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Daily Mirror
4 days ago
- Business
- Daily Mirror
EU country paying the highest pension and it's £8,000 more than the UK
Dreaming of retiring already? A stunning country just a couple of hours from the UK has one of the highest paying pensions in Europe - but there are several big catches Million of Brits could see a huge boost to their retirement, after HM Treasury unveiled plans to double the number of UK pension megafunds by 2030. As previously explained, this is where smaller local authorities and private workplaces come together, with the aim that bundling larger funds will result in a much greater return. The government states these changes will 'drive more investment directly into the UK economy for new homes and promising scale-up businesses'. "With over £50 billion secured through the recent voluntary commitment from pension funds to invest five percent of assets in the UK and new local investment targets for Local Government Pension Scheme authorities," HM Treasury added. "This tackles the gradual decline in domestic investment from UK pension funds, where around 20 per cent of Defined Contribution assets are currently invested compared to over 50 per cent in 2012." For now, Brits on the State Pension will receive just £230.25 a week (£11,973 per year) as long as they have enough qualifying years of National Insurance (NI). If your NI record started after April 2016, you will need 35 qualifying years to get the full rate of the New State Pension. But in comparison to nearby countries, the UK's state pension seems mediocre at best. According to the Organisation for Economic Cooperation and Development (OECD) - as of 2022 - the full basic pension in Iceland is valued at ISK 3,439,428, equivalent to 31 per cent of average worker earnings. This roughly converts to £20,063.08 per year - more than £8,000 compared to the UK state pension. "There is an annual allowance of ISK 300,000 (£1,751.11) for exempt income, equivalent to three per cent of average earnings," OECD added. "Above this allowance, the basic pension is withdrawn at a rate of 45 per cent against income from pension funds. It is also withdrawn at 45 per cent against employment income but only after employment income is above ISK 2,400, 000 (£14,011) in addition to the allowance. There is also an annual holiday payment of ISK 106,765 (£623) which is withdrawn at two per cent above the income limits." However, the State Pension age is currently 66-year-old for men and women in the UK - although it is slated to increase to 67 by 2028 - whereas the normal pension age in Iceland is already 67 (except for seamen who have been working for more than 25 years in the occupation, who can retire at 60). If you claim your basic pension in Iceland before you reach 67, your funds will be reduced by 6.6 per cent for each year that the pension is claimed early. Iceland also has a pension supplement which is applicable for single pensioners. The maximum value of this benefit is ISK 869,124 (£5,0712) per year, some eight per cent of average earnings. This benefit is withdrawn at 11.9 per cent, subject to the same thresholds as the basic pension. If you're tempted to ditch Britain for Iceland, you may want to think twice, as you can only receive the full basic pension if you have 40 years of residency. While Iceland's pension may seem extremely generous, it is worth considering that the cost of living here is around 40-50 per cent higher than in the UK. This means you'd be spending almost double on your weekly food shop, property, and basic goods.
Fashion United
19-05-2025
- Business
- Fashion United
UK to enact new regulations on ‘wild west' BNPL industry
The UK government has outlined plans to regulate the operations of buy now, pay later (BNPL) firms as it aims for more transparency among the industry. The HM Treasury said BNPL firms will need to follow 'consistent standards', including upfront checks, to ensure shoppers can repay what they borrow. The plans also detail 'fairer and faster access to refunds' and 'the right to complain to the Financial Ombudsman', aligning BNPL with other credit providers. The government stated that such changes intend to boost consumer confidence while also giving firms the certainty needed to grow and invest. In a release, Emma Reynolds, economic secretary to the Treasury, said: 'BNPL has transformed shopping for millions, but for too long has operated as a wild west - leaving consumers exposed. These new rules will protect shoppers from debt traps and give the sector the certainty it needs to invest, grow and create jobs through our Plan for Change.' Reynolds' comment comes in response to the consultation on BNPL, first announced in October 2024. The government has further confirmed that the legislation bringing BNPL into regulation will be laid in Parliament on May 19. The government had initially outlined draft legislation looking to regulate BNPL credit in 2023, after it was determined that the sector could be harmful to consumers and currently remains largely unregulated in the UK, lacking affordability checks on its offering of short-term loans. The latest update aligns with new reforms to the Consumer Credit Act, which will replace the old regime with a 'pro-growth framework that reflects how people borrow today'. The FCA's 'more flexible' system will come into focus instead.
