How grandparents can get £250 a year for looking after their grandkids over the phone during lockdown
Grandparents who have provided care for grandchildren over the phone or video calls during the Covid-19 crisis can boost their State Pension.
The video will auto-play soon8Cancel
Play now
Daily Record -
Subscribe
When you subscribe we will use the information you provide to send you these newsletters. Sometimes theyâll include recommendations for other related newsletters or services we offer. OurPrivacy Noticeexplains more about how we use your data, and your rights. You can unsubscribe at any time.
Thank you for subscribingWe have more newslettersShow meSee ourprivacy notice
Meanwhile advisers are seeing clients actively discussing using more of their allowances.
Plan Money director Peter Chadborn says: “We have experienced decumulation clients, particularly those that make ad-hoc withdrawals, saying they don’t need to make withdrawals for the time being.
“We are now noticing accumulation clients starting to ask questions of what to do with surplus capital so there are more Isa allowances getting utilised.
“I’ve also started to notice an increased interest in gifting with older generations with surplus capital keen on helping younger family members who may be struggling by paying a chunk off their mortgage, or something similar, so it is definitely a trend.”
More Isa allowances are being utilised, while older generations show greater interest in gifting
The pandemic has brought huge financial challenges for many individuals and savers, but it has also dramatically boosted savings in the UK.
The savings ratio, often cited as worryingly low over the past decade, has soared and some advisers are adapting their advice accordingly.
Households collectively saved around £17.5bn ($24bn, €20bn) a month in the first lockdown, a similar sum in the second and it seems very likely they are doing so again.
The savings ratio hit 29.1% in the second quarter, a record, and it is expected to be around 15% for the year. Total additional savings in 2020 were around £120bn.
Link copied Make the most of your money by signing up to our newsletter for FREE now
SUBSCRIBE Invalid email
When you subscribe we will use the information you provide to send you these newsletters.
Sometimes they ll include recommendations for other related newsletters or services we offer.
Our Privacy Notice explains more about how we use your data, and your rights.
You can unsubscribe at any time.
Pension assets can be accessed from the age of 55 under current rules, with this set to rise to 57 from 2028. While retirees have relative freedom over when they can tap into their pots, doing so without careful planning could lead to problems over the long-term.