FINANCIAL ADVICE CENTRE NEWS
Your Autumn Newsletter 2022
In The News
‘Side hustling’ becomes the norm
‘Side hustling’ becomes the norm Nearly half (46%) of people are supplementing their income with a ‘side hustle’, according to recent research5. The phrase, which originated in the United States, means taking on a part-time job in addition to one’s regular job in order to make more money. Of those who have a side hustle, over half (56%) first started it during the pandemic.
5 Dunstan Thomas, 2022
More Baby Boomers work past retirement and provide financial support to family
Nearly 40% of Baby Boomers (i.e. the generation aged between 57 and 75) are set to continue working past the current State Pension age of 666. On average, this group plan to work for a further 4.3 years past their 66th birthday. The same study highlighted that just under a quarter (23%) of Boomers are financially supporting their children, with this intergenerational subsidisation also cascading to a second generation; 16% of Boomers are providing financial support to their grandchildren.
6 Dunstan Thomas, 2022
Healthy dividends
UK listed companies paid out £37bn in shareholder dividends between April and June, up 38.6% from the same period last year, making Q2 the second largest UK dividend payout on record7.
Large one-off special payments were a key driver, but underlying dividends, which exclude these volatile specials, jumped by 27.0% to £32.0bn, boosted by weaker sterling. Mining dividends contributed almost a quarter of the headline total, rising 37% year-on-year; three quarters of the year-on-year increase came from the three biggest sectors – mining, banking and oil.
Headline payouts are expected to rise by 2.4% in 2022 to £96.3bn, while underlying payouts, excluding special dividends, are forecast to increase by 12.5% to £86.8bn.
7 LINK Group, 2022
IHT receipts climb even higher
Latest figures from HM Revenue & Customs (HMRC) show that an extra £300m was collected in Inheritance Tax (IHT) between April and June, compared to the same period in 2021. Receipts for the first quarter of the 2022-23 financial year hit £1.8bn to reach a new high for IHT receipts. When comparing full years, there was a 14% (£729m) increase in IHT receipts between the 2020-2021 financial year and the 2021-2022 financial year.