Wales Online
03-05-2025
- Business
- Wales Online
Premium Bonds results in Wales see 125 people get huge payouts
Premium Bonds results in Wales see 125 people get huge payouts The UK-wide May prize fund was a huge £413m and in Wales 125 people won £5,000 or more with two people each bagging £100,000 Dozens of lucky people in Wales have scooped more than £1.8m in prizes in the Premium Bonds draw for May. The big winners included two people who won £100,000, 12 who received a cheque for £50,000, another 16 who claimed £25,000, while 37 won £10,000 and a further 58 received £5,000. A huge £1.8m was won in Wales this month by those 125 people with an average winning of £14,880. The UK-wide Premium Bonds prize fund for May stood at £413m, with two lucky winners, from Derbyshire and Suffolk, each scooping jackpot prizes worth £1m. More than 5.9m prizes were handed out this month with the prize fund rate standing at 3.8%. For money-saving tips sign up to our Money newsletter here . Andrew Westhead, NS&I retail director, said: "We're thrilled to congratulate our two newest millionaires from Derbyshire and Suffolk this month, each receiving a life-changing £1m jackpot. "May has been incredibly rewarding for Premium Bonds holders across the country with over 5.9m prizes worth more than £413m paid out including 79 winners who are now £100,000 better off. "Checking if you've won couldn't be simpler. Just use our prize checker app or visit our website." Article continues below How to check if you've won Premium Bonds prizes Winners should receive an email or text from NS&I if they win but those who hold Premium Bonds can also check through the NS&I website or the prize checker app. On the NS&I website holders will need their Premium Bonds holders' number and on the app they will need either that or their NS&I number. Any unclaimed prizes will also be visible. There are currently, 2,547,426 Premium Bonds prizes worth more than £97m waiting to be claimed. How do Premium Bonds prize draws work? For every £1 bond customers are entered into a monthly draw with opportunities to win tax-free prizes from £25 to £1m. Holders must have a minimum investment of £25. Premium Bonds don't pay interest but offer the chance of winning tax-free prizes and savings backed by the HM Treasury. There are three values of prize bands, known as higher, medium and lower, and each band gets a percentage share of the monthly prize fund. Article continues below In the high band prizes range from £1m to £5,000 and the medium and lower bands give holders the opportunity to win between £1,000 and £500 and £100 and £25 respectively. The Mirror recently reported that a new freedom of information (FOI) request revealed nearly two-thirds of Premium Bondsholders have never won a prize.
Business Mayor
30-04-2025
- Business
- Business Mayor
The UK seaside town with no banks where locals told ‘don't use cash'
A local business owner has spoken of how she has had to urge customers not to use cash after all banks disappeared from her town. Monica Hardman, the owner of Shoreham Knitting and Needlecraft in Shoreham, West Sussex, that all branches had now gone, and it would be too hazardous to continue non-card payments. The town does, however, still have a Post Office and a banking hub. 'Originally, we had six banks in our town, and our own HSBC closed over eight years ago,' she told BBC Radio 4's Today programme this morning. 'I opened three bank accounts, one after the other trying desperately to operate cash, and gradually all these banks closed, until last year we had none. So a banking hub opened at the end of our high street in March of last year. I looked at the situation again, but decided that it was too dangerous. One of the reasons was that it was too dangerous for a member of staff to walk down the road on a regular basis, five minute walk, carrying large amounts of cash.' Ms Hardman added: 'Our last bank that closed early last year was actually next door to us.' When asked if she felt like she was missing out on income by paying charges for card transactions, she replied: 'No. Our debit cards are 1.37%, we're charged, and most people use debit cards. Credit cards are under 1%. 'Cash, if it's paid in, is 1.5% of total money paid in.' The programme had another business owner, Katie Jones, of Katie's Cakes in Wolverhampton, who was championing cash payments. She described how she used the cash she earned in her shop to purchse goods from other local businesses, and that some of her customers simply did not want to use digital payments. These include low-income individuals who find it easier to keep track of their finances if they have physical change or notes. Ms Hardman said that only about 25% of her total take was cash, adding: 'If someone is actually stuck, we do actually help them, and we have paid ourselves with a credit card, or a debit card, and they've given us the cash.' It comes as a Treasury Committee of MPs warns that businesses could need to be forced to accept coins and banknotes in order to make sure that the UK does not drift into a loss of cash acceptance for those who rely on it. A report said: 'There may come a time in the future where it becomes necessary for HM Treasury to mandate cash acceptance if appropriate safeguards have not been implemented for those who need physical cash, and the level of cash acceptance begins to lead to widespread detriment. 'To ensure that HM Treasury has the information it needs to make this decision, cash acceptance levels in the UK must be monitored to ensure we do not sleepwalk into a loss of cash acceptance for those who need it. 'HM Treasury must provide the Treasury Committee with annual reporting on cash acceptance levels and provide an analysis of HM Treasury's view of the tolerable level of cash acceptance in society.' Read More Households urged to take meter readings as Ofgem price cap drops READ SOURCE
