Research from Royal London has shown that savers could potentially risk throwing away thousands of pounds if they choose to cash in their pension to purchase a second property. The mutual insurer found that 15% of people aged over 55 would consider investing in a buy-to-let property to fund their retirement. However, for those approaching the age at which they can access their pension (45-54) the figure almost doubles to 29%. Royal London suggests that savers should think twice before raiding their pension as not only would they have to pay income tax on any pension withdrawal; they would also incur costs such as stamp duty. These taxes can bite huge chunks out of the initial sum meaning people may need to radically rethink what type of property they can afford.
Nationwide's Chief Economist, Robert Gardner, shares his views on the outlook for the UK economy, housing and mortgage market and interest rates, in this latest economic update video.
By the end of 2021, the 50-year-old interbank global borrowing rate, LIBOR, will be no more and the monumental changes will affect the way trillions of dollars of worldwide financial contracts are priced, including loans for property developments. Property developers need to be aware of this, because it is likely to impact the interest rate they pay on their loans.
Five million pension savers could be susceptible to the common tactics used by scammers to steal retirement savings, research suggests. Two-fifths (42%) of 45 to 65-year-olds with a pension could end up putting themselves at risk, according to a survey released by the Financial Conduct Authority (FCA) and the Pensions Regulator (TPR). Presented with six scam scenarios, they said they would act in one or more ways which could potentially leave them exposed to fraud. This could equate to five million people being susceptible to pension scams if the survey findings were projected across the UK.
Fund manager Neil Woodford will keep his flagship £3.7bn fund frozen for at least another month, leaving thousands of investors without access to their money. Mr Woodford, one of Britain's best known money managers, released a video - the second since the Woodford Equity Income Fund was suspended on 3 June - in which he said there was "no prescribed time limit" on how long it could cease trading for.