I have three predictions for this year which, in no order of importance, are:-

INTEREST RATES: I believe they will not rise during 2015. For various technical reasons there is no pressure to raise them. Unemployment is low but there is considerable under-employment, e.g. part time work. Inflation is still falling and likely to fall further. The normal pressure to increase interest rates to dampen inflation is simply not there. Thirdly, with an election looming, any rise is virtually ruled out.

Those of you, patient deposit holders, with balances in banks or building bocieties, are just going to have to wait a little longer, until 2016 in my opinion.

OIL PRICES: Everyone is talking about the fall in Oil Prices. I predict that oil will continue to be volatile. The price of Brent Crude is about $50 today, compared to $115 last summer. Make the most of the cheaper fuel prices while they last. For comparison purposes, in 1986 the price started the year at $24 a barrel, went down to $10, only to rebound to $18 by the end of the year. Meanwhile the reduced price is benefitting oil importing companies such as the UK. However, there is a knock-on effect on North Sea Oil investment. The Scots just avoided an economic disaster by voting to stay in the UK. The tax on North Sea exploration will have to be reduced to maintain production.

Meanwhile, my prediction is that the current low oil price will further reduce the inflation rate, as the December 2014 figures will show.

PENSIONS: The latest announcement by Steve Webb, the Pensions Minister, has muddied the waters a little, regarding existing Annuities. For most people, with private or company schemes, there are decisions to be made which require careful thought and professional advice. Anyone approaching 55 should definitely seek advice from a professional financial planner, such as Kymin. Although the Chancellor has made access to your pensions much easier, there are still tax considerations to be taken into account.

News last week of Tesco’s ceasing their Final Salary Pension Scheme came as no surprise to me. It is probably the last major scheme in the private sector. They belong to another era, when people worked for the same employer their whole working life. The next change will be the phasing out of Public Sector Final Salary Schemes.

My prediction for pensions is that there will be a huge increase in enquiries, as people seek proper advice.

Happy 2015.