2024 has seen many twists and turns for people’s finances, whether it was because of the ongoing cost-of-living crisis, the recent Autumn Budget or the 2024 UK General Election. The topic of finance has rarely been out of the news this year, leading to much speculation and causing many across the UK to reassess how they look after their money.
With there being a lot to take in on the finance front from 2024, we thought we’d give you a breakdown of key events that may have affected your money matters, keeping you informed and giving you peace of mind!
£31.1 billion in unclaimed pensions
In startling research published ahead of National Pension Tracing Day in October, the Pensions Policy Institute (PPI) revealed that a total of £31.1 billion laid in unclaimed, inactive or lost pension pots. Pension pots are typically unclaimed as a result of various factors, whether it’s switching jobs and subsequently forgetting them or being automatically enrolled in a pension by your workplace and being unaware of it’s existence altogether.
Perhaps the most startling aspect of the research is just how many UK workers could potentially be affected by this, and even more so the potential amount they could have lost. Statistics showed that one in ten workers lost approximately £10,000 due to losing track of their pension, meaning there is a high likelihood that you or your colleagues could be impacted by this.
If you suspect that you may have an unclaimed pension pot, there are various free tools you can use to locate them, including the National Pension Tracing Service.
Inflation and interest rates fluctuation
2024 has been another year for unpredictable highs and lows when it comes to inflation rates. Inflation and interest play heavily into day-to-day costs such as mortgage repayments, food and fuel. Starting off the year with higher rates of 4.0%, inflation later fell to 1.7% before rising again to 2.6% this month. Although optimists may see the drop since January as a considerable victory for savers, long-term impacts may still be felt for some time, and a looming unpredictability of future inflation rates may lead many to not be sure of the best options for their funds.
In any cases of uncertainty relating to your money and the best options for it, it is wise to seek advice from regulated experts. Having a financial adviser on hand is useful for an ongoing set of eyes on market fluctuations, so you don’t have to worry about how and if your funds will be affected. An adviser can also tailor a strategy suited to your financial circumstances and answer any questions you have, smoothing out any uncertainties.
Autumn Budget
This year’s Autumn Budget hit a number of milestones; the first budget from the UK’s newly elected government and also the first Budget announced by a female chancellor. Needless to say, the recent budget was a hugely anticipated event, and many across the nation were concerned but hopeful for their financial circumstances.
Changes to pensions that were announced included the alterations made to the inheritance tax (IHT), where from April 2027, most pension funds passed on death will be included in the deceased individual’s estate. While this may not affect the majority, it is still important to seek assistance in ensuring a plan is in place to protect your pension.
As independent and FCA-regulated financial advisers, Trust a Trader has entrusted My Money Expert in offering expertise to those wanting to unlock their pension potential. Your retirement is truly a time for living the way you want, so why not make sure you’re all financially set up for it?
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My Money Expert has been helping the UK to unlock its financial potential since 2010. Rated 5 Stars on Trustpilot, we offer regulated independent financial advice on a variety of areas including investments, ISAs, pension consolidation and retirement planning. We’re proud to be a B Corporation and are committed to doing right by our clients, as well as the wider community.