Recovery of economy being affected by two major factors

Industry officials have recently stated that the recovery of the economy in the UK is being seriously hampered by two major issues, which have been highlighted as rising unemployment levels and the rising number of swine flu cases. Read more

Tags: economic recovery, new money, whilst, breakdown, industry officials, recession, state, publicity

Are banks becoming more generous with their lending?

A number of reports that have been released recently have suggested that mortgage lending amongst banks in the UK has been increasing, and whilst the past couple of years has seen lending becoming increasingly restricted recent figures have indicated that mortgage lending levels have increased to their highest in around fourteen or fifteen months. Read more

Tags: Financial services, Mortgages, mortgage market, state, mortgage lending, banks, fifteen months

UK facing worst economic crisis in six decades

In a very stark and frank interview with a national newspaper Alistair Darling, the Chancellor of the Exchequer, has stated that the UK is facing its worst economic crisis in six decades. The chancellor insisted that he had to be straight with the public because it was his duty to do so, and he warned that the economic downturn was set to be far more damaging and long lasting than had originally been predicted – mirroring earlier opinions from a number of trade and industry groups. Read more

Tags: Chancellor level, food, state, economy, earlier opinions, The chancellor, crisis, Trotskyists

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: state, Pension, Fidelity Retirement Index, Financial services, Labor

Personal pensions ‘vital’ for women

Independent financial advisory Ruth Whitehead Associates has urged women in particular to make sure they have a personal pension set up, as well as other savings, to given them financial security in the future.

Ruth Whitehead, principle advisor for the company, said that it was important for women to take out a personal pension because their National Insurance contributions are more likely to be affected by time taken out from work, which could in turn lower their state penions.

According to the Pensions Advisory Service, only people who have made National Insurance contributions for about 90 per cent of the years in their working lives are entiteled to a full state pension.

Ms Whitehead said that women should consider “three things” to safeguard their financial future, one of them being a pension, although she added that pensions “now can’t be the only route to sorting out your long-term needs”.

She also noted that Isas were a good option, as well as property.

Tags: Ms Whitehead, Pension provision in the United Kingdom, independent, advisor, National Insurance, Ruth Whitehead Associates, state

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

Don’t let ‘money fear’ take grip

Sainsbury’s Bank is encouraging Britons not to put their heads in a financial sandpit and to face the reality of their banking problems.

Research carried out by the group suggests that some 2.8 million consumers, or six per cent of the adult population, purposefully ignore the state of their financial situation.

According to Kevin Barrett, head of channels at Sainsbury’s Bank, almost two million Britons refrain from divulging their financial positions with partners because they are worried about the potential reaction.

Over one in ten people also claim to have left credit card and bank account statements unopened as a means of procrastinating over financial matters.

Mr Barrett said: “Our advice to people suffering from this condition is not to put your financial management off, problems can arise if you don’t keep an eye on things.”

He added: “For example, without regularly monitoring your statements you won’t be able to identify issues such as identity theft. Take control of your finances now, look at your expenditure, plan your budget and by all means, seek advice or counselling if you need to.”

To avoid getting into the situation of ‘money fear’, Sainsbury’s Bank calls for consumers to face up to their financial situation, to prioritise debts and to plan a budget and stick to it, among others.

Tags: money, situation, potential reaction.Over, head of channels, account

Drivers not going hands-free

Many British drovers continue to use their mobile phones while driving, despite recent changes to make punishments harsher.

A survey, carried out by Which?, found that 33 per cent of drivers are still making and receiving calls while behind the wheel.

In addition, 32 per cent admit to sending or reading text messages while driving, running the risk of prosecution or, even worse, having an accident.

New laws introduced in February state that drivers can be hit with a £60 fine and three penalty points on their licence if they are caught on their phone while driving.

This can have a big effect on insurance premiums for drivers and the fact that they continue to talk and drive cannot be put down to ignorance of the laws.

In a separate Which? survey, it was found that 90 per cent were aware of the penalty changes.

“Although people seem to be aware of the higher penalties for mobile phone use behind the wheel, many either don’t understand or don’t obey the revised law,” commented Richard Headland, motoring editor at Which?.

“The penalties for using a handheld phone when driving are now stiffer, but to be effective the government must change driver behaviour through better education as well as enforcement.”

The survey also highlighted that only one in ten drivers are aware that it is still legal to call the emergency services while behind the wheel.

Tags: state, editor at Which, prosecution, effect, accident, Insurance, cannot, percentage