Have you considered critical illness cover?

It is something that you always assume will happen to someone else but sadly Enable’s IFAs in Bishop’s Stortford know it can happen to anyone. Some recent research form the Mortgage Advice Bureau, revealed that over 50% of homeowners aged 18 to 40 do not currently have critical illness cover (CIC).

Critical illness cover is a form of insurance which pays out a tax-free lump sum in the event that you are diagnosed with a specified illness or medical condition during the term of the policy. Critical illness cover, also known as critical illness insurance, is a long-term insurance policy to cover specific serious illnesses listed within a policy. Should the worst happen, it gives a tax-free ‘lump sum’ – a one-off payment, to help pay for your mortgage or rent, debts, or pay for alterations to your home such as wheelchair access should you need it, but it’s your choice how you spend it.

Every year 1m workers in the UK unexpectedly find themselves unable to work because of injury or illness, the kinds of critical illnesses that might be covered by CIC are things like a heart attack, a stroke, certain types and stages of cancer and debilitating conditions such as multiple sclerosis or muscular dystrophy.  The majority of CIC policies also cover permanent disabilities as a result of injury or illness. Some policies offer monthly payments others pay out once and then the policy ends. Some policies will make a smaller payment for less severe conditions. This type of insurance does not pay out if you die. Enables IFA’s in Bishops Stortford want to make sure you have the insurance covers you need understanding the policy details so make sure you’re fully aware of them and that they cover your need.

Source: https://www.moneyadviceservice.org.uk/en/articles/critical-illness-insurance-do-you-need-it

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

Running out of pension funds

Enable’s experienced IFA’s in Bishops Stortford have supported many clients to set up pensions and have also helped to manage many pension finances. Recently, the apparently good news from The Office for National Statistics (ONS) is that there are over half a million people aged 90 or over, and more than 14,500 are 100 or more. The figures amount to a 65% increase in a decade, with the number of elderly men beginning to gain ground on the number of elderly women.  The problem is how to fund this ever increasing lifespan either as the state or as individuals. We already have more over 60s in our society than children.

Research from Aviva has found that men in Britain estimate they will live for around 15 years after they stop working (at around 65) when they’ll probably live another 19 years and women think they’ll survive another 19 years when they are actually likely to be around for another 21 years. Just three or four extra years of retirement requires around £35,000 in additional pensions savings to be able to fund that time.  Gareth Shaw, head of consumer affairs at Saga Investment Services recently said already “today’s retirees routinely underestimate how much they need to have a decent income in retirement. [Our research] found over 50s need double the amount they think to generate the kind of income that will leave them comfortably off in their later years.”

If you have worries about how you are going to fund your retirement Enable’s IFAs in Bishops Stortford can talk you through your options.

Source: http://www.independent.co.uk/money/growing-old-disgracefully-why-longer-life-is-ruining-your-wealth-a7345941.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

MARKETS: (DATA COMPILED BY THE OUTSOURCED MARKETING DEPARTMENT)

September brought a renewal of investor confidence in global equity markets, as most of the major UK indices covered here saw gains. Whilst gaining 1.74% over the month, the FTSE100 did, however, see some volatility, dipping to an intra-month low of 6,665.6, before recovering to end at 6,899.3 up 117.8 points. The wider FTSE250 fared less well adding 0.78% or 138.6 points,to close at 17,871.4, whilst the junior AIM market surpassed that, rising just over 27 points to 819.1 for an improvement of 3.51%.

The American markets remained becalmed, as the Dow Jones slipped by 0.5%, to end the month at 18,308.15 with the technology-based Nasdaq improving to 5,312.0 for a 1.89% rise.
The continuing political machinations in Europe saw the Eurostoxx50 lose a marginal 0.69% to record a closing level of 3,002.24 and over in Japan, still suffering from continued deflation and economic stagnation, the Nikkei225 reversed August improvements to lose 2.59% to end September at 16,449.84.

The foreign exchange markets saw Sterling continue to drift lower against the US Dollar to $1.29 a 2.27% decline over the month and to €1.15 against the Euro, again a fall of 2.54%. Meanwhile, the US Dollar slipped by just under 1% against the Euro, finishing September at $1.12.
In the energy markets Oil, as measured by the Brent Crude benchmark, also had a volatile month, but did see the price improve a little to $49.06 a barrel, for a gain of 4.29%. It is now showing a 31.6% rise in price since the turn of the year.

Gold, often regarded as a safe-haven investment, clawed back some of its August losses to end September at $1,315.93 a troy ounce to record a 0.54% increase in value.

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 EMPLOYMENT AT RECORD HIGH

The most recently released UK labour market figures, based on the May to July 2016 period, show the UK’s unemployment rate remains at 4.9%, down from the 5.5% recorded a year earlier. With 1.63 million people out of work, a fall of 39,000 from the Feb-April quarter and 190,000 less than the same period last year; its lowest level seen since the March- May 2008 quarter.

