Your magazine from Radiant Financial Group - for your brighter future
to Individual Savings
in 2024: Why savers and investors now have a more flexible approach
Let’s get physical Britons procrastinate on making a Will
How to improve your mortgage application prospects Enhancing pension contributions for a brighter future
How to be the best versions of ourselves
Dubai’s newest mega-hotel
The Greek philosopher Heraclitus is credited with the idea that the only constant in life is change. And therefore, we all face change in our professional and personal lives frequently.
Socio-economically, the change in government is likely to have a significant influence on our daily lives – twas ever thus – particularly in a two-party democracy with differing priorities. This is not a political statement, purely an observational one.
I am not capable of being a Finance Director (too many numbers), but I do understand the prerequisites of balancing the books – you either earn more or you spend less. From its pronouncements to date, the likelihood is that the new government will focus more on the first lever to try and achieve this objective.
And so, we are entering an era
of financial change with the aim, no doubt, to stimulate economic activity and drive growth to create a sustainable and selffinancing ecosystem. Time will tell as to whether this objective is achievable.
In the interim, for however long that ‘interim’ is, sluggish rates of economic growth will likely have to be supported by higher taxation in order to balance the books. There are 21 taxes currently at play in the UK with a “commitment” from the new Government not to change 3 of them. This leaves plenty of scope for reform.
• We already know that VAT on School Fees is on the agenda, likely from next year
• Pensions are a likely target with the potential roll-back to the Lifetime Allowance and an easy, less visible, tax gain would be to limit contribution tax relief to the basic rate
Simon Cogman-Hellier Editor
• Capital Gains Tax also offers plenty of scope, as does Inheritance Tax.
• And of course, Council Tax is also a potential target together with many other “duties” overdue a review. Taxation rates do not need to change for the overall taxation take to increase –alterations in allowances both in size and number can make a material difference to our personal tax bills.
I have no crystal ball, and in any event, I am not a Financial Planner, but I am guided by the proverb ‘a bird in the hand….’ to provide but one piece of advice here – maximise your benefit from the taxation system currently in force by reviewing and updating as necessary your financial plans with a qualified adviser, to be ‘match fit’ also for changes that will surely follow
Radiant Financial Planning, part of the Radiant Financial group is a specialist provider of financial advice, tax planning, employee benefits and business consultancy services.
Our clients include large and small businesses, entrepreneurs, owner-managers, senior executives and individuals.
Our approach extends beyond traditional financial advice. Our team of experienced planners and consultants will help you to make life changing decisions, empowering you to take control of your financial future, both personally and in your business.
14% of those aged over 55 have found themselves re-entering the workforce
In recent times, a significant portion of retirees, specifically 14% of those aged over 55, have found themselves re-entering the workforce, driven by the inadequacy of their pensions to meet rising living costs, according to new research[1].
This phenomenon, further compounded by an additional 4% contemplating a return to employment, highlights a growing trend among older generations striving to sustain their standard of living in retirement. Notably, this trend is more prevalent among men, with 16% returning to work compared to 12% of women.
A closer examination reveals that financial constraints are the primary motivator for this shift, with nearly two-thirds (64%) of those who have ‘unretired’ citing income issues as the key factor. An alarming 32% reported that their living expenses had escalated beyond expectations, necessitating a return to employment. Additionally, 24% acknowledged that their pension was insufficient for a comfortable livelihood. Interestingly, a sizeable group (31%) expressed a desire to enhance their retirement income to afford luxuries, illustrating a blend of necessity and aspiration driving the unretirement wave.
This trend coincides with the Pensions and Lifetime Savings Association’s (PLSA) recent adjustment to the anticipated retirement income, marking a 34% increase in the projected annual income required for a moderate lifestyle.
This adjustment, from £23,300 to £31,300, reflects rising costs in essential areas such as food, energy and transportation, alongside an additional allocation for assisting family members facing financial hardship. Such recalibrations underscore retirees’ evolving challenges, prompting many to reevaluate their retirement and financial strategies.
However, financial necessity is not the sole driver behind the decision to return to work post-retirement. A considerable number of retirees are motivated by the desire to alleviate feelings of boredom (39%), loneliness (19%) and dissatisfaction (15%).
These emotional factors and the financial pressures exerted by the current economic climate are compelling retirees to reconsider their retirement plans. In response, more than one in ten (12%) are postponing retirement, while 3% are taking on additional employment to bolster their income.
Ensuring you fully utilise your employer’s pension plan is a key strategy in preparing for retirement. If your employer offers a matching scheme for pension contributions, it’s wise to contribute the maximum amount they are willing to match. This effectively doubles your investment towards your retirement savings, leveraging your employer’s contribution to enhance the growth of your pension pot.
Moreover, if you’re anticipating
a bonus, allocating a portion or the entirety to your pension can be a tax-efficient move. This boosts your pension savings and reduces your immediate tax and National Insurance contributions, allowing you to retain a more significant share of your earnings over the long term.
The path to a substantial pension pot is paved with strategic decisions at key financial milestones. Consider upping your pension contributions when experiencing a pay increase, benefiting from a tax reduction or finding yourself with surplus savings.
Adjusting your contributions in line with positive changes in your financial situation can make the increase feel less impactful on your disposable income while significantly boosting your pension in the long run. This approach is particularly beneficial for younger savers, for whom even small increases in contributions can compound into a considerable sum by retirement.
A deeper understanding of the tax implications of pension contributions can lead to more efficient saving strategies. Directing parts of your income or bonuses into your pension plan can reduce your taxable income, which can lead to immediate tax benefits.
This strategy decreases your tax liability and secures a more significant portion of your earnings for retirement. The underlying principle is straightforward: save more now, pay less tax today and accumulate a larger retirement fund for the future.
Chris Lomas Director of Radiant Financial Planning
Adjusting your contributions in line with positive changes in your financial situation can make the increase feel less impactful
Are you looking to optimise your retirement
planning?
Additional
and tailored
advice are invaluable for those looking to navigate the
and optimise their
To delve deeper into maximising your pension potential we recommend speaking to a
Are you in the market for a new mortgage?
Unfortunately, many individuals face barriers when it comes to securing financing for their dream home. For the vast majority of individuals, the quest to purchase a home begins with the daunting endeavour of securing a mortgage.
