The Pensioner Bonds were a Budget promise from the Chancellor, following lobbying from charities. They argued that pensioners who had relied on the income generated from their life savings were particularly hard hit by more than five years of record low interest rates. The one-year bond will pay an annual interest rate of 2.8%, and the three-year bonds will pay 4%.
The 5th April might seem a little way off yet, but the end of the tax year always seems to arrive faster than we think! For financial planning, the end of the tax year is important for a variety of reasons and so, before we hit the deadline, put some thought into the following five tips and maximise your saving opportunities before they disappear for good!
Originally announced during The Chancellor’s Budget speech in March 2014, January 2015 will finally see the launch of the new so-called ‘pensioner bonds’. The rates for the bonds, announced only recently, will see them leading the bond marketplace, with the one-year bond offering 2.80% gross/AER and the three-year bond promising 4.00% gross/AER.
The number of women saving adequately for retirement has shifted from a record low to a four-year high in the last 12 months, according to Scottish Widows’ annual Women and Retirement Report. Half of the UK female population is now preparing adequately – the first increase recorded since 2011 – a leap of 10 percentage points from 40 to 50 in the past year following the significant changes in pensions regulations such as the introduction of automatic enrolment.
Recent research from MGM Advantage, the retirement income specialist, reveals alarming disparities between the retirement finances of men and women. Although, on average, people in retirement feel that they need an additional £130 per week on top of their current income to be financially comfortable, women’s financial position in retirement is already more austere than that of men and their outlook seems to be much more prudent.
2014 was a momentous year for pensions. Changes around how pensions could be drawn at retirement and how death taxes on pensions would be improved were both announced in the year, with the intention that all these new rules will be in place by the end of April 2015.