With rising rent and the average student in England graduating with £50,000 of debt, the last consideration for some might be pension contributions. However, recent research has found the average person will need to accumulate £260,000 to enjoy a basic retirement income. Worse still, the report from Royal London suggests that for the estimated one in three retirees living in private rented accommodation, the amount needed is an astonishing £445,000. The reality is that people are living longer and costs in later life are increasing. Couple this with historically low interest rates, and the sum needed to support later life increases exponentially. Assuming retirement at 65 years old, to meet the £260,000 target will require a significant level of commitment,... Read More

I’m lucky, I see the value of the advice I give to clients every day of my working life. That’s by no means the case for everyone though. Research from the FCA (Financial Conduct Authority) shows that only 3.2 million people (equivalent to 6% of the population) had received regulated financial advice in the preceding 12 months. Worryingly, the same report showed that around four times as many people, 12.8 million, equivalent to 25% of the population, hadn’t received financial advice in the past 12 months but might have had a need for it. There are many reasons why those 12.8 million people aren’t taking financial advice; they might not recognise they have a need, they might not trust financial... Read More

“A lie gets half way around the world before the truth has time to put its pants on.” Winston Churchill might not have been talking about the common misconceptions of financial protection, but his statement applies just as well. What do we mean by ‘financial protection’? Insurance, emergency funds and the plans you have in place to keep you and your family afloat, should something go wrong, money-wise. These may include: Life Insurance: Pays a lump sum if you die while the policy is in force. Critical Illness Cover: Pays a lumps sum or income if you are diagnosed with a serious illness covered by the policy. Income protection: Provides a portion of your usual pay if you are unable... Read More

What is a Final Salary Pension? Also known as Defined Benefit Pensions, Final Salary Schemes offer a guaranteed, inflation-proofed annual income in retirement. The actual income received is calculated using several factors, including the length of time you have been in the scheme and your pensionable earnings at retirement. To keep matters simple, we’ll use the term ‘Final Salary’ for the rest of this article. However, our thoughts apply equally to Defined Benefit Pensions. What do we mean by ‘transferring’? As retirement approaches and you consider how best to move from a life of work, you are faced with a range of options and questions. If you choose to continue with your Final Salary Pension, you will receive the annual... Read More

Now that the dust is settling on the recent stock market volatility we can look back in a calmer and more reflective mood. Let’s start with a simple question… What can we learn after the events of last week, when the Dow Jones fell by 4.6% in a single day and the FTSE 100 dropped 9% from its peak of 7,778 in January? The answer? Nothing. That’s right, the volatility seen in the UK, US and around the world tells us precisely nothing new about investing. Stock markets rise and fall and after a lengthy bull run a correction was bound to happen sooner or later. Ironically, it was positive economic data, which caused the volatility, with markets worried that... Read More