Navigating the complexities of the mortgage application process can prove to be a formidable challenge. However, it need not be an insurmountable task.
You can take steps to improve your mortgage eligibility and increase your chances of approval. In this article, we’ll explore ways to do so. Whether you’re a first-time buyer or a seasoned homeowner, these tips can help you navigate the mortgage application.
A critical first step before embarking on property hunting
is to ascertain your financial position. This is imperative because lenders will scrutinise your credit history to evaluate your creditworthiness and empower you with knowledge of your financial status. Access to your credit report can unveil any overlooked accounts or fraudulent activities.
Furthermore, understanding your credit score enables you to identify strategies to enhance it. Such strategies may encompass reducing existing debts, ensuring accuracy in your address and electoral register details, closing redundant accounts, punctually paying bills and refraining from initiating new credit lines to bolster your score.
The mortgage application process demands a comprehensive array of documents. Being prepared with these documents, which typically
include identification, proof of income, bank statements for a specified period and evidence of your deposit, can expedite the application process and mitigate delays.
It is of paramount importance to furnish your mortgage broker with accurate information. Engaging in open dialogue, seeking elucidation on any ambiguities and keeping your lender apprised of any financial changes are essential practices. Such transparency and collaboration not only avert misunderstandings but also ensure the smooth progression of your application, empowering you throughout the process.
Securing pre-approval for a mortgage by obtaining an Agreement in Principle (also
known as ‘Decision in Principle’) before commencing your search for a property is highly advisable. Pre-approval enhances the credibility of your offer in the eyes of sellers and clarifies the amount you can borrow. This clarity is invaluable during property negotiations and when making an offer, especially in a competitive market.
Acquiring a home represents a significant financial obligation, necessitating forward planning. When selecting a home and mortgage, consider your career trajectory, family aspirations and potential lifestyle modifications to ensure compatibility with your near and foreseeable future.
Evaluating whether the property and loan terms align with your long-term objectives and offer the necessary flexibility as your life circumstances evolve is crucial.
Need guidance on navigating the complexities of improving your mortgage application chances?
Always speak a mortgage specialist if you require assistance or more detailed information to navigate the complexities of improving your mortgage application chances.
Navigating the complexities of the mortgage application process can prove to be a formidable challenge. However, it need not be an insurmountable task.
Alan Holmes Head of Mortgages
Asuit, tie, and busy schedule should not prevent you from maintaining your fitness while you travel.
But for some people, a business trip can mean leaving reality behind. Busy schedules, calorieladen meals, and unfamiliar surroundings can all make healthy lifestyle maintenance challenging during business trips.
That often includes healthy eating and exercise habits. Business travellers with a relaxed mindset while on a work trip tend to gain weight and feel unhealthy when they return home. It’s important to take steps to ensure your health while travelling.
To help you stay fit and well on a business trip, we’ve put together nine top tips:
Write down or, at the very least, consider how you can make
healthy choices on your trip. Think about things like when you’ll have a chance to fit in exercise, what types of workouts you could do, what dishes you could order at restaurants, etc. It doesn’t need to be too specific, but by spending 10 minutes writing this down, you’re setting an intention for your trip. So write your business trip ‘shopping list’, if you will.
Make sure you allocate your time by adding it to your travel itinerary and calendars to help you commit to working out.
Use your fitness time to explore the city by walking or running! You can get to know your surroundings and hopefully find some fabulous spots to visit later on, and you can kill two birds with one stone by ticking off your exercise for the day.
You could even take a run by
planning your route to detour around your meeting venues.
Most hotel gyms are fully equipped with the latest hightech, functional equipment and offer amazing views. If you can choose your hotel, opt for one with a gym.
Commit to using it at least every other day. Don’t feel the need to spend hours in the gym, 20 - 30 minutes can make a huge difference, as long as you put in maximum effort.
HIIT training (High-Intensity Interval Training) can also be a great way to work out quickly.
You may be unlucky to stay in a hotel without a gym or one that is closed for renovations, but this is not the end of the world.
Great workouts do not require any equipment.
Have a backup plan using only bodyweight exercises. These can be done anywhere, even in your hotel room, and they’re extremely effective. Keep these workouts short to maximise your time.
Partake in high-intensity bodyweight circuits. These not only burn more calories and build muscle but also improve stability and flexibility, giving you great results in a shorter period of time. Simple exercises like pushups, burpees and squats can be done anywhere, and you can also try using your suitcase as a weight.
The simplicity of intermittent fasting makes it a great strategy for business travellers to lose weight, especially those with a hectic schedule and are used to not eating for long periods.
Even the time you are sleeping, from your last meal until the first the next day, counts as a fasting period. For intermittent fasting, you extend that period to 16 or even 24 hours; this extends your fat-burning time.
Research shows that the benefits are not only limited to fat burning but also help you focus at work because there are no blood sugar spikes or crashes. It has also been linked to diabetes prevention.
Keeping your essentials to a minimum allows you to carry some portable exercise equipment.
Taking a huge kettlebell in your hand luggage isn’t realistic, but there are now some amazing lightweight weights and
kettlebells you can take with you! They take up minimal space and weigh next to nothing. All you need to do is fill them with water or sand to your desired weight when you get to the hotel.
Skipping ropes offer some cardiovascular benefits, and resistance bands are also lightweight and easy to transport.
For those who lack the motivation to exercise on their travels, an app could be the answer. With an abundance of apps giving free workout plans and linking you with an instructor can help you to keep track and stay motivated.
You can set yourself daily, weekly, and monthly fitness goals. Breaking them down makes them appear more achievable.
There are many other small changes you can make to help keep you healthy when travelling. Ensure you pack healthy snacks, nuts, fruits, etc., and download fitness and healthy eating apps to track your progress. Make sensible choices when eating out and ensure you are getting enough sleep. These, along with utilising the hotel gym, developing a reliable bodyweight workout, and practising intermittent fasting, will all help you stay healthy while travelling.
Use your fitness time to explore the city by walking or running! You can get to know your surroundings and hopefully find some fabulous spots to visit later on
Establishing a thorough wealth strategy is key to ensuring financial readiness
The financial implications of care in later life are often underestimated, leaving many unprepared for the substantial costs associated with care homes. Establishing a thorough wealth strategy is key to ensuring financial readiness for long-term care needs.
