Posts Tagged ‘ UK ’

Are you among the world’s wealthiest? This will surprise you

Yesterday I was reading Credit Suisse report on global wealth , $3,650 would place you among the world wealthiest !!

Lasr year global wealth grew by 8.3% and now the global wealth worldwide if $263billion

Distribution of Wealth :

America

$91,240 bn

Europe

$85,200 bn

Asia Pacific

$49,849 bn

China

$21,404 bn

Latin America

$9,113 bn

India

$3,604 bn

Africa

$2,831 bn

 

The average person is worth $56,000.

An individual $3,650 ( all assets ) you among the wealthiest 50 % of the world population .The other half own only 1% of the world wealth !

77pc of adults – that’s 3.3bn people – have less than $10,000 .

To be the top 10pc of richest people – membership requirement is $77,000 – hold 87pc of the world’s wealth.

$798,000 is what you require to be in the top percentile of the world’s wealthiest. 1 % accounts for almost half – 48.2pc – of global assets.

This report I found very interesting / scary .

 

Tony Evans

Tokyo

2014
10/15
CATEGORY
Uncategorized
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New pension proposals bring higher costs – UK insurers

New pension proposals bring higher costs – UK insurers.

The Association of British Insurers issued a warning against Pensions Minister Steve Webb’s flagship project, dubbed ‘defined ambition’ pension provision, saying that it will be too costly.

In a wide-ranging document, released in full today, the association that considers the role of insurers in Britain said that the new pension system will be too costly to deliver satisfactory outcomes and too difficult to regulate.

The ABI said that whilst defined ambition schemes have the benefit of apparent simplicity to the employee, they also face formidable obstacles. In fact, according to a finding from a recent study by the Institute and Faculty of Actuaries, guarantees on pots that can be moved from one employer to another are likely to cost more than they are worth.

Moreover, it believes that the similarity to with-profits funds is likely to incur the scepticism of regulators.

Meanwhile, a rapidly ageing UK in which the older generation disproportionately holds the majority of financial assets continues to place an unsustainable burden on younger adults, who have neither the house price appreciation or the generous pensions available to those now retired.

In recent weeks, defined ambition schemes have been a particular focus for Webb, who believes that they may offer more retirement security for members than is currently available under defined contribution savings scheme, but lower risks for employers than under the defined benefit schemes offering benefits as a percentage of final salary.

However, these schemes have proved so risky and expensive for employers that roughly 80% of private-sector employers have closed these to new members and a growing number are closing them to future accrual of benefit.

Defined contribution schemes have very uncertain outcomes and retirement incomes depend not only on investment returns, but also on the state of the annuities market and interest rates at the point a worker leaves the labour market.

2013
07/09
CATEGORY
deVere
UK Pension Crisis
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Which Is Better – A Property Fund Or Buy To Let? Re blogged iExpats

I recommend reading the below if you want to know about whether to buy property or invest in property .

Which Is Better – A Property Fund Or Buy To Let?

2013
06/27
CATEGORY
General
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Millions face retirement poverty as pension payouts are slashed

I keep get asking by people What can I do ? What are my options ?

All I can say is drop me a mail and I can help , we specialize in helping individuals in regards to taking control of their pensions and making it work for you .

Tony Evans
tony.evans@devere-group.com

A great article below .

Millions face retirement poverty as pension payouts are slashed.

In the last four years the price of an annuity – the retirement income bought with pension savings – has soared by 29 per cent.

Official figures show the impact on people about to retire. In 2009 a £5,000 annual income would have cost a man £118,000 and a woman £133,500. Today, based on unisex rates, it would be £152,800.

Many people will not even be able to afford that. The typical private pension savings pot for households where the head is aged 50 to 64 is £135,200 – which will buy just £4,421 a year.

Pensions expert Joanne Segars said: “Annuity rates have taken a hammering and there is a big ­difference between the pension you could have got and what you would get now.

“Offers that were on the table a few years ago have evaporated. The poor rates are largely because of rising ­longevity, new EU rules, and the weak economy.” Ms Segars, chief executive at the National Association of Pension Funds (NAPF), also warned: “Retirees should think about the type of annuity they want, and whether they have health issues that would get them a better rate.

“Those who fail to shop around risk being locked into a poor deal for the rest of their life.”

Pension expert and former Government adviser Ros ­Altmann blamed the Bank of England’s quantitative ­easing policy for the dramatic drop in annuity rates. “This has meant people’s pensions have been devalued. They are struggling to afford a decent pension even after years of saving,” she said.

“Annuity rates are so poor, and generally offer no protection against inflation or becoming seriously ill and often leave widows out, so most people will have to work longer to have a chance of a decent lifestyle later.”

Figures from the Office for National Statistics Pension Trends report, also show the growing wealth gap between those with gold-plated final salary defined benefit pensions and the rest of the population.

Annuity rates have taken a hammering and there is a big ­difference between the pension you could have got and what you would get now.

Pensions expert Joanne Segars

The average value of a final salary scheme is £178,000 – six times more than the £29,000 for standard schemes.

Of private pension savers only 48 per cent of households now have guaranteed pension rights, while 51 per cent have defined contribution pensions – where the saver bears the risk of investments going down.

