September 5, 2017
The 15th of September marks pension awareness day. The UK is facing a challenge. More and more of the population are choosing to not save for their retirement, which can potentially be detrimental. Pensions are often looked over as a blasé task, especially with the opt out rather than the opt in system introduced in many businesses. The vast majority of people would much rather have a few hundred pounds left over at the end of every month, and is there any wonder why when living costs are constantly rising?
What Are The Changes?
As we’re sure you are aware, 2017 has been quite a year for changes in pension schemes, which have left people enraged and no longer saving. Of course, we recommend you don’t stop saving and risk falling into pension poverty, but what exactly are the changes?
1. Workers in their late 30’s and early 40’s will see their retirement age rise to 68.
This has angered many careers people across Britain and it is not surprising when you’re planning your life after work to then be told you’re going to have to delay it by a further 5 years. It automatically reduces job satisfaction and leaves many people questioning, ‘what’s the point?’
2. Each person affected may lose up to £9,800
Due to this rise in retirement age, more than 7 million of us will lose up to £9,800 in order to save the government £74 billion. Recent research showed that increases in life expectancy are slowing which suggests there’s no evidence for the change.
What Does This Mean for You?
Due to these changes, it will greatly affect you as well as the accessibility of your pension. However, this is just the surface, it will affect everyone differently as everyone’s plan is unique to them and essentially, pensions are a very complex and layered subject.
How Can We Help?
Ask yourself these questions:
1. Which pension wrapper do you currently have and why?
2. What is the risk exposure to your holdings?
3. Do you have the correct retirement age set?
4. Is your pension managed, if so, by whom?
5. Do you know what your options are at retirement?
If you are unable to answer all of these questions, then it may be worth seeking the advice of one our expert pension advisors.
If you would like more information on pensions or any other services Bespoke Support Network can provide, get in touch today to see how we can help.
June 8, 2017
The general election is in full swing and the manifestos have been published, but what does this mean for the wills and probate market?
Here at BSN we thought we would put together a round up on what each manifesto could mean for Wills and Probate, especially pensioners.
Liberal Democrats view –
- They aim to abolish marriage inequalities and spousal veto in relation to pensions.
- They would reverse the conservative raising of the Inheritance Tax threshold.
- Another aim would be to maintain the triple lock pension- increasing on a yearly basis by the highest of earnings growth, price growth or 2.5% for the next parliament.
- For pensioners who pay tax at the higher rate of 40% they would withdraw winter Fuel Payment eligibility.
- They would also consider the implication of introducing a single rate of tax relief for pensions.
The Conservative view –
- The conservatives would tighten the rules on pension abuse, increasing the punishment for mismanagement of pension schemes.
- They would try to increase the power of the pensions regulator so that they were able to prevent issues threatening the schemes solvency.
- Introduce a new Double Lock in 2020, where pensions will increase in line with the earnings that fund them or inflation.
- Another step would be to start promoting pensions and long term saving products to encourage all generations to make plans for later life.
- They would also review the Winter Fuel Payments, introducing a means-test so assistance is focussed on the least well-off.
The Labour view –
- Labour aim to maintain both the Winter Fuel Allowance and the Triple Lock on pensions, which will ideally grow annually by 2.5% staying in line with inflation or increase with earnings.
- They want to provide compensation to the 2.5 million women who had their state pension age raised without fair notification. Trying their best to consider other options for transitional protection.
- They would aim to protect UK citizens living overseas and their pensions.
- Next up they would review the pension age and try to bring an end to hidden pension charges and fees.
- Last up they would implement measures to protect pensions in situations where a business is being taken over.
These are just a few pointers from the manifestoes explaining the plans for pensioners in the near future should each party come into place. For further information on the effects the election could have on your pensions then give us a call today.
Our team here at Bespoke Support Network, Essex, can you put you in touch with local Essex based pension experts today!
May 18, 2017
When setting up a brand-new business, you will be preparing for the big launch of your company. In the hustle and bustle of beginning your business, you may miss out on some important processes such as bookkeeping or business insurance.
Insurance is crucial to running your company but it can be hard to see the benefits of it until disaster strikes and you need to make a claim. Business insurance acts as a safety net to ensure you and your business can cope and will protect your business’s assets.
There are 7 types of insurance you would need to consider when covering your business.
- Professional Liability Insurance
- Property Insurance
- Workers’ Compensation Insurance
- Home-Based Business Insurance
- Product Liability Insurance
- Company Vehicle Insurance
- Business Interruption Insurance
Once your business is up and running, keeping track of your finances and taxes gets more difficult to cope with. That’s why having an accountant to monitor your outgoings and profits makes all the difference! Not only can they save you time and money, accountants will provide you a tailored financial service that is designed to meet your individual requirements.
Now that you’re self-employed, you will no longer have the benefits of a work place pension and other workplace benefits. Instead, you will need to find schemes that benefit the self-employed, or even set up your own pension.
If you are hiring employees you will also need to make sure you have a scheme in place to pay into their workplace pensions.
Whether it’s paying your bills or managing your diary, life can be made so much easier with virtual assistants. With your very own virtual PA, you can carry on running your business while your personal assistant manages invoicing, appointment booking and answer the phones.
Are you a new business? Bespoke Support Network can find the right professionals to help with your financial and business enquiries. Call our team on 0300 303 3441 to find out more about our services.
April 7, 2017
According to research from a major investment provider, 4 out of 10 over 40 year olds have no knowledge of the basic costs of retirement. Unfortunately for many, people are blissfully unaware of the amount of money they would need in their pension to fund their future retirement plans.
Experts have suggested that in order to live their preferred lifestyle, individuals will need to save two thirds of their income earned whilst working. Although some people have a good idea of the cost of their own lifestyle, when turned into pension costs it didn’t translate well.
People were estimating nearly half of the amount that would realistically be needed, thinking £126,000 would be an affordable pension pot. However, in reality this will leave just £6,904 per year for individuals to spend now, which works out as just over £570 a month.
When asked people thought that a retirement pot of £500,000 would be able to afford them a luxury lifestyle retirement. Once calculated you would be left with £27,000 annually, which is simply two thirds below the amount of a real income that would achieve an extravagant retirement.
The figures shown above highlight the reality people are facing when the realisation of their actual pension pot hits them.
After the results of this research, it has highlighted the need for more advice in this particularly area, not only for those nearing pension age but young adults! It has been suggested that pension guidance may be needed in order to adequately prepare the population for their retirement.
It is becoming a real concern that people already in their 40s are unaware of the monetary values needed in able to live a comfortable retirement. If people continue to believe such information and aren’t educated on the subject, they could find they will be running into a bumpy road ahead due to not investing enough when they could.
If you are reading this and are concerned you may be in the same boat when your pension arrives, call today!
We can help you budget and advise you on how much you can afford and realistically what it will leave you when you wish to retire. For more information, get in touch or visit our website.