legal & fi nancial
Make your money work for you
The fi nancial landscape has become very challenging in recent years. People are living longer, too, so their retirement savings must work harder and for longer. That’s diffi cult at a time of prolonged stock market volatility and low interest rates
D
ata from Saga shows that the cost of living for those aged 65 to 75 has grown by 25% (thanks to rising energy and food prices, for example) while average savings rates have fallen by 75%. Our tips are designed to help save money so you worry less about making ends meet and enjoy your retirement instead.
Help reduce energy costs by: • Draught proofi ng your house and installing (if not already in) loft or cavity wall insulation. • Switching off lights and electrical appliances when not in use. • Choosing energy-effi cient products. All fridges, freezers, dishwashers and washing machines carry an EU energy label displaying an energy effi ciency rating from A+++ (the most effi cient) to D (the least). • Talking to your provider and switch if you’re not getting the best deal. Compare providers via
www.which.co.uk/switch • Keeping your main living room at the recommended 21°C with the rest of your home heated to at least 18°C. Never be cold!
Claim the discounts that the over 60s are entitled to and ask if you’re unsure • Free NHS prescriptions and NHS sight tests. • Cheaper rail and bus travel. • Discounts within restaurants, pubs, hotels, theatres, cinemas, leisure centres, sports clubs, English Heritage, National Trust. • Retail offers from the likes of Boots (discounted eye and hearing care/health and beauty products) and B&Q (its
Planning For Later Life Magazine Diamond Card gives weekly discounts).
Supplement your pension • Take in a lodger – under the Rent a Room scheme you could earn up to £4,250 tax- free. Call 0845 9000 444 or check out
www.gov.uk/rent-room-in-your-home • Get a part-time job – 300,000 people aged 70 and over are still working, according to the Offi ce of National Statistics. As well as having extra cash you’ll stay active physically and mentally, and meet other people too. • Downsize – if your property is now too large sell up and buy something smaller. • Make the most of any savings – talk to an independent fi nancial adviser. • Release equity – you could raise cash against the value of your home. Equity release schemes remain controversial and may not be right solution for you. It’s vital that you take independent fi nancial advice fi rst. See our feature on page 19.
Life insurance
If you have outstanding fi nancial commitments, such as a mortgage, a good life insurance policy can pay these off if you die. It can also provide a lump sum for a specifi c purpose – a tax bill or a grandchild’s university fees – and provide for your spouse. Most company pensions don’t cover spouses and a single life annuity dies with the holder. There are many types of life insurance
and it’s worth talking to an independent fi nancial adviser to check which one would best suit your needs. Also useful is
www.saga.co.uk/money/life-insurance
CONFUSED
OR WORRIED? The Energy Saving Trust offers free impartial, energy-saving advice on 0300 123 1234 or visit
www.energysavingtrust.org.uk
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