Briefings



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The rise and fall of interest-only mortgages

The rise and fall of interest-only mortgages Issued: 6 July 2016   “Interest-only mortgages were created as a niche, more flexible mortgage product, accounting for 80% of all mortgages sold in 1988.” – but now, twenty-eight years later, “The market for interest-only mortgages has changed drastically and has now come to rest in probably the right place.” writes the FT Adviser. To read the article please click here. For more information about mortgages, please visit www.onefinancialsolutions.co.uk/mortgages. If you’d like advice about a new or existing mortgage, please call us on 020 3714 9565 or ask us to call you by sending an email to admin@onefinancialsolutions.co.uk.  

Six million first-time pension savers

Six million first-time pension savers Issued: 8 July 2016   Auto enrolment has enrolled more than six million workers into a pension scheme since it started in October 2012, reports the Express. It’s a concept that’s fundamentally changed workplace pension schemes, taking membership from being an ‘optional benefit for some’ to a ‘compulsory benefit for many’. The government-backed scheme means that ‘qualifying workers’ are ‘automatically enrolled’ into a ‘qualifying workplace pension scheme’ and have to opt out of it if, for any reason, they’d prefer not to be in one. By making membership of a pension scheme the ‘default’ position, it’s hoped that millions of workers will then stay in the scheme and help themselves to a better retirement with less reliance on the state. Increasing life expectancy has an understandable impact on pensions. If we live longer, our retirement is also going to be longer, and if our retirement […]

Brexit kicks pension tax relief into the long grass…

Brexit kicks pension tax relief into the long grass… Issued: 13 July 2016   Pensions minister Baroness Altmann has said the issue of net pay arrangements versus tax relief at source for earners is “an outrage” and is “high on her list of priorities” for reform, reports the FT Adviser. Ms Altmann expressed her dismay at lower paid earners having a 20% to 25% tax relief penalty as a result of inequity in the system, adding that she hoped to address this, and other long-term issues, when the post-Brexit dust settles. Henry Tapper, founder of auto-enrolment service Pensions PlayPen, said the issue had been “kicked into the long grass by shifting goalposts”. To read the FTAdviser article, please click here. For more information about auto enrolment, please visit www.onefinancialsolutions.co.uk/automatic-enrolment. If you’d like advice about pensions, including auto enrolment, please call us on 020 3714 9565 or ask us to call […]

Increase in pension ‘freedom’ enquiries set to continue

Increase in pension ‘freedom’ enquiries set to continue Issued: 15 July 2016   Eight out of ten financial advisers have seen an increase in new business enquiries as a result of the government’s pension freedoms according to a poll conducted by Investec Wealth & Management. Pension legislation introduced in April 2015 swept away many pension scheme restrictions, giving those aged 55 or over freedom to do what they liked with their defined benefit pension pot. The research reported that transferring pension pots from a defined benefit to a defined contribution pension scheme accounted for 68% of enquiries received, with advisers predicting this trend would continue for a further nine years. To read the FTAdviser article, please click here. If you’d like impartial advice about why you should consider transferring your defined benefit pension pot, please call us on 020 3714 9565 or ask us to call you by sending an […]

Downsizing your home to fund retirement is delusional, says former minister

Downsizing your home to fund retirement is delusional, says former minister Issued: 19 July 2016   ‘Hoping to live off the value of your home could be a downsizing delusion for millions of people.’ said former pension minister Steve Webb, now director of policy for insurance company Royal London, reports the FT. To read the FT article, please click here. New analysis by Royal London warns that workers on average earnings could see their income in later life halved if downsizing forms their main retirement plan. ‘In most of Britain, the amount of money you could free up by trading down at retirement to a smaller property would generate a very modest income.’ said Mr Webb. If you’d like to talk to us about mortgages, equity release, pensions, annuities or retirement planning, please call us on 020 3714 9565 or ask us to call you by sending an email to […]

Only one in five has income protection

Only one in five has income protection Issued: 20 July 2016   Only one in five UK respondents to a global survey has income protection reports Cover magazine – and that despite 42% reporting a loss of income due to serious illness at some time in their working lives. To read the article, please click here. A possible reason for the low level of cover is the apparent lack of understanding surrounding income protection products: only 19% claimed to have a ‘good knowledge’ which suggests more ‘education’ may be needed to allow workers to make informed decisions about the subject. Interestingly, nearly half (47%) of UK respondents said they would be willing to accept a benefits package that included income protection rather than higher wages, pointing towards an opportunity for employers to intervene positively. For information about income protection specifically, and employee benefit schemes generally, please visit www.onefinancialsolutions.co.uk/employee-benefits. If you’d […]

How will the Lifetime ISA work in place of a pension?

How will the Lifetime ISA work in place of a pension? Issued: 22 July 2016   As we wait for draft legislation about Lifetime ISAs, Tony Wickenden considers how they may work as an alternative to pension provision, the unspoken role for which they may have been designed. To read his insightful article in Money Marketing, please click here. Little information about lifetime ISAs has been made public making a robust assessment of their credibility as a viable alternative to pension provision difficult, but it seems they may compare favourably for a basic-rate taxpayer if direct contributions are compared. Although there are a lot of ‘mays’ at the moment, Lifetime ISAs are an important subject and one we all need to start getting to grips with, and sooner rather than later. If you’d like to talk to us about Lifetime ISAs specifically, or ISAs and pensions generally, please call us […]

One-fifth of firms miss auto-enrolment staging dates

One-fifth of firms miss auto-enrolment staging dates Issued: 27 July 2016   Just over one-fifth of small employers are missing their automatic enrolment staging dates, reports Money Marketing, risking a fixed penalty notice followed by a daily fine from The Pensions Regulator. To read the article, please click here. Automatic enrolment, a statutory requirement for every UK employer, no matter what their size, was launched on 1 October 2012 and is being progressively rolled out on a largest-to-smallest employer basis. Every employer, even of a single person, is legally required to assess their employee(s) in terms of their age and what they are paid against set criteria. If the employee qualifies for auto enrolment then their employer has a legal obligation to enroll them into a ‘qualifying workplace pension scheme’. For more information about auto enrolment, please visit our website: www.onefinancialsolutions.co.uk/automatic-enrolment. If you’d like impartial advice about what you should […]

36% of over-55s are still paying mortgages

36% of over-55s are still paying mortgages Issued: 29 July 2016   Around 36% of over-55s are still paying off a mortgage according to a research study carried out by Bower Retirement Services, and advisers are reporting a surge of enquiries from customers with interest-only loans (read the synopsis here). Advisers also report that that they’ve seen an increase in the number of customers who have considered downsizing their property as a possible financial solution but that, of those who did consider the option, nearly a quarter decided not to go ahead with it for one of a number of specific reasons. For more information about mortgages, please visit our website: www.onefinancialsolutions.co.uk/mortgages. If you’d like impartial advice about either your mortgage or retirement options, please call us on 020 3714 9565 or ask us to call you by sending an email to admin@onefinancialsolutions.co.uk.