Interest Rates Heres news that’s likely to make readers happy and terrified in equal measure: The BoE has issued warnings that interest rates could rise sixfold in three years as British economy grows faster than that of any other developed nation. Sorry, savers, I have a mortgage, so am in the latter (terrified) category. However, being realistic, ‘sixfold’ would mean a 3% base rate. Which is still historically, pretty low… Independence? Much debate in our profession at the moment over Hargreaves Lansdown, who openly recommend only those funds which offer them the best discount terms. This blatantly excludes top fund management groups like Jupiter, Henderson and BlackRock from their list. HL have huge buying power, so can negotiate hard; big question is, how does this fit with the regulator’s ideal of fee-based, properly independent advice? Who works hardest? Are high earners lazy? Politicians always say those ‘with the broadest shoulders’ have to do their bit to help hard working families. Is it really fair that, as we learned this week, one in ten taxpayers currently pay two thirds of all tax. Could it be that theyre the real hard working families? Who’ll keep working? When I first started arranging (used to be called selling then) pensions, most people hoped to retire early, at 50 or 55. Now, were twice as likely to work past 65 than in any other country in the world. What happened to more leisure time? Here’s the answer. I did a rough calculation for a client who’s changing jobs and leaving a final salary scheme. It worked out that they’d need to pay 27% of their new salary, each year for almost the next fifteen years to a money purchase pension to match the benefits they’d lose.
Posted on: Sun, 16 Mar 2014 16:51:00 +0000
Trending Topics
Recently Viewed Topics
© 2015