Monthly Archives: May 2010

Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Prudential Finds Brits Fear Outliving Pensions

Prudential research findings show that more than half (59%) of British adults fear they will outlive their pension savings, as increasing longevity means workers are having to save more money to fund a longer life in retirement.

The findings from the new research* commissioned by Prudential also revealed that 55% of British adults are creating ‘second pensions’ and supplementing retirement income with additional savings and investments in order to make ends meet.

Almost one in three (31%) of British adults have or are looking to boost pension savings and create second pensions with Additional Voluntary Contributions (AVCs) which have the same or better tax breaks as a regular pension. 36% said they intend supplementing their pension with additional cash savings, 17% are looking to boost pension income using stocks and shares and 15% plan to downsize their homes and release equity.

In addition 19% of British workers would consider using paid employment to help fund their retirement over and above their expected pension income.

Despite this, more than one in three (36%) of British adults still intend taking a lump sum from their pension at point of retirement, reducing their retirement income, with the average British worker looking to take around 17% of the fund from their pension as a single tax-free payment.

Richard Harrison, Corporate Pensions Director at Prudential, said: “Increasing longevity means workers are having to accept that pensions will be stretched over a longer period and will therefore deliver a lower income than they might expect. Today, a 30-year old man can expect to live until he is 86 years old**.

“This is a scary proposition for people considering how to fund their retirement but there are plenty of options for boosting savings, including tax-efficient Additional Voluntary Contributions. We believe everyone should see an independent financial adviser to ensure they are saving enough to fund their life in retirement.

“For many people, taking a lump sum and also having a pension that provides sufficient income to live a comfortable retirement will not be possible unless they save more or retire later.”

Via EPR Network
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LV= Finds Dodgy DIY Improvements Damage House Values

New research by home insurer LV= has revealed that in the last few years as many as 4.05m homeowners have undertaken electrical jobs without professional help, 3.3m have attempted plumbing work and 1.35m have carried out structural work such as removing walls. 900,000 have undertaken major building works, such as loft conversions, and 450,000 have tackled potentially dangerous gas repairs.

According to the LV= survey, many homeowners admitted undertaking these works in an attempt to improve the resale value of their homes. However, the effects of doing these jobs badly can reduce the sale price of a property by more than 5% in some cases.

John O’Roarke, managing director of LV= home insurance, said: “With house prices falling or stagnating in some parts of the UK, it’s understandable that many homeowners should try to bump up the value of their properties through DIY home improvements.

“But although nine out of ten people in our survey (88%) recognised that jobs like gas work should only be left to the professionals, nearly 0.5m Brits are still prepared to give it a go. Not only could bungling these jobs be dangerous, and costly to put right, but if they caused a serious problem with the property it could invalidate the home insurance cover.”

The LV= report surveyed both homeowners and estate agents, and reveals a myriad of conflicting opinions when it comes to the impact of DIY improvements. 21% of home owners believe that redecorating adds the most value to a house, followed by kitchen refurbishment (14%), garden work (12%), and bathroom replacement (6%).

Meanwhile 69% of estate agents believe decorating will make no difference at all to the asking price of a property. 64% responded that garden landscaping won’t add value; whilst 22% said even a new kitchen won’t improve the price. Estate agents also believe that the sale price of a property could decrease by more than 5% in some cases, if ‘improvement’ work was done poorly.

Despite popular opinion, estate agents say that some of the most costly jobs are likely to have only a minimal impact on the asking price of a home. Those agents who believe that improvement work usually or always adds value reported that a new kitchen, if done well, can add around 2.5% to the price, while a good new bathroom or garden landscaping can each add 2.2%.

Via EPR Network
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LV= Reveals That Today’s Kids Have Less Freedom Than Previous Generation

According to new research from LV= Streetwise, a charity which educates children about safety, today’s parents don’t allow their kids the same liberties as they enjoyed when they were growing up.

24% of children aged 15 and under said they aren’t allowed to sleep over at a friend’s house, 60% are forbidden to use public transport on their own, and 43% can’t visit their closest park without a parent by their side. In contrast, just 4% of adults were banned from sleeping-over, 2% were forbidden to use public transport or go out on their own in familiar surroundings, like their local town or park.

The restriction on children’s outside activities appears to be a direct result of parents’ growing fears and anxieties. 65% of mums and 63% of dads believe the world is more dangerous now than it was when they were growing up. ‘Stranger danger’ is the biggest worry for 54% of parents, followed by bullying (47%), mugging (47%) and road danger (34%).

On average, children today can look forward to walking to school on their own by the age of 11, use public transport on their own at 12, and babysit their brother or sister by the time they’re 14, compared with the respective 9, 11 and 12 years of age of their parents generation. However many parents know they’re being tougher on their children with 36% feeling uneasy that their kids don’t get the same opportunities as they did to experience freedom as a youngster.

The new research findings mark the launch of the unique LV= Streetwise safety roadshow, which helps to educate children about safety in the home and outdoors using a converted ‘bendy bus’ featuring a life-size kitchen, lounge, and road and rail hazard simulators. The roadshow will be travelling round county fairs and other outdoor events across the UK this summer.

Via EPR Network
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Banks, Business, Credit Cards, Debit Cards, Financial, Financial Information, Financial Services, Financial Software, Financial Solutions, Money

VocaLink Take Home Pay Index Reverses Recent Increase Hitting Record Low In April

The VocaLink Take Home Pay Index reflects the continuing uncertainty in the UK labour market as it drops to its lowest level on record of 0.9 per cent. The Index has now fallen below its previous lowest level of 1.0 per cent recorded in February this year. In March, the VocaLink Take Home Pay Index showed signs of recovery as it leapt up 0.5 percentage points to 1.5 per cent, but these gains have been reversed in April’s figures. As the Index continues to fluctuate between a low range of 0.9 per cent and 2.0 per cent, it indicates a fragile, sluggish economic recovery.

