The headline rate for the Consumer Prices Index inflation increased to 5.4% in December, a rise from 5.1% in November, and the highest rate in 30 years. With the Bank of England seeming more hawkish on inflation, interest rates have risen again to 0.5%, at this month’s Monetary Policy Committee meeting. This rise to 0.5%,
The University of John Hopkins recently conducted research into the returns on offer to investors. Between 1900 and 2017, the average annual return on stocks was around 11% and, even after adjusting for inflation, that average annual return only fell to 8%. It shows that, for longer-term investors, staying the course is the best port
Inflation is a silent killer – it earns its’ reputation through the slow deterioration of the purchasing power of your money over time. It is also the enemy of your savings because you always need to take it away from any growth to find out the real rate of return. Low inflation is easily overlooked
Before we begin any discussion, let us be quite clear – both property and pensions can deliver long-term growth, both can be used to fund retirement, and both can play an important role in savings. In the UK, property has long been seen as a good investment, with house prices beating inflation by 3% per
The Spring Budget announced that the Pension Life Time Allowance (LTA) would be frozen until at least April 2026 at £1,073,100. Previously, the LTA increased at the target rate of 2.5% however last year due to the low inflationary environment, it only went up by 0.5%. A prolonged period with no inflationary increases will mean
One of the most fundamental risks in retirement is longevity, the risk of running out of money before running out of life. Whilst there are a lot of benefits to living a long time, longevity undoubtedly increases financial risk. So just how long will your retirement plan need to generate income? Most people underestimate their life expectancy, often significantly. A man who is 65 years
A year has passed since the World Health Organisation (WHO) declared COVID-19 a pandemic. In the year since, tremendous effort has been expended to stop the spread of the virus, and protect people and economies. Whereas this time last year, equity markets were falling sharply, and corporate bond spreads were widening dramatically, many equity indices
Some people dream about retirement, others plan assiduously for it, and for others, it just comes along. Retirement means many things for different people but knowing when you can afford to go depends on your number – the level of assets that you need to be certain that you do not need to return to
The bill for COVID is coming, make no mistake about it. Yet, in a clever game of political smoke and mirrors, Chancellor of the Exchequer Rishi Sunak served up some hope in the Budget, freezing personal and corporation tax bands rather than increasing tax rates as originally mooted. All seems to be well until you
Holding cash on deposit is a necessary part of the financial planning process. There are always unexpected twists and turns that life throws at us, so the general rule of thumb is to have two to three months’ living expenses saved in an instant access account, just in case. However, cash is definitely not king
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