When you retire, your income may be coming from multiple sources, and it may not be regular. This can lead to some retirees being overtaxed. While you can claim back overpaid tax, it could affect your plans and you may not realise you’ve paid too much. Understanding your tax liability can help you manage your budget and income in retirement. Retirees have overpaid around £835 million in tax since 2015 In the last quarter of 2021 alone, HMRC...

If you opened a defined contribution (DC) pension in the 1990s or 2000s, the charges you’re paying could be higher than comparable pensions opened more recently. Between now and your retirement, the difference could add up to thousands of pounds. Research conducted by the Institute for Fiscal Studies found that many older DC pensions deliver “poor value for money”. Among people in their 50s, the average annual fee for a DC pension taken out...

At the end of 2021, the Bank of England (BoE) raised its base interest rate from 0.1% to 0.25%. Then, the Bank increased the rate further in February to 0.5%, and now it has increased again to 0.75%. While the changes may seem small, they can have a significant effect on your mortgage – and further increases could happen this year. The BoE’s base rate has been low since the 2008 financial crisis. This has meant the cost of borrowing has been...

It’s been five years since the Royal Mint introduced the 12-sided £1 coin. In that short time, the value of money and how we use it has changed significantly. When the Royal Mint announced the 12-sided £1 coin it said it was “the most secure coin in the world”. Features like being bimetallic and having a latent image means it’s much more difficult to counterfeit than its predecessor. Before the 12-sided coin was introduced, around 1 in...

Financial protection can provide you with a lump sum or regular income when you need it most, for example, if you’re unable to work due to a long-term illness. Research finds it’s something many people are putting off because they deem it too expensive, but you might be surprised by how affordable it is. According to a report in Professional Adviser, the pandemic has led to more people considering their ability to weather financial shocks...

Reports suggest that the top rate Income Tax band could be scrapped in the next few years. It could cut your tax bill and, somewhat counterintuitively, could increase how much the Treasury takes in tax. According to a report in Citywire, chancellor Rishi Sunak has drawn up plans to cut taxes ahead of the 2024 election, and Income Tax is one of his main targets. It’s suggested that not only will Sunak cut the basic rate of Income Tax by 2p but he...

Official figures show that the amount paid in Inheritance Tax (IHT) has increased again. As the IHT thresholds are set to remain the same despite rising inflation, more people will need to consider how IHT could affect what they leave behind for their families. According to a report in FT Adviser, IHT receipts between April and November 2021 totalled £4.1 billion. It represents a rise of £600 million when compared to the same period a year...

The FIRE movement is a small but growing lifestyle movement. It stands for “financial independence, retire early”, and challenges the traditional path of working until you’re in your 60s before retiring. While the steps FIRE members take can be extreme, it does share some of its core principles with financial planning. In essence, the FIRE movement involves extreme saving and investing to create a passive income that aims to allow members to...

The latest figures from the Pension Regulator prove that pension auto-enrolment has been a success – more people than ever are saving into a pension. Yet, research also shows that many people don’t think they know enough about saving for retirement. Before the government introduced auto-enrolment in 2012, just 4 in 10 private sector workers were actively saving into a pension. Now, more than 70% of employees are taking steps to secure their...

A significant proportion of retirees are relying on inheritances to fund their later years, but research suggests that it could place their future at risk. According to research from abrdn, almost half of UK retirees fear they will eventually run out of money. A quarter plan to complement their pension and other assets with an inheritance they expect to receive from family or friends. That’s around three million people across the UK. While...