News

There is still a £100K gender pensions gap.  According to the latest Women and Retirement Report. Notably,  the Report has been tracking savings for two decades and in that time progress has been made.  The gender gap has reduced by 33% since 2008.  However, the gap will take at least another 20 years for women to retire on the same income as men.

Meanwhile, women approaching retirement are scheduled to receive an income of just £12,000 a year on average. This compares to £17,000 on average for men.  As a result, women’s lower retirement income means millions will be well below the £14,400 that industry body the Pensions and Lifetime Savings Association (PLSA) says is needed.  In other words, this income is for a ‘minimum standard of living’ in retirement.  Notably, this level of income would afford someone a week-long UK holiday every year, £50 a week for groceries and up to £630 a year for clothes and shoes. 

In contrast, as many as 42% of women risk facing poverty in retirement, compared with 35% of men.

Also, women are much less likely to be on track for a comfortable lifestyle.  For example, 28% compared with 35% men.   Ultimately, a comfortable retirement costs around £43,100 a year, according to the PLSA, and allows for £70 a week on groceries as well as £100 a month on going out for dinner, a three-year-old small car and a fortnight four-star holiday in the Mediterranean.

There is still a £100K gender pensions gap. Furthermore, couples should consider collectively accumulating retirement savings to help close the gap. For help with your pensions and financial planning, speak with us today.  Call us on 01603-957599 for your free initial consultation.

The continued price of parenthood as parents continue supporting their off-spring well into their 20s and 30s.

Because of limited housing options, the cost-of-living crisis, and minimal employment opportunities.  As a result, adult children are being prevented from leading independent lives.

According to the 2021 Census, approximately 4.9 million adult children reside with their parents.  Hence, this marked a 14.7% increase since the 2011 Census.

Furthermore, government data indicates the average cost of raising a child to 18 is £223,256.  Basically, around £12,400 a year. 

Notably, raising a child until the age of 30, parents may cover significant additional expenses such as:

–        Mortgage contributions:  Estimated additional cost of £50,000 per child. The average house price in the UK in July 2024 was £26,400. Parents often contribute towards a deposit or mortgage premiums to help their children onto the property ladder.

–        Education fees: Estimated additional cost of £30,000 per child. Recent studies show that 71% of parents contribute to their children’s university costs.

    Wedding costs: Estimated additional cost of £10,000 per child (based on parents contributing 50% towards wedding fees). The average cost of a UK wedding has surpassed £20,000 for the first time.

–        Grandchild support: Estimated additional cost of £20,000 per grandchild. Additionally, many parents in their 30s rely on their parents for financial support, especially for childcare costs. 

The financial support provided by parents to their adult children may be impacting their retirement planning too. 

Subsequently, 71% of people aged 35 to 54 are uncertain about avoiding running out of money in retirement.  Similarly, 60% of adults over 50 believe they will struggle once they give up work.

In total, the cost of raising a child to 30 is approximately £333,256. 

This includes £223,256 from birth to 18, plus an estimated additional £110,000 from the age of 18 to 30. 

Meeting these expenses has become a significant challenge for parents during the cost-of-living crisis. 

In particular, 21% of people with investable assets of £100,000 to £500,000 said they can only just afford day-to-day costs.  Also, 31% have reduced or stopped their pension contributions.

The continued price of parenthood.  For help with your family’s financial planning, speak with us today.  Call us on 01603-957599 for your free initial consultation.

Research based on Wealth and Wellbeing Report from LV=,

An essential part of protecting your assets for those you love is making your Will. Here are 10 reasons for Writing your Will.

1. Name the Guardians for your children

You can specify who should look after your dependents in the event of your death. Furthermore, you can appoint a Legal Guardian for anyone under 18 years of age. If you haven’t legally documented your wishes, the decision could e left to the Family Courts to appoint a Guardian. Importantly, even if you have named friends or family members to be your children’s godparents, this isn’t legally binding.

2. Wills for new Parents

New parents should ensure their children are provided for financially in the event of their own deaths. For example, this could include putting aside money for their education. Also, finance for hobbies or establishing a nest egg to buy a home.

3. Providing for your dependents, including step-children

The law states that only spouses, civil partners or blood relatives can automatically inherit if there is not a Will. Your step-children may be a big part of your life or even be your only children. But if you want to provide for them, you will need to write a Will. Notably, the same goes for foster children. Also, any other dependents who may rely on you for support.

4. Need to protect your unmarried partner

An unmarried partner is not entitled to inherit anything from your Estate. Regardless of how long you may have been together. Basically, without a Will, your Estate could pass to your young adult children who could choose to remove your partner from the property and sell it. By writing a Will, you can ensure your partner will receive their fair share of your Estate. Also you can stipulate the right for them to occupy the property for life, even if you bequeath the house to your children.

5. Safeguard your family home

If the family home is in your name, your unmarried partner and step-children are not automatically in line to inherit it. Accordingly, this could result in them potentially losing their home. Furthermore, you can leave them a share of the property in your Will or a right to reside in the property.

