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Consolidating your pensions - is it a good idea?

Thu, 28 Aug 2025 08:37:58 GMT

What should you consider?

Consolidating your pensions – is it a good idea?

Jenny is a 47-year-old Account Manager with a long and varied CV.

She hasn’t quite had more jobs than hot dinners but, when she thinks about the various pensions she’s acquired over the years, sometimes it feels that way.

Jenny has recently been considering consolidating pensions. But is combining her pensions necessarily the best way forward?

There are several potential advantages of consolidating your pensions.

Easier to manage - One of the main advantages Jenny might gain by combining her pensions is it should be easier for her to manage her retirement pot and reduce her chances of losing track of any savings.

In October 2024, data published by the Pensions Policy Institute revealed that almost 3.3 million UK pension pots worth £31.1billion were no longer matched to their owners, putting these savers in danger of missing out on significant sums of cash.

Lost pensions are worth an average of £9,470 each and often become unmatched from owners who fail to tell providers when they move home. If you’ve lost track of a pension, the government’s pension tracing service may help you find it.

Lower costs - By combining her various pensions, it’s also possible Jenny will be able to reduce the fees she pays.

She’s currently paying separately for the administration of each of her pensions. This isn’t very cost effective and makes it difficult for Jenny to keep track of what she’s paying in total.

Better returns - If Jenny’s various pensions aren’t working hard to grow her savings, consolidation may be a good option.

By switching to a provider that offers more investment options than those available through some older schemes, she may be able to make her money work harder and potentially increase the size of her pension pot.

Increased flexibility - Schemes set up before pension freedoms were introduced in 2015 may not be as flexible as newer schemes.

By combining her pensions, Jenny might benefit from greater freedom in how she’s able to access her money.

Income drawdown came into effect in 2015. This makes it possible for people to withdraw money from their pensions from the age of 55 * . Older pensions may not offer this option.

Before consolidating pensions, there are some important considerations

Do existing pensions come with valuable benefits? Jenny might be better leaving a pension where it is, if transferring money out would mean she’d end up sacrificing valuable benefits.

Benefits she might not want to give up include:

· a guaranteed annuity rate

· the ability to withdraw more than the standard 25% tax-free cash sum allowed under drawdown

· being able to take a pension earlier than 55

· life insurance or critical illness cover

Are any of the existing pensions final salary pensions? Final salary pension schemes offer a guaranteed income for life, inflation protection and they may pay out to a surviving spouse if Jenny dies after reaching the scheme’s pension age.

Often, it makes sense to leave final salary pensions where they are.

Are there exit fees? If any of Jenny’s current providers charge significant exit fees, she’ll need to make sure those costs don’t outweigh any potential gains.

As she won’t be needing her pension for over ten years, it may be cost effective to switch despite hefty exit fees. However, if she was closer to retirement, there may not be enough time for any gains she might make through higher returns to outweigh the exit-fee costs.

How are her current pension schemes performing? If Jenny’s current pension schemes are generating strong returns, it might not be worth moving them for the sake of a little less admin.

She shouldn’t assume that moving her money will result in a bigger pension pot.

The importance of expert advice

Deciding whether to consolidate pensions isn’t always straightforward. Jenny may well benefit by getting help from a qualified financial adviser. A professional will make sure she doesn’t inadvertently lose access to valuable benefits or reduce the potential returns of her investments.

* Please note, from 2028, this will change to age 57.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Past performance is not a reliable indicator of future performance and should not be relied upon.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Key takeaways:

- Whether it’s a good idea to consolidate your pensions will depend on your personal situation and pension schemes.

- Combining pensions can make them easier to manage and reduce costs, as well as offering the potential for increased returns and more flexibility.

- It’s possible you may sacrifice valuable benefits by consolidating your pensions.

- Final salary pensions are usually best left where they are.

- Hefty exit fees may mean it’s not cost effective to move your money.

- If your current pensions are already generating strong returns, it may not be advisable to consolidate.

- Getting professional advice could prevent you making a costly mistake.

Approved by The Openwork Partnership on 21/01/2025

Exp: 20/01/2026

December 2024 Newsletter

0011882555 (Russell Hathaway) — Sat, 04 Jan 2025 16:17:43 GMT

Viewpoint

In this Issue…

Autumn Budget 2024: Winners and Losers

Three ways to teach children the value of money

Reasons to consolidate your pensions

The Value Of Mortgage Advice From A Financial Adviser

Investment or Savings?

How to move into the decumulation phase

Here's how financial protection can offer security for parents

Please Click here to download newsletter

Key Dates for your Finances in 2024

Fri, 23 Feb 2024 12:01:29 GMT

Dates for your diary

Key dates for your finances in 2024

As we say goodbye to 2023 and welcome 2024, now’s the perfect time to make sure you’re fully prepared for the financial year ahead. To make it easy, we’ve summarised the key financial dates to put in your diaries:

January

1st – New Energy Price Cap – The new energy price cap for the next 3 months.
6th – National Insurance Tax Cut - The 12% NI rate will fall by 2 percentage points to 10% from 6 January, 2024.
31st – Self-Assessment Tax Deadline – You need to pay and submit your self-assessment tax return for the tax year ending 5th April 2023.

February

1st – First MPC Meeting of the year – The first interest rate announcement of the year for the Monetary Policy Committee to decide whether interest rates should be altered.

March

Spring Budget - An update on the overall health of the economy and progress made since the Autumn Statement on 22nd November 2023.
5th – Rail Fares Rise – The Government are freezing all rail fares for January and February, meaning they are due to rise in March 2024.
21st – MPC Meeting – The second Bank of England Base Rate announcement of the year.
23rd – Temporary Cut to Fuel Duty ends – The 5p fuel duty cut was announced in March 2022, then extended another 12 months in early 2023, it is due to end on 25th March 2024.

April

15 hours free childcare for two-year-olds – The Government’s policy of 15 hours free childcare for working parents of two year olds comes into effect.
1st - New Energy Price Cap – The energy price cap for the second quarter of the year will come into effect.
1st - National living wage and minimum wage rise take affect – The hourly rate for people aged 21 and over will go from £10.42 to £11.44. Those aged 18 to 20 will see a £1.11 rise.
1st - Changes to household bills – Changes to a range of household bills will take place from the start of April.
5th - End of the 2023/24 tax year – Ensure you have used all your allowances.
6th - Start of the 2024/25 tax year
6th - Pension rises – State Pension is expected to rise to 8.5%.
6th - New tax changes

- Lifetime allowance will be axed in April.

- Minimum age to open an ISA will rise to 18.

- Tax-free allowance for dividend income will be reduced from £1,000 to £500.

- Threshold for paying capital gains tax will be reduced from £6,000 to £3,000.

- IHT threshold will remain frozen until 2027/2028.

- Tax-free personal allowance will remain frozen at £12,570.

May

9th – MPC Meeting – The next Bank of England Base Rate announcement.

June

Bank notes featuring King Charles are expected to circulate.
20th – MPC Meeting - The next Bank of England Base Rate announcement.

July

1st – New Energy Price Cap – The new energy price cap for the third quarter will come into effect.
31st - Deadline for second payment on account for 2023/24 for those that pay self-assessed income tax.

August

5th – MPC Meeting – The next Bank of England Base Rate announcement.
14th - July Inflation released – The inflation figure for July is important as it is traditionally used to set the increase in rail fares, which takes place the following year.

September

15 hours free childcare from nine months – Second stage of the Government’s roll out of free childcare from the age of nine months.
19th – MPC Meeting – The next Bank of England Base Rate announcement.

October

1st – New Energy Price Cap – The new energy price cap for the fourth quarter comes into effect.
5th – Deadline to register for self-assessment – If you’re new to self-assessment this is the deadline to register with HMRC.
16th – September inflation released – The inflation figure for September is important as it is used when calculating changes to benefits, the state pension and tax credits.
31st – Paper income self-assessment deadline – Your 2023/24 returns to be with HMRC.

November

Potential Autumn Statement.
7th – MPC Meeting – The penultimate Bank of England Base Rate announcement of the year.

December

17th – Last possible day to call a general election.
19th – Final MPC Meeting of the year – The final Bank of England Base Rate announcement of the year.

Your financial plan could be impacted by these key dates. Talk to us for advice on unused allowances, additional rate tax and dividends.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

For specialist tax advice, please refer to an accountant or tax specialist.

