemes – the most common type of workplace pension – fear they won't provide sufficient income for a comfortable retirement.
The research, conducted by the insurance company Partnership, showed that there was widespread disengagement with pensions among the 2.5 million members of DC schemes – where a person's retirement income is based on contributions, investment returns and annuity rates, rather than earnings.
In total, eight in 10 of those surveyed said the average worker did not understand their pension. The professionals interviewed cited three main problems: apathy, a lack of education about retirement options and a "general fear of pensions".
All three things that we at Enable want to make sure you avoid by getting the best independent Financial advice with reputable IFA's in Bishop Stortford.
The Telegraph go on to report “This lack of engagement is less of a problem if you are still a member of a final salary or "defined benefit" scheme – where your pension is based on your earnings. Here, there are far fewer choices to make: members don't have to choose between different investment options or take out an annuity on retirement. It is the schemes' trustees that shoulder both the investment and longevity risks. If they make the wrong decisions, the scheme can suffer, but it is still obliged to pay out the promised pensions to members.”
If you not are in this more fortunate position Enable IFA's can help you plan for the future.
Friday, 26 August 2011
Investments...we can help you to decipher complex financial information
Enable Independent can help you decipher overly complex financial derivatives.
“Despite concerns about their role in the financial crisis, many experts are worried about the re-emergence of increasingly opaque investment products”, says File on 4. “Warren Buffett famously called them weapons of mass destruction and policymakers damned them for their part in the 2008 crash. But in Britain and elsewhere, complex financial derivatives are once again thriving. Take one of the fastest growing and most popular ways for people to invest their savings, the "exchange traded fund" (ETF).
ETFs began as a simple enough product - a cheap and convenient way for individuals or pension funds to invest in the performance of a stock market index such as the FTSE100. Early ETFs needed little financial engineering. Investors bought shares in an ETF, and the ETFs' managers bought shares of the companies in the index their ETF had promised to track. Just over half the ETFs sold in Britain are still like that.
In the trade these are known as "plain vanilla". Saker Nusseibeh Head of investment, Hermes
But, following the 2008 crash, large investment banks - mostly European - started heavily promoting ETFs of a very different flavour, called "synthetic" ETFs. To all appearances, synthetic ETFs look much the same as the original kind. But inside, they are completely different because they are based on complex derivatives. At Hermes Fund Managers, one of the biggest pension fund advisers in Britain, the head of investment Saker Nusseibeh told File on 4, "I think synthetic ETFs look too good to be true".
If something “looks too good to be true”, it usually is, Enable, an IFAin Bishop’s Stortford have the experience to help you make educated financial decisions about all financial matters.
Tuesday, 16 August 2011
An IFA - All you know is that personal pensions exist but you don’t have one
So a clear option is find out more about a personal pensions. This is an investment policy designed to provide a lump sum at retirement and an income for life.
A stakeholder pension is also a type of personal pension, operating in a similar way, except it has to conform to certain minimum standards set by the government. This means they must have lower charges and clear terms.
Personal pensions are "money purchase arrangements", meaning you regularly contribute to the policy and the money you save is put into investments for you such as bonds or stocks and shares.
Personal pensions are purchased from a provider such as an insurance company, High Street bank, building society or most typically, a pension company. They are far more complex than other financial products so do not appear on comparison websites as often.
Consumers are best off finding an independent financial adviser (IFA) who will have qualitative research on the different offers from providers.
Personal pension contributions can be invested in most asset classes. In other words, they can go into UK and overseas equities, fixed interest, cash and commercial property.
When you invest in your personal pension, there are no guarantees of returns and the value of your investments can fall as well as rise something worth talking through with Enable if you live in Bishop's Stortford or nearby.
A stakeholder pension is also a type of personal pension, operating in a similar way, except it has to conform to certain minimum standards set by the government. This means they must have lower charges and clear terms.
Personal pensions are "money purchase arrangements", meaning you regularly contribute to the policy and the money you save is put into investments for you such as bonds or stocks and shares.
