Money
Seven pension changes that could come in the autumn Budget
THE Labour government will deliver its first budget on Wednesday, October 30.
Prime Minister, Keir Starmer has already warned that the Autumn Statement will be “painful”, leading to widespread speculation around what changes lie ahead.
Experts say that pensions might be a key target for Rachel Reeves at the speech – which is being called a Budget, as it is the party’s first fiscal speech since the election – particularly since the Chancellor spoke about a £22billion black hole in the UK’s finances.
Already, pensions companies are seeing people withdraw money from pensions, amidst concerns that the government will change the goalposts.
However, financial commentators are warning people not to make rash decisions now, as it could significantly impact your financial future.
Michael Summersgill, chief executive at finance firm AJ Bell, said: “Constant rumour and speculation about the future of retirement tax incentives are hugely damaging.
“People are taking financial decisions in part based on pre-Budget speculation and it chips away at people’s confidence in pensions generally.
“Almost 100% of advisers we surveyed said they’ve dealt with tax and pension queries from clients concerned about the Budget, with a third saying they had seen an increase in clients wanting to take tax-free cash in anticipation of a pensions tax raid in the Budget.”
Shane Julian, managing director and financial planner at Brancaster House Financial Planning added: “Our advice to consumers ahead of the Autumn Budget is to not get caught up in speculation… It’s important to stay calm and avoid knee-jerk reactions to potential changes in pension policies.”
That said, people should be keeping a close eye on the budget, to understand what’s been announced and how it could impact your finances.
Some of the changes that are expected could change your retirement plans, so it’s important to reassess once we know what’s been announced.
To help you understand what to keep an eye out for, The Sun has spoken to several experts in the pensions industry and asked for their key predictions for what pensions changes might be on the chancellor’s hit list.
State pension increases
Not strictly a Budget announcement, but the government is expected to confirm how much the state pension will rise by from next April.
The Labour government has committed to the triple-lock, which says that state pensions will rise by the higher of earnings rises, inflation, or 2.5%.
Last month’s earnings figures showed average growth of 4%, so this is the increase that is most widely expected.
The final decision is typically made by the Work and Pension Secretary, usually around the time of the budget.
Some commentators have also said that the chancellor might reconfirm Labour’s commitment to the triple-lock in the Budget.
One important thing to look at out for is income tax band freezes. Currently, people who only receive the state pension do not pay any income tax because it falls under the 20% tax threshold.
However, thresholds are currently expected to stay frozen until 2028.
Even if the state pension only rises by the minimum possible of 2.5% under the triple-lock, this will push some of the poorest pensioners into paying income tax before the freeze lifts.
Changes to the state pension age
The current state pension age is 66, but there are already plans in place to increase this to 67 in the years 2026-28 and then 68 from 2044-46.
The second increase impacts anyone who was born after 1977.
There is another review of the state pension age planned for this parliament, which will make recommendations about whether the SPA should change, and if so when this will happen.
The response isn’t expected until next year, so we’re unlikely to hear anything about it in this Autumn Statement, although it could be mentioned.
Cuts to tax-free pensions cash
One of the most commonly predicted changes for this year’s budget is the rules around tax-free cash.
Under the current system, retirees can access 25% of their pensions saving tax-free, up to a limit of £268,275.
However, there are rumours that the government might reduce the percentage that can be taken tax-free or reduce the cap on the maximum amount.
Calum Cooper, head of pensions policy innovation at Hymans Robertson, cautions that any changes could directly affect people’s broader financial plans. For example, people planning on using the tax-free cash to pay off their mortgages might not be able to do so.
Generally, experts are concerned about the impact that changes to the rules would have on pension saving.
For instance, Brancaster House’s Mr Julian said: “Taking away these incentives could discourage saving and ultimately increase pressure on the State’s welfare system in the future.”
He adds that the IMF has proposed a flat amount of £100,000 rather than a change to the overall percentage.
He said: “This could be an ‘easier’ option for Labour, but I would hope if such a change is implemented, this would be on an age basis.”
Broadstone’s head of policy, David Brooks, says that estimations show that changing the limit to £100,000 would impact one in five retirees and raise around £2bn a year in the long run.
Clare Moffat, pensions expert at Royal London urges people not to panic, and says that typically these changes are introduced slowly. She adds that it’s important that people seek advice or guidance before removing any money from their pensions.
She said: “In the past, changes to rules have not been brought in overnight, giving people notice of the change and giving those who were entitled to a higher amount the opportunity to access that higher amount when they want to.
“Taking money out of a tax efficient environment isn’t something to be done on a whim. And if you have a large amount in a pension, taking out all of your tax-free cash means that it could be sitting in your bank account.
