CTFs were one of Gordon Brownís recurrent Budget ideas. They eventually became reality in April 2005, with the Government making payments of around £250 or £500 for children born after 31 August 2002. Parents and others could make top-up contributions, but few did.
One in seven (14 per cent) people planning to retire this year will depend on the State Pension as they have no other pension, according to new research from Prudential.
People who make bad money decisions as well as bad investment decisions can often rationalise them. The most common excuses are included below, but there are plenty of others. These arguments are often elaborate short-term excuses that we use to justify behaviour that often contradicts our own long-term interests.
Investors with longer-term investment objectives often have requirements for regular income and capital growth. The right mix of income and capital growth may depend on whether you need immediate access to your money or you prefer to draw an income and grow your investments over time.
Retirement may be a long way off for you at the moment, but that doesnít mean you should forget about it. The sooner you start to plan for the future, the easier it is to build up the kind of money you need to enjoy the life you want.
ISAs are complicated
If you’re already familiar with how savings and investments work, all you need to know about ISAs is that they are simply a wrapper that shelters any gains from tax.
Few assets are inherently tax-efficient. While growth in the value of oneís principal residence is not subject to capital gains tax, a home is a home and should not necessarily be viewed as an investment. Most assets, however, come with a choice of tax-efficient returns if held through the right structure.
Will you give a cash loan to family members instead of leaving an inheritance?
A quarter of over-75s and more than a fifth of over-55s in total (21 per cent) have given a cash loan to family members instead of leaving an inheritance, according to Aviva’s latest Real Retirement Report. The findings also show nearly one in ten over-55s regularly give money to family to avoid Inheritance Tax (8 per cent), while a further 20 per cent would do the same.
Almost 900,000 premium bond prizes worth more than £43m have been left unclaimed, according to National Savings and Investments (NS&I).
Research by Standard Life reveals that more people are now aware of the tax-efficiency of pensions than a year ago. Almost 2 in 5 people (39 per cent) are aware that the Government automatically adds £1 for every £4 you invest in a pension if you are a basic rate taxpayer[1] (subject to annual limits[2]). In 2012, only 3 in 10 (29 per cent) UK adults said they knew the Government added this level of ëfreeí money to pension contributions.