Latest news with #Opinium
The Independent
17 hours ago
- The Independent
Money experts warn of the costly mistake holidaymakers fall victim to
Holidaymakers risk unexpected expenses by relying solely on card payments abroad, with new research revealing that more than a third have found themselves caught out needing physical cash. Specifically, 39 per cent of those surveyed by the website Be Clever With Your Cash reported encountering unexpected situations where physical money was essential during their travels. The research highlighted that the most frequent instances requiring cash involved tipping, paying for taxi journeys, and shopping at smaller, independent retailers. Prepaid and specialist travel cards can make it easier to rely less on physical cash while travelling overseas. But those suddenly needing that cash could end up paying extra costs, the survey carried out by Opinium, among 2,000 people across the UK who have travelled abroad, indicates. The research found some people who had to make an emergency cash machine withdrawal on their last trip overseas were charged an ATM fee. Some people also said they turned to airport exchange desks for last-minute cash, even though they may potentially be getting a worse deal than if they had shopped around for their travel money and planned ahead. The website said that stepping outside major cities can also present challenges, as rural and remote areas in some countries could be less likely to accept cards. Amelia Murray, a money expert at Be Clever With Your Cash, said: 'There's still a blind spot when it comes to cash. Many people assume that having a fee-free card is enough, but that can be a false economy if you end up using an ATM abroad that charges or get stung by poor exchange rates. 'It's not about carrying wads of cash, it's about being prepared for those moments when a card simply won't cut it.' Ms Murray suggested packing a 'cash cushion' – a small amount of local currency that could be useful for tipping, local travel, or if holidaymakers end up somewhere that does not accept cards. She also suggested that holidaymakers make sure they understand their card's policy on fees and currency conversion before they travel. People may also want to check how much they would be covered for by their travel insurer if their cash is lost or stolen while they are abroad. Research released by financial information business Defaqto in May indicated that 91 per cent of annual and 86 per cent of single trip policies included cash cover as standard. Just over a third (35 per cent) of single trip travel insurance policies covered as much as £200 to £299, while a quarter (24 per cent) covered between £300 to £399, according to Defaqto 's analysis.
Daily Record
6 days ago
- Business
- Daily Record
Retirement expert issues warning to people paying basic rate of income tax
Workplace pensions will form the backbone of income for workers in retirement. Income tax rises for Scots in April - how the changes affect you A finance expert is warning that basic rate taxpayers are being left in the dark on their pension contributions. A survey of 1,000 people by Opinium for Hargreaves Lansdown, suggests that one in four (24%) people don't know how much they and their employer are paying into their workplace pension. The research also found that people were most likely to say they contribute somewhere between £101-200 per month (17%). Basic rate taxpayers (24%) are significantly more likely to have no idea how much money is being paid into their pension, compared to 12 per cent of higher rate and 2 per cent of top rate taxpayers. However, 57 per cent of basic rate taxpayers said they were contributing between £1-£300 from their monthly salary towards their retirement savings. Clare Stinton, head of workplace saving analysis at Hargreaves Lansdown, said: 'Auto-enrolment has got millions more people saving for retirement, but many are doing so blindly - one in four don't know how much they and their employer are paying into their pension. If you don't know what's going in, then how can you possibly know what you'll get out - and crucially, whether it'll be enough to retire on your terms?' 'Basic rate taxpayers are far more likely to be in the dark than higher earners. Yet even one in 10 of those in the 40 per cent tax bracket don't know what they're contributing. For higher earners this lack of awareness could be costly for those who need to actively claim any extra tax relief from HMRC on pension contributions. Failing to do so could mean leaving thousands of pounds on the table unclaimed. 'With fiscal drag pushing more people into higher tax bands, pensions are an increasingly powerful way to reduce your total taxable income and keep more of what you earn. It's no surprise then, that both awareness and contribution levels rise with income. The tax perks of pensions typically get more generous as you climb the income ladder, with tax relief available at your highest marginal rate.' Ms Stinton continued: 'Let's not forget employer contributions either, if you don't know what's going in, then chances are you don't know what's on offer either. Over half of basic rate taxpayers are contributing less than £300 a month, and for many the rising cost of living may mean that there is little room to stretch further. But it's worth checking if your employer offers salary sacrifice, if they do, you'll save both the income tax and National Insurance on what you pay in. 'For basic rate taxpayers that's a 28 per cent tax saving, meaning every £100 into your pension could cost you as little as £72. Some employers will even boost their contribution, if you increase yours. This is known as an employer match and can really increase the amount going into your pension.' The finance expert said the the crucial question we all need to ask ourselves is 'am I paying enough into my pension to live the life I want later on?' She explained: 'There's no one-size -fits-all answer, but the earlier you run the numbers, the greater chance you have to adjust your course. If you can afford to pay in a little more, every pound you pay in now could be the difference between scraping by in retirement or enjoying weekends away and dinners out. 'A pension calculator will do the heavy lifting, just plug in your details, and it'll project what your pot might be worth at your preferred retirement age. These tools can also model the impact of a small increase in contributions. Remember pay can change so it's important to review from time to time and make sure you're still on track.'
