Arthur BeverlyPWP WK May14 blue
2 Stewart Street Milngavie Glasgow G62 6BW
[email protected] 0141 956 5525
Employee absence rates improve More than a third of employers saw an improvement in absence rates in the year to October 2013, according to a survey by Group Risk Development (Grid). The survey of 500 UK employers and 1,000 employees found that 34% of irms saw an improvement in absence rates in the 12 month period. Only 16% of irms saw their absence rates worsen. When asked about the reasons for the changes in absence rates: • 63% of employers cited good
workplace morale • 44% thought job anxiety played
the biggest part
• 35% said ‘presenteeism’, where
job anxiety causes employees to work more than their contracted hours or to work while they are ill
• 31% cited staf shortages.
According to the Oice for National Statistics, 131 million days were lost through sickness absence in 2013. The main causes of sickness absence were:
Katherine Moxham, spokesperson for Grid, said: “Absence in the UK workplace is now costing 56% of employers between 1% and 5% of their overall payroll, which highlights the value of keeping employees in work and in good health.” Contact us about health and wellbeing employee beneits.
• neck, back and muscle pain (30.6
million days) • minor illnesses (27.4 million days) • mental health problems such as
stress and anxiety (15.2 million days).
Arthur Beverly Financial Management is authorised and regulated by the Financial Conduct Authority. Financial Services Register number 485198. Registered in Scotland Number 342744. Registered Office: 22 Backbrae Street, Kilsyth, G65 0NH
Talk to us about employee related issues.
www.abfm.co.uk
a quarter of pension savers are planning to use “most or all” of their savings to buy an annuity. Over a third of employers have seen their employee absence rates improve; we look at the reasons why. Nearly a ifth of homes built in the last 12 months were purchased through the Help to Buy scheme. And most savers did not take full advantage of their 2013/14 cash ISA allowance.
MAY 2014
In this month’s Wealth Knowledge newsletter…
A quarter of retirees will buy an annuity A quarter of deined contribution pension scheme members will use “most or all” of their pension savings to buy an annuity, according to consultancy irm Hymans Robertson. The survey of 1,000 scheme members found that of the remaining 75%: • 32% would take most of their pension
in cash and use some to buy an annuity • 31% would not buy an annuity and take
annual income from the pot
• 12% would bypass the annuity
market altogether and take their whole pension pot as cash. 34% of respondents aged over 51 think that annuities “are not lexible enough” and 38% see them as “poor value”. People aged under 51 have more conidence in the market, with 20% of respondents concerned about lexibility and 21% regarding annuities as poor value.
Hymans Robertson’s Chris Noon said: “The Chancellor’s Budget changes aren’t yet cold, but the mind-set of savers is clearly already changing. Greater trust and lexibility has been welcomed and annuities are set to be a product for the minority, not the masses.” Talk to us about changes to pension rules.
Help to Buy boosts new home sales
ISA allowances underused by savers
Almost 20% of new-build homes built since April 2013 were purchased using the Government’s Help to Buy equity loan scheme, research by Countrywide has found.
Almost two thirds of adults did not use their individual savings account (ISA) allowance during the 2013/14 tax year, according to research by TSB.
Almost 15,000 new properties were sold in the irst 10 months of the scheme, mainly to irst time buyers. Key indings: • 28% of new houses built in the north east in
the last 9 months were sold via the equity loan scheme
• this compares to 9% of new homes in London • in Q1 2014 there were an average of 12
buyers chasing each new property – a 20% increase on Q4 2013
• in London there were 25 buyers for each new
property. Grenville Turner, chief executive of Countrywide, said: “The scheme has had a positive impact on house builder conidence with many now believing that they can sell what they build, which as we know means they will build more.”
Of the 2,005 people questioned, 63% did not open an ISA in 2013/14. Just 15% used the full 2013/14 cash ISA allowance and 22% of respondents invested a partial amount. Key indings: • The average ISA balance of respondents was £1,211, well
below the 2013/14 cash investment limit of £5,760
• This equates to a shortfall in ISA balances of more than £200
billion across the UK
• 43% of savers prioritised long-term investments, such as
those intended for retirement. Jonathan Hall, head of savings at TSB, said: “Interest rates might be low at the moment, but thinking about the long term health of inances is important. Taking advantage of tax free savings now should be high on the priority list as it puts more money back into people’s pocket. Even if someone has just a few pounds to save, they should be saving it in an ISA.” Research published by uSwitch revealed that the number of people planning to save in a cash ISA will fall from 63% to 54% this year. According to the price comparison site, 11% of consumers are deterred by low interest rates and 1 in 5 (19%) cannot aford to save into an ISA.
Important Information
ISA and Pension eligibility depend on personal circumstances. Tax rules and allowances are not guaranteed and may change in the future. This document is solely for information purposes and nothing in this document is intended to constitute advice or a recommendation. You should not make any investment decisions based upon its content. The value of investments can fall as well as rise and you may not get back the full amount you originally invested. Whilst considerable care has been taken to ensure that the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information. Errors and omissions excepted.
