September 13th, 2023 | Andrew Hagger | News

‘Retirement anxiety’ is increasingly becoming an issue for over 40s, due to the financial pressures of the rising cost of living on income and savings, according to new research launched today from financial planners, abrdn.

abrdn’s latest research into the nation’s retirement anxieties highlights that nearly two thirds (58%) of UK adults aged 40 years+ are anxious about retiring, up from 54% in 2022. A fifth (20%) admitted they are ‘very anxious’, a 70% increase on 2022’s figures (12%) with 18% saying that anxiety is severe enough to keep them awake at night and one in ten (11%) said it is affecting their personal life and relationships.

The research unveiled both financial and emotional reasons behind this growing trend, with more than two fifths (43%) citing their retirement anxiety was driven by not having saved enough to be able to afford to retire.

Nearly four in ten (39%) are worried about the rising cost-of-living impacting retirement plans, while almost a quarter (24%) are worried about how the current economy will impact their investments and pension and over a quarter are embarrassed about not starting to plan earlier (27%).

Further causes for the anxiety included being worried about being pigeonholed as ‘old’ (17%) and losing their identity when they stop working (14%).

abrdn’s research also found more than one in eight (13%) have delayed retirement plans as a result of feeling anxious, increasing to 18% for those aged 55+.

Across the population, the areas of finances people feel most concerned about when it comes to leaving the world of work are not having enough money to last throughout retirement (39%), not being able to afford to do the things they want to do (33%) and how to save for retirement while still having enough money to live on now (29%).

Despite these concerns, almost half (41%) have done nothing to prepare for retirement.

Shona Lowe, financial planning expert at abrdn said: “The prospect of retiring can be a daunting one, whatever your age, particularly against a backdrop of rising interest rates, high inflation levels and an ongoing cost of living crisis. It is completely normal to experience anxiety about retirement; you’re gearing up for a big change that has a number of variables and factors to take into consideration. But it is concerning to see an increase in the number of people that are experiencing retirement anxiety in our latest research and to find that for some, the level of that anxiety is affecting their ability to sleep and their relationships.

“While many will be thinking about the financial aspects of retirement, others will be worried about the lifestyle and emotional impacts. To ease retirement anxiety, there are a number of steps you can take, including talking to a loved one about your plans, putting a robust plan in place or even continuing to work flexibly in retirement to ease financial concerns and give you a sense of security.

“There are also benefits for many in seeking advice from a professional adviser in order to get a clearer understanding of your financial situation and how to best prepare for this important life stage.”

Shona’s four tips to ease retirement anxiety

1.Understand how much money you have and what you’ll need

Many people think of their pension and the state pension as their only sources of retirement income. But don’t forget about ISAs, other savings and investments, or rental income from any property you let out. You may have more than you think.

Next you’ll need to estimate how much you’ll need to spend each year in retirement. This amount differs for each person depending on the type of lifestyle you want to lead, so there is no one size fits all answer.

2.Consider working in retirement

For many, gone are the days where retirement meant stepping back from the world of work altogether. Instead, there are an increasing number of retirees that intend to do some sort of work even once they’ve officially ‘retired’.

Whether it be setting up businesses, pursuing a ‘flexi-retirement’ and working part-time, or doing whatever it is that makes you happy, retirement really is what you make of it so don’t feel pressured into stopping work if that doesn’t feel right for you.

3.Take advantage of the support available to you

Retiring is one of those ‘big steps’ that we see in our futures but for many, it always feels like it’s ‘further down the line’, even when we are fast approaching it.

People experiencing retirement anxiety may be thinking about it constantly, be unable to sleep, and generally feeling overwhelmed – it can impact their relationships and performance at work. To help with all of this, it’s really important to seek support from people you trust.

There is also a lot of great free information and support available that may help to you to feel more informed and in control.

The Money Helper website is a free and impartial source of guidance on pensions and retirement, including phone and online support from their team of pension experts.

4.Seek financial advice

Navigating retirement is no easy feat, especially with the continued high cost of living at play and many are worrying whether they will be able to afford the retirement they want.

Speaking to a financial adviser could help you to understand what you will have available to fund retirement, how that compares to your spending needs and give you peace of mind when mapping out your future. Advisers work every day to give retiring clients, clarity, control and confidence about their future.