In England, individuals with assets exceeding £23,250 are currently required to self-fund their care home expenses. However, a new government proposal aims to introduce an £86,000 lifetime cap on care fees starting from October 2025, designed to simplify care fees planning and potentially reduce the financial burden on individuals.
The proposed cap on care fees, often referred to as the ‘social care’ cap, intends to limit the personal financial contribution towards long-term care costs. At first glance, the cap appears to offer considerable relief; after an outlay of £86,000, further personal care costs would ostensibly be covered by one’s local authority.
Yet, it’s crucial to recognise that this cap exclusively pertains to personal care costs, leaving individuals responsible for additional expenses such as accommodation and living costs. Moreover, the intricacies of what expenditures count towards the cap mean that many may find themselves contributing significantly more than £86,000 for their care.
The government’s proposal extends beyond the care fees cap and includes adjustments to the
capital thresholds associated with means-tested social care funding. Key changes the government is proposing from October 2025 are introducing an £86,000 ‘cap’ on how much an individual has to spend on personal care costs over their lifetime and increasing the upper and lower capital thresholds for means-tested social care funding to £20,000 and £100,000.
At present, the social care upper limit is £23,250, and the lower limit is £14,250 in England. If your assets are above £23,250 and you don’t qualify for NHS support, you must pay full care fees. If your assets are below £14,250, then the local authority will pay for your care costs. Any income you do have will be used to pay part of your care fees.
The thought of requiring long-term care and the financial implications that come with it is often met with apprehension. The unpredictability of needing social care in later life, coupled with potential changes in care requirements, underscores the importance of early financial planning.
Securing professional financial advice and incorporating care costs into your retirement plans can demystify the expenses involved, enabling you to address them tax-efficiently. This preparatory step clarifies cost implications and strategies for maximising tax benefits.
for care costs
Addressing care home costs effectively involves a blend of strategies, including tax planning and considering annuities for care fees. Tax planning for care
Don’t hesitate in speaking to your financial planner should you need expert guidance and support in planning for future care. An expert will help you navigate the intricacies of care planning and financial management, ensuring your financial wellbeing and security in later life.
homes focuses on implementing measures to manage the tax implications of financing and affording care home expenses. The goal is to optimise financial resources while ensuring necessary care is received without incurring excessive tax liabilities. Alternatively, annuities for care home fees offer a financial mechanism to cover retirement care costs, providing a regular income stream in exchange for a lump sum payment to an insurance company.
Annuities serve as a viable option for managing care home fees, offering a lifetime income following an initial lump sum payment, akin to purchasing any other annuity. The cost and subsequent income are determined by an assessment of medical records and expected lifespan, ensuring the arrangement meets the individual’s needs.
Notably, if the annuity income is paid directly to a registered care provider, it may be taxexempt, further enhancing its appeal. These financial products also afford flexibility, including provisions for spouses and adjustments for inflation, adding a layer of security to your financial planning for care.
If your assets are below £14,250, then the local authority will pay for your care costs. Any income you do have will be used to pay part of your care fees.
Tony Riley Regional Manager
Individual Savings Accounts (ISAs) offer a versatile and tax-efficient way to save for the future, whether for yourself, your children or grandchildren. Now that we have entered the new financial year, on 6 April 2024, significant changes to ISAs have been introduced.
Since 6 April, savers and investors have had a more flexible approach to using their ISA allowance. For the first time, individuals can open multiple accounts of the same type of ISA within a single tax year, from 6
April one year to 5 April the next, provided they do not exceed the annual ISA limit. This marks a departure from previous rules, which annually restricted savers to one account per ISA type.
Partial transfers and the British ISA
In addition to this newfound flexibility, the rules now permit partial transfers of funds from current tax year ISAs into different types of ISAs, enhancing the ability to tailor savings strategies to personal needs. Furthermore,
the government has proposed a new ‘British ISA’ featuring a separate £5,000 allowance aimed at investments in UK-based companies on the UK stock market.
The Chancellor’s recent Spring Budget introduced the British ISA, aimed at enhancing the current £20,000 annual ISA limit. The Government consulted on the design and implementation of this new ISA, which concluded on June 6. They will now review the feedback and establish the final regulations. These rules are expected to be revealed later in
2024 at the earliest. Following this, providers will need time to develop the new product, making April 2025 the soonest possible launch date. However, the British ISA’s future will depend on both political parties’ commitment and the outcome of the upcoming general election.
Diverse spectrum of ISAs
The ISA regime offers a variety of options to cater to different financial goals and risk appetites. Whether prioritising safety, growth or a mix of both,
there’s an ISA type to match most requirements. From Cash ISAs, known for their simplicity and tax efficiency, to Stocks & Shares ISAs, which offer the potential for higher returns albeit with increased risk, choosing the right ISA depends heavily on individual circumstances.
Cash ISAs serve as a cornerstone for risk-averse savers, providing a straightforward, tax-efficient haven for cash savings. Cash ISA products can be easy access accounts that allow immediate withdrawals or fixed rate accounts that reward savers for committing their funds for a predefined period. Although these accounts can offer both higher and lower interest rates typically offer lower interest rates than standard savings accounts, they present a valuable tax shield, especially for those who have maximised their savings allowance or anticipate doing so.
The allure of Cash ISAs lies in their tax advantages. Interest earned within these accounts does not contribute to the saver’s personal savings allowance, thereby offering a tax-efficient growth environment for savings. This feature is particularly beneficial for higher rate taxpayers and those with substantial savings, making Cash ISAs an option despite potentially lower interest rates compared to non-ISA savings accounts.
Stocks & Shares ISAs, sometimes referred to as ‘investment ISAs’, present an opportunity for individuals to diversify their investment portfolio across a broad spectrum, including collective investment funds, Exchange Traded Funds (ETFs), investment trusts, gilts, bonds, and stocks and shares. This form of investment carries an inherent risk since the value can fluctuate significantly; however, historically, the stock market has offered returns that surpass those of traditional savings accounts over extended periods.
Investors can choose investment funds within a Stocks & Shares ISA, where funds are amalgamated with those of other
investors and managed by a professional fund manager, diluting the risk associated with individual investments failing.