” If the worst were to happen and you died, that could mean that inheritance tax would be payable. Currently if money is in your pension pot and you died then it wouldn’t normally be subject to inheritance tax.”
Mr Summersgill added: “Even the perception that government might renege on the terms of the deal risks people taking actions which may not be in their best interest.
“Rumours about the future of tax-free cash, one of the best understood and most valued benefits of pensions, are particularly problematic.
“Taking your tax-free cash is an irreversible decision and, assuming the chancellor doesn’t pursue a disastrous raid on tax-free cash, those people may find they’re in a worse financial position long-term.”
Reducing the annual allowance or reintroducing a lifetime allowance
Independent financial adviser company Edale says we could see changes to the annual allowance.
This is the maximum amount of tax-relieved contributions that can be made to a pension each year and currently sits at £60,000.
It says that the government could reduce the annual allowance further, perhaps back to £40,000 or lower.
Another target could be the carry-forward rule, which allows individuals to use any unused annual allowance from the previous three tax years, provided they were members of a pension scheme at the time.
Edale said: “The government could reduce the number of years from which unused allowances can be carried forward (e.g., reducing it from three years to one year). Alternatively, they could cap the total amount that can be carried forward.”
Labour could also look to reintroduce the Lifetime Allowance (LTA) which is the maximum amount you can accumulate in your pension pots without incurring extra tax charges.
It had previously pledged to do this, then said it would create an exemption for some public sector workers.
This promise was then reversed, before Labour quietly removed the pledge to reintroduce the LTA from its election manifesto.
But experts have warned that this doesn’t mean it won’t be reintroduced at a later date.
Introducing flat-rate tax relief
One rumour that does the rounds every time the budget happens is changes to the way that pensions tax relief works.
Under the current system, the tax relief you get on your pension contributions is determined by your marginal rate of income tax. Basic rate taxpayers (and those who earn under the tax threshold) get 20%, higher rate tax payers get 40% and additional rate taxpayers get 45% .
But moving to a flat-rate pension tax relief system, often predicted to be around 30%, reduces the relief available to higher earners, lowering the overall cost to the government.
Mr Brooks said: “This is the main rumour doing the rounds and would have the biggest impact on people saving for a pension but is likely to be the hardest.
“This would likely be bad news for some higher rate tax payers but better for basic rate tax payers who would see a greater benefit in pension savings.
“It would also have challenges around salary sacrifice and net pay arrangements and could be very tricky to implement in Defined Benefit schemes so would have potentially major ramifications for public sector workers.”
Rules around inheritance tax and pensions
Another hotly tipped change is around the way that pensions and inheritance tax interact.
Under the current rules, money held in a defined contribution pension does not form part of your estate and can be passed on inheritance tax free. If you die before age 75, the money might also be income tax free.
However, this could all be about to change.
Tom McPhail, director of public affairs at the Lang Cat said: “Top of my list of expected changes is the introduction of some form of death tax on unused DC pots (probably with an interspousal exemption).
“It would nudge savers back towards choosing more guaranteed incomes, so reversing some of the effects of the 2015 pension freedoms.
“It would also close off an anomaly whereby tax relief funded savings are allowed to grow tax free and then pass on to the next generation without paying any inheritance tax.”
Mr Brooks added: “Changing one or both of these rules would be a relatively easy move and potentially lucrative. This could risk devaluing the benefit of pensions as a savings method and from a technical point of view, there could be complications around trust laws.
Brancaster House Financial Planning’s Julian agrees that as pensions are usually held in Trusts, this would require significant legal changes. He said: “It’s not something that would happen overnight, but it’s an area worth watching as it could have big implications for pension savers.”
Changes to national insurance and pensions
Under the current rules employer contributions to pensions are exempt from National Insurance Contributions (NICs) and are tax-deductible.
However, Edale says that one potential option is that the government could introduce NICs on employer contributions or limit the tax deductibility of these contributions.
Ultimately, this could reduce the cost of pension tax relief to the government. In fact, IFS calculations show that applying employer NI to employer contributions to a pension would raise huge amounts – £17bn a year – for the Treasury.
However, Fidelity warns this could also reduce the amounts being saved into pensions by at least the same amount if employers pass on the cost to their workers.
The Lang Cat’s Mr McPhail said: “I think it likely the Chancellor will reduce or withdraw the NI relief currently granted on employer pension contributions.
“This has the superficial appeal of being low hanging fruit; it can generate lots of money for the Chancellor to spend and it won’t have any immediate effect on people’s household finances.
