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.
The deputy governor of the Bank of England, has written to firms asking about their 'operational readiness' for a zero or negative Bank Rate. The Bank is asking firms to provide information on what operational preparations they would need to make in the event that the Bank’s Monetary Policy Committee considers a zero or negative policy rate. The deadline for responses is Thursday 12 November 2020. In August, the Bank of England’s Monetary Policy Committee (MPC) noted that it would continue to assess the appropriateness of a negative official Bank Rate alongside all of its other tools.
How pension schemes provide tax relief to their members so what is the difference between net pay and relief at source? Net pay schemes can sound very misleading because the contributions are paid out of the gross earnings before any tax is deducted. This means that for those that pay tax it automatically reduces their taxable earnings so they will immediately pay less tax. On the flip side, it means that for those that don't pay tax they won't benefit from any relief.