RETIREMENT SAVING ADVICE-WHY IS IT IMPORTANT ?

RETIREMENT SAVING ADVICE- WHY IS IT IMPORTANT?

RETIREMENT SAVING ADVICE- WHY IS IT IMPORTANT?
RETIREMENT SAVING ADVICE- WHY IS IT IMPORTANT?

 

Last month Pension Awareness Day was celebrated with the aim of raising awareness of the importance of saving for the future and to make people aware that they are not saving enough for the future. All this talk of pensions and savings got us thinking about why they are so important when considering retirement?Retirement saving Advice-Why is it Important ?

By law employers now have to provide workers with the option of a ‘Workplace Pension Scheme,’ this is called ‘automatic enrolment.’Retirement saving Advice-Why is it Important ?debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

So what is all the fuss about?

Here is our simple guide where we will be breaking down the ins and outs of pensions.Retirement saving Advice-Why is it Important ?

According to the Money Advice Service, more than half of the UK population are either not saving or not saving enough for retirement. The UK populations inadequate saving towards retirement is particularly concerning when considering that a state pension, though available for everyone, may not be enough to live on. To save earlier in life may be a wise option to then be able to top up later and keep you from struggling and one way to do this is by a pension.

But what is a state pension?

A state pension is funded by National Insurance Contributions which are paid during your working life and therefore the amount you receive will depend on how much you have contributed. You will be able to receive your state pension when you reach state pension age which is currently 55 but is subject to change.debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

There are also additional benefits you can claim when you reach pension age known as Pension Credit. Pension Credit is a benefit which comes in two forms, Guarantee Credit which will top up your weekly income to £151.20 if you are single and to £230.85 if you are a couple. The other part of Pension Credit is Savings Credit which will be available for those who reach state pension age on or after 6th April 2016 it is an extra weekly payment of up to £14.82 if you are single and £17.43 if you are a couple for those who have saved money towards their retirement.Retirement saving Advice-Why is it Important ?

According to Age UK, 4 million people in the UK are eligible for Pension Credit, but only one in three of these are claiming so make sure you check your entitlement!debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

You can calculate when you will reach State Pension age or Pension Credit qualifying age and how much you will get by clicking here.Retirement saving Advice-Why is it Important ?

Current State Pension will be changing to a new system which will affect people reaching state pension age from 6th April 2016 onwards so make sure you stay up to date to see how this may change you.

So why take out a pension? What are the advantages?

By putting money into a pension, you will not only be saving money for the future, but your savings will grow.

Company/Workplace Pensions

If you are working, enrolling in a pension scheme will mean regular contributions based on a percentage of your salary are taken from your wages which will be invested, so they grow throughout your career and provide you with an income in retirement. Workplace Pensions may be looked at favorably as employees also have to pay contributions towards them as well as the government in the form of tax relief.debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

You could describe a pension as a long-term savings plan with tax-relief as money put into a personal pension scheme qualifies for tax-relief therefore money that would have gone to the government as tax goes to your pension pot instead.Retirement saving Advice-Why is it Important ?debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

By October 2018 it will be compulsory for all eligible employees to be enrolled in a workplace pension. Defined contribution and defined benefit are the two main types of workplace pensions.debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

A designated gift is the most common and involves the pension funds being put onto various investments such as stocks and shares. Defined benefit schemes pay an income when you retire based on how much you earn.

Personal Pension

In addition to Workplace Pensions, there are also Personal Pensions which are usually set up by individuals and can be defined as a ‘contribution pension scheme.’ With Personal Pensions there is the option of setting up regular monthly payments or giving a lump sum to a pension provider who will invest on your behalf. debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

Contributions to Personal Pensions attract tax relief and can still be taken out if you have a workplace pension.Retirement saving Advice-Why is it Important ?

Personal Pensions can work well for self-employed people as a way for them to save for their future.

Self-Invested Personal Pension

A Self-Invested Personal Pension or SIPP is similar to a Personal Pension, but the main difference is that with a SIPP the individual has more flexibility with the investments they can choose.debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

With a SIPP as you can have greater flexibility in choosing and managing your finances there can be higher charges, and therefore this option is recommended for those with more significant funds who may have experience in investing.

Stakeholder Pension

Stakeholder pensions are similar to personal pensions and h.ave to meet government standards to ensure they are good value. A stakeholder pension is an individual contract between yourself and the pension provider.debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

So the main benefits of a pension are.;

• They qualify for tax relief.

