Latest news with #HargreavesLansdown
Yahoo
a day ago
- Business
- Yahoo
Are you saving smartly? Top pension advice experts want you to hear
With the cost of living rising in recent years, many Brits are struggling to put money aside for retirement. At the same time, life expectancies are rising, meaning that the need to save is becoming ever more pressing. According to a survey from YouGov, 38% of UK respondents aren't currently saving towards retirement. Around 28% are saving up to 10% of their annual income for old age, while 22% don't know how much they're currently putting aside. While many Brits are wrapped up in immediate financial pressures, experts say it's important to engage with pension planning as soon as possible. Saving even a little, and knowing how to manage that money, can make a big difference further down the line. Here are some top tips to build your pension, collected from conversations with financial advisors. While our focus is on UK pensions, international readers can read more about other European schemes here. This one may seem obvious, but it's worth reiterating. The more money you put into your pension pot, the more likely you are to have a stellar retirement income. If you contribute when you are young, it also means that your investments — in the case of a personal or workplace pension — have time to grow. 'One key way of boosting your pension is to try and increase your contributions wherever possible,' Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, told Euronews. One way to do this, she explained, is by boosting contributions every time you get a payrise. 'You aren't used to having the extra money in your pocket so it's easier to portion some of it to go into your pension,' Morrissey explained. In the UK, most employees are automatically enrolled in a pension scheme. Generally, you will pay 5% of your wages into your pension pot, and your employer must make a contribution worth at least 3% if you earn over £6,240 a year. 'Auto-enrolment minimum contributions are set at 8% - this is a good start but ideally you need to be contributing more to get a good retirement income,' said Morrissey. She explained that some employers will offer more generous rates than 3%, sometimes matching your contribution level. Related Boom or bust? Economic impact of ageing populations and lower birth rates Can't wait to give up work? Why some people are not the retiring type Another option on the table is a salary sacrifice scheme. Your employer may let you reduce your wages or bonuses and instead allow you to funnel this money into a pension, topped up by employer contributions. As well as paying less income tax on this money, this also means that you and your employer will pay lower National Insurance contributions. Staying on top of your pension plan is an important part of building a nest egg, said Claire Trott, divisional director of retirement & holistic planning at SJP. 'Once a year — as a bare minimum — work out what you've got, what you're likely to get, and whether it will be enough for retirement,' she explained. When it comes to private and workplace investments, one way to engage is by carefully choosing where your contributions are invested. Workplace contributions will be placed in an average fund designed to suit all employees, which may not necessarily be your best option. 'The default fund might suit what you want to do. But for the majority of people, it's just okay. And you might be able to do something more with your money,' said Trott. Saving for retirement doesn't have to simply revolve around a pension fund, as there are lots of different products on offer. 'Pension savers can also utilise their tax-free ISA allowance to run alongside their pension,' Lucie Spencer, partner in financial planning at Evelyn Partners, told Euronews. 'Money invested … can grow free of tax on income or gains, which is ideal for retirement saving. Take note, however, pension saving effectively increases your basic rate tax band to reduce income tax whereas savings into an ISA are withdrawn from net income.' In other words, withdrawals from ISAs are tax free but the money put in is taxed. The age when you can access your state pension — which is separate from the workplace pension and built up through National Insurance contributions — is currently 66. For those born after 6 April 1978, it will be 68 years old. On the other hand, you can currently take a private pension, including some workplace pensions, from age 55. This will increase to age 57 from April 2028. Unless you need to, many advisors warn against taking your pension until you need it, as leaving it untouched allows the investments to grow. On top of this, taking your pension while earning can push you into a higher tax band — and you also don't want to risk running out of money. It's now very uncommon for people to stay with one company for their whole career, although job hopping has consequences for retirement planning. When you start a new job, your workplace pension doesn't automatically follow you. This means you can choose to keep your old pot separate from your new one, or you can consolidate it. 'Consolidation does mean admin is a lot easier when you want to start taking your pension, as it's all in one place,' said Claire Trott. Related Why are Gen X workers in the UK so pessimistic about retirement? Swiss officials admit to three billion-franc pension blunder Even so, she explained that grouping pension pots means you may lose out on scheme-specific perks. 