Yahoo
14-07-2025
- Business
- Yahoo
Do you trust your partner enough to give them money for tax purposes?
The starting pistol has been fired on tax speculation ahead of the autumn budget. The fact that cutting spending has proved so thorny makes tax rises more likely, in order to balance the books, so the debate is flowing thick and fast about where the pain could be felt, and what people can do to protect themselves. One option is for couples to plan together, and share savings and investments in order to keep their tax bill down. However, this requires some serious trust. If they share everything between them, it means both parties can take advantage of their ISA and pension allowances. If they hold anything on top of this, by splitting it, they might be able to stay within their annual tax-free allowances. If anyone other than married couples or civil partners do this, there could be tax to pay on the transfer — but if they're married, there's no immediate tax bill. Read more: How to start investing with an employee share scheme The good news is that according to research from Hargreaves Lansdown with Opinium, almost three quarters of people trust their spouse enough to share their savings and investments like this, in order to take advantage of tax rules. The more assets someone has, the more likely they are to trust their spouse with some of them — with 79% of savers and 84% of investors saying they would be happy to share assets to save tax. Higher earners are also more prepared to hand over their cash — including 82% of higher rate taxpayers. This will be influenced by the fact they have more to gain from the move. If you don't think you can trust your partner, it pays to listen to your gut, because sharing assets comes with risks. If you've handed money over, you'll have given it away entirely, so you will no longer have any control over it. Your partner will be free to make any decisions they want with it, moving investments or savings, or spending as much as they fancy. You have to ask yourself whether you're prepared to relinquish that control. Read more: How to save money on your council tax bill You also need to appreciate your position if you get divorced. You may be able to come to an agreement about division of assets, or the courts will divide your estate up in a way it believes is fair. However, that doesn't mean you'll get this money back on the grounds it was yours in the first place. Any court will prioritise need and start with equality, so might not see a significant chunk of these assets again. There's also the possibility that an estranged spouse will spend as much of the money as possible, in order to reduce your settlement. It means that while sharing your assets can be a great way to cut your tax bill and save money, it's important to think long and hard about it first. Losing a chunk of money to the taxman is bad enough, but losing all of it to a partner who turns out to be untrustworthy would be even worse. Read more: How much money do you need to retire? How to avoid finance scams on social media Why you can trust an 18-year old with their junior ISA – and how to create one
Yahoo
14-07-2025
- Business
- Yahoo
Do you trust your partner enough to give them money for tax purposes?
The starting pistol has been fired on tax speculation ahead of the autumn budget. The fact that cutting spending has proved so thorny makes tax rises more likely, in order to balance the books, so the debate is flowing thick and fast about where the pain could be felt, and what people can do to protect themselves. One option is for couples to plan together, and share savings and investments in order to keep their tax bill down. However, this requires some serious trust. If they share everything between them, it means both parties can take advantage of their ISA and pension allowances. If they hold anything on top of this, by splitting it, they might be able to stay within their annual tax-free allowances. If anyone other than married couples or civil partners do this, there could be tax to pay on the transfer — but if they're married, there's no immediate tax bill. Read more: How to start investing with an employee share scheme The good news is that according to research from Hargreaves Lansdown with Opinium, almost three quarters of people trust their spouse enough to share their savings and investments like this, in order to take advantage of tax rules. The more assets someone has, the more likely they are to trust their spouse with some of them — with 79% of savers and 84% of investors saying they would be happy to share assets to save tax. Higher earners are also more prepared to hand over their cash — including 82% of higher rate taxpayers. This will be influenced by the fact they have more to gain from the move. If you don't think you can trust your partner, it pays to listen to your gut, because sharing assets comes with risks. If you've handed money over, you'll have given it away entirely, so you will no longer have any control over it. Your partner will be free to make any decisions they want with it, moving investments or savings, or spending as much as they fancy. You have to ask yourself whether you're prepared to relinquish that control. Read more: How to save money on your council tax bill You also need to appreciate your position if you get divorced. You may be able to come to an agreement about division of assets, or the courts will divide your estate up in a way it believes is fair. However, that doesn't mean you'll get this money back on the grounds it was yours in the first place. Any court will prioritise need and start with equality, so might not see a significant chunk of these assets again. There's also the possibility that an estranged spouse will spend as much of the money as possible, in order to reduce your settlement. It means that while sharing your assets can be a great way to cut your tax bill and save money, it's important to think long and hard about it first. Losing a chunk of money to the taxman is bad enough, but losing all of it to a partner who turns out to be untrustworthy would be even worse. Read more: How much money do you need to retire? How to avoid finance scams on social media Why you can trust an 18-year old with their junior ISA – and how to create one
