Enable Independent were pleased to see that the Government is considering removing requirements for employers to enroll people who have had a lifetime allowance protections in place. As people who have a lifetime allowance ‘fixed protection’ could face huge tax bills if their employers accidentally enroll them into a pension scheme.
The reason this will happen is because their fixed protection will become void if they make any additional contributions, and any pension savings would be taxed at 55%.
They Government are going to discuss making the auto-enrollment scheme easier for employers to understand the rules. As well as allowing people to permanently opt out of schemes rather than being enrolled after three years.
The Government is considering removing the requirement for employers to automatically enroll people who have lifetime allowance protections in place. The idea will be floated in a consultation next month outlining ways to simplify auto-enrollment rules for employers.
However if you are in a defined contribution scheme and have not got a lifetime allowance in place then you will be able to get tax relief as a percentage of your earnings. This means that money that would have previously gone to into tax will now go into your pension. Under the new pension changes the government has set a minimum percentage that has to be contributed in total, these contributions will come from you, your employer and from the tax relief and will be worked out as a percentage of your earnings.
If you need help working out what these changes mean to you, or are worried about your lifetime allowance protection then contact Enable, Independent Financial Advisor's in Bishop's Stortford.
Readers might also be interested in: How much will be paid into my pension pot under the auto-enroll scheme?
Tuesday, 12 February 2013
Need help planning for your future care? We discuss the new £75K LTC cap
At Enable Independent we help people to plan for each stage of their lives, and one very important aspect of this is Estate Planning, preparing ourselves and our families for the costs we might have to pay if we end up having to receive expensive care in our old age. So new plans to introduce a cap on of £75,00 on long-term care costs funded by the Government is a step in the right direction.
The new plan is set to be introduced in April 2017, will not include accommodation or food costs. As well as the increased cap the government will also increase the asset threshold which people do not receive means-tested help from the Government from £23,250 to £123,000.
The new scheme will be funded partly by extending the freeze on the inheritance tax threshold at £325.00, or up to £650,000 for couples.
These new measures the Government states are proving that despite the tough economic times, that they are determined to get behind the everyone who has worked hard for what they have. However critics argue that the plans do not include people who are already in care, and that it is a scheme for some and not all.
If you are concerned about planning your old age, from investments, pensions and Estate Planning, then why not call one of your Bishop's Stortford Independent financial advisors, and we will help you to create your own tailor made plan to suit you.
The new plan is set to be introduced in April 2017, will not include accommodation or food costs. As well as the increased cap the government will also increase the asset threshold which people do not receive means-tested help from the Government from £23,250 to £123,000.
The new scheme will be funded partly by extending the freeze on the inheritance tax threshold at £325.00, or up to £650,000 for couples.
These new measures the Government states are proving that despite the tough economic times, that they are determined to get behind the everyone who has worked hard for what they have. However critics argue that the plans do not include people who are already in care, and that it is a scheme for some and not all.
If you are concerned about planning your old age, from investments, pensions and Estate Planning, then why not call one of your Bishop's Stortford Independent financial advisors, and we will help you to create your own tailor made plan to suit you.
95% LTV Mortgages, Government discuss new scheme…
Enable Independent are pleased to see that the Treasury is in the process of holding talks with the main lenders and trade bodies to see how mortgage indemnity guarantees can be used to enable would-be- buyers access to 95 per cent LTV (loan-to-value) mortgages, to buy any type of property.
Last March, the Government launched the NewBuy, MIG (mortgage indemnity guarantee) scheme, offering 95 per cent LTV mortgages for new builds, as a way of giving a boost to the economy and the construction industry. The NewBuy, MIG scheme has been underwritten by both the government and the housebuilder.
Three large lenders, NatWest, Nationwide and Barclays launched products for the NewBuy scheme, including NatWest who offered a two-year fix at 4.29% at 95% LTV with a £499 fee, and a five-year fix at 4.99% at 95% LTV with a £499 fee.