'One particular scheme may be better than another one. So if you've got an old scheme, anything pre-2006, they can have really great benefits that you wouldn't have in one started today because of legislation changes,' she said. Evelyn Partner's Lucie Spencer also advised people to look into 'carry forward' rules, which allow savers to access unused tax relief from the last three tax years. You're only allowed to pay a certain amount into your pension each year before normal income tax rates kick in. The standard annual allowance for the 2025/26 tax year is £60,000, but 'carry forward' rules mean that this can be topped up in some cases. 'A large bonus, for example, can be put to work in a pension, with a saver potentially able to make a gross pension contribution of up to £220,000 before the end of this tax year on April 5, 2026, if they have not used any of their pension allowances from the previous three years,' Spencer told Euronews. Finally, experts said it's important not to forget about your state pension — although you won't be managing investments in this case. The amount of money paid out by a state pension is determined by a saver's level of National Insurance contributions, which depends on how many 'qualifying' years you've worked. To get the full amount, you need to have accumulated 35 qualifying years, and you need to have at least 10 years to get anything at all. 'Checking your state pension entitlement on the HMRC app for any gaps in your record is important,' explained Lucie Spencer. 'While the deadline to plug gaps all the way back to 2006 has now passed, there is still an option to pay for missing years over the past six years. Buying back missed years can be a great way for people to bolster retirement income as the state pension provides a guaranteed monthly income for the duration of your retirement,' she said. While the state pension typically requires less management than workplace and private pensions, it's still a key part of retirement planning. 'A reminder, the information in this article does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances. Also remember, we are a journalistic website and aim to provide the best guides, tips and advice from experts. If you rely on the information on this page then you do so entirely at your own risk.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Are you saving smartly? Top pension advice experts want you to hear
With the cost of living rising in recent years, many Brits are struggling to put money aside for retirement. At the same time, life expectancies are rising, meaning that the need to save is becoming ever more pressing. According to a survey from YouGov, 38% of UK respondents aren't currently saving towards retirement. Around 28% are saving up to 10% of their annual income for old age, while 22% don't know how much they're currently putting aside. While many Brits are wrapped up in immediate financial pressures, experts say it's important to engage with pension planning as soon as possible. Saving even a little, and knowing how to manage that money, can make a big difference further down the line. Here are some top tips to build your pension, collected from conversations with financial advisors. While our focus is on UK pensions, international readers can read more about other European schemes here. This one may seem obvious, but it's worth reiterating. The more money you put into your pension pot, the more likely you are to have a stellar retirement income. If you contribute when you are young, it also means that your investments — in the case of a personal or workplace pension — have time to grow. 'One key way of boosting your pension is to try and increase your contributions wherever possible,' Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, told Euronews. One way to do this, she explained, is by boosting contributions every time you get a payrise. 'You aren't used to having the extra money in your pocket so it's easier to portion some of it to go into your pension,' Morrissey explained. In the UK, most employees are automatically enrolled in a pension scheme. Generally, you will pay 5% of your wages into your pension pot, and your employer must make a contribution worth at least 3% if you earn over £6,240 a year. 'Auto-enrolment minimum contributions are set at 8% - this is a good start but ideally you need to be contributing more to get a good retirement income,' said Morrissey. She explained that some employers will offer more generous rates than 3%, sometimes matching your contribution level. Related Boom or bust? Economic impact of ageing populations and lower birth rates Can't wait to give up work? Why some people are not the retiring type Another option on the table is a salary sacrifice scheme. Your employer may let you reduce your wages or bonuses and instead allow you to funnel this money into a pension, topped up by employer contributions. As well as paying less income tax on this money, this also means that you and your employer will pay lower National Insurance contributions. Staying on top of your pension plan is an important part of building a nest egg, said Claire Trott, divisional director of retirement & holistic planning at SJP. 'Once a year — as a bare minimum — work out what you've got, what you're likely to get, and whether it will be enough for retirement,' she explained. When it comes to private and workplace investments, one way to engage is by carefully choosing where your contributions are invested. Workplace contributions will be placed in an average fund designed to suit all employees, which may not necessarily be your best option. 