Newsletter July 2020
Base rate cuts have significant effect on savings market
Dwindling interest rates have seen average savings rates for ISAs drop to their lowest levels since records began in 2008, according to Moneyfacts.
During the first six months of the year, the average easy access ISA rate collapsed to a low of 0.45%, from 0.85% in January.
Cuts to the base rate of interest from 0.75% to 0.25% on 11 March 2020, and to 0.1% on 19 March, followed by COVID-19, were behind the fall.
Get in touch with Herts & Essex Financial Services to discuss your saving strategy. http://www.handefs.co.uk/our-services/investments-and-nisas
COVID-19 prompts 1 in 10 workers to stop pension contributions
One in ten workers have stopped or reduced their pension contributions as a result of the coronavirus, a report claims.
Scottish Widows polled 2,251 workers during the COVID-19 crisis and found that short-term financial pressures were affecting long-term saving goals.
Around one in five (19%) experienced a fall in income since lockdown measures were imposed in the UK on 23 March 2020.
Taking a closer look, 43% of self-employed workers saw a drop in their income, compared to 16% of employees.
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UK economy experiences biggest monthly fall in GDP
The UK’s economy experienced the largest monthly contraction on record in April 2020, shrinking by 20.4%.
The sharp fall in GDP came as the UK spent its first full month in lockdown to halt the spread of COVID-19.
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Retirement saving fears as 600,000 roles wiped out by lockdown
Falling rates of employment could considerably affect the UK’s retirement prospects, according to Aegon.
The Office for National Statistics (ONS) revealed last month that the number of workers on UK payrolls fell by around 612,000 between March and May.
Contact us at Herts & Essex Financial Services for retirement planning advice. http://www.handefs.co.uk/our-services/pensions
Source: Practiceweb July 2020