Fewer adults save for retirement by Finance News Bulletin
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Published: 08/12/07
As a number of fee and speed increases hits the credit card market, it is "more important than ever" that people supermarket around for a good deal, according to WhichInternet shoppers have been advised to use their credit cards for online purchases by shopsafeco
ukAccording to the work-related Pensioners Alliance, only 46 per cent of UK adults are at present members of a retirement fund schemeDes Hamilton, technical director of The Pensions Advisory Service, says that youthful people are using their savings for more immediate products like cars or holidays"Young populace want to enjoy themselves, and therefore it's the now rather than the future that takes up their notice and spare income," he said
He went on to caution that people are not considering pensions until around the age of 50 and by then it is too late to save a substantial pension financeThe administration has announced a personal account pension scheme is to come into put in 2012, which will ensure more Britons are saving towards a pension The scheme is to be give something a miss rather than opt-in which could mean more people will be saving for the prospectCredit charity CCCS research shows that more debt among 21 to 35-year-olds is in personal loans than on credit cards
It also shows the average debt
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The Shaky Mortgage Safeguard - Published:30/10/07
So you've bought a home and you've in use out a mortgage It's all going swimmingly, but have you ever consideration to stop and question how you would cope if you lost your job or cut down ill, and were unable to keep up your mortgage paymentsWould you qualify for help with your mortgage payments from the Government Should you take steps to protect your income now and ensure your mortgage is paid What are the risks concerned with such insuranceThe Department for Work and Pensions provides financial assistance to stressed homeowners in the form of Income Support Mortgage Interest (ISMI) expenditureISMI will not help you to pay off your assets debt to the mortgage lender, but it will help you to meet all or part of the interest payments you owe on your mortgageISMI may also cover the interest on loans in use out to help pay for essential repairs such as a new bathtub or toilet, or to fix your heating systemYou are only eligible for ISMI if you have been claiming income hold up, income- based jobseekers allowance or pension credit for nine months However, if you are over 60 or took out your mortgage before 2nd October 1995, dissimilar rules apply, so contact the Department for labor and Pensions to find out moreYou can only claim help with the interest payments on the first £100,000 of your mortgage borrowing The interest on any amount larger than this will have to be paid by you aloneYou are excluded from payments altogether if you have more than £8,000 of savings, or have a joint mortgage and only one of you loses your profitsUnless you are disabled, if you took out a mortgage after you started claiming benefits then you may not be eligible for any helpThe interest payments you receive may not necessarily be the interest rate you pay on your mortgage The rate is based on the store of England Base Rate plus an additional proportion, currently 158% This rate is used to tax all payments of mortgage interest and currently stands at 733% So if you disburse your lender a higher rate of interest than this, again you will have to make up any shortfall in the amount owedFor many homeowners, nine months is a very long occasion to wait, on reimbursement, to receive any help from the GovernmentSo what's the alternative Private measures you can take to prevent monetary misfortune should the worst occur include taking out a Mortgage Payment Protection Insurance Policy (MPPI)MPPI pays your journal mortgage payments for a specified period if you undergo accident, sickness, or unemployment You pay a best each month while the mortgage is running If you then need to maintain, the policy starts to disburse out (usually direct to your lender) to cover your mortgageCurrently, only one in five mortgages are insured, as sales of MPPI continue to refuse Part of the reason for this is that Payment Protection cover (PPI) for loans has received a awful rap from the media in recent years, including on The FoolAlthough MPPI is dissimilar from PPI, the pitfalls are obvious As highlighted in The Shocking Cost Of Mortgage wrap, many schemes are expensive to take out and may not always pay out when things go wrong Even when they do, MPPI expenditure normally only last for a year and can be substituted with an alternative rule, such as income protection insurance These policies tend to be more expensive but have the added benefit of not expiring after 12 monthsSo relying on the government, captivating out MPPI or income protection cover all have their drawbacks Perhaps the most excellent solution is to build up an emergency savings fund to wrap any problematic periods And if you do find yourself in trouble, the first thing you should do is talk to your lender That way, you'll have less of a chance of being caught in a Mortgage Trap© Copyright 1998-2007, The Motley Fool Limited All human rights reserved This fabric is for personal use onlyPlace of Reg: England & Wales Company Reg No: 3736872 storage bin Reg No: 735 7818.