'The default fund might suit what you want to do. But for the majority of people, it's just okay. And you might be able to do something more with your money,' said Trott. Saving for retirement doesn't have to simply revolve around a pension fund, as there are lots of different products on offer. 'Pension savers can also utilise their tax-free ISA allowance to run alongside their pension,' Lucie Spencer, partner in financial planning at Evelyn Partners, told Euronews. 'Money invested … can grow free of tax on income or gains, which is ideal for retirement saving. Take note, however, pension saving effectively increases your basic rate tax band to reduce income tax whereas savings into an ISA are withdrawn from net income.' In other words, withdrawals from ISAs are tax free but the money put in is taxed. The age when you can access your state pension — which is separate from the workplace pension and built up through National Insurance contributions — is currently 66. For those born after 6 April 1978, it will be 68 years old. On the other hand, you can currently take a private pension, including some workplace pensions, from age 55. This will increase to age 57 from April 2028. Unless you need to, many advisors warn against taking your pension until you need it, as leaving it untouched allows the investments to grow. On top of this, taking your pension while earning can push you into a higher tax band — and you also don't want to risk running out of money. It's now very uncommon for people to stay with one company for their whole career, although job hopping has consequences for retirement planning. When you start a new job, your workplace pension doesn't automatically follow you. This means you can choose to keep your old pot separate from your new one, or you can consolidate it. 'Consolidation does mean admin is a lot easier when you want to start taking your pension, as it's all in one place,' said Claire Trott. Related Why are Gen X workers in the UK so pessimistic about retirement? Swiss officials admit to three billion-franc pension blunder Even so, she explained that grouping pension pots means you may lose out on scheme-specific perks. 'One particular scheme may be better than another one. So if you've got an old scheme, anything pre-2006, they can have really great benefits that you wouldn't have in one started today because of legislation changes,' she said. Evelyn Partner's Lucie Spencer also advised people to look into 'carry forward' rules, which allow savers to access unused tax relief from the last three tax years. You're only allowed to pay a certain amount into your pension each year before normal income tax rates kick in. The standard annual allowance for the 2025/26 tax year is £60,000, but 'carry forward' rules mean that this can be topped up in some cases. 'A large bonus, for example, can be put to work in a pension, with a saver potentially able to make a gross pension contribution of up to £220,000 before the end of this tax year on April 5, 2026, if they have not used any of their pension allowances from the previous three years,' Spencer told Euronews. Finally, experts said it's important not to forget about your state pension — although you won't be managing investments in this case. The amount of money paid out by a state pension is determined by a saver's level of National Insurance contributions, which depends on how many 'qualifying' years you've worked. To get the full amount, you need to have accumulated 35 qualifying years, and you need to have at least 10 years to get anything at all. 'Checking your state pension entitlement on the HMRC app for any gaps in your record is important,' explained Lucie Spencer. 'While the deadline to plug gaps all the way back to 2006 has now passed, there is still an option to pay for missing years over the past six years. Buying back missed years can be a great way for people to bolster retirement income as the state pension provides a guaranteed monthly income for the duration of your retirement,' she said. While the state pension typically requires less management than workplace and private pensions, it's still a key part of retirement planning. 'A reminder, the information in this article does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances. Also remember, we are a journalistic website and aim to provide the best guides, tips and advice from experts. If you rely on the information on this page then you do so entirely at your own risk.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Sun
2 days ago
- Business
- The Sun
Stocks diverge as Trump tariffs go through the courts
