Latest news with #RoyalLondon
The Independent
6 days ago
- Business
- The Independent
National Financial Awareness Day: Expert tips to take control of your money
SPONSORED BY TRADING 212 The Independent Money channel is brought to you by Trading 212. Talking about money is still taboo in the UK. However, one in three adults experiences anxiety about their finances, while one in ten has no savings. Both are things we need to change. So, to get the conversation going, on National Financial Awareness Day, we're offering our top tips on how to become more financially resilient - and where you can seek help if you're struggling. 'Silence breeds anxiety' Sarah Pennells, Royal London's consumer finance specialist, says 'silence breeds anxiety' and encourages people to have 'open honest conversations' as a first meaningful step towards change. 'Too often, we treat money like a taboo topic, especially in families or communities where cash is tight,' she adds. 'On Financial Awareness Day, let's talk not just about numbers, but about how money makes us feel. Financial wellbeing and mental health are deeply connected – and that's a conversation we need to normalise.' In its latest financial resilience report, Royal London found that mid-lifers (aged 30-49) report lower satisfaction with their standard of living than any other age group. Nearly half (46 per cent) of adults in this age group also said thinking about household finances makes them anxious, but this figure rises to a full 50 per cent for adults aged 18-29. Younger people are more likely to talk about money While about three in five people over 65 talk about their money openly, this rises to almost nine in ten for 18-24 year olds, which is an encouraging trend. But the report also highlighted the significant rise in single-person households, which are more vulnerable to rising costs such as a sudden increase in energy bills. Surprisingly, even among higher-income households earning between £50,000 and £150,000 anually, almost one in four (22 per cent) still needed to prioritise repaying debts over saving more, while 33 per cent said higher bills prevented them from saving more. 'Stress about money can affect sleep, relationships, self-worth, and overall health,' explained Ms Pennells. 'And for those living paycheck to paycheck or managing debt, the emotional toll can be even greater. That's why financial resilience isn't just about having a safety net, it's about feeling confident in your ability to navigate life's financial ups and downs.' Expert tips to gain financial resilience The best way to become financially resilient is to try to stay in control of your money, wherever possible. That might seem easier said than done, but once you begin you'll be surprised at how fulfilling it feels - and that can give you confidence to continue. Here are a few ways to get started: 1. Cancel any unused subscriptions (or those you can live without) Research from Citizens Advice last year revealed that people spend £688m on subscriptions they never use. Many are renewed automatically after a free trial period, often because people forget to cancel. HSBC research shows that the average Brit can save just over £400 a year by cancelling subscriptions. 2. Switch to a better savings account Although interest rates have dipped a little, some Cash ISA providers are still offering above-inflation rates of 4 per cent or more, including Plum and Trading 212. One of the main benefits of Cash ISAs compared to other savings accounts is that there's no tax to pay on any interest you earn. 3. If you can afford to, consider investing Most people in the UK don't invest. However, over a long time period, the stock market generally delivers much better returns than cash savings, outperforming it nine out of ten times for every 10-year period since the 19th century. Long-term investing can help you build your savings pot and become more financially resilient later in life. Before you dip your toes into investing, it's important to have an emergency cash fund that covers at least three months of living expenses. 4. Check if you can get a better energy tariff You may be paying more for your energy than you should. Luckily, the average annual household energy bill has fallen by around 7 per cent. But you should still check if you could save money by switching to a fixed-rate energy deal. Switching shouldn't take longer than five working days, and if you're unhappy with your new provider, you still have a 14-day cooling off period if you want to switch back. Just remember to pay any outstanding bills from your previous and/or new suppliers. 5. If you're struggling, there are free confidential services that can help Citizens Advice, StepChange Debt Charity, and National Debtline offer guidance on budgeting, repayment plans and how to access emergency support. Speaking to your bank or utility provider as early as possible can also make a difference. They may be able to offer temporary payment plans or hardship funds to help you get back on track. 'Financial resilience isn't a luxury - it's something we can all benefit from,' said Ms Pennells. 'Let's normalise seeking advice, asking questions, and celebrating even the smallest financial wins.'
