Pension myths debunked

Pension myths

Automatic enrolment into a workplace pension will make it easier for people to start saving for their retirement.  All employers will be required to enrol their eligible workers into a workplace pension scheme if they are not already in one.

We know there is a lot of confusion surrounding pensions and saving.  These pension myths can make people feel confused about what they need to do to fund their retirement. We’ve explained some common pension myths below.

 

It’s not worth saving into a pension. 

FALSE Most people can expect to get back more in retirement than they put in their pension. Most people saving in a workplace pension also benefit from contributions from their employer and the government in the form of tax relief*. 

 

My house will be my pension pot.

BE CAREFUL Property doesn't allow you to spread your money across a range of different investments like a pension does, and doesn't have the same tax advantages.

 

My partner will be my pension pot / I’ll inherit money from my parents.

BE CAREFUL Inheritances can be uncertain, so it is important to make individual pension provision. Increasing numbers of people are surviving into their 90s and longer, so your parents may still be alive when you retire. You might also find yourself in a difficult situation in the case of divorce.

 

I can only pay in a small amount so it isn't worth it. 

FALSE Your contribution to your workplace pension will be a percentage of your salary. You’re also likely to benefit from a contribution from your employer and tax relief* from the government too. Even if you end up with a small overall pension pot, you might be able to take your pension as a cash lump sum as long as your pension savings are no more than a certain amount (currently £18,000).

 

I’ll save when I get old / I'm too old to start saving. 

FALSE It is better to start early – usually, the younger you start to save, the bigger your pension will be, as your money has more time to grow.  And unless your retirement is a few months away, there’s still time for you to build up some money.

 

If my company shuts down I lose everything. 

FALSE There was a problem with people losing their pensions when their company shut down in the past. But this is no longer the case.  With most schemes your pension is looked after by the pension provider, so if your employer goes bust you won’t lose your pension pot. 

If your pension scheme is run by your employer and they go bust, your pension pot might be smaller than it would have been. This is because, if your employer has been paying the pension scheme administration costs, they will no longer be doing so. These costs would now come from the scheme member’s pots.

 

My grandma only lived to be 70 so surely I won’t live much longer, why bother saving? 

BE CAREFUL People tend to underestimate how long they’re likely to live and life expectancy across the generations is changing fast.  On average, you’re likely to spend 20 years in retirement, so you will need to plan for that.

 

The State Pension will be enough. 

BE CAREFUL The State Pension is a foundation, but for many people, relying on this alone could mean a fall in income at retirement. Saving into a workplace pension means people will have more money to help continue enjoying the things they like when they retire.

 

(*Tax relief means some of your money that would have gone to the government as income tax, goes into your workplace pension instead.)

 

 

To find out more about what enrolment into a workplace pension means for you, and the benefits of staying enrolled, visit  www.gov.uk/workplacepensions

 

 

 

If you're looking for a new opportunity in Accountancy and Finance, search and apply here

Why Personal Tax could be your next step up the accountancy ladder

Richard Jennings, recruitment consultant at Marks Sattin 

Richard Jennings specialises in recruiting tax professionals into public practice and industry in the Greater London region. After gaining recruitment experience in Australia, Richard moved to Marks Sattin’s London office in August last year. He has developed some key accounts for Marks Sattin Tax across the practice field as well as making headways into the expansive and competitive industry market.

This is an important time of year for newly qualified professionals working within the tax arena. Many have made New Year’s resolutions to make a career change for a more interesting role, a bigger company or even a change of specialism. It’s a big decision that can ultimately shape the future of a career. A common theme with newly qualified candidates is a desire to move into a corporate tax focused role and this is something that should take more consideration.

Many graduates gain exposure to a range of areas across personal and corporate tax after university, and so the question begs to be asked; why is corporate tax so appealing? It is an interesting area with many opportunities to work across a variety of sectors, but knowing the tax market as it is, it seems there is more on offer in personal tax than first meets the eye.