However the scheme has proved too restrictive for people wanting to buy anything other than a new property, so nearly one year on from its launch, the Treasury is now looking into ways in which mortgage insurance could be used to solve the problem, of people accessing 95% LTV mortgages for other properties.
One of the main problem facing new or first-time buyers is the amount of money needed to put down to buy a house, there have been several articles covering topics such as ‘Are Britons becoming a Nation of renters?’ Home ownership in the past for many young people has become a distant dream. Recent figures show that there has been a huge rise in private renting over the past few years, from 9% of households to 15%.
A Treasury spokeswoman stated: “We have said that we will do more to help families who can afford a mortgage, but are unable to raise a large deposit, to buy their own homes. We are continuing to look at what can be done and will provide further details in due course.”
If you are struggling to get a mortgage, and need help in finding ways to put aside enough funds, then why not contact your local Independent Financial Advisors, we have all of the knowledge to help you to plan your future to become a home owner, as well as access to the entire mortgage place.
Last March, the Government launched the NewBuy, MIG (mortgage indemnity guarantee) scheme, offering 95 per cent LTV mortgages for new builds, as a way of giving a boost to the economy and the construction industry. The NewBuy, MIG scheme has been underwritten by both the government and the housebuilder.
Three large lenders, NatWest, Nationwide and Barclays launched products for the NewBuy scheme, including NatWest who offered a two-year fix at 4.29% at 95% LTV with a £499 fee, and a five-year fix at 4.99% at 95% LTV with a £499 fee.
However the scheme has proved too restrictive for people wanting to buy anything other than a new property, so nearly one year on from its launch, the Treasury is now looking into ways in which mortgage insurance could be used to solve the problem, of people accessing 95% LTV mortgages for other properties.
One of the main problem facing new or first-time buyers is the amount of money needed to put down to buy a house, there have been several articles covering topics such as ‘Are Britons becoming a Nation of renters?’ Home ownership in the past for many young people has become a distant dream. Recent figures show that there has been a huge rise in private renting over the past few years, from 9% of households to 15%.
A Treasury spokeswoman stated: “We have said that we will do more to help families who can afford a mortgage, but are unable to raise a large deposit, to buy their own homes. We are continuing to look at what can be done and will provide further details in due course.”
If you are struggling to get a mortgage, and need help in finding ways to put aside enough funds, then why not contact your local Independent Financial Advisors, we have all of the knowledge to help you to plan your future to become a home owner, as well as access to the entire mortgage place.
Monday, 4 February 2013
Good news as employment falls in the UK
Unemployment in the UK fell by 37,000 in the three months to November 2012, according to the latest statistics released by the Office for National Statistics (ONS).
This means that the jobless total stood at 2.49 million. Representing a fall of 7.7% in the period, unemployment was at its lowest level for 18 months.
As always, there was wide variation between the regions, with the North East reporting a jobless rate of 9.1%, whilst the South West showed only 5.5% unemployed.
The ONS also report that there were 494,000 the highest number recorded since 2008. At the same time, they reported that there were 29.7 million people in employment, which itself is a record high.
However, youth unemployment (those aged between 16-24 years) rose slightly for the first time since last summer, with 957,000 jobless, an increase of 1,000.
Commenting on these figures, Mark Beatson, chief economist of the Chartered Institute of Personnel and Development (CIPD) said this was: “a continuing cause of concern.”
“The number of unemployed 18-24 year olds has increased whereas unemployment in age groups 25-64 has fallen. If this trend continues we risk a permanent scar on the labour market,”
He went on to add: “It is in employers’ interests to build their future skills base by recruiting the next generation of workers.”
Many economic commentators remain baffled by the fact that the number of unemployed continues to fall, even though the UK’s economy has been very sluggish. They expected to see Q4’s GDP figures record a contraction and ONS data duly obliged, showing a 0.3% dip.
