Spring thoughts

Who Wanted £1,000,000? 

Recently I turned on the TV and an episode of Who Wants To Be A Millionaire was on. The quiz show originally aired on September 4, 1998 and I noticed that, in the last 26 years the prize pot has not increased. That got me to thinking: how much less expensive is this show costing ITV than when it originally aired? To answer this question, I quickly turned to the Bank of England inflation calculator. It turns out that £1,000,000 in 1998 is equivalent to £1,885,995.98 as of September 2024 – meaning that current prize payouts are 53% of the value compared to what the original contestants got. There is no record that I could find detailing ad revenue for the show; however, if the ad revenue has gone up then the show now costs less to produce (in terms of prize value)and earns more. Granted: Who Wants To Be Nearly A Multi-Millionaire does not run off the tongue as easily. It is a warning to anyone who plays the “Set for Life” lottery through the National Lottery, however. Anyone playing should be aware that the guaranteed prize pot of £10,000 a month for 25 years will only have a purchasing power to a mere £5,302 by the time the last payment comes through (if historic inflation holds true).  

Hurry Up And Wait 

At the recent AMPS Meeting we had a presentation from the director of Bridge Employment Law, David Rogers. It covered the Labour government’s proposed changes to employment law – largely surrounding how these laws will affect employers. 

Topics included: 

1.     Extension of time limits for tribunal claims; 

2.     Restricting fire and re-hire practices; 

3.     Changes to thresholds for collective redundancy; 

4.     Banning ‘exploitative ’zero-hours contracts; 

a.     There is not yet a definition for ‘exploitative’, so it remains in quotations 

5.     Flexible working changes; 

6.     Collective grievances; 

7.     Bolstering sexual harassment and whistleblowing regimes; 

8.     Changes to the national living wage (national minimum wage); 

9.     Banning unpaid internships; 

10.  Ethnicity and disability pay gap reporting; 

11.  Protections after return from maternity leave; 

12.  Statutory sick pay reform; 

13.  Menopause action plans; 

14.  Written statement of employees’ rights to join a union; 

15.  Access Agreements; 

16.  Amendments to the Trade Union Act of 2016, and repealing of the Strikes (Minimum Service Levels)Act of 2023; and, 

17.  Protection against detriment for taking industrial action. 

With the exception of changes to the national living wage, this was very much a message that lined up with the old U.S. Army saying of ‘Hurry up and Wait’.  

After 14 years out of office, there are still extensive consultations that will need to be made with the relevant stakeholders and it may take an additional 18 to 24 months for any proposed new laws to come into effect. Lean heavily into 24 months. 

Additional communication on these topics will come out in this newsletter once the government has greater clarity. 

Wait a Bit Longer 

Well, speaking of waiting, we may as well tackle the retirement age. As it stands, the State Pension age in the UK is 66 but will rise to 67 in 2028 and 68 by 2046. This was last reviewed in November of 2023 but, as a matter of law, the pension age is reviewed with every Parliament. Which means that a new review is expected to take place at some point in 2025 to consider further modification to the State Pension age. This review takes into account a number of factors including the state of public finances and life expectancy. The main point of the review is to ensure the long-term stability of the pension system. While that might seem decidedly unfair when compared to countries like France (where the retirement age will increase to 64 in 2030 after lots of protest), have some sympathy for Australia. They are increasing their retirement age to 70 in 2035. It is important ton ote that the State Pension Age does not prevent individuals from taking money out of private pensions (if they have them) at an earlier age. Currently, you can take money from your private pension at 55 (although this will change to 57in 2028); however, without the buffer from the State Pension, you might be surprised at how fast your money will be used up. 

If you are thinking about retirement in the next few years, it is highly advisable to seek out the assistance of a Financial Planner to help you budget for a long and happy retirement. If you are not thinking about retirement in the next few years, it is highly advisable to seek out the assistance of a Financial Planner to help you budget for a long and happy retirement.  

Personal finance is not talked about enough in ‘polite’ society, and these professionals will be able to have frank conversations to ensure that your goals can be met. 

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