Category Archives: Finance

Finance News – Read latest and breaking news headlines straight from the finance experts and most trusted sources from the world. Including money investment news, insurance news, personal finance and much more.

How you can be like this 38-year old woman, who has gotten mortgage-free shares

How you can be like this 38-year old woman, who has gotten mortgage-free shares

Express.co.uk was approached by a lifestyle blogger in her thirties who shared how she and her husband were able to become debt-free in just ten years. They paid off their PS120k mortgage and PS8,000 debt. It was easy with just a few steps, according to the couple of Cirencester in Gloucestershire. They’ve shared exactly how it happened.
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Express.co.uk has been contacted by a lifestyle blogger in her thirties who shared how she and her husband got out of debt and paid off both their PS120k mortgage and PS8,000 debt within ten years. __S.5__

A couple in Cirencester, Gloucestershire claims it is possible. They have detailed how it happened.

Becky Derbyshire, 39 years old, lives with Jayson, her husband of 40 years in Cirencester in a semi-detached house.

Although they aren’t wealthy, their unique financial plan has allowed them to get rid of all mortgages.
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READ MORE: PIP claimants may be eligible for up to PS4610 extra per year

Becky said that she wished she had started sooner after experiencing ‘a tremendous sense of relief’ at paying off the huge PS120k mortgage. It’s not just for those with high incomes. Becky and her husband proved that anyone can pay off their mortgage early.

Becky says that the couple has never been’silly’ with their money, but they enjoyed the occasional holiday and used credit cards to pay for it. When they bought their first home, they had also borrowed funds for a car. Becky began to consider making extra payments toward their mortgage three years after purchasing the house.

Becky stated that she set up a savings fund for the purpose. We lived on Jayson’s salary and put everything in to the account. Jayson had a low salary at the time, but it didn’t seem like we were losing out as long as we got used to this. “We started living within our means.”

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Becky blogs as a freelancer so her net income varies month to month. However, they always manage to save enough money to pay off their mortgage in six months. __S.27__

Santander, their mortgage lender, has an easy-to-use early repayment mortgage calculator online. This was what helped them get going. They are less worried about their finances now that they have a large amount of debt.

Becky stated that it gives her a sense of financial freedom because you no longer have to worry so much about monthly payments. Although we have many other bills, it relieves the stress. It’s great to have a mortgage .”

Becky is a good shopper and has been a great financial manager. Jayson however, an impulse buyer, used to buy lots of DVDs and CDs from the HMV shop.

But, he has slowed down and now sees the benefit in spending. “I have never bought anything for the sake it. If I see something that I like, I will leave it behind and return it to you a few weeks later. The urge to buy will pass more often than you think. “

Becky suggests that others follow her advice to get out of debt. She blogs about fitness, sustainability, and veganism.
Perhaps she could also write about personal finances.

Publited Sat, 11 September 2021 at 03:00:00 +0000

By not downsizing, pensioners miss out on huge PS150k gains

By not downsizing, pensioners miss out on huge PS150k gains

According to Churchill Retirement Living’s new research, only 14 percent of retired people or persons nearing retirement are interested in moving home. However, this reticence could cost pensioners a lot and cause them to miss out upon a huge cash increase. The average retired person will make PS150,000 by downsizing. It is believed that this is negatively impacting housing markets.

Retirees can make a bold move and sell their home to buy a smaller property for retirement. This will allow them to put more money in their pocket, as well as help the market stimulate younger generations. Churchill Retirement Living data showed that every property bought for retirement results in an average of 2 to 3 additional purchases. This allows for young families and first-time buyers to unlock properties.

Spencer McCarthy, Churchill Retirement Living’s CEO, shared his views on why it might be worth considering for retired people. According to McCarthy, “Our society often views downsizing as an act of necessity, rather than as something we can do for ourselves. But new data shows that there are many benefits, and not only for the individual, but for their family and for society in general.

READ MORE: National Insurance shock! The pensioner NI levy won’t count toward the State Pension

McCarthy stated that the UK has a bad reputation for downsizing and clarified some of any misunderstandings. McCarthy stated that there is another barrier, which is the misperception about how downsizing should look. This is a typical British issue. In the UK, specialist retirement housing is often considered to be the same as assisted living or care homes. This is contrary to other countries.