Proceeds from Stocks & Shares ISAs are tax efficient. This encompasses both capital gains and dividends derived from the investments within the ISA. The convenience of not having to report these investments on a tax return simplifies the investment process, making Stocks & Shares ISAs an appealing starting point for newcomers to the investment world.
The Lifetime Individual Savings Account (ISA) presents a unique opportunity for individuals aged between 18 and 40, potentially benefiting your children or grandchildren. For each pound deposited into the account, the government offers an additional 25p, tax-free. With an annual contribution limit of £4,000, savers can receive a maximum bonus of £1,000 per year.
This fund can be used to purchase a first home worth up to £450,000 or for retirement savings, functioning similarly to a pension scheme. It is important to note that funds can be freely accessed after the age of 60 to supplement retirement income. However, early withdrawals for other purposes incur a 25% penalty.
The Lifetime ISA is available in two forms: Cash ISA and Stocks & Shares ISA. The market for Cash ISAs within this category is limited, with only a handful of providers. The £4,000 contribution towards a Lifetime ISA is counted within the broader £20,000 annual ISA allowance.
Turning our attention to Junior ISAs (JISA), these are designed for individuals under the age of 18. This financial year allows for an investment of up to £9,000 in either cash or stocks and shares. Access to the funds is restricted until the beneficiary turns 18, at which point full control over the account is granted. From the age of 16, they can manage the account, making it an ideal option for those looking to foster financial independence in their youth. From the start of the 2024/25 tax year,
Are you contemplating opening an ISA or transferring
From the growth-focused Lifetime ISA to the foundational Junior ISA, understanding the nuances and options available is crucial for maximising benefits. Discuss your situation with a financial planner if you are contemplating opening an ISA or transferring between accounts to ensure you navigate all options to secure your financial future.
Cash ISAs serve as a cornerstone for riskaverse savers, providing a straightforward, tax-efficient haven for cash savings.
the minimum age to open a Cash ISA increased to 18.
ISA transfers
The flexibility to transfer across different ISA providers and types (from cash to stocks and shares or vice versa) enhances the appeal of ISAs. However, verifying transfer policies with your chosen providers is critical, as not all permit transfers. Direct withdrawals and transfers should be avoided to maintain the funds’ tax-efficient status. Instead, the recommended approach involves initiating the transfer through the receiving provider, who will manage the process on your behalf through a straightforward form.
When it comes to managing the financial aftermath of a loved one’s passing, understanding the nuances of how Individual Savings Accounts (ISAs) can be inherited is key. An ISA can be transferred to a surviving spouse while retaining its coveted tax-free status, offering a silver lining during such difficult times.
However, it’s important to note that no further contributions can be made to the ISA once the original owner has passed away. Nevertheless, any increase in account value during the probate period remains exempt from tax. For the surviving spouse, this transfer includes an additional ISA allowance, which is calculated
based on the higher of two values: the cash or investments inherited or the market value of the ISA at the time of the original holder’s death.
Non-spousal beneficiaries
The situation becomes markedly different when ISAs are bequeathed to beneficiaries other than the spouse. In these instances, the value of the ISA may fall within the scope of Inheritance Tax (IHT), which is levied at a rate of 40% on portions of the estate exceeding the current £325,000 (2024/25) IHT threshold. This significant tax implication underscores the importance of proactive estate planning to effectively navigate the potential fiscal impact.
Adrian Tomaino Regional Manager
This article does not constitute tax or legal advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional advice. The value of your investments can go down as well as up, and you may get back less than you invested. The tax treatment is dependent on individual circumstances and may be subject to change in future. The financial conduct authority does not regulate tax planning.
Are you paying more than you need to on your mortgage?
If you are on a standard variable rate, it is time to consider your options
Purchasing a home is often the most significant investment individuals make in their lifetime. Most buyers rely on securing a mortgage to facilitate this purchase and experience profound relief once the mortgage process is successfully navigated
But are you among hundreds of thousands of mortgage holders on a standard variable rate? Also known as ‘reversion rates’, SVRs are lenders’ default rates that people tend to move on to if their fixed period ends and they do not remortgage onto a new deal. Lenders can change the rate at any time, and you may see a rise when the base rate increases, although they can go up by more or less than the Bank of England’s move. Borrowers must be careful as the rates are often higher than the lender’s fixed rate or tracker alternatives.
Typically, people on SVRs are either unaware they are on them or worried lenders will pull their mortgage due to a change in their financial situation. Alternatively, they may be concerned that if they returned to their lender for a new fixed rate, their finances wouldn’t allow them to remortgage, so they continue on a higher SVR. In 2019, the Financial Conduct Authority introduced modified mortgage assessment criteria for borrowers based on their payment history rather than affordability.
What can you do if you are on an SVR? First, it is worth approaching your lender or speaking to a professional mortgage expert to establish your situation and whether a switch might be possible. Establishing
affordability is vital for any mortgage application or product switch. It’s essential to consider the options if you are concerned you fall outside these parameters, which the current cost of living crisis may be causing.
These days, lenders typically allow borrowers to switch their mortgage rate to a new one without additional underwriting, avoiding new affordability checks. If moving to a new lender may prove challenging, there could be an option from the current lender that could still prevent the need to pay an SVR and wouldn’t require any new affordability assessment if switching on a likefor-like basis.
Another option may be switching to the lender’s tracker rate, which may be lower than an SVR and doesn’t charge penalty fees for switching off the product to a fixed rate when the time is right. Any borrowers whose current fixed rate deal is ending potentially face much higher costs and should explore their options as soon as possible. Those who have agreed to buy a property may also want to check their borrowing capacity and monthly payments and consider locking in a deal.
For those looking to remortgage, it’s essential to compare rates to secure the option of a new rate. Anyone with a fixed rate deal ending within the next six to nine months should look into the most competitive rates they can obtain – and consider locking in a new deal. Often, there is no obligation to take it. If you plan ahead, it is
possible that they may fall by the time you need the mortgage.
