BlackettwalkerltdPWP IFA WK Dec13 orange
Gosforth Park Avenue, Newcastle upon Tyne Tyne & Wear NE12 8EG 0191 256 9600 [email protected] www.blackett-walker.co.uk
Welcome to your December newsletter.
Retirement income review launched
In this issue, we look at a new review of the UK’s inancial needs in retirement and whether current products are enough to meet those needs. We examine data that suggests lifetime gifts are changing the nature of inheritance. A survey has shown that just over half of people feel they have enough money saved in the event of a ‘rainy day’ emergency. And new data showed that the number of mortgages with arrears and the number of property repossessions both fell in the third quarter of this year.
December 2013
A review of the UK’s inancial needs in retirement, and what changes are needed to ensure these are met, has been launched by the Association of British Insurers (ABI).
nearly 50 per cent in the next 20 years •
our ‘chronic’ under-saving culture
•
the introduction of auto-enrolment and changes to the state pension age
•
increased demand for long-term care 16 per cent of over-85s will need to go into a care home.
The review will focus on three key questions: 1.
what are people’s inancial needs in - and concerns about - retirement?
2.
how efectively do current products cater for retirement needs?
3.
what changes are needed to ensure adequate retirement incomes?
The ABI is inviting views and opinion from consumers and industry experts, as well as from politicians and unions. Consumers will be able to comment by completing a survey at the ABI’s website.
Launching the ‘holistic’ review, the ABI’s director general Otto Thoresen said: “How we pay for life after work is one of the key challenges facing our society, and the reason we have launched this wide-ranging review. Radical reform is needed to ensure people retiring today and future generations avoid a retirement of struggling to make ends meet.”
The review comes in response to the challenges for the provision of income in retirement:
WE CAN ADVISE...
• our ageing population - there are 11 million over-65s in the UK and this is expected to rise by
...on retirement planning. Talk to us to ind out more.
Blackett Walker Ltd is Authorised & Regulated by the Financial Conduct Authority. Registered in England Number: 2895559.
Lifetime gifts alter the ‘traditional inheritance’ The traditional inheritance is increasingly becoming a thing of the past as more parents choose to give away assets during their lifetime, data from the Oice for National Statistics (ONS) has suggested.
• Half of inheritors received less
The UK’s ageing population, along with rising living and care costs, is also diminishing assets which might traditionally have been passed on to others, it said.
• Property formed 19.5 per cent of
than £10,000; one in ten received £125,000 or more • 88.4 per cent of inheritances
comprised of money and savings inheritances • Personal possessions, such as
jewellery and collectibles, were included in 12.4 per cent of inheritances.
Key statistics show that: • 1.6 million adults (3.6 per cent of the
population) received an inheritance of £1,000 or more between 2008/10
Commenting on the ONS igures, Nigel Waterson, Chairman of the Equity Release Council, said: “For many of us, it is important that we leave something
Emergency savings habits revealed
Almost one in 10 people think it’s unnecessary to put money aside for an emergency and more than a quarter with a ‘rainy day’ fund have dipped into it when they didn’t have to, according to the latest quarterly survey from National Savings and Investments (NS&I).
The latest NS&I Quarterly Savings Survey also shows that the average monthly saving amount is now £96 up from £88 in the previous quarter. Other headline indings from the NS&I survey include: • Just 53 per cent of savers think
they have enough put aside to cope in an emergency • ‘Essential home maintenance’
is the most common reason for dipping into a rainy day fund • Those aged 16 - 24 regret
breaking into their emergency fund the most (29 per cent)
• 62 per cent of those aged 65
or over said they never break into their emergency funds. John Prout, NS&I Retail Customer Director, said: “We’re all familiar with the expression ‘saving for a rainy day’ but it is interesting to see how many of us are actually doing this. And, when we are doing it, how many of us are prepared to dip into a rainy day fund when it is not really an emergency. “By taking control of your inances, and if possible putting aside some money for a ‘rainy day’, you can protect yourself should anything unfortunate happen, and have peace of mind that you have your emergency fund to dig in to, in order to help cover the costs of any unforeseen circumstances.”
behind for our loved ones but, with the cost of living soaring and our savings dwindling rapidly, this is becoming increasingly diicult. “An increasing number of people are moving away from the idea of a traditional inheritance, instead giving money to younger family members to help them pay for university or get their foot on the property ladder.”
TALK TO US... ...about estate planning.
Arrears and repossessions down in Q3 The number of people behind with their mortgage payments and the number of properties repossessed both fell slightly in the third quarter of 2013, according to data from the Council of Mortgage Lenders (CML). The number of mortgages that had arrears of more than 2.5 per cent of their balance was down to 149,400 at the end of Q3, from 154,900 in the second quarter of the year. Repossessions also fell by 400, down to 7,200 in the third quarter from 7,600 in Q2. The CML data covers both the home-owner and buyto-let markets. The survey showed that arrears among buy-to-lets were lower than in the home-owner market, but that repossessions were slightly higher in the buyto-let market. The director general of the CML, Paul Smee, said: “By talking to their lender as soon as possible, most can resolve their temporary problems, without the lender resorting to repossession. It also makes sense for people to think ahead now to how they will manage their inances to cope with higher interest rates, and higher mortgage payments, as and when rates rise in the future.”
Important Information The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to 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. Some estate planning advice and services, such as will writing and advice on gifting, are not regulated by the FCA. The value of investments can fall as well as rise and you may not get back the full amount you originally invested. Your home may be repossessed if you do not keep up repayments on your mortgage. 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.