LONDON: Stock markets and dollar trades diverged Friday as investors assessed the outlook for US President Donald Trump's sweeping tariffs, which are under scrutiny by US courts. In the latest turn, a US appeals court on Thursday allowed Trump to temporarily keep his aggressive tariffs in place, a day after the US Court of International Trade barred most of the levies launched since he took office. That news saw Asian markets reverse gains as analysts warned that legal wrangling could add to volatility and throw uncertainty into trade talks between Washington and other governments. Hong Kong and Tokyo stocks were down more than one percent each by the close, while Shanghai also sank. European markets fared better, with London, Paris and Frankfurt all rising near the day's half-way mark. 'When it comes to global trade right now the only certainty is uncertainty,' said Derren Nathan, head of equity research at Hargreaves Lansdown. 'Just a day after US courts halted the lion's share of Trump's recent tariff increases, judges have temporarily reinstated the new border taxes. Little wonder markets are struggling for direction,' he added. The dollar gained against the euro and pound but fell versus the yen. The Japanese currency strengthened after figures showed May inflation in Tokyo -- a barometer for the rest of Japan -- came in above forecasts, ramping up expectations the country's central bank will hike interest rates in July. Oil prices rose Friday as traders turned their focus to Saturday's meeting of eight OPEC+ members, which are set to decide production quotas for July. Elsewhere in Europe, data showed that inflation in Spain dipped below the European Central Bank's two percent target, bolstering the case for more interest rate cuts in the eurozone. Investors are also looking ahead to the latest figures for the US Federal Reserve's preferred inflation measure, the PCE, for signs of the health of the world's largest economy amid tariffs. While the tariffs are set to go through the courts -- and possibly end up at the Supreme Court -- there are expectations the US president will find other means to implement them. The US Court of International Trade ruling on Wednesday barred most of the tariffs announced since Trump took office, saying that he had overstepped his authority -- a decision he labelled 'horrible' and said should be 'quickly and decisively' reversed. A separate ruling by a federal district judge in Washington also found some levies unlawful as well, giving the administration 14 days to appeal. Observers said the latest developments have led to speculation about trade negotiations, including those between the United States and European Union, and a deal it has already struck with Britain. Meanwhile, US Treasury Secretary Scott Bessent told Fox News that negotiations with China were 'a bit stalled' and Trump might need to speak to President Xi Jinping, weeks after the economic superpowers agreed a detente in their trade war. All three main indices on Wall Street ended slightly higher on Thursday, with sentiment also dented by data showing the US economy contracted in January-March, albeit at a slower pace than first thought. Disappointing readings on jobless benefits and pending home sales added to the more downbeat mood, with investors also on edge over elevated bond yields and Trump's plans to ramp up the budget deficit.
Daily Mail
3 days ago
- Business
- Daily Mail
Hargreaves Lansdown boss Dan Olley to step down after less than two years
Hargreaves Lansdown boss Dan Olley has announced his departure less than two years after taking the helm at Britain's biggest investment platform. It comes two months after a private equity consortium including CVC Capital Partners, Nordic Capital and the Abu Dhabi Investment Authority completed a £5.4billion acquisition. Olley will remain in place for a three-month handover period and be replaced on an interim basis by Hargreaves director Richard Flint, a former boss of Sky Bet. Hargreaves manages assets of more than £157billion for its 1.9m clients. Founded in 1981, it floated in 2007, and lately has faced competition from the likes of AJ Bell and Interactive Investor.
The Sun
3 days ago
- Business
- The Sun
Customer fury as UK's favourite chocolate's £1.40 multipack shrinks meaning it's cheaper to buy a single 30p bar
PACKS of Freddos have shrunk from five to four — making the family favourites cheaper to buy individually. The new smaller multipacks still cost £1.40 at Tesco, meaning the price of each chocolate bar has gone from 28p to 35p. Meanwhile, single ones cost about 30p. 2 Experts have blamed the move — equivalent to a 25 per cent price increase — on the soaring cost of cocoa. But customers on the Tesco website said it was just another example of shrinkflation. One wrote: 'A single Freddo is 30p and pack of Freddos used to be a 5 pack but now a 4 pack is £1.40. "Make it make sense.' Another said: 'Cheaper to buy 4 bars separately, used to get 5 bars at this price.' Tesco and Waitrose are the first to stock the new packs, with Waitrose offering them for a promotional price of £1, down from £1.80. Other supermarkets still have the five-packs in stock. energy and transport. Susannah Streeter, of investment company Hargreaves Lansdown, said: 'The sharp rise in the cost of cocoa, which is such a crucial ingredient, has caused a big headache for chocolate manufacturers. 'They have also had to absorb higher energy costs and wage growth. People are only just realising why Dairy Milk chocolate and Freddos taste different - and they're saying one is MUCH tastier 'But producers know consumers will not swallow much bigger increases. "Though wholesale prices have come down slightly, they remain triple the price compared to two years ago. 'So, reducing the numbers of bars in packs or the weight of individual products is the strategy they are deploying.' Harvir Dhillon, economist at the British Retail Consortium, said: ' Chocolate prices, which are largely decided by large manufacturers, have been hit hard by global cocoa prices. 'The cost of cocoa has been badly affected by poor harvests in parts of Africa.'