Personal pensions are purchased from a provider such as an insurance company, High Street bank, building society or most typically, a pension company. They are far more complex than other financial products so do not appear on comparison websites as often.
Consumers are best off finding an independent financial adviser (IFA) who will have qualitative research on the different offers from providers.
Personal pension contributions can be invested in most asset classes. In other words, they can go into UK and overseas equities, fixed interest, cash and commercial property.
When you invest in your personal pension, there are no guarantees of returns and the value of your investments can fall as well as rise something worth talking through with Enable if you live in Bishop's Stortford or nearby.
Monday, 25 July 2011
Which Pensions? - Personal pension options
With more and more of the workforce having to be flexible and fewer and fewer young people heading for a job for life or even a career directions for life remind them about personal pension options.
The alternative private pension or personal pension, is offered by a provider such as an insurance company, High Street bank, building society or most typically, a pension company. You do not get any contribution into this from your employer, but it may offer more flexibility over how and where the money is invested.
The success of the investment and the fees charged by the provider will determine how much you get on retirement.
Remind them that at the moment you have to do most of the legwork especially if they are self-employed.
They will have to go and sort this out but you can also inform them that from 2012, the government wants all firms to offer a pension to their workers and they will be enrolled automatically unless staff opt out.
If employers do not offer membership of a pension scheme, they will have to enrole their staff into the new National Employment Savings Trust (Nest) set up by the government. To be enrolled, staff must be aged 22 or above, earn more than £5,715 a year, and have been in the job for at least 13 weeks.
Pensions experts have suggested that contributions into this scheme will still not be enough for today's young people to have a comfortable old age, but the Pensions Minister Steve Webb says it will get youngsters into the habit of saving for retirement.
If like many young people they are not so keen to heed the advice of their parents why not put them in touch with an IFA. Enable Independent of Bishop's Stortford will happily give advice to any young person wanting to plan for their future.
The alternative private pension or personal pension, is offered by a provider such as an insurance company, High Street bank, building society or most typically, a pension company. You do not get any contribution into this from your employer, but it may offer more flexibility over how and where the money is invested.
The success of the investment and the fees charged by the provider will determine how much you get on retirement.
Remind them that at the moment you have to do most of the legwork especially if they are self-employed.
They will have to go and sort this out but you can also inform them that from 2012, the government wants all firms to offer a pension to their workers and they will be enrolled automatically unless staff opt out.
If employers do not offer membership of a pension scheme, they will have to enrole their staff into the new National Employment Savings Trust (Nest) set up by the government. To be enrolled, staff must be aged 22 or above, earn more than £5,715 a year, and have been in the job for at least 13 weeks.
Pensions experts have suggested that contributions into this scheme will still not be enough for today's young people to have a comfortable old age, but the Pensions Minister Steve Webb says it will get youngsters into the habit of saving for retirement.
If like many young people they are not so keen to heed the advice of their parents why not put them in touch with an IFA. Enable Independent of Bishop's Stortford will happily give advice to any young person wanting to plan for their future.
State Pensions - that doesn't sound like much to live on?
Any self respecting teenager let alone 20 something will be able to figure out that current state pensions do not sound like much to live on. Pensioners can also get money from the benefits system but this still means money can be tight for many years, even if you have worked for your whole life.
The latest figures from the Office for National Statistics show that 53% of single UK pensioners had an income of less than £10,000 in 2008-9.
So you really need to hammer home that it really does count to start saving early. Teach them about compound interest because compound interest means if you save regularly from a young age, you will be better off than if you save more later in life.
Most pensions experts say that you should top-up the pension provision from the state with a workplace pension or a private pension.
Explain to them that In a final-salary scheme, the investment risk is taken by the employer and you are guaranteed a retirement income based on pay and length of service.
But generally a pension is a long-term investment. Remember investments, unlike savings, can go down or up in value depending on the success of the investment - such as shares on the stock market.
Explain to them that you will not be able to spend the money you put in now until you retire. However you do not have to pay much tax on this investment.
Let them know that if you join a workplace pension scheme, money comes out of your pay packet and into a pension pot. Your employer also puts money in, and there is tax relief on all this from the government.