Independent retirement communities are lively places that allow people to live an active, independent lifestyle longer. These developments provide comfortable and low-maintenance apartments with the possibility to meet new people and socialize in communal areas. These places are usually located right in the center of the town and help to support local economies. They also improve the health and well-being of residents.

McCarthy also highlighted the many benefits that pensioners can enjoy by downsizing their houses for the entire market. McCarthy stated that encouraging more people to reduce their homes is key in releasing space for first-time buyers and families. Homes for Later Living recently reported that for each person who downsizes to retirement properties, two-three to three more are available further down the housing ladder. And, roughly two thirds of all downsizing actions lead to first-time buyers. It is essential to free up housing supply in order to solve our housing crisis.

A downsizing strategy could give pensioners more flexibility and freedom in retirement. 28 percent said they would use additional funds to increase their pension. 41% said that they would use the money to insure their loved ones, which highlights the social benefits of being able access the funds.

McCarthy said, “Moving into retirement properties can allow more people to live independently and safely as they age.” McCarthy stated that millions of seniors are living in unsuitable homes, putting them at greater risk, and increasing pressure on already fragile systems.

We all need to be able to live in our homes as we age. By accepting the advantages of downsizing, we can all enjoy a longer life, which will make us all happier, healthier, and potentially even earn a little extra.

Publited Fri, 10 Sep 2021 at 21:31.05 +0000

Britons could cut their tax bills by more than PS1,000, but many people are not taking advantage

Britons could cut their tax bills by more than PS1,000, but many people are not taking advantage

It’s also based upon annual earnings. Couples with reduced earnings from furlough in 2020 and 2021, which means that they are eligible if their annual salary is lower than normal, may apply.

They will need to inform HMRC when they earn more than usual. If this happens, then they won’t be eligible.

The Marriage Allowance is worth PS252 for this year. However, the allowance can be redated backwards over four years so individuals can reduce their taxes by more than PS1,000.

The person with a lower income should ask for their allowance to be transferred to their spouse in order to apply. This tax relief is not available to higher earners.

You can submit your application online through the official Government website. This is a great way to apply online, as 100% of the Marriage Allowance to which an individual has the right to will reach their pockets.

Some people choose to take the action through specific Marriage Allowance companies, however experts like Money Saving Expert Martin Lewis have cautioned against it in the past. These organisations could get a cut of the revenue they receive.

Publited Fri, 10 Sep 2021 at 03:00:00 +0000

Identifying and Fixing Your Company’s Gender Pay Gap

It’s a hot topic, pay equity. In fact, many states have either passed or are mulling a host of related measures. Lest your company is ensnarled in legal woes and takes a reputational hit, you should be all about identifying and fixing your company’s gender pay gap.

The Issue

Yes, compensation is at the root of your company’s bottom line, efficiency and productivity. If you pay equitably, you can attract and keep the best talent. Still, it’s a fact that women and people of color are paid less for the same work. Over a 40-year career, Black and Latina women sustain lifetime earnings losses of up to $1 million.

That’s a lot.

Pay Equity Audit

This is a good place for companies to start, although a recent study showed that, of the 922 largest U.S. companies, just 22% reported conducting a pay audit between 2016 and 2020.

Read More: Amazon will spend $1.2B on college tuition to expand its reach and pay for it

What is a Pay Equity Audit?

It’s basically comparing the pay of employees in an organization performing “like for like” work and looking into the causes of any pay disparities that can’t be justified. At small companies, the audit is led by HR pros, while larger organizations typically hire firms to do it.

How to Conduct an Audit

Before you begin, be certain auditors are using correct and up-to-date info. You should have every worker’s length of service, job classification, gender, race, and age.

After that, auditors conduct what’s called a regression analysis to take into account compensation disparities based on legit factors like experience, education, and training. That way, you can subsequently identify anomalies based on gender, race, and age. What organizations typically learn is their pay policies aren’t consistently followed and subjective assessments are often the culprit.

Then there’s remediation – or fixing the gender pay gap problem. A recent Korn Ferry study found most companies that perform audits discover up to 5% of workers are eligible for a raise, and the average increase due ranges from 4% to 6%. Be mindful that the overall remediation cost to companies comes to 0.1% to 0.3% of their total salary budget.

