01462458863 enquiries@handefs.co.uk

Newsletter December 2019

Savers warned over raiding pension to invest in property

Retirement savers in their mid-40s and early 50s have been urged to think twice about accessing their pension to invest in buy-to-let property.

YouGov polled 2,014 over-45s on behalf of Royal London and found 15% of over-55s are considering investing in property to fund their retirement.

Seek expert advice at Herts & Essex Financial Services before accessing your pension. http://www.handefs.co.uk/our-services/pensions


FCA removes the shackles for ‘mortgage prisoners’

Homeowners who are trapped with expensive mortgages will be allowed to switch to potentially cheaper loans under new rules.

The Financial Conduct Authority’s (FCA) responsible lending rules aim to remove barriers that stop people from renegotiating.

Contact us about your personal finances. http://www.handefs.co.uk/our-services


Lifetime allowance increase ‘fails to keep up with earnings inflation’

The lifetime allowance may be becoming less generous to pension savers, despite rising to £1.075 million for 2020/21.

At a time of political uncertainty and after the cancellation of Budget 2019, the lifetime allowance is one of the few figures set in stone for next April.

Talk to us about planning your retirement. http://www.handefs.co.uk/our-services/pensions


State pension poised for biggest uprating since 2012/13

Retirees are set to receive the highest increase to their state pension in eight years in 2020/21.

The state pension increases each year by whichever is the highest of average wage growth, the consumer prices index (CPI) rate of inflation or 2.5%.

With inflation coming in at 1.7% in September 2019, average earnings growth of 3.9% in July 2019 is the figure poised to be used to uprate next year’s state pension.

This means a full new flat-rate state pension is expected to increase from £168.60 a week next April to £175.20, boosting retirees’ coffers by £343.20 in 2020/21.

Get in touch about the state pension. http://www.handefs.co.uk/our-services/pensions


source: PracticeWeb December 2019