Laura Miller

Vanguard unveils low-cost Sipp

Savers seeking a cheap place to grow their nest eggs can pick from a new kid on the block, as fund giant Vanguard enters the self-invested personal pension (Sipp) market. 

The passive investing behemoth says that its Sipp is now the lowest-cost Sipp available to UK savers. Its claim cites analysis by Platforum for the average British pension holder not yet in drawdown with a pot of £40,500.

LCF mini-bond Isa investors get typical payout of £20,000

More than 100 investors in failed London Capital and Finance (LCF) mini-bonds have received payouts from Financial Services Compensation Scheme (FSCS) at an average of £20,000 each.

The FSCS has paid out £2.7 million to 135 LCF customers in relation to 151 failed mini-bonds, it said in a statement.

Payouts were to investors who put money into LCF mini-bonds via a transfer from their stocks and shares Isas. The FSCS has made these payments automatically, without the investors needing to apply for compensation.

Premium Bonds: millions of savers hit by cuts to interest rates and prizes

Savers with NS&I fixed and variable savings products will earn less interest from 1 May as rates are cut across the board, and the likelihood of winning prizes on Premium Bonds lowered.

Interest on the Direct Saver account will fall to 0.7%, down from 1%. The reduction is less on the Investment Account, which falls to 0.6% from 0.8%. Savers with Income Bonds will be hit the hardest; their interest is being cut to 0.7% from 1.15%.

Budget 2020: six key personal finance areas in the spotlight

Chancellor Sajid Javid has kicked off 2020 by announcing the Budget will take place on Wednesday 11 March. What can savers and investors expect from the Tories tax and spend plans?  

A Conservative leadership race followed in quick succession by a general election has revealed some of the current government’s intentions for the money in our wallets. 

Amid these promises, Javid has some big problems on his plate – the NHS pension crisis, the care funding crisis, a shaky pledge on wages. Looming over it all is the economic impact of Britain’s exit from the European Union. 

Overtaxed retirees reclaim £3,000 each

In total, HMRC figures show £535 million has now been repaid to those who have filled out the official reclaim forms since April 2015, when pension freedoms were introduced and over-55s could draw on their money much more flexibly.

Pension freedoms gave savers the right to take any sum they wished from their retirement pot, but a quirk of HMRC’s system meant that they were often overcharged tax on their withdrawals.

Pension tax pain causing doctors to hang up their stethoscopes early

Complex pension taper rules introduced in 2016 are sending doctors to an early retirement, putting the NHS at risk of greater understaffing and leaving patients facing longer wait times.

Almost half (45%) of doctors surveyed by the Royal College of Physicians and its Scottish counterparts say that they have decided to retire younger, with 86% of doctors citing pension concerns as one of their reasons, 

Auto-enrolment pension contributions need to exceed 8%, says minister

Guy Opperman, the pension minister, has confirmed he wants the minimum that employees pay into their workplace pension to increase beyond the current 8%, but said that the Pension Bill was not the place to trigger a rise.

At the launch of his Bill yesterday in Westminster, Opperman said that he also shied away from cutting the £10,000 auto-enrolment threshold, and changing tax relief rules that mean some lower paid workers miss out, until he saw the result of two contribution hikes.