Millions will see pensions slashed by up to 20% as new EU rules are set to send annuities plummeting22/6/2012
MORE bad news on pension's!! TIME TO ACT!
Millions of people could see the value of their pensions slashed by up to 20 per cent because of new EU rules. Those with a £100,000 pension fund could be more than £1,100 per year worse off in retirement because of the reforms, research has shown. The Solvency II rules, which are due to come into effect in January 2014, will force pension funds to hold a higher proportion of 'safe' Government bonds. As the bonds - called gilts - have such low rates of return it will drive down the returns on retirement fund annuities, which are used to pension income. The reforms are designed to make pension funds safer and reduce the risk of them going bust. Annuities, which set retirement income for life, have already fallen to historic lows because of the impact of quantitative easing. At present, a pension annuity fund may invest 20 per cent in low-yield gilts and the rest in riskier corporate bonds which have a higher rate of return. But under the new EU rules, annuity funds will be forced to hold a higher percentage of gilts. New research by Deloitte suggests annuity rates will plunge by between five and 20 per cent when the directive comes into force in January 2014. A £100,000 pension pot currently gives an income of £5,837, but once the regulations come into effect they will be between £292 and £1,167 a year worse off. Take control of your pension by investing in Alternative Investments via a SIPP. LINK TO SIPP INFORMATION PAGE AND VIDEO - SIPP's LINK Read more: ARTICLE LINK A new concept in affordable housing
– £44,950 purchase price – 30.84% below market value -- £20,000 instant equity -- 8% net yields -- SPECIAL OFFER - BUY 5 for the Price of 4.5 - Saving £22,475 Beacon Apartments encompasses an exciting new living concept of one-bedroom UrbanPads for key workers and young professionals and are ideal for first time buyers and investors alike. Located near the centre of Gateshead in the North East of England, Beacon Apartments will be the ideal location for young professionals and those working in the nearby towns and cities such as Newcastle and Durham. The property is situated in close proximity to main motorways and transport links and provides quick and easy access to business centres. Beacon Apartments sits near to the A167 Gateshead Highway, which provides surrounding areas and also the A1 via A184 and the A19 for those commuting to places of work. A converted 1970s building with fully renovated interiors and exteriors, Beacon Apartments is a modern property and provides an attractive option for people looking for central living spaces. The new concept development will be converted into 112 Urban Pads. They are 30m2, one bedroom suited for urban living preferred by young professionals. Each pad will consist of a living and kitchen area, a bedroom and a bathroom. Highlights of Beacon Apartments - Close to areas of interest such as Newcastle and Durham. - Urban Pads concept providing 112 urban pads with rents from £395 pcm. - High Net Yields. Email for further information - EMAIL Student accommodation will continue to offer attractive investment returns in spite of upcoming changes to tuition fees, this is according to all the major market analysts.
Private investors have been attracted to student property as an asset class due to the relatively high yields on offer, driven by the imbalance between the supply of accommodation and the high demand for university places. With an offer on at the moment of buy five get one free there has never been a better time to buy into this market especially when you consider that the current value for student accommodation is £45,000 per unit whilst the deal offered nets the properties down to £25000 per unit. Link to further information – Student pods. Savers approaching retirement are being advised to put off buying a lifetime annuity – or even to consider deferring retirement – as the euro crisis further reduces the income offered to UK pensioners.
Pension experts issued the advice after the FTSE 100 index suffered its largest one-day fall since November, as investors fled equities on fears of a Greek exit from the single currency – and bought into “haven” assets, such as government bonds. This shift is significant for those planning their retirement as both the annuity income they can buy with their pension funds, and the income they can draw directly from their funds are determined by the yields on government bonds, or gilts. Heavy buying has pushed gilt prices up, reducing yields to record lows. “It’s such an awful and difficult situation for anyone approaching retirement,” said Dr Ros Altmann, director-general of the Saga Group, the financial services group for over-50s. “If you can delay, it is worth considering because at some point there should be a correction in rates.” Joanne Segars, chief executive of the National Association of Pension Funds, said: “People who are nearing their retirement need to think carefully about whether this is the right time to lock into the current low rates of interest.” Advisers suggested taking pension cash in stages. “It’s possible to phase into retirement by taking tax-free cash only,” said Mike Morrison, head of pensions development with Axa Wealth. “In the short term, it may be possible to take income from elsewhere.” Now is the time to take control of your pension by investing in Alternative Investments via a SIPP - Link to information video on SIPP's and alternative investments. In order to gain FREE entry to A Place in the Sun Live at Earls Court London on
30th March – 2nd April 2012, follow the link to the Place in the Sun website complete the form and hit ‘Produce eticket’. Website - http://www.aplaceinthesun.com/etickets/channel4.htm To see a selection of Alternative Investments click the link - LINK Tough new mortgage restrictions to stop borrowers falling in to arrears have been proposed by the UK's Financial Services Authority (FSA) after months of behind-closed-doors negotiation with lenders.
