Pension and dividend tax changes dropped as election looms

Confusion reigned this week as the Chancellor, Philip Hammond, revealed that two measures previously announced in his Budget will not go ahead. For now, anyway. Mr Hammond’s Budget, delivered in early March, will be remembered for the proposed National Insurance rise for self-employed workers. A few days later, following protests and a media backlash, he changed his mind. It now seems that two other measures, which would have affected pensioners and shareholders, will now not go ahead. Contribution cut Prior to the Budget, the Money Purchase Annual Allowance (MPAA), the maximum people who have withdrawn money ...

Six warning signs that mean you should change SIPP provider

Self-Invested Personal Pensions (SIPPs) are mainly used by savers and investors who want more flexibility than is offered by more traditional pension options. We’ve previously written about how to choose the right SIPP. But how do you know, years after you have made that decision, whether your SIPP provider is still right for you? Over the past few years the SIPP market has been through a period of considerable change. New rules, imposed by the regulator, the curse of toxic assets and a series of high profile mergers and acquisitions have all ...

General Election 2017: How will it affect your personal finances?

The answer to that question depends on two things; the outcome of the election and how you react to the inevitable instability it will cause. At this early stage, the most likely outcome seems to be a Conservative victory, with an increased majority. At least that’s what a certain Mrs May, of Number 10 Downing Street, has gambled on. Logically, if this is the case, Mrs May, and the Chancellor Philip Hammond, will be emboldened to drive through changes to domestic policy, whilst negotiating Brexit. Of course, even if it looks unlikely right ...

Starting them young – pensions for tots

Pensions and children don’t often share an article. The children don’t tend to like them because pensions are boring, and besides, Peppa Pig is about to start, right? Whilst pensions aren’t the first thing that comes to mind when you start a family, new research shows that a head start can make your little darling over £250,000 better off by the time they are 67. How much?! A study by Retirement Advantage shows that a £100 per month saved on behalf of your child from birth to the age of 18 would grow into ...

How should you use the new lifetime ISA?

They say that an ISA is for life, not just for Christmas. Or is that a dog? Regardless, that’s the case for the new Lifetime ISA. The Lifetime ISA (shortened to LISA in this article for your own sanity) will be launched on the 6th of April 2017. It is a saving scheme that will be partially funded by the Government, and this article will delve deep into exactly how it can be used: First house purchase? Retirement? Both? So, who or what exactly is LISA? The LISA is the latest addition to the ...

A postcode lottery: The £42,000 difference in the cost of long-term care

The rising costs of care homes are a concerning reality for many. Whilst care home fees can be a controversial subject at best, recent analysis by insurance and pension provider Royal London shows a drastic difference in the average cost of care from one region to another. According to UK based healthcare intelligence researcher LaingBuisson, an estimated 426,000 elderly and disabled people are in long-term residential care as of 2016. This article shows the key findings of the report and investigates a number of options that many people face when paying for the ...

Report recommends State Pension age to rise to 68 earlier than scheduled

A new report has recommended the age that you can start receiving the State Pension should be increased faster than currently scheduled. The in-depth review, conducted by John Cridland, concluded that the State Pension age should be changed to 68 by 2039; seven years earlier than currently planned. The review ran alongside a study conducted by the Government Actuary’s Department (GAD) which estimated that the State Pension age could rise to 70 by 2054. Mr Cridland, former Director General of the Confederation of British Industry (CBI), raised several key points. Titled The ...

The three groups that will be hit by the new inflation high

Inflation. It is enough to fill anybody with dread. Money only stretches so far, and it is even harder to stretch a pound when it is only worth 97.7 pence. Well, that is the reality after inflation was recently announced to have exceeded the Bank of England’s 2% target to a level of 2.3%. The Office for National Statistics released a bulletin on the 21st of March, revealing inflation to be much higher than previously thought. This news has come as a surprise to many, and will affect three groups of ...

Over 50% of women haven’t started saving for retirement

Over 50% of women haven't started saving for retirement56% of woman haven’t started saving for the future, research conducted by YouGov has recently shown.  The study, commissioned by Scalable Capital as part of their Women’s Initiative, also suggested that 44% of men and women in the UK are concerned about not having enough money for a comfortable retirement. Are women the only ones who aren’t saving? Whilst the survey was intended to research the ways in which British and German women are, or are not saving for their retirement, it also gave an ...

Married? Are you missing out on a tax-break?

Are you married or in a civil partnership? You could be entitled to a £432 tax break thanks to the Marriage Allowance. HMRC estimates that around 4.2 million couples are eligible to reduce their tax payments thanks to this allowance, which was introduced last year. However, only a million people have claimed it so far. Are you one of the three million people missing out? Are you eligible to claim? Marriage allowance was launched on the 6th April 2016. It is aimed at couples where one partner may not be working, or is low waged, ...
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