BBC News
30-04-2025
- Business
- BBC News
Shops could be forced to accept cash in future, MPs warn
BBC Shops and services may have to be forced to accept cash in the future to help protect vulnerable people who rely on it, MPs have said. A Treasury Committee report into cash acceptance stopped short of recommending a change in the law, but said the government had to improve its monitoring of the issue. "There may come a time in the future where it becomes necessary for HM Treasury to mandate cash acceptance if appropriate safeguards have not been implemented for those who need physical cash," the report said. Some countries, such as Australia or parts of the EU, are planning requirements to accept cash for essential services in some circumstances. Poverty premium In evidence to the inquiry, a government minister said there were no plans to make cash acceptance mandatory. Shops and services can currently accept whichever form of payment they want. With an increasing number going card-only, the committee said prices would rise for essential goods and services in the remaining outlets that accepted cash. That would create a poverty premium for those who wanted to use cash to budget, as well as for vulnerable groups such as people with learning difficulties and the elderly. "A sizeable minority depend on being able to use cash," said Dame Meg Hillier, who chairs the influential Treasury Committee. She said the report should be a "wake-up call" about the risks of ignoring those affected by the falling use of banknotes and coins. The committee called on the government to "vastly improve" monitoring and reporting of cash acceptance levels. Otherwise it warned it risked people being excluded from leisure centres, theatres or public transport. It also heard evidence about frustrated motorists unable to pay by cash in car parks. "The government is in the dark on how widely cash is being accepted and that is completely unsustainable," said Dame Meg. There was particular concern for victims of domestic and economic abuse who need cash to avoid being traced through card transactions or to gain financial independence from abusive partners. 'Cash or card, madam?' The committee's report is one of the most significant developments in the debate over the future of notes and coins since the Access to Cash Review, published in 2019 which called for urgent action on the viability of cash. Among this latest report's findings is a conclusion that for some businesses, such as market stallholders, cash remains fundamental to the preservation of their trade. There has been a market in Epsom, Surrey, for centuries - but it is only in recent years that traders have seen the majority of shoppers switch to electronic payments. Chris Ilsley has been running his plant stall - CI Plants - on the market for 13 years. When he started it was 100% cash, now it is 70% to 80% card payments. Speaking surrounded by geraniums, he said he was happy to take any form of payment, although card was slightly easier albeit slower to process. "We'll take anything," the 47-year-old said. "I prefer the older generation to use card and put their purse away [for safety]." Over at The Fruit Machine greengrocer stall, Tom Cresswell also has a long line of customers, and he said most paid by card. "The youngsters don't ever pay by cash; they pay with their phones and their watches," the 52-year-old said. "The older gentlemen tend to use cash. Whatever is easier for the customer." The report comes as the Post Office announced a renewed deal with banks to ensure customers can access basic banking services at post office counters. The deal, which runs until the end of 2030 allows customers of 30 banks and building societies to use their local post office to withdraw and deposit cash, make balance queries and deposit cheques. Some campaigners have called for cash acceptance to be enforced by the law now. Ron Delnevo, from the Payments Choice Alliance, said he was disappointed about the "procrastinating approach" of the committee. BBC viewers and readers have also sent in numerous views in support of cash, particularly saying it helps you budget. The Treasury said the government was committed to seeing 350 banking hubs in place. "We welcome businesses who do want to continue accepting cash and new rules introduced by the Financial Conduct Authority support this by helping them to make deposits," a spokesman said. Sign up for our Politics Essential newsletter to keep up with the inner workings of Westminster and beyond.
