Certainty during uncertain times

It’s no exaggeration to say that we are living in an uncertain, and often fast-changing financial landscape. 2022 has been a year of many unprecedented changes, and when you consider we’ve had a switch in Prime Ministers as well as seeing the end of the reign of Elizabeth II, perhaps some economic turmoil in this period is to be expected.

However, there are a number of issues that are impacting people’s finances right now – so let’s have a closer look at what this means for your money:

Mini Budget, big consequences

The fallout following Kwasi Kwarteng’s “Mini Budget” has been considerable. Soon after his announcement in September, the UK saw the value of the GBP plummet to record lows – losing value of 5% to be worth just $1.03. While the value of the pound did rise again to $1.07 soon after, this was still a significant decline. This plummet put people’s pension policies at risk, and meant that the Bank of England had to step in to provide a £65 billion bond-buying programme to help limit the damage caused.

As you can imagine, this fast made the Mini Budget a very unpopular move, and at the time of writing, Kwasi Kwarteng has had to make a U-turn about certain policies included in his announcement. The most significant of these is the reversal of the proposed tax cut to those earning over £150,000 a year. Now, the higher tax rate will stay in place, meaning that if you do earn this figure you will still be paying 45% tax on your income, in line with the higher tax bracket that your income was subject to before.

This isn’t necessarily bad news even for those who would have benefitted from this extra tax cut, however, and this U-turn has already seen the value of the GBP rise against the USD to 1.1250. But what about other economic challenges impacting our current finances?

Mortgage rates continue to climb

Currently, mortgage rates are rising at an astronomical level, meaning that millions of people could struggle to balance their monthly budgets effectively. Interest rates on new deals have risen well above 5%, and the average rate for an average, two-year fixed rate deal is now at 6%. To put this into context, at the start of December 2021, this rate was just 2.34%.

The Mini Budget led to dealers pulling hundreds of deals from the market. Now, as mortgages are back on the table, they are much more expensive, meaning that many people can no longer afford them or are having to revaluate their finances considerably. This is definitely something to bear in mind if you are nearing the time to renew your mortgage deal, as this could have a substantial impact on your monthly expenses.

Energy prices and on-going uncertainty 

Perhaps the biggest issue facing the UK right now is the energy crisis. While the Mini Budget did set out measures to help lessen the blow of soaring energy costs, there was mass criticism to the idea of borrowing the money to make this a reality, yet again fuelling a lack of confidence surrounding Liz Truss and Kwarteng’s Budget.

However, on the plus side, the cap on energy prices is in place until October 2024, meaning that many people will be able to more reliably plan their energy expenditures during this time. It is important to remember that the energy unit is the price that is capped, not the overall spend that people can incur. This means that those using a lot of energy will be able to exceed the estimated cost of £2,500 per year, so it’s still a smart idea to track energy usage where possible (smart meters are particularly helpful) and budget accordingly.

Similarly, overall price increases on food and other essentials are likely to continue to rise, especially as there hasn’t yet been a resolution to the conflict between Russia and Ukraine. So, even with the cost of energy capped, the general cost-of-living crisis is still in full effect, meaning planning ahead is essential.

Time for financial advice

In uncertain times, it always pays to have the experts on your side. This is especially true if you want to have the best chance at safeguarding your finances, or if you are saving with a specific goal in mind such as heading towards retirement.

The award-winning team of independent financial advisers at money4dentists are here to give you certainty during uncertain times. With decades of experience helping dental professionals, the team can assist you with maximising your finances and working towards any goals. Plus, with our on-the-pulse understanding of the current economic climate, you can rely on the team to give advice that is truly tailored to your individual circumstances and needs in relation to the bigger picture.

Knowledge is power

The problem with an unstable economic climate is that things can change in the blink of an eye. Events mentioned in this article are likely to change swiftly, and it’s impossible to predict exactly when this current situation will calm down.

However, seeking solid financial advice is always recommended, especially during times of such flux. This way, you can make the most out of your finances and ensure that you’re in the position to weather (or even flourish during) the storm.

For more information please call 0845 345 5060 or 0754DENTIST.

Email info@money4dentists.com or visit www.money4dentists.com

money4dentists – award-winning advice every time

For decades, money4dentists has been providing dentists with comprehensive, independent financial advice that goes the extra mile.

Our highly experienced team can assist with any aspect of your finances, helping you to achieve any goals for your work or home life and ensuring that you have the knowledge and support you need to succeed.

It’s little wonder that our efforts have been rewarded once again, with our company recently earning the title of “Best Dentist Full-Service Financial Advisory Firm – UK.”

We’re here to support you in all of your financial endeavours. So, no matter what your financial future holds and what directions you want to take, seek expert advice from the team by contacting us today.

For more information please call 0845 345 5060 or 0754DENTIST.

Email info@money4dentists.com or visit www.money4dentists.com


money4dentists wins UK’s Best Financial Advisory Firm at the Midlands Enterprise Awards

Industry experts money4dentists have recently added another accolade to their string of achievements by winning the coveted title of UK’s Best Financial Advisory Firm at the Midlands Enterprise Awards.

The team at money4dentists has shown outstanding effort, hard work and devotion in recent times, so this award is a testament to how we’ve gone above and beyond for our clients during what has been, for many, very trying times.

money4dentists can help dentists with any aspect of your financial goals, whether that be guidance on insurance policies, pensions and more, or helping you to achieve future objectives. Their independent, award-winning advice is always tailored completely to your needs, and as they only work with dentists, they have an outstanding industry knowledge that you won’t find elsewhere.

To find out more about our services, please contact the award-winning team today.

For more information please call 0845 345 5060 or 0754DENTIST.

Email info@money4dentists.com or visit www.money4dentists.com

money4dentists earns Midlands Enterprise Award

For decades, money4dentists has been providing exceptional independent advice to dentists looking to reach their financial goals.

Now, the award-winning team of independent financial advisers have added another string to their bow after being presented with the title of Best Advisory Firm 2021.

This accolade from the Midlands Enterprise Awards 2021 is a huge achievement, showing that the firm continues to be a fantastic option for dental professionals across the country.

So, if you’re looking for advice on making tax efficient investments, NHS and retirement planning or looking into aspects such as income insurance or family protection, money4dentists is here for you!

Please contact the team today.

For more information please call 0845 345 5060 or 0754 DENTIST. Email info@money4dentists.com or visit www.money4dentists.com