Get rich by having wealthy parents

What’s the secret to building wealth? It helps to have wealthy parents. New research by the Institute for Fiscal Studies (IFS) looks at the impact that wealthier parents have on transferring economic advantages to their children. The headline finding might come as little surprise; young adults with wealthy parents are, on average, six times as rich themselves when compared to …

Workplace pensions hold up throughout the pandemic

What did the pandemic mean for workplace pension savings? According to new research, three-quarters of savers were happy to be automatically enrolled in their workplace pension scheme during the pandemic. The research by online pension provider PensionBee found that a third of savers said being auto-enrolled highlighted the importance of saving for the future. Only 18% of respondents said they …

Not running out of money in retirement

What is the ultimate financial goal in retirement? For many, the sign of success once they finish working is running out of life before running out of money. Financial planning as it relates to retirement has a significant focus on cash flow forecasting to ensure that income and assets do not run out during an anticipated lifetime. New research from …

Watch out for this pension tax charge

New analysis has shed light on how even people on moderate earnings could see their retirement plans damaged by the little-known Money Purchase Annual Allowance (MPAA). The research from insurer Aegon concluded that people earning £30,000 a year would incur the MPAA penalty with monthly contribution rates over 13.4%. The MPAA was first introduced alongside Pension Freedoms as a way …

Inheritance arrives at 47 years old

The average age for receiving an inheritance is 47. New research by equity release specialist Key has found that more than 11.6 million people in the UK have received an inheritance in the past decade. It means that 22% of adults have received an inheritance. For those aged between 65 and 74, the proportion rises to 29%. Parents are leaving …

Going beyond the money with financial planning

Financial planning is about so much more than just money! New research from insurer Aegon has highlighted how much further most financial advisers go when working with their clients. According to the research, 78% of financial advisers ask their retirement clients about what gives them meaning, purpose and happiness. Because, after all, what’s the point in having money if you’re …

Building financial resilience through social enterprises

One consequence of the pandemic is a significant rise in the level of financial vulnerability. New research from insurer Royal London has found that 15.9 million people, equivalent to 30% of the adult population, now feel more financially vulnerable than they did before the onset of the pandemic. Of those feeling more financially vulnerable, a third said this was due …

State pension triple lock becomes double lock in 2022

As widely anticipated in the face of rapidly rising earnings, the government has suspended its state pension triple lock guarantee. The one-year suspension of the triple lock formula means the government will apply a less generous ‘double lock’. In April 2022, state pension income will increase by 2.5% or Consumer Prices Index (CPI) inflation, whichever is higher. Suppose the triple …

Are you claiming Marriage Allowance to save £252 a year?

All is fair in love and war – except if you are married. In that case, you have a small advantage over your fellow couple who have spurned the aisle in favour of co-habitation. As many as 1.8 million married couples and couples in civil partnerships have benefited from the Marriage Allowance, saving up to £252 a year in income …

National Insurance and dividend income tax go up to pay for care

After days of leaks in the newspapers, we received confirmation today from the Prime Minister that taxes are rising to pay for the NHS and social care. Boris Johnson announced two tax hikes, despite an election manifesto promise in 2019 to not raise taxes. Employee and employer rates of National Insurance will both rise 1.25% from April 2022. Also going …