Approved by The Openwork Partnership on 09/01/2024

The 2023 Autumn Statement

Sat, 25 Nov 2023 12:03:15 GMT

Key Highlights

Here are some of the key highlihgt picked out from the 2023 Autumn Statement.

Reducing debt

• The government is reducing debt and borrowing, with borrowing forecast to be lower this year, next year, and on average over the forecast period compared to the OBR's March forecast.

• Underlying debt is also lower as a percentage of GDP, by an average of 2.1 percentage points across the forecast.

• The government is on track to meet its debt and borrowing fiscal rules with greater headroom against both rules compared to spring.

• The government has made available up to £14.1 billion for the NHS and adult social care and an additional £2 billion for schools in both 2023-24 and 2024-25.

• Total departmental spending will be £85 billion higher in real terms by 2028-29 than at the start of this Parliament (2019-20).

• Households on the lowest incomes have benefited the most from government decisions on tax, welfare, and public spending since Autumn Statement 2022.

• The government is introducing the largest package of measures to tackle tax non-compliance since 2016, which is forecast to raise an additional £5 billion of tax revenue over the next five years.

• The government is continuing to drive forward the Public Sector Productivity Programme to reimagine the way public services are delivered.

Cutting tax and rewarding hard work

Tax Cuts for Workers

• The main rate of Class 1 NICs will be cut from 12% to 10% from 6 January 2024, benefiting over 29 million workers.

• The average worker will receive a tax cut of over £450 in 2024-25.

• Class 4 NICs for self-employed will be reduced from 9% to 8%, and Class 2 NICs will be abolished.

National Living Wage Increase

• The National Living Wage will increase by 9.8% to £11.44 from 1 April 2024.

• The age threshold will be lowered from 23 to 21 years old.

• This will benefit over 2.7 million low-paid workers.

Welfare Reform

• The government is launching a Back to Work Plan, with over £2.5 billion in funding, to help people find and stay in work.

• The Fit Note process will be reformed to support returning to work after illness.

• The Universal Support programme will be expanded to match people with disabilities to jobs.

• The Work Capability Assessment will be reformed to provide better support.

• Additional Jobcentre Support will be expanded.

Changes to the benefit system

• All working-age benefits will be uprated by 6.7% in line with inflation for 2024-25.

• Pensioner incomes will be protected by maintaining the Triple Lock.

Support for High Cost of Living

• Local Housing Allowance rates will be raised to the 30th percentile of local market rents.

• This will benefit 1.6 million low-income households.

• The government has provided £104 billion in support to households to help with the cost of living.

Backing British business

The government is taking action to boost business investment and drive long-term economic growth.

Key measures include:

• Making full expensing of plant and machinery investment permanent, worth over £10 billion a year.

• Simplifying and improving R&D tax reliefs, worth £280 million a year.

• Removing barriers to investment in critical infrastructure.

• Providing £4.3 billion of business rates support over the next five years.

• Reforming the pensions market to unlock investment into high growth sectors.

• Announcing further targeted support for digital technology, green industries, life sciences, advanced manufacturing, and creative industries.

• Investing £4.5 billion to unlock investment in strategic manufacturing sectors.

• Confirming the next set of investment zones in Greater Manchester, the West Midlands, and the East Midlands.

• Doubling the flexible funding envelope for each investment zone from £80 million to £160 million.

• These measures are expected to raise business investment by around £20 billion per year in a decade's time.

Changes to ISAs

The government is making changes to simplify ISAs and provide more choice, meaning it will be easier for people to choose the best ISA accounts for their needs and move money between them. This involves digitalising the ISA reporting system to make it more effective, as well as expanding the investment opportunities available in ISAs to include Long-Term Asset Funds and open-ended property funds with extended notice periods.

Key highlights:

• Allowing multiple ISA subscriptions – The government will allow multiple subscriptions to ISAs of the same type every year from April 2024.

• Allowing partial transfers between providers – The government will allow partial transfers of ISA funds in-year between providers from April 2024.

• Removing the requirement to reapply for an existing ISA annually – The government will remove the requirement to reapply for an existing dormant ISA from April 2024.

• Expanding the Innovative Finance ISA to include Long-Term Asset Funds – The government will allow Long-Term Asset Funds to be permitted investments in the Innovative Finance ISA from April 2024.

• Expanding the Innovative Finance ISA to include open-ended property funds with extended notice periods – The government will allow open-ended property funds with extended notice periods to be permitted investments in the Innovative Finance ISA from April 2024.

• Allowing certain fractional shares contracts as a permitted investment The government intends to permit certain fractional shares contracts as eligible ISA investments and will engage with stakeholders on implementation.

• Digitalise the ISA reporting system – The government is announcing the digitalisation of the ISA reporting system to enable the development of digital tools to support investors.

• Harmonise ISAs to those over 18 years of age – The government will harmonise the account opening age for any adult ISAs to 18 from April 2024.

• The government is freezing the Individual Savings Account (£20,000), Junior Individual Savings Account (£9,000) Lifetime Individual Savings Account (£4,000 excluding government bonus) and Child Trust Fund (£9,000) limits at their current levels for 2024-25.

Wealth Decumulation

Fri, 31 Mar 2023 12:51:56 GMT

Why a plan is crucial when you start to spend your wealth

Making your retirement savings last a lifetime

To help ensure a sustainable income, you first need to understand how much you’ll need to live on.

On the go – during the early stages of retirement, there’s a strong likelihood that you’ll spend more on travel, hobbies, or home improvements
Slowing down – while you may be slightly less active, you’re still busy with hobbies, but you may be less inclined to long-haul travel
Coming to a stop – in later life, your mobility may be more limited, and you may require care.

Structuring a sustainable income

The most efficient retirement income strategy should be planned well in advance and ensure that:

Allowances and exemptions are used to their full capacity
Married couples plan together so income and assets are allocated effectively.

Regarding capital withdrawals, you may want to consider decumulating using cash first, followed by taxable investments, ISAs, and finally pensions.

Tax efficiency is key

While tax-efficient accumulation helps enhance your wealth for the retirement you desire, tax-efficient decumulation helps preserve your capital and increases the chance of having money to leave to your loved ones.

So, maximise all your tax allowances including:

Income Tax allowances
The Dividend allowance
5% return of capital allowance from investment bonds
Personal savings allowance
ISA allowance
Capital Gains Tax allowance

By planning together, couples can use these allowances to maximise the amount of tax-free income available.

Consider spending excess cash first

Ideally, you should hold an emergency fund to cover around six months of regular expenditure. If you have more cash available, consider using this before withdrawing from pensions investments. Using excess cash allows you to leave funds invested, which may provide enough time for funds to recover any lost value.

Think twice before drawing on your pension

While you may consider your pension as the foundation of your retirement plan, if you have other income that uses your tax allowances,

it may be prudent to defer drawing on your pension.

Since pension funds benefit from tax-free growth, interest, and dividends, leaving your pension invested is especially useful for maintaining capital value. Plus, pension funds are usually not subject to IHT. So, leaving your pension fund intact while drawing on other investments may help to reduce your IHT liability.

Enjoy flexibility from ISA savings

ISAs are considerably more flexible than pensions. Growth, interest, and dividends are all free of tax and you can withdraw money tax-free without restriction. As for IHT, ISAs can be passed between spouses on death, which preserves the tax-efficient treatment.

Useful in reducing tax in retirement, you can use your ISA to:

Fund large, one-off purchases
Top up your income – especially useful if your pension exceeds your tax-free allowance
Make your portfolio more efficient over time, by gradually moving taxable funds across.

Take a savvy approach to investment accounts

A basic and flexible wrapper, investment accounts can hold funds, shares and investment trusts. Interest and dividends are taxable at your marginal rate and selling assets can incur Capital Gains Tax (CGT) if your profit exceeds your annual exemption (In the 2023/24 tax year, the CGT exempt amount will fall to just £6,000, or £12,000 for a couple).

The following strategies can help reduce tax:

Phase your taxable investment accounts into ISAs
Use your annual CGT exemption to avoid large gains rolling up
Structure your investments depending on the type of income they generate

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Past performance is not a guide to future performance and should not be relied upon. An ISA is a medium- to long-term investment, which aims to increase the value of the money you invest for growth or income or both.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Get in touch if you’d like help to create a financial plan to structure a tax-efficient income in retirement, we can help.