As companies close down the expensive final salary schemes, savers in defined contribution plans are set to rise from 6.6 million today to 16 million by 2020.

Tom McPhail, pensions expert at Hargreaves Lansdown, said that many people’s expectations of their retirement incomes were likely to be over-optimistic.

“There is a risk that because people haven’t saved enough they will look to maximise their income today, at the expense of inflation proofing and death benefits for their spouse tomorrow,” he said.

James Baxter, of Tideway Investment Partners, said: “The days of double digit annuity returns are long gone. Savers need to back up their pensions with other tax free investments such as bonds and Isas.”

However the Department for Work and Pensions yesterday announced help for millions with plans to cut the number of “dormant” pensions forgotten by workers who have left a scheme when they start a new job.

The new “pot follows member” system will mean that any payouts accrued of less than £10,000 will automatically move with them. Estimates show that the average person has 11 jobs during their working life. By 2050 there will be around 50 million dormant pension pots.

Last October the NAPF voiced fears that the “pot follows member” approach could erode pension savings. Darren Philp, policy director at NAPF, said: “We’re concerned that a worker’s pension could be automatically shunted from an excellent pension into a bad one with high charges. The Government now recognises this, but we cannot be sure there will be strong safeguards in place.”

Article and pics from Express .

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2013
06/05
CATEGORY
UK Pension Crisis
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7 New Social Class Level Calculator – What class are you ?

A friend of mine sent me this and this caught my eye .

No more 3 “class system” but 7 levels !

As I read through it and did the quiz what I found / saw is that if you want to be successful / rich there is one common factor . Successful people deal with successful people & are friends with successful people .

Birds of a feather flock together

Also successful people do certain activities that other people don’t ,socialising is key .

In short if you want start a journey to becoming successful you need to act and be around successful people .
Also a lot of hard work is needed , my dad always said :

there’s no substitution to hard work

Maybe we should listen a bit more to them 🙂

Happy Thursday,

Tony Evans ,
Writing this from the Tokyo American Club

Link to the BBC -The Great British class calculator

The new classes are defined as:

Elite– the most privileged group in the UK, distinct from the other six classes through its wealth. This group has the highest levels of all three capitals

Established middle class – the second wealthiest, scoring highly on all three capitals. The largest and most gregarious group, scoring second highest for cultural capital

Technical middle class – a small, distinctive new class group which is prosperous but scores low for social and cultural capital. Distinguished by its social isolation and cultural apathy

New affluent workers – a young class group which is socially and culturally active, with middling levels of economic capital

Traditional working class – scores low on all forms of capital, but is not completely deprived. Its members have reasonably high house values, explained by this group having the oldest average age at 66

Emergent service workers – a new, young, urban group which is relatively poor but has high social and cultural capital

Precariat, or precarious proletariat – the poorest, most deprived class, scoring low for social and cultural capital

20130404-131354.jpg

2013
04/04
CATEGORY
General
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Re Blogging #nigeljgreen -UK should prepare for wealth exodus after next election

I am re blogging The below from Nigel Green site as its a great article on the effect of politics on the economy

Link to Nigel Green Blog with the below article

Wealthy Britons and UK-based foreigners are likely to flee Britain and take their funds with them after the next general election as high tax Britain is set to become even higher tax Britain.

Higher tax Britain? Really? Yes, it seems so.

A leading think tank has warned that tax hikes of up to £9bn, which equates to 2p on the basic rate of income tax, are likely to be imposed after the next election to plug the huge hole that will be left in the government’s finances following the spending cuts scheduled for 2015 that were announced in George Osborne budget.

The astute number crunchers at the Institute for Fiscal Studies have shown that the government will have little alternative but to borrow more or increase taxes to pay for the Chancellor’s budget. As this is after an election, a time when MPs can more afford to take unpopular measures, it is highly probable that the newgovernment would opt for the former – taxes would be hiked up.

As such, Wednesday’s budget represents a little bit of pain today for a whole lot more tomorrow.

A tax hike could be the tipping point for many high-net-worth and ultra-high-net-worth individuals, who are the most mobile in society due to their abundant resources.

As so-called ‘high tax Britain’ is set to become ‘even higher tax Britain’, I would fully expect there to be something of a wealth exodus from the UK as wealthyBrits and non-domiciled taxpayers in the UK seek to move themselves and assets to lower-tax jurisdictions in order to safeguard their funds.

Whilst proponents of tax hikes try to dismiss any notion of a global phenomenon of tax migration, both current examples and history prove just the opposite. It’s clear: when high-net-worth individuals are taxed to perceived excessive levels, they simply move – because they can. They are, in effect, taxed out.

Clearly, such capital flight would be detrimental to the UK. HM Revenue and Customs estimate that Britain’s top 275,000 earners contributed more than £41.4bn in tax over the last financial year, which equals 25.7 per cent of the UK’s total income tax bill. This is revenue the country simply cannot afford to lose.

If the UK is serious about boosting its coffers, it should be becoming more tax competitive, to attract high-net-worth individuals and job-creating firms, not less. Indeed, as David Cameron has previously said, the red-carpet should be rolled out for them.

Nigel Green

blog written 23rd March

2013
03/24
CATEGORY
deVere
UK Pension Crisis
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