Podcast Summary
Appreciation and hiring's impact on business performance: Effective hiring through LinkedIn and appreciation via total employee experience platforms can boost business productivity and performance.
Appreciation and hiring professionals can significantly impact business performance and productivity. At Reward Gateway Eden, they emphasize the importance of appreciation and offer a total employee experience platform to help businesses capture its power. Sandra, a potential candidate, highlights the benefits of using LinkedIn for hiring, as over 70% of its users don't visit other leading job sites, increasing the chances of finding great candidates like herself. In the world of finance, Islamic finance is a growing industry with over $1,000,000,000,000 under management. However, previous attempts to establish a domestic Islamic finance industry in the UK have faced challenges. Elaine Moore explains that Islamic finance differs from mainstream financial products as they cannot offer interest and have ethical considerations, which might attract non-Muslim investors. Available products for UK retail investors range from savings accounts to ISAs, but the mainstream adoption of these products has not yet occurred. Overall, appreciation, effective hiring, and ethical financial products are key areas to consider for businesses and individuals.
Islamic financial products: An alternative to traditional banking and investment options: Islamic financial products offer ethical and Sharia-compliant alternatives, with competitive savings rates, appealing to those concerned about ethical banks' future and seeking ethical investments.
Islamic financial products offer an alternative to traditional banking and investment options, particularly for those interested in ethical investments. Despite being a niche market, some providers, like the Islamic Bank of Britain, have had to compete on rates to attract new customers, resulting in some of the best savings rates on offer. The ethical and Sharia-compliant nature of these products may also appeal to those concerned about the future of ethical banks like Co-op, whose future direction is uncertain. However, the lack of regulation and the debate around who decides what is Sharia compliant adds complexity to the market. Overall, while these products may not have taken off as predicted, they present an alternative option for those seeking ethical and Sharia-compliant financial solutions.
Older adults face retirement with inadequate savings: Individuals aged 45-60 need to save significantly more for retirement to reach desired income levels, averaging over £500,000 for £28,000 yearly income. Auto enrollment helps, but personal responsibility and informed decisions are crucial.
While young people may struggle with debt and housing, they have the advantage of time when it comes to retirement savings. In contrast, those aged between 45 and 60 are facing retirement with inadequate savings, underestimating how much they need, and relying heavily on the state pension. This group, which is closest to retirement age, is in a more precarious financial position and lacks the time to make up for lost savings. According to a survey by BlackRock, this age group needs to save significantly more than they currently are to reach their desired retirement income. For instance, a pensioner couple needing £21,000 a year to live comfortably would require over £150,000 in savings between them, assuming a 25-year saving period. The average respondent in the survey wanted around £28,000 a year, which would require over £500,000 in savings. These figures demonstrate the urgent need for individuals in this age group to increase their savings and consider alternative retirement income sources. The auto enrollment program, which enrolls everyone into a workplace pension, is a positive step towards addressing this issue. However, it's crucial for individuals to take responsibility for their retirement savings and make informed decisions about their financial future.
Maximize pension contributions for savings: Hard-up investors can save more by maximizing employer pension contributions, cutting costs, and considering quality funds. Higher-rate taxpayers benefit from additional contributions from their employer and the government through tax relief. The government is also working on capping charges for default funds in workplace pensions.
Hard-up investors can make their savings go further by making the most of their employer's pension contributions. This is an effective way to save, especially for higher-rate taxpayers, who can get additional contributions from their employer and the government through tax relief. Another way to make your money work harder is to cut costs, including pension charges, and consider the quality of the funds you're investing in. The government is also looking into capping charges for default funds in workplace pensions. Additionally, there's a trend of rising house prices due to a lack of new housing construction. To address this issue, the government is encouraging more people to build their own homes, but self-build is still not a common practice in the UK due to a lack of financing options. Overall, taking advantage of pension contributions, cutting costs, and considering quality funds can help hard-up investors, while the government works on addressing the housing crisis.
New entrant in self build mortgage market: Hinkley and Rugby Building Society joins Lloyds Banking Group's BM Solutions as major players in the self build mortgage market. However, Virgin Money's exit leaves limited options for borrowers, making self build mortgages more expensive due to higher risk and complexity.
The self build mortgage market in the UK remains limited in terms of choice and volume, with only a few lenders actively participating. The latest addition to this market is Hinkley and Rugby Building Society, which has recently launched its first self build mortgage product range. However, the withdrawal of Virgin Money from the sector has offset this gain, leaving only Lloyds Banking Group's BM Solutions as a major high street bank supporting self build finance. Mainstream lenders have been reluctant to enter the self build market due to its complexity and the demand not being substantial enough to warrant the additional IT processes and due diligence required. Additionally, the Help to Buy Mortgage Guarantee scheme and the Mortgage Market Review have absorbed the attention of lenders, making it a challenging time for new entrants. As a result, self build mortgages tend to be more expensive than conventional ones due to the higher risk and complexity involved.
Self-building a home: Higher interest rates: Self-building comes with higher interest rates, around 5.49%, compared to standard mortgages, which can make it more expensive. Research thoroughly, secure a plot, and have a contingency plan to mitigate potential cost overruns.
Self-building a home comes with higher interest rates compared to standard mortgages, around 5.49% compared to 2%. This difference underscores how lenders view self-build projects as riskier. For those considering self-building, it's crucial to research thoroughly, secure a plot, and have a contingency plan due to potential cost overruns. Overall, self-building may not be the cheaper option for getting onto the housing ladder. Other topics covered in this week's FT Money include the booming venture capital trust market, pension charges cap proposal, and Ken Fisher's insights on the new Fed chair. For more information, visit ft.com/forward/money. Don't forget to check out Quinn for luxury items at affordable prices and Rust Oleum's new custom spray 5 in 1 for various spray paint patterns.