The Herald Scotland
08-08-2025
- Business
- The Herald Scotland
Historic mutual with big Edinburgh base reveals profits hike
The company reported growth in new business life and pensions sales – booked at £5.885 billion compared with £5.048bn at the same last year – and sales of its new bulk purchase annuity offer. It completed eight bulk purchase annuity buy-ins in the first half, securing £658 million of premiums and boosted by its largest external BPA transaction to date. This occurred when it completed a £275m buy-in with the Grand Thornton Pension Fund in June. Royal London and the trustee have developed a project plan for the buyout of the fund, at which time the 2,200 members will become direct policyholders of the mutual. A further £142m of premiums have been secured by Royal London's BPA business in the second half to date, meaning total premiums have now reached the £1 billion milestone since the offer launched in September last year. Royal London meanwhile has moved to strengthen its private assets capability with the acquisition of Dalmore Capital which, subject to regulatory approval, will bring an infrastructure investment offering to the group. Dalmore manages around £6bn of assets across five flagship funds, and Royal London said the acquisition will provide customers with access to a wider range of investment options to support their retirement ambitions. The assets brought by Dalmore include hydro generation projects in Scotland. Read more: Royal London's Governed Range, into which most of its pension customers are invested, saw net inflows of £1.6bn, with assets under management reaching £75bn, up from £72bn on December 31. Barry O'Dwyer, chief executive of Royal London, said: "For six years running, Royal London has been the most preferred personal pension provider by financial advisers, testament to the strength and quality of our customer propositions. Our new bulk purchase annuity offering, the only mutual option in the market, is also resonating well with trustees and advisers as we completed eight buy-in transactions in the first half of this year. "Support from financial advisers has meant our Governed Range attracted £1.6bn of net inflows in the first half of the year. This range offers valuable diversification for customers amid market volatility with allocations to assets such as real estate and commodities. The recently announced acquisition of Dalmore Capital will also provide access for Governed Range customers to the long-term, stable returns that infrastructure investments can offer. "When most of our competitors perform well, they reward their shareholders with higher dividends. Royal London is a mutual with no shareholders so when we perform well, our eligible customers benefit through ProfitShare. In April, we demonstrated the value of mutuality by sharing £181m with 2.3 million customers through our ProfitShare scheme." It was reported recently that Royal London had submitted plans for a major redevelopment of its former offices on Thistle Street and Queen Street in Edinburgh, which would become its headquarters north of the Border. The mutual's Scottish operations are currently largely based in an office in Haymarket. The mutual can trace its roots back to 1861 when it was established as The Royal London Friendly Society.
Daily Mail
28-07-2025
- Business
- Daily Mail
Euro tumbles and stocks slump after US 'humiliation': Trump forces 'lopsided' trade deal on Brussels
Stocks on this side of the Atlantic gave up early gains and the Euro tumbled as the US-EU trade deal was branded a 'humiliation' for Brussels. The single currency fell more than 1 per cent against the dollar towards $1.16 as investors bet the agreement would hurt the European economy. Stock markets also slammed into reverse after an initial rally with the Dax closing down 1 per cent in Frankfurt and the Cac falling 0.4 per cent in Paris. In London, the FTSE 100 fell 0.4 per cent, or 38.87 points, to 9081.44. By contrast, the Nasdaq and S&P 500 hit record highs in New York. 'It's great they've made a deal, but beyond the noise it is still a worsening in trade relations, not an improvement,' said Trevor Greetham at Royal London Asset Management. Danni Hewson at AJ Bell added: 'Any questions about who gains the most from the US-EU trade deal seem to have been answered by markets with both the S&P 500 and Nasdaq hitting record highs with European markets looking a lot more subdued.' Under the lopsided agreement struck between US President Donald Trump and European Commission chief Ursula von der Leyen, most EU exports to the US will face a 15 per cent tariff. While this was lower than the 30 per cent threatened by the White House, it is higher than the 10 per cent secured by Brexit Britain and ten times the 1.5 per cent levy that was in place before Trump launched his trade war. Analysts warned the deal poses a big threat to European exporters, who shipped £450billion of goods to the US last year including cars, wine and medicines. US exports to the EU – which totalled £275billion in 2024 – will not face extra tariffs. The EU also agreed to invest an extra £450billion in the US –including on American military equipment – and spend more than £550billion on energy. Trump hailed 'the biggest deal ever made' while von der Leyen was forced to admit it was 'the best we could get' as she faced a fierce backlash across Europe. Clemens Fuest, president of the Munich-based IFO economic research institute, said: 'The trade deal is a humiliation for the EU, but it reflects the imbalance of power. 'The Europeans need to wake up, focus more on economic strength and reduce their military and technological dependence on the US.' French entrepreneur Arnaud Bertrand, who sold his House Trip business to TripAdvisor, described it as 'a massive one-way transfer of wealth with no reciprocal benefits'. He said: 'The EU gets nothing. This is Europe's century of humiliation.' By contrast, Business Secretary Jonathan Reynolds said there was 'absolutely no doubt' Britain was able to secure lower tariffs of 10 per cent due to Brexit.
