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Eating healthy when food prices are high 

by Madaline Dunn

Life’s not been too easy on the bank balance as of late. From sky-high rent to eye-watering energy costs, for many, day-to-day living has never felt so expensive. Food prices are, of course, also rising dramatically and, over the last year, have reached record highs.

When food shops are so expensive, it’s understandable that you might feel less able to assemble healthy, nutritious meals. But, at The Salary Calculator, we’re here to help. In this week’s article, we’ll walk you through:

• What’s going on with food price inflation
• Top tips for affordable healthy eating
• How switching to plant-based can save you money, keep you healthy and protect the planet

Food price inflation

According to reports, food prices in the four weeks to May were 17.2% higher than they were a year ago. There are a number of reasons for this, the Russia-Ukraine war impacting energy, high animal feed and fertiliser prices, supply chain issues, extreme weather affecting harvests, and Brexit. While prices have dropped slightly since April, as Fraser McKevitt, the head of retail and consumer insight at Kantar, says, it’s still “incredibly high” and only down 0.1 percentage points.

Currently, inflation in the UK is higher than in other countries, such as Germany, 7.6%, France, 6.9%; and the US, 4.9%. Overall, food prices have risen at twice the rate of overall inflation, with dairy particularly affected, rising three times faster than other items. Four pints of milk, for example, is now 30p higher than this time last year at £1.60, while a 400g block of cheddar cheese is up 39%. But, across the board, groceries are costing more:

• 1 kg of granulated sugar is up 47%,
• 1kg of potatoes is up 28%.
• Olive oil is up 46.4%
• Sauces, condiments, salt, herbs and spices are 33.9%

It’s no wonder then that people are feeling the pinch, and the impact has been wide-reaching, with shoppers trying to make savings wherever they can. Research shows that own-label item purchases have shot up by 15.2 per cent, and more people are also shopping at budget supermarkets like Aldi. Aldi, for example, saw a 24 per cent sales increase, making it the fastest-growing grocer this month, while Lidl’s sales increased by 23.2 per cent.

However, you might be wondering why supermarket prices are still high despite costs coming down. Well, some believe that retailers are trying to make up for their fall in margins last year.

Regardless of why, consumer group Which? has called on the government to undertake its review of food pricing rules as quickly as possible. Rocio Concha, the Which? Director of Policy and Advocacy said: “It’s good news the government has committed to reviewing pricing rules, but this must be undertaken as soon as possible as much clearer pricing is vital in enabling shoppers to compare prices and find the best value products.”

Adding: “Supermarkets should also be making it easier for people by urgently committing to stocking essential budget ranges in all their stores, particularly in areas where people are most in need.”

Tips for healthy eating while prices are high

Considering the above, it’s understandable if you’re struggling to keep your weekly shop costs low, but below, we’ve got some tips for you.

Buy seasonal: Buying seasonally is cheaper because seasonal foods are more easily available in supermarkets and often not imported, which is a big plus from an environmental perspective, too, as it means your food travels fewer food miles. Seasonal food is also often fresher.

So, what’s seasonal? Well, for example, broccoli is seasonal from August to October, leeks from September to March, and cauliflower, from January to April. For fruit, you’ll get apples between September and February, tomatoes from June to October, and rhubarb, from January to June. If you live near to a local farm stand or farmer’s market , this could be a good go-to. For more information about seasonal food, click here, or for recipe inspiration, check this out.

Buy own-brand, “value” or “essential” or “basic” label: Buying supermarket own-brand products can save you a ton of money and these days, more and more supermarkets are coming out with their own value selection, even Co-op, which was a little late to the game. Head over here to review some of the best own-brand products.

Keep your eyes peeled for yellow stickers: While not always helpful for all items, it’s always worth checking out a supermarket’s yellow sticker selection, which features an assortment of reduced items often near to their best before or sell-by date. ​

According to the site SkintDad, the best time to go yellow-sticker-hunting at Tesco is around 8 pm or around 30 minutes before smaller stores close, while at Sainsbury’s, it’s 7 pm, and at Morrison’s, it’s 6 pm.