“However, in the long term, like Gordon Brown’s ACT raid in 1997, it would undoubtedly reduce the amount of money going into people’s pensions and so would lead to poorer retirements for millions.”
What is National Insurance?
NATIONAL Insurance is a tax on your earnings, or profits if you’re self-employed.
These contributions make you eligible for things like the state pension and certain benefits.
You’ll usually pay National Insurance Contributions (NICs) when you’re over the age of 16 and earning a certain amount.
For example, if you earn £1,000 a week, you pay nothing on the first £242.
Earn over that and you pay 10% on the next £725 – so £72.50. Then you pay 2%o on the rest, so £33, which works out as 66p.
For the self-employed rates are slightly different.
You can also get something known as National Insurance in some circumstances when you’re not working, for example when you have kids and claim certain benefits.
NICs are usually taken automatically by your employer and paid to HMRC, so you don’t need to do anything.
You can see how much NICs you pay on your wage slip.
Anyone working for themselves usually has to pay NICs themselves when completing a self-assessment tax return.
Money
How to protect your business from lawsuits?
Facing a lawsuit can present significant challenges for any business, potentially leading to financial ruin and reputational damage. Implementing preventative measures is the key to shielding your company from legal action. This requires an understanding of areas of vulnerability and acting proactively.
Legal documentation stands at the forefront of business protection. Well-drafted contracts ensure that all parties understand their obligations and rights, thus reducing the risk of disputes. Furthermore, regular consultations with a legal expert can keep your company policies updated and compliant with current laws.
Employees also play an essential role in maintaining a lawsuit-free environment. Adequate training and a clear understanding of company policies foster a workplace culture that respects the law and emphasizes ethical behaviour. By addressing these critical areas, businesses can significantly decrease the likelihood of facing unwanted legal challenges.
Understanding Legal Risks in Business
Businesses encounter various legal challenges that require careful navigation. Identifying potential threats and knowing common missteps can help companies mitigate risks effectively.
Types of Lawsuits Businesses Face
Businesses can face several types of lawsuits. Breach of contract occurs when one party fails to fulfil contractual obligations, leading to legal disputes. Companies may also face employment-related lawsuits, such as wrongful termination or discrimination claims. Intellectual property infringement is another risk businesses encounter, involving the unauthorized use of trademarks or copyrights.
Negligence claims can arise if a company fails to provide a safe environment for customers or employees. Consumer protection lawsuits may occur if products are deemed defective or misleading. Each of these lawsuits can lead to significant financial and reputational damage. Consulting with a business attorney can help in preemptively addressing these legal threats.
Common Legal Mistakes Companies Make
Businesses often make legal mistakes that can result in lawsuits. Failing to document agreements properly is a frequent error that can lead to misunderstandings and disputes. Companies might neglect compliance with employment laws, including wage regulations and workplace safety standards, risking regulatory actions.
Mismanagement of intellectual property is another common mistake. Businesses sometimes use trademarks without proper authorization, inviting legal issues. Ignoring cybersecurity, with inadequate protection for customer data, can result in privacy violations. Inappropriate responses to legal actions, such as delayed engagement with legal counsel, may exacerbate the situation. Being proactive and engaging a competent business attorney can prevent many of these issues.
Preventive Legal Strategies
Navigating legal complexities is crucial for business longevity. Identifying and mitigating potential legal risks can save time and resources. Businesses can focus on strong contracts, regulatory compliance, and intellectual property protection to avoid lawsuits.
Implementing Strong Contracts and Agreements
A robust contract serves as the backbone of any business relationship, outlining the rights and responsibilities of each party. Effective contracts should be clear, comprehensive, and drafted with the assistance of a competent business lawyer in Pittsburgh, or wherever the business operates.
Businesses must ensure contracts are tailored to specific needs, avoiding generic templates that may miss critical clauses. These documents should cover key elements such as payment terms, delivery timelines, dispute resolutions, and confidentiality agreements.
Engaging in regular reviews and revisions of contracts can prevent misunderstandings and legal vulnerabilities. A legal expert can help spot potential issues and make necessary adjustments, ensuring that the contracts remain compliant with current laws and regulations.
Maintaining Regulatory Compliance
Staying compliant with industry regulations is essential to avoid costly lawsuits and penalties. It involves understanding and adhering to legal requirements relevant to the business sector, which may include environmental laws, labour laws, or data protection regulations.
Businesses should develop a compliance program that includes regular audits and training sessions. This keeps staff informed about legal obligations and ensures that processes align with regulatory standards.
Business lawyers can offer guidance on regulatory changes, helping businesses adjust policies and operations accordingly. They can also assist in drafting internal compliance manuals that detail every requirement, providing employees with easy access to necessary information.
