More people than ever celebrate their 100th birthday. Here’s why it affects financial plans Retirement 14/11/2023 More people in England and Wales are celebrating their 100th birthday. It could have implications for your financial plan and creating an income in retirement. According to a release from the Office for National Statistics (ONS), on Census Day in 2021, there were 13,924 centenarians living in England and Wales. The oldest person to complete the census was 112. While centenarians represent just 0.02% of the total population, the number of people celebrating the milestone is growing rapidly. In fact, when compared to 100 years ago, the number of centenarians has increased 127-fold. Between 2011 and 2021, the number of people over 100 increased by 24.5%. Once population is taken into account, the UK ranks as the ninth country for the highest number of centenarians. Centenarians will have lived through the second world war and decimalisation The almost 14,000 centenarians who completed the 2021 census have lived through many defining moments.
Inflation has cost savers £113 billion in real terms in the last year Lifestyle 18/10/2023 High inflation over the last year has collectively cost savers billions of pounds in real terms, according to an Independent report. Have you considered the effect the rising cost of living could have on your wealth? While inflation may not reduce how much you have in your savings account, in real terms, the value may fall. As the cost of goods and services rises, what you could purchase with your savings falls. Usually, this happens at a gradual pace. However, as inflation has been higher than the Bank of England’s (BoE) 2% target for two years, the effect has been more noticeable. If the interest rate your savings earn doesn’t keep pace with inflation, the value of your money decreases. Inflation could reduce the value of your savings in real terms, but cash may still be useful The BoE calculations suggest £10,000 in 2021 would have to have grown to £11,774 in August 2023 just to have the same spending power.
3 essential factors to consider if you plan to gift wealth to avoid Inheritance Tax Lifestyle 18/10/2023 Figures suggest more families are gifting to avoid Inheritance Tax (IHT). While passing on assets to loved ones may seem like a clear solution, it isn’t always so simple. More estates are becoming liable for IHT as thresholds for paying the tax are frozen. The Office for Budget Responsibility predicts HMRC will collect £8.4 billion from IHT receipts in 2027/28, compared to £7 billion in 2022/23. The portion of your estate that exceeds IHT thresholds could be taxed at a standard rate of 40%. So, it’s not surprising that families are looking for ways to mitigate a potential bill. According to a Telegraph report, the number of people who have gifted assets that would become exempt from IHT if they survived a further seven years increased by 48% between 2009/10 and 2019/20. If the value of your estate exceeds the nil-rate band, which is £325,000 in 2023/24, your estate may be liable for IHT.
5 valuable work benefits that could boost your financial wellbeing Lifestyle 27/09/2023 The “great resignation” is set to continue. If you’re searching for a new job, the salary is probably crucial when deciding if an offer is right for you. Yet, there are non-salary work benefits that could boost your wealth that you may be overlooking when you weigh up an opportunity. The Global Workforce Hopes and Fears Survey from PwC found that the cost of living crisis is pushing more workers to search for a pay rise. In fact, in the UK, 23% of employees say it’s likely they’ll change jobs in the next 12 months. Globally, the study found workers who are struggling to pay their bills are among the most likely to seek a new job, second only to those who feel overworked. So, for many workers, the salary on offer at a new job could influence their decision. If improving your long-term financial wellbeing is your goal, there could be other factors that are just as important.
Pensions could be fuelling climate change with huge £88 billion investment Lifestyle 27/09/2023 Climate change is a huge global issue. Yet, research indicates that pension funds are investing billions of pounds in businesses that are contributing to the challenge. Does your pension invest in fossil fuel companies? The Make My Money Matter campaign claims UK pension funds are investing £88 billion in fossil fuel companies. On average, this works out to around £3,000 for each pension holder. The campaign, which encourages UK pensions and banks to stop “destructive, harmful investments”, states the actions of fossil fuel companies that pensions are investing in aren’t aligned with climate change goals. Among the pension funds analysed, 70% said fossil fuel giant Shell was among their largest holdings, and 60% said the same about BP. Conversely, there were no renewable energy stocks listed among the top holdings of any of the pension funds assessed.