Depending on budget flexibility, organizations can increase an employee’s salary incrementally until it hits the target amount. Unless it pertains to a lawsuit, back pay is not usually part of the equation.

Read More: The education sector also benefits from digital payments

Finally, you need to pinpoint operational gaps that caused the pay disparities in the first place. Such gaps can include improper job classifications or decentralized hiring authority.

This should lead to the ongoing monitoring of hiring, promotion, and compensation processes – kind of like tune ups. If you aren’t careful, pay gaps could arise again as employees change jobs or job duties, reorganizations occur and subjective bias creeps in. Annual spot checks are a good idea, followed by a serious exam every few years.

Don’t Let Fear Block Progress

Even if you don’t have good data to immediately launch a pay equity audit, start anyway. Companies often fear they’re going to find a problem and do nothing. The best attitude to take is the audit needs to be done because it’s the right thing to do.

Yes, you may fear threat of litigation, but focusing on that will cause you to miss out on the chance to fully engage employees in a discussion about values and the benefits of a diverse, equitable, and inclusive workforce.

Identifying and fixing your company’s gender pay gap is the No. 1 thing an employer can do to build trust.And if you don’t handle it ethically, pay disparities can become a legal and reputational issue. Get going on your audit today.

Rishi Sunak will be ‘forced’ to next target salary sacrifice – employees to lose thousands

Rishi Sunak will be 'forced' to next target salary sacrifice - employees to lose thousands

He stated that “There is no question that there was a social care crisis that had to be solved, because it’s one of the biggest areas of financial planning that concerns people most. They are worried that their wealth will be lost and that their legacy to their families may be diminished.”

Given the UK’s ageing population, the crisis will only get worse. We had to do something. It remains to be determined whether yesterday’s announcement of an increase in National Insurance and Dividend Taxes by 1.25 percent will solve the problem. Future tax increases cannot be ignored.

The pledge to not raise taxes was broken and there is now a fear that more tax increases could be coming. For a while now, rumors of possible changes in Capital Gains Tax, Inheritance Tax or pension legislation circulated. Yesterday’s announcement made me fearful that the next steps in National Insurance’s rise will result in changes intended to prevent’salary sacrifice.

Smith explained how salary sacrifice works. “A salary-sacrifice arrangement means that an employee is willing to give up a portion of their income in return for benefits provided by the employer. The main benefits are that both the employee and employer save Income Tax and National Insurance on the amount of salary lost.

LEARN MOREWarning about the “Death of Retirement”: It is not necessary to work past 65 in order for your retirement needs to be metIt

Publited Fri, 10 Sep 2021 at 06:52:00 +0000

Britons might have to wait longer in order to get a free bus pass and free prescriptions.

Britons might have to wait longer in order to get a free bus pass and free prescriptions.

First, the bus pass is free. Britons have an entitlement to the free bus pass. It makes travel easier and allows people to go about their daily lives for no cost. Many people value a bus pass, regardless of whether they are visiting their family or attending medical appointments.

It is important to remember that there are certain rules about when you can obtain this pass. Due to the fact that the rules regarding travel vary between the UK’s four countries, they may differ.

People in Scotland, Wales, and Northern Ireland will typically be eligible for a free bus pass at the age of 60. However, in England free bus passes cannot be obtained until a person turns 60. These individuals must wait to receive theirs until they turn 66.

However, as the state pension age rises, some people may have to wait until they are 66 to receive their pension. You can obtain a forecast of your state pension from the government’s website. This will tell you when and how much you can expect to get from your state pension.

READ MORE: Self-employed hit back as impact of National Insurance made clear

Publited Fri, 10 Sep 2021 at 07:38:00 +0000

National Insurance: The bombshell The pensioner NI levy won’t count toward the State Pension

National Insurance: The bombshell The pensioner NI levy won't count toward the State Pension

People who work past the State Pension age of 65 years will be subject to Boris Johnson’s new social and health care levy. This will, however, not be counted towards the basic State Pension, as it does not include National Insurance contributions that were paid for income before age 66.

The full PS179.60 per week basic state pension is not available to those who have made less than 35 years worth of NI payments during their working life. Instead, they will receive a lower amount. Contributors who have been in the workforce for less than 10 year get no benefit.

