Author Archive
May Inflation figures
The May inflation numbers from the Office for National Statistics (ONS) came in higher than expected, a reverse of last month’s better than expected data.
Annual CPI inflation for May 2013 was 2.7%, 0.3% up from April and back to the level at the start of the year. The index showed prices increased by 0.2% across the month, against 0.1% drop in corresponding period last year. Most forecasts had been for annual inflation to rise to 2.6%.
The RPI figure rose by 0.2% to 3.1%. Over the month the RPI increased by 0.2%, against no change a year ago.
Steve Clark
Self-Employed pension shortfall
The average employee gets £91,512 in employer contributions to their pension scheme during their working life, according to research by Prudential cited by the Daily Mail.
Self-employed people don’t get such contributions (though overall they do pay less National Insurance) and need to make up for the lack of them by saving more.
Though many self-employed (and employed) people say they can’t afford to save, most people find that once they’ve been saving for a few months, they no longer miss the cash they are saving. The gain is worth the pain!
If you are self-employed and would like to look at ways in which to save tax and save call us on 0116 380 0133.
Steve Clark
A higher pension–but at what price?
Former BT employees are the latest to get an offer from their former employer of a higher 
pension.
Similar offers have previously been made by Boots and ITV. Of course there’s a catch. The company is offering a higher fixed pension that will never increase in future, whereas its normal pension rises in line with inflation.
For those in good health, the danger of taking the fixed pension is that they live into their nineties and that the rate of inflation rises – in that case the spending power of their income will shrink. On the other hand, for those in poor health who aren’t likely to live long, a higher income now could represent a very good deal.
If you get such an offer, ask our advice, as there are often wrinkles (for example in relation to spouse’s pension rights) that could be very important.
Steve Clark
Turkeys don’t always vote the way you think!
Turkey magnate Bernard Matthews’ business is struggling as a result of family feuding over his will since he died three years ago, reported the Sunday Times.
His children denied his request not to contest a provision of his will leaving a French villa to his mistress (they won a 56% share of it) while only his illegitimate son inherited shares in the business, which is now suffering a lack of investment and may need a £30 million cash injection by an external investor.
Business owners need to take great care with the provisions of their wills regarding their business interests, since it’s essential that there is clarity about ownership and management.
We will work with your accountant and legal adviser to help you find a solution to these issues. Call us if you’d like to arrange an initial meeting at our expense.
Steve Clark
Delaying your annuity can be costly
Delaying buying your annuity with a pension pot could prove costly, warns the Daily Telegraph.
It’s true that annuity rates rise with age, so a 67-year-old in good health gets about 5% more income from an annuity than a 65-year-old. But if at age 65 you defer buying an annuity for two years, you would have to live to the age of 106 before the higher income you get at age 67 would make up for the two years’ worth of income you never had.
Converting your ‘pension pot’ into lifetime income is one of the trickiest decisions people face. It’s vital to get advice – there are many more options than you may think.
At 44 Financial Ltd we specialise in helping those that are at retirement choose the right product and maximise the income they receive. We can ensure that you get the best rate by shopping around on your behalf.
If you need any help please call us on 0116 380 0133.
Steve Clark
Image courtesy of Flickr – Images of Money