Weekly news roundup: royal baby, wage rise and more
Updated 21 February 2018
Royal baby: Prince William and Kate expecting second child
It’s official! The Duchess of Cambridge is expecting her second child with Prince William. This news comes just two months after the couple celebrated Prince George’s 1st birthday (July 22). The BBC reports the “early announcement had been made before the 12th week of her pregnancy”, due to her morning sickness. However, the Queen and both families are very excited. David Cameron and Ed Milliband congratulated the couple via social media, along with many others. Celebrations didn’t take long as just seven minutes after the Clarence House announcement; automotive giant Nissan produced an ad featuring the expanding family. Planning a family? Why not read through our saving schemes for here
To also read the full story and get updates on the Royal Baby announcement click here
Rail fare increase set to be capped
George Osborne has announced that the annual rail fare increase this New Year will be capped. The report comes after Osborne and the Major of London, Boris Johnson, agreed to cap the fare rise at 2.5% rather than its original 3.5%. It has been reported that the “annual price hike has been capped in line with inflation”, which means over 200,000 annual ticket holders will save nearly £80 next year. This is great news for ticket holders travelling into London for work, as their fares can be £4,000+ annually. George Osborne also announced that he will be scrapping the ‘flex’ system which previously allowed train companies to raise fares 2% above the set national fare. Travel is an essential expense that commuters have to budget for which is why the cap comes as great news. Why not use our savings planner and see where else you could save or in this case spend.
To read the Evening Standards full feature click here
Mark Carney predicts real terms wage rises
Mark Carney has predicted the UK could potentially see a rise in worker wages from 2015. In an annual conference with Trade Union delegates, Carney announced “wages should start rising in real terms around the middle of next year” and “accelerate” afterwards”. The Bank of England governor sympathised with workers mentioning they deserved more money and added unemployment should fall to 5.5%”. The BBC reports this change comes after the TUC argued wages were not keeping up with the current inflation. This resulted in TUC delegates calling for a motion to increase the minimum wage to £10 an hour. Predictions have already been made for 2017; this includes a 4% rise in the average wage and 1.7 million jobs to be created. Has the inflation stretched your finances this year? Do you see yourself needing more advice? Click here to read about our value of advice campaign here.
Read more on Mark Carney’s predictions and the wage rise here.
Couples retiring now have ‘more income and wealth than necessary’
Research conducted by the Institute of Fiscal Studies found “almost half of couples born in the 40s get more now than while they were working”. The Guardian reports more than half are even enjoying a better income in retirement than real average earnings. The study revealed “80% of couples born in the 1940s had an income at age 65 from both state and private pensions that was equal to two-thirds of their average working-life earnings, and that 40% enjoyed incomes higher than their average real working-life earnings”. When all factors are included like credit debts or mortgages, it shows that many of those who were born in the 1940s actually saved more than they needed for retirement. Cormac O’Dea, senior research economist at IFS, added“the large majority of couples reaching state pension age in recent years have more wealth than necessary to maintain their standards of living into retirement”. This is great news for soon to be retiree’s as this news comes hot off the heels of the new government guidance scheme, which allows the newly retired to receive pensions advice. If you’re about to retire make sure your well-equipped and have a look at our pre-retirement checklist
To read the full guardian feature click here