Protecting Intellectual Property
Safeguarding intellectual property (IP) is vital for maintaining a competitive edge and preventing misuse. Various forms of IP, such as trademarks, patents, and copyrights, require different protections and registrations.
Businesses should conduct regular IP audits to identify and document all intellectual properties. Registering IP with the appropriate authorities ensures legal protection, making it easier to enforce rights if needed.
A knowledgeable lawyer can assist in conducting these audits and filing registrations, protecting brand identity and innovation. Businesses also need strategies for monitoring any unauthorized use of their IP, which may involve setting up alerts or subscribing to monitoring services.
Handling Lawsuits Effectively
Managing legal challenges is crucial for any business. Partnering with a skilled attorney and making informed choices about settlements are among the strategies to handle lawsuits effectively.
The Role of a Business Attorney During Litigation
A business attorney is vital in navigating the complexities of litigation. They provide expert guidance in assessing the merits of a claim and outlining potential defences.
Their expertise helps in gathering and preserving evidence, preparing legal documents, and ensuring compliance with court procedures. They also communicate with the opposing party to explore potential resolutions. By maintaining a strong understanding of applicable laws, a business attorney can offer strategic advice that minimizes risks and potential liabilities for the business. Engaging an attorney early in the process can be instrumental in achieving a favourable outcome.
Settlement Considerations and When to Fight a Claim
Determining whether to settle or litigate depends on several factors. Settlement may be beneficial when it offers a quicker resolution and lower costs compared to prolonged litigation.
Factors such as the strength of the evidence, potential damages, and reputational impacts should be assessed. Engaging in negotiation with the other party can sometimes lead to mutually beneficial solutions. When the claim lacks merit or if a win could deter future lawsuits, opting to contest the claim may present advantages. Each case requires a tailored approach, weighing costs against benefits effectively, often with the guidance of a skilled attorney.
Financial Management and Insurance
Effective financial management and comprehensive insurance coverage are critical in safeguarding a business against lawsuits. Identifying suitable insurance policies and managing financial risks can greatly reduce potential liabilities.
Securing Adequate Insurance Coverage
Insurance is a crucial shield against business liabilities. Businesses should invest in General Liability Insurance to cover legal fees, settlements, and medical expenses related to third-party injuries or property damage. Additionally, Professional Liability Insurance addresses errors, omissions, or malpractice claims. Business Interruption Insurance protects against revenue loss in crises.
Evaluating the specific needs of the business is essential. Depending on the industry, other policies like Product Liability Insurance or Employment Practices Liability Insurance may be worthwhile. Consulting an insurance expert ensures that coverage is comprehensive, aligning with the business’s risk profile.
Managing Litigation Costs and Financial Risks
Managing litigation costs requires a strategic approach. Establishing an emergency fund ensures immediate access to funds if legal issues arise. Analyzing financial statements helps identify trends and potential vulnerabilities.
Implementing risk management strategies reduces exposure to legal threats. Companies should regularly review contracts and compliance with relevant laws. Investing in legal counsel or risk management software aids in identifying and mitigating financial risks efficiently.
Regular audit processes can uncover and address financial weaknesses promptly. Diversifying assets and implementing strict financial controls further bolster financial resilience. By proactively managing litigation expenses and financial obligations, companies can maintain stability amidst legal challenges.
Money
What advisers can learn from groundbreaking new Apple Intelligence
Apple’s iOS 18 has just dropped and, with it, a major upgrade that could make Siri smarter than your average human — or at least better at answering questions.
Dubbed Apple Intelligence, this new suite of artificial-intelligence (AI) tools promises to turbocharge the iPhone with features powered by ChatGPT.
The iOS 18.1 update introduces advanced features, such as improved writing tools, suggested replies in Messages, email summarisation and phone-call transcription.
Apple has hinted at even more exciting updates down the road. Think custom emojis and even deeper Siri integration with your calendar, photos and messages.
Fintech isn’t magic. Establish a ‘chief AI officer’ role in your business
Imagine asking Siri when your mum’s flight is landing and it knows right away. No more hunting through emails.
So, what can our industry learn from this new wave of smartphone generative AI?
1. Forget tech stacks; build an ecosystem
Apple Intelligence will offer more extensive and seamless integrations, data intelligence and analytics than before, with users able to access this across all the apps they employ.
Where financial services are concerned, it’s time to stand tall against legacy tech that does not deliver streamlined integration. We need integrations that facilitate accurate and high-quality data reporting across all stakeholders.
Remember that new technology comes with its fair share of quirks
With a data-led Financial Conduct Authority armed with the Consumer Duty, tech firms are front and centre in the distribution chain and cannot be seen to be a barrier to advice firms’ assessment and reporting on client outcomes.
