New pensioners aren’t splashing the cash………………….When the new pension rules came
into force in April 2015, fears were
expressed that pensioners might
raid their pension pots to go on
a spending spree. The former
Pensions Minister Steve Webb,
famously remarked at the time
that pensioners could choose to
spend their savings on buying
a Lamborghini if they wished.
However, the evidence suggests
that this hasn’t happened.
Whilst the total value of pension
withdrawals made since April 2015 is
over £25bn, the average withdrawal
made between July and September
2018 was £7,597, the lowest
level recorded by HMRC since their
records began2 in Q2 2015.
Volatility playing a part
The lower level of withdrawals could
be a sign that pensioners were
reacting to market volatility and
concerned to preserve their wealth.
Managing withdrawals from pension
funds can be a challenge for those
unfamiliar with the stock market;
that’s why taking advice is so worthwhile.
Ensuring their pension funds
last as long as they do themselves is
a concern often by those approaching
retirement; we can help ensure
retirees make the right choices at
the right time……continue reading SFFS Simply Wealth_Summer 19

SFFS Economic Review_May 19 More →

The UK economy grew more strongly than expected in February as ‘preBrexit’ stockpiling provided a boost to the monthly rate of economic growth. Official gross domestic product (GDP) data released by the Office for National Statistics (ONS) has revealed that the economy expanded by 0.2% in February. While this does represent a relatively modest growth rate by historic standards, the figure was significantly higher than most economists had predicted and has eased potential fears that the UK economy could be set to stall or even contract during the first quarter of the year. A key factor behind this stronger than anticipated performance, however, relates to manufacturers’ stockpiling activity. Although ONS does not collect specific data on this area, it did state that survey evidence suggests some manufacturers changed the timing of their activities as the UK’s original planned departure date for leaving the EU approached, in order to minimise any potential disruption to supply chains in the event of a no-deal Brexit. February’s strong GDP data, therefore, appears to reflect a rush by manufacturers

to meet orders from clients stockpiling essential items ahead of Brexit. This point was further reinforced by the latest Confederation of British Industry (CBI) quarterly survey which showed that, in the three months to April, British factories stockpiled at the fastest pace since records began in the 1950s. Meanwhile, IMF managing director Christine Lagarde has warned that further uncertainty surrounding the Brexit process will undoubtedly have a negative impact on the UK’s future growth prospects. The warning followed the release of the IMF’s latest economic assessment with the new forecast suggesting the UK economy will expand by 1.2% in 2019, down 0.3% from the organisation’s previous prediction published in January.

Are the best things in life really free?

Recent research1 shows that many of life’s most enjoyable events come with a hefty price tag. The research calculates that going to university, buying a house, getting married, having two children and then retiring could, on average, add up to £566,659 over the course of a lifetime. This is a huge sum and illustrates the need for careful planning. Separating ‘wants’ from ‘needs’ Many people believe that the key to meeting financial goals is to identify what is most important to you. For instance, whilst you might want to eat out several times a week; affording a home of your own, or enjoying a comfortable retirement, might mean cutting down on these nights out. The problem is that we can all find ourselves trying to save for multiple goals at once and this can feel like an almost impossible task. This is where taking financial advice can really help. We will be able to assist you in putting together a financial plan that addresses both your short and longer-term financial needs. Getting the savings habit As a starting point, everyone needs to have some money put away for emergencies like an unexpected bill. This means having some cash that can be accessed quickly. Then it makes sense to think about the bigger and more exciting things in life, and have money saved that
steadily builds up for the future. Tax-efficient accounts like ISAs can really help here and you can invest lump sums or make regular monthly contributions. http://sheldonflandersfinancialservices.co.uk/spring-statement/