Do you have a rainy day fund? Think again, if you don’t – where you hold your cash matters. A common piece of basic financial advice is that you should have enough of a cash reserve to cover at least three months’ (and ideally up to six) of your essential regular outgoings. That means expenses like your mortgage or rent, food, council tax and utility bills: it does not include the nice-to-haves. Nevertheless, the sum involved can easily run to five figures, especially if you

The government has announced an interest rate cap for some student loans. It is not all it seems. Following Easter, the Department for Education (DfE) announced a 6% interest rate cap on Plan 2 (and 3) student loans. The DfE press release read “Interest rate cap introduced to protect Plan 2 borrowers”. (1) This was a somewhat creative interpretation. To see why, you need to delve into the arcane world of Plan 2 student loans, which were made for undergraduate courses starting

Further details have emerged about the potential impact of the ‘mansion tax’ announced in the last Budget.(1) Rachel Reeves’ first two Budgets have so far featured announcements of tax-raising measures with delayed starting dates. For example, the controversial changes to inheritance tax (IHT) business and agricultural relief emerged in October 2024, but have only just taken effect. Similarly, bringing pensions within the scope of IHT was announced at the same time, but will

Were you born after 5 April 1960? There can sometimes be a long period between when legislation becomes law and when it takes effect. The delay is often due to the legislation being only a broad framework to which a raft of detailed regulations is subsequently attached. However, there are instances where a protracted run-in is a deliberate feature. Such is the case with the State pension age (SPA) provisions in the Pensions Act 2014.(1) These put into law a phased one-year in

Bricks and mortar are not always a sure-fire winner. From January 2016 to January 2026, did house prices grow faster than inflation? The answer is in the graph below. Source: Nationwide, ONS(1) Nationwide Building Society says the average UK house price in January 2016 was £196,829. Ten years later, it had risen to £270,873, a 37.6% increase. Over the same period, the Consumer Prices Index (CPI) increased by 40.2%.(2) If the result is not what you expected, it could be becaus

New research reveals that five million mid-lifers, aged 40–54, face a difficult retirement.(1) The retirement landscape in the UK has changed significantly over the last 50 years: In 1978, the State pension moved from what was largely a flat rate benefit to a combination of flat rate and, for employees only, earnings-related State pensions. Over the years, the earnings-related element underwent a variety of changes, mostly benefits (and government costs) until in 2016 it was