Synthetic data lakes must be made available by tech providers so firms can gain access to pooled client data. Without this, we are stuck with Band-Aid solutions not fit for purpose and are in for a rude awakening with blockchain, tokenisation, smart contracts and Web3 expansion just around the corner.
2. Privacy matters
Apple has been banging the privacy drum for years and, with Apple Intelligence, it’s sticking to its guns.
The good news? Most of the AI processing will happen directly on the device, keeping data safe — or so Apple says. If Siri can’t answer a question, it may reach out to Apple’s servers or ChatGPT, but not before anonymising and encrypting data.
It’s time to stand tall against legacy tech that does not deliver streamlined integration
It’s not all sunshine and rainbows, though. Some features, such as enhanced Siri capabilities, require more data access. Apple could be reading your messages, tracking your calendar and even recording your calls (with permission, of course).
On this, advice firms need to ensure they have a robust due-diligence, governance and oversight process. Enforce a strong AI code of conduct and make sure AI ethics is front and centre of all implementation and ongoing services.
3. Roll with the glitches
Remember that new technology comes with its fair share of quirks. Apple chief executive Tim Cook even admitted that Apple Intelligence might have a few hiccups — or “hallucinations”.
We all know that fintech isn’t magic, so we need to ensure we have the right people, in the right roles, with the right skillsets. Establish a ‘chief AI officer’ role in your business — even if that’s outsourced — as well as an AI champion and/or data scientist who knows how to deploy and monitor AI.
4. The showdown
One of the most exciting aspects of Apple Intelligence is its ChatGPT integration. Siri will be your first stop for questions but ChatGPT will swoop in to save the day if it’s out of its depth.
Enforce a strong AI code of conduct and make sure AI ethics is front and centre of all implementation and ongoing services
The approach at many fintech firms works in reverse. We engage generative AI first to automate a response for our compliance chatbot, client file review or client document audit. But, given the potential for “hallucinations”, rules are built in by our compliance team to ensure they are caught, eliminated and replaced by accurate regulatory information.
Final thoughts
Apple Intelligence will revolutionise the way we use our iPhones, making them more helpful and intuitive.
We need to ensure we have the right people, in the right roles, with the right skillsets
For the planning profession, AI should be considered a great leveller, increasing efficiency across key activities such as client engagement, servicing, reporting and compliance, as well as providing significant cost and time savings.
Chris Davies is founder and chief executive of Model Office
This article featured in the October 2024 edition of Money Marketing.
If you would like to subscribe to the monthly magazine, please click here.
Money
Major supermarket opens Christmas delivery slots TODAY – how to get one
A MAJOR supermarket has opened its Christmas delivery slots today, as the countdown to the big day begins.
Asda is now allowing customers to secure a spot for when they want their festive grocery shopping dropped off ahead of the holidays.
As of October 15, shoppers who pay for its “Delivery Pass” service can book their slot for December.
A delivery pass is a payment plan which lets you make multiple orders without paying for delivery each time.
They can be paid monthly or yearly, with prices for Asda’s pass starting at £3.95 per month.
The service gives you priority access to slots alongside next-day delivery.
The minimum online spend at Asda is £40 for delivery and £25 for click and collect.
The UK’s third-largest supermarket said that over one million home delivery and click-and-collect slots will be available in the week leading up to Christmas.
Shoppers can also make changes or additions to their basket up until 11 pm the night before their delivery or collection.
But if you are not paying for a delivery pass you are going to have to wait a bit longer to book your spot.
Asda said regular shoppers will have to wait until Tuesday, October 22 to secure their space.
How to secure your spot early
If you want to book a spot early you must already be a Delivery Pass customer.
You can sign up for the pass by visiting Asda’s online website at, https://groceries.asda.com/delivery-pass.
You will need to have an Asda grocery account to sign up for a pass and once you have paid it will be immediately available to use.
There is a minimum order of £40 and you can only use the service once a day.
At the moment an anytime 12-month pass is £6.95 per month, or for a midweek pass, it is £3.95.
If you would prefer to make a one-off payment an anytime 12-month pass costs £69.50 and a midweek 12-month pass costs £39.50.
Perks to signing up include next-day delivery, recurring booking slots, priority access to slots and free next-day collection on click and collect.
When do other retailers’ slots open?
It’s not just Asda which has opened slots ahead of Christmas.
Tesco said this month that its annual delivery pass customers can book their slots from 6am on Tuesday, November 5.
This gives customers a one-week head start on regular shoppers, who will have to wait until November 12 to nab a slot.