Out go self-certification and interest-only home loans for most mortgage borrowers. In come strict affordability tests to combat payment difficulties and mortgage fraud for borrowers – with lenders having to prove borrowers could afford their repayments before taking any action to seek arrears or repossession. The FSA claims the mortgage market review is aimed at preventing a return to risky boom time lending based on the assumption that house prices would continue to rise to repay loans. The review applies to all residential mortgages and remortgages but excludes buy to let landlords, who will still have access to interest-only deals, providing lenders continue to offer them. The FSA is seeking feedback on new mortgage rules for entrepreneurs who borrow against their homes as security for business spending. The FSA proposes three core mortgage lending principles: Lenders should only agree mortgages or loans with a reasonable expectation that the customer can repay without relying on uncertain future house price rises. Banks and building societies must verify income for every mortgage applicant. Lenders should assess the borrowers ability to repay a loan on the basis interest rates might rise Interest-only mortgages can only be agreed if the borrower can prove a strategy for repaying the loan from other resources and that the plans do not rely on future house price rises. FSA chairman Lord Turner said: “We believe that these are common sense proposals which serve the interests of both lenders and borrowers. While the excesses of the pre-crisis period have largely disappeared from the current market, it is important to ensure that better practice endures in future when memories of the crisis recede and the dangers of poor practice return. “The three key proposals are, we believe, the most effective way to tackle the problem of risky lending. “The proposals reflect the ideas and input of many stakeholders, including consumer groups and lenders. We believe these proposals will hardwire common sense standards into mortgage lending and guard against the risky lending practices of the past – leaving most borrowers unaffected, but better protected.” Consultation on the proposals is open until March 30, 2012. Mark Alexander, founder of Property118.com welcomes the initiative and says “the countries which have fared best since the beginning of the credit crunch are not those which could be described as a Nation of Homeowners, Germany is a good example. Landlords and mortgage companies need to be far more diligent in making sure that people can afford to stay in the homes they choose to live in.” LINK to alternative investment. GREEDY pension firms are paying themselves as much as 80 per cent of the contributions to people’s retirement plans. Thrifty workers who save to ensure a comfortable old age are losing a massive amount in fees and commissions to the companies who manage their pensions, research has revealed.
The UK's retirement crisis shows no sign of receding as new research shows that pension income has in some cases been eroded by more than 70% in the past decade. Falling investment returns combined with lower annuity rates have driven potential retirement income down from £9,000 per year a decade ago to £2,500 now .Millions of people face poverty in retirement due to poorly performing pensions as a result of falling markets and greedy fund managers. Investment Property Worldwide has teamed up with one of the UK’s leading independent wealth management companies which specialises in pensions and investments. They will carry out an initial review completely free of charge for potential investors to assess whether their existing pension plans may be transferred into a SIPP. If acceptable, once your pension is transferred into a SIPP various options are then available to make your pension work harder for you. LINK to Investment Property Worldwide alternative investment page. Employers are not doing enough to protect their pension investments, with staff in defined-contribution schemes now expected to be 25 per cent worse off in retirement, according to pension provider Xafinity.
The research, published on Monday, said ‘poorly designed investments strategies’ have resulted in many defined contribution, or personal pension, funds losing a quarter of their value in just seven weeks. Global equity volatility has impacted on members’ pots, while at the same time; at least ten annuity providers have reduced their rates by 2 per cent, after they factored in falls in gilt yields – the assets that back annuity payments. Together, these two factors mean that savers have seen their projected retirement income fall dramatically. Author - Lucy Warwick-Ching - FT.com to see the full article follow the link below http://www.ft.com/cms/s/2/a8659d7c-d7b4-11e0-a06b-00144feabdc0.html#ixzz1XBi2XQxK TAKE CONTROL OF YOUR PENSION transfer into a SIPP and invest in one of our alternative investments. |
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