You can then tell them that when you retire, the pot of money that you have built up can be used to buy a regular income in retirement, called an annuity.You are never too young to start saving for a pension, get your children to talk to an IFA about planning and saving for their futures
The latest figures from the Office for National Statistics show that 53% of single UK pensioners had an income of less than £10,000 in 2008-9.
So you really need to hammer home that it really does count to start saving early. Teach them about compound interest because compound interest means if you save regularly from a young age, you will be better off than if you save more later in life.
Most pensions experts say that you should top-up the pension provision from the state with a workplace pension or a private pension.
Explain to them that In a final-salary scheme, the investment risk is taken by the employer and you are guaranteed a retirement income based on pay and length of service.
But generally a pension is a long-term investment. Remember investments, unlike savings, can go down or up in value depending on the success of the investment - such as shares on the stock market.
Explain to them that you will not be able to spend the money you put in now until you retire. However you do not have to pay much tax on this investment.
Let them know that if you join a workplace pension scheme, money comes out of your pay packet and into a pension pot. Your employer also puts money in, and there is tax relief on all this from the government.
You can then tell them that when you retire, the pot of money that you have built up can be used to buy a regular income in retirement, called an annuity.You are never too young to start saving for a pension, get your children to talk to an IFA about planning and saving for their futures
Tuesday, 19 July 2011
BEST EVER BARCLAYS FIXED RATES ...
Lowest Ever Fixed Rates Launched
The Woolwich is reducing rates again on a significant number of its fixed and tracker mortgages by up to 0.50 percentage points to enable you to access some of the most competitive deals in the market. At the same time, we are launching two FirstBuy Direct mortgages to support the Governments initiative aimed at helping more first time buyers on to the housing ladder.
These products are being launched on Tuesday, 19 July 2011 and the key changes are:
• Launching our lowest ever 2 year Fixed Rate products.
• A market leading 2 year Fixed rate at 70% LTV, which has been cut by 0.24% to 2.54% and an equivalent version for Loyalty customers at 2.49%.
• Cuts of 0.30% to our 5 year Fixed Rates at 70% LTV which also make them the lowest ever available from Barclays - 3.98% for whole of market and 3.88% for Loyalty customers.
• The majority of the other cuts are on our 80% and 85% products to support customers who have smaller deposits
• The Great Escape, 2 Year Fixed Rate, 85% LTV has been reduced from 4.69% to 4.19%.
• Reducing our 80% LTV, Loyalty, Great Escape and Open Market Lifetime Trackers by 0.19%.
• Launching two new 3 year and 5 year Fixed Rate FirstBuy Direct products for customers who are buying a new-build property through the FirstBuy Direct scheme.
• Increasing the maximum loan size from £1m to £2m on our special 2 year Fixed Rate and Offset products, which also come with our Switch & Save remortgage package.
What are we launching?
Fixed Rates
Remortgage Only.
The Great Escape™
2 Year, 4.19%, £0 fee, 85% LTV, min loan £50k - down by 0.50%.
Remortgage 2 Year Fixed Rates.
(Customers use their own Solicitors and pay all Legal Fees)
2 Year, 4.19%, £0 fee, 85% LTV, min loan £50k, £375 cash back - down by 0.50%.
Loyalty Mortgage.
2 Year, 2.49%, £999 fee, 70% LTV - down by 0.20%.
2 Year, 3.09%, £999 fee, 75% LTV - down by 0.28%.
2 Year, 3.79%, £999 fee, 80% LTV - down by 0.10%.
5 Year, 3.88%, £999 fee, 70% LTV - down by 0.30%.
5 Year, 5.28%, £999 fee, 85% LTV - down by 0.20%.
Core.
Special 2 Year, 2.68%, £1,999 fee, 70% LTV, min loan £250k/max loan £2m - increase in max loan amount by £1m.
