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Reading Time | < 1 min 25 Jan 2016

Millennials saving more than 35-55 year olds

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The millennial generation – those who have reached adulthood in the year 2000s (18-34 years old), have twice the amount of money and half the debt as those aged 35-55. 

According to a report by Experian, 45% of 18-34 year olds save a least a quarter of their disposable income each month, compared to 34% of 35-55 year olds.

Millennials who think that their parents positive influence on their financial attitude and habits save twice as much when compared to those who believe their parents had a negative influence.

Those who have benefitted from their parent’s financial experiences are more prepared when it comes to managing credit in particular. 

Millennials whose parents had a negative effect on their money management are:

  • twice as likely to have missed an agreed credit payment 
  • more likely to have gone into an unplanned overdraft
  • twice as likely to have run out of money before payday
  • twice as likely to have been refused credit
  • twice as likely to have defaulted on a credit account
  • 5 times more likely to have a count court judgement in their name.

Clive Lawson, managing director at Experian, said:

“As it stands, it appears that Millennials already surpass older generations when it comes to money management and this is good to see; however, there are still a few lessons to be learnt. 

“Many are still making crucial errors in the way the manage credit and these mistakes, such as not even checking their own credit report can have far-reaching effects on their financial future.”

Contact us today to find out more about money management.

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Reading Time | 2 mins 22 Jan 2016

Time-poor workers find work/life balance problematic

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A Scottish Widows report has found that people find it difficult to maintain a healthy work/life balance in the face of long working days and significant commutes.

53% of younger workers aged 18-24 year olds feel that their lives are currently skewed towards work.

Employees

Working hours appear to be a contributing factor as the report suggests that employees spend more than 10 hours each day at work (or getting to and from it) while spending less than 3 hours a day with their loved ones.

Parents of children under the age of 18 are especially concerned about their failure to achieve a healthy balance between work and family. 

Some of their concerns were:

  • 51% of parents feel they are missing out on seeing their children grow up
  • 41% say that work commitments force them to let their family down on planned activities
  • 48% state they don’t have time to prepare or eat meals with their family.

Employers

Employees are looking to their employers to do more to help them achieve a better work/life balance. 

60% of workers want to see their employers offer flexible working hours, while 47% want the flexibility to work from home.

The report also found:

  • 21% of employees would accept lower pay if they were able to work fewer hours
  • 58% of employers would offer employees the same level of support, regardless of family circumstances
  • 26% of employees said that their employer offers them the level of support.

There is a growing understanding among businesses that technology and flexible working patterns can help achieve greater productivity and efficiencies in the workplace while also allowing employees to achieve a better balance between work and their personal life.

With this in mind, the business standards company (BSI) has announced a The Smart Working Code of Practice which aims to create modern workplaces that support more flexibility and collaboration to give employees a better work/life balance.

The code of practice is intended for use by organisations of all sizes and in all sectors.

Scott Steedman, director of standards at BSI, said:

“Smart working is about harnessing the potential of flexible working in a strategic way, to deliver benefits both for the business and for employees. 

“Employing effective practices is a key goal for all businesses, and smart working is not restricted to one sector, it is applicable to all businesses regardless of size or sector.”

Contact us today to discuss about your employees.

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Reading Time | < 1 min 20 Jan 2016

Cap in place for early pension exit charges

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Chancellor George Osborne has announced an end to “prohibitive” charges faced by those accessing their pension pots.

The Financial Conduct Authority (FCA) will have a duty to cap early exit charges deemed as excessive for those eligible to access their pension pots.

The change comes in response to the Pension Transfers and Exit Charges consultation where it was found that nearly 700,000 (16%) customers in contract-based schemes, who are able to access their pension, had the possibility of facing early exit charges. 

FCA data showed that a significant minority of these people faced charges high enough to “effectively put them off accessing their pension freedoms.”

The FCA will be responsible for setting the level of the cap and will provide full consultation in the coming months.

Since the pension freedoms came into effect, 400,000 pension pots have been accessed with many providers offering customers a range of options to benefit their savings.

Chancellor George Osborne, said:

“We’ve listened to the concerns and the newspaper campaigns that have been run and today we’re announcing that we will change the law to place a duty on the Financial Conduct Authority to cap excessive early exit charges for pension savers.

“We’re determined that people who’ve done the right thing and saved responsibly are able to access their pensions fairly.”

Talk to us today to find out about your pension options.

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Reading Time | < 1 min 19 Jan 2016

New measures introduced to reduce insurance fraud

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New measures recommended by the Insurance Fraud Taskforce (IFT) are to be introduced to challenge insurance fraud and lower costs for customers.

The IFT was set up in January 2015 to assess the scope of insurance fraud and recommend steps to tackle the problem. 

The main issues it highlighted were that insurance fraud is not always recognised as a criminal act, a level of popular distrust of the insurance industry and a wide-ranging lack of understanding as to how insurance works.

The new measures will help tackle fraudulent activity ranging from organised crime to opportunistic fraud. The recommendations include:

  • improving customer trust in the insurance sector and identifying all instances of insurance fraud as a criminal activity
  • encouraging data sharing and collaboration between the insurance sector and regulatory bodies
  • clamp down on unnecessary whiplash claims, which are a major source of fraud.

Neither the IFT nor the government has commented on when the recommendations are likely to be legislated.

Harriet Baldwin, economic secretary to the Treasury welcomed the news to tackle insurance fraud:

“These recommendations will galvanise our collective efforts to tackle insurance fraud, and will ultimately reduce costs for consumers.”

James Dalton, director of general insurance policy at the Association of British Insurers, added:

"The industry will do whatever it takes to protect honest customers from the dishonest minority, including ensuring that customers understand exactly what they are covered for, so that they can get the most from their insurance legitimately.”

Talk to us today to find out more information on insurance fraud.

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