Calculating a target retirement income that suits your aspirations

Understanding the level of income you want to achieve in retirement is vitally important for staying on track. Yet, research suggests thousands are struggling with working this figure out. Without a target in mind, it can be all too easy not to save enough for retirement, believing your current provisions will be enough. It can lead to a retirement that’s disappointing and, in some cases, may even cause financial struggles as a result. Alternatively, you could be in a position to comfortably retire sooner than expected, but, without a goal, ...

Planning for unexpected early retirement

Early retirement is something many people look forward to. But when it’s a decision that’s taken out of your hands, it can leave you in a financially vulnerable position. Whether you plan to give up working while in your 50s, wait until State Pension age or even continue working past this point, it’s an important financial decision. As you save into your pension and build up other retirement provisions, you’ve probably invested some time into considering when you’d like to give up work and when it will be possible financially. ...

Estate planning: Families could face an unexpected Inheritance Tax bill

Do you know how much Inheritance Tax (IHT) may be due on your estate when you pass away? Research suggests that some could be leaving a bigger bill than they thought to loved ones. As part of an effective estate planning process, it’s important to consider whether any IHT will be due. Often, there are ways you can reduce the bill or eliminate it entirely. These steps can ensure as much of your wealth as possible is passed on to family and friends, rather than the taxman. However, the first ...

Four considerations when you’re supporting family financially

With soaring house prices and job insecurity meaning many younger generations are struggling financially, you may find yourself giving them a helping hand. While it may be something you’re keen to do, there can be concerns there too. Research from Charter Savings Bank found one in four adults have borrowed money from loved ones in the past year. The total amount being borrowed over the year adds up to £1,093 on average. It’s a sum that often ends up being a gift too; just 54% of ...

ISA deadline: What should you do with your allowance?

The end of the 2018/19 tax year is now just days away, and you should be thinking about using up your ISA (Individual Savings Account) allowance if you haven’t already. It’s also the perfect time to plan how you’ll make the most of your tax-efficient savings for the year ahead. ISAs were first introduced two decades ago and over the years they've become an essential tax wrapper for financial planning. The current allowance is £20,000 per person each year, which can be deposited in a single ISA or spread over ...

Why planning for retirement should start in your 40s

To get the most out of it, retirement requires planning. Yet, many of us leave it until the milestone is just a few years away, by which point it may be too late to make changes that are potentially needed. While you may have been saving into a pension since you started working, you may not have given much thought about what your contributions actually mean for retirement. Often in your 40s, your financial focus is on other areas, perhaps you’re paying off a mortgage or supporting children through education. ...

Are you holding too much cash?

Figures from HM Revenue and Customs (HMRC) suggest that some Brits may be holding too much cash in reserve. While it’s a strategy that can seem more secure, it could actually be harming your long-term financial security. The statistics show the amount of cash people are holding has doubled since the turn of the century:   In 2001-2005 the figure stood at £363 billion By 2014-2016 this had increased to £711 billion While cash is an important part of your overall financial strategy, holding too much of your ...

Organising your finances and future after a separation

When you’re going through a relationship break-up, you experience conflicting emotions and a long list of tasks to work through. But while finances may not be a priority, it’s an area that needs to be organised as you plan for your future. In some cases, money isn’t something that’s focussed on during a separation. It’s understandable; it’s a time upheaval in your life and other areas, such as family and children, take priority. However, the financial aspect of a relationship breakdown is important. It can help you feel more in ...

Should you consider a SIPP when saving for retirement?

When it comes to saving for retirement, it can seem like there are endless options to choose between. One you may not have considered is a Self-invested Personal Pension (SIPP). While you typically sign up to a pension through your employer, a SIPP allows you to take more control over your savings as you plan for retirement. It’s essentially a pension wrapper that holds your investments until you’re ready to start withdrawing a retirement income. While a Workplace Pension is also usually invested, where the money is placed will be ...

The foreign retirement hotspots for Brits

Dreaming of spending your retirement somewhere other than the UK? It’s a dream thousands of Brits turn into a reality every year. From the sunny beaches of Spain to cities in the USA, retirees are choosing to spend their years after work in very different locations to where they grew up, with Australia coming out top. Research looking at the top places to head to in retirement analysed where most expats were claiming their State Pension. It discovered more retirees were choosing to head down under, knocking ...
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