Posts Tagged ‘Wealth Management’

Retirement incomes tumble

Posted on: January 18th, 2012 by Leighton Reed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

Expected retirement incomes have tumbled to a five year low with almost £3,000 wiped from their value, according to research from Prudential Insurance.

The survey shows that people retiring this year expect to live on an average income of £15,500, more than £1,000 less than those who retired last year and £3,100 less than those who retired in 2008.

Due to inadequate retirement savings, one in five of those due to retire this year will be forced to survive on an annual income of less than £10,000 .

Experts have attributed the fall to the recent chaos on the stock market, shrinking annuity rates, which dropped by 8% in 2011, the impact of the credit crunch, banking crisis, recession, and concerns over the Eurozone, has been reflected in the fact that expected retirement income levels have hit a five-year-low.

There are some practical steps that workers and imminent retirees can take to ensure a more comfortable retirement. For those who are still working, it has never been a more important time to save into a pension. The longer that savings are invested in a retirement pot, the greater the opportunity they will have to grow.

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End of year tax planning pointers

Posted on: December 7th, 2011 by LeightonReed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

Whether you are a business owner or a full time stay-at-home parent, there are measures you can take now to minimise your tax liability this tax year.

Income tax saving for couples

Any personal allowance (£7,475 for 2011/12) that is not used at the end of a tax year cannot be carried forward. However, couples can make use of each other’s unused allowances through methods such as transferring ownership of income generating assets (such as savings and investments). Couples can also jointly own income generating assets, where the income will automatically be split 50-50, unless otherwise specified, but the income paid must correspond to the proportion owned (this is only possible if you are married or civil partners).

Extracting profits from a company

Salary

National insurance contributions are expensive, but salary can be deducted from taxable profits in the company, so if profits are taxed at the marginal small companies rate (currently 27.5 per cent), there is very little difference between extracting profits by way of salary or dividend for higher rate taxpayers.

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Junior ISAs launch to help parents save for their children’s future

Posted on: November 4th, 2011 by Leighton Reed
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

From 1 November parents are able to open a Junior ISA account for their children at a range of high street institutions. Around six million children will immediately be eligible for a Junior ISA, with a further 800,000 children benefitting each following year.  All children under 18 who are UK residents and do not have a Child Trust Fund (CTF) will be eligible for a Junior ISA.

The limit for Junior ISAs will be set at £3,600 and to ensure that children with a CTF are not disadvantaged the CTF savings limit will treble from £1,200 to £3,600, from 1 November, aligning it with the new Junior ISA limit.

Funds in a Junior ISA will be locked-in until age 18 and roll over into an adult ISA on maturity, meaning that the accounts will help to foster a long-term savings habit among young people.

Why not follow @BroomfieldWales on Twitter to keep up with the latest information on Tax and other business and financial topics, or simply register for our monthly newsletter.