Help tomorrow’s widows prepare for an income shock
In this article for the Financial Times, former pensions minister Steve Webb summarizes why two alterations to the state pension mean widowed women might experience an income “shock” along with bereavement in retirement.
Among many mathematical examples, he encourages no couple to make any assumptions about the assistance available to them after a bereavement.
Roughly half of all pensioner couples get most of their income from state pensions and benefits, he writes. “The fact that the state has now effectively withdrawn from providing survivor’s benefits to pensioners means they will need to make alternative plans to avoid a fall in living standards following bereavement.”
State Pensions are a key element of most retirement plans so you should have an idea of what you are getting.
British dividends are back with a bang – here’s how to get a 13pc yield
As profits bounce back following the pandemic, dividends in the UK are rising as they increased 51% between April and June earlier this year, writes The Telegraph. It follows a 43% drop in dividend payments last year. the newspaper adds. “The results from UK companies are off the charts,” says JOHCM UK Equity Income fund co-manager James Lowen. “Every day we are hearing very good updates.”
Are you emotionally attached to your shares? The ‘endowment effect’ explained by a behavioural finance expert and three ways to fight it
The Daily Mail has a piece about one of the behavioral biases which can cause us to become irrational with our investments.
At its most basic level, this is the ‘endowment effect’ and is based on the finding that people will often place greater value on things once they have established ownership – be that a tangible object, such as a painting, or something less tangible like a stock market investment.
The article points out some ways to combat this. One we would point out is having an expert to help you make decisions and take amotions out of the equation.