[email protected] 0141 956 5525
Employee absence rates improve More than a third of employers saw an improvement in absence rates in the year to October 2013, according to a survey by Group Risk Development (Grid). The survey of 500 UK employers and 1,000 employees found that 34% of irms saw an improvement in absence rates in the 12 month period. Only 16% of irms saw their absence rates worsen. When asked about the reasons for the changes in absence rates: • 63% of employers cited good
workplace morale • 44% thought job anxiety played
the biggest part
• 35% said ‘presenteeism’, where
job anxiety causes employees to work more than their contracted hours or to work while they are ill
• 31% cited staf shortages.
According to the Oice for National Statistics, 131 million days were lost through sickness absence in 2013. The main causes of sickness absence were:
Katherine Moxham, spokesperson for Grid, said: “Absence in the UK workplace is now costing 56% of employers between 1% and 5% of their overall payroll, which highlights the value of keeping employees in work and in good health.” Contact us about health and wellbeing employee beneits.
• neck, back and muscle pain (30.6
million days) • minor illnesses (27.4 million days) • mental health problems such as
stress and anxiety (15.2 million days).
Arthur Beverly Financial Management is authorised and regulated by the Financial Conduct Authority. Financial Services Register number 485198. Registered in Scotland Number 342744. Registered Office: 22 Backbrae Street, Kilsyth, G65 0NH
Talk to us about employee related issues.
www.abfm.co.uk
a quarter of pension savers are planning to use “most or all” of their savings to buy an annuity. Over a third of employers have seen their employee absence rates improve; we look at the reasons why. Nearly a ifth of homes built in the last 12 months were purchased through the Help to Buy scheme. And most savers did not take full advantage of their 2013/14 cash ISA allowance.
MAY 2014
In this month’s Wealth Knowledge newsletter…
A quarter of retirees will buy an annuity A quarter of deined contribution pension scheme members will use “most or all” of their pension savings to buy an annuity, according to consultancy irm Hymans Robertson. The survey of 1,000 scheme members found that of the remaining 75%: • 32% would take most of their pension
in cash and use some to buy an annuity • 31% would not buy an annuity and take
annual income from the pot
• 12% would bypass the annuity
market altogether and take their whole pension pot as cash. 34% of respondents aged over 51 think that annuities “are not lexible enough” and 38% see them as “poor value”. People aged under 51 have more conidence in the market, with 20% of respondents concerned about lexibility and 21% regarding annuities as poor value.
Hymans Robertson’s Chris Noon said: “The Chancellor’s Budget changes aren’t yet cold, but the mind-set of savers is clearly already changing. Greater trust and lexibility has been welcomed and annuities are set to be a product for the minority, not the masses.” Talk to us about changes to pension rules.
Help to Buy boosts new home sales
ISA allowances underused by savers
Almost 20% of new-build homes built since April 2013 were purchased using the Government’s Help to Buy equity loan scheme, research by Countrywide has found.
Almost two thirds of adults did not use their individual savings account (ISA) allowance during the 2013/14 tax year, according to research by TSB.
Almost 15,000 new properties were sold in the irst 10 months of the scheme, mainly to irst time buyers. Key indings: • 28% of new houses built in the north east in
the last 9 months were sold via the equity loan scheme
• this compares to 9% of new homes in London • in Q1 2014 there were an average of 12
buyers chasing each new property – a 20% increase on Q4 2013
• in London there were 25 buyers for each new
property. Grenville Turner, chief executive of Countrywide, said: “The scheme has had a positive impact on house builder conidence with many now believing that they can sell what they build, which as we know means they will build more.”
Of the 2,005 people questioned, 63% did not open an ISA in 2013/14. Just 15% used the full 2013/14 cash ISA allowance and 22% of respondents invested a partial amount. Key indings: • The average ISA balance of respondents was £1,211, well
below the 2013/14 cash investment limit of £5,760
• This equates to a shortfall in ISA balances of more than £200
billion across the UK
• 43% of savers prioritised long-term investments, such as
those intended for retirement. Jonathan Hall, head of savings at TSB, said: “Interest rates might be low at the moment, but thinking about the long term health of inances is important. Taking advantage of tax free savings now should be high on the priority list as it puts more money back into people’s pocket. Even if someone has just a few pounds to save, they should be saving it in an ISA.” Research published by uSwitch revealed that the number of people planning to save in a cash ISA will fall from 63% to 54% this year. According to the price comparison site, 11% of consumers are deterred by low interest rates and 1 in 5 (19%) cannot aford to save into an ISA.
Important Information
ISA and Pension eligibility depend on personal circumstances. Tax rules and allowances are not guaranteed and may change in the future. This document is solely for information purposes and nothing in this document is intended to constitute advice or a recommendation. You should not make any investment decisions based upon its content. The value of investments can fall as well as rise and you may not get back the full amount you originally invested. Whilst considerable care has been taken to ensure that the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information. Errors and omissions excepted.
