The Magical Money Tree

Reference our last blog on 06.06.2019, herewith some stats to put some flesh on the bones.

As we explained, with the ‘The Great Wealth Transfer’ over the next 30 years, an estimated £5.5 trillion (that’s 12 zeros after the £5.5) is due to be passed between generations in the UK.

Research has confirmed that the majority of those inheriting aged 30 to 60 do not have an Independent Financial Adviser, meaning that they are unlikely to make the most of the tax concessions and investment expertise available to them. This is true across the wealth spectrum, as the table below confirms.

What do you believe is the total value of the inheritance that you yourself will receive from your parents?	Yes, I have a financial adviser	No, I don’t have a financial adviser
Less than £100,000	13%	87%
£100,000 - £250,000	17%	83%
More than £250,000	33%	67%

The implication is clear. Whilst undoubtedly, there will be some instances where beneficiaries take advice, there will be many more where that’s not the case.

Tune in to the next instalment to learn more. In the meantime, we can help. Please visit our website www.pipllp.co.uk and please feel free to call us on 0113 202 9529.

The Magical Money Tree

In the recent past, you may have heard our politicians using this phrase when accusing each other about funding various political promises.

In fact, for many, The Magical Money Tree is much closer to home.

You may also have read about what some commentators are calling ‘The Great Wealth Transfer.’

Over the next 30 years, an estimated £5.5 trillion (that’s 12 zeros after the £5.5) is due to be passed between generations in the UK.

As things stand, the bulk of those transfers will go to beneficiaries who do not have a professional financial adviser. This has profound implications, for those beneficiaries, as regards making the most of their inheritances, both from tax and investment planning perspectives.

Tune in to the next instalment to learn more. In the meantime, we can help. Please visit our website www.pipllp.co.uk and please feel free to call us on 0113 202 9529.

Pension Freedom And Choice: Four Years On....

Four years ago, George Osborne introduced pensions freedom and choice, which turned the retirement savings market on its head. Given the pace of change, it is hardly surprising that there would be a number of issues emerging, which eventually would result in regulatory intervention by the Financial Conduct Authority (FCA). Amongst other things, the FCA has found consumers sticking with their existing provider, seemingly unwilling, or more likely, not knowing that they can switch their provider, in order to obtain better results. Weak competitive pressure and low levels of engagement with independent advisers are particularly acute in the non-advised Drawdown market and the regulator is rightly focussing on a package of measures to help address this.

To illustrate the point, 94% of consumers who access their pension pots without taking financial advice accept the Drawdown option offered by their existing pension provider, compared to only 35% of advised customers*. This illustrates the huge potential benefits people can receive from seeking independent advice.

Come to the experts – enquiries@pipllp.co.uk or visit our website www.pipllp.co.uk or telephone us on 0113 202 9529.

*Source: FCA Retirement Outcomes Review final report section 1.17