Every month, we pull together the most relevant stories affecting your employees' financial lives.

This month

📉 Bank of England cuts rates to 4.25%

🧓 Millions may struggle to afford retirement

🕒 Thousands face delays to State Pension increases

📉 Bank of England cuts rates to 4.25%

Interest rates are down, but don’t expect cheaper mortgages just yet.

What this means for your people

The Bank of England has cut interest rates from 4.5% to 4.25%. But it wasn’t a simple decision. Some members wanted a bigger cut, while others wanted no change at all. That tells us future cuts aren’t guaranteed.

The Bank now thinks inflation will peak at 3.5% this year, then fall. One reason is falling energy prices, partly due to recent interest rate cuts in the US, which have had a knock-on effect globally.

So what does all this mean for your money?

🏠 If you have a variable mortgage, your rate may come down slightly.

🔍 If you’re looking for a new fixed-rate deal, don’t expect big changes. In fact, some fixed rates could go up a little.

💰 If you’re saving, top savings accounts still beat inflation, but many average ones don’t. And if you pay tax on your interest, the real return could be even lower.

Markets are moving quickly, so it’s a good time to check where your savings or mortgage stand. Holding out for lower rates may not pay off.

🧓 Millions may struggle to afford retirement

15 million people could struggle in retirement, but there’s still time to take control.

What this means for your people

A new report from Scottish Widows shows that around 15 million people in the UK are now at risk of not having enough money later in life. That’s 1.6 million more than last year.

The main reason? The cost of living has gone up faster than most people’s ability to save. Even though projected retirement incomes have increased slightly, it’s not keeping pace with everyday expenses.

This is especially important if you're in your 20s or 30s. Many people are already saving through a workplace pension, but with everything from rent to holidays competing for attention, it’s easy for retirement to fall down the list.

Over 40% of people in their 20s could face financial pressure in retirement if things don’t change.

And for those earning a low to middle income, minimum contributions might not be enough to secure the lifestyle they want in the future.

🕒 Thousands face delays to State Pension increases

If you’ve recently paid voluntary National Insurance contributions to boost your State Pension, you might need to wait up to 6 to 8 months before seeing any updates.

What this means for your people

The delay is due to a rush of applications ahead of the April 2025 deadline to buy back missed years, in some cases as far back as 2006. The government is prioritising people already over State Pension age and has added more staff, but the backlog remains high.

The good news? Once your payment is processed, your pension will be backdated to the date you paid, so you won’t lose out overall.

In the meantime:

✅ Keep your payment confirmation safe

✅ Track your National Insurance record via GOV.UK

If you were thinking about topping up again soon, it’s a good idea to wait until things speed up, especially if you’re relying on that money in the short term.