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 ...

Date of the final spring Budget announced

Date of the final spring Budget announcedPhilip Hammond, the Chancellor, has announced that the next Budget will be published on Wednesday 8th March 2017. This will be the last Spring Budget. Mr Hammond announce late last year that the government would no longer publish an Autumn Statement, which had effectively become a mini-budget, and move the Budget to the Autumn. The Budget will be keenly awaited by all, as the repercussions from Brexit become clearer and the government continues to look to cut expenditure. As usual, we will publish our Budget summary, and our analysis of ...

Young people to get inheritance windfalls

Young people to get inheritance windfallsThe amount younger people inherit is set to rise according to new research; but the trend is likely to reverse in years to come. The survey, by the Institute for Fiscal Studies (IFS), found that: The level of wealth in elderly households, where all members are 80 or over, has risen by 43% over the past 10 years 44% of elderly households intend to leave an inheritance of £150,000 or more, up from 24% 10 years ago 75% of people born in the 1970s expect to ...

Britain’s savings habits revealed, how do you shape up?

SavingNew research has shone a light on our savings habits and the amount of time we spend thinking about money. The survey from RCI Bank found that: 31% of adults are saving more than they were a year ago, putting away an average of £62 more per month However, 15% are savings less Those adults who are saving more have put away £750 extra over the past 12 months 34% of savers believe that talking and thinking about money made them better savers Money talks The survey also showed how much time we ...

The Buy to Let collapse

Rent, property taxes, insuranceNew figures have shown that the Buy to Let market has all but collapsed in parts of the country, as changes introduced by the government have started to bite. Over the past year, the government has increased the Stamp Duty paid by Buy to Let investors, when they purchase a property, by 3%. At the same time, measures have been introduced to cut the tax-relief landlords can claim in respect of interest payments. Finally, new rules will make it harder for many Buy to Let investors to obtain ...

House price growth to slow?

New figures show that the rate of growth in house prices increased in November, but the news came with a warning that the market may slow in 2017. Figures from the Halifax show that house prices rose by 6% in the year to November; taking the value of the average home to £218,002. Housing slowdown? However, before homeowners get carried away with the seeming constant rise in house prices, the Halifax also said that "annual house price growth may slow over the coming months". In fact, the Nationwide has previously reported that house price ...

Retirement: Pension contribution limit cut for over 55s

Pensions: Is tax-relief about to be cut?The fallout from the final Autumn Statement continues, as some people come to terms with a cut in the amount of money they can pay into their pension. The change will affect people aged over 55 who have taken money from their pension, but also wish to continue contributing, perhaps because they are still working. Annual Allowance Currently, the maximum amount you can pay into your pension is the lower of 100% of your earnings, or £40,000; this is known as the Annual Allowance. However, if you are ...

Pensions: Women unable to plan for retirement as effectively as men

Silver sex symbolsNew research has shown that the gap between the ability of men and women to save for their retirement is getting wider. The latest Scottish Widows Women & Retirement Report revealed that: 52% of women are now saving adequately for their retirement, compared to 60% of men Only 42% of divorced women are able to save adequately for retirement The number of self-employed woman has risen by 22% over the past four years, however only 36% are able to save enough money for their retirement The gender gap widens The report ...

Autumn Statement 2016: Winners and losers

Investment Sense Verdict_istock Every Autumn Statement and Budget speech leaves some of us better off, whilst others won’t be so impressed with the changes announced by the Chancellor. Here’s our initial take on who are the main winners and losers after Philip Hammond’s first, and indeed last, Autumn Statement. Budget 2014: WinnersWinners Tenants (possibly) Mr Hammond announced that letting agents will no longer be able to charge fees to tenants for renting a property. On the face ...
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