September 13th, 2023 | Andrew Hagger | News

Leeds Building Society has announced the launch of a new online tool designed to help members monitor and manage their home energy usage, reduce their environmental impact, and save money.

The tool, developed in collaboration with Energy Saving Trust, offers users tangible solutions to promote energy efficiency and help residential borrowers and landlords to make improvements to the Energy Performance Certificate (EPC) rating of their home. 

Leeds Building Society was amongst the first lenders to factor in energy savings when assessing affordability, benefitting mortgage applicants choosing to move into greener homes. The assessment means that borrowers may be able to access increased affordability on the basis that their energy bills will be lower.

With pressure on landlords mounting, the launch of the tool will be welcomed by those concerned with the impact of the government’s EPC targets on their rental portfolio. Landlords will be offered tangible advice to help improve energy efficiency and meet new regulatory requirements.

Richard Rothwell, Commercial Development Manager at Leeds Building Society, said:

“At Leeds Building Society, we are committed to making a positive impact on the environment. Working in partnership with the Energy Savings Trust, we are proud to launch this new tool which will empower our members, providing them with the knowledge and resources to improve their home’s EPC rating.

“We hope that this tool will improve the EPC ratings across the UK’s housing stock, meaning that those looking to get onto, or move up, the property ladder can unlock better affordability and get the home they want.”

To access the online tool, users must input their postcode, when the home was built, how many people live there, and other information to help create a picture of energy consumption. The tool will then generate personalised advice and practical tips to save money and contribute to a greener planet.

For more information visit Home Energy Saving Tool | Home Page (leedsbuildingsociety.co.uk)

September 13th, 2023 | Andrew Hagger | News

Smoke alarms are an essential safety feature in any home, and regular maintenance is crucial to ensure their efficiency. In the UK, where fire safety regulations are strict, it is especially important to keep your smoke alarms in good working order. This article will explore the importance of regular maintenance for smoke alarms in the UK and provide practical tips for ensuring their efficiency.

1. Understanding UK Fire Safety Regulations

In the UK, fire safety regulations are stringent, and smoke alarms are a legal requirement in all residential properties. The Regulatory Reform (Fire Safety) Order 2005 mandates that landlords must install smoke alarms on every floor of a rented property and test them regularly to ensure they are in working order. Homeowners are also encouraged to have smoke alarms installed and regularly maintained to protect their families and property.

2. The Importance of Regular Maintenance

Regular maintenance of smoke alarms is crucial for their efficiency and effectiveness in detecting smoke and alerting occupants to potential fire hazards. Here are some reasons why regular maintenance is essential:

1. Early Detection of Faults: Regular maintenance allows you to identify any faults or issues with your smoke alarms promptly. This includes checking for loose connections, damaged wiring, or depleted batteries. Addressing these issues promptly ensures that your smoke alarms are always ready to function when needed.

1. Maximising Performance: Regular maintenance helps to maximise the performance of your smoke alarms. Dust, dirt, and debris can accumulate over time and hinder the sensors’ ability to detect smoke effectively. Cleaning the smoke alarm regularly ensures that it operates at its optimal level.

1. Compliance with Regulations: Regular maintenance ensures that your smoke alarms comply with UK fire safety regulations. Landlords have a legal obligation to ensure that smoke alarms are installed and maintained in rental properties. Homeowners should also take responsibility for the maintenance of their smoke alarms to ensure the safety of their homes and loved ones.

3. Practical Tips for Regular Maintenance

To ensure the efficiency of your smoke alarms, here are some practical tips for regular maintenance:

1. Test Your Smoke Alarms: Test your smoke alarms at least once a month by pressing the test button. This will verify that the alarm is functioning correctly and that the sound is loud enough to alert occupants in the event of a fire.

1. Replace Batteries: Smoke alarms in the UK typically use 9-volt batteries or are hard-wired to the mains. If your smoke alarm uses batteries, replace them annually or as recommended by the manufacturer. Some smoke alarms have a low battery warning feature, which alerts you when the battery needs replacing.

1. Clean Your Smoke Alarms: Dust and debris can accumulate on the sensors of your smoke alarms, affecting their performance. Use a soft brush or vacuum cleaner to remove any dust or cobwebs from the smoke alarm. Avoid using water or cleaning agents, as these can damage the alarm.

