Pensioners win, the young loser. The BBC website cited research by the Institute of Fiscal Studies showing that pensioners had gained at the expense of younger people since the financial crisis (Financial Advisors).
Between 2007-08 and 2014-15, there was a national average increase in incomes (adjusted for inflation) of 2%. But while pensioners got an 11% increase, those aged 31-59 saw no change in their incomes and those aged 22-30 saw their incomes fall by 7%.
London’s most expensive flat
What is said to be London’s most expensive flat is on sale at £150 million, reports the Telegraph. The flat, with 12 bedrooms, high ceilings and many period features, is in Admiralty Arch between Trafalgar Square and The Mall. It is being marketed by a developer who paid the government £60 million for a 250-year lease in 2012, and is converting the rest of the the Arch into a hotel. Stamp duty on the flat will be £16 million.
Final salary transfers to rise
A fall in the yields on government bonds since the BREXIT vote means that transfer values
from final salary pension schemes may rise even more, says the Herald. Members of these schemes get inflation-proof pensions, but cannot benefit from the ‘pension freedoms’ introduced in 2014, especially the ability to pass capital on to their heirs free of inheritance tax. The rise in transfer values mean more people may decide to transfer to free-standing schemes, where even those who employ conservative investment strategies may get almost equivalent income from their fund as well as the extra capital flexibility.
Foreign buyers tempted by London property
London estate agents say enquirers from foreign buyers about London properties have surged by 50% since the BREXIT vote, says the Mail. The plunge in sterling effectively translates into a 10% price cut for buyers using US dollars, a far bigger price cut than anything a seller would be likely to offer.
First-time buyer loans surge
There has been a big increase in the number of mortgage loans banks are making to first-time buyers, says the Mail. In both April and May over 50% of new mortgage loans made by banks were to first-time buyers, the first time this has happened for over 20 years. Lenders say the Help to Buy scheme, which reduces the deposit required by buyers, has helped more first-time buyers to secure loans.
Don’t bank on downsizing
Aiming to generate retirement income by downsizing could be a delusion, says the Mail, citing a report by insurer Royal London. It worked out how much extra income someone would get by downsizing from the average detached home to a semi-detached home. The UK average (from detached at £310,000 to semi-detached at £197,000) would leave someone with an income, including the flat-rate state pension, of £13,700, which is well below most people’s retirement income needs.
Financial Advisors Bristol
If you would like to speak with one of our Independent Financial Advisors and potentially receive financial advice, please contact us on 0117 923 7652. We are based in Clifton, Bristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.
Churchill Wealth Management Limited is located at 13 Alma Vale Rd, Bristol BS8 2HL, United Kingdom.
About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol. We provide independent financial advice, including pension advice, investment advice, inheritance tax planning and protection/insurance advice.