7
Oct
2021

Who wants to live forever? How longevity can impact your retirement planning

I’ve just read a book called The 100-Year Life by Lynda Gratton and Andrew Scott. It explains how increased longevity is changing our lives – and will continue to change them in the future. It then considers how we will have to adapt different aspects of our lives to cope with this in order to be able to embrace a long life as a gift, rather than as a curse. It set me thinking about how increased longevity can impact on financial planning, particularly when it comes to retirement. We’re living longer than our parents Life expectancy is rising. People retiring now are likely to be spending far longer in retirement than their parents and grandparents. According to the Office for...
Read More
23
Sep
2021

5 common myths about retirement, and why you shouldn’t believe them

I recently read an article in the financial press that said that the UK pension market was now worth more than £2.5 trillion. That’s an extraordinary figure. For comparison, the total Gross Domestic Product (GDP) of the UK, pre-Covid, was only £2.17 trillion. Given the size of the market, and that nearly everyone in the UK has a stake in it, it’s understandable that there’s an absolute abundance of media outlets giving advice about how you should manage your income once you’ve retired. Much of the advice is sensible, but I do see some howlers that could create financial problems for anyone following them. Here are five common myths about retirement, and why you shouldn’t believe them. 1. Your retirement...
Read More
20
Sep
2021

8 sure-fire ways to lose all your money

The key to growing your wealth is your investment strategy. Get it right and you should see the value of your pension fund, and other holdings, rise steadily. Get it wrong, however, and you’re looking at a different scenario of not having the money to do what you want in retirement, and potentially outliving your pension savings. There are many ways of losing some of, or even all, your money. Here are eight of the most common – and avoidable. 1. Overcomplicating your investments Investing money should be straightforward, but there’s a tendency for many people to try and overcomplicate it. Investment companies, and other financial institutions, devise different investment structures and products and make outlandish claims about them that...
Read More
9
Sep
2021

National Insurance and Dividend Tax rise as government suspends State Pension triple lock

This week, the government has made two major policy announcements that are likely to directly affect your finances. A much-anticipated National Insurance rise will result in an increased burden on workers including, for the first time, those above State Pension Age. In addition, the government has suspended the State Pension triple lock, meaning that pensioners will receive a much more modest increase than anticipated. Read on for everything you need to know about these policy changes. The new “health and social care levy” will push up National Insurance bills by 1.25% Despite a clear commitment in their last election manifesto not to raise taxes, the government has unveiled a 1.25% hike in National Insurance contributions from April 2022. This is...
Read More
23
Aug
2021

How to protect your retirement income from inflation

For many years, high inflation has been treated like a historical relic from the 70s and 80s that no one was worried about anymore. A quick glimpse at this chart shows the relative stability we’ve enjoyed for the best part of three decades. In fact, we’ve probably enjoyed the longest run of sustained low inflation since the period between the defeat of Napoleon in 1815 and the start of World War I. Annual inflation rates from 1960 to 2020. Source – Macrotrends.net Yet memories of high inflation as the nemesis of many government and individual financial plans are strong in many people’s minds – which explains the recent concerns around rising inflation as global economies emerge from lockdown. In June...
Read More
23
Aug
2021

8 practical tips to help you manage your time effectively so you can enjoy the future you deserve

It might sound a strange source for an illustrative quote, but a line from Avengers: Endgame set me thinking recently. Amid all the action and turmoil, as two sides battled for – as far as I could tell – control of the universe, one of the lead characters came out with the line: “No amount of money ever bought a second of time”. Time is our most valuable commodity and, unlike money, it’s finite. We can’t create more of it so we should be looking to make the most of the time we do have. We tend to envy the young and tell them how lucky they are because they have their lives ahead of them. As you get older,...
Read More