Category: Retirement

Equity release: As property values soar, could your home help fund your later life?

25.05.2021
Across the UK, private property is worth more than £6 trillion, according to an Equity Release Council (ERC) report. Property prices have soared in the last decade, but homes often don’t play a role in later-life planning as the wealth is locked away. Equity release is one option more retirees are considering. In 2020, homeowners accessed more than £3.89 billion of property wealth through equity release. It can be a useful way to fund plans in...
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Job market changes present retirement challenges for young workers

13.04.2021
The world of work is changing, and it means young workers today need to be more engaged with their pension than ever to build a secure retirement. A rising State Pension Age, frequent job switches and more options for individuals to manage their own pensions present new challenges for 20-somethings. It wasn’t too long ago that a job for life was the norm. Half of people in their 60s say they spent over 20 years with the same employer, according...
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Pension Lifetime Allowance is frozen until 2026: Will it mean your retirement tax bill soars?

13.04.2021
While the chancellor didn’t announce personal tax rises in this year’s budget, a freeze on allowances could mean your tax bill unexpectedly increases. High earners and those with defined benefit (DB) pensions could now find they exceed the Lifetime Allowance, as it will remain frozen until 2026. The Lifetime Allowance is the amount you can tax-efficiently save into a pension. It was expected to rise in line with inflation, but the allowance...
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How many pensions will you have at retirement?

02.12.2020
When we reach retirement age, we use a pension to create an income. But changes to working habits could make it far more complicated for today’s workers. As a result, actively managing pensions now is important. Employees today are likely to swap jobs frequently, to suit their lifestyle and career goals. It’s a trend that can help workers balance work and personal life, and further their career prospects. However, each position is likely to...
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Retiring abroad: What does Brexit mean for your plans?

04.11.2020
For many, retiring abroad is a dream. Enjoying your golden years in a sunnier country and experiencing a new culture certainly has an appeal. But with many retirement hotspots in Europe, Brexit could derail some plans and make moving to a new country far more difficult. Almost half are reconsidering retiring abroad due to Brexit The UK voted to leave the EU back in 2016, but it’s been a slow process and there’s still a lot of uncertainty about...
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Why a desire to keep active is driving flexible retirement goals

04.11.2020
Brits planning for retirement are shunning a transitional ‘cliff-edge’ approach. Instead, as life expectancy increases, we’re more likely to view retirement as a transition. While it presents an opportunity to pay into a pension for longer, it comes with challenges too. Being prepared for retirement is crucial, whether you hope to transition into a new lifestyle or not. Keeping active is at the heart of the flexible retirement trend Research...
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5 steps the self-employed should take to prepare for retirement

02.10.2020
More people are becoming self-employed and it’s a step that’s been linked to improved wellbeing. But it can mean your financial security falls, particularly when looking ahead to retirement. For self-employed workers, it’s important to take steps that can ensure your financial security in the long term. According to research from the Institute of Fiscal Studies, wellbeing improves markedly upon entering self-employment. Job satisfaction was...
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5 things to consider if property is part of your retirement plan

08.09.2020
Figures suggest that many people are planning for property to play at least some role in their retirement income. With property prices and rental yields rising, it’s easy to see why you may think that property can offer security throughout retirement. However, there are some things to consider first. Research from the Office for National Statistics (ONS) conducted between April 2018 and March 2020 unsurprisingly found that property as a...
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Older borrowers facing challenges securing mortgages

08.09.2020
If you’re in retirement and have mortgage debt, research indicates it can be far more challenging to secure a mortgage. You may be forced to pay higher interest rates without a new deal, placing further pressure on your finances. It’s not uncommon to still be paying off a mortgage after retirement. And as the average age of first-time buyers is gradually rising, it’s a trend that’s expected to continue. In fact, in 2018, around a fifth of...
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Does market volatility affect your pension choices?

08.09.2020
If you’re retiring this year, you may be worried about what the market volatility caused by Covid-19 means for your options. The good news is that Pension Freedoms, introduced in 2015, means you can choose how and when you access your retirement savings. Market volatility may have affected the value of your pension but that doesn’t mean your overall plans have to be adjusted. However, it’s important that you understand the impact it could...
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