But if you also want to get ahead of the game, you can still sign up to the delivery plan by Monday, November 4.
Saisnbury’s said Christmas delivery slots open on October 16 for Delivery Pass customers and 23rd October for others.
Waitrose has also already allowed its customers to start booking slots for Christmas.
Meanwhile, Morrisons has already started taking bookings with slots open now.
The same goes for Ocado with the pure-play online retailers offering customers the chance to book slots from as early as September.
M&S also launched its food-to-order service and the end of September, with slots filling up immediately.
The service lets you book and pay for your Christmas dinner and other snacks ahead of time and then collect them closer to the big day.
Orders this year can be collected on December 22, 23 or 24 in your local M&S Food Hall.
For Iceland, shoppers will be able to book delivery slots from around the middle of December.
You can read more about how this works by clicking the link here.
What is a grocey delivery pass?
DELIVERY passes allow customers to pay a flat fee either monthly, yearly or six monthly, and then get their deliveries for free.
In some instances, you can also get first dips on booking your Christmas delivery slot.
You should only consider taking out a delivery pass if you order groceries online regularly and if you think it will save you money in the long term.
All major grocery stores offer the service but the price varies.
For example, Tesco’s anytime delivery plan costs £7.99 per month for 12 months or £47.88 if you don’t want to pay monthly.
You can also pay £47.88 if you don’t want to pay monthly.
Meanwhile, Sainsbury’s charges £7.50 per month for the service or £80.00 for a 12-month upfront payment.
Asda has passes starting from £3.95 per month or a 12-month payment of £69.50
Morrisons also offer the service with prices starting from £5
Money
Can an Insurance Claims Lawyer Help Me Appeal a Denied Insurance Claim?
When an individual’s insurance claim is denied, it can be a frustrating and often confusing experience. The process of appealing a denied insurance claim can be intricate and may require a clear understanding of insurance law and policy language. In such circumstances, consulting an insurance claims lawyer can be a critical step. These legal professionals specialize in analyzing the policy details, identifying grounds for appeal, and formulating a strategic approach to challenge the denial.
An insurance claims lawyer typically has expertise in navigating the complex appeal process. They employ their knowledge to scrutinize the reasons for denial and gather evidence that supports the policyholder’s case. The lawyer’s involvement can help ensure that the appeal is constructed professionally and presented cogently, increasing the chances of overturning the insurer’s decision.
Furthermore, these lawyers are adept at negotiating with insurance companies and advocating for their clients’ rights. If the appeal is not successful, an insurance claims lawyer in Fort Myers may also advise on the feasibility of taking further legal action. Through their guidance, policyholders gain the advantage of an informed ally committed to protecting their interests and securing a fair outcome.
Understanding Insurance Claim Denials
Common Reasons for Denial
- Policy Exclusions: Most insurance policies have specific exclusions. If the claim falls under these exclusions, the insurance company will likely deny it.
- Lapsed Policy: If premium payments are not up to date, an insurance policy may lapse, resulting in denied claims.
- Insufficient Documentation: Insurance companies require adequate documentation to process claims. Claims may be denied if the documentation is incomplete or insufficient.
- Filing Deadlines: Insurance policies often impose deadlines for filing claims. Failure to adhere to these can lead to denial.
The Appeals Process
After a claim is denied, policyholders have the right to an appeal. This process typically involves:
- Reviewing the Denial Letter: It is essential to understand the reasons for denial as outlined in the correspondence from the insurer.
- Gathering Documentation: This may include additional evidence or information to contest the denial.
- Submitting a Formal Appeal: This includes a written statement and any additional documents to support the appeal, directed to the insurer.
In Fort Myers, an insurance claim attorney can assist at various stages of the appeals process, ensuring that policyholders understand their rights and the available legal pathways to challenge a denied insurance claim.
How an Insurance Claims Lawyer Can Assist
When an insurance claim is denied, a specialized lawyer can provide crucial guidance and representation to challenge the decision. Their expertise is invaluable in understanding the intricacies of insurance law and advocating for your rightful compensation.
Assessing Your Denied Claim
An insurance claim attorney will meticulously review the facts of your denied insurance claim to ascertain the validity of the insurer’s decision. They will scrutinize the policy details and the reasons provided for denial. This rigorous examination helps them determine if the denial was unjust and whether there are grounds for an appeal.
Navigating Legal Complexities
Insurance law can be a labyrinth of statutes, regulations, and case law that laypersons find challenging to navigate. A seasoned attorney in Fort Myers excels in interpreting these complexities and crafting a strategy to counter the denial. They can manage necessary paperwork, meet critical deadlines, and engage with insurance company lawyers on your behalf.