2 Year, 2.54%, £999 fee, 70% LTV - down by 0.24%.
2 Year, 3.19%, £999 fee, 75% LTV - down by 0.28%.
2 Year, 3.89%, £999 fee, 80% LTV - down by 0.10%.
3 Year, 3.58%, £499 fee, 70% LTV, min. loan £25k - down by 0.20%.
5 Year, 3.98%, £999 fee, 70% LTV - down by 0.30%.
5 Year, 5.48%, £999 fee, 85% LTV - down by 0.21%.
TRACKERS:
Remortgage Only
The Great Escape™
Lifetime Tracker, BBBR +2.99%, £0 fee, 80% LTV, min. loan £50k - down by 0.19%.
Remortgage Lifetime Trackers.
(Customers use their own Solicitors and pay all Legal Fees)
Lifetime Tracker, BBBR +2.99%, £0 fee, 80% LTV, min loan £50k, £375 cash back - down by 0.19%.
Loyalty Tracker.
2 Year Loyalty Tracker, BBBR +2.59%, £999 fee, 80% LTV, follow on rate BBBR + 2.69 - down by 0.19%.
Core Tracker.
Lifetime Tracker, BBBR +2.69%, £999 fee, 80% LTV - down by 0.19%.
Offset Tracker.
Special Offset Tracker, BBBR+2.29%, £1,499 fee, 70% LTV, min loan £200k/max loan £2m - increase in max loan amount by £1m.
FirstBuy Direct.
3 Year, 4.59%, £299 fee, 75% LTV, min loan £25,000 - NEW.
5 Year, 5.49%, £299 fee, 75% LTV, min loan £25,000 - NEW.
What are we withdrawing?
FIXED RATES:
Remortgage Only.
The Great Escape™
2 Year, 4.69%, £0 fee, 85% LTV, min loan £50k.
Remortgage 2 Year Fixed Rates.
(Customers use their own Solicitors and pay all Legal Fees)
2 Year, 4.69%, £0 fee, 85% LTV, min loan £50k, £375 cash back.
Loyalty Mortgage.
2 Year, 2.69%, £999 fee, 70% LTV.
2 Year, 3.37%, £999 fee, 75% LTV.
2 Year, 3.89%, £999 fee, 80% LTV.
5 Year, 4.18%, £999 fee, 70% LTV.
5 Year, 5.48%, £999 fee, 85% LTV.
Core.
Special 2 Year, 2.68%, £1,999 fee, 70% LTV, min loan £250k/max loan £1m.
2 Year, 2.78%, £999 fee, 70% LTV.
2 Year, 3.47%, £999 fee, 75% LTV.
2 Year, 3.99%, £999 fee, 80% LTV.
3 Year, 3.78%, £499 fee, 70% LTV, min. loan £25k
5 Year, 4.28%, £999 fee, 70% LTV.
5 Year, 5.69%, £999 fee, 85% LTV.
Large Loans.
2 Year, 3.49%, £3,000 fee, 60% LTV, min. loan £1m/max. loan £1.5m.
2 Year, 3.69%, £3,000 fee, 70% LTV, min. loan £1m/max. loan £1.5m.
TRACKERS:
Remortgage Only
The Great Escape™
Lifetime Tracker, BBBR +3.18%, £0 fee, 80% LTV, min. loan £50k.
Remortgage Lifetime Trackers.
(Customers use their own Solicitors and pay all Legal Fees)
Lifetime Tracker, BBBR +3.18%, £0 fee, 80% LTV, min loan £50k, £375 cash back.
Loyalty Tracker.
2 Year Loyalty Tracker, BBBR +2.78%, £999 fee, 80% LTV, follow on rate BBBR + 2.88%.
Core Tracker.
Lifetime Tracker, BBBR +2.88%, £999 fee, 80% LTV.
Offset Tracker.
Special Offset Tracker, BBBR+2.29%, £1,499 fee, 70% LTV, min loan £200k/max loan £1m.
Large Loans.
Offset Tracker, BBBR +2.47%, £5,000 fee, 60% LTV, min. loan £1m/max. loan £1.5m.
Offset Tracker, BBBR +2.99%, £5,000 fee, 70% LTV, min. loan £1m/max. loan £1.5m.
For full details of our new mortgage product range please refer to the new Rate Sheets dated 19 July 2011.