A caveat to these encouraging figures is the fact that we have seen a number of high street retailers go to the wall in Q1 2013; with Comet, Jessops, Blockbuster and HMV entering administration, with the inevitable large-scale job losses to come in the short term.
This means that the jobless total stood at 2.49 million. Representing a fall of 7.7% in the period, unemployment was at its lowest level for 18 months.As always, there was wide variation between the regions, with the North East reporting a jobless rate of 9.1%, whilst the South West showed only 5.5% unemployed.
The ONS also report that there were 494,000 the highest number recorded since 2008. At the same time, they reported that there were 29.7 million people in employment, which itself is a record high.
However, youth unemployment (those aged between 16-24 years) rose slightly for the first time since last summer, with 957,000 jobless, an increase of 1,000.
Commenting on these figures, Mark Beatson, chief economist of the Chartered Institute of Personnel and Development (CIPD) said this was: “a continuing cause of concern.”
“The number of unemployed 18-24 year olds has increased whereas unemployment in age groups 25-64 has fallen. If this trend continues we risk a permanent scar on the labour market,”
He went on to add: “It is in employers’ interests to build their future skills base by recruiting the next generation of workers.”
Many economic commentators remain baffled by the fact that the number of unemployed continues to fall, even though the UK’s economy has been very sluggish. They expected to see Q4’s GDP figures record a contraction and ONS data duly obliged, showing a 0.3% dip.
A caveat to these encouraging figures is the fact that we have seen a number of high street retailers go to the wall in Q1 2013; with Comet, Jessops, Blockbuster and HMV entering administration, with the inevitable large-scale job losses to come in the short term.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
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 Services 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.
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Services 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.
No change on inflation front...
Whilst stubbornly remaining above the Bank of England’s target level of 2%, which has been the case since November 2009, the UK Consumer Prices Index (CPI) remained at 2.7% in December for the third month in a row.
Figures released by the Office for National Statistics (ONS) cited an increase in both gas and electricity prices as the culprit, with gas rising by 3.9% and electricity by 5.2% compared to the same month in 2011. Also non-alcoholic drink and food prices rose by 3.8%. However, these rises were offset by a fall in air travel costs, down by 6.8%, and motor fuel, which fell by 0.2%.
Commenting on these figures, Phil Gooding, of the ONS was quoted as saying:”By far the largest upward effect comes from domestic gas and electricity. Here we saw the majority of the pre-announced price increases coming into the index for December.”
Responding to the disappointing data, the UK Treasury pointed out that inflation has nearly halved from its recent peak of 5.2% and that the government has helped households by increasing tax-free personal allowances and stopping the planned fuel duty increase that had been expected in January.
Meanwhile, the Retail Prices Index (RPI), which includes housing costs, increased slightly to 3.1% from its previous level of 3%. Compounding the effect this inflation has on the average household, pay growth remains stunted, as this is the fourth year in a row that the growth in pay has remained below the headline inflation rate.
Commenting on these figures, Phil Gooding, of the ONS was quoted as saying:”By far the largest upward effect comes from domestic gas and electricity. Here we saw the majority of the pre-announced price increases coming into the index for December.”
Responding to the disappointing data, the UK Treasury pointed out that inflation has nearly halved from its recent peak of 5.2% and that the government has helped households by increasing tax-free personal allowances and stopping the planned fuel duty increase that had been expected in January.
Meanwhile, the Retail Prices Index (RPI), which includes housing costs, increased slightly to 3.1% from its previous level of 3%. Compounding the effect this inflation has on the average household, pay growth remains stunted, as this is the fourth year in a row that the growth in pay has remained below the headline inflation rate.
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 Services 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.
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 Services 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.
FTSE - experiences highest level for years..
Markets: (Data compiled by The Outsourced Marketing
Department)
January saw a global recovery in equities, with the FTSE 100
seeing its best level for nearly four-and-a-half years, closing at 6,276.9, up
6.43% since the New Year and now only 4.19% under its long-term trend. The FTSE
250 was more impressive, rising 11.9% to finish at 13,847.1.
