Good morning and welcome to your Morning Briefing for Monday 20 June, 2022. To get this in your inbox every morning click here.
Adviser complacency
We all need to be vigilant against complacency from time to time.
A message from a study well worth reading into the advice market is that advisers are satisfied to target the old and rich.
This needs to change if the sector is going to attract a younger demographic that is more tech-savvy.
ESG pointers
Talking is one thing and doing another.
For several years now financial journalists, economists and advisers have talked about environmental, social and governance (ESG) themes.
But how do you translate the talk into concrete action?
Our chief reporter, Lois Valley sat down and talked with Andy Miller, investment specialist at Quilter, about the practicalities.
Cost of living
The familiar world of low inflation has disappeared and the uncomfortable world of high prices has replaced it.
The implication for savers is still being worked out.
Fortunately Alistair McQueen, head of savings and retirement at Aviva, can help us.
Quote Of The Day
Addressing these challenges will require big, bold, coordinated thinking from government – and potentially warrants another Pension Commission.
– Tom Selby, head of retirement policy at AJ Bell, comments on the latest report from the Office for National Statistics about the impact of Coronavirus on UK households and businesses
Stat Attack
New research published by the Institute for Fiscal Studies reveals the impacts of the increase in state pension age from 65 to 66.
£142
The key impact of this was that 65-year-olds missed out on state pension income of £142 per week on average
14%
These reductions in state pension income meant that the absolute income poverty rate for 65-year-olds rose by 14 percentage points, or nearly 100,000 people
24%
This proportion is expected to have reached 24% by late 2020
9%
The higher state pension age also encouraged around 9% or 60,000 more 65-year-olds to stay in their job and retire later
22%
The income poverty rate of single people aged 65 rose by 22 percentage points, from 16% to 38%
21%
The income poverty rate of 65-year-olds with at most GCSE-level education rose by 21 percentage points, from 14% to 35%
24%
The income poverty rate of 65-year-old renters rose by 24 percentage points, from 22% to 46%
Source: Institute for Fiscal Studies, Centre for Ageing Better
In Other News
There are reports 7IM will be sold later this year by Caledonia Investments that bought it in 2015.
According to Sky News the business is tipped to seek a valuation of £400m for the sale in the autumn.
Brooks Macdonald is understood to be one of the bidders and made a takeover bid in February.
Origo has appointed Aileen Caskie as head of marketing communications. She is a CIM qualified chartered marketer and communications practitioner, with multi-sector experience.
Caskie previously worked in the technology, energy and financial services sectors.
A graduate of Stirling University with an honours degree in English, Caskie began her career in creative and marketing agencies and in publishing, before operating as an independent marketing and communications consultant.
She is a fellow of the CIM and achieved her CIM level 7 professional postgraduate diploma in marketing with Oxford College of Marketing in 2017.
From Elsewhere
Global inflation: Five ways US rate rise will affect you (BBC News)
Easyjet cuts more flights to try to manage disruption (Reuters)
Martin Lewis frustrated at slow pace of buy now, pay later rules (The Guardian)
Did You See?
How quickly time flies when you have fun alongside living through a global pandemic, surging inflation and a massive European war.
Momodou Musa Touray reflected on his first year at the team in the last Weekend Essay.
He writes: “I remember how it all started last year in the middle of a global pandemic. The country was in lockdown with the government sanctioned working from home policy.
“I was looking for a fresh start after a stint with the tabloids. Luckily, I found a new home with Money Marketing as a reporter.”
Momodou has gone on to cover many topics from FCA’s Consumer Duty to the government pension triple lock.
“It has been fun writing about such an eclectic range of areas, and I have learned a lot in the process,” he adds.
May the fun continue.