I went to fill up my car with diesel yesterday. To be honest, I'd been a bit remiss and had let it get so low that it was just about running on fumes. It's only a small car, but it cost me £48.00 (hate to think what a 4x4 costs to fill up). My car is an essential for me. I don't live on a convenient bus route and whilst I walk and cycle a bit, it's not so easy at my age. So this £48.00 was an essential spend for me, like it is for so many other people of my generation. £48.00 is pretty much a half of the basic State pension. That's a big chunk for every pensioner in this country, so I thought it might be useful if I came up with 7 ways of supplementing your pension. Here goes (in no particular order):-
1. Make sure you are claiming everything that you are entitled to from the Government. There's a free and comprehensive guide available from the Department for Work and Pensions. Click here to see a copy.
2. Start your own business (it's never too late) and you can work from home, part-time if you wish. There's a free eBook that will give you some ideas that you can download here.
3. Manage your money. If you just need some help managing your finances without any jargon or sales pitch, there's a Government backed website worth looking at here.
4. Keep working. Just because you've reached the so-called retirement age doesn't mean you have to give up working. There's a complimentary article about working in retirement you can find here.
5. Make a 27% return on your investment! This is a brief article that I wrote about in a previous blog, but it's important and worth repeating. You can see the blog here. Alternatively you can get the full details from this Government website.
6. Equity release. This can generate an income for you without having to move away from your home, but it should not be your first option. There's a free article about it here.
7. Share with someone else. OK, this is a bit tongue-in-cheek, but it makes sense. If you're living alone, think about renting out a room or maybe finding a new partner to move in with! If you're not sure how to go about it, have a look at this site for finding new friends.
Hope this helps.
Be well.
Sunday, April 25, 2010
Wednesday, April 21, 2010
HOW TO LOSE MONEY (1)
Imagine this. You're sitting in your favourite corner of the pub with your pint and the daily paper minding your own business (not too hard to imagine, really). A man you vaguely recognise comes over and interrupts your reading. He starts talking about investments and during the course of the conversation he asks you what percentage of your savings would you invest in a market that can frequently offer good returns of 10% or so, but has lost 50% of its value twice in the last 10 years?
Somethng similar to the above scenario actually happened to me quite recently. It didn't take me too long to work out that this sounded like a very high risk investment and really wasn't my thing. I said so, but the man insisted I think about it just for the sake of argument. And so I said that, if I had some spare risk capital (which I don't) that I didn't mind losing, I might put 10 or 20% of that into the sort of higher risk investment that he was presumably talking about.
He then asked me how much of my pension fund was invested in the UK stock market. The penny dropped. The FTSE has lost 50% of its value twice in 10 years. Makes you think, doesn't it?
Be well.
Somethng similar to the above scenario actually happened to me quite recently. It didn't take me too long to work out that this sounded like a very high risk investment and really wasn't my thing. I said so, but the man insisted I think about it just for the sake of argument. And so I said that, if I had some spare risk capital (which I don't) that I didn't mind losing, I might put 10 or 20% of that into the sort of higher risk investment that he was presumably talking about.
He then asked me how much of my pension fund was invested in the UK stock market. The penny dropped. The FTSE has lost 50% of its value twice in 10 years. Makes you think, doesn't it?
Be well.
Tuesday, April 13, 2010
POOR PENSIONS ADVICE
The Financial Services Authority (FSA) have started to stand up and be counted. They're actually throwing their weight around and fining companies and directors all over the place. Maybe it's something to do with the threat of disbandonment by the Tories if they win the election. Whatever the reason, it's not before time.
Recently they have turned their attention to some Independent Financial Advisers (IFAs) and some banks who are still giving poor advice to their clients about how, when and why to switch pension funds. The FSA undertook a major survey of pensions advice a couple of years ago and subsequently wrote to 4,500 firms giving details of the FSA's concerns.
22 firms remain on the FSA's watch list where "high levels of unsuitable advice" have been identified. Some firms have already been dealt with by the regulator, but it would appear that most of the 22 poor advisers may have to refund at least £150 million in compensation.
If you think that you have been given duff pensions advice you are recommended to complain to the adviser (IFA or bank) so that they can have a chance to put it right. If that fails you can use this link to find out what to do next:
http://www.moneymadeclear.fsa.gov.uk/HTML/en/products/pensions/pension_complaints_popup.htm
The site is part of the Money Made Clear scheme that is run by the FSA for the benefit of the consumer.
Life is hard enough without being given poor advice by professionals.
Be well.
Recently they have turned their attention to some Independent Financial Advisers (IFAs) and some banks who are still giving poor advice to their clients about how, when and why to switch pension funds. The FSA undertook a major survey of pensions advice a couple of years ago and subsequently wrote to 4,500 firms giving details of the FSA's concerns.
22 firms remain on the FSA's watch list where "high levels of unsuitable advice" have been identified. Some firms have already been dealt with by the regulator, but it would appear that most of the 22 poor advisers may have to refund at least £150 million in compensation.