• If you are in employment, your employer will usually match or better your contributions

• When you reach qualifying pension age, you can take 25% of your pension savings as a tax-free lump sum

• The earliest you can access your pension savings is when you reach qualifying pension age, but you do not have to retire to do so.debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

So overall, pensions appear to be a great way to save for the future and ensure you are comfortable in retirement. If you are in employment, there are significant advantages as your employer will also contribute. For those who are self-employed, there are still issues regarding financial inclusion when it comes to pensions. Independent income often fluctuates making it challenging to commit to a particular monthly amount to be paid into a pension pot.

The Royal Society for the encouragement of Arts, Manufactures and Commerce’s recent report comes up with some suggestions regarding the self-employed including how pension providers could tailor schemes to suit the financial situations of the independent.Retirement saving Advice-Why is it Important ?debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

Pensions can ultimately help us all make sure we have an additional income in retirement to state pension so that we have enough to live off, however for schemes to become entirely inclusive for all, the financial circumstances of the self-employed will have to be considered and systems to be tailored to their needs.Retirement saving Advice-Why is it Important ?debt consolidation loan , debt consolidation , home equity loan , mortgage lenders of america reviews , investment property mortgage rates , mortgage application .

NEW YEAR’S FINANCIAL RESOLUTIONS

NEW YEAR’S FINANCIAL RESOLUTIONS

NEW YEAR'S FINANCIAL RESOLUTIONS
NEW YEAR’S FINANCIAL RESOLUTIONS

Overspent for Christmas 2015 and feeling the strain of debt in 2016? Well, you’re not the only one. December saw more borrowed before Christmas than in any month for seven years and 35% of people acquired to pay for presents and 23% for food. It is likely that more than 2.5million people will now be seeking debt advice in the New Year because of the financial strain of Christmas 2015.NEW YEAR’S FINANCIAL RESOLUTIONS

 

Don’t panic. If you too are suffering from Christmas overspending or overspending in 2015 in general now is the time to turn your situation around with our simple three New Year’s debt tips.

Budget

A simple place to start when beginning to tackle your financial problems is looking at your budget.

If you don’t already budget the New Year is a great time to start! Why not get your bank statements for the last three months and review them. When looking at them, you can highlight your essential expenditure such as council tax, utility bills, rent and look at where you may be overspending and what luxuries you can cut back on. Remember 2016 is the year to spend less and pay back more if you wish to get on top of your finances! NEW YEAR’S FINANCIAL RESOLUTIONS

Once you have worked out your income and essential outgoings you can look what you have left at the end of the month which can be used to help pay off your debts.

Know your debt situation

To be on top of your debts in 2016, you will need a clear picture of your debt situation to know how best to deal with it. Make sure you open all statements you receive for any credit cards, loans, overdrafts or any other debts then start to make a list of these – with up to date outstanding balances and repayment dates – if there are any.NEW YEAR’S FINANCIAL RESOLUTIONS

Another way to know your debt situation is by taking a look at your credit report. You can access a free report from Noddle or ClearScore and also get tips on ways to improve your score. By looking at your credit report, you may see debts you have overlooked and added these to your list.

Once you have an idea of all your debts and the total amount of debt you owe you can start exploring which debt solution options may be best for you such as; debt management plan (DMP), a Debt Relief Order, IVA, Bankruptcy or other. Remember it is essential to know your debt situation clearly when choosing a debt solution as picking the wrong strategy could cost you time and money in the future.NEW YEAR’S FINANCIAL RESOLUTIONS

Financial Safety Net

Once you are in a position where you feel you have regained control of your debt situation, it is time to look at the next step to ensure better financial well-being in the future, and that is saving.

Building a financial safety net can help prevent or lessen any future debt situation. Everyone experiences unexpected bills, and if you have a safety net, this could be used instead of taking out debt to cover them. Remember taking money from your savings is interest-free and therefore will save you money in the long run. If you have a savings account, interest will also be added to your savings so you will be able to make a bit of money too! NEW YEAR’S FINANCIAL RESOLUTIONS

Some final points to bear in mind!

• Act today! Whether you take action yourself or seek advice the earlier, you do the quicker and more comfortable your problems will be to resolve.

• Know your priorities. Be aware which debts have the most severe consequences; these are priority debts such as rent which failure to pay could lead to eviction but remember it is necessary arrangements are made for all obligations.

• Communicate with creditors. By contacting creditors, you are giving them the opportunity to help by understanding your situation and your options. You may also be able to avoid your debt being passed to a debt collection agency which can lead to further stress and an adverse effect on your credit file.