Most mortgage deals allow fees to be added to the loan and only charged when it is taken out. By doing this, borrowers can secure a rate without paying arrangement fees. We can discuss whether you are obliged to take the rate or could shift to a cheaper deal if rates fall before you take the mortgage out. Those with home purchases agreed should also aim to secure rates as soon as possible so they know exactly what their monthly payments will be.
Home buyers should beware of overstretching themselves and be aware that house prices may fall from their current levels, as higher mortgage rates limit people’s borrowing ability and buying power. Are you paying too much for your mortgage?
Radiant offer a free Mortgage Monitoring Service which checks all market rates 24/7 and will alert you whenever there is a potentially better deal available to you.
Home buyers should beware of overstretching themselves and be aware that house prices may fall from their current levels, as higher mortgage rates limit people’s borrowing ability and buying power. If you’re navigating the complex world of mortgages and require further guidance or information, do not hesitate to discuss your options with our highly experienced team to ensure you make informed decisions about your future.
Alan
Holmes
Head of Mortgages
Recent developments have seen the government introduce a Lifetime Provider model for workplace pensions, a move that has sparked considerable interest and debate. Findings from a recent survey reveal a striking preference among employees for their employers to take the lead in selecting their workplace pension provider.
A significant 69% of respondents favour this approach, with only 31% preferring to make the choice themselves. This preference skews even more strongly among women, with 75% opting for employer selection compared to 63% of men[1]. Furthermore, age plays a critical role in these preferences, with 85% of those aged 55 and above preferring their employer to choose, highlighting a generational divide in attitudes towards pension provision.
The research also sheds light on employees’ confidence levels in selecting a pension provider, with 55% expressing minimal confidence in their ability to choose effectively. This lack of confidence contrasts sharply with
the 19% who feel extremely or quite confident in making such decisions. Notably, men are more likely to feel confident (26%) than women (10%), underscoring a gender gap in confidence levels.
When it comes to the skills and knowledge needed to compare and select the right workplace pension scheme, only 37% believe they possess the necessary skills, while 31% feel they do not. This gap in self-assessed proficiency is particularly pronounced between genders and across age groups, with younger savers more likely to express confidence in their abilities.
These findings underscore the critical role that employer support plays in guiding employees towards high-quality pension provision. The data reveals not just a preference for employer-led selection but also highlights significant disparities in confidence and understanding of pension schemes across different demographics.
As the sector explores the
Need further guidance on selecting or managing your workplace pension scheme?
Speak to a financial expert if you require further information or guidance on your workplace pension scheme.
implications of the Lifetime Provider model, it’s essential to address these disparities to ensure all savers receive the support they need to achieve positive retirement outcomes. This is especially pertinent for those who prefer not to choose their own provider and those who may overestimate their ability to make informed decisions.
The research highlights the complex landscape of employee preferences, confidence and skills regarding workplace pension selection. As we move forward with the Lifetime Provider model, employers, policymakers and the pensions industry will need to work together to address the needs and concerns of all savers.
Ensuring that employees have access to high-quality pension schemes supported by their employers will be key to delivering positive retirement outcomes for the UK workforce.
Adam Jones Corporate Team Leader
Ensuring that employees have access to high-quality pension schemes supported by their employers will be key to delivering positive retirement outcomes for the UK workforce.
As we embark on the new tax year, it presents an opportune moment to review your pension savings strategy, setting a solid foundation for future financial stability. Early attention to your private pension at the onset of the fiscal year is not just about cultivating beneficial saving habits; it’s also about ensuring you fully exploit the benefits and allowances available to you.
Delaying until the end of the tax year might seem convenient, yet acting early and promptly in this new tax year allows your investments more time to grow.
Leveraging the power of compound growth can significantly bolster your pension pot and, by extension, your retirement prospects.
The annual pension allowance represents the maximum sum that your employer, you as the individual and any external parties can contribute to all your pension schemes within a tax year without triggering a tax charge. As established last year, this cap is set at £60,000 or 100% of your annual earnings, depending on which is lower.
For those without earnings, the maximum tax relievable contribution would be £3,600 gross, and for individuals who have commenced withdrawals from their pension funds, they might face the Money Purchase Annual Allowance, lowering their allowance to £10,000. If your financial situation permits, maximising your pension contributions early in the tax year
enables you to fully utilise the annual allowance and potentially reduce your tax liability if your earnings are equal to the annual allowance or more.
Tax relief stands as a compelling incentive, rendering pension plans amongst the most tax-efficient vehicles for retirement savings. For the majority of UK taxpayers, this equates to a government top-up of 20% on pension contributions, effectively reducing the cost of a £100 addition to your pension to just £80 from your pocket.
Higher and additional rate taxpayers may be entitled to further relief, though claims beyond the basic rate require a self-assessment tax return. It’s worth noting that some workplace pensions may apply tax relief differently, such as through salary sacrifice schemes, so it’s advisable to verify the specifics with your employer.
Workplace pension schemes significantly enhance your ability to save for retirement, with compulsory contributions from both you and your employer. A minimum total contribution of 8% of your qualifying earnings is required, including at least a 3% contribution from your employer.
Some employers may be willing to match your contributions up to a certain level, potentially doubling the investment in your retirement fund. Investigating whether increasing your contributions could lead to higher
employer contributions is an astute strategy for maximising your pension growth.
In the realm of financial planning, particularly regarding retirement savings, the concept of bonus sacrifice stands out as a strategic manoeuvre. Employees who receive work bonuses have the opportunity to allocate a portion or the entirety of these bonuses directly into their pension schemes.
This approach can lead to substantial savings on both tax and National Insurance contributions, effectively allowing more of the bonus to contribute towards longterm retirement savings.
The tax year 2024/25 offers individuals a tax-free Personal Allowance of £12,570, a crucial figure in personal finance management. However, this allowance decreases by £1 for every £2 of income above £100,000, ultimately disappearing once income surpasses £125,140.
By strategically contributing to your pension, you can lower your taxable income and potentially reclaim any lost personal allowance. This results in receiving tax relief at an effective marginal rate of 60%, a significant advantage for your pension contributions.
Adjustments announced in
the March 2024 Spring Budget have positively impacted the High-Income Child Benefit Charge threshold, now raised to £60,000 from 6 April 2024. With the complete cancellation threshold also increased to £80,000, fewer families will find their Child Benefit reduced or nullified.