Many recruiters sell the corporate dream of making the first step into industry and a career will be laid out in front of you. It could be the chance to work on a huge merger, or the chance to name drop a couple of glamorous organisations on your CV, but if you look at the opportunities offered outside of corporate tax you may find that the grass isn’t always greener on the corporate side. The personal tax world is one where hard work is a given, but alongside hard work comes the advantage of working with High Net Worth Individuals (HNWI’s).

Celebrity tax avoidance has been a recurring topic as of late within the news, for example, Jimmy Carr and his personal tax advisor ‘finding ways’ of ‘saving money’. As a personal tax adviser you are trusted with a client’s finances and it must be noted that if you do a good job, you will be sure to reap the rewards.  

The importance of personal tax advisory to people in the entertainment industries sees organisations such as Saffrey Champness and Nyman Libson Paul specialising specifically in this sector. Tax advisory in the entertainment industries is not just a service; it is the opportunity to work in a much more personal environment, and ultimately something that may not be found when working with large corporate clients.

Could you imagine working with David and Victoria Beckham, or any other celebrity and their trust fund? It all sounds very intriguing.

To all of those looking toward the next step in their career; consider the options that are available to you within personal tax. In a market that is growing and developing all the time, career growth and progression is a certainty and you may even come across the odd perk or two along the way.

 

To find your next accountancy or finance opportunity, browse the latest opportunities from Marks Sattin on GAAPweb. 

Lack of time greatest barrier to CPD in accountancy and finance

Lack of time is the greatest barrier to Continuing Professional Development (CPD) amongst accounting and finance staff, according to a recent survey by AAT (Association of Accounting Technicians). 

In a survey of over 1500 members and full members of AAT, more than half of respondents identified a lack of time as the main factor hindering their professional development. 

The results also demonstrated that the majority of members take sole responsibility for planning their own learning and development (65 per cent), with 30 per cent of members planning jointly with their managers. 

Other key findings included: 

• Members prefer face to face learning, with hands on development being the most popular (63 per cent), closely followed by lectures and conferences (52 per cent) and discussions with colleagues (52 per cent). 

• A fifth of members spent nothing on their personal learning and development. However, 16 per cent spent between £100-£249 and 16 per cent spent between £250-£499. 

• In-house training organised by the employer (47 per cent) is the most popular method for training used by members in the last year, followed by AAT CPD (40 per cent). 

Benefits and Services Manager at AAT, James Price said the results are revealing: “We carried out the survey to identify the current learning activities and attitudes of our membership. By better understanding the barriers and obstacles they face, we aim to develop appropriate and relevant learning opportunities and products to suit their needs. 

“We all lead busy lives and unfortunately our professional development is often overlooked. Adopting a habit of lifelong learning is one of the best things we can do as professionals, as it allows us to update our skills and knowledge and offer a quality service to employers and clients alike.”

 

Search and apply for a new accountancy opportunity in your desired salary bracket and location on GAAPweb

Find work as a Qualified or Part Qualified Accountant

By Adam Tachauer (ACA, ACCA, CIMA Jobs London)

Adam is the recruitment associate for the Part Qualified to Newly Qualified Accountants division of Circle Square Talent London. He has established a particular expertise within the London Commerce and Industry market supplying Part Qualified and Newly Qualified Accountants.

After reaching a certain level, part qualified accountants want to know what career options are available for them. Finding the right kind of work can be tough with the current state of the job market but fortunately there is a wide range of work available for those studying towards a qualification in various accounting fields. Whether you're aiming for commercial, managerial or financial areas of expertise you need to start somewhere.

(Read our tips on how to Advance Your Career in Accountancy & Finance with Personal Branding to find out more about how to remain competitive.)

It is also important to have the support of a recruitment agency. Recruitment agencies on GAAPweb such as Circle Square Talent London make your search easier and as a part qualified accountant you will also benefit from the career advice they offer. 

Take the next step in your career with a finance job in London

By David Archer

David is the Director of Circle Square Talent London, a specialist Finance & Accountancy Recruitment firm. He started his career as an accountant before moving in to financial recruitment, where he has established a particular expertise within Investment Banking, Corporate Finance & Private Equity.

