Widows set to miss out on £3.3bn in pension income


googleplus linkedin

Widows set to miss out on £3.3bn in pension income

Savers offered 5pc interest – with a catch
Two companies that cut out banks to lend savers’ money directly to borrowers are offering returns of more than 5pc over five years. This is far better than any high street savings rate and the money can be accessed in an emergency, but the offers come with a caveat.
The Sunday Telegraph Money, p. 3

Pensions & Life Assurance

Widows set to miss out on £3.3bn in pension income
Thousands of widows will lose out on an estimated £3.3bn in retirement income over the next three years due to unfair and confusing pension rules. By 2016 about 626,000 widows or widowers will see their partners’ annuities – the product bought to provide a pension income in retirement -— swallowed up by insurers because their spouse mistakenly bought an annuity that stops paying out on death, according to figures for The Sunday Times compiled by Ros Altmann, a former pensions adviser to the Treasury.
The Sunday Times Money, p. 1

Dig out ‘forgotten’ pension paperwork to boost income
Nearly one in five workers admit they never look at their pension statements, according to research by Standard Life.
The Sunday Times Money, p. 3

Mortgages & Residential Property

Help to buy as lenders embark on price war
Prospective buyers with small deposits are benefiting from a price war among mortgage lenders, say brokers, after the last of the major high street banks launched its 95% deal under Help to Buy.
The Observer, p. 49

Osborne warned on Help to Buy
One of the leading players in the British housing market has said that the Government should abandon its Help to Buy mortgage support scheme in London. Nigel Wilson, the chief executive of the insurance and investment giant, Legal & General, said that the scheme risked stoking a price bubble which would put homes out of the reach of all but the most affluent.
The Sunday Telegraph Business, p. 1

‘Co-op Bank is forcing me on to a more expensive mortgage’
Thousands of borrowers who took shared-equity mortgages from the Co-operative Bank are being forced on to high interest rates, The Sunday Telegraph has learnt.
The Sunday Telegraph Money, p. 5

Drought warning
Property prices may be recovering, but in many parts of the country the supply of homes for sale has slowed. This picture of an acute housing drought is confirmed by figures compiled for The Sunday Times by the property website Rightmove, pinpointing the areas and home types where there is a particular shortage.
The Sunday Times Home, p. 4-5-6-7

Check those hidden costs of mortgage incentives
Mortgages with free add-ons may be more trouble than they’re worth.
The Independent on Sunday, p. 62-63

The 43 areas where homes cost £1million
Average house prices have surged beyond the £1m mark in almost 50 areas of the country.
The Sunday Telegraph, p. 1-4

Retail Banking

Metro raises another £400m
Metro, the new high street lender, has raised nearly £400m of fresh funding ahead of a London float in 2016. The cash is thought to have come from existing investors, which include the fund manager Fidelity, the hedge fund Moore Capital and the billionaire Reuben brothers. The £388m fundraising values the four-year-old bank at £770m.
The Sunday Times Business, p. 3

Barclays cuts services for rich clients
Hundreds of wealthy customers of Barclays’ private banking division have been warned that they face a sharply reduced quality of service and may wish to move to a rival adviser. Barclays has sent a series of letters to those affected. Customers who received a letter dated December 14 have until tomorrow to move their accounts at no cost. The Sunday Times understands, however, that the charge may continue to be waived for up to 90 days.
The Sunday Times Money, p. 6

Round Up

Taxpayer could lose £10bn on RBS sale
Senior RBS figures have told the Sunday Telegraph that taxpayers face a loss of up to £10bn when the bank is privatised.
The Sunday Telegraph, p. 5

RBS set for US windfall
The flotation of Royal Bank of Scotland’s US business will release over $3bn (£1.8bn) capital windfall that has been trapped on the other side of the Atlantic since the height of the financial crisis more than five years ago.
The Sunday Telegraph Business, p. 2

‘Bank likely to delay interest rate rise because of wage growth fears’
The Bank of England is unlikely to raise interest rates until 2015 despite unemployment falling below the key 7pc trigger for a review, according to the EY accountancy firm. In his “forward guidance”, Mark Carney, the Bank’s Governor, said that unemployment falling to 7pc would trigger a review of interest rate levels, which are at record lows.
The Sunday Telegraph Business, p. 1-2

Over 100,000 customers of Britain’s largest fund supermarket may be worse off under its new charging structure, which could trigger a price war. Hargreaves Lansdown, whose Vantage platform has 520,000 clients and £39bn of assets, plans a radical overhaul of fees ahead of new regulations in April, which will ban such websites from receiving commission from fund managers.
The Sunday Times Money, p. 7

On the up
The World Bank says the global economy has now reached a turning point and will be getting stronger over 2014.
The Sunday Times News Review, p. 7

The above articles appeared on 19.01.2014. Reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Lifestyle Financial Planning, Thornbury, Bristol BS35 2FN.

Committed to improving financial awareness