Inflation rose by 2.5% in the 12 months to June 2021, up from 2.1% in May, according to the latest figures from the ONS. On a monthly basis, rose by 0.5% in June, compared with a rise of 0.1% in June 2020. CPIH The Consumer Prices Index including owner occupiers’ housing costs, costs, rose by 2.4% in the 12 months to June, up from 2.1% in May, rising by 0.4% on a monthly basis.
The government is reportedly planning reductions to the pensions lifetime allowance to recoup costs in this Autumn's Budget. The Treasury is considering plans to change the way pension contributions are taxed, following a huge increase in public spending during the pandemic. One proposal is to cut the pensions lifetime allowance (LTA) from £1,073,100 to £800,000 in the next Budget. In this year's Spring Budget, the Chancellor pledged to freeze the current LTA rate at £1.073m until April 2026.
UK borrowers who have been financially impacted by the Covid-19 crisis are likely to seek mortgage advice, according to Legal & General. Its latest research uncovered three in five borrowers (60%) whose financial circumstances have changed and 50% of borrowers who have not seen a change to earnings say that it will be important to seek advice when looking for their next mortgage.
The government announced in February it was to press ahead with proposals aimed at increasing the, the age at which people can access private pension savings, from 55 to 57. It was a coalition government policy in 2014 that it would be appropriate for the age to be set at 10 years below state pension age. It was argued in the latest government’s consultation that increasing the NMPA reflected increases in longevity and changing expectations of how long we will remain in work and in retirement. Theory behind the change to 57 and the government’s concerns around people having enough to live off in retirement. However, if you are worried about the longevity of people’s pension pots and people accessing their savings too early, you would not move the NMPA to 57.
People will face a retirement income lottery as providers are poised to put their pension pots into a hotchpotch of 'one-size-fits-all' investment funds as from the 1st of February 2021.New rules mean over-55s who dip into their pension for the first time without getting financial advice and who have not indicated a wish to manage their pension fund themselves could have the remainder of their pot funnelled into one of four funds offered by their provider.