Private sector pension scheme terminations continue

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A report by the National Association of Pension Funds (NAPF) has been released which shows more final-salary pension schemes have been closed to existing staff in the private sector during 2011.

Statistics show that around 23% of pension schemes are shut to future contributions from existing savers and new employees. The figures show a substantial increase from 17% in 2010 and just 3% in 2008. NAPF have estimated that this equates to over 25,000 workers moving out of final salary schemes ...

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One-size-fits-all approach to retirement planning is outdated

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It has been said that a one-size-fits-all approach to planning for retirement is no longer the way to secure definite financial stability in the future.

People preparing for retirement are facing exceptional financial challenges including increased life expectancy, rising living costs and reduced savings rates.

Dr Ros Altmann of Saga stated that rising inflation continues to deteriorate saving pots for individuals as they approach retirement.

Andy Leggett, Defaqto’s Insight Analyst for Wealth Management, said, “The number of variables involved in planning for retirement ...

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Announcement from the Government on 'improved' offer for NHS pensions

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The government has announced an “improved” NHS pension offer which it hopes will help end part of the public sector dispute. This bid follows last week’s strike which saw over two million public sector workers walk out in protest at revised pension plans.

The government want all public sector workers to contribute more towards their pension schemes, retire later and accept a pension based on a “career average” salary, rather than the current final salary conditions. Under initial plans the government ...

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Over-55s struggle as savings and income levels plummet

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A recent report by Aviva entitled the, “Real Retirement Report” has tracked the income and spending of 11,600 people in or near retirement. The report has uncovered some shocking statistics with average incomes for the over-55s falling by 4% in the past year (now standing at £1285 per month), while savings levels have plunged by more than a quarter. It also states that one in ten over-55s are surviving on less than £500 a month, with single women most likely ...

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reasons to seek financial help

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With the way the economy is, many people are struggling to get their bills paid but are not sure when to go to get some financial help. Some people would rather wait until the last minute and other people want to get some help the day they lost their job. There are several reasons why you would get some financial help from a professional.

One reason you would get some advice may be because you just lost your job and you ...

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Why use a financial adviser?

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A financial adviser may seem a luxury that you can’t afford. Everyone has to watch the pennies at the moment, and paying someone to look after your investments may seem something that you can’t afford to do. However, it is exactly in this sort of financial climate that you need this sort of help.

 

If you have any savings in the bank you will have noticed that for the past few years you aren’t getting much money in interest on them. ...

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Bank of England is expected to resist calls for further emergency support for the economy

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The Bank of England is expected to resist calls for further emergency support for the economy, despite evidence that recovery is grinding to a halt.

Estimations on economic growth have shown a further reduction of 0.1% from October to November and in October a 0.7% reduction in industrial production and manufacturing have fuelled further fears of a double-dip recession.

The Bank of England’s monetary policy committee (MPC) is set to hold interest rates at a record low of 0.5% while its quantitative easing ...

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Treasury announcement made for ISA top up plan

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Investors who have lost savings as a result of a collapse of a financial firm will now be able to refill their annual allowance under new rules.

Under the old rules any savings lost would still be included as part of the individuals annual allowance.

At present time savers can invest £10,680 pounds into a tax-free ISA or Individual savings account but come April 2012 this will increase to £11,280.

Mark Hoban, Financial Secretary to the Treasury, said the changes, “demonstrate the government’s ...

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Why use a Financial Adviser?

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We work hard and one of our main aims in life is to earn more money than we are earning today. We are capable of earning more and we know how we should spend our money. However, we also know that earning money and savings as much as we can is not going to help us at retirement. One day, we would like to stop working and retire. Therefore, if the source of income stops the savings will be used ...

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High Court decides Pension switch is lawful

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The government’s public sector pension’s policy has been given a major lift following a High Court ruling. Complaints had been made by trade unions around how pensions are being protected by inflation with the Consumer Prices Index (CPI), replacing the faster-rising Retail Prices Index (RPI).

Lord Justice Ellis stated, “The use of RPI has in the past been merely current practice. Looked at objectively it could not properly be asserted therefore that any promise of its continued use had to be ...

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