• Be transparent. When dealing with creditors or seeking advice give the correct details of your financial situation, like those dealing with your debts will then be able to advise you in the best way, based on your actual circumstances.

• Don’t use credit cards or payday loans to make ends meet. Review your financial situation and see if you’re able to cut back on spending instead or look at a debt solution which will reduce your monthly debt burden.

• Spend sensibly. Retailers and advertisers will still be playing the same tricks in 2016 to try and make us part with our cash but don’t be tempted and only spend what you know you can afford.

Finally, when looking at dealing with your debts if you wish to seek further help don’t use a fee-paying commercial debt management company as there are so many free help options including Fair Money Advice!

HOW TO BECOME A SAVVY SHOPPER ?

HOW TO BECOME A SAVVY SHOPPER ?

HOW TO BECOME A SAVVY SHOPPER ?
HOW TO BECOME A SAVVY SHOPPER ?

Ever find yourself surprised by the cost of your shopping when you get to the till? Want to find out smart but simple ways to save on your supermarket shopping? Don’t panic! Fair Finance’s savvy shopper tips are here to help you save £s at the tills.How to become a savvy shopper ?

Save money by shopping for unbranded products- did you know that branded and non-branded paracetamol contain the same active ingredient, these products can sometimes have a price difference of £2. So which would you choose?How to become a savvy shopper ?

1.Take the challenge- If you are used to buying branded products for your family why not try purchasing unbranded versions and see if they can tell the difference. Often ‘value’ products in primary packaging are produced in the same factories as so-called luxury items so by switching you may not be compensating on quality but could potentially save a lot of money.

2.Be smart with supermarket deals- a lot of supermarkets will try their best to upsell their products, this is to get you to buy more, so you end up spending more. Why not try shopping with a friend when it comes to buy one get one free deal. This will mean each of you will get the product for half price without purchase additional extra products.How to become a savvy shopper ?

3.Look around- Did you know that supermarkets often place higher costing items at eye level on shelves, so customers are more likely to buy them. Why not try looking on lower shelves… you may be able to find a bargain.

4.Don’t be tempted!- Another trick of supermarkets to make us spend more is by placing sweets and chocolates by tills as they are impulse buys and the last chance for the supermarket to make extra money out of you.How to become a savvy shopper ?

5.Make a list- simple things like making a list can also help you to be a savvier shopper. Going shopping with a purpose to get certain things can stop you wandering the aisles and buying stuff you don’t need. Supermarkets are set out with everyday items in harder to reach places so that you walk through the whole store to find them and there are more chances for you to be tempted by ‘special offers’ to make you spend more.

6.Remember- Supermarkets are there to make money and make you spend as much as possible to be smart. Take these simple tips and question ‘special offers’ and ‘loyalty schemes’ it may be better for you to shop elsewhere or buy an item which isn’t on ‘special offer’ but is cheaper.How to become a savvy shopper ?

What are your top supermarket tips? We would love you to share them with us in our tip exchange on our twitter and facebook pages.

1. Buy nothing. Many times, not buying anything at all will save you more than buying something on sale.

2. Consider all your options. Instead of purchasing something could you make it, get it used, fix something you already own, or do without? Could you use a less expensive alternative or a generic or house brand item?How to become a savvy shopper ?

3.Know what you want. Write things down while you’re at home, where you’ll most likely be using most of your purchases.

4. Research larger purchases. You don’t have to study every loaf of bread, but if you’re thinking of buying an appliance, an automobile, a computer, etc., it can be well worth your time to familiarize yourself

5.Keep a list. If it’s more than two items, write them down.
Writing things down while you’re at home helps you not to forget them when you’re at the store, thus saving you trips, time and money. This is especially true for day-to-day purchases.How to become a savvy shopper ?

 

Lists of more massive purchases or potential can help you to distinguish between needs and wants, and to consider more significant acquisitions more carefully before buying them.

A list can be an excellent place to leave things you’re still considering. You may learn more about a particular item or decide you don’t need it later on.

6. Know what is a reasonable price.
For items that you buy routinely, such as groceries, watch the advertisements and know what reasonable prices are and what little sale prices are. You can keep a notebook with prices at different stores if it helps.
For items, you purchase less frequently, make a price comparison. Call or shop around to a few different stores. Look online, too, but don’t forget to figure in the extra costs of shipping and taxes.