Welcome to your December newsletter.
Retirement income review launched
In this issue, we look at a new review of the UK’s inancial needs in retirement and whether current products are enough to meet those needs. We examine data that suggests lifetime gifts are changing the nature of inheritance. A survey has shown that just over half of people feel they have enough money saved in the event of a ‘rainy day’ emergency. And new data showed that the number of mortgages with arrears and the number of property repossessions both fell in the third quarter of this year.
December 2013
A review of the UK’s inancial needs in retirement, and what changes are needed to ensure these are met, has been launched by the Association of British Insurers (ABI).
nearly 50 per cent in the next 20 years •
our ‘chronic’ under-saving culture
•
the introduction of auto-enrolment and changes to the state pension age
•
increased demand for long-term care 16 per cent of over-85s will need to go into a care home.
The review will focus on three key questions: 1.
what are people’s inancial needs in - and concerns about - retirement?
2.
how efectively do current products cater for retirement needs?
3.
what changes are needed to ensure adequate retirement incomes?
The ABI is inviting views and opinion from consumers and industry experts, as well as from politicians and unions. Consumers will be able to comment by completing a survey at the ABI’s website.
Launching the ‘holistic’ review, the ABI’s director general Otto Thoresen said: “How we pay for life after work is one of the key challenges facing our society, and the reason we have launched this wide-ranging review. Radical reform is needed to ensure people retiring today and future generations avoid a retirement of struggling to make ends meet.”
The review comes in response to the challenges for the provision of income in retirement:
WE CAN ADVISE...
• our ageing population - there are 11 million over-65s in the UK and this is expected to rise by
...on retirement planning. Talk to us to ind out more.
Blackett Walker Ltd is Authorised & Regulated by the Financial Conduct Authority. Registered in England Number: 2895559.
Lifetime gifts alter the ‘traditional inheritance’ The traditional inheritance is increasingly becoming a thing of the past as more parents choose to give away assets during their lifetime, data from the Oice for National Statistics (ONS) has suggested.
• Half of inheritors received less
The UK’s ageing population, along with rising living and care costs, is also diminishing assets which might traditionally have been passed on to others, it said.
• Property formed 19.5 per cent of
than £10,000; one in ten received £125,000 or more • 88.4 per cent of inheritances
comprised of money and savings inheritances • Personal possessions, such as
jewellery and collectibles, were included in 12.4 per cent of inheritances.
Key statistics show that: • 1.6 million adults (3.6 per cent of the
population) received an inheritance of £1,000 or more between 2008/10
Commenting on the ONS igures, Nigel Waterson, Chairman of the Equity Release Council, said: “For many of us, it is important that we leave something
Emergency savings habits revealed
Almost one in 10 people think it’s unnecessary to put money aside for an emergency and more than a quarter with a ‘rainy day’ fund have dipped into it when they didn’t have to, according to the latest quarterly survey from National Savings and Investments (NS&I).
The latest NS&I Quarterly Savings Survey also shows that the average monthly saving amount is now £96 up from £88 in the previous quarter. Other headline indings from the NS&I survey include: • Just 53 per cent of savers think
they have enough put aside to cope in an emergency • ‘Essential home maintenance’
is the most common reason for dipping into a rainy day fund • Those aged 16 - 24 regret
breaking into their emergency fund the most (29 per cent)
• 62 per cent of those aged 65
or over said they never break into their emergency funds. John Prout, NS&I Retail Customer Director, said: “We’re all familiar with the expression ‘saving for a rainy day’ but it is interesting to see how many of us are actually doing this. And, when we are doing it, how many of us are prepared to dip into a rainy day fund when it is not really an emergency. “By taking control of your inances, and if possible putting aside some money for a ‘rainy day’, you can protect yourself should anything unfortunate happen, and have peace of mind that you have your emergency fund to dig in to, in order to help cover the costs of any unforeseen circumstances.”
behind for our loved ones but, with the cost of living soaring and our savings dwindling rapidly, this is becoming increasingly diicult. “An increasing number of people are moving away from the idea of a traditional inheritance, instead giving money to younger family members to help them pay for university or get their foot on the property ladder.”
TALK TO US... ...about estate planning.
Arrears and repossessions down in Q3 The number of people behind with their mortgage payments and the number of properties repossessed both fell slightly in the third quarter of 2013, according to data from the Council of Mortgage Lenders (CML). The number of mortgages that had arrears of more than 2.5 per cent of their balance was down to 149,400 at the end of Q3, from 154,900 in the second quarter of the year. Repossessions also fell by 400, down to 7,200 in the third quarter from 7,600 in Q2. The CML data covers both the home-owner and buyto-let markets. The survey showed that arrears among buy-to-lets were lower than in the home-owner market, but that repossessions were slightly higher in the buyto-let market. The director general of the CML, Paul Smee, said: “By talking to their lender as soon as possible, most can resolve their temporary problems, without the lender resorting to repossession. It also makes sense for people to think ahead now to how they will manage their inances to cope with higher interest rates, and higher mortgage payments, as and when rates rise in the future.”
Important Information The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to 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. Some estate planning advice and services, such as will writing and advice on gifting, are not regulated by the FCA. The value of investments can fall as well as rise and you may not get back the full amount you originally invested. Your home may be repossessed if you do not keep up repayments on your mortgage. 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.
