Flexible retirement income and drawdown tax. What does it all mean?
Once you reach 55, a whole host of opportunities will open themselves up to you. One such opportunity is the fact that you can at last access that hard-saved pension fund. Up to 25% of your savings can be taken tax-free, with the remaining 75% being subject to income tax.
How can you make the most out of diversification?
Diversification is a word that tends to get mentioned a lot in conversations around savings and investment. We hear it often, but what does it mean? Put simply, diversification is a risk management strategy that blends a variety of investments within a portfolio. Through having different kinds of assets in…
How is your financial wellbeing?
Increasingly, people are talking about financial wellbeing. But what does it actually mean? Financial wellbeing is about having a sense of confidence and security around money. It’s about being in control of your finances and having enough money to meet everyday needs; having the financial freedom to make choices that…
What does it take to retire early?
The idea of retiring in your 50s or even your 40s sounds like a pipe-dream to most, what with increases in living costs and low or non-existent wage growth slowly eating away at your income. This hasn’t stopped the rise of the FIRE (Financial Independence Retire Early) movement, though, a…
Is the Neil Woodford debacle another nail in the coffin for active investing?
If you read the financial press, this is huge news. On 4th June 2019, ‘Star fund manager’, Neil Woodford, stopped investors withdrawing money out of his flagship Woodford Equity Income Fund. This was brought about by a run on the fund, which saw investors withdraw a whopping £560m in May…
Defined Benefit and Defined Contribution pensions—what are the differences and trends?
As Defined Contribution (DC) pensions overtake Defined Benefit (DB) pensions (in terms of money paid into schemes) for the first time ever, increasingly people are taking an interest in how the two differ and the relationship between them. The Office of National Statistics has reported that in 2018, employee contributions…
UK households are struggling to save; what are the effects?
In 2018, a study found that one in four adults have no savings. Many people in the UK wish that they had money to save, but high monthly expenditure and repaying debt seem to take precedence. Saving for life’s unforeseen emergencies is a great way to maintain a sound mind,…
6 mistakes to avoid during retirement
Planning for retirement can be complex, as anyone nearing the end of their working life will tell you. Yet, navigating the myriad of choices, both socially and financially, doesn’t have to be such a mystery. Here are a few tips to help you avoid common mistakes that retirees often make:…
5 common pitfalls that put your retirement plans at risk
Imagine the scene; you’ve spent your entire working life living frugally, saving efficiently and investing wisely. You begin your well-deserved retirement financially secure and excited for the years ahead. The future could develop in one of two ways; the first could lead to sustained security and the financial freedom to enjoy…
What makes seeing a financial planner like having an MOT?
We’re all used to taking our cars for their MOT, aren’t we? The test includes checks on the lights, bodywork, brakes, suspension and much more. It’s designed to make sure that your car is roadworthy and safe to drive, to prevent any accidents or breakdowns. This got us thinking that…