‘Pension breaks’ can cost you tens of thousands

Half of landlords have reported an increase in their income over the past 12 months

thanks to the “triple lock”, under which payments rise in line with the highest of inflation, wage increases or 2.5pc.

Those with final salary pensions will also be protected, as their incomes are linked to price rises.

L&G’s Andrew Kail said anyone with a private or modern workplace pension should keep up their payments because they are responsible for managing the funds and ensuring that they have an adequate retirement income.

One in 10 has reduced their pension contributions since the pandemic began, according to the Financial Conduct Authority, the City regulator, and 6pc have stopped payments altogether.

Savings breaks like these can cost thousands or even tens of thousands of pounds in retirement income in the long run.

Global stock markets have recovered well since their initial sharp falls in the early months of last year. The MSCI World Index has gained more than 16pc, while the S&P 500, which includes the largest American companies, has risen by even more – almost 20pc. British shares have lagged and are still 4pc lower over the same period.

But some professional investors are now buying back into the London market, picking up cheap stocks as previously suspended dividends return.

Selecting a mixed bag of funds that invest in different sorts of companies in various regions of the world is typically the best way to tap into market growth while avoiding the risk of having too many eggs in one basket ( see the updated Telegraph 25 list of our favourite funds on pages 6 and 7 for some ideas).

BUY-TO-LET LANDLORDS Landlords who have lost income because cash- strapped tenants cannot pay their rent still face a ban on evictions until at least June, when they may finally be able to give six months’ notice.

Half of landlords have reported an increase in their income over the past 12 months as rents outside London have risen, although rents in the capital have fallen by almost a fifth, according to Hamptons, the estate agent.

Many have benefited from the pandemic house price boom: by the end of December the price of an average property had increased by about 8.5pc by £20,000 to more than £250,000, according to the Office for National Statistics.

It is the best sellers’ market for a decade, according to Rightmove, the property website, as a wealth of buyers but a dearth of stock drive up asking prices.

House prices have grown fastest in the North West, where they had gained more than 11pc at the end of 2020, and slowest in London, where they stood 3.5pc higher.

The highest yielding rental properties in England are in the North East. Average properties in Hartlepool yield 8.3pc. Landlords can earn an average of 8pc in Middlesbrough and 7.9pc in Sunderland. London typically offers the lowest yields of around 3pc.

The stamp duty holiday on properties worth up to £500,000, which offers a tax saving of up to £15,000, will end in June.

The point at which stamp duty starts to be due will then fall to £250,000 until September, meaning a saving of up to £2,500.

After this, the threshold will revert to the original £ 125,000. Landlords still have to pay the 3 percentage point surcharge.