1. Check for Damage: Regularly inspect your smoke alarms for any signs of damage, such as cracks or loose connections. If you notice any damage, contact a qualified electrician or replace the smoke alarm immediately.

1. Follow Manufacturer’s Instructions: Each smoke alarm may have specific maintenance requirements outlined in the manufacturer’s instructions. Familiarize yourself with these instructions and follow them accordingly.

4. Additional Safety Measures

While regular maintenance is crucial, it is also essential to take additional safety measures to enhance fire safety in your home. Here are some recommendations:

1. Install Sufficient Smoke Alarms: Ensure that you have smoke alarms installed on every floor of your home, including the hallway and bedrooms. This provides maximum coverage and early detection in case of a fire.

1. Interconnected Smoke Alarms: Consider installing interconnected smoke alarms, which are wired together so that when one alarm detects smoke, all alarms in the house will sound. This ensures that everyone in the home is alerted, even if the fire starts in a different area.

1. Have an Escape Plan: Develop a fire escape plan for your household and ensure that everyone is familiar with it. Practice the escape plan regularly, especially if you have young children or elderly family members.

1. Regularly Service Your Heating Systems: Have your heating systems, such as boilers or furnaces, serviced annually by a qualified professional. Faulty heating systems can increase the risk of fire, so regular maintenance is essential.

Conclusion

Regular maintenance is crucial for ensuring the efficiency of smoke alarms in the UK. By adhering to fire safety regulations, conducting regular tests, replacing batteries, cleaning the alarms, and checking for damage, you can maximize the performance of your smoke alarms and ensure the safety of your home and loved ones. 

Remember to follow the manufacturer’s instructions and take additional safety measures, such as installing sufficient smoke alarms and having an escape plan in place. By prioritizing regular maintenance, you can have peace of mind knowing that your smoke alarms are ready to protect you in the event of a fire.

September 4th, 2023 | Andrew Hagger | News

Santander UK has today (Monday 4 September) launched a ‘top of market’ easy access account, the Easy Access Saver Limited Edition (Issue 3), which pays 5.20% AER/ 5.08% gross (variable) on savings up to £250,000 for 12 months.

Customers with £5,000 deposited in the account will typically earn £21.66 in interest every month and £260 annually.

The Easy Access Saver Limited Edition (Issue 3) lets customers deposit as often as they like, as well as withdrawing their funds without any fees or restrictions.

Customers do not need other accounts with Santander to be able to open the new account which can be opened online, in app, over the phone, or in branch.

Any Santander customer with an existing Easy Access Saver can also open an Easy Access Saver Limited Edition (Issue 3) account and benefit from the higher rate.

The account is available from now until 17th September, but may be withdrawn sooner if there is high demand.

Santander has also today increased the rates on its fixed term ISA products. The one year fixed ISA now pays 5.05% AER/gross and the two year fixed ISA pays 5.10% AER/gross.

Andrea Melville, Director of Current Accounts, Savings and Business Banking, Santander said: “We’re pleased to deliver this top of market product for our customers, providing the convenience of an easy access account, to help build up their savings. We know now more than ever people want their money to go further and this account is one of the ways we are helping customers maximise their savings income.”

September 4th, 2023 | Andrew Hagger | News

National Savings and Investments (NS&I) shocked the UK savings industry this week when it launched its highest ever rate of 6.20% for a 1 Year Guaranteed Growth Bond.

The deal went straight to the top of the best buy tables and is the highest rate by some margin, with 6.00% the next best rate on the market.

NS&I has an annual financing target set by the government and has been struggling to attract enough new money, in what has become a highly competitive UK savings space.

This move has thrown down the gauntlet to savings providers but it’s unlikely that any players will be able to compete with 6.20%.

However, this aggressive move is likely to prove an attractive option with cash savers eager to bag the very best rate they can.

Essential details at a glance

What’s the interest rate?

Issue 72: 6.20% gross/AER, fixed for 1 year

Can I take money out?

No, you cannot take money out until the Bond reaches the end of its term

Is the interest taxable?

Yes, in the tax year your Bond matures

How much can I start with?