*MAX applications may be submitted up until 9pm Wednesday, 20 July 2011, but no support is available after 5pm.
The Woolwich is reducing rates again on a significant number of its fixed and tracker mortgages by up to 0.50 percentage points to enable you to access some of the most competitive deals in the market. At the same time, we are launching two FirstBuy Direct mortgages to support the Governments initiative aimed at helping more first time buyers on to the housing ladder.
These products are being launched on Tuesday, 19 July 2011 and the key changes are:
• Launching our lowest ever 2 year Fixed Rate products.
• A market leading 2 year Fixed rate at 70% LTV, which has been cut by 0.24% to 2.54% and an equivalent version for Loyalty customers at 2.49%.
• Cuts of 0.30% to our 5 year Fixed Rates at 70% LTV which also make them the lowest ever available from Barclays - 3.98% for whole of market and 3.88% for Loyalty customers.
• The majority of the other cuts are on our 80% and 85% products to support customers who have smaller deposits
• The Great Escape, 2 Year Fixed Rate, 85% LTV has been reduced from 4.69% to 4.19%.
• Reducing our 80% LTV, Loyalty, Great Escape and Open Market Lifetime Trackers by 0.19%.
• Launching two new 3 year and 5 year Fixed Rate FirstBuy Direct products for customers who are buying a new-build property through the FirstBuy Direct scheme.
• Increasing the maximum loan size from £1m to £2m on our special 2 year Fixed Rate and Offset products, which also come with our Switch & Save remortgage package.
What are we launching?
Fixed Rates
Remortgage Only.
The Great Escape™
2 Year, 4.19%, £0 fee, 85% LTV, min loan £50k - down by 0.50%.
Remortgage 2 Year Fixed Rates.
(Customers use their own Solicitors and pay all Legal Fees)
2 Year, 4.19%, £0 fee, 85% LTV, min loan £50k, £375 cash back - down by 0.50%.
Loyalty Mortgage.
2 Year, 2.49%, £999 fee, 70% LTV - down by 0.20%.
2 Year, 3.09%, £999 fee, 75% LTV - down by 0.28%.
2 Year, 3.79%, £999 fee, 80% LTV - down by 0.10%.
5 Year, 3.88%, £999 fee, 70% LTV - down by 0.30%.
5 Year, 5.28%, £999 fee, 85% LTV - down by 0.20%.
Core.
Special 2 Year, 2.68%, £1,999 fee, 70% LTV, min loan £250k/max loan £2m - increase in max loan amount by £1m.
2 Year, 2.54%, £999 fee, 70% LTV - down by 0.24%.
2 Year, 3.19%, £999 fee, 75% LTV - down by 0.28%.
2 Year, 3.89%, £999 fee, 80% LTV - down by 0.10%.
3 Year, 3.58%, £499 fee, 70% LTV, min. loan £25k - down by 0.20%.
5 Year, 3.98%, £999 fee, 70% LTV - down by 0.30%.
5 Year, 5.48%, £999 fee, 85% LTV - down by 0.21%.
TRACKERS:
Remortgage Only
The Great Escape™
Lifetime Tracker, BBBR +2.99%, £0 fee, 80% LTV, min. loan £50k - down by 0.19%.
Remortgage Lifetime Trackers.
(Customers use their own Solicitors and pay all Legal Fees)
Lifetime Tracker, BBBR +2.99%, £0 fee, 80% LTV, min loan £50k, £375 cash back - down by 0.19%.
Loyalty Tracker.
2 Year Loyalty Tracker, BBBR +2.59%, £999 fee, 80% LTV, follow on rate BBBR + 2.69 - down by 0.19%.
Core Tracker.
Lifetime Tracker, BBBR +2.69%, £999 fee, 80% LTV - down by 0.19%.
Offset Tracker.
Special Offset Tracker, BBBR+2.29%, £1,499 fee, 70% LTV, min loan £200k/max loan £2m - increase in max loan amount by £1m.
FirstBuy Direct.
