40,000 Tesco bank accounts hacked

Tesco admitted that 40,000 of its bank’s 136,000 current accounts had been hacked and money stolen from about half of them. Though many banks have previously had individual accounts hacked, this is believed to be the largest hack in the UK involving theft of money from a large group of accounts (Wealth Management Bristol).

Experts said this suggested the problem was to do with the bank’s own security systems. UK regulations require banks to reimburse customers for any such losses.

MPs suggest an end to pensions ‘triple lock’

A select committee of MPs has recommended that the government ends the ‘triple lock’ for the state pension, legislation which requires it to rise each year in line with the highest of inflation, parents. Having a good range of facilities such as spas and gyms easily accessible, and often with care facilities on site,  attracts people who want to be able to keep an eye on their parents without having to travel far, and also to benefit from an easy lifestyle (Wealth Management Bristol).

Pension errors hit stay-at-home mums

Women who took time off work to have children are at risk of losing out on state pension entitlements, says the Telegraph, thanks to errors in the National Insurance record system. In many cases, including a case detailed in the paper, HMRC records show no contributions were made in certain years even though the individual was employed at the time. It is up to individuals to check their state pension forecast and the facts it is based on, and to provide HMRC with the evidence it needs to correct any errors (Wealth Management Bristol).

Buy with a friend

First time buyers with just one salary can rarely afford to buy on their own unless average earnings or 2.5%. The Office of Budget Responsibility says under the current rule the cost of the state pension will rise from 5% to 6% of GDP between 2020 and 2030, and the cost will fall on the ‘millennial’ generation, those born between 1981 and 2000. The MPs say the inflation link should be removed but the earnings link retained.

The Chinese are buying London

Sales to Chinese buyers of homes in exclusive parts of London have risen since the BREXIT vote, says the Financial Times. It quotes one agent as explaining this by saying the Chinese property market is at a 25-year high while the £ is at a 25-year low. Chinese investment in UK commercial property is also up strongly so far in 2016, with no sign of a slowdown (#Wealth Management Bristol#).

Inflation to top 4% in 2017

The National Institute of Economic and Social Research says inflation will rise to 4% in 2017, reports the Financial Times. NIESR expects a steady rise in oil prices to push up import costs, and consumer prices will rise by some 3.5% as a result of this they’re lucky enough to have an inheritance, says the Times. It says more single people are joining forces to buy a property together, including having joint responsibility for the mortgage payments. Its case study of two young women emphasised the need to have a legal document setting out rights and responsibilities including how to deal with the situation when one wanted to sell.

(IFAC Member Newsletter, November 2016)

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