7.Stick to the list. Stores go out of their way to put the necessary items in the back so that you have to wander past prominently placed, colorful bargains. If you didn’t need junk food, bright sandals, or an extra 100-foot extension cord when you were at home, you don’t need it in the store.

8.Stock up, but be selective about what you stock up on. Bulk pricing can get you a good deal, but if you end up with 25 pounds of flour and you never bake, it’s not good deal. Buy in bulk if you use it, if it will last long enough for you to use it, if you have the space to store it, and if the price is better than you’d get buying a more moderate quantity .How to become a savvy shopper ?

9.Consider bargains carefully. Is it excellent deal, or is somebody trying to upsell you or persuade you to buy something you don’t need?

10.Learn to recognize a sales pitch and resist it.

11.Spend cash. Seeing yourself part company with your money, and parting company only with money you have, can often remind you to spend less. It can certainly help you keep from overextending yourself.

12.Think through the lifetime of your purchase. Will this investment become clutter? Will you be able to go on using it for a long time? Can you do without it for now?

13.Remember that not all purchases are objects. A restaurant meal, a gym membership, and a monthly cell phone bill are all purchases you should evaluate carefully. Scrutinize anything with a monthly bill or monthly payment with particular care, since a few dollars a month can quickly turn into many dollars per year.How to become a savvy shopper ?

14.Figure at all costs when considering a purchase. Include taxes, subscriptions, shipping, upkeep, and your own time to use or set up whatever you are purchasing.

15.Ask for a better price. Not all prices are negotiable, but it doesn’t cost you anything to ask. Just asking “Is this the best price you can offer?” can often bring the price down, but depending on the situation, you may want to haggle a bit.

TIPS

  • Don’t bother keeping up with the Joneses. If your car is older or smaller than the one in the driveway next door, keep it in good repair, wash and vacuum it, and know that you’re probably paying less for insurance.
  • Don’t follow fashion, at least not too closely. Fashion causes perfectly usable goods, such as clothing and home wares, to become outdated more quickly than they wear out. Instead, choose neutrals and colors you like in classical styles and use them as long as you can.

 

WARNINGS

  • If something looks too good to be true, be very suspicious. Either avoid the deal altogether or read the fine print very carefully and make sure it’s not an outright scam.
  • There are more important things in life than shopping or saving money. Balance shopping and bargain-hunting with other, more productive activities.

HOW TO SAVE MONEY BUDGET ?

HOW TO SAVE MONEY BUDGET ?

HOW TO SAVE MONEY BUDGET  ?
HOW TO SAVE MONEY BUDGET ?

The more control Budget Hackabot challenge is almost upon us. This weekend, We Work BKC will host one of the largest ever hackathons held in India, with over 100 teams registered for the event so far. At moneycontrol, we are exploring new areas of technology which can help us deliver unique value to our consumers. And with the problems laid out for this edition, we believe significant such amount can be unlocked in the areas of machine learning and investment advisory. How to save money budget ?

The problem statements are as follows:

Problem #1

The challenge is to build a first of its kind interactive bot that simplifies the budget for consumers by answering queries posted by users in natural English language. For responses, the bot needs to explain from the knowledge base repository of 600+ articles prepared by the money control editorial team.How to save money budget ?

Problem #2

Come up with an exciting tool that demonstrates the risks and rewards of different investment and asset classes. The tool/solution needs to be fun and easy to use. This will act as a way for users to learn about new investment options and make decisions. The users will range from beginners to regular investors. Any open/freely available data source can be used to build the tool which will suggest suitable investment options to the user. For the scope of this problem statement, asset classes to be considered can be restricted to stocks and mutual funds. The horizon for prediction will range between 1 month to 1 year depending on the asset class in question (mutual funds are obviously evaluated over a longer time frame).How to save money budget ?

The problems have been designed keeping in mind the upcoming Union Budget session in Parliament. With the advent of GST, the general public has several questions on pertinent matters that affect their daily lives and bread. This needs to be brought out into the open and healthy discourse is a must for the times. With this perspective, we’ve put our heads together to identify technological means which can address these issues for consumers at scale. And we believe the next breakthrough is close at hand, especially with the help of the more significant problem-solving entrepreneurial community.How to save money budget ?

We’ve also put in significant effort to cater to the participants’ every need. From expert panels discussing the pertinent topics of the day, breakout sessions to allow the participants to unwind, food trucks catering gourmet cuisine, and a venue which operates round the clock, this hackathon will show the way forward in collaborative breakthroughs in innovation.How to save money budget ?