Podcast Summary
LinkedIn: A Hidden Pool of Potential Candidates for Businesses: Over 70% of LinkedIn users don't visit other job sites, making it a valuable resource for businesses looking to hire. Potential candidates like Sandra, who aren't actively seeking new jobs, could be overlooked if businesses don't post jobs on LinkedIn.
Businesses missing out on LinkedIn for hiring may be overlooking a vast pool of potential candidates. LinkedIn hosts professionals who aren't actively seeking new jobs but could be open to the right opportunity. Over 70% of LinkedIn users don't visit other leading job sites, meaning great candidates like Sandra might be overlooked if businesses don't post jobs on LinkedIn. Another takeaway from the discussion revolves around inflation-proofing savings. With the withdrawal of index-linked certificates from National Savings and Investments, savers seeking protection against inflation are left in a tricky situation. The UK government-run bank has exceeded its net deposit limit for the year, resulting in the closure of some accounts. However, there seems to be a lack of alternatives in the market, leaving savers uncertain about how to protect their savings from inflation. As for those looking to invest in property, the search for a rental yield of over 6% continues to be a challenge. The FT Money Show promises to provide answers to these money matters, including strategies for inflation-proofing savings, managing pension funds during government consultations on new annuity rules, and finding investment properties with high rental yields. Stay tuned for more information.
Market conditions make it hard for building societies to offer attractive RPI-linked savings accounts: Despite challenging market conditions, it's crucial for savers to compare rates and choose the best deals to maximize returns
Due to market conditions, offering inflation-proof savings accounts with attractive rates has become a challenge for building societies. The cost of purchasing inflation hedges, or swaps, has increased significantly, making it difficult for them to offer RPI-linked products that are tax-free and competitive with National Savings. Currently, the best savings rates available are around RPI or slightly above it, with the top instant access deal being 2.8% from AAN, and the best 3-year fixed rate being 3.25% from Punjab National Bank. However, a new entrant in the market, Bank Baroda, is offering market-leading rates of 4.9% for a 5-year bond and 4.3% for a 3-year bond. Despite the low base rate and the lack of attractive savings rates, it's important for savers to shop around and consider their options carefully to maximize their returns.
New pension rules give retirees more control over retirement income: The UK government's new pension rules allow retirees to choose between buying an annuity or keeping funds invested, with income withdrawal limits for those with small funds. This shift in policy empowers pensioners to have more control over their retirement income and offers benefits for those with both large and small pension funds.
The UK government has proposed new pension rules, giving pension savers more flexibility to choose between buying an annuity or keeping their funds invested and drawing an income. This applies to both large and small pension funds, but those with small funds will have income withdrawal limits to prevent them from depleting their funds. The government's announcement marks a significant shift in pension policy, allowing pensioners to have more control over their retirement income. Additionally, there are two types of drawdown: capped and flexible. With capped drawdown, there's a limit on the income you can withdraw, while with flexible drawdown, you can withdraw as much as you need, provided you secure a minimum income level. This change is expected to be popular among those with large pension funds, but it also offers benefits for those with smaller funds, giving them more control over their retirement income and the ability to leave unused funds to their families. In the context of the broader discussion, this development is another example of how individuals can find solutions to mitigate the impact of inflation on their savings and retirement income. For more details, check out the FT Money article in this weekend's FT and online at ft.com/forward/money.
Proposed pension reforms offer more flexibility for retirees: Reforms allow retirees to withdraw, manage funds, and inherit with reduced tax charges. Changes may encourage more retirement savings and take effect next April.
The proposed pension reforms aim to offer more flexibility for retirees, allowing them to withdraw and manage their pension funds as they please, even leaving it to be inherited with a more reasonable tax charge upon death. These changes, set to take effect next April, may encourage more people to save for retirement by making the pension system more appealing. For those approaching retirement but not yet ready to make the switch, it's recommended to take a small amount as a tax-free lump sum and bridge the gap until the final rules are revealed. If you prefer a guaranteed income through an annuity, there's no need to change your plans. Overall, these reforms aim to make retirement savings more attractive and provide greater control for retirees.
Consolidate pension funds for easier administration: Consolidating pension funds can simplify management, but consider potential penalties or guarantees before moving funds. The buy-to-let market is improving in the UK with attractive yields in cities like Liverpool, Birmingham, and Newcastle.
If you're considering retirement and have multiple pension funds, it's generally a good idea to consolidate them for easier administration. However, be sure to check for any potential penalties or guarantees before moving funds. In the realm of real estate investment, the buy-to-let market is showing signs of improvement across the UK, with rising demand and yields. London continues to lead the way, but cities like Liverpool, Birmingham, and Newcastle offer attractive rental yields for those who may not be able to afford prime London properties. The average yields in these cities are 6.89% in Liverpool, 5.48% in Newcastle, and 5.68% in Birmingham. Overall, the buy-to-let market is showing promise, but as always, careful consideration and research are key before making any investment decisions.
Considering Factors Before Investing in Buy-to-Let Properties: While mortgage finance covers repayments, limited capital growth may reduce long-term returns. Availability of mortgage finance is a challenge, but potential government changes could impact yields. Rising rental demand and lack of stock lead to higher rents, so careful location selection is key.
While higher yield investments in buy-to-let properties can cover mortgage repayments, the long-term total return might not be as great due to limited capital growth. The availability of mortgage finance for investors remains a challenge, making it a better option for those who are equity rich. However, potential government clampdowns on housing benefits could impact rental yields, making the stock market a more attractive option for some. The increasing rental demand and lack of stock in the market are expected to lead to rising rents, making it crucial to identify the right hot spot for investment. Overall, careful consideration of various factors is essential before making an investment decision.
Getting Financial Advice and Assistance with Commerce Platforms: FT Money offers free financial advice and Shopify simplifies commerce for businesses, while 1800flowers.com's Celebrations Passport provides rewards for gift giving
FT Money provides a free question and answer service on their reader's questions page, where they will answer all financial queries or bring in financial experts to help. Meanwhile, Shopify is a global commerce platform that assists businesses in selling at every stage, from launching an online shop to hitting a million orders. It offers a $1 per month trial period and boasts a better converting checkout than other leading commerce platforms. Additionally, 1800flowers.com's Celebrations Passport offers free shipping on thousands of gifts, with more rewards earned with more gift giving. So, whether it's financial advice or gift giving, there are resources available to help make things easier.