Freeze your bread: Freezing your bread can make it last a lot longer, for months, even. Plus, freezing bread doesn’t mean compromising on texture or flavour when sealed and thawed correctly.

Meal planning: Meal planning saves both time and money. When you have a plan while shopping, you’ll avoid buying unnecessary groceries, and, plus, you won’t have to step inside a shop during the week, meaning you won’t be tempted to waste money on things you don’t need.

Make your own sauces & soups: It might be tempting when you’re feeling lazy to buy a tomato sauce rather than make one yourself but making sauces from scratch can be a lot cheaper, plus you can make them in bulk and freeze them. The same goes for soups and dressings.

Saving pennies with plant-based power

Plant-based diets have really become popular in recent years for a number of reasons, including as part of a vegan lifestyle, informed by concerns for animal welfare and the planet’s health. Learn more about that here and here. Alongside these benefits, going plant-based can actually be a lot cheaper, too. Especially considering that inflation has hit meat and animal products nearly twice the rate of vegetables.

There’s a misconception that plant-based diets are expensive, and while that might apply to some vegan alternatives, such as processed plant-based meats and cheeses, eating whole foods can save you a pretty penny while still being delicious and packed full of flavour, whether that’s beans, lentils, tofu, or tempeh.

Research by Oxford University, for example, found that those following a vegan diet could reduce grocery bills by as much as 34 per cent compared to the costs associated with a typical Western diet.

Where many people struggle with vegan diets is missing cheese. Vegan cheese company Violife found that it’s the main reason holding around 45% of people back from making the switch. It’s not surprising, either, considering that cheese contains large amounts of protein casein, which triggers the same part of the brain as hard drugs!

However, this is where nutritional yeast flakes come in, or Nooch, as they’re more appetisingly known. These cheesy-flavoured flakes are high in B12, zinc and protein and can be sprinkled over plant-based meals to satisfy your cravings for a cheesy hit and in a more nutritionally balanced way.

For some recipe ideas, check out the following links:

• Ela Vegan 
• The Vegan Society 
• Veganuary 
• Vegan Food & Living 

Tags: cost of living crisis, Economy, food prices, shopping

The working from home debate

by Madaline Dunn

Back in 2020, as the Covid-19 virus took hold of the world, working from home became compulsory for those who were able to do so. And so, for many, came the rise of endless Zoom calls and Teams meetings, virtual social lunches, much more time at home, and fewer hours commuting.

However, as the world has slowly gained back control over the virus, WFH has endured in many workplaces. That said, the majority of people still never work from home (63.9%), 21.4% work in a hybrid model, and only 7.8% of workers permanently work from home.

Yet, despite the above figures, and many who choose to work from home touting the benefits of doing so, recently Chancellor Jeremy Hunt, speaking at the British Chambers of Commerce conference, said workers should return to the office unless they had a “good reason not to.” One of the main reasons he cited included that WFH stifles creativity.

So, what’s the basis behind his argument, is there any truth in it, and what does the workforce think? In this week’s article at The Salary Calculator, we’ll walk you through:

• The statistics on productivity,
• How creativity is faring at home versus the office,
• How WFH impacts mental health and relationship building,
• What workers’ preferences are.

Variability in productivity

When it comes to productivity and WFH, depending on who you talk to or which sources you scan through, you’ll get a very different picture painted. For example, a study conducted by Stanford, which surveyed 16,000 workers over a nine-month period, found that for those working from home, their productivity was boosted by around 13%. A few contributing factors included having a quieter and more convenient place to work in and working more due to fewer breaks. Further, it wasn’t just productivity that was boosted; workers also said they felt more satisfied, and attrition rates were even cut by half.

This is supplemented by research from TechTalk which found that 55% of the 2,000 work professionals it surveyed concentrated better when working from home. Similarly, Gitlab found that 4 in 5 workers would recommend remote working to a friend, and 81% of people surveyed felt satisfied with remote working.

That being said, while individual productivity might be thriving in some cases, surveys show that teamwork isn’t faring so well. Gitlab, for example, found that only 37% said the organisation they work for does a” good job” of aligning work across projects.