Autumn Statement Report 2022

0011882555 (Russell Hathaway) — Wed, 30 Nov 2022 09:53:01 GMT

A summary of the chancellor's changes

Please download a summary document here by clicking this link

The main income tax allowances and thresholds, the main national insurance thresholds, plus the inheritance tax nil rate bands will stay at their current levels for an extra two years to April 2028.

The threshold for the 45% additional rate of income tax will reduce from £150,000 to £125,140 from April 2023.
The dividend allowance will reduce from £2,000 to £1,000 from April 2023 and be halved again to £500 from April 2024. The capital gains tax annual exempt amount will be cut from £12,300 to £6,000 for 2023/24 and halved to £3,000 from April 2024.
The government’s energy price guarantee will be adjusted from April 2023 so that the typical household will pay £3,000 a year.
The state pension, pension credit, universal credit (UC), the benefit cap and certain other benefits will increase by 10.1% in line with CPI inflation to September 2022.
Business rates bills in England will be updated from April 2023 to reflect April 2021 property values and there will be a £13.6 billion package of targeted support for businesses over the next five years.
Research and development tax reliefs will be reformed with respect to expenditure incurred from 1 April 2023.
The windfall profits of oil and gas companies will be subject to further tax increases and a new levy will apply to the ‘extraordinary returns’ of low carbon electricity generators.

Please download a summary document here by clicking this link

NI Money Newsletter

Thu, 23 Jun 2022 11:54:44 GMT

Summer 2022

Read our latest newsletter

Our regular newsletter is available on our website to download. It is packed with articles, ideas and information to help you improve your financial well-being.

To download your free copy, click the button below.

If you would like to discuss any other the articles further, please get in touch with us.

Download here

How might rising interest rates affect you?

0011882555 (Russell Hathaway) — Thu, 23 Jun 2022 11:08:56 GMT

The BoE has raised interest rates meaning bigger mortgage bills for some homeowners.

How might rising interest rates affect your mortgage?

The Bank of England has raised interest rates which means bigger mortgage bills for some homeowners.

Since December 2021 the Bank of England raised interest rates from 0.1% to 1.25% to combat soaring inflation.

This move will have a knock-on effect as mortgage lenders raise interest rates in response, which will increase monthly payments for some borrowers.

What does a rise in interest rates mean for your mortgage?

Anyone without a fixed-rate mortgage is likely to see their borrowing costs rise, although how they are affected will depend on the type of product they have. Your adviser can help you assess your mortgage deal and figure out ways to make some much needed savings.

• Only borrowers with a mortgage that moves up or down with the base rate will be affected by the interest rate change.

• This includes tracker mortgages and standard variable rate mortgages (which you revert to when a mortgage deal ends).

Fixed-rate mortgages

Most mortgage holders are on fixed-rate deals so won’t see any change in their monthly payments. This is because the interest rate you pay stays the same for the length of the mortgage deal.

Standard variable rate mortgages

You will usually be moved on to a standard variable rate when your existing tracker or fixed rate mortgage deal ends. For example, if you take out a two-year fixed deal and you don’t remortgage, you will be moved to the lender’s standard variable rate. The rate is likely to be considerably higher than what you were paying before, so your monthly payments will increase, and lenders can raise the standard variable rate whenever they want.

Tracker mortgages

Homeowners with a tracker mortgage will find that their interest rate payments will now go up, but when this happens will depend on their lender. Tracker mortgages are a type of variable rate mortgage that follow the Bank of England’s interest rate. So, when official interest rates go up, the rate on your tracker will rise as well.

As a rule, they do not exactly match the base rate, but are set a level just above it. For example, if the lender’s rate is the base rate +1%, the interest you’d pay in total on your loan would be 1.5%.

Whatever type of mortgage you have, we can advise you about how the interest rate rise might affect you and address any questions or concerns you have.

How to save on your mortgage costs

The best thing you can do is to speak to your financial adviser. For example, if you’re on a tracker mortgage, they will be able to advise whether changing to a fixed-term deal to protect yourself from any further rises is a good idea. They will also let you know about the fees involved when making changes to your mortgage. If you are on a standard variable rate you can switch at any time, so with interest rates rising, your adviser can help you look at available fixed-rate deals.

Homeowners on fixed deals don’t have to worry about their mortgage going up until their current term ends. Most lenders will let you lock into a new deal six months before the current one ends so it’s a good idea to plan.

Whether you’re looking to remortgage or are a first-time buyer, we can help you find the most suitable deal for your circumstances and help keep your costs down.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

Key takeaways

Mortgage borrowing costs are increasing after the Bank of England raised interest rates to 1.25% to combat soaring inflation.
If your fixed deal is ending in the next six months you could think about switching to a new one now before interest rates go up further.
If you’re on a tracker mortgage or a standard variable rate, taking out a fixed-rate deal can protect you from any further rate rises.

What does a Financial Adviser do?

0011882555 (Russell Hathaway) — Fri, 18 Mar 2022 08:55:34 GMT

It’s probably more than you think. Find out how they could help you here.

A financial adviser can help with your investment goals, but they can also offer many more ways to understand and make the most of your money.

You might think that people who use financial advisers are just investing in the stock market or need someone to manage their portfolios. But a financial adviser can do a whole lot more.

Different types of financial advice

For an adviser, it’s their aim to help you achieve your financial goals, but that doesn’t just cover building wealth through investment – their expertise can apply to everything from mortgages to life insurance, pensions, saving for retirement or handling an inheritance. Advisers can vary in what they specialise in, and fall under a large umbrella of services including:

Pensions
You may have several workplace pensions that you’d like to consolidate, or you could have questions about drawing an income from your pension. Whatever your circumstances, a financial adviser can examine the details within your pensions to guide you on how to approach them, considering how much you will need to live comfortably when you retire.

Tax
You might think that there is little difference between Another area where expert help is needed is tax. From inheritance tax to capital gains tax or working out how much you should be paying (and if there are ways to minimise your tax bill) – is tricky. With the help from an adviser, you can become more tax-efficient and make the most of any tax breaks available to you. An adviser is best placed to help minimise your tax bills and get you the best returns.

Inheritance
An adviser can help you with leaving a legacy – an important part of planning the future of your estate and making sure your wishes are carried out when the time comes, and your wealth is passed tax efficiently. This advice could range from inheritance tax mitigation to making or updating your will.

Mortgages
Mortgages can be a tricky area, whether you’re a first-time buyer, searching for the best remortgage deal or looking for an investment property. A financial adviser can help you navigate the process, find the right type of mortgage and map out how your mortgage will work over the years (and when it could be a good time to review your mortgage). They’ll also be able to let you know your tax obligations if your property is an investment.

Investment
A financial adviser can help you navigate the world of investing safely, helping you take your first steps in investing or reviewing and managing your existing investments, as well as making you aware of any risks along the way and making sure you keep focused on the long-term goals through any market highs and lows. Our advisers have a broad breadth of experience and take an objective approach – offering ongoing advice and expertise – both of which are crucial to seeing your investment and retirement objectives come to fruit.

Our financial advisers are here to help you make sense of your finances, build, and manage your wealth and protect what you have going forward – to the benefit of you and your family.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE

NI Money - Spring Newsletter

0011882555 (Russell Hathaway) — Thu, 15 Apr 2021 11:29:57 GMT

Our regular newsletter is available on our website to download. It is packed with articles, ideas and information to help you improve your financial well-being.

To download your free copy, click here

Articles

- The value of advice

- Cohabiting couples should make a Will

- Why it makes sense to spread your investments

- How has COVID-19 affected your retirement?

- Home improvements to add value to your home

- Want to avoid retirement remorse

- Now could be a good time to remortgage

To download your free copy, click here

Getting Mortgage Ready

0011882555 (Russell Hathaway) — Fri, 30 Oct 2020 08:33:12 GMT

Buying a home takes careful preparation and planning. As well as finding a property you like, you need to get your finances in good order before lenders review them and assess your ability to make repayments on your loan.

Save up

During the recent lockdown, many lenders pulled their ‘high loan-to-value (LTV)’ products which typically only require a deposit of 5% or 10% (often first-time buyers) to take out a mortgage. The good news is that lenders are returning to the high LTV market, but you may need to act quickly to secure the deals. This is where we can help as we have our finger on the pulse.

Save as much as you can towards a deposit. Open a dedicated savings or investment account and make sure it’s paying a competitive interest rate.