£500 for each Bond you buy

What’s the max. I can save?

£1 million per person in this Issue

August 22nd, 2023 | Andrew Hagger | News

A new Issue of NS&I’s Green Savings Bonds has been released today paying 5.70% gross/AER fixed-rate over a three-year term. Savers putting money into Green Savings Bonds will be helping fund vital green projects across the UK as part of the UK Government Green Financing Framework.

Dax Harkins, NS&I Chief Executive, said: “I’m really pleased that we can offer a new Issue of our Green Savings Bonds at a higher rate from today. This is a great opportunity for savers who want to see a guaranteed return on their investment while also making a difference with their savings by helping to make the world greener, cleaner and more sustainable.”

The projects funded through Green Savings Bonds will include making transport greener, using renewable energy over fossil fuels, preventing pollution, using energy more efficiently, protecting natural resources and adapting to a changing climate. The first Issue of Green Savings Bonds went on sale on 22 October 2021. Since then more than £915 million has been invested in them.

The minimum investment in Green Savings Bonds is £100, with a maximum limit of £100,000 per person for each Issue. Investors need to be aged 16 or over to purchase the Bonds from NS&I. The full amount deposited will be held for three years and cannot be withdrawn during this time.

August 15th, 2023 | Andrew Hagger | News

Data from 321 insurance products shows that millions of people in the UK could be paying extra fees for their car insurance.

NFU Mutual, which does not charge any extra fees, analysed data from Defaqto and found that only 9 of 321 products – just 3% – do not charge any extra fees to customers.

The most common fees charged are direct debit fees, with 95% of products charging customers more to spread payments throughout the year, and cancellation fees, which are present in 90% of products. The average cancellation fee is £57, with the highest charge a massive £400, which includes a broker fee and a charge for installing the related telematics device.

Adjustment fees are also charged in over three quarters of car insurance products, reducing the ability of consumers to make changes to their insurance without incurring costs. The highest adjustment fee was £175, which includes a broker fee and a charge for installing a new telematics device, with the average fee coming in at £39.

Well over 40% of products charged set-up and renewal fees, effectively penalising customers for setting up insurance. From products which charge the fees, the average set-up cost is £58 and the average renewal fee is £47.

Many insurance providers – 51% of products analysed – also charge customers for cancelling during the 14-day cooling-off period. This cooling-off period is a legal requirement during which a customer can cancel their policy for any reason. However, over half of insurance products charge customers to do this, at an average of £41 and reaching £400 at the higher end, with this covering cancellation, a broker fee and the cost of installing the related telematics device.

With so many car insurance products charging for common things, with the average fees representing not-insignificant amounts, customers could find themselves on the hook for substantial costs on top of their insurance premiums.

Wendy Yeomans, car insurance expert at NFU Mutual, said:

“With the cost of living crisis hitting all our pockets, it’s more important than ever to keep on top of our budgets. Many households have cancelled media subscriptions or altered their buying habits to keep spending under control, but many will not be aware they are paying the equivalent of this in extra fees for their car insurance.

“Extra fees like this, which many consumers aren’t aware of, make budgeting more difficult and effectively mean the prices many pay for their car insurance creep up beyond what they expected. That is why, at NFU Mutual, we are proud to say we don’t charge any extra fees at all, nor do we penalise customers for paying in the way that suits them best – whether this is a monthly direct debit, lump sum or by cheque.”

August 15th, 2023 | Andrew Hagger | News

NatWest’s 2023 Student Living Index reveals fraud is a major issue for students. A third of students have been targeted by criminals in the last year.

Delivery scams are the most common kind of fraud that students have encountered over the past year, with 14% having experienced this scam according to NatWest’s annual survey of over 3,000 students.

Other common scams targeting students include social media and HMRC tax scams, while the instances of bank scams decreased significantly from 2022, with only 10% of students encountering this type of scam.

In contrast to last year’s results, women were slightly more likely to have encountered a scam in the last 12 months and over twice as likely to lose money to fraudulent activity, while the amount of money lost by a victim of fraud was around £80.

The top location for student scams this year was Bournemouth, with 44% of students having been the target of a scam. Last year’s most targeted city, Edinburgh, and Oxford were next in the rankings, with 41% of students encountering a scam with over four in five in each of these areas having experienced fraud. While students in Bristol and Leicester were the least likely to be subjected to fraud, one in four students had still encountered a scam.