6. Mitigate the risk of family disputes

Regrettably, not every family has a harmonious relationship and we sometimes hear of squabbles if there is no Will. Moreover, contested Wills can be damaging to relationships among your family. As well as expensive to resolve if decisions about your Estate are legally contested.

7. Minimise your Estate’s Inheritance Tax liability

The amount of Inheritance Tax charged will depend on how much you have and who you leave it to. Ultimately, anything left to your spouse or civil partner will be automatically exempt from Inheritance Tax. Furthermore, leaving property to your children and grand-children is also likely to generate a lower Inheritance Tax bill.

8. Create a legal Will if you’ve recently married

When you marry, any existing Wil you may have will automatically become invalid in England and Wales. Subsequently, your Estate could end up spit between your new partner and children from a previous marriage. Unfortunately, getting divorced doesn’t override your Will. As a result, your ex-partner may still inherit from your Estate. Therefore, regularly having your Will reviewed to ensure it still reflects your situation and wishes is a good idea.

9. Put the people you trust in charge of your affairs

You can stipulate who you would like to settle your affairs when you have passed away. For example you will nominate named Executors to be in charge of carrying out your final wishes. Also, choosing your Executors allows you to select the people you must trust and for them to understand their role.

10. Taking care of your pets

Ultimately, people worry about what will happen to their much-loved pets if they were to die. Accordingly, you can state in your Will who you wish to look after them and make an allowance to ensure their care and upkeep.

For help in writing your Will, or amending your current Will, call us today. We can help 01603-957599.

We are proud members of the Society of Will Writers.

5 Reasons to set up a Lasting Power of Attorney (LPA). There are two types of Lasting Power of Attorney :-

• Property and Financial Affairs, and
• Health and Welfare

5 Reasons to set up an LPA

1. Peace of Mind: With a Lasting Power of Attorney (LPA) in place you are assured that your affairs will be taken care of by someone you trust. Particularly, if you are unable to make decisions for yourself.
2. You can control who makes the decisions: By setting up an LPA, you can choose who will make decisions if you are unable to do so. You can also provide instructions for your Attorney and any preferences you would wish to be taken account of.
3. Costly legal proceedings are avoided: What would happen if you become mentally incapacitated and you do not have an LPA in place? Critically, your loved ones may have to go through a costly and time-consuming court process to appoint someone to make decisions on your behalf. Notably, there are also annual supervision costs charged by the Court of Protection. So an LPA is significantly cheaper than a Deputyship. It costs £82 to register an LPA, whereas the court fee alone for making a single Deputyship application is £385. Additionally, once a Deputy is appointed, there are annual supervision fess of circa £325.

2 more Reasons to Set up a Lasting Power of Attorney (LPA)

4. Protecting your Assets: Furthermore, with an LPA in place, your Attorney can make decisions about your finances. Chiefly helping to manage and protect your assets. For example, many people now use some form of drawdown arrangement to take their pension. This can require decisions for both the withdrawals and the underlying investments. Besides, this won’t be possible if you have lost capacity and don’t have an Attorney in place. Attorneys are expected to keep proper records (accounts, receipts, invoices etc). So you might want to bear this in mind, when selecting your Attorney.

5. LPAs are Flexible: Finally, your circumstances and needs may change. For instance, if one of your Attorneys were to pass away or become ill, you may need another person to take this role. However, you can update your LPA whenever you need to. So you can be sure that the document is always relevant and effective.

5 Reasons to set up a Lasting Power of Attorney (LPA). To see how we can help, contact us today on 01603-957599.

HNW (High-Net-Worth) individuals reviewing their wealth planning. New research from Rathbones reveals almost half of HNW (45%) have reviewed their wealth planning in the past year. When asked the changes they had made, 12% said they had brought forward gifting plans. Whilst a further 16% said they had altered the essence of their planned financial gifts.

Consequently, this implies taxpayers are worried about being hit by changes to IHT (Inheritance Tax). However, Labour has not currently announced their plans to hike IHT rates or reduce the nil-rate band.

Should you review your Financial Plan?

Furthermore, 25% said they had reviewed their financial plans due to interest rates staying high. Another 17% reported changing their investment strategy in the past 12 months. Cuts to interest rates are expected during the remainder of 2024. This could mean it is a good time to lock into higher saving rates.

What about Inheritance Tax?

Besides, issues like inheritance tax might sound like they only impact the rich. But if a single parent leaves their estate to their children, the recipients could be forced to pay inheritance tax as soon as the value of the estate exceeds £500,000.

Similarly, an unmarried person who chooses to leave their estate to someone rather than a child or grandchild (or other direct descendants) won’t qualify for the Residence Nil-Rate Band (RNRB). This means they can only pass on £325,000 tax free.

Finally, with the UK tax burden at a record high, anyone who is saving or investing for the future should be thinking about how they can do this in the most tax-efficient way possible.

Two of the simplest steps you can take include:

• Using your annual ISA allowance
• And, paying into your pension

HNW individuals reviewing their wealth planning. To understand how we can help you with your financial planning and long-term retirement goals, call us today. For a free initial consultation, call us on 01603-957599.