Welcome to our #229 weekly newsletter.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
In this week’s newsletter, we highlight that the Parliamentary and Health Service Ombudsman (PHSO) released their final report Thursday which said ‘thousands of women may have been affected by the Department and Work Pension’s (DWP) failure to adequately inform them that the state pension age had changed’.
Whilst the Waspi campaigners are calling for a £10,000+ payout, the ombudsman has recommended payouts of between £1,000 and £2,950 per person. However, the DWP has clearly indicated that they ‘refuse to comply’.
And don’t forget to the listen to The Purse Podcast interview with Vanessa Northway, who is the Deputy Vice-Principal for Learning and teaching at Heriot-Watt University Dubai. We talk about the role that schools, universities and parents play in teaching kids and young adults about money.
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And you can review the news in brief so you stay on top of global financial, economic and investing trends.
I hope you enjoy this week’s newsletter.
Until next week,
Jana
Thousands of women are owed pension payout
Ombudsman Waspi ruling confirms that thousands of women born in the 1950s are owed compensation because of government failings.
On Thursday, the Parliamentary and Health Service Ombudsman (PHSO) issued its final report, which said ‘thousands of women may have been affected by the Department and Work Pension’s (DWP) failure to adequately inform them that the state pension age had changed’, as reported by The Guardian.
Women’s pension claim
Almost 4 million women born in the 1950s (UK) had their retirement plans “plunged into chaos”, with many of them left thousands of pounds out of pocket after the DWP increased the state pension age from 60 to 65, and then to 66. Some say they received only 12 months’ notice of a six-year delay to their pension.
The PHSO recommended payouts of between £1,000 and £2,950 a person fall far short of the £10,000-plus that the WASPI campaigners were calling for.
It is unclear how many women are due compensation and the report stated that paying out all 3.5m+ women, born in the 1950s, at the recommended payout level would cost £3.5bn to £10.5bn in public funds. PHSO also added: ‘We understand not all of them will have suffered injustice’.
However, the DWP had clearly indicated it would ‘refuse to comply’, which was ‘unacceptable’. As a result, the PHSO would be asking the government to intervene.
Angela Madden, the chair of Waspi, said:
“The DWP’s refusal to accept the clear conclusions of this five-year-long investigation is simply unbelievable. One of the affected women is dying every 13 minutes, and we just cannot afford to wait any longer.”
Prime Minister Rishi Sunak has hinted at help for Waspi women who were hit by changes to the state pension age. But currently neither the Conservative or Labour party has committed to compensating the Waspi women.
Funding your retirement
According to Retirement Living Standards, you need £31,300 a year to fund a ‘moderate’ retirement. Even a ‘minimum’ standard of living would require an annual income of £14,400.
Currently, the full level of the state pension is £203.85 per week, giving an annual income of £10,600.
What next? Donate to the Waspi women here.
News in Brief
Financial news
Global stock market rally: Japan’s Nikkei hit record highs this week, and the main US share indices also hit record levels.
FTSE 100 approaching record high amid interest rate cut hopes this year.
Japan raises interest rates for first time in 17 years amid higher inflation and rising wages.
The US Federal Reserve signals three cuts still likely in 2024, despite inflation uptick. Powell says Fed likely to slow asset runoff ‘fairly soon’ Officials lift forecasts for growth, core inflation in 2024.
A day after leaving UK interest rates on hold again, the governor of the Bank of England has dropped a hint that cuts are coming.
Saudi Arabia plans $40bn push into AI. The planned tech fund would make Saudi Arabia the world’s largest investor in AI.
Apple loses $115bn in market value as regulators on both sides of the Atlantic are training their eyes on the iPhone company, unnerving investors w/fears over fines & threatening its market dominance.
Crypto: bitcoin, ethereum, DeFi & NFTs
After setting a new ATH, bitcoin struggles to retake $69k. Grayscale was again shifting crypto to its custodian as investors redeemed their shares. It is likely ‘leftover holders desiring to leave this vehicle for a cheaper ETF.’ Bitcoin is currently trading at $64,336.
Outflows from spot bitcoin ETFs overpowered new capital on each day this past week, with record-low inflows for BlackRock’s IBIT and Fidelity’s FBTC.
Ethereum isn't faring much better, either. ETH has dropped 10% over the week and is now worth $3,342. The news of a ‘voluntary enquiry from a state authority that included a requirement for confidentiality’ didn't do the asset any favours.
Popular meme coins—which earlier this month piqued investor interest again—took a battering. The biggest ones experienced the biggest dips: Pepe, Dogwifhat, and Bonk are the week's biggest losers. The assets are down 16%, 21%, and 28%, respectively.
A Monday report from Standard Chartered, claimed that Ethereum could hit $8,000 by the end of this year, and $14,000 is possible by the end of 2025.
Global investment firm AllianceBernstein continues to be bullish on Bitcoin, and now predicts that the coin will hit $90,000 this year.
Kraken UK Managing Director says he would 'absolutely' like to see a bitcoin ETF in the UK.
EU committees approve ban on anonymous crypto transactions via hosted wallets.
SEC delays decision on Grayscale's Ethereum futures Trust ETF, again.
The Purse Podcast
We cover the following in this conversation:
Financial education as it relates to children, teenagers, and young adults.
The role of schools and universities in teaching our kids about money.
Why parents play a crucial role in how kids grow up thinking about money and how to manage it too.
The impact of teaching girls about entrepreneurship and financial management.
Why teaching financial independence and how to invest is crucial.
How technology can be used to encourage children and young adults to become financially literate and financially confident.
Please enjoy! Listen on Apple Podcasts and Spotify+
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We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and janicka. We do no provide investment advice. Please do your own research or speak to a financial adviser.
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Thousands of women are owed a pension payout. And listen to the podcast interview with Vanessa Northway about how to teach kids about money