3 Year, 4.59%, £299 fee, 75% LTV, min loan £25,000 - NEW.
5 Year, 5.49%, £299 fee, 75% LTV, min loan £25,000 - NEW.
What are we withdrawing?
FIXED RATES:
Remortgage Only.
The Great Escape™
2 Year, 4.69%, £0 fee, 85% LTV, min loan £50k.
Remortgage 2 Year Fixed Rates.
(Customers use their own Solicitors and pay all Legal Fees)
2 Year, 4.69%, £0 fee, 85% LTV, min loan £50k, £375 cash back.
Loyalty Mortgage.
2 Year, 2.69%, £999 fee, 70% LTV.
2 Year, 3.37%, £999 fee, 75% LTV.
2 Year, 3.89%, £999 fee, 80% LTV.
5 Year, 4.18%, £999 fee, 70% LTV.
5 Year, 5.48%, £999 fee, 85% LTV.
Core.
Special 2 Year, 2.68%, £1,999 fee, 70% LTV, min loan £250k/max loan £1m.
2 Year, 2.78%, £999 fee, 70% LTV.
2 Year, 3.47%, £999 fee, 75% LTV.
2 Year, 3.99%, £999 fee, 80% LTV.
3 Year, 3.78%, £499 fee, 70% LTV, min. loan £25k
5 Year, 4.28%, £999 fee, 70% LTV.
5 Year, 5.69%, £999 fee, 85% LTV.
Large Loans.
2 Year, 3.49%, £3,000 fee, 60% LTV, min. loan £1m/max. loan £1.5m.
2 Year, 3.69%, £3,000 fee, 70% LTV, min. loan £1m/max. loan £1.5m.
TRACKERS:
Remortgage Only
The Great Escape™
Lifetime Tracker, BBBR +3.18%, £0 fee, 80% LTV, min. loan £50k.
Remortgage Lifetime Trackers.
(Customers use their own Solicitors and pay all Legal Fees)
Lifetime Tracker, BBBR +3.18%, £0 fee, 80% LTV, min loan £50k, £375 cash back.
Loyalty Tracker.
2 Year Loyalty Tracker, BBBR +2.78%, £999 fee, 80% LTV, follow on rate BBBR + 2.88%.
Core Tracker.
Lifetime Tracker, BBBR +2.88%, £999 fee, 80% LTV.
Offset Tracker.
Special Offset Tracker, BBBR+2.29%, £1,499 fee, 70% LTV, min loan £200k/max loan £1m.
Large Loans.
Offset Tracker, BBBR +2.47%, £5,000 fee, 60% LTV, min. loan £1m/max. loan £1.5m.
Offset Tracker, BBBR +2.99%, £5,000 fee, 70% LTV, min. loan £1m/max. loan £1.5m.
For full details of our new mortgage product range please refer to the new Rate Sheets dated 19 July 2011.
*MAX applications may be submitted up until 9pm Wednesday, 20 July 2011, but no support is available after 5pm.
Which Pensions? - Pensions need an image overhaul
We've been browsing and wondering what other pension experts and providers might suggest to help solve the UK’s pension pains.
Ros Altmann, director-general of Saga, the financial services company for the over-50s, and a former pensions adviser to the Government, believes "pension" has lingering negative associations with scandal and disappointment. "'Pension' has become a negative word and it should be used only for the money paid to you by the state," she says. "The rest are your own savings for your own future and should be called something else." This is where IFA’s can really help you to plan independently how to use your money.
She also thinks. "We need to make pensions more fun, perhaps with a lottery prize of £1m every month to get people interested," she said. "Many young people play the National Lottery each week hoping for a win, but their pound is gone. Many others have premium bonds hoping for a big prize, but they earn nothing on their money. With a pension lottery prize, people would still have their money, would get extra from tax relief or even employer contributions and would also have the potential for investment returns." The cost relative to current spending on pensions marketing would be small, she admits, but offering savers the potential of big gains today, not just in the future, could reinvigorate long-term savings.
An interesting idea but if you want to plan for using your savings, whatever you call them, to work for your future Bishop Stortfords IFA’s can help you.
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