Sandra Wrench, a pensions expert, stated that many people who don’t get their full entitlement may be unhappy about paying the 1.25 percent levy. This is because it won’t go toward filling any gaps in their State Pension.

Sandra (69) worked for the Department for Work & Pensions for over 40 years. Sandra was a State Pension holder for two decades. Sandra helps family and friends get a fair deal with the DWP.

Many people who work after the age of 66 must continue to work because they are not eligible for full State Pension.

Sandra stated that although they will now have to pay the National Insurance levy, unlike regular NI contributions, it will not allow them to build an extra State pension. The NI contribution has always been linked to benefits, and contributed towards your State Pension. But the new working pensioner levy ends this connection.

At the moment, once you have reached State Pension age you are no longer required to contribute any National Insurance.

This rule applies to all income received from the State Pension and income from any workplace pension, personal retirement or savings.

To address the crisis in social services, those aged over 66 will be required to continue to work from April 2023.

It is part of an overall package that aims to increase PS36 billion in three years for both the NHS and its care system.

READ MORE:Pensioners beware! Starmer supports a ‘wealthtax’ in order to fund social services

Employers under the State Pension Age will be required to pay the 1.25 per cent levy. This would cost someone earning an average of PS30,000 per year and add PS255 for National Insurance Contributions.

PS50,000 earners will be paid an additional PS505, and PS75,000-earning people will receive an additional PS818 per year.

They also have to pay NI, at 12 percent per annum, on all earnings of between PS9 568 and PS50 227. This does not affect your State Pension entitlement.

Sandra Wrench stated that the new levy would be independent of NI so working pensioners won’t have to pay 1.25 percent. This will not be applied to their State Pension, regardless of whether they are in surplus.

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Sandra stated that once you have reached State Pension age it’s no longer possible for you to add State Pension provisions. This is the reason why people don’t pay NI contributions at that age – however, that will change.

Working pensioners who are over 65 years old will be required to pay National Insurance starting April 2023. However, the money won’t go toward boosting their Basic State Pension. Because of how it’s calculated, this will cause a major setback for those who still haven’t received the basic state pension.

This is because the government has no incentive for it to do so. It might end up paying more State Pension than it receives in NI from the working pensioners.

Sandra said that you cannot increase your State Pension amount after the age of 66 by deferring.

Publited Fri, 10 Sep 2021 at 07:05:00 +0000

Britons will see a’significant decline in their incomes’ due to furloughs and Universal Credit’ uplifts

Britons will see a'significant decline in their incomes' due to furloughs and Universal Credit' uplifts

The welfare expert said that the pandemic had exacerbated the inequalities among the elderly and young, which are both the most economically vulnerable groups in the UK.

Ms McNeil said: “It’s definitely the youngest, and the oldest that is most vulnerable.

The scheme is most popular among the under-25s and the over-65 age group. This is the current picture, but there are still many unknowns.

Aside from furlough, the end to the PS20 Universal Credit uplift is likely to be the primary factor which will affect Britons’ incomes over the coming months, according to Ms McNeil.

She explained that “for those who come off it, who don’t go into work after being on furlough, there will be a substantial drop in income.”

“We have one of most generous social insurance systems in the world. That has been highlighted by the pandemic.

Publited Fri, 10 Sep 2021 at 03:00:00 +0000

Waspi women “confidently Expect Recompense” – Hopes grow in the wake of Ombudsman Report

Waspi women "confidently Expect Recompense" - Hopes grow in the wake of Ombudsman Report

Waspi is seeking to redress the losses of an estimated 3.8million women who were born between 1950 and 1960 when the State pension age was raised for them. Many lost up to PS50,000 State Pension and were required to continue working for five to six more years. These people believe they weren’t given enough notice of the changes and are entitled to compensation.

Waspi women gained hope after a symbolic win in July when the Parliamentary and Health Service Ombudsman stated that the Department for Work and Pensions should have provided them with more information about moves to increase their state retirement age.

According to the Ombudsman, they were subjected to “maladministration” as the DWP failed in its duty of communication. They should have been notified about changes by December 2006. However, this was delayed until April 2009.

