Independent financial adviser, Becky Hammonds of Willow Financial Solutions, shares some of the financial budget highlights.
The Autumn Budget aimed to alleviate some of the gloom about rising energy, food and fuel costs.
Behind the headline announcements of the Chancellor, Rishi Sunak’s latest budget, there were a few financial implications.
One of these is the commitment by the government to consult on further changes to the regulatory charge cap for pension schemes.
Chancellor Rishi Sunak said this will be a way to encourage schemes to invest in the economy while protecting savers.
He said: “We will consult on further changes to the regulatory charge cap for pension schemes, unlocking institutional investment whilst protecting savers.
“It’s why we’re introducing a new £1.4bn global Britain investment fund, supporting transformative economic activity in our world-leading sectors like life sciences.”
The limits on Junior ISAs and ISAs remain unchanged at £9,000 and £20,000 respectively. This is the fifth consecutive year that the ISA limit has remained unchanged. The Junior ISA was increased in 2020 when it was doubled from £4,500 to its current annual limit of £9,000.
The rise in personal savings during the pandemic led to a boom in ISA investments this April, with £1.5bn flowing into the products.
It is of course reassuring that consumers are continuing to save. Saving money can not only provide security, but also a return on the cash put away within a bank or building society. This is the ultimate aim for many people who could have certain financial goals they are hoping to meet. Instant access cash savings accounts will always remain popular, as many people want access to their cash as and when they so choose. However, in the current time, many of these types of accounts are not offering favourable rates or returns.
Leaving too much money in cash and not investing it in stock market related products could end up costing Britons dearly in the long run.
Individuals could end up missing out on approximately four to five percent returns a year over the long term – markedly higher than the kind of interest rate a person would expect in a cash account of any kind at the moment.
This further underlines the need for Britons to reconsider their finances where possible and take appropriate action to plan ahead and future-proof their money.
However, it is important for savers to feel entirely comfortable with their investment strategies and risk profiles.
For pensions and investment advice contact Becky Hammonds on 07969 269677 or email email@example.com.