Representing Your Appeal
Should your case proceed to appeal, an insurance claims lawyer will serve as your advocate. They will present your argument, fortified with evidence, to the appropriate appeals board or court. They assert your position and seek to overturn the denial, aiming to secure the insurance benefits due to you. The lawyer’s presentation can include witness testimony, expert opinions, and other persuasive documentation.
Money
The Morning Briefing: Lowest wage growth in over two years; ‘Polluter pays’ proposals forces due diligence
Good morning and welcome to your Morning Briefing for Tuesday 15 October 2024. To get this in your inbox every morning click here.
Lowest wage growth in over two years fuels interest-rate speculation
Wage growth in the UK has slowed significantly, with pay excluding bonuses rising by just 4.9% between June and August compared to a year ago.
This marks the slowest rate of wage growth in over two years – only 3.8% when bonuses are factored in.
These figures, released today (15 October) by the Office for National Statistics (ONS), have fuelled expectations that the Bank of England may cut interest rates in November.
‘Polluter pays’ proposals forcing buyers to do more due diligence
The Financial Conduct Authority’s “polluter pays” proposals are forcing consolidators to carry out more due diligence when buying advice firms, Gunner & Co managing director Louise Jeffreys has suggested.
The FCA set out its “polluter pays” proposals in November last year. They require personal investment firms to set aside capital to cover compensation costs.
In a Dear CEO letter sent to advice and investment firm owners last week, the regulator said it has seen “significant liabilities” fall to the Financial Services Compensation Scheme (FSCS).
What advisers can learn from groundbreaking new Apple Intelligence
Apple’s iOS 18 has just dropped and, with it, a major upgrade that could make Siri smarter than your average human — or at least better at answering questions.
Apple has hinted at even more exciting updates down the road. Think custom emojis and even deeper Siri integration with your calendar, photos and messages.
Imagine asking Siri when your mum’s flight is landing and it knows right away. No more hunting through emails.
So, asks Chris Davies, founder and chief executive of Model Office, what can our industry learn from this new wave of smartphone generative AI?
Quote Of The Day
A slightly higher rate of increase is welcome for pensioners, though will be an unwelcome £100m extra cost for the Chancellor as she prepares her Budget
– Steve Webb, partner at LCP, comments on the revised figures from the ONS for average earnings growth in the three months to July this year – a number used for the ‘triple lock’ calculation
Stat Attack
A new report, The Women and Wealth Report 2024, titled The Real Cost of Inequality, reveals financial gaps between men and women that span investments, pensions and inheritances.
29%
of women save less than £100 each month, versus 15% of men.
17%
of women feel very confident about achieving their long-term financial goals, compared to 29% of men.
53%
of women cite a lack of extra cash as their main barrier to investing.
26%
of women have a stocks and shares ISA, compared to 45% of men.
13%
of women are very confident they’ll be able to leave an inheritance, compared to 22% of men.
Source: Schroders Personal Wealth
In Other News
A survey by ARK Invest Europe found that 80% of European professional investors are indifferent to the active versus passive ETF debate, focusing instead on selecting the best product.
The survey of 180 investors revealed that only 10% favoured active or index ETFs exclusively.
The most popular investment themes were AI and Robotics, attracting 83% of respondents, followed by Cybersecurity (61%) and Innovation (57%).
Sustainable Infrastructure (41%) and Sustainable Food (40%) also ranked highly, highlighting investor interest in technology and sustainability.
Rahul Bhushan, managing director at ARK Invest Europe, said: “This survey, despite its small sample size, challenges the often-simplistic narrative of active versus index investing.
“It’s not a binary choice. Instead, professional investors emphasise the importance of well-constructed ETF products and the quality and clarity of the investment process, irrespective of whether it is active or index.”
PM does not rule out NI rise for employers (BBC News)
UK pledges regulatory overhaul to try to win over investors (Reuters)
The sick man of Europe is… Europe (Bloomberg)
Did You See?
Investors’ ‘love affair’ with environmental, social, and governance (ESG) is “continuing to cool” according to research from the Association of Investment Companies (AIC).
AIC’s ESG Attitudes Tracker revealed the number of private investors who said they consider ESG when it comes to investing has dropped for the third year in a row.
According to the Tracker, less than half (48%) now think about ESG, compared to 66% in 2021.
Over two fifths (43%) of investors said they consider themselves “fans” of ESG investing, down from 60% in 2021, 51% in 2022 and 50% in 2023.
Only 17% of respondents felt ESG investing is likely to improve performance, down from 22% last year.
Read the full story here.
Money
Universal Credit and benefits could rise by up to £163 a year – how much better off will you be?