The Eurostoxx50 improved by 4.3%, closing at 2,749.27, whilst the FTSE All-World index flirted with its highest level since 2008, we also saw Asian markets improve.
Investor sentiment remained bullish in the UK, USA, China, and even in Germany, where recently the Eurozone crisis had dampened market enthusiasm. With the Euro currency now trading at around $1.37, its highest level since November 2011, sentiment has dramatically improved. Wall Street saw the Dow Jones end the month at 13,860.58, up 5.77% and the S&P 500 reaching a five-year high, with many of the constituent companies reporting better than expected earnings data.
With ultra-low interest rates continuing in the USA, Europe and Japan, fuelling the risk appetite of sophisticated investors, the more cautious players may be encouraged to join the party.
Indeed the Tokyo market saw the Nikkei rise by 7.15% to end January at 11,138.66, and reach a near three-year high. The currencies markets saw UK Sterling at $1.59 against the greenback and lower at €1.17 against the Euro. The Euro itself was worth $1.37 up 3.41% in the month and sitting at a fourteen month high.
Commodities were in demand with the Brent Crude benchmark for oil rising 4% to $115.55 and elsewhere copper rising 1.2%. Gold, however, moved little in the month, finishing at $1,664.63, off 0.67%.
Investor sentiment remained bullish in the UK, USA, China, and even in Germany, where recently the Eurozone crisis had dampened market enthusiasm. With the Euro currency now trading at around $1.37, its highest level since November 2011, sentiment has dramatically improved. Wall Street saw the Dow Jones end the month at 13,860.58, up 5.77% and the S&P 500 reaching a five-year high, with many of the constituent companies reporting better than expected earnings data.
With ultra-low interest rates continuing in the USA, Europe and Japan, fuelling the risk appetite of sophisticated investors, the more cautious players may be encouraged to join the party.
Indeed the Tokyo market saw the Nikkei rise by 7.15% to end January at 11,138.66, and reach a near three-year high. The currencies markets saw UK Sterling at $1.59 against the greenback and lower at €1.17 against the Euro. The Euro itself was worth $1.37 up 3.41% in the month and sitting at a fourteen month high.
Commodities were in demand with the Brent Crude benchmark for oil rising 4% to $115.55 and elsewhere copper rising 1.2%. Gold, however, moved little in the month, finishing at $1,664.63, off 0.67%.
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 Services 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.
House sales and mortgage availability rise...
The UK housing market saw an increase in sales in late 2012,
boosted by a strong increase in mortgage availability, enabling the number of
first-time buyers to rise by 8% in November, to 21,700.
Reporting on these numbers, the Council of Mortgage Lenders (CML)
also stated that the total level of new mortgages in November was up by 6%, to
52,700 buyers. This is an increase of 13% on the previous year and the highest
number reported in a November since 2007.
Paul Smee, a director of the CML said: “Encouraging activity
in the first-time buyer sector in November contributed to an uplift in house
purchase lending, suggesting that the underlying trend for year-on-year
increases should continue.”
He went on to add: “We expect the Funding for Lending scheme
to continue to encourage a downward drift in interest rates.This may prompt an increase in remortgage activity as
borrowers
seek to take advantage of lower rates.”
Reinforcing this
bullish sentiment, Barratt, one of the UK’s largest house builders, reported
that their order book for 2012 was up 35% from the previous year and that: “Whilst
the availability of mortgage finance remains the key constraint to industry
growth, we have started to see some improvements coming through.
“Expectations are that mortgage lending should increase in
2013, supported by the Bank of England’s Funding for Lending Scheme.” Meanwhile,
the Royal Institution of Chartered Surveyors (RICS) stated that, among those of
their members who also operate as estate agents, more expect their sales to
increase in the first quarter of 2013 than expect them to fall.
Reader might also be interested in: Good news for the housing market…
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 Services 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.
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 Services 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.
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