 

Your Next Career Step - A Finance Job in London

In a difficult economic environment, it can be tempting to sit tight in your current position even if you feel as though you're going nowhere and are simply biding time. Now, however, could be the time to dust off your CV and start actively searching for the perfect next step in your career plan.

Financial Services Industry

As well as having an impact on the job market, the banking collapse did little for the reputation of the financial services industry. Aspiring to work in finance in the nation's capital did not seem a good idea for a while and was perhaps not something to openly discuss.

Whilst we still find ourselves in a harsh financial climate, however, the financial services industry is beginning to rebuild its reputation. After a period of thought, companies have sought to improve their processes and realign their business objectives. Many are now in a position where they are beginning to start investing in their future again. 

Great News for Jobseekers

This is great news for job seekers. The financial services sector offers a diverse range of role and specialities. From banking to insurance, accountancy to risk management, there are any number of professional roles that offer good career progression and remuneration prospects. 

Personal Branding for Accountancy and Finance professionals

By Simon North

Simon North is the Founder of Position Ignition, one of the UK’s leading career consultancy companies which created the Career Ignition Club, a leading-edge online careers support and learning platform. Follow him @PosIgnition 

Think of yourself as a product. When you buy a product, you scrutinize its applicability to your need. You’re interested in its benefits, its features and its price. Anybody looking at you walks through a similar cycle of evaluation.

Think about brands that you believe are fantastic. They may be so because you think them to be powerful, emotionally subtle or innovative. Whatever it is that you find compelling in these brands, do your best to learn from them the simple lessons that you can build into your own brand.

What are the assets around you that you project onto your personal brand and include in your personal statement or elevator pitch? Try to use a minimum number of words in your pitch and avoid business speak and generic and loose language. Be as specific as you can be about your strengths, about your achievements, about your ‘wow’ factor.

What sets you apart in the eyes of other people? Many ask other people around them, who know them well, this question. It’s a question where you can put yourself into the eyes of other people and see what they see.

Think about what mode of presentation you need. You have choice of platforms on which to put your brand out there. These platforms include Facebook, LinkedIn, Twitter, Pinterest and so on. Think about what media would be helpful to lift your brand into a more exciting space. It could be a YouTube video of you presenting a blog that you have written, for example.

Personal branding is about how you package yourself. Like any product, you have choice around the packaging you wish to use. Isn’t it fascinating how certain brands are so aligned to the presentation of the product that their packaging, from the moment you see the outside box, has you interested in what it is inside the box. Similarly, how can you think through the most effective way of self-packaging?

Every product creates an impression. When you are building your personal brand, test it. Test it with your market; test it with your friends and colleagues to see which structures within in it create a good impression.

Remember your personal brand is the window of your identity. It throws light on you as a worker. Showing your true identity at all times will help your personal brand to be consistent.

Apply subtlety to your personal branding. When people think about you, they’ll soon come to think, “I know more about this person than I probably realize”.

Consider your reputation. Our reputation is intrinsically tied up with the lives and work of other people, both professionally and personally. Whilst we are dealing with our own personal brand, we must always remember the congruence of reputations that are involved in building our personal brand.

Think about alignment. When we put our personal brand out into the market, we have choice about where we place it and how many different spaces and how many different platforms we choose. It is very important that our personal brand aligns consistently and well with everything else that we are saying and doing.

 

To find your next Accountancy or Finance job, search and apply on GAAPweb 

 

 

Why 'Optimism - Complacency = Success' for Accountants in 2013

By Chris Daems

Chris Daems is the director of Principal Financial Solutions, a small financial planning practice based in the city of London.  During his career, Chris worked for a number of large financial institutions before setting up his own business.  Chris’s experience is working with both medium sized businesses and high net worth individual clients.

I consider myself an optimist. I always try to look for the 'bright side' in any situation, aim to be ambitious and ensure that I make the most of the opportunities that come my way. Thats's what led me to notice that (according to recent research by the Co-op and YouGov) more than half of the SME's in the accountancy and financial services sector are quite hopeful about the year ahead.