Enhancing pension contributions can effectively diminish taxable income for those with earnings within these brackets, thereby retaining Child Benefit entitlements. Even for earners above £60,000, applying for Child Benefit to accrue National Insurance credits remains beneficial, which is vital for the State Pension.
Adrian Tomaino Regional Manager
Workplace pension schemes significantly enhance your ability to save for retirement, with compulsory contributions from both you and your employer.
your pension?
Navigating the complexities of pension contributions and tax benefits requires careful consideration and professional financial advice. We recommend you speak to a financial planner for further clarification or if wish to explore more personalised financial strategies to enhance your pension.
Time to be more productive, motivated and live a life of meaning!
The summer months are the perfect time to focus on yourself, reflect, and dedicate time to selfimprovement. We all want to be the best versions of ourselves, to be happy, more productive, more motivated, and to live a life of meaning.
But sometimes, we need guidance. If you’re looking for some books that could help, you are certainly not alone. But how do you decide which book is best for you? With hundreds of thousands of titles, it can be a challenge, and picking the one most recently published is not always the best strategy.
To help, we’ve curated our own selection of books we hope you’ll enjoy reading this summer.
Power of Habit: Why we do what we do in life and business:
Exploring the science behind habits, Duhigg explains how to improve and eliminate them. It is now considered the bible in terms of habit. Originally a business reporter for the Times, and now a New York Times bestseller, Duhigg’s research into the concept of human behaviour and the ways we can adapt it is a truly inspiring read.
Over 80 million copies have been sold of this title. Hill interviewed highly successful business moguls of his time and identified key laws and habits that drive success. Among these were desire, faith, persistence, and the suppression of doubt and negativity. It remains a classic. This read has been at the top of the best-selling self-help books list for decades.
Carnegie focuses on the relationship behind networking as opposed to the transactional and impersonal way it is usually done. His book is seen as a bible for improvement to social interaction, advising you on traditional networking and securing enriched and genuine relationships. To help you succeed professionally and personally, Carnegie shows you everything from how question specification to body language can influence your success.
A highly popular book among CEOs and professional athletes, Covey looks at how making simple changes to your life can greatly impact your success. As relevant today as it was when it was first written, it will challenge you to take advantage of the differences changes can make.
How will you measure your life:
Dr Clayton Christensen
Christensen’s book started as a college talk, then was adapted into an article for the Harvard Business Review, eventually making its way to a book. He addressed his pupils about applying the principles of professional success to their personal lives, the idea snowballed, and through his book he now asks his readers to do the same. You are encouraged to write your thoughts behind what will give them a meaningful life, and the book will help discover the direction required to get there.
The 4 hour work week: Escape 9-5, live anywhere and join the new rich:
Timothy Ferris, a New York Times best-seller, entrepreneur, public speaker and podcast host, thanks this book for making him who is is today. Working on maximising his working environment, Ferris originally worked 80 hour weeks, earning an average $40,000 per annum, to hitting $40,000 a month! He managed to all this whilst only working four hours a week. This was done by outsourcing work to tech influencers and virtual assistants. Ferris believes the most effective method to increase your salary, is to decrease your workload and will help you discover how to do so.
The surprising truth about what motivates us:
Daniel
Pink tackles the idea of motivation, deviating from the traditional motivations you know. He draws on behavioural science from the past 50 years to contradict what other studies believe. Pink explores the idea that people are motivated by purpose, mastery, and autonomy rather than traditional incentives like money, helping you to look inside and really figure out what motivates you.
The story of Westover’s life is truly inspiring, highlighting that anything can be achieved, no matter the struggle. After being isolated in the Idaho Mountains and escaping her abusive family, Westover first stepped foot in a classroom at the age of 17. Westover overcame her struggles and went on to study at Harvard and earn a PhD from Cambridge; her story is admired by the likes of Bill Gates and Michelle Obama, who both gave it rave reviews.
Better Than Before: What I learned about making and breaking habitsTo sleep more,
quit sugar, procrastinate less, and generally build a happier life:
Gretchen
Rubin
Believing that our successes and failures are directly linked to the attributes and habits of our daily lives, Rubin explores the difficulty of creating a habit and the fact that once it has been created, it is hard to break. This book will help you focus on how you can better your own life by improving your habits, giving you a sense of fulfilment and happiness.
Contributing additional amounts to your pension stands to benefit you significantly in the long term
Recent research findings have brought to light a striking observation: fewer than 10% of adults in the UK contribute occasional lump sums to their pensions[1]. This statistic is particularly surprising given that such contributions could significantly amplify one’s retirement savings.
Analysis reveals that even modest lump sum investments can significantly increase the overall size of one’s pension pot due to the power of compound growth over time. For example, starting with an annual salary of £25,000 and contributing the autoenrolment minimum (5% from the employee and 3% from the employer) from age 22 could lead to a retirement fund of around £434,000 by 66 [2] .
Yet, by adding nine lump sum payments of £500 every five years from age 25 to 65, one could enhance one’s retirement savings by an additional £11,000. Those capable of making heftier contributions, such as £5,000 every five years, could see their pension pot grow to £549,000, which is £115,000 more than without any lump sum additions, not accounting for inflation.
Encountering unexpected financial windfalls, whether through bonuses, gifts or other means, often tempts immediate expenditure. Currently, many are directing these extra funds towards managing monthly expenses. However, those who are financially able to contribute additional amounts to their pension stand to benefit significantly in the long term.
Pensions offer tax efficiency and the potential to outpace both inflation and interest rates on savings accounts, making them a wise choice for securing one’s financial future. With the end of the fiscal year having passed, and with it the expectation of annual bonuses for many, allocating a portion of this windfall towards a pension could substantially impact one’s retirement lifestyle.
Employers and pension providers play a crucial role in educating individuals about the importance of long-term financial planning. It is essential to illustrate how pensions fit within a broader financial context, ensuring individuals perceive retirement savings as a key component of their overall financial strategy.
These efforts can empower individuals with the knowledge and resources needed to make informed decisions about their financial future, fostering a proactive engagement and planning culture.
Graham Clarkson Partner, Chartered Financial Planner
Pensions offer tax efficiency and the potential to outpace both inflation and interest rates on savings accounts, making them a wise choice for securing one’s financial future.