MILLIONS of households will this week find out how much their Universal Credit or benefits will rise by next year.
Payments usually rise every April in order to keep up with the cost of things such as food, fuel or household bills.
The process is called “uprating” and payments usually increase in line with the previous September’s inflation figure, which will be published on Wednesday.
Inflation is the measure of how much the prices of goods and services have changed over the past year.
Figures tracking the rate of inflation are published every month but September’s figure is the only one used to increase benefits payments.
Once the figures are released it is expected that the Department for Work and Pensions (DWP) will later confirm how much benefits will be increased – usually before the end of the year.
This year the majority of benefits increased by 6.7% although a few rose by as much as 8.5%.
Meanwhile, in 2023 inflation-linked benefits and tax credits were hiked by 10.1%.
But Universal Credit and other benefits are expected to rise by far less next year.
Inflation was at 2.2% in August and experts expect that this will remain the case for September.
At this rate a single person aged over 25 who is claiming Universal Credit would receive £402.11 a month from April.
This is £8.66 per month more than the £393.45 they currently get.
In comparison, last year monthly Universal Credit payments were hiked by £24.71.
Joint applicants who are aged over 25 may receive around £631.19 per month from April, £13.59 more than they currently get.
This would add up to a £163.08 difference over the course of a year.
But it is still substantially less than the £38.78 a month, or £465.36 a year, uptick they received this year.
Meanwhile, those who are single and aged under 25 could see their currently monthly benefit climb by £6.86.
Everything you need to know about Universal Credit
This would mean their payments rise from £311.68 per month to £318.54 next spring.
The uptick is equivalent to around a third of the boost this year, which was about £19.58 per month.
In comparison, couples who are under 25 could see their payments climb from £489.23 to £500 per month, a difference of just £10.77.
By contrast, this year they saw a £30.72 increase to their payments.
The exact amount more you will get will depend on how much you get now, which can vary depending on your circumstances.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said these increases are “tiny” compared to the amount benefits were boosted during times of higher inflation.
She said: “When you spend a larger proportion of your income on the essentials, and things like energy prices remain so high, making ends meet will still be an enormous struggle for an awful lot of people.”
The amount that benefits payments will go up by could still be slightly higher or lower depending on what inflation actually is.
The Office for National Statistics will release the data on Wednesday morning at 7am.
The following benefits are also legally required to increase each April in line with the previous September’s rate of inflation:
- Personal independence payment (PIP)
- Disability living allowance
- Attendance allowance
- Incapacity benefit
- Severe disablement allowance
- Industrial injuries benefit
- Carer’s allowance
- Additional state pension
- Guardian’s allowance
This could mean those who currently receive the lower rate of Attendance Allowance could see their payments rise from £72.65 to £75.56 a week.
Meanwhile people on the higher rate could see their weekly payment boosted from £108.55 to £122.89 a week.
In comparison, people who get Carer’s Allowance could get £85.18 each week from April, £3.28 more than they currently do.
But it is important to bear in mind that the government could choose to increase benefit rates by a different amount.
Danni Hewson, head of financial analysis at AJ Bell, said budgets could be especially tight this year as some additional support is no longer available.
“People are still feeling the pinch, especially since additional cost of living payments ended last February,” he said.
“The hike will once again be considerably smaller than the increase for pensioners, who will see their payments increase by 4% thanks to the triple lock.”
How much will the state pension increase by?
State pension payments also increase every April.
Under an arrangement called the “triple lock” the state pension rises each year by either 2.5%, inflation or earnings growth, depending on which one is higher.
Earnings figures for the three months to July are used to calculate the yearly increase.
This year they indicated that total pay rose at a rate of 4% annually, which is much higher than the rate of inflation.
If this figure is used then the full state pension would rise by £460 next April.
This would mean a typical pensioner who receives the full new state pension would get £230.05 a week, up from £221.20 this year.
Over the space of a year this would give them an income of £11,962.50.
Although this is much higher than the amount benefits are set to rise, it is still well below the boost seen last year.
Pensioners were handed an extra £900 a year when the state pension rose by 8.5% last April.
How to get help now
If you’re struggling to make ends meet then there is help available to you.
For example, you could get hundreds of pounds from your local council through its Household Support Fund.
The scheme aims to provide cash to households struggling to pay for essentials such as water, energy and household items.
For example, families in Birmingham can get £200 to help with winter costs.
What you can get will depend where you live and what support is on offer.
Contact your local council for more information and to apply.
If you are struggling to pay your water, broadband or energy bills then contact your supplier.
They may be able to give you a discount on your bill or set up a payment plan to get you back on track.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
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