The Government’s new breathing space scheme, officially known as the Breathing Space Debt Respite Scheme, commenced on May 4.
The Financial Services Compensation Scheme says its research has identified a worrying trend, in that many retirees are prepared to consider higher risk investments in an attempt to boost their returns, even though doing so also exposes them to a greater chance of loss. It says that this may be due to the continuing low-interest savings environment.
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Marshall Bailey has been appointed for a second term as chair of the Financial Services Compensation Scheme, and to mark the occasion, he has published an article explaining what he sees as the challenges facing the Service and the financial industry in general.
Changes Announced to Debt Relief Orders (DROs)
The Insolvency Service has released an update following the consultation changes to Debt Relief Orders (DROs). The changes to DROs are now agreed, finalised, and will come into effect at the end of June 2021. Due to the changes, It is expected that over 13,000 more individuals may use DROs within the next 12 months and when compared to 2019 statistics. This represents a 50% increase.
Research by pension switching advisory firm Profile Pensions shows that, in some areas of the UK, the ‘gender pension gap’ could be as high as 50%. The gender pension gap is defined as the difference between the level of pension income that can be expected by men and women.
The latest data from the Financial Conduct Authority shows that the number of complaints about authorised firms fell by 26% between the first half of 2020 and the second half of the year, from 2,960,000 to 2,160,000.
Citizens Advice has revealed its concerns over the number of people using ‘buy now pay later’ arrangements, especially those from vulnerable groups. Its research shows that 27% of UK adults have used a BNPL arrangement in the last 12 months, but this rises to 37% of disabled people and 45% of those with a mental health problem, as well as 45% of people in the 18 to 34 age group. Half of the customers in this younger age group said that they had unwittingly signed up to a BNPL arrangement when they never intended to do so. The average repayment under a BNPL arrangement is said to be £63 per month.
New research by Standard Life Aberdeen has suggested that two-thirds of those retiring this year will run out of money before they die.
New research by wealth management and stockbroking firm Charles Schwab UK has suggested that younger investors are much more likely to favour cryptocurrencies over equities when it comes to investing their money.