Check your credit score

Even if you’re remortgaging or moving up the housing ladder your credit history will be important. A good credit rating can help you secure a better mortgage deal, with a lower interest rate.

The general rule is the higher the score the better, and the more likely you’ll be accepted for a mortgage or other credit. If you’re looking to take out a mortgage or remortgage, check your credit score regularly. You can usually get a simple overview for free and it pays to check with several different sources. Credit Karma, Equifax, clear Score and Experian all offer a service to help you understand your rating.

If you find it is lower than expected there are ways to improve it:

Pay more than your minimum payments on credit cards

Bring your overdraft down

Close unused credit accounts

Budgeting

It’s important to review your income and outgoings. If you have accounts, memberships or subscriptions that you no longer use, it makes sense to close them down.

Prospective lenders will also look at the debt you currently have, including whether your current account is in credit. If you have any savings, it makes sense to pay off loans and credit cards but be sure to leave yourself enough saved to cover emergencies.

Support from families

Research carried out suggests the bank of Mum and Dad or even the bank of Gran and Grandad will help to buy 175,000 homes during 2020 by lending or giving you cash to help with a deposit or acting as a guarantor.

Get some good advice

As qualified and professional mortgage advisers we know what a good deal looks like, we know the market and we’ll do the hard work for you

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

NI Money Newsletter

Wed, 24 Jun 2020 10:51:50 GMT

Summer 2020

Our latest newsletter is packed with articles, ideas and information to help you improve your financial well being. Please browse the contents below and click on the link below and at the bottom to read our newsletter in full.

Download our Summer Newsletter here

Financial Advice

Don't underestimate the power of financial advice to you

Take Control of your Investments

How our technology can benefit you

Pension Choices

There is no 'one size fits all' for your pension savings

Changing Workplace

How changing work patterns affect your retirement planning

Crowdfunding

Don't rely on crowdfunding to support your healthcare needs

Financial Protection plans

Look beyond the price of your life assurance and critical illness premiums

Why you should get Mortgage Advice

Getting a mortgage is one of the biggest financial decisions you'll ever make. Get it right!

Download our Summer Newsletter here

Market Fluctuations

Sat, 21 Mar 2020 12:54:13 GMT

Coming to terms with market turbulence

Over recent years many investors have become used to a variety of political, financial and economic factors impacting markets, from the Brexit Referendum and subsequent prolonged uncertainty, to the global financial crisis and even further back to the dotcom bust in the early noughties. Although markets do not respond well to periods of uncertainty, fluctuations go hand in hand with stock market investment; and while market movements can be concerning, experience has taught us to expect the unexpected.

It is important to remember that some market turbulence is inevitable; markets will always move up and down. As an investor, putting any short-term fluctuations into historical context is useful. Investors with diversified portfolios, who stay in the market, have typically been rewarded over time.

Plan and focus, be strategic

Instead of being too worried by turbulence, the best strategy is to be prepared. It is best to stick to your well-defined plan and diversify your holdings, as well as expecting and accepting market movements. Your plan will be tailored to your objectives, in line with your attitude to risk and will take into account your financial situation, which will stand you in good stead to weather short-term market fluctuations.

In it for the long haul

Even though it can be difficult to ignore daily market movements, it is vital to focus on the long term, and remember that turbulence also presents investment opportunities. Investment requires a disciplined approach and a degree of holding your nerve if markets descend. Investment professionals know that markets can fluctuate and will inevitably go down as well as up from time to time. The worst investment strategy you can adopt is to jump in and out of the stock market, panic when prices fall and sell investments at the bottom of the market.

Keep calm and carry on

As Rudyard Kipling wrote, it is important to “keep your head when all about you are losing theirs” – a clear head will certainly stand you in good stead through these challenging times.

Market turbulence is a timely reminder to keep your investments under regular review – that is what we do best. Please rest assured we closely monitor fluctuations, so your money has the best chance of growing for the future.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

Providing a retirement windfall for your child

0011882555 (Russell Hathaway) — Tue, 25 Feb 2020 10:04:49 GMT

Taking a closer look at children’s pensions

Providing a retirement windfall for your child

Planning ahead and starting early can really help when it comes to building up a financial future for the children in your life. The Junior ISA (JISA) is a popular choice for many, but one often overlooked investment option is the ability to open a pension for your child, to help set them up for retirement.

Increasingly popular choice

Although retirement is a very long way off for your child, putting some money aside now means they can be one step ahead when they come to plan their retirement. Any parent or legal guardian can set up a pension, which will automatically transfer to your child once they reach the age of 18, at which time they can continue to contribute or leave the savings invested. Under current rules (which may be subject to change in the future) they can access the pension from age 55.

A valid option, worth considering

In addition to your own pension contribution allowances, people often don’t realise that they can also put money into someone else’s savings. If the recipient is a non-taxpayer, as most children are, they are still entitled to tax relief on any contributions made. Pension rules allow anyone to pay contributions on behalf of a child, so other family members such as grandparents can get in on the act too.

HMRC data indicates over 60,000 families have opened pension plans for their children. As personal pensions come with no minimum age restriction, many people opt to open one when their child is born.

Know the numbers

Current pension rules allow you to put up to £2,880 a tax year into a pension for a child. Tax relief of 20% means that this is then topped up to £3,600. No further Income Tax or Capital Gains Tax will be payable on the investments held in the personal pension, until your child starts taking benefits, (which currently cannot be before age 55). If you start pension contributions once a child is born and used the full allowance, the contributions would cost just under £52,000 over 18 years, and this, under current rules would be topped up by around £13,000 in tax relief.

Assuming growth in investments over the period, when the child reaches age 55 currently, they would have a sizable pension pot to draw upon, the spending power of which will of course depend on the passage of inflation over the intervening years.

Getting the balance right

Aside from retirement provision, you also need to consider providing financial assistance for more pressing priorities, such as university fees or money for a house deposit, or a wedding perhaps. Any pension savings won’t be available to help children with these financial priorities earlier in their adult lives. So, ideally a pension for your child should be regarded as part of a wider plan, rather than the only investment embarked upon.

Start a pension for your child today

With the full State Pension currently £168.60 a week, this is certainly not enough on its own to provide a comfortable retirement, so why not set the wheels in motion to provide a retirement windfall for your child? It’s also a great way to introduce your child to the concept of long-term saving. Families thinking about how to save and invest most efficiently during 2020 shouldn’t overlook pensions for children. Even if the full allowance isn’t contributed, any money saved could still provide a valuable nest egg at retirement.

If you would like to know more about investing for children, please get in touch.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Time in the market, not timing the market

0011882555 (Russell Hathaway) — Tue, 10 Dec 2019 12:40:20 GMT

As yet another general election looms over the UK population, you could be forgiven for not quite feeling in the festive spirit. I think we can all agree no one really wants to be thinking about politics and the future of the country in December. I’m sure we would all much rather be sipping mulled wine and searching for the perfect Christmas tree.

With more uncertainty in the air we know that many of you might be concerned about what may lie ahead for your investment. It can be tempting at times like these to make short term decisions in an attempt to protect your money from the prospect of adverse market conditions. As understandable as this is, it goes against a basic principle which all investors should endeavour to follow – ‘time in the market, not timing the market’.

What do we mean by this? Well, it is quite normal for markets to rise and fall and Omnis strongly believe that with any uncertainty comes opportunity. They are both active and agile in approach and well positioned to be able to take advantage of these opportunities as they arise. Simply put, the Omnis aim is to use market fluctuations to buy low, sell high. By being an active investor, we are always looking for these opportunities.

As always, diversification – the concept of not having all your eggs in one basket – is a key investment principle which all investors should follow. Diversification is central to the Omnis approach when managing your money and key to protecting against unfavourable market outcomes. Omnis fund ranges, and portfolios are spread across a multitude of top tier fund managers, sectors, geographies and investment types. So, you can rest assured that your Omnis investments are being carefully managed with your long-term investment goals in mind.

We ensure your portfolio is only taking on as much risk as you are comfortable with, to meet your long-term financial goals. That’s why our partnership with your Omnis is so important to us.

Omnis are a long term active investment manager, and consider the wider, longer term impact of short term economic or political events. There will always be changes and challenges - it’s important to remember, that investing should not be considered with a short-term view.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Life assurance for couples

Tue, 13 Aug 2019 12:45:41 GMT

Which is better: Joint life or Single Life policies?