The NatWest Student Living Index surveyed over 3,000 students across the UK. Students were asked a range of questions, on fraud and scams, how much they spend on essentials such as food, rent and bills, and how much time they spend studying, working, and socialising. The full 2023 NatWest Student Living Index will be revealed on 11 August.

Jaimala Patel, Head of NatWest Student Accounts, said: “It is really important that students remain vigilant and are on their guard when they receive an unexpected text message, email or phone call asking for personal details.”

The NatWest Student account offers a £100 cash incentive within the first 10 days of opening the account, a four-year tastecard membership and a £3,250 interest free overdraft. NatWest also offers free Financial Health Checks and Know Your Credit Score to help students with their finances.

Find out more at www.natwest.com/students

NatWest tips to become more fraud proof

• Be sceptical of unsolicited phone calls, texts or emails asking for personal or bank details. Banks or the Police will never ask for a full PIN or password, card reader codes, or ask you to move money from your account
• Do not recycle passwords and use a unique password for your bank accounts and email accounts
• Don’t give away your personal and bank details too easily. Criminals often use online competitions or offers of free shopping vouchers as a way of harvesting information from potential victims
• Try to shop online with websites you know and trust, using your debit or credit card
• If you see a deal online that looks too good to be true from a website you’ve never heard of, it’s probably a scam. If you have doubts, don’t make the purchase
• If an online seller asks you to send money direct from your bank account to theirs, this is probably a scam. If they fail to deliver the goods you will lose your money
• When it comes to buying online, use your credit or debit card to pay, or carefully follow the scam advice on auction sites such as eBay to help you avoid falling victim.
• Be careful of social media investment scams. These often use fake celebrity endorsements and the promise of getting rich quick.
• Pass this information on to your family and friends, especially anyone you think might be vulnerable.

August 15th, 2023 | Andrew Hagger | News

A new YouGov survey commissioned by TotallyMoney investigated consumer credit confidence and found:

• 9.8 million adults (19%) are not confident in making financial decisions
• Almost a third (29%) would find it difficult to cover an unexpected £100 expense
• Two in five (41%) don’t understand how credit companies make lending decisions
• Just one in five (19%) believe lenders make it clear that if accepted for a credit product, you may not receive the offer originally advertised
• Worryingly, 17% of people wrongly believe that seeking debt advice could negatively impact their credit score

With 20 million UK adults locked out of accessing mainstream financial products, a lack of lender transparency could be driving low consumer confidence, resulting in poor customer outcomes.

 Low confidence highlighting deeper issues

Over the past two years, persistent inflation has driven household finances to the brink, with almost one in three adults (29%) saying they would be unable to cover an unexpected £100 expense*. At the same time, 11 million people are struggling to keep up with bills and credit agreements — an increase of 3.1 million in just six months. During the same period 5.6 million people missed payments three or more times‡.

Although regulators expect lenders to provide flexibility and support to struggling borrowers, 17% of survey respondents wrongly believe that seeking debt advice could negatively impact their credit score. However, missed payments can — and they could stay on your credit file for up to six years. Ending up in mortgage arrears can also lead to court action and even property repossession. So

The research also found that one in five adults (19%) don’t feel comfortable with making financial decisions. This is higher in the 18-24 age group (31%), more common among women than men (21% vs 16%), and the unemployed (31%).

As people look to plug the growing gap between earnings and expenses, demand for credit is growing§. However, two in five adults (41%) are unsure of how credit companies decide who to lend to, and a third (31%) don’t understand credit reports. In both cases, Gen Z (18-24 year olds) index the highest, followed by 25-34 year olds.

With current regulations requiring lenders to only provide 51% of successful applicants with the advertised credit card offer, 41% of respondents feel that lenders don’t make this clear enough before applying. This means they could be in for a post-application shock when they’re given a very different product to the one they applied for.

Separate research from the FCA found just 42% of all adults have confidence in the financial services industry, with only 35% agreeing that firms are honest and transparent. This lack of confidence increases for the vulnerable, and over-indebted¶.

