Autumn statement will drive the need for advice

07 Dec 2012

Autumn Statement

This week the Chancellor delivered a blow to higher rate tax payers following his decision to cut pension tax relief allowance from £50,000 to £40,000, and lifetime pension allowance to be cut from £1.5m to £1.25.   

Alistair Cunningham shared his thoughts in his guest blog for; highlighting this budget will increase the need for pension advice.  Have you been contacted by your clients?  How do you think they will be affected?  Do you agree the Autumn Statement is a good thing for advisers?  It would be great to hear your views - share your thoughts here

Meeting of minds met some of you at the 'Meeting of Minds' conference in London on Wednesday.  There were some interesting sessions running where advisers debated how to 'future proof' their businesses and discussed if 'online' was a threat to their businesses.  The consensus was that it all came down to understanding who your target clients are and what your propositions are for those segments, so you can serve them in a profitable way.  Linda Woodhall from the FSA talked us through plans to establish the FCA  - there was a clear focus on good client outcomes and ensuring advisers have sufficiently evidenced the steps they took to make this happen.

Could you or your clients be on the breadline in just 19 days?

Legal & General have produced their first ever Deadline to the Breadline Report, which shows that people in Great Britain have on average, just 19 days to survive financially, if all they had to rely on was their savings without some financial protection.

The report also looks at how this affects each region in the country (excluding Northern Ireland) and just what people are actually earning, saving and spending their money on, with some surprising findings:

  • 19 days on average, is all people have until their savings run out and they could be on the breadline financially, without some other income to rely on.
  • The feel good factor-It seems we want to spend more each week on clothes £36, alcohol and tobacco £25, than protecting the person who pays for all of this.
  • Without some financial planning, our only fall back is our savings or state benefits. Average Great Britain savings is just £1094.

Why not use Legal & General's Deadline to the breadline calculator, to help work out how long you or your clients could have.  Find out more here.



The team

Category: Pensions Tagged: Savings

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