8 things entrepreneurs can do to improve their financial resilience Lifestyle 20/04/2022 More people than ever before are working for themselves and setting up businesses. It can be incredibly rewarding, but you also need to consider how it’ll affect your financial resilience. The UK has a great spirit of entrepreneurship. According to the Office for National Statistics, around 4.8 million people (more than 15% of the labour force) is self-employed, and it’s something younger generations are continuing. According to a report in Business Leader, 50% of new businesses set up between July 2020 and June 2021 were done so by people aged between 25 and 40. And Generation Z, who are under 25, is already responsible for 7.8% of new companies. The data suggests that being self-employed is going to become even more common in the coming years. The graph below shows the different types of self-employment across the UK.
“Midlifers” are hit by time and financial pressures. Financial planning can help balance your priorities Lifestyle 20/04/2022 Individuals aged between 40 and 60 – dubbed “midlifers” – are facing time and financial pressures as they try to support their families. Many are feeling the strain and don’t have the resources to focus on their own goals, and financial planning could help. According to a survey from Legal & General, 6 million midlifers are finding themselves caught in the middle of providing financial support to adult children and providing unpaid care to ageing relatives. On top of this, it’s a crucial period for securing their own financial future and retirement. The research found 17% of midlifers provide financial support to another adult, totalling £10 billion a year. Those supporting grown-up children provide, on average, £247 a month. Midlifers financially helping elderly parents or other relatives spend, on average, £282 a month. The findings suggest that at age 45, you’re likely to have the greatest level of financial responsibility, while age 58 is when you’re most likely to start taking on some care responsibilities.
The useful guide to reaching your retirement goals Guides/Retirement 11/04/2022 Getting the most out of retirement and reaching your goals requires planning. Not thinking about your post-work years until you reach that milestone can mean that a retirement that promised much, falls short. While you might daydream about giving up work, pinning down the details, from your lifestyle to your income, means you’re more likely to turn your dream into a reality. This guide can help you start to think about the retirement you want and the steps you need to take to secure it. Among the questions it can help you answer are: When do you want to retire? Is blending work and retirement an option you should consider? What does your ideal retirement look like? What are your priorities for retirement? How much income will you need in retirement? Download your copy of “The useful guide to reaching your retirement goals” to start planning your future.
The chancellor is reportedly drawing up plans to scrap the additional-rate tax band. Here’s what it could mean Lifestyle 30/03/2022 Reports suggest that the top rate Income Tax band could be scrapped in the next few years. It could cut your tax bill and, somewhat counterintuitively, could increase how much the Treasury takes in tax. According to a report in Citywire, chancellor Rishi Sunak has drawn up plans to cut taxes ahead of the 2024 election, and Income Tax is one of his main targets. It’s suggested that not only will Sunak cut the basic rate of Income Tax by 2p but he will also scrap the top 45% Income Tax band. For the 2022/23 tax year, Income Tax bands are: The reported cuts would mean that the basic rate of Income Tax would fall from 20% to 18%. This would save basic-rate taxpayers up to £750 a year. If you’re an additional-rate taxpayer, the changes could significantly reduce your Income Tax bill.
More people than ever are saving into a pension, but 6 in 10 aren’t confident about their knowledge Lifestyle 21/03/2022 The latest figures from the Pension Regulator prove that pension auto-enrolment has been a success – more people than ever are saving into a pension. Yet, research also shows that many people don’t think they know enough about saving for retirement. Before the government introduced auto-enrolment in 2012, just 4 in 10 private sector workers were actively saving into a pension. Now, more than 70% of employees are taking steps to secure their retirement. According to the Office for National Statistics, pensions represent the largest portion of private wealth in the UK. Individuals hold £6.4 trillion in pensions. The figure compares to £5.5 trillion in property and £2 trillion in cash. The number of people saving for retirement is rising and the accumulated wealth in pensions is certainly good news, but simply paying into a pension isn’t enough to be sure of a comfortable retirement.
