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What was in the money sections of the weekend’s papers? (10/05/2021)

Category: News

Pension warning: you need to save 50% more now

This article, in the Times, says younger workers saving into their pensions may need to increase their contributions to make up for lower investment returns.

Lane, Clark & Peacock, a consultancy, and Interactive Investor, a wealth manager, have shown the impact poor returns can have on a pension pot. They highlight that the investment growth forecasts, controlled by the Financial Conduct Authority (FCA) and used by pension companies, have declined significantly since 2007. The upshot of this, they say, is that younger people need to increase their contribution rates.

Anything that gets the public thinking about their retirement planning is a good thing. However, you should make sure your planning reflects the returns which you feasibly might get.

Pension Lifetime Allowance freeze by Sunak dubbed ‘counterproductive’ – ‘robs taxpayers’

This article, in the Sunday Express, looks at how the decision to freeze the Pension Lifetime Allowance.

One expert questioned its necessity, particularly in the current climate. One of the comments the article makes is that the constant tweaks to the rules make it hard for savers to have confidence in saving in pensions. We would agree with this but ultimately everything is uncertain and the repeated process of looking at a financial plan is the best way to deal with this.

Should you ever use an adviser who is your friend?

This article, in the Sunday Times, looks at someone who had used a longstanding family friend to give him financial advice. When he became disillusioned with the service and the costs, he found it difficult to complain.

We believe one of the key benefits of having a financial adviser is having someone who is not afraid to give you constructive criticism. Accountability is key on both sides.

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