Read More: The Shaky Mortgage Safeguard >>Pittards ditches pension scheme - Published:19/12/06
The Pittards leather firm is about to cut all links with its pension scheme and hand it over to the retirement fund Protection Fund (PPF)The Yeovil-based firm's move means 1,600 future pensioners will take delivery of only 90% of their expected pensionsPittards says the only alternative would have been to call in receivers, which might have led to its closureThe Pension defence Fund is the government-sponsored body funded by a tax on pension schemes that organises the bail-out of bankrupt occupational pension fundsLindsey Blackford, finance director of Pittards, supposed: "When it all goes through then we will have no responsibility for the pension scheme"Pittards has been tanning skin in Somerset since 1826 and once employed 2,500 employees in the UKAs well as losing money over the last few years, it has seen the deficit in its retirement fund scheme balloon to £33 million, with possessions of about £70m compared to liabilities of around £100mThe deficit grew, Pittard claims, because of persons living longer than expected and poor investment returnsReceivership was the option we presented to the PPF We supposed this is a better deal for you, and they were very supportive"This is something we have been agonising over for the last seven or eight years There has been no solution to it"The problem for Pittards is that as well as losing money in its everyday trading, it was faced with seeing its retirement fund contributions rise from £2m last year to £4-5m this year"The commerce, making the money we create, on the margins we create, cannot have enough money this" Blackford saidUnlike some employers - many of whom used fit investment income in the 1990s to take a full or biased holiday from paying pension contributions - the company had been paying full contributions for the history ten yearsIndeed, the company had taken various ladder recently to bridle in the cost of its pension provisionIt had changed the scheme from a final salary to a vocation average scheme, then stopped up it to new members and then asked members to pay senior contributionsBut on top of that, it was facing an approximate £500,000 levy to the PPF - precisely because the company and the scheme were at such far above the ground risk of going underSo Pittards told the trustees and the PPF that unless some kind of deal could be struck then receivership was the likely option, which would have left the pension system in a worse positionAfter several months of negotiations Pittards announced in demonstration that it was going into a form of bankruptcy called a Company Voluntary Administration (CVA)Under this arrangement, the firm offered to disburse off all its amount overdue - except the money it owed to the pension system, which it closed to existing membersThe deal involves the PPF taking on the system into its "holding pen" and assessing it for savePittards will pay a further £25-£3m over the next five years, tenable against the firm's Yeovil plant, over which the PPF will have a legal charge in case of defaultThe two sides have the same opinion that if the factory is sold in the next 20 years then any windfall increase, up to a ceiling of £68m, will also be waged to the PPF"Receivership was the alternative we presented to the PPF," says Mr Blackford We said this is a better deal for you They were very supportive"Now that shareholders and creditors have agreed the contract, Pittards will be free from the CVA - and can therefore continue trading as a solvent enterpriseIt will almost immediately set up a stakeholder pension system but will not make any contributions as an employerInstead, it has give its staff an extra pay go up of 35%, with the workers being left to decide for themselves if they want to put the money, plus any other contributions of their own, into the pension fundMeanwhile the firm's factory in Leeds is being shut later this day with more than 200 redundanciesAs well as shedding its pension scheme, the firm has attracted the famous Swedish investor, Peter GyllenhammarHe has bought a 65% bet in the company for just £2m, with most of that being used to create the initial payment to the PPFCurrently Pittards specialises in creation skin which is mainly bought by manufacturers of gloves and shoesOne of its biggest clientele is Footjoy, known to golf players as the world's biggest producer of golf shoes with 30-40% of the earth marketIt also makes the leather for cycling fashion accessory, military camouflaged fashion accessory and provides shoe leather for companies like MerrellBut some of their near the beginning decisions have proved controversial, with some critics proverb they are bailing out firms' managementOne such decision involved captivating a stake in the insurance broker moor Lambert in exchange for taking on its three retirement fund schemesAnother saw the Regulator allow Norwegian conglomerate Kvaerner to cut loose its retirement fund scheme here in the UK for former members of the Trafalgar home industrial groupBack in Yeovil, Lindsey Blackwood is confident the corporation, now shorn of its pension liabilities, can start to trade profitably againAnnuity improvement Women 1 Women 2 Pension human rights Divorce Work pensions Lump sums Pension Credit ice-covered pensions Shortfalls Overseas pension Small pensions Tax and retirement funds Pension repair Made simpleState retirement fund With-profits Final salary.