If you want to help make sure your loved ones will have financial security if you pass away, life insurance cover is the answer. But, if you’re part of a couple and you both need cover, should you take out single policies, or a joint policy that covers both of you?

With a single life policy, the insurer would pay out on the death of the policyholder and the policy would then lapse. With joint life insurance, however, the cover will apply to both policyholders and would pay-out either on the first or second death, depending on how the policy is set up.

Before you decide whether to take out single or joint life insurance policies, you'll need to decide what type of cover you need, and this will depend on your circumstances:

• Term Assurance: pays out a lump sum if you die within the agreed ‘term’ (ie. the amount of time you’ve chosen to be covered for). Term Assurance is typically taken out to protect a mortgage and, as such, can come with a level, or decreasing, sum assured - the latter reducing as you pay off your mortgage.

• Whole of Life Insurance: pays out a lump sum when you die, whenever that is - as long as you’re still paying the premiums.

• Family Income Benefit Insurance: pays out a regular income, instead of a lump sum, to provide ongoing financial support for those who depend on you.

You could also add critical illness cover to your life insurance policy, which means you’ll get a pay-out if you’re diagnosed with a serious illness and your claim is accepted. The type of conditions covered can include cancer, heart attack and stroke and will depend on the insurance provider.

Weighing up the benefits
Once you’ve agreed on the right type of cover, there are a number of other factors to consider to determine whether single, or joint life cover is best for you and your other half, including:

• Cost: a joint life policy may be less expensive than two single life policies. Level of cover - if your partner earns more than you might want them to have a higher level of cover, since the financial impact of their death would be greater than yours. In this respect two policies may be better as they will have different sums assured.

• Existing cover: either, or both of you may have existing life cover through your employer, or an existing plan. It's important to check what's already in place so that you have a true picture of your protection shortfall. You don’t want to pay for something that’s already covered.

• Your relationship: It's not necessarily something you want to think about, but some insurers include a separation benefit. This means if your relationship breaks down during the policy term, you could cancel it and start two individual policies without having to provide additional medical information.

If you're not sure whether single or joint life cover is best for you, or you'd like to review your existing cover, please get in touch.

NI Money Newsletter

Thu, 16 May 2019 10:57:45 GMT

Spring 2019

Download our Spring Newsletter here

Why you should get mortgage advice

Taking out a mortgage could be the biggest financial decision you ever make

All about ISAs

The tax-efficient investment you need to know about

Why are equities volatile?

Investing in equities can involve a more volatile ride compared to other asset classes

Time in the market vs timing the market

We look at the difference this could make to potential returns

Take advantage of a "free" pay rise

Only two thirds of UK adults are saving for retirement

How much can I pay into my pension

An informative look at the annual allowance

Look beyond the price of your protection policy

Why it's important to look beyond the headline rate

Download our Spring Newsletter here

2019/ 2020 Tax Year Begins

0011882555 (Russell Hathaway) — Thu, 11 Apr 2019 08:27:32 GMT

Tax reliefs and allowances summary

The 2019/20 tax year starts at the stroke of midnight between the 5th and 6th of April. While many individuals leave tax planning to the end of the tax year, you can look to maximise the benefits by using your personal tax allowances* and reliefs straight away. Please get in touch for details of one or more of the following:

Income Tax

· The tax free personal allowance has increased to £12,500 from £11,850.

· Basic rate tax of 20% will be payable on income above the tax-free allowance and up to the new higher rate threshold of £50,000 (which has increased from £46,350).

· Additional rate income tax remains the same at 45% on income above £150,000.

· If you are married or in a civil partnership, you may be able to save money by structuring your finances as a couple to ensure you are using both spouse’s tax allowances. This could be an especially good idea if one spouse pays tax at a lower rate than the other.

ISA

· The Junior ISA allowance has risen to £4,368 from £4,260 for children under 18.

· The adult ISA allowance of £20,000 remains unchanged.

· If you have children who are 16 or 17 this tax year, they can benefit from both the Junior ISA allowance and adult ISA allowance (cash only).

Pensions

· Saving into a pension comes with great tax benefits. For a start, investments in your pension are free from Income Tax and Capital Gains Tax. Pension contributions up to your annual allowance will also receive an automatic 20% top-up from the taxman, and higher-rate and additional-rate taxpayers can claim back another 20% or 25% through their Self-Assessment.

· Because of these generous tax rules, there is a limit to the amount you can pay into your pension. Each year, you can contribute as much money as you earn, usually up to £40,000 (although this tapers down to £10,000 for higher earners).

· If you have not used your annual allowance in the last three years, you may also be able to make extra contributions by using carry forward.

· Minimum pension contributions (paid by employers and employees) through auto-enrolment have risen to 8% (3% employer and 5% employee) of band earnings.

· The Lifetime Allowance for pension savings has increased to £1,055,000.

· The State Pension has increased by 2.6%, which for the full allowance is an increase of £4.25 a week to £168.60.

Other Savings Allowances

· The Personal Savings Allowance, which gives you tax-free savings interest, remains £1,000 for basic rate tax-payers. This reduces to £500 for higher rate tax payers and additional rate tax payers do not get any allowance.

· The tax-free Dividend Allowance remains at £2,000 (although dividends received by pension funds and ISAs remain tax-free).

Venture Capital Trusts and Enterprise Investment Schemes

· Although only suitable for individuals with a higher appetite for risk, you can invest up to £200,000 and get up to 30% income tax relief, provided the investment is held for a minimum of 5 years.

· Similarly, the taxation of Enterprise Investment Schemes is unchanged, meaning you can invest up to £1 million and claim up to 30% income tax relief provided the investment is held for a minimum of three years.

Inheritance Tax

· Each tax year you can make a range of tax-free gifts. These leave your estate immediately and won’t be taken into account when calculating your Inheritance Tax bill, including:

o All gifts to your husband, wife or civil partner (as long as the UK is their permanent home).

o Gifts of up to £3,000 each tax year, which can be carried over one year for a total of £6,000. This is useful if you did not use it in the 2018/19 tax year.

o Unlimited individual gifts of up to £250 per person.

o Wedding gifts of up to £5,000 for a child, £2,500 for a grandchild or great-grandchild, or £1,000 to anybody else.

o Unlimited payments towards the living costs of a child, elderly dependant or ex-spouse may be exempt.

o Unlimited gifts from surplus income that won’t affect your standard of living.

· The Residence Nil Rate Band has risen to £150,000 from £125,000; this can be added to the £325,000 Inheritance Tax allowance when a direct descendant inherits someone’s main house.

Capital Gains Tax

· The Capital Gains Tax allowance has increased to £12,000 from £11,700.

· Married couples and civil partners will continue to be able to combine their annual allowances.

Landlord Mortgages

· Landlords will only be able to offset 25% of their mortgage interest payments against their rental income (down from 50%).

· By 2020, there will only be a 20% tax credit saving from a landlord’s mortgage interest.

*This information is based on our current understanding of the rules for the 2019-20 tax year.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

The value of investments and any income from them can go down as well as up and you may not get back the original amount invested.

Review your Interest-only Mortgage

Tue, 12 Mar 2019 11:19:16 GMT

Thousands of people with interest-only mortgages expiring this year do not have a repayment plan - putting their homes at serious risk of repossession.

An estimated 81,400 mortgages will come to an end in 2019, totalling around £9.2bn in value, according to the Financial Conduct Authority. A further 82,100 mortgages worth £9.7bn will mature in 2020.

The ins and outs of interest-only

Unlike a repayment mortgage, where the borrower pays off the capital and interest on their loan each month until the debt is cleared, an interest-only loan offers a cheaper monthly premium but requires a single repayment of the capital at the end of the term. Normally this is cleared using the proceeds from a separate investment vehicle.

For example, a £150,000 mortgage at 5% over 25 years would cost £877 per month on a repayment basis, but only £625 per month interest-only. However, the latter leaves the original £150,000 capital debt to be repaid.

Since 2012, anyone taking out an interest-only loan must have a repayment plan in place, and this has led to a drop in the number being sold.

Don’t get trapped

If you have an interest-only mortgage but you don’t have a repayment vehicle in place, it is critical you review your finances as a matter of urgency. Depending on the term left on the mortgage you could set up a repayment plan now, or you could look at switching to a repayment mortgage. This may mean higher monthly repayments, but there are a lot of competitive deals in this current low-interest rate environment.