 Alastair Douglas, CEO of TotallyMoney comments:

“Inflation is piling pressure on people’s finances, and millions are struggling to manage their money with confidence. They’re missing payments, and with little support available elsewhere, many more are turning to credit to help cover the increased cost of living.

“However, customers don’t know what the information in their credit report means, how banks choose who to lend to, or why they might receive a different offer to the one they applied for. Missed payments, rejected applications and credit confusion can have a long term impact on people’s financial wellbeing, forcing them to turn to high cost and unregulated borrowing.

“The industry needs to be proactive in its approach. It’s kept people in the dark for too long, when they should know what their data means, and how it’s used. They should know how best to apply for products without impacting their credit file, or why a lender has rejected them. We need to build trust, improve transparency, and provide people with the information they need to create financial momentum..

“Our focus is on the UK’s 20 million adults who find themselves under-served by the financial services industry. The free TotallyMoney app puts people in control of their own personal data so it works for them, not against them and provides personalised plans and products to help them unlock a life of more choices.”

August 7th, 2023 | Andrew Hagger | News

Property investments can incur a lot of disputes if you’re not careful. Here’s our top tips on how to avoid them.

Investing in property can be a lucrative strategy. However, it can also involve a lot of risk-taking and parties can sometimes find themselves in conflict over property disputes as a result.

Those involved with common property disputes may need the help of specialist right-of-way lawyers, especially in built-up areas or cities such as London. Property investment is meant to be a way of making money, so the last thing an investor needs is a dispute preventing potential sales and profits from being made.

With this in mind, let’s take a look at what you need to know in regard to reducing the chance of a property dispute…

Carry out Research and Due Diligence

The first thing you should do is conduct extensive research on the property prior to making an investment. This is called doing your due diligence, so you know what to expect.

You will want to research the property itself, making sure you know about its location and market conditions. This will help you with making an investment to decide if it’s the right choice for you.

Obtain Clear and Detailed Contracts

When you sign a contract to invest in the property, you need to make sure that you’re working with a good standard of contract. Imprecise wording and poor detail often make for areas of weakness in your contract.

You should make sure that your lease is clear and detailed. Any agreements that you sign should be legally sound and checked by a professional. If you enter into any kind of agreement with another party, it needs to be in writing rather than a verbal agreement.

Practice Regular Communication

You need to make sure that you engage in regular and proper communication with all stakeholders involved in the investment process. You should also keep close contact with tenants, property managers and other investors.

These lines of dialogue will allow you to stay up to date on what’s going on, and also know if anybody is unhappy with the arrangements currently in place. A lot of disputes arise due to poor communication between parties, so it’s important to remain in touch.

Maintain Compliance with Regulations

National laws and regulations surrounding property will change from time to time, so you need to ensure that your legal experts are up to date on these regulations at all times.

Try and make sure you are aware of regulations at all levels, from local to national. This will make sure that you are not caught out by a change in policy that triggers a dispute.

Check The Details of Your Insurance Cover

Always make sure that you have the correct insurance for your property investment. Insurance might seem like a lot to pay for, but it can pay for itself many times over if you run into any problems.

Ideally, you will want to secure property insurance, liability insurance, and landlord insurance. However, the exact combination of insurance policies that you will need will depend on your personal situation.

Seek Legal Advice

You should always seek legal advice when you are investing into property. A qualified solicitor is the best resource you can possibly have.

You should speak to your solicitor about reviewing contracts to make sure that they are legitimate and have them look over any terms on the lease. It’s important to identify any potential issues, and have constant support when you need it.

Stay Informed About the Market

If you’re going to invest in property, it’s important that you understand what the market is doing at any given point. Staying informed is a very sensible strategy.

You should be aware of any shifts or changes in the market. This will help you to make the right decisions with your investment and know about any dangers ahead of time.

Reducing the risk of a dispute in property investment…

It’s important to be safe and sensible with property investment. You need to make sure that you are investing wisely if you want to get the best results. The great thing about property investment is that if you do it right, it can be very lucrative.

With that being said, disputes do happen. Taking reasonable measures to prevent this will help you to have a much easier time investing.

Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained financial professional. Be sure to consult a financial advisor if you’re seeking advice on your finances. We are not liable for risks or issues associated with using or acting upon the information on this site.