Latest news with #SarahPennells
The Independent
5 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.'
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)
Daily Mail
17-06-2025
- Business
- Daily Mail
Financial meltdown looms for one in ten as soaring cost of living continues to bite into household finances
One in ten adults are on the brink of a financial crisis as the soaring cost of living continues to bite into household finances, new research reveals. Surging mortgage costs and hikes to bills has left 9 per cent of adults facing a financial crisis, according to a report from pension and investment firm Royal London. Those aged between 30 and 49 are most affected – some 16 per cent are either in or close to an emergency money situation. Meanwhile, only two in five of this group are satisfied with their standard of living. There are some signs of improvement to household finances, says the report, as 59 per cent of those surveyed say they have money left over at the end of the month compared to 49 per cent last year. Plus, there was a small rise in the average amount people have saved in cash – £15,864 this year compared to £15,549 in 2024. Sarah Pennells, of Royal London, says: 'While it's encouraging that some people have been able to start to build up their savings, it's very concerning that one in five have less than £100 in savings – the same percentage as in March 2023, when we first asked this question. 'It's been unchanged for the past two years.' She advises reviewing direct debits and subscriptions to see if you can save money in small ways, which will build up over time. You can also create a savings buffer to account for an unexpected bill or take advantage of cheaper energy deals if you want to build your financial resilience.
The Independent
28-02-2025
- Business
- The Independent
Inheritance rule helping more than two million people to boost state pension
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 state pension age. 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 was taken from its quarterly statistical inquiry, with the numbers being grossed up from its sample and rounded to the nearest 10. According to the figures obtained by Royal London, the average annual inherited Serps payment for 2023/24 was £3,377. Get a free fractional share worth up to £100. Capital at risk. Terms and conditions apply. 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, state pension system was introduced in 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. 'If you're in doubt about your inherited Serps entitlements, then you should contact the Pension Service to find out what you should be receiving.'
