In the News
UNCLAIMED PENSION POTS TOP £19.4BN
Research1 has shown that because only 1 in 25 people consider telling their pension provider when they move home, around 1.6 million pension pots totalling £19.4bn – the equivalent of nearly £13,000 per pension pot – have gone unclaimed. Estimates from the government suggest that there will be as many as 50 million dormant and lost pensions by 2050. In 2017, over 375,000 attempts were made to contact customers, leading to £1bn in assets being reunited with them.
TEMPER YOUR INCOME EXPECTATIONS AS DIVIDEND DROUGHT DESCENDS
The economic shock from COVID-19 has provided a blow to income investors, with 45% of UK companies cutting dividends this year and more expected to follow suit as the year progresses. Forecasts suggest over £52bn in company dividends are at risk in the UK this year2. The data
highlights the biggest impacted sector is banks, while defensive dividends are more likely to be safe, such as food retail, healthcare, drink and tobacco, and basic consumer goods.
In addition, in May, the Treasury announced that companies borrowing over £50m through the Coronavirus Large Business Interruption Loan Scheme would be subject to restrictions, including a ban on dividend payments to shareholders, except where they were previously agreed, adding a further potential dampener on investors’ income expectations this year.
2Link Assets, 2020
The value of investments can go down as well as up and you may not get back the full amount you invested.