Read More: Pittards Ditches Pension Scheme >>Millions plan to retire to the sun - Published:12/10/06
THEIR parents' retirement vision might have involved a bungalow by the seaside and pottering about in the garden But nnear the beginning a third of Briin the direction ofns desire in the direction of move overseas when they sin the direction ofp operational, according in the direction of a novel learnThey see themselves heavy soft-in the direction ofp sports cars in southern Spain or Australia in their sixties rather than in the direction of come for a bus on the prom in EastbourneThe findings, from a pensions industry learn, add in the direction of growing evidence that the number of Briin the direction ofns leaving the country is hugeer than at any time since the 1970s They suggest both that a huge number are anxious in the direction of find warmer, more exciting and less heavily-taxed seats in the direction of live in retirement, and that many have the income in the direction of do soPaul Shelley, of Clerical Medical, the company that carried out the survey with ICM Research, supposed: 'The future retiree has huge aspirations for travel, vocation, hobbies, and for things like buying novel cars - one in six see themselves heavy sports cars However, they are also realistic about how extended they have in the direction of work in the direction of pay for their aspirations'The survey found that 30% now see themselves retiring overseas Even among those content in the direction of spend their retirement livelihood in Britain, nnear the beginning eight out of ten still desire in the direction of travel overseas, according in the direction of the Clerical Medical census, taken among 1,028 adults last monthThe number who expect in the direction of leave Britain when they finish operational is many times the moderately small proportion who in the past have made it in the direction of villas in France or apartments on the Costas The survey found that only 10% know someone of their parents' generation who has retired overseas One in four supposed they desire lives in retirement that will be nothing like those of their parents and grandparentsAlthough company pensions are no extendeder as reliable as in the past and private pensions are dependent on the presentation of the sin the direction ofck market, one in five thinks that their expects of retiring overseas are realistic and achievable Of those looking in the direction of escape overseas, 20% desire in the direction of go in the direction of Spain, 29% look elsewhere in Europe, nine% expect in the direction of go in the direction of Australia and six% would like in the direction of retire in the direction of the USMr Shelley supposed: 'We think one of the reasons for the increasing trend in the direction of retirement overseas is the increasing international mobility British people enjoy People go overseas on holiday, they are exposed in the direction of different lifestyles, and they desire in the direction of life like that permanently'The learn comes in the wake of evidence of large numbers looking in the direction of build operational lives in countries where they expect better opportunities and a better environmentLast month, Foreign place of work figures showed that nnear the beginning fivem Briin the direction ofns are livelihood overseas The Foreign place of work believes there are nnear the beginning 200,000 Briin the direction ofns livelihood in Spain, another 200,000 in France, more than 600,000 in Australia and half am in the USSince many of those operational overseas are probable in the direction of stay on when they sin the direction ofp operational, the numbers of Briin the direction ofns retiring in the direction of foreign countries will be boosted enormouslyMr Shelley supposed seven out of 10 people desire in the direction of retire before 60 but fewer than half think they will manage it 'More than half think they will keep operational up until 65 or beyond,' he addedMARIE and Arthur Ottley have had a novel lease of life since leaving Essex and moving in the direction of France 'It's the extended hot summers and the short, mild winters that we really love,' supposed Mrs Ottley'We play golf and tennis and enjoy cycling or hiking in the countryside You just go with a map and find novel seats We often take the car and visit seats, because you don't sit in traffic jams and the hotels are relatively cheap'We just went in the direction of the Dordogne and are planning in the direction of go in the direction of Brittany next month These areas used in the direction of be somewhere that you visited once a day on holiday Now we just hop in the car and go there for a few days'The couple, who quit Colchester for the village of Melle in the Cognac area of south-western France, supposed life is much more sociable in their adopted country Mrs Ottley, 63,whose spouse is aged 72, supposed: 'There are village get-in the direction ofgethers where there is a huge barbecue There is a lot more self-consciousness in England where, if you take part in these sorts of things, you feel a bit strange Over here, you feel strange if you don't take part It's a much more relaxed lifestyle in France and it's a much fuller life'Despite moving overseas, the couple, who used in the direction of sprint an insulation company, regularly see their son He lives ten notes from Stansted airport in Essex and there are cheap flights from Poitiers or La RochelleANDREA and Roy Speakman have found their money goes a lot further since they moved from Yorkshire in the direction of north-eastern Spain when they in the direction ofok near the beginning retirement three days ago 'We are on a fixed income, yet we go out in the direction of eat two or three times a week here, whereas in England it would probably have been once a month,' supposed Mrs Speakman, a 59-day-old former bank worker'Our fuel bills are a third of the price at house and council tax is €400 (about £272) We were already paying £1,000 in England three days ago'Mrs Speakman and her 60-day-old spouse, a former security guard, both pictured, sold their semi-detached house and bought a possessions in L'Escala, a small in the direction ofwn on the Costa Brava'The weather in Spain makes it much easier in the direction of go out and do things,' supposed Mrs Speakman 'We both like walking and my spouse loves cycling, which we can now do all day round Where we live is less than an hour's drive from the French border, so we often go inin the direction of the Pyrenees We are also members of two expat associations so we are a lot more sociable than we were in England'The couple are a short walk from dirty beaches and a restricted market Gerona airport is a half-hour drive away and they are 90 notes from the bustling areaal capital, Barcelona 'We have so many friends in the area we always knovel we'd retire here,' supposed Mrs Speakman 'We have only one regret - that we didn't move here sooner'Sounds huge but possessions prices in Spain appear high compared with Florida For instance a 2 bed + 2 bathroom condo located near the beach in middle Florida (Melbourne) area can still be acquired for £50000 and with a chance in the direction of let out in the direction of the restricted market (ie not just holiday lets) offsetting the mortgage repaymentsSelect a loan term 6 months 1 day 18 months 2 days 3 days 4 days 5 days 6 days 7 days 8 days 9 days 10 daysPlease choose a type of insurance existence insurance Home and contents Car Breakdown services physical condition - medical physical condition - dental Travel Pet - dog Pet - cat GO.
Read More: Millions Plan To Retire To The Sun >>