Hilary Simpson is the chairwoman of Women Against State Pension Injustice 2018 (Waspi). She stated that the Ombudsman’s report had “justified” their campaign and moved them into a “new phase.”

There is no dispute over whether maladministration occurred. It is clear from the report that maladministration took place, with millions of women suffering as a consequence.”

Simpson stated that Parliament cannot continue to deny what has happened following the Ombudsman report.

We are confident that the Ombudsman will conclude that there was injustice and recommend recompense.

Although the Ombudsman cannot refund pensions lost or to pay for damages, it may recommend that the government compensate women.

Simpson stated that this means MPs will make the final call.

READ MORE:WASPI women devastated by ‘grim’ National Insurance hike

The reopening Parliament was celebrated by Waspi activists who renewed their fight for justice on September 6.

To show support for their efforts, more than 20 local councils decorated town halls with purple statues. Other landmarks included the Birmingham Central Library and Glasgow Kelvingrove Art Gallery, and Blackpool Tower.

A spokesperson for the DWP said that 25 years ago, the government decided that it would make State Pension age equal for women and men. This was a long-overdue step towards equality of genders. Over many years, successive administrations have been pursuing the same policy: to raise State Pension age according to life expectancy.

The spokesperson stated that both the High Court as well the Court of Appeal supported actions of the DWP under different governments since 1995. They found we acted completely lawfully and didn’t discriminate on any basis.

Publited at Thu, 9 Sep 2021 09:35:00 +0000

European Central Bank acknowledges rising inflation fears. “The lady isn’t tapering.”

European Central Bank acknowledges rising inflation fears. "The lady isn’t tapering."

The ECB voted today to maintain the zero-percent interest rate for its major refinancing operations. It also maintained the marginal lending facility at 0.25 % and the deposit facility at -0.5 %. The central bank was also forced to act by inflation worries.

Christine Lagarde (ECB President) stated that the verdict was unanimous in all aspects during a press conference today.

The ECB stated that interest rates would remain low until inflation is seen as reaching 2 percent, which will be “well ahead” of its projected horizon.

The ECB stated that this could also indicate a temporary period of inflation slightly above target.

Quintet Private Bank’s chief economist, Daniele Antonucci commented on the most recent ECB interest rate decision.

READ MORE: State pensions ranked: UK system ‘flatlines’ on the global stage

Shane O’Neill from Validus Risk Management was also the Head of Interest rates. He said: “As we expected, neither the main interest rate nor the amount of the ECB’s PEPP envelope were changed. It remains at EUR1,850billion.” Although the PEPP will remain in place until March 2022 at the earliest, the pace of monthly purchases will slow down to EUR80bio per month.

The news is that the EURUSD has remained virtually the same on the market, and the attention of the markets will shift to the press conference.

In an effort to assure the public that the lady wasn’t “tapering,” Ms Lagarde invoked Margaret Thatcher during the press conference.

We are doing a recalibrating just like we did in December and March. She said that we are doing this on the basis the framework which is a jointly assessed.”

These developments follow recent ones from the Bank of England.

The Treasury Committee questioned BoE policymakers yesterday about the economic state.

It was revealed that the central bank team had a split on interest rates when they were pushed.

Four of the BoEs’ policymakers were of the opinion that the conditions for the consideration and approval to raise the interest rate had been satisfied in August. However, four others believed that the recovery wasn’t yet complete.

Felicity Buchan (Conservative MP for Kensington) said: “In our discussions on forward guidance, and whether or not the threshold [for increasing rates] was met, you kindly gave us the information that it was four to five …,”.

“… Would you be willing to tell us your current position?

Andrew Bailey, Governor of Bank of England was first to reply: “I believe we can do it.”

“So, my opinion was that the guidance had already been followed.”

Dave Ramsden (Deputy Governor for Markets and Banking, BoE) responded that he had given a speech to the BoE in July, where he kind of flagged the fact that I believed the guidance was nearing being fulfilled.

“And when we reached the August round, I also believed that the guidance had been fulfilled, as you all know, it was significant progress in eliminating excess capacity and a sustainable return to inflation target.

These were not sufficient to tighten the belt, but they were necessary.

The BoE currently has a base rate of 0.1 percent.

Publited at Thu, 9 Sep 2021 11:00:00 +0000