Latest news with #SarahPennells
Daily Mail
3 days ago
- 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.'
