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UK inflation rate falls – Good news?

How can that be?  Well this is the time of year that the figure is used to set the annual increases for some pensioners and disability benefits, as well as public service pensions and the state second pension.

Inflation as measured by the Consumer Prices Index fell to -0.1% in September, this was due to a smaller than usual rise in clothing prices, and falling motor fuel prices. The CPI rate has been at or close to zero for most of this year. It was last in negative territory in April.

Most benefits will be frozen from April because of the latest data.

The law does not allow for a down rating of benefits, so the practical effect is that benefits are likely to be frozen from April. The exact change, or lack of it, will be approved by the government in the coming weeks.

What this means for you is that pensioners here and in the UK could soon be facing a squeeze on living standards

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Expat Financial Advice a Must When Returning to UK

SuitcasesAs the “will they, won’t they” saga of Brexit rumbles on it is useful to look at some of the things expats can actually do to reaffirm their ties with the UK in the event that they plan to move back to Blighty at some point in the future.

The issue has taken on a new urgency for expats, particularly in regards to property, in light of the new surcharge that the government plans to introduce alongside stamp duty on second home and buy-to-let purchases in England.

Although Prime Minister Theresa May says that the surcharge is for “foreign buyers” and is being introduced with a view to assisting UK taxpayers buy a property – especially first-time buyers – it may have some unintended consequences.

This is because it is not just foreign buyers who are likely to find their pockets hit by the tax. Returning expats – who could well be a prominent demographic over the next few years – may also find themselves liable for the surcharge, potentially setting them back significantly on their way to reaching their wealth management objectives.

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Good news on pension exit fees

It appears there is good news on the horizon for up to 2 million pension savers.  The UK Financial Conduct Authority (FCA) is looking at evidence that some major providers applied exit charges to people’s pensions without informing them.  In some cases, this amounted to nearly 40% of the value of the fund.

They are looking to see if they followed the rules which say they have to inform customers of any exit fees being applied.  This is good news for anyone who, in the last few years, has suffered from being in this position as they could be due compensation.

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