Daily Mirror
18-07-2025
- Business
- Daily Mirror
Boost income by £330 annually with little-known government scheme
It currently costs around £43,900 a year for a comfortable retirement. And with the full new state pension covering £11,973, savers will need to make up the difference themselves. Finance expert Antonia Medlicott has revealed a savvy tip for those eyeing a comfortable retirement, with the current annual cost estimated at about £43,900. With the full new state pension providing just £11,973, Brits are left to bridge the gap themselves. Antonia, MD of Investing Insiders, is pointing savers towards a "little-known government scheme" known as Specific Adult Childcare Credits that could bolster your state pension to the maximum if you're short on qualifying years. The investment expert said: "When a parent gets child benefit, they also get national insurance credits, but if they're working and someone else is doing the childcare, like a grandparent, then those credits can be transferred, which increases your retirement income if you don't have enough national insurance contributions. "Each year of credit can be worth up to £330 in extra pension income. Over a 20-year retirement, that equates to £6,600. Even better, you can backdate credits to 2011 in the application." Should have no effect on state pension entitlement And there's no need to worry about the parents' state pension entitlement – it remains unaffected as long as they're clocking up qualifying years through other means, such as employment. Royal London's analysis shows just over half of the 3.4 million people on the new state pension snag the full amount, reports Lancs Live. The remainder receive amounts proportional to the number of qualifying years they possess. To secure the full sum, you need 35 qualifying years where you either contributed National Insurance or obtained credits such as the Specific Adult Childcare entitlement. To qualify for the credits, you must be aged over 16 but below state pension age, the child's parent or primary carer must consent to transferring their credit to you, and they must verify that you have cared for their child. You must also be an 'eligible family member' - this encompasses aunts, uncles, siblings irrespective of blood ties, grandparents, great-grandparents or great-great-grandparents. Check your pension Antonia also encouraged individuals to monitor their pensions even if retirement is years away. She said: "A staggering 55% of workplace pensions underperform against industry standards, which could leave workers with an income shortfall when they retire. "It's vital to take an active interest in a workplace pension to make sure it's on track for a comfortable retirement. Simply checking a pension regularly (at least once a year) will help workers identify any disappointing returns and take action if they need to change their investment strategy." Antonia highlighted that a mere 10% of the UK population have taken advantage of a Self-Invested Personal Pension (SIPP), which offers the same tax benefits as workplace pension schemes but with greater control over investment choices. She recommended considering a SIPP for several reasons beyond merely enhancing retirement income. She said: "There is a lot of flexibility when it comes to this pension; you can contribute as much or as little as you want. It is also very effective when it comes to estate planning. "You can pass on your pension savings to nominated beneficiaries very easily, which gives good peace of mind to know that your money will end up with loved ones." The finance guru also pointed out a common costly mistake regarding pensions: delaying the start of saving. She elaborated: "If you invest £200 a month from the age of 25, by 65 you could have a pot of over £459,000 at an average return rate of 7.5 per cent. "But if you start at 35, that pot will be £223,000, and it will be just £98,600 if you start at 45." It's important to remember that investments carry risk, and it's advised not to invest more than you can afford to lose at any point in life or when planning for retirement.
Daily Record
07-07-2025
- Business
- Daily Record
State Pension inheritance rule boosts over half a million payments by £5,000
More than half a million pensioners were receiving over £5,000 a year in inherited Serps payments in 2023/24. Pension Credit – Could you or someone you know be eligible? More than half a million people are boosting their State Pension by over £5,000 annually through inheritance, according to figures obtained by a pension provider. A freedom of information (FOI) request by pensions mutual Royal London indicated that in the tax year 2023/24 more than two million pensioners (around 2,027,440) received a payment from an inherited state earnings-related pension scheme (Serps). This was part of the old State Pension system, which enabled people to build up an entitlement to extra State Pension income. According to the figures, around 541,760 pensioners were receiving more than £5,000 a year in inherited Serps payments, including 17,460 who received more than £10,000. If someone's spouse or civil partner dies, they may be able to inherit part of their additional State Pension, which will be paid on top of the surviving spouse's State Pension when they reach the official age of retirement, which is currently 66. Surviving spouses and civil partners can potentially inherit up to an annual maximum of around £11,356.28 (£218.39 per week) for the 2024/25 tax year. For the 2023/24 tax year, the weekly maximum amount of inherited Serps was slightly lower, at £204.68. The data was released by the Department for Work and Pensions (DWP) and taken from its quarterly statistical inquiry. According to the figures obtained by Royal London, the average annual inherited Serps payment for 2023/24 was £3,377. As a result of the inherited pension boost, some people could be receiving as much as £20,000-plus per year in an enhanced State Pension. A new, simplified, 'New State Pension' system was introduced in April 2016. Royal London's consumer finance specialist Sarah Pennells said: 'This data shows how much of a difference inheriting a Serps pension from your husband, wife or civil partner can make. The worry is that, while more than two million people are claiming inherited Serps, others could be missing out. 'Understanding the rules is key to boosting your retirement income.' She continued: 'As we continue to adapt to the new system introduced in 2016, which focuses on individual entitlements, understanding the legacy of Serps and its relevance for thousands of retirees remains crucial.' Royal London advises anyone unsure about their inherited Serps entitlements to contact the Pension Service to find out what they should be receiving - full details can be found on here. State Pension payments 2025/26 The New and basic State Pension weekly payment rates increased on April 7. Full New State Pension Weekly payment: £230.25 (from £221.20) Four-weekly payment: £921 (from £884.80) Annual amount: £11,973 (from £11,502) Full Basic State Pension Weekly payment: £176.45 (from £169.50) Four-weekly payment: £705.80 (from £678) Annual amount: £9,175 (from £8,814)