VocaLink Take Home Pay Index Reverses Recent Increase Hitting Record Low In April

The gains made in manufacturing sector pay growth in March have been reversed in April with the VocaLink manufacturing index falling by 0.7 percentage points. Services sector pay growth has also contributed to the drop in the overall VocaLink Take Home Pay Indexfor April by decreasing 0.5 percentage points to hit just 1.0 per cent.

While the latest industry figures show that the UK economy has continued to grow in the first quarter of 2010, it has done so at a slower pace than in the final quarter of 2009. This fragile recovery means that 2010 is likely to remain tough for households as the recent spike in inflation is not being reflected in higher pay growth. As such, real income growth is weak, which is placing downward pressure on increases in consumer spending.

Marion King, Chief Executive Officer at VocaLink, said: “The drop in this month’s VocaLink Take Home Pay Index continues to show the long-term trend of depressed pay growth. The last 13 months have seen take home pay fluctuate between a range much lower than the 4.0 per cent pre-recession average. Firms are continuing to keep their labour costs contained as competitive pressures remain high and economic activity recovers only gradually. In addition, the uncertainty surrounding the impending General Election is likely to result in caution over major business decisions.”

Via EPR Network
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UK Finance Advice Reforms Essential, Says Life Insurance Comparison Site Quoteboffin.co.uk

The complexity of the many financial services in the UK has resulted in a knowledge gap that leaves some investors and consumers unsure of where they stand, claims insurance comparison site Quoteboffin.co.uk.

The company says that the current debates over financial matters that are taking place in the run up to the elections only serves to further confuse the general public. Quoteboffin believes this increase in the knowledge gap could lead to consumers making rash decisions or choosing to listen to biased or incorrect financial advice.

Financial correspondent Matthew Vincent reported in the Financial Times that the Financial Services Authority (FSA) and independent advisors agree that financial advice in the UK must be reformed. Quoteboffin is concerned that if reforms can’t be agreed on, investors will be at risk of losing out.

“Understanding of financial investments, deals and insurance policies is crucial to ensure that people are able to make an informed choice about the contracts they are agreeing to.

“False, biased or incomplete advice means that consumers could be putting their faith in the wrong person or company, and paying a high price for it.”

The FSA is also vocally backing reforms and is insisting that no matter what the UK elections hold, the government must hold fast to promises that the payment of upfront commission to financial advisors would be banned by 2013.

Via EPR Network
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Bigmouthmedia Warns Online Finance Sector Set To Face New Challenges

Bigmouthmedia is to warn Britain’s financial services sector that the industry must adapt to a rapidly changing online marketplace or suffer far-reaching consequences.

Bigmouthmedia senior finance strategist Chris Cathcart will tell an audience of senior executives at the second annual bigmouthmedia Finance Summit next month that the online revolution is creating a new set of challenges which the industry must either meet head-on or risk losing ground to a raft of new players offering personal finance products. Revealing the results of a brand new survey into the sector’s approach to selling savings and insurance via digital channels, Cathcart will outline a shifting landscape to which businesses must adapt or face potentially far-reaching consequences.

“Even as most of the sector is beginning to dust itself off and recover from the effects of a disastrous few years, a new challenge is presenting itself that could have far-reaching consequences. Consumers are deeply suspicious of the industry as a whole, and if the UK’s finance organisations are to recover their reputation for probity and trustworthiness they are going to have to radically alter their approach to selling products online,” said Cathcart.

“With raft of new brands emerging to challenge existing players for consumers’ business, the internet is poised to become a key battleground in the finance sector’s fight for the future.”

Cathcart will be joined by a panel of industry-leading online finance experts speaking on a range of themes including the development and history of online financial marketing and the issues surrounding best-practice in selling savings products via digital channels.

Taking the podium at the bigmouthmedia Financial Summit will be Thisismoney.co.uk editor Andrew Oxlade and Colin Tomkinson, head of digital marketing at Barclaycard. Google senior head of financial services Ian Morgan and MoneyDashboard.com CEO Gavin Littlejohn will also lead sessions.

Via EPR Network
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OnlineFX Announce Relaunch Of Website

OnlineFX has announced the launch of its website which has recently been completely rebuilt and relaunched, offering customers even greater ease of use and more enhanced security features. The new site now features on a dot com domain which appeals to a wider market including the USA.

The OnlineFX website offers a convenient, secure and cost effective way to transfer money to bank accounts across 70 countries worldwide. The website now offers unique services to make ordering travel money even easier. Money transfers are carried out using the same systems as major banks, and OnlineFX dealers are committed to obtaining advantageous exchange rates for all transfers.

To celebrate the launch of the new site, OnlineFX, which was the first company to offer currency delivery online, is running special promotional offers including free international money transfers for all new customers and a free international money transfer for all existing customers who refer a friend.

The company has also just announced an exclusive new free same day travel moneydelivery service to all customers in Central London. This unique same day delivery service guarantees customers’ travel money will be delivered before 6.30pm if ordered for anywhere within the Zone 1 area of London. Orders for this new faster service must be between £3000 and £7000 – OnlineFX is the only UK company to offer this service.

OnlineFX has also introduced a more secure online Buyback Service, allowing customers wishing to sell leftover foreign currency to receive a buyback exchange rate upon receipt of foreign currency notes which is based on the very latest buy back rates.

Via EPR Network
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