Wednesday, 26 April 2017

Pension cashing in tops £6bn

Nearly 400,000 people took out £6.45bn of their pension cash in year to April, taking advantage of the new pension freedoms, HM Revenue and Customs said.

The figure covers both cash withdrawals and income drawdown, through which pensioners maintain an investment fund and take a regular income.

On average people pulled out more than £16,400 each between April 2016 and March 2017.

It's the second year that pension savers have been able to use their retirement nest eggs as they like, from the age of 55, subject to paying some tax.

It's hard to gauge from the HMRC figure how much more "cashing in" has been going on. The first year saw at least £4.35bn withdrawn - but pension providers weren't forced to submit full records.

Tuesday, 25 April 2017

Energy price hikes disguised as savings

Canny consumers who are coming to the end of year-long fixed rate gas and electricity fixed rate deals are in for a shock.

When you look at the price comparison sites to see what you'll be paying next, it's likely to be £100s more.

But that won't be the only surprise.

The switching services will promise you huge savings, like this:

How is there a saving of nearly £400?

Well, it's compared with what you would be paying if you didn't switch deals and you ended up on your current supplier's Standard Rate (the expensive one).

In fact, in this example your best option would be a near £200 increase in your annual bill.

Of course, if (like most people) you're on the Standard Rate already or have never switched before you are likely to make a substantial saving anyway.

For the rest, make sure you click "What will I pay?" and avoid disappointment...