The Sunday Times urges caution when it comes to early withdrawals from pension pots: over-55s who dip in could find that their spending comes with a sting. Once they have taken money from their pensions, the annual amount that they can then save into it again is cut from £40,000 to £4,000 for ever — and that includes any employer’s contribution.
On a positive note, they report that even with the market in turmoil, some stocks will keep on delivering the goods; as we adjust to a new world order it is likely that some of the more corona-proof shares will continue to bring solace to investors.
It would seem that young investors have fallen out with fund managers; young people saving for retirement are favouring lower-cost tracker funds that simply follow an index and often beat professional stock-pickers.
We hear from The Sunday Telegraph that the Government is under pressure to suspend the state pension “triple lock” as a sharp rebound in wages predicted next year could add £10bn to the benefits bill; the end of furlough will boost wages – and under current rules, pensions must follow suit.
They warn that people who would previously have been accepted for a mortgage are now being turned down as some banks are tightening up their lending criteria.
In another fall-out from Covid-19, it appears that some holidaymakers are being forced to call in lawyers to obtain refunds for cancelled trips, as the consumer watchdog investigates thousands of firms for withholding payouts. Some consumers have resorted to paying hundreds in legal fees to scare stubborn travel companies into respecting basic consumer rights.
The Mail on Sunday highlights opportunities for the optimistic investor, and explores the cheap shares and investment trusts that could thrive post-lockdown.
They caution that savers looking to extract as much interest as possible from their cash deposits are beginning to run out of options; they are being hit by a perfect storm – a tidal wave of rate cuts and providers closing competitive accounts to new customers. As a result, safe ports (banks) offering good facilities (a fair rate of interest) are disappearing fast over the horizon.
They hope for a huge boost for the economy if a UK consortium gets the go-ahead to build a fleet of mini reactor plants as Rolls-Royce triggers a £250bn nuclear race.
Are you sure? – “I will be the greatest jobs President that God ever created.”(Donald Trump)
Hoping you and yours are all well, and that it’s business as usual as near as possible.
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