Now the weather has warmed up, it’s time to start thinking about how to celebrate summer with a selection of delicious wines. There are so many excellent high-end wines available for enjoying this season, but which ones should you try? For a luxurious and memorable experience and to make your decision easier, here is a list of the 5 top high-end wines ripe for tasting this summer.
Incredible flavour and quality
1. Château Lafite Rothschild 2011 - From Bordeaux in France this elegant red blend is made from a blend of Cabernet Sauvignon, Merlot, Cabernet Franc and Petit Verdot grapes
that have been carefully cultivated and expertly blended. The result is an exquisite nose of blackcurrant, cedar, and tobacco aromas. The palate is structured yet harmonious with a long finish of blackberries, spices, cedar and leather tones.
2. Domaine de la Romanée-Conti - This is a legendary Burgundy with aromas of blackberry, cherry, plum, rose petal and violets complemented by hints of cigar box and spice. It has a full body but remains elegant on the palate with superb length. This wine pairs well with delicately flavoured cuisine such as roasted vegetables or white meat dishes.
3. Penfolds Grange Shiraz - This
classic Australian wine has been cultivated for almost 70 years and won numerous awards over the decades for its excellence. It displays intense aromas of dark fruit, liquorice, vanilla bean and graphite notes along with creamy tannins that coat the palate . This wine pairs wonderfully with grilled meats and rich, savoury dishes.
4. Opus One 2011 - From Napa Valley in California, his renowned red blend consists of Cabernet Sauvignon, Merlot, Cabernet Franc, Petit Verdot, and Malbec grapes that have been expertly blended to produce an extraordinary nose of cassis, plum and cocoa aromas. On the palate it has ripe fruit flavors balanced by
notes of roasted coffee beans and subtle hints of oak.
5. Cloudy Bay Sauvignon Blanc - From Marlborough in New Zealand this classic white is made from Sauvignon Blanc and Semillon grapes that produce a complex nose of ripe peach, lime zest, and fresh cut grass aromas. The palate is refreshingly zesty with flavours of pineapple, mango and passionfruit, yet surprisingly light on the finish.
These are just five of the best high-end wines available, offering exquisite flavour experiences that will leave your guests impressed. With any of these options, you can’t go wrong! Enjoy exploring them during this special season. Cheers!
Now open for business, Atlantis the Royal is Dubai’s newest mega-hotel and it is one you don’t want to miss. From its luxurious facilities to its convenient location, this fivestar hotel offers something for everyone.
To start off, the hotel provides guests with an array of amenities – from a private beach and pool overlooking the Persian Gulf to a full spa offering specialised treatments. Guests can also take advantage of fine dining options in two different restaurants as well as bars serving signature drinks and cigars. The property even boasts its own nightclub.
The elegant accommodations at Atlantis the Royal range from cozy studios up to three-bedroom suites, all featuring modern decor and plush furnishings. Every room enjoys views of the city or the sea, so there’s always something to look at.
Guests can enjoy an array of activities at Atlantis
The Royal including:
Dining — With more than 20 international restaurants spread across two levels, the hotel offers plenty of dining options. From classic French cuisine to tasty Asian dishes, there is something for everyone’s palate. For a real treat, try one of the hotel’s signature dining experiences, such as dinner and drinks at the Skyview Bar and Lounge or an intimate dinner for two at The Royal Beach Club.
Adventure — Atlantis The Royal doesn’t just offer traditional tourist activities but has plenty of adventure offerings, too. From stand-up paddle boarding to snorkelling, there is something for
everyone to enjoy in or around the Persian Gulf. Several excursions are also available from the hotel, such as dune bashing, fishing trips and desert safaris.
Relaxation — After a day exploring Dubai’s sights and sounds, guests can retreat back to their rooms to relax with a spa treatment or simply soak up the breathtaking views of the Arabian Sea. Numerous leisurely activities, such as yoga classes and guided meditation sessions, are also available.
Shopping — For those looking to indulge in a bit of retail therapy, Atlantis The Royal has plenty of on-site shopping options. From luxury boutiques to designer stores and more, there is something for every shopper at this hotel.
No matter what you’re looking for during your stay in Dubai, Atlantis The Royal offers an array of activities and amenities that will make it unforgettable. With its world-class accommodations and unparalleled service, this newest mega-hotel will surely be a hit with visitors worldwide.
Whether you are looking for a fun weekend getaway or an informative corporate retreat, Atlantis The Royal is perfect for your needs. With its beautiful design and top-notch amenities, this five-star hotel will surely make your trip memorable. Book your stay today and experience the best that Dubai has to offer.
While there are many hotels in Dubai, Atlantis The Royal is one you won’t want to miss. With its modern decor, amazing amenities, and convenient location, this fivestar hotel will surely make your stay unique and informative. So don’t wait another minute – book your visit today! You won’t regret it.
identifies that over half of adults do not have a Will
Recent research has uncovered that a staggering 51% of adults in the UK have neither penned a Will nor are they in the process of doing so[1] This statistic encompasses 13% of individuals affirmatively declaring no future plans to undertake this task.
Alarmingly, a significant portion of the older demographic, with 30% of those aged 55 and above, also finds themselves without a Will, including 9% who have decisively chosen not to create one. The primary deterrent for many is the perception of insufficient assets or wealth, cited by 26% of respondents, indicating a widespread misconception about the necessity of a Will.
A considerable number of Britons, 23%, procrastinate on making a Will under the assumption that there is ample time to address this matter. Additionally, the subject of Wills, intertwined with the discomfort of contemplating mortality, deters 15% of the population. Others express reluctance to
engage with legal professionals (8%) or incur the costs of drafting a Will (14%).
The apprehensions surrounding the absence of a Will are significant; 27% fear leaving behind a cumbersome amount of paperwork for their loved ones, while 23% worry about the misallocation of their estate.
The repercussions of not having a Will extend beyond mere inconvenience. Many express concerns over the potential for lengthy resolution processes (18%) and fears of familial disputes (15%). Interestingly, a sizeable 41% of respondents claim to harbour no worries regarding the lack of a Will.