Daily Record
08-07-2025
- Business
- Daily Record
Pensions expert shares five steps to avoid retirement regret in later life
The New State Pension age is set to start rising from 66 to 67 next year, with the increase due to be completed for all men and women across the UK by 2028. The Pensions Act 2014 set out the timescale for the increase in State Pension age from 66 to 67 years old and will first affect those born between April 6, 1960 and March 5, 1961. Anyone born between these dates can use a handy tool on to find out the earliest point at which they'll be eligible for their State Pension. A further State Pension age increase from 67 to 68 is set to be implemented between 2044 and 2046. People born on April 6, 1960 will reach State Pension age of 66 on May 6, 2026 while those born on March 5, 1961 will reach State Pension age of 67 on February 5, 2028. Everyone affected by changes to their State Pension age will receive a letter from the DWP well in advance, however, you can check your own State Pension age online here. It's important to be aware of these upcoming changes now, especially if you have a retirement plan in place. New research from Opinium on behalf of Hargreaves Lansdown found that one in five people aged over 55 said they regretted not starting their retirement planning early enough. A further 15 per cent said they wished they had contributed more while 15 per cent said they regretted assuming they would have enough saved for later life. Some 4 per cent said they wished they had made more of their employer contribution. However, well over half (57%) of over 55s said they had no retirement planning regrets. Commenting on the findings, Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said: 'It can be easy to succumb to 'set and forget' when it comes to your pension, but this leaves you open to retirement regret later on. Getting to grips with your pension earlier in your career can save you a lot of bother. 'This was the main source of retirement regret, with one in five people aged over 55 saying they wished they got started on their pension planning earlier. Not contributing enough was a bugbear for around 15 per cent, while the same proportion said they had made an error in assuming they would have enough by the time they retired. 'The bright spot of the research was that well over half (57%) of those asked said they didn't have any retirement regrets. This could be because they have a good defined benefit pension, or it could be because they've checked in on how their pensions are doing periodically and made adjustments, as necessary.' Five steps to avoid retirement regret To help people make the most of their time now to ensure a smooth retirement, Ms Morrissey shared five simple steps to follow. Keep an eye on how your pension is doing Don't 'set and forget' your pension contributions. It's important to check in on your pensions from time to time. Use a pension calculator to see what you are on track to receive – if it's enough then great, but if not, you've got time to do something about it. Boost your contributions Auto-enrolment sets minimum contributions but these on their own may not be enough to give you the retirement you need. Taking small steps such as boosting your contributions every time you get a pay rise or new job can be a relatively painless way of increasing contributions before you get used to spending the money. Can your employer do more? Many employers will keep their contributions at auto-enrolment minimums but there are employers who are willing to do more if you increase your contributions. This is known as an employer match and can really ratchet up the amount of money going in over time. Find those lost pensions If you've had several jobs, then the likelihood is you have lost track of a pension somewhere along the way. This means there could be a pot worth thousands of pounds out there that could make a huge difference to your retirement planning. If you think you've lost track of a pension, then give the government's pension tracing service a call. All you need is the company name or that of the provider. The service can't tell you if you have a pension with them, but they can give you contact details. Find out more here. Consolidation might work Once you've tracked down your pensions, it might make sense to consolidate. Having an overarching view of what you have can be a gamechanger for your planning. You may realise you have more than you thought, and this can transform your retirement planning. For instance, you may be tempted to take small pensions as cash and spend them but by consolidating them you are less likely to do this. However, make sure you aren't incurring any unnecessary costs in consolidating such as early exit penalties. It's also worth checking that you aren't missing out on valuable benefits such as guaranteed annuity rates. It also rarely makes sense to transfer out of a defined benefit pension due to the guaranteed income on offer.
