The need for long-term care and how it should be paid for is arguably one of the greatest causes for concern among our growing elderly population. Almost half a million people are now in residential care homes, nursing homes and long stay hospitals.
Figures published by the Association of Investment Companies (AIC) show that £330 million (value of new shares issued), was raised by the Venture Capital Trust (VCT) sector during the 2011/2012 tax year compared to £365 million in the 2010/11 tax year and the sixth highest amount since VCTs were first launched in 1995.
In amongst the technical papers issued by HM Revenue & Customs (HMRC) on the back of the Budget 2012 changes, Skandia has discovered a hidden gem. An alteration in the formula for calculating tax-free cash for pre 6 April 2006 (A-Day) members of occupational pension schemes could lead to people receiving more tax-free cash when they retire.
Britons face an income gap of £411 per month between their current net income and what they feel would allow them to live comfortably, according to a new report from Aviva. The Times of our Lives report1 found that this additional desired income would be equivalent to an extra £7,236 per year (gross).
Change to retirement age
The Chancellor confirmed in Budget 2012 that he would increase the state pension age and that we should brace ourselves for having to work much longer in the future. There are already two increases to the state pension age scheduled for 2019 and 2026. If after 2026 the state pension age increases in line with our changing life expectancy, we could expect that someone who is currently 37 won’t be able to start drawing their state pension until they are 70 and someone who is
21 won’t receive it until they are 75.
Four out of five new parents are risking their children’s financial futures by skimping on life cover, according to new research from Aviva.
Despite being a fundamental piece of family financial planning, six out of ten (61 per cent) of British adults don’t currently have a will* drawn up, according to research by Standard Life.
In a low gilt yield environment, having flexibility within a pension arrangement can make a big difference. Options include either delaying taking pension benefits until the situation improves, or phasing money into drawdown, to benefit from any potential upturn.
Reforms designed to get more people saving for retirement have been pushed back so many times that the latest delay scarcely made the news. It will now be October 2018 before minimum employer contributions to workplace pensions are fully phased in. Previously, this was supposed to happen by October 2017 – and before that by 2016, and before that by 2015.
Picking the right balance of assets for your portfolio depends upon your own risk profile. One way to protect your portfolio is to spread your risk by diversifying across several different types of investment funds and classes of securities and localities in order to distribute and control risk.