There were in fact 559,000 more people in employment in the May- July 2016 quarter, compared with the same period a year earlier. At 74.5% there are more people in work now than since comparable records began in 1971. Of these people, 23.5 million were in full-time employment and 8.51 million in part-time employment.

Those aged from 16 to 64 years and deemed economically inactive (those not working and not seeking or available to work) fell by 195,000 from the previous year to 8.83 million.
The number of people claiming unemployment benefits was recorded at 771,000 for August, made up of 557,900 claiming the Jobseeker’s Allowance and 213,100 people claiming Universal Credit.

At the same time, the Office for National Statistics (ONS) released data showing that average weekly earnings for employees increased by 2.3% including bonuses and by 2.1% excluding bonuses compared with the same period last year.

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 RISES TO SEVENTH PLACE IN GLOBAL ECONOMIC COMPETITIVENESS

In a rebut to the Brexit doom-mongers, the World Economic Forum (WEF) has announced, in their ‘Global Competitive Report 2016-2017’, that the United Kingdom has risen to seventh place in the league of the world’s most competitive economies, leapfrogging Hong Kong, Japan, and Finland. The WEF is a respected think-tank that holds a major conference each year in Davos, Switzerland, which is attended by the world’s leading Heads of State, politicians, entrepreneurs, media titans and billionaires. This is a very positive reversal of its decline to tenth place recorded last year.

In the WEF’s database of 114 criteria, which include factors such as healthcare availability, employment systems and the macro-economic environment, the UK’s strong digital landscape, world-leading institutions, strong connections to the international economy and business-friendly regulatory system, were cited as some of the main factors in this year’s elevation in their global ranking.

Of other European economies in the report, the Netherlands, Germany and Sweden ranked above the UK. In the top spot was Switzerland, followed by Singapore and the United States of America.
As a caveat to this good news, the WEF did state that the UK’s wide exposure to the global economy, its high reliance on imported goods and its economic indebtedness, with both a current and budget deficit, adversely affected the overall score. The WEF went on to say: “Although the process and the conditions of Brexit are still unknown, it is likely to have a negative impact on the UK’s competitiveness.”

Meanwhile though, the new Chancellor of the Exchequer, Philip Hammond, stated that these results: “demonstrate our ability to sharpen our edge and improve our competitiveness.”
He went on to add: “This government will build on that progress, as we demonstrate to the world that Britain continues to be highly competitive and open for business.”

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 

First time buyer gap

Enable’s IFA’s in Bishops Stortford and Saffron Walden have seen the average age of a first time buyer in the UK go up and down but according to research from lender the Halifax the average age is now 30. This makes the average age of a first time buyer one year older than a decade ago and two years older than in 1983 when Halifax records began. The average age in London has risen by three years since 1983 from 29 to 32 and by four years in the South East from 28 to 32. In addition some new research reveals a seven year age gap between the youngest and oldest across the country.

The youngest first time buyers in southern England are in the East of England Waveney in Suffolk and Broadland in Norfolk with an average age of 28 in both areas. The analysis reveals a strong relationship between areas with relatively low average house prices with the youngest first time buyers. The research pointed out that the latest Halifax Generation Rent report found that non-home owners aged 20 to 45 would be prepared to save for around five and a half years for a deposit, while the average deposit paid by first time buyers increased by 13% in 2015 to £32,927. ‘With the youngest average first time buyer age dropping to 27 in some areas, this is a stark reminder of how early aspiring home owners should start thinking about what they will need to get onto the property ladder and what options they should consider in order to take their first step.’

If you are saving for your first property Enable’s IFAs can help you look at your options.

Your home could be at risk if you do not keep up your mortgage repayments


Source: http://www.propertywire.com/news/europe/seven-year-age-gap-revealed-youngest-oldest-first-time-uk-buyers/

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  

What are you pension pot fees?

Enable’s IFA's are always transparent about any fees that are charged for pensions they set up for clients. There has been much talk of excessive fees charged on pensions and millions of workers could have to delay the age when they retire by several years because they are paying steep fees on their pension fund, new research suggests. Cutting back fees by just 1.5 percentage points can mean the difference between being able to retire at 63 or 80, according to the new data.

A 55-year old worker has an average pension pot of £42,621 and is paying an average fee of 1.85 per cent, according to customer data analysed by advice firm Profile Financial. Many however do not realise they are paying high charges.  Profile Financials’ analysis of fees paid by its customers found those in new-style pension funds were paying 0.34 per cent, while 35-year-old and 45-year-old savers were paying 1.47 per cent on average and 55-year-olds were paying 1.85 per cent on average. Older workers tend to pay higher pension fees than younger staff, because the Government put a 0.75% cap on default fund charges under its auto-enrolment initiative.

Those who already have low fees will not be able to make great saving, and others may feel funds with higher fees still offer good value.  But the figures highlight how big an impact fees have on your pension pot over the years, and why it is crucial to find out what you are paying as well as their investment performance.

Source: http://www.thisismoney.co.uk/money/pensions/article-3802276/Rip-pension-charges-slogging-work-longer.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