Chancellor Rishi Sunak announced that the self-employed people struggling because of the coronavirus pandemic will be paid 80 per cent of profits, up to £2,500 a month.
However it may be June until it the scheme comes into effect. Much debate about what people have been declaring, the cost of overheads and more.
There also remain issues with small companies – whose directors cannot exactly furlough themselves – and the recently self-employed who may need to fall on the benefits system, something that has also been criticised.
Better Retirement’s Billy Burrows suggests we may be facing a financial advice emergency for those approaching retirement in such difficult markets. He is offering an advice hotline.
Mortgage advisers warn of business failures as the banks withdraw lending, restrict loan to values, move some mortgages to direct only and home moves are mostly suspended.
A rather nasty combination of factors.
The Pensions Regulator has introduced a raft of measures to help pension schemes. DB scheme trustees can stop cash equivalent transfers, use historic valuation assumptions and ignore current market conditions when completing their assumptions. Schemes can also postpone filing recovery plan submissions.
Anthony Bolton says he has returned to personal investing and suggests opportunities are beginning to emerge for investors. Don’t, he says, invest all your cash at once!
An optimistic note finally – Niche IFA’s Ray Adams says advisers will continue to thrive after the crisis in this Professional Adviser podcast.
Notably he moved his staff to social distancing a week before it was required by the Prime Minister. Caution and optimism sound like a good combination.