Why taking too little investment risk could harm your goals Investments 22/09/2022 When you imagine the worries that might come with taking investment risk, it’s probably “taking too much” that comes to mind. After all, you’ve likely heard stories of people that have invested in high-risk opportunities and lost some or all their money. However, when you’re investing for the long term, taking too little risk can also be damaging. As inflation remains high, considering how you’ll get the most out of your money is more important than ever. While interest rates are also rising, they still remain far below inflation, which was 10.1% in the 12 months to July 2022. As a result, money held in a cash account is likely to be falling in value in real terms. So, you may be wondering if investing could provide you with a way to maintain or grow the value of your assets. One important thing to consider is: how much investment risk should you take?
1 in 3 savers worry they’ve “lost” a pension. Here’s how to track them down Lifestyle 08/09/2022 It can be easier than you think to lose your retirement savings. In fact, estimates suggest thousands of savers have forgotten about pensions that could support their retirement goals. 31 October marks National Pension Tracing Day, so it’s the perfect time to review your savings and see if you could reclaim lost money. As you could be paying into a pension for decades before you can access it, it’s easy to lose touch with some of your savings. Perhaps you’ve changed your job or moved home and didn’t update your details. Even small sums in a pension can support your retirement goals, so it’s worth spending some time tracking down lost savings. 1 in 3 savers worry that they’ve “lost” a pension It’s becoming more common to switch jobs frequently during your working life. As a result, many employees will build up multiple pensions during their careers, and it is hard to keep track of the different pots.
The parents’ guide to paying for university and student loans Guides 07/09/2022 As a parent, it is important to understand what expenses students face, how they will repay student loans in the future, and how you could offer support. If your child will be going to university this year or is planning to further their education in the future, you undoubtedly feel proud. However, you may also worry about what it means for your child financially. As a parent, it is important to understand what expenses students face, how they will repay student loans in the future, and how you could offer support. This could put your mind at ease and mean you could take steps that will allow your child to focus on their studies. In this guide, read more about: The cost of going to university, including tuition fees and living costs How student loans work How students can fund postgraduate education What to consider if you want to make your child’s education part of your financial plan And more… Download your copy of “The parents’ guide to paying for university and student loans” to learn more.
How self-employed workers can create financial security amid economic uncertainty Lifestyle 26/08/2022 As a self-employed worker, it can be more difficult to manage your finances. Your income may vary or not be as reliable as those who are employed. According to a study from Scottish Widows, almost half of self-employed workers said their income fluctuates. The research suggests that self-employed people could be more susceptible to income shocks, such as an unexpected bill or the need to take time off work due to illness. That doesn’t mean you should change your work, but taking extra steps to create financial security could be beneficial. This is particularly true in the current economic climate. In the 12 months to June 2022, inflation was 9.4%. As the cost of living rises, your outgoings may have increased, which could affect both your personal and work expenses. Uncertainty means that consumers and businesses are more likely to reduce their spending.
Young workers are on track to breach the pension Lifetime Allowance, and it shows the power of compounding Lifestyle 12/08/2022 Young workers calculating how much they need to save for retirement can feel like they face an impossible challenge. Yet, research suggests that a significant proportion could be on track to exceed the Lifetime Allowance (LTA). The findings highlight how valuable saving early and the compounding effect of investments are. The LTA is the total amount you can tax-efficiently save into pensions during your lifetime. If you exceed this threshold, additional charges could apply when you start to make withdrawals. For the 2022/23 tax year, the Lifetime Allowance is £1,073,100. It will be frozen at this level until April 2026. For someone just entering the workforce and earning a relatively low wage, the chance of exceeding that threshold can seem far-fetched. The top 10% of earners aged 18–21 could exceed the Lifetime Allowance by 58 According to research from PensionBee, the top 10% of earners aged between 18 and 21 could exceed the current LTA by the time they reach 58 – around seven years before the typical retirement age.