Another option could be to sell your home and downsize – something that may be possible if older children have flown the nest but nevertheless a difficult decision if you don’t want to lose a cherished family home.

If you are concerned about your mortgage, or you need advice on a suitable investment vehicle, please get in touch.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Have you considered Financial Protection?

Thu, 28 Feb 2019 11:19:08 GMT

Choosing the right type of cover to protect you and your family is important

Choosing the right type of cover to protect you and your family is important

Act now to ensure you remain protected

Making sure you and your family are financially protected should something unexpected happen is one of the most valuable things you can do and will help you avoid a financial crisis.

So what type of cover is right for you?

· Term Insurance pays out a lump sum if you die within the agreed ‘term’ (the amount of time you have chosen to be covered for). Suitable for mortgage protection or while children are financially dependent on you.

· Critical Illness Insurance pays out a tax-free lump sum on the diagnosis of certain life-threatening or debilitating conditions, like cancer, heart attack or stroke. You may decide to buy Critical Illness Insurance when taking on a major commitment, like a mortgage or starting a family, to provide peace of mind.

· Income Protection Insurance pays out a regular, tax-free payment of a percentage of your income if you become unable to work because of illness, injury and (on some policies) unemployment. It could help towards your mortgage or rent payments, as well as other living costs, until you’re able to return to work.

NI Money Newsletter

Wed, 06 Feb 2019 12:28:21 GMT

Winter 2018

Download our Winter Newsletter here

Become a superhero

We can grant you the power to do something amazing to help those you love

First -time buyers: Boost your mortgage chances

How to make it easier to secure your first mortgage

Confused about pension planning

37% of people contributing to their workplace pension don't even realise it

Why active investing is more effective in volatile markets

It's in volatile markets that active fund managers could add the greatest value

The value of protection advice

76% of parents have no financial plan in the event of ill health

How to prepare financially for long-term illness

It's not just the NHS that foots the bill when it comes to treating ill health

How a trust can help your financial planning

We look at the three most common types of trust and why they're beneficial

Download our Winter Newsletter here

Pensions in the Workplace

0011882555 (Russell Hathaway) — Fri, 30 Nov 2018 08:23:52 GMT

Six years on from Automatic Enrolment

Six years on from the launch of Automatic Enrolment in workplace pensions figures show there are close to 10million UK workers saving for retirement. But a recent Office for National Statistics (ONS) survey revealed 13% of people believe they don’t know enough about pensions to save into one. So, do you know if you are saving in to a workplace pension, how much you are saving or how much you need to save?

The ONS survey reveals 91% of eligible employees are now contributing to a pension but only 63% have realised they are doing so. If you aren’t eligible, you can still ask to join the pension scheme if you wish. Auto-enrolment means that workers aged between 22 and state pension age and earning over £10,000 are automatically opted in to their employer’s workplace pension scheme. Currently those enrolled must pay in at least 3% of your earnings and employers must pay in 2%. From April 2019 individuals must pay in minimum 5% and employers 3%.

In the example below, you can see the pension contributions based on a 35-year-old woman earning £35,000 per year and paying contributions based on qualifying earnings of £28,968 per year (Earnings before tax up to a maximum limit of £46,350 per year less the lower earnings threshold of £6,032)

	Now	April 2019 onwards
Monthly contribution	£57.94	£96.56
Tax Relief (some of the money that goes to the government from your pay in the form of income tax then goes to your pension pot)	£14.48	£24.14
Employer's monthly contribution	£48.28	£72.42
Total monthly contributions	£120.70	£193.12

If you're a man born on or after 6 April 1951 or a woman born on or after 6 April 1953, you'll receive the new State Pension at retirement. The maximum is currently £164.35 per week for the 2018/19 tax year (The actual amount you receive will depend on your individual national insurance contributions).

By staying opted-in to your company pension scheme you will also receive extra income from the contributions you and your employer have made whilst you are in work (plus any growth).

Automatic enrolment makes joining and staying in a pension scheme as easy as possible. The contributions that you and your employer pay will automatically be invested along with any tax relief and if you change employers you can take your pension pot with you to combine with your new employers pension or if you choose you can leave it where it is.

Where ever you are with your retirement planning get in touch to talk to us about your options.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Autumn Budget 2018

0011882555 (Russell Hathaway) — Tue, 30 Oct 2018 08:12:05 GMT

Summary of information from the Chancellor

Key Points

In a longer than usual Budget speech, and in a slightly more jocular than usual mood, the Chancellor laid out the government’s vision for post-Brexit Britain. With a raft of measures aimed at shoring up businesses, infrastructure and the health service, Mr Hammond used the better than expected public finances to present an upbeat programme. Leaving some of the major announcements for last, this was a Budget to mark the coming of the end of austerity.

Some of the main announcements were:

· The personal allowance will be raised to £12,500 from April 2019, one year earlier than planned. The higher rate threshold will also rise to £50,000 from April 2019, also a year earlier than planned, and will remain at the same level in 2020/21.

· The lifetime allowance for pension savings will increase to £1,055,000 for 2019/20 in line with CPI.

· The national living wage will increase from £7.83 an hour to £8.21.

· The annual investment allowance (AIA) will increase to £1 million for all qualifying investments in plant and machinery made on or after 1 January 2019 until 31 December 2020.

· For entrepreneurs’ relief, the minimum period throughout which the qualifying conditions for relief must be met will be extended from 12 months to 24 months from 6 April 2019.

· From 1 April 2020, companies will be subject to a 50% limit on the proportion of annual capital gains that can be relieved by brought-forward capital losses. Companies will have unrestricted use of up to £5 million capital or income losses each year.

· Business rates bills will be cut by one-third for retail properties with a rateable value below £51,000 for two years from April 2019.

· Capital gains tax lettings relief will only apply where the owner of the property is in shared occupancy with the tenant. The final period exemption will also be generally reduced from 18 months to nine months.

· The VAT registration threshold be maintained at the current level of £85,000 until April 2022.

· From 1 April 2020, the amount of payable research and development (R&D) tax credits that a qualifying loss-making company can receive in any tax year will be restricted to three times the company’s total PAYE and NICs liability for that year.

· From 6 April 2020, when a business enters insolvency, HMRC will be a preferred creditor for taxes collected by the business for the government such as VAT, PAYE income tax, employee NICs, and construction industry scheme deductions – but not such taxes as corporation tax and employer NICs.

· Large social media platforms, search engines and online marketplaces will be pay a 2% tax on the revenues they earn which are linked to UK users from April 2020.

· Fuel duty was frozen, alongside beer and spirits.

These key points from the Autumn Budget are provided strictly for information only. Always seek professional financial advice before acting. The value of investments and any income from them can go down as well as up and you may not get back the original amount invested. HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

NI Money Newsletter

0011882555 (Russell Hathaway) — Tue, 23 Oct 2018 10:35:52 GMT

Autumn 2018

Our latest newsletter is packed with articles, ideas and information to help you improve your financial wellbeing. Please browse the contents below and click on the link below and at the bottom to read our newsletter in full.

Download our Autumn Newsletter here

2018 Q2 Report
The Key geopolitical and economic events from the first half of the year

Savers in the dark about their pension

How to plan for a more comfortable retirement

Risk v Reward

An important Factor to consider when designing and investment strategy

What life insurance is best for your joint mortgage

Protection considerations when going into joint property ownership

The cost of retirement

How much money will you need to see you through?

The search for a reliable retirement income

Generating investment income in a low interest environment

Advice matters whatever stage in life you're at

A high-level look at the financial planning requirements you might need

Download our Autumn Newsletter here

Brexit - a view from Omnis Investments Ltd

0011882555 (Russell Hathaway) — Mon, 24 Sep 2018 09:08:52 GMT

How could a ‘no deal’ Brexit affect your investment portfolio?

There has been plenty of speculation lately about the impact of a ‘no deal’ Brexit on the UK economy. Just last week, Bank of England Governor Mark Carney warned ministers that house prices might fall, and the government published another round of planning papers outlining what companies and individuals need to do if the UK leaves the EU without an agreement.

