Better future for economy following drop in unemployment

Recent figures showing that unemployment has finally fallen has brought with it hopes that the future of the economy is looking a little brighter. The figures showed that there was a significant drop in unemployment figures for the month of December. Many think that this will spell good news for both the jobs market and the economy as a whole. December saw unemployment levels fall for the first time in around two years according to reports.

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Tags: Labor, month, Late-2000s recession, global credit crisis, jobless figures, economics

Switching Health Insurance Policies

Many UK residents are scratching their heads in disbelief as the renewals for their health insurance policies come due. The premiums have risen and in many cases by as much as 10%. Since having health insurance cover is vital, many people think they have no other choice but to pay the higher premiums. Such is not the case and there are ways of relieving this type of financial pain. Read more

Tags: health insurance, health insurance costs, streamlined health insurance policy, Bupa, Labor, Social Issues, health insurance premiums

Increase in jobless figures

According to a recent report there was in increase in the number of jobless people in the UK towards the end of last year, and the rise in the number of unemployed is expected to continue this year. Read more

Tags: Labor, claim, increase, stability, unemployment, jobless people, variety

As pensions dwindle, ‘people to rely on savings’

With the amount being paid out by pension funds expected to drop the number of people having to dip in to their savings each month is likely to rise, the director of Churchouse Financial Planning has warned.

Keith Churchouse said that people who have taken the opportunity to build up savings are likely to “be reliant” on them once they retire.

“I do think that people are very unlikely to be reliant on pensions in retirement,” Mr Churchouse commented.

According to the Fidelity Retirement Index, a worker who retires now on the average UK income can expect less than £30 a day from their pension payout.

The organisation says that someone currently earning the national average salary of £22,900 who is about to retire will have an annual income of £9,618 from their pension, which is about £185 a week.

Mr Churchouse said he does not think “there’s any doubt” people will rely more on their savings in old age.

Tags: Labor, someone, Business Finance, annual income, salary, employment, retirement index, Churchouse Financial Planning

Pensioners likely to ‘rely more on savings’

Pensioners are expected to increasingly rely on their savings as their as pensions are gradually offering lower payouts, the director of Churchouse Financial Planning has said.

Keith Churchouse said that it is likely to become more common for people to dip into their savings as they become older and retire as they will probably be unable to rely on their pensions.

He noted that some people are hesitant about paying money into a pension scheme and those who choose not to have a personal account may find themselves dependent on the government in the future.

Mr Churchouse went on to say: “However, I don’t know whether the government has the view that if you actively opt out of the scheme, there is going to be a caveat to say that you can’t pop back to the state later.”

According to the Fidelity Retirement Index, the average household can expect to live off 42 per cent of their current income when they stop working full-time, which is far below the two-thirds that the Pensions Commission is proposing.

Tags: Financial services, Household, cent, Labor, state

Average Brit ahead of international average when saving for retirement

A new survey published today shows that the average British consumer begins planning for their retirement up to five years ahead of the international average.

According to findings from AXA, Brits start saving for their post-work future at 28 years-old, compared with workers in France and Spain who do not start planning for life post-work until they are 34.

Up to three in four (71 per cent) of working Brits have started preparing for their retirement financially, a percentage higher than the global average of 54 per cent.

Steve Folkard, head of pensions and savings policy at AXA, said: “It is encouraging to see that Brits lead the way when it comes to retirement planning but not surprising given that state benefits in the UK provide a very modest retirement income compared with many other countries.”

The research also shows that people have found alternative ways to save for the future.

New methods include opening personal pension schemes (45 per cent) and putting money aside in equities and bonds (45 per cent).

Meanwhile, the Policy Exchange has warned that the pension crisis is worse than originally feared as it faces a perfect storm.

Tags: life, Labor, Financial economics, spain, modest retirement income, income

Pensioners increasingly in debt

Despite the credit crunch, borrowing levels have continued to rise and debt levels are increasing with the over-55s being the worst offenders, according to financial experts.

Research from Callcredit reveals that the elderly are the most uncertain about their future with 16 per cent of respondents over-55 financially unaware and unable to define their debt levels.

As a result the pensions gap is continuing to increase, claim the organisation.

Mark Ward, consumer debt expert at Callcredit, said: “It is essential that people start to borrow more carefully in order to avoid having to owe more than we are able to pay back.”

Over 1.5 million of those aged 55 and over claim they can’t afford to retire at state retirement age due to a lack of pension savings.

Another 1.1 million retired homeowners in the UK have outstanding mortgage on their home, with an average debt of £38,000.

Callcredit is a consumer credit reference agency and forms part of the Skipton Information group.

Tags: finance, 1 million, Banking, lack, information, reference, United Kingdom, Labor

Property alternative investment to pensions

With many assets-rich Britons seeking out alternative investments to their pensions, industry experts yesterday suggested that property could be the way to go.

Current government breakdowns of pensioners’ income suggest that investment income stands at nine per cent.

State benefits stand for 45 per cent, with other types of pensions forming a total of 28 per cent.

The chief executive of the Pensions Advisory Service (PAS) pointed out that investing in property was advisable, because “it’s probably better not to put all [of your] eggs in one basket”.

Malcolm McLean added: “Investing in property instead of a pension is fine, as long as you have the means to do it.

“People often say they wish they had put their money into property rather than a pension, but this isn’t always an option. The rewards in property investment – in people’s minds – seem to outweigh financial rewards from pensions.”

According to latest figures from the Office for National Statistics, total numbers of pensioners in the UK stood at 8.1 million.

Tags: go.Current government breakdowns, state, breakdowns, Pension, pensions advisory service, Financial economics