Among those who have taken the step to create a Will, 55% employed the services of a solicitor. By contrast, a smaller fraction, 16%, opted for a DIY approach, including handwritten attempts and online services. Despite the autonomy of creating one’s own Will, 61% did not seek legal or financial counsel during the process.
The hesitancy to draft a Will often stems from various reasons, including perceived time abundance, misconceptions about wealth requirement and apprehensions regarding costs or equitable estate division. Nonetheless, the importance of drafting a Will transcends these short-term concerns, offering long-term peace for your loved ones by mitigating potential burdens in unforeseen circumstances. For those who have taken the proactive step of creating a Will, it is crucial to periodically review and update it, particularly following significant life events such as divorce, to reflect current wishes accurately.
For those who have taken the proactive step of creating a Will, it is crucial to periodically review and update it
Preparing or updating your Will is crucial in securing your legacy and ensuring your wishes are honoured. It is important to have a will in place along with relevant Powers of Attorneys, which reflect your current wishes.
Tony Riley Regional Sales Manager
Greg Klar Compliance and Operations Director
platform management
The UK financial services sector and investment market can be a complex world to navigate. Behind the scenes of every trade in financial instruments, there are extensive operational processes that often involve numerous different counterparties. When you meet with your financial planner and agree upon an investment decision, multiple entities will work together to execute that decision.
An investment platform firm is at the heart of bringing these processes and entities together. The investment platform firm broadly handles the technology, investment administration, and custody required to trade in, and hold, financial instruments. The interaction between the investment platform and your financial planning team is critical to enable them to service your savings and investment needs effectively.
Modern investment platforms were created to enhance transparency, shifting the balance of power from investment managers to end-investors and their financial planners. Over the last decade or so, the investment platform industry has grown significantly, managing vast sums of client money and assets across the UK.
However, as the size and scale of these firms increased, the level of service provided to adviser firms over time has not always met the required standard many have come to expect. To address this, Radiant has partnered with Nucleus, a leading UK platform provider, to launch our own investment platform: Radiant Platform Management. What is an Investment Platform?
If you ask ten different platform professionals to define what an investment platform is, you’ll likely get eleven different answers.
Fundamentally, it’s an online portal that allows clients to view their savings and track investment portfolio performance with ease. More comprehensively, it offers the financial products, technology, investment administration,
and custodial services that enable financial advice firms to manage their clients’ savings and investments efficiently. The platform’s software helps financial planners perform their duties more effectively, giving them the time to focus on planning and investing on behalf of their clients.
A crucial function of an investment platform is to provide products that serve as “tax wrappers” for your underlying investments. These products include Individual Savings Accounts (ISAs), Self-Invested Personal Pensions (SIPPs), General Investment Accounts (GIAs), as well as investment bonds and trusts for more complex tax planning.
The platform is responsible for obtaining the necessary permissions and providing the regulatory reporting required to operate them. Here are some key characteristics of these tax wrappers:
Individual Savings Accounts (ISAs)
• Investment Options - Allows for investment in eligible financial instruments such as stocks, bonds, and collective investment funds.
• Tax Benefits - All investment growth, income, and interest can be withdrawn with no tax liability.
• Withdrawal – no restrictions on withdrawals
• Subscription Limits - Subject to annual subscription allowances, currently set at £20,000 per annum.
Self-Invested Personal Pensions (SIPPs)
• Investment Options - Allows for investment in eligible financial instruments such as stocks, bonds, and collective investment funds.
• Tax Relief - Individual contributions receive basic tax relief of 20%, applied via HMRC and credited to the pension. Higher rate and additional rate taxpayers can claim further tax relief directly with HMRC through a tax return.
• Employer ContributionsContributions can be made directly to the pension by an employer before the deduction of tax.
• Tax Benefits - No capital gains tax on growth. Income tax is only applied based on the individual’s marginal rate of tax based on their total income received in the year it is withdrawn from the pension.
• Tax-Free Lump Sum - Subject to limits, 25% of the pension value can typically be taken as a taxfree payment.
• Withdrawal RestrictionsWithdrawals are generally allowed from age 55 (increasing to 57 from 6 April 2028).
• Contribution Limits - Annual contribution limits apply.
General Investment Accounts (GIAs)
• Investment Options - Allows for investment in a wide range of financial instruments.
• Flexibility - No subscription or withdrawal limitations, suitable for those with investment needs beyond ISA and pension allowances.
• Taxation - Subject to capital gains tax on investment growth and income tax on dividends and interest.
• Reporting Tools - The platform provides tools and reporting to help investors / planners track gains and report income received.
We are delighted to partner with Nucleus, leveraging their technology and custodial resources while providing exceptional service through our experienced and dedicated internal platform team. This collaboration brings us access to the core functionality and investment products required to manage your savings and investments effectively, whilst significantly enhancing the day-today working environment of your financial planning team.
Let’s take a look at some of the key benefits this brings to our financial planning team, and to you as the ultimate beneficiary.
As a result of improving the efficiency of operational processes carried out by your financial planning team, this leads to an overall reduction in the cost of administering your savings and investments. These savings allow
us to offer clients our platform at a competitive price which is lower than many of our peers in the industry.
Consistent with any other service or products you might receive in other industries, cost cannot be the sole factor in determining what’s the best option for you which is no different to your financial planning team when administering your investments. It is critical to consider the overall value and service levels delivered by the platform in determining how best to help achieve your financial goals. At Radiant Platform Management, we have a team whose sole focus is dedicated to supporting your financial planning team at Radiant Financial Planning to improve investment administration and enhance operational efficiencies. This makes a huge difference to the day-to-day work carried out by your financial planning team, and ultimately to you.
Managing our platform allows us to influence future improvements in functionality and processes. As technology evolves, so do expectations of investment platforms. Our strategic partnership with Nucleus enables us to continually enhance the platform to meet rising standards in a way that simply wouldn’t be possible outside of this model.
Our platform includes a secure client portal, offering 24/7 access to your investment portfolio holdings and performance. Our user-friendly interface is simple, modern and intuitive, ensuring you have access to up-to-date investment information to view at your convenience.
Many clients have transitioned their investment products and assets to Radiant Platform Management, and are already benefiting from our efficiencies, competitive pricing, and advanced features.
If you are not yet a member of Radiant Platform Management and would like to learn more, please speak to your financial planner about the next steps.