Savings: Compensation limit set to rise

Compensation limit set to riseFrom next week, savers will receive a boost to the level of protection they get if their bank or building society goes bust. Currently, the Financial Services Compensation Scheme (FSCS) protects up to £75,000 of savings per person, per institution. However, this will rise to £85,000 from 30th January. The limit is changing because of the falling pound, with the value of protection pegged broadly to 100,000 Euros. The new level of protection means that savers can deposit an additional £10,000 with each institution and be guaranteed to ...

How will the unexpected rise in inflation affect you?

How will the unexpected rise in inflation affect you?New figures show that UK inflation is now at its highest rate since November 2014. The data, from the Office for National Statistics (ONS), shows that the Consumer Prices Index (CPI) rose to 1.6% in December, up sharply from 1.2% in November. The Retail Prices Index (RPI), which includes housing costs, rose from 2.2% to 2.5%. Rising air fares and food prices contributed to the unexpectedly sharp rise, as the effects of the falling pound start to be felt. Reacting to the figures, Mike Prestwood ...

Are you heading for a ‘Toblerone Retirement’?

Are you heading for a ‘Toblerone Retirement’?New research has shone a light on our changing retirement habits, as we struggle with the twin effects of inflation and ‘skrinkflation’. Figures from pension provider, Retirement Advantage, show that: The days of the ‘cliff edge’ retirement, where one day we worked, and the next we didn’t, are long gone for many, with 52% of people age over 50 planning to work part-time in retirement That’s an 11% increase over recent years 30% of people are worried about the cost of living in retirement, whilst ...

Considering transferring your final salary pension? Watch for this hidden danger

Considering transferring your final salary pension? Watch for this hidden dangerFinal salary pensions have been big news over the past few months. The personal finance press has been awash with articles suggesting members should consider transferring their final salary pension. At the same time, unfortunate members of the BHS and Bernard Matthews pension schemes, will be worried about how their retirement is to be affected by recent events. We regularly advise member of final salary pensions and are becoming increasingly concerned about a potential pitfall we have rarely seen highlighted in the ...