What are realistic expectations for investment returns?

We all want to get as much out of our money as possible, but it’s important the expectations are realistic. Research suggests that many investors are anticipating returns far higher than what the average investment can expect to generate. It’s a miscalculation that could put plans at risk. So, how should you calculate projected returns? The Schroders Global Investor Survey asked global investors what they would expect investments to return. It found:   Investors expected total annual returns, not adjusted for inflation, of 10.7% over the next ...

Saving for potential care shouldn’t be slipping down priorities

The cost of care is becoming a big issue among retirees. As we live longer lives, more of us will inevitably need some form of care at some point. However, research worryingly shows that it’s an area that’s slipping down the list of priorities. Research from the Association of British Insurers (ABI) found that nine out of ten over-65s have no plan to pay for social care, despite around half of all care users having to pay at least a portion of the costs. When asked ...

Charitable legacies: Should you leave one?

As you think about who you’d like to benefit from your estate when you pass away, it’s probably family and friends that first spring to mind. However, as you seriously start to consider how you’ll distribute wealth, the thought of leaving a charitable legacy may be attractive. It’s a decision that can positively impact your chosen organisation, as well as potentially having tax benefits. What is a charitable legacy? A charitable legacy is essentially leaving assets to a charity in your will. It may be the biggest donation you’ve ever made ...

How advice at retirement can help you create a long-term plan

Retirement represents a huge change in your life. It’s a milestone that often means making decisions that could affect the rest of your life. However, research indicates that thousands of retirees are accessing pensions and embarking on the next stage of their life without seeking financial advice. It could mean finances are stretched further than expected in retirement. According to research from the Association of British Insurers (ABI), a third of retirees are accessing pension savings without ever taking advice. As the average pension rises to ...

Is a guaranteed or flexible income in retirement right for you?

Those approaching retirement can choose the type of income they want to receive: guaranteed or flexible. But which option is right for you? Since 2015, retirees have had far more choice in how and when they access their pension savings. In the past, it was the norm to purchase an Annuity to secure a guaranteed income for life. However, retirement lifestyles and aspirations have changed enormously over the last couple of decades and, as a result, many are favouring a more flexible approach to income. A guaranteed income If you have a ...

How Business Tax Relief can cut Inheritance Tax

Benjamin Franklin famously remarked that ‘in this world, nothing can be said to be certain, except death and taxes’. One of the most common taxes in the UK is Inheritance Tax (IHT). The Treasury raised £5.2 billion in IHT receipts in 2017/18 with the figure set to increase to more than £7 billion in the next few years. However, many consider IHT a ‘voluntary tax’ considering all the reliefs and allowances that are available. One of these is Business Relief (previously called Business Property Relief), which many families are using to ...

How financial advice can provide value for young adults

Taking financial advice is often associated with older generations, perhaps as they plan for retirement, sell a business or set out their estate plan. But it can prove just as vital for young adults who are often facing various financial commitments with a conflicting mix of short, medium and long-term goals. Whilst you may not be part of the millennial generation, you may have children or grandchildren that could benefit from working with a financial adviser even if they don’t believe they’re at a point in their life where it ...

SIPPs: Are they a savings option for you?

When it comes to saving for retirement, there’s no one-size-fits-all solution. What’s right for one person may be inappropriate for another. So, whilst Workplace Pensions are among the most popular options, a Self-Invested Personal Pension (SIPP) may be better suited to you. It’s an option that’s worth considering as you explore ways to maximise retirement savings in a way that suits your plans. First, what is a SIPP? As the name suggests, it’s a pension that allows you to choose and manage your own investments. You still benefit from many ...

Why women may be facing a pension shortfall in retirement

Making sure you have enough money for your retirement is an important goal for everyone. However, new research has revealed that women may be facing a significant pension shortfall in later life when compared to their male counterparts. Figures from a leading investment management firm, show that the pension fund of the average woman on retirement will be almost £100,000 less than the average man. In addition, further research has found that women will receive a fifth less State Pension than their male equivalents. Women saving £87,000 less than men New research ...

Cost of care concerns holding back retirement aspirations

When you take responsibility for your retirement income, you’ll need to factor in many different influences; one of them being care. However, research suggests that many baby boomers are concerned about spending in retirement because of future care costs. Taking control and having confidence in your finances can help you enjoy retirement to the fullest. It’s easy to see why it’s a concern. The cost of care can run into the tens of thousands of pounds and, in many cases, it falls to the individual to pay for it. As ...
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