If you think that you have been given duff pensions advice you are recommended to complain to the adviser (IFA or bank) so that they can have a chance to put it right. If that fails you can use this link to find out what to do next:
http://www.moneymadeclear.fsa.gov.uk/HTML/en/products/pensions/pension_complaints_popup.htm
The site is part of the Money Made Clear scheme that is run by the FSA for the benefit of the consumer.
Life is hard enough without being given poor advice by professionals.
Be well.
Sunday, April 4, 2010
SAGA LOUTS
Back in January 2007, the Independent reported on a survey of 1,500 people over 65 who had been asked if they had any regrets. 70% wished they'd had more sex; 57% wished they'd travelled more; 45% wished they had quit their jobs and changed profession.
So this blog is about travel (yes, I thought about the other one, but don't have enough experience) and if you want to quit your job, go to the Retirement Revenue website.
If you thought that 'Gap-Year' travel was the exclusive preserve of hairy un-washed teenagers with a backpack and a pocket full of condoms wandering around India, you'd be wrong. They reckon there are upwards of 200,000 'baby-boomer' gappers in the UK. They are referred to in the travel trade as 'Saga louts' or, even worse, 'denture venturers' and they are big business.
The idea of taking a year out really appeals to a lot of people in our age bracket, we were after all, the hippies of the 60's. Some will have few bob by now and want to go round the world in a bit of style, typically spending over £5,000 each. They may have financed part of their trip by letting the house out or cashing in some of their pension or just spending some of the children's inheritance.
Others may want to do some volunteering and find themselves helping to build a school in Africa or bringing water to a remote bit of scorched earth, Worthwhile, rewarding and giving something back.
If you fancy turning the tables on your children by having your own gap-year and letting them have all the worry you'll need to do some research. You could start by trying http://www.gapadvice.org/in-retirement, an excellent website with loads of advice for grey-gappers. I have no connection with them, but recommend them anyway!
Be well.
So this blog is about travel (yes, I thought about the other one, but don't have enough experience) and if you want to quit your job, go to the Retirement Revenue website.
If you thought that 'Gap-Year' travel was the exclusive preserve of hairy un-washed teenagers with a backpack and a pocket full of condoms wandering around India, you'd be wrong. They reckon there are upwards of 200,000 'baby-boomer' gappers in the UK. They are referred to in the travel trade as 'Saga louts' or, even worse, 'denture venturers' and they are big business.
The idea of taking a year out really appeals to a lot of people in our age bracket, we were after all, the hippies of the 60's. Some will have few bob by now and want to go round the world in a bit of style, typically spending over £5,000 each. They may have financed part of their trip by letting the house out or cashing in some of their pension or just spending some of the children's inheritance.
Others may want to do some volunteering and find themselves helping to build a school in Africa or bringing water to a remote bit of scorched earth, Worthwhile, rewarding and giving something back.
If you fancy turning the tables on your children by having your own gap-year and letting them have all the worry you'll need to do some research. You could start by trying http://www.gapadvice.org/in-retirement, an excellent website with loads of advice for grey-gappers. I have no connection with them, but recommend them anyway!
Be well.
Friday, April 2, 2010
AGE DISCRIMINATION
For about 4 years now it has been illegal for employers to discriminate against those of us of more mature years on account of our age. Since October 2006 to be precise.
Now, I'm a retired old blogger, so it doesn't really apply to me, but I thought it worth mentioning for the sake of my more youthful readers. It doesn't just apply to jobs and recruitment. Your employer cannot discriminate against you (on account of your age) when it comes to promotion or training either.
Another thing that's worth knowing is that, provided you are still physically capable and you've still got all your marbles and therefore are capable of doing the job, they can't oblige you to retire before the 'default' retirement age. This is currently 65, but keep an eye on the politics, because this is likely to change anytime soon.
If you would like to postpone your retirement and carry on working beyond your normal retirement age, your employer has a legal duty to consider your request. If they want you to retire at 65 (or whatever the 'default' age is) they will have to give you 6 months notice of that decision.
If you're unsure of your rights have a word with your HR department, or go and chat to those nice people at Citizens Advice.
Be well.
Now, I'm a retired old blogger, so it doesn't really apply to me, but I thought it worth mentioning for the sake of my more youthful readers. It doesn't just apply to jobs and recruitment. Your employer cannot discriminate against you (on account of your age) when it comes to promotion or training either.
Another thing that's worth knowing is that, provided you are still physically capable and you've still got all your marbles and therefore are capable of doing the job, they can't oblige you to retire before the 'default' retirement age. This is currently 65, but keep an eye on the politics, because this is likely to change anytime soon.
If you would like to postpone your retirement and carry on working beyond your normal retirement age, your employer has a legal duty to consider your request. If they want you to retire at 65 (or whatever the 'default' age is) they will have to give you 6 months notice of that decision.
If you're unsure of your rights have a word with your HR department, or go and chat to those nice people at Citizens Advice.
Be well.
Subscribe to:
Posts (Atom)