Your new job and the probationary period

By Paul Giuffredi

Paul Giuffredi is a Finance Director of entrepreneurial companies. He has been Finance Director of PE backed, family owned and AIM listed companies in a variety of business sectors. 

 

Congratulations! You got the (new) job.

It's your first day and you've been handed the contract of employment in which it refers to a probationary period but what does this mean and what are your employment rights during this period? 

 

There is a lot of advice out there about how to write a great CV and how to ace the interview. While these are paparmount to getting a new job, there is something else that is just as important: surviving and even thriving during the critical first few weeks in the new job so as to make it through the 'probationary period' unscathed.  

Probationary periods are not a new practice but over the last few years the shift in the balance of power between the employee and employer has made them even more important. Previously when it was relatively easier to get a job, employers were less likely to dismiss a new recruit on the assumption there were plenty of other good candidates out there. This is no longer the case. 

A probationary period is normally three months. Employers, however, are entitled to extend probationary periods as they wish. During the probationary period pay and benefits may be different to those after the period has been passed. Typical examples are benefits such as pension contributions and private health care. More importantly, the notice period may be a lot shorter. When someone is dimissed during a probationary period they are only entitled to the stated notice pay (quite often only a week) and any outstanding holiday. Normally the notice period is shorter during the probationary period. This will be in the small print in your employment contract. The flip side to this if you don’t like the job you can leave with minimal notice to the employer. 

Whilst passing the probationary period is a good indicator all is well there is actually no real change to your legal rights. For all employees who started a role on or after 6th April 2012the period before which employment rights kick in was increased from one to two years. Therefore for the first two years your employer has the right to dismiss you for more or less any reason they like. The obvious exception to this is discrimation, typically sexual or racial, where you accrue rights from day one. The start date in order to determine whether you have employment rights is your first day of employment and not the end of your probationary period. 

Good employers will set out what they expect from the new recruit during the probationary period and even assign a mentor to help them. If your employer does not do this you should be proactive and help yourself. 

 

Here are a few tips for surviving the probationary period:

• Always be punctual. Arriving late or missing meetings is the number one way to start off a new job on the wrong foot.

• Do not have a high level of sickness or unauthorised absence. Taking time off for minor ailments or not turning up on Mondays is best avoided.

• Try to build good relationships with other members of your team. They may have a say on whether you pass the probationary period.

• If your manager is looking for volunteers for special projects etc offer to help.

• If you are offered the assistance of a mentor then take advantage of this. They will probably be busy so be proactive in scheduling meetings with them.

• Take an interest in how things are done in the company.

• Above all, remember you have to live up to the excellent skills and character tracts you stated in your CV and at during the interview process.

 

If you're looking for a new opportunity in Accountancy and Finance, search and apply here

75% of FTSE 100 companies use psychometric testing

A large majority of recruiters are using psychometric testing in their interview stages to determine which candidates to hire. These tests are designed to objectively measure your mental ability and your personality.

 

40% of job applicants fail their psychometric tests and don’t go any further in the recruitment stage. GAAPweb have teamed up with AssessmentDay to give you the opportunity to buy practice psychometric tests so you can make sure you’re ready.

 

Current FTSE 100 & 250 opportunities include:

 

Group FP&A Manager - Hertfordshire | From £55,000 to £60,000 per annum + 20% bonus + pension + healthcare | Apply here

Commercial Financial Controller - London | From £65,000 to £75,000 per annum + car + benefits + bonus | Apply here 

 Project UAT Accountant - Nottingham | From 200 - £250 per day | Apply here

Commercial Finance Manager - London | | From £250 - £300 per day | Apply here

Tax Accountant - Central London | £300 per day | Apply here

 

To find a new accountancy opportunity, search and apply on GAAPweb. 

Accountants tell each other about poor recruitment experiences

87% of accountants talk about their job hunting experiences with friends and colleagues, according to the latest research from recruitment specialists Robert Walters. 

The research, part of the firm’s Insight Series Whitepaper on “Managing Your Employer Brand Throughout the Recruitment Process”, shows how poor hiring procedures can impact employers’ overall reputation. In particular, the study highlights a number of preferences among job seekers when both searching and applying for jobs.