Less than a Third of Gen X on track for Retirement
Generation X or ‘Gen X’ – the generation of adults born between 1965 and 1981, roughly 45 to 60 years of age now – is woefully unprepared for now looming retirements, according to a survey of 2,000 UK adults in December 2024. One of the most significant issues the cohort faces, according to the research from Get Britain Pension Ready, is that the group fell through the gaps in…
Is an Annuity the Right Option for You?
Annuity sales hit their highest level in a decade in 2024, with higher rates tempting retirement savers to swap their pension pots for a guaranteed income for life. Insurers sold 89,600 annuities last year, up 24% on the year before – and the highest level since 2013, according to trade body the Association of British Insurers. However, while sales are at their highest level in a decade, they remain around…
Are Cash ISAs still a Good Idea?
The Chancellor has been urged to slash the tax breaks available on cash ISAs in a bid to boost the economy and support London’s dwindling stock market. Cash ISAs are by far the most popular type of savings account in the UK, allowing savers to earn tax-free interest on contributions of up to £20,000 a year. Figures from HM Revenue & Customs show that around 18 million people currently…
Income Tax Planning in Retirement
In the tax year 2022-23 61% of retirees paid income tax according to HMRC figures. The state pension will become taxable for the first time from 2027, as total earnings from the full new state pension reach above the personal allowance for the first time. The number of pensioners paying income tax is set to rise by 15 percentage points to 76% of all retirees, driven by both rising…
Is it Time Up for the Lifetime ISA?
The Lifetime ISA is subject to a Parliamentary review as it looks to consider whether the savings vehicle is fit for purpose. The Treasury Select Committee in the House of Commons is calling for evidence to gauge whether the Lifetime ISA remains relevant in the current savings landscape. The committee is considering whether the Lifetime ISA works in its current format, whether people who use it for a house purchase…
Why Simplifying ISAs Makes Sense
We are big fans of tax allowances. To be fair, the whole of the savings and investment sector is. We know that when allowances go up, or new tax reliefs are created, people save and invest more money, as well as withdraw funds tax efficiently when they need to spend it. Everyone is happy. So when a new ISA is launched by government you’d think everyone is financial services…
Mortgage Rate Gap Narrows
The gap in rates between average two-year and five-year mortgages is at its narrowest since January 2023, according to data from financial data firm Moneyfacts. The average two-year mortgage rate on the market is now 5.48% (correct as of 8th January 2025), while the average five-year fix is 5.25%, according to the Moneyfacts UK Mortgage Trends Treasury Report. Over 12 months the gap in average rates has narrowed from…
Most Popular Resolutions for 2025
As we enter 2025, many people will be setting New Year’s resolutions. How serious they take them, and how long they last, depend on each person’s will and motivation, but many surveys report familiar themes. Some surveys show differences between different age groups. The differences reflect where they are in life and the issues and concerns they have to deal with. One survey showed that Gen Z’s (under 28s)…
Gifting for Inheritance Tax Purposes
Labour’s new policy on inheritance tax means that more estates could pay inheritance tax (IHT) in future. Whilst there are plenty of legitimate ways to reduce an IHT liability, there’s one which we often forget despite it being very simple. That’s giving money to your loved ones. Although gifting is simple, and might be something you already do without thinking, there are a few rules you should be aware…
Estate Planning for Blended Families
Blended families are formed when two people live together with children from previous relationships. They are increasingly common in the UK, and can work extremely well. However it is worth considering the estate planning implications. It is possible to accidentally leave family members without any inheritance due to a lack of planning or appropriate legal advice. If a will was written with a previous partner clearly this will need…
