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 

Cultivating a savings habit

Enables IFA’s in Bishops Stortford are great believers in the value of cultivating a habit of making savings. Much financial stability can come from saving but in the current economic climate having enough money for savings has proved difficult for many families.

 Two recent surveys have revealed the extent to which families have lost the savings habit to cover the cost of unplanned events, such as fixing the car or paying for repairs in the home. The independent Money Advice Service, as part of its Financial Capability Survey, asked 3,500 people across the UK how they would pay for an unexpected bill of up to £300 within a week. Although 22% of them would dip into their savings (and 43% could pay with day-to-day cash), some 24% would use high-cost credit, ask for family help, or face problems.

Prof Ashton, of Bangor University, said the use of overdrafts and other loans was a much more expensive way to pay bills. Yet low interest rates are undermining any incentive to save. "We are asking young people to save in an environment where there are no Brownie points for saving," said Janette Rutterford, professor of financial management at The Open University.

Failing to divert money into savings is the result of a number of reasons, according to Prof Ashton and Prof Rutterford.  Firstly, there is no longer a savings culture in the UK that mirrors a thrifty society such as China. There is easy access to credit and confidence in the safety of savings took a hit during the financial crisis and most importantly, interest rates have been pitiful for more than seven years. Enable’s IFAs in Bishops Stortford can help you get back into the habit of saving for financial stability.

Source: The Independent

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  

Loosing track of your savings

Enable’s IFA’s in Bishop’s Stortford know that many of us spend significant amounts of our lives trying to build up savings so it seems extraordinary that some savers lose track of finances after retirement according to the research for Fidelity Worldwide Investment.

The findings were drawn from a survey of more than 1,000 people, roughly two-thirds of those who were retired and a third who were still working in a full or part-time capacity. Those surveyed had some form of retirement savings on top of a state pension, although their money was not necessarily held in a pension scheme. Clearly the people surveyed had been interested in saving but it seems, as the research suggests, that savers are more likely to lose track of their finances once they are in retirement. One in five (20%) people aged over 55 who were still working did not know the value of their pension savings, this increased to 30% among those who had retired.

The study found evidence to suggest that 13% of over-55s did not know how they were going to fund essential outgoings.  Over-55s in the Midlands were found to be the most out of touch with their retirement savings, with more than one in three (35%) saying they did not know how much their combined savings were worth. Nearly a third (31%) in Scotland and a similar proportion (30%) in Wales did not know the overall value of their pension savings. People in London were the most engaged with their pension savings, with almost four-fifths (78%) knowing the value of their pots.

It may be easy to slip in to apathy as you approach retirement feeling like you do not have too many resources and clearly saving more earlier is better but Enable’s IFA’s in Bishop’s Stortford may be able to help you make the best of what you have.

Source - AOL Press Association

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