An even split
In total, over 6 million UK adults are planning to retire abroad, with an even split between Europe and the rest of the world. Of the estimated 3.2 million UK adults planning to retire in Europe, Spain is the most popular destination with 26% of the vote. France follows in second place with 17% of votes. Italy comes in third place with a 10% popularity rating.
The nature of retirement has changed – it is no longer a matter of leaving the workplace with a golden carriage clock and entering a quiet life of leisure.
Inflation figures recently showed a sharper than expected drop in prices, cementing expectations that any rise in interest rates would be delayed until next year.
It would appear we are now increasingly becoming a ‘consolidation nation’, with many people combining their different contracts and services to make them easier to manage. It’s a growing trend, and new innovations are coming into the market all the time to tempt consumers. The recent launch of ‘quad-play packages’, which now combines mobile, home phone, broadband and TV, are a good example.
More than one in four (28%) UK adults have been forced to borrow money from family members, according to new research. With the average amount borrowed by individuals standing at £2,123, the collective family lending economy is now worth around £31billion.
Family Generations & Financial Pressures is the title of the new report from Scottish Widows think tank Centre for the Modern Family and shows that 23% of family borrowers need this support just to cover day-to-day household costs.
The new Individual Savings Account (ISA) rules were introduced in July, giving savers and investors more flexibility and a larger tax-efficient allowance than ever before. Four out of ten people told the consumer organisation Which? that they would save more as a result of the annual limit increasing to £15,000, up from £11,880.
Most investors are used to hearing the term ‘diversification’ – but it has a broader meaning than many realise. Diversification is the process of investing in areas that have little or no relation to each other. This is called a ‘low correlation’.
On 10 July this year, the Office for Budget Responsibility warned that many of us might not be eligible for a State Pension until we reach the age of 70. That’s the minimum age AT WHICH the Government will be able to afford to pay our pensions by 2063 if it is also to stop the national debt spiralling out of control.
£325,000
The first £325,000 value of your estate is called the ‘Nil Rate Band’ because although it is taxable to Inheritance Tax (IHT), it is taxed at 0% (tax year 2014/15).
Retirement should be an exciting time, and these days there’s more scope than ever to arrange your finances the way you want them. For example, you could continue to work and take your pension benefits. That flexibility is great, but it does mean that the financial decisions coming up need careful consideration.