Brexit-related uncertainty has already affected the economy. Businesses have postponed investment, while weaker sterling has fuelled inflation and squeezed household spending due to tepid wage growth. This may have cost up to 2% in gross domestic product, Mr Carney told the Treasury Select Committee in May. (footnote 1)

If the UK leaves the EU without a deal, the consensus view (supported by the International Monetary Fund) is the economy could take another hit and sterling might depreciate further. That may leave you wondering about the possible impact on the value of your investment.

We believe our portfolios could benefit in this scenario. The UK markets rallied in the aftermath of the referendum result because many of the companies listed on the FTSE 100 have a global footprint and generate profits in foreign currencies. When they repatriate these profits, they are worth more if sterling is weak.

In our view, both global and domestic equities would experience the same effect in the event of a ‘no deal’ Brexit. Meanwhile, the UK bond market could rally because lower growth expectations would outweigh the increased risk of ownership. Our internationally diversified portfolios are already positioned to capture any potential gains.

However, we think a soft Brexit is the most likely outcome, at least initially. A no deal Brexit would hurt the EU economy, although to a lesser extent than the UK, so it is in the best interests of both parties to reach an agreement. A harder Brexit could be negotiated after what would effectively be a prolonged transition period.

UK assets- particularly sterling- may remain volatile and sensitive to the latest headlines while talks continue, but they could rebound if the rhetoric softens and once the two sides make progress towards a deal. We recently reduced our underweight position in UK equities to reflect this scenario.

Of course, there is still a lot of uncertainty, and we might end up with an outcome which leads to a fall in the value of your investment. The key is to diversify the risks within a portfolio by holding a global spread across a variety of asset classes. If you maintain a long-term investment horizon it should lessen the impact of events like Brexit.

Omnis Investments Limited does not offer investment advice nor make recommendations regarding investments. Please remember that this reflects Omnis’ view at the time of writing and is subject to change.

1 https://www.parliamentlive.tv/Event/Index/eecf04de-8031-4d4b-9671-faf5cb7e29cb#player-tabs

NI Money Newsletter

0011882555 (Russell Hathaway) — Fri, 03 Aug 2018 14:56:32 GMT

Summer 2018

Our newsletter is packed with articles, ideas and information to help you improve your financial well-being. Please browse the contents below and click on the links to read our newsletter in full.

Download our latest newsletter here

2018 the Half Year Report

A look back at the global political and economic events from the first half of 2018.

Changing Rooms

How to give your home kerbside appeal.

Protection in Trust

How to make sure your policy pays out on time, to the people you want to benefit from it.

Long-Term Investors needn't fear volatility

Short-term movements in the stock markets are part and parcel of investing

The gender pension gap

There are a number of ways women can boost their income in retirement.

Are you thinking of down-sizing?

Almost half of empty nesters have no plans to downsize, even though it could free up equity.

Advice matters whatever stage in life you're at

A high-level look at the financial planning requirements need

Download our latest newsletter here

The real reasons people take Professional advice

0011882555 (Russell Hathaway) — Tue, 05 Jun 2018 13:41:54 GMT

In her new book, “Advice That Sticks: How To Give Financial Advice That People Will Follow”, Canadian neuropsychologist and executive coach Dr Moira Somers gives several reasons why people take advice:

To reduce complexity. It is easy to become overwhelmed if you have lots of unfamiliar terms and information to assimilate. Experts help cut through the noise and understand what is relevant.
To take action. Many people suffer “decisional paralysis”, particularly when they have too many choices. An expert helps avoid indecision and dithering.
To save time. Delegating certain financial related tasks allows time and energy to be put to better use.
To offload unpleasantness. There can be immense value in getting someone else to do bothersome and disliked financial tasks.
To make someone else happy. There are some occasions, such as major life events, where seeking advice will be of indirect benefit to other people.
To increase confidence. An expert can reassure you that you are on track to meet important financial goals, and help keep in check any over-confidence.
To help make better trade-offs. An experienced adviser can help reconcile the disconnects between what you want and what you can afford.
To receive encouragement. Changing long-standing money habits and behaviours can be hard to sustain. Being encouraged by someone who is on your side, and to whom you can be accountable, can keep you on track.
To have someone to blame. Research suggests some people delegate primarily to cede responsibility and blame rather than purely to obtain good advice.
To feel safer. Studies show the way our brains process information change when we make difficult financial decisions if we have the benefit of advice from an expert. In this situation, our brains look a lot more like when people feel a high level of trust and safety.

Source:
https://www.moneymarketing.co.uk/issues/24-may-2018/jason-butler-the-real-reasons-people-take-profes...

Going, going, gone to the auction!

0011882555 (Russell Hathaway) — Wed, 30 May 2018 13:39:08 GMT

If you think property auctions are only for professional property developers or investors think again. They can be a great place to pick up a family home.

In 2017, some £3,190 million worth of UK residential property was sold at auction, accounting for 21,024 properties. Even though this is just a drop in the ocean compared to the 99,800 residential properties bought through regular channels in December 2017 alone, buying at auction gives you the chance to pick up your dream home (or a fixer-upper) at a good price and makes the buying process much quicker.

Homes under the hammer

Before you take your place in an auction it’s important to decide on your price limit. You should base this on the price that similar properties in the same area have recently sold for – and of course your own budget. Remember to factor in any additional costs, like mortgage fees and any stamp duty that may be due. If you’re not a cash buyer it’s wise to get a mortgage decision in principle before you raise your hand, as winning bids are legally binding as soon as the gavel goes down. If you win, you have to pay a 10% deposit on the day and you usually have a further 28 days to pay the remaining 90%.

Know what you’re bidding for before you bid!

Before you bid on a property in auction you should go and view it – the same way as you would if you were buying through an estate agent. You should also take the opportunity to employ a Surveyor or similar to carry out a Homebuyers Report or Full Structural Survey. You won’t get the cost of the survey back if you’re out-bid in the auction but that’s preferable to ending up with a large investment in something that requires a lot more work – and money – than you bargained for.

If you’re thinking of buying your home under the hammer:

• You could find a great deal, whether it's an undervalued home with planning permission or a renovation project, there are plenty of bargains to be found at property auctions.

• It’s quick; the entire process should be complete within 28 days of the auction It’s transparent, so you won't have to worry about being gazumped, things falling through because of an issue further down the chain or a seller pulling out - and you won’t have to take an estate agent's word on the other bids.

• You must have money ready to pay the deposit on the day and the remaining amount within the allotted time.

To find out more about your mortgage options please get in touch.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Will we ever summit the Pensions mountain?

0011882555 (Russell Hathaway) — Thu, 17 May 2018 07:12:51 GMT

Average person will need £260,000 for retirement, says report

Yesterday, press commentary from the BBC and Guardian newspaper published new research from Royal London which has found that the pension pot needed to avoid an uncomfortable retirement – dubbed the ‘pension mountain’ – has grown in size in real terms by three quarters since 2002 from around £150,000 to £260,000.

Click the link below for a copy of the full Royal London policy paper for your information.

The Pension Mountain - A study by Royal London

The paper goes on to claim that, with falling levels of home ownership, younger generations who end up having to pay rent in retirement could need a total pot as high as £445,000 to avoid a slump in living standards when they stop work.

Royal London’s paper seeks to answer the most frequently asked question in pensions – how much do I need to save for my retirement? It looks at an average earner on just under £27,000 per year and assumes that they draw a full state pension of just over £8,500 per year.

It assumes that retirement will bring some cost savings such as no longer having to pay a mortgage, no longer having to contribute into a pension and no work-related costs such as season tickets etc., and therefore suggests that workers who can retire on two thirds of their pre-retirement wage will see no fall in their standard of living when they stop work. This means a private pension income of just over £9,000 is needed in addition to the state pension.

If you’d like advice on your pension and investment planning, please get in touch.

The tax efficiency of pensions is based on current rules. The current tax situation may not be maintained. The benefit of the tax treatment depends on the individual circumstances.

The value of your investment fund any income from it may fall as well as rise. You may not get back the amount you originally invested.

The value of investment advice

0011882555 (Russell Hathaway) — Thu, 10 May 2018 16:25:24 GMT

Let’s be honest. Seeking advice on how to look after your money may not be as fun as the immediate thrill of spending it, but it could be a rewarding decision in the long run.

Research published last summer by the International Longevity Centre for Royal London found that those who received financial advice in the 2001-2007 period were around £40,000 better off than their unadvised peers by 2012-14. The report also found that 9 in 10 people were satisfied with the advice received, with the clear majority deciding to go with their adviser’s recommendations.

