Dividends wobble with 40% cuts

Recent dividend announcements have been an unwelcome reminder for some investors that peaks also have downsides. Dividends matter to investors in UK shares. The UK stock market has historically been one of the higher yielding of the world’s major share markets. For example, on 24 May the average dividend yield in the UK, based on…

Another take on long-term care costs

A new set of proposals for funding long-term care has emerged from a significant source. The funding of long-term care is an issue that beats even Brexit in terms of protracted political procrastination. A Royal Commission on the subject was established in 1997 and reported in 1999. Its proposals were rejected by the then Labour government…

Brave new world of UBI?

UBI – If those three letters mean nothing to you now, they may do soon. Universal Basic Income (UBI) has become a topic attracting attention among some think-tanks and political parties, both in the UK and overseas.The idea behind UBI is simple and has an obvious electoral appeal. In its most basic form, UBI would…

Flexible pensions: too taxing for many

Flexible pensions are causing tax overpayment problems

Recent HMRC statistics highlight the over-taxation of some flexible pensions benefits. More than one million people have received flexible pension payments thanks to therules introduced just over four years ago. HMRC’s most recent statistics, to the end of March 2019, show that 1,113,000 people have withdrawn over £25,600m from their pensions, across 6,136,000 payments.The amounts withdrawn…