Article Preview: Following a lot of speculation, there’s been a change to the ‘discount rate’ used to calculate compensation payments following personal injury claims. The discount rate is a slightly technical concept, but mainly involves a calculation designed to reflect the interest a claimant can expect to earn when investing a lump sum compensation payment. It also factors in tax, expenses and price inflation on these investment returns, to arrive at a fair figure, designed to put the claimant in the same financial position as they would have been had they not been injured. In calculating this figure, the loss of future earnings and the cost of care is also taken into account.
Discount rate increase highlights importance of Financial Planning
This 699 word blog post highlights the impact of the new discount rate and the importance of seeking professional independent financial advice to ensure compensation payments are suitably invested. Written on 25th July 2019.
Your purchase gives you rights to publish this blog post on your IFA, financial planner or wealth manager website blog, news or insights page, along with access to the text of the blog post to copy and paste into your blog. You can publish this blog as written or edit it before publishing, and you can post it under your name.