Surprisingly, interest rates didn’t rise in September, with a vote being 5:4 to keep them as they are. Inflation remains a concern for everyone, no matter their financial situation, it has seen a fall and I predict October will see another big fall. Things aren’t fixed overnight and for those with low to average levels of income given the current economic situation, it’s likely that money is extremely tight and savings depleted.
The same is now true of those who would ordinarily consider themselves financially comfortable. Their income, whilst still sufficient, perhaps doesn’t leave as much at the end of the month, and dipping into savings is becoming more frequent than before.
Individuals who perhaps consider themselves as ‘wealthy’ or fall into the high-net-worth category aren’t exempt from economic hardship either. The impact on investment returns has been a blow to those using them to provide extra or total income.
So where does this leave future incomes? Despite no one being able to predict the future with total certainty, it now looks as if we may have reached the top of the rising interest rates, and inflation and mortgage rates are slowly coming down.
Pensions are a hot topic right now, especially for those with large pensions that need immediate action. In April this year, the Government changed lifetime allowances (LTA’s).
From April 2024, the LTA will be abolished. The amount you can take from your pension tax-free won’t change, because it’s capped. However, there’s a strong possibility that new Governments could reintroduce the LTA, so the window for action may be quite small.
Hopefully, the stock markets will start improving soon, but it could still be worth reviewing your funds now. They should be reviewed regularly anyway, not just at review time.
If you have a large pension, speak to one of our Chartered and Certified experts to find out what protections are in place and explore your best options.
Due to the various nuances that can lead to poor decision-making, some with no possible reversal, it’s always better to seek the help of professionals rather than tackle it alone.
Please call our experts on 01480 869466 or email us at email@example.com for a free initial, no obligation chat.
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