Advice is crucial

The UK’s regulator for financial service firms and financial markets, the Financial Conduct Authority, has also been keen to promote the value of professionals. In a speech late last year, the regulator’s supervision director Megan Butler stressed that financial advice is of “unprecedented importance” in the UK today.

This is particularly relevant in the context of the pension freedoms introduced in 2015, which means anyone aged 55 and over can take the whole amount of their pension as a lump sum. With so many legitimate uses we can put our savings towards today, Butler said “the role of the financial adviser is today more important than ever”.

This is also true in the context of uncertainties; around Brexit, prospects for the UK economy, and the future direction of investment markets. As we all know from the last global financial crisis, things change very quickly and can catch us off guard. Professional advisers, like us, are no different in this regard, but with your financial wellbeing at the heart of what we do, together we can create a plan aimed to help you profit in the good times and weather the storm against any possible downturns.

We’re here to help

So how can financial advice work best for you? As well as managing your wealth through investments, you may also need specific help arranging a mortgage, or making sure you and your family are protected in the event of something unexpected. We’re here to help advise on any, or a combination, of these.

That you are reading this article suggests you already have, at the very least, made the first step in seeking advice. Indeed, you may well have had a relationship with us for many years. Either way, we’re here to help you take the right steps helping to safeguard your financial future

The value of investments and any income from them can go down as well as up and you may not get back the original amount invested.

If you’d like to set new financial goals or review your existing plan, please talk to us.

Your home may be repossessed if you do not keep up repayments on your mortgage.

NI Money Newsletter

0011882555 (Russell Hathaway) — Thu, 03 May 2018 10:04:42 GMT

Financial Viewpoint - Spring 2018

Our newsletter is packed with articles, ideas and information to help you improve your financial well-being. Please browse the contents below and click on the links to read our newsletter in full.

Download our latest newsletter here

Spring Statement

A look at some of the headlines behind the Chancellor's statement.

The path ahead for the global economy

We look at the political and economic events that could impact your investments.

Don't fall for a pension scam

Pension fraud is becoming increasingly sophisticated, but there are ways to spot the warning signs.

The importance of diversification

Who should you listen to when it comes to choosing how you invest?

It happened to him

A real-life case study shows just how critical illness cover can make a difference.

What's your General Insurance start date?

Why it's important to have the right cover in place at the right time.

Download our latest newsletter here

Is now the right time to fix?

0011882555 (Russell Hathaway) — Wed, 02 May 2018 10:22:45 GMT

November 2017 saw the Bank of England raise interest rates for the first time in a decade, from 0.25 per cent to 0.5 per cent, causing a number of lenders to increase their mortgage rates.

The Bank of England has indicated there could be further rate rises, so if you’re on a Standard Variable Rate (SVR) or Tracker mortgage you might start to question whether now is the right time to fix your mortgage rate.

When will interest rates go up?

With the UK experiencing high inflation but weak economic growth, opinions are split on how the Bank of England will react, making it very difficult to predict when interest rates might rise.

Should I consider moving to a fixed rate mortgage?

The attraction with a fixed rate mortgage is the certainty it gives to your monthly mortgage repayments over a set period. This is useful if you’re on a budget because it gives you peace of mind that if the interest rate goes up, your repayments will stay the same for the period of the fixed rate.

Whatever type of deal you’re on, it’s a good idea to take any increase in the base rate as an opportunity to review your current mortgage, particularly as lenders will be launching deals to entice new, and retain existing, customers. As the base rate and mortgage rate are often closely linked, many experts believe now is an ideal time to get a new deal, especially if you’re currently on a high SVR.

If you are considering changing your mortgage deal, make sure you're clear on any fees and charges that may be due when remortgaging, as these can reduce any potential savings made. Some lenders have exit fees and early repayment charges as high as 5 per cent, so if you’re coming to the end of your term, check that you’re not switching out during the penalty period.

When looking for a new mortgage deal, it’s sensible to start reviewing your options between three and six months before your mortgage deal is due to end.

If you're not sure whether moving to a fixed rate is right for you, please get in touch.

Your home may be repossessed if you do not keep up repayments on your mortgage

The importance of diversification

0011882555 (Russell Hathaway) — Wed, 25 Apr 2018 07:22:21 GMT

With ISA season comes the usual fanfare in the money pages about which investments will deliver the best returns – peppered with the usual important caveats about investment performance and the potential for loss of course.

Every commentator will have a different idea about which areas and which funds are the best bet; and these varying opinions can cause confusion for anyone relying on their expertise.

It’s also important to note that none of these talking heads will be privy to your specific financial circumstances and goals – no matter how impressive their CVs. That’s why it is so important to seek advice from professionals – like us – who will take the time to find out more about you, what makes you tick and what you’d like to do with your money. This ensures a robust process which results in an appropriate plan and appropriate investments that match your specific risk profile and financial goals.

Diversification matters

Any investment professional worth their salt will tell you about the importance of diversification across your investments, particularly if you plan to save money in your ISA over the longer term (ie. more than five years).

If you invest in individual funds, and we can recommend funds from some of the leading fund managers, the trick is to blend exposure to different asset classes. These asset classes include equities, often referred to as ‘stocks’ or ‘shares’, which represent a stake in the ownership of a company.

There are also bonds – sometimes referred to as ‘fixed income’ securities – which could be described in similar terms as a loan to a company or government which pays interest. Compared to equities, bonds can be less risky should you require a more stable investment environment.

Other, so-called ‘alternative’ investments could include property, or commodities like gold, natural gases or agriculture, which are all accessed via specialist funds.

Active, daily management

We can recommend a spread of funds through a range of risk-rated portfolios. These are the auto-rebalancing Openwork Graphene Model portfolios and the actively managed Omnis Managed Portfolio Service .

The latter is managed on a daily basis by experts whose aim is to deliver consistent returns while managing risk through investing in a wide variety of Omnis funds.

Whichever way you invest, it’s important that you take up your maximum ISA allowance if you can afford to. This is £20,000 for the 2018/19 tax year.

If you’d like advice on your investment planning, please get in touch.

The tax efficiency of ISAs is based on current rules. The current tax situation may not be maintained. The benefit of the tax treatment depends on the individual circumstances.

The value of your stocks and shares ISA and any income from it may fall as well as rise. You may not get back the amount you originally invested.

Don't fall for a pension scam

0011882555 (Russell Hathaway) — Mon, 23 Apr 2018 17:12:12 GMT

Frank Field, Labour MP and chair of an influential parliamentary committee, has called for legislative action to help keep pension savings safe.

This comes after Police data shows that more than £43m of people’s retirement savings have been lost to fraud since the pension freedom reforms were announced. Figures from The Pensions Regulator estimate that around £500 million is stolen from our pensions every year.

There are different types of scam, but they often begin by someone contacting you unexpectedly by phone, email or letter. They may invite you to learn more about:

• an investment or other business opportunity that you’ve not previously spoken to them about

• taking your pension money before you’re 55

• ways that you can invest your pension fund

Protect yourself from fraud

Fraudsters and their scams are becoming increasingly sophisticated. They can be financially articulate and very convincing; with websites and marketing material that make them look legitimate. So how would you know if you’re about to be the next victim?

Spot the warning signs - If you’re contacted out of the blue, if the investment risks are downplayed, or they are using pressurised selling tactics which offer a bonus or discount, it should set off alarm bells. And if the offer is ‘one time only’ or you’re asked not to share the details of the ‘opportunity’, you should be suspicious.

Check the Financial Services Register – https://register.fca.org.uk or call 0800 111 6768. If an individual or company is not on the register, it’s probably a scam.

A good rule of thumb with all scams if it’s too good to be true, it probably is.

If you think you are being targeted by a scam hang up the call, delete the email, rip up the letter. If you think you have been the victim of a scam already contact Action Fraud, the UK's national fraud and cybercrime reporting centre, immediately on 03001232040.

To find out more about how to protect yourself from financial scams visit:

• FCA ScamSmart
www.fca.org.uk/scamsmart

• Take Five
https://takefive-stopfraud.org.uk/

• Pension Wise
https://www.pensionwise.gov.uk/en

• The Pension Advisory Service
https://www.pensionsadvisoryservice.org.uk/

As your trusted Financial Adviser, you should always talk to us before taking any critical financial decisions, especially when it comes to something as important as your pension.