Creativity in the workplace versus WFH

One of the main reasons Hunt has cited for a return to the office is his concern about creativity or lack thereof. However, while there is no definitive data, some research shows that employees can be just as creative, if not more so when working from home. Research from Better Up found that people were 56% more creative and thought more innovatively when working remotely.

Some of the reasons that the research team gave for explaining these results were that long commutes and excessive meetings, more time being alone and thoughtful, and being in a place of safety and strength contributed to more creativity. However, there are two sides to this, and research published in Nature on a field experiment across five countries actually found that more video-conferencing, something more prevalent in remote working, in fact, inhibit the production of creative ideas. Indeed, some workers are worried about this, with around 18% concerned about their creative output outside the office.

One of the common arguments regarding this is that without being in the office, workers don’t have the opportunity to bounce ideas off each other or spark up conversations that lead them down the road of innovation. There are no so-called “water cooler moments.” However, it really comes down to an individual’s working style.

Mental health and relationship building

A core issue often explored when discussing the WFH dynamic is how it affects mental health, well-being and relationships. Again, as with all of these areas, there’s a huge level of variability.

That said, isolation is often a common concern for those working from home. One study found that 81% of younger workers said they would feel more isolated solely working from home, while another study found that 60% of workers felt less connected to colleagues.

Further, many workplaces appear to be failing to provide their employees with additional resources to cope with these new challenges. In fact, one study found that under 30% (29%) are doing so. At the same time, around 19% of workers like WFH because it allows them to avoid office politics.

It’s not just work relationships that can be negatively impacted by working from home, though, according to experts, it can also put a strain on home relationships, for example, with a partner. This is often put down to being “physically present” but “unavailable” or due to letting work seep into home life.

Linked with this is the question of work-life balance. Living and working in the same space can make switching off difficult, with a reported 32% of workers finding it difficult to do so. This is especially true for those working in their bedrooms (17%) and living rooms (27%). Working in the former can also be bad for productivity and negatively affect workers’ ability to sleep. According to Hubble research, Gen Z reportedly struggles with this the most.

What are workers’ preferences, and what does the future hold?

So, all things considered, what are workers’ preferences? Do people enjoy WFH, hybrid or office-based working? Well, a wide range of contributing factors affect this, and it appears that age group also has a part to play.

According to Deloitte, 77% of Gen Zs and 71% of Millennials would consider looking for a new job if told they had to return to the office full-time. Meanwhile, another piece of research found that two-thirds (66 per cent) of workers aged over 55 years old prefer hybrid working.

Elsewhere, a study by Hubble found that, interestingly, Gen Z were the most “pro-office” group, while Gen X and Baby Boomers were more “pro-WFH.”

It’s likely that preferences will also depend on whether or not workers have young children; after all, WFH allows much more flexible scheduling (perceived as the main benefit for 50% of workers). Likewise, another factor is how far away a worker lives from their place of work; lack of commute is the secondary draw to WFH for 43% of respondents after flexible scheduling – this comes with big savings, too, a draw for 33% of people.

While the research shows that different groups might prefer different models of working, a key insight from research in this area is that workers like flexibility and the option to choose where and how they work.

Looking ahead, while the likes of Hunt may consider WFH to be detrimental to employees’ performance, it looks like it won’t be going anywhere anytime soon. Moreover, leaked Labour policy documents reveal that the party is even planning to make flexible working a legal right. So, watch this space.

Tags: Economy, hybrid, Working from home, working week

Missing rent and mortgage payments: What’s happening, and where can you find help?

by Madaline Dunn

There’s no denying that times are tough right now, and for many, it feels difficult to find respite. The cost of living crisis is squeezing everyone and from seemingly every angle.

According to Citizens Advice, it has been supporting more people than ever before with aid and referrals. The charity called it the “bleakest ever” start to the year and has facilitated 94,000 people with food bank referrals and access to emergency charitable grants. That’s a 178 per cent increase from the same period in 2020.

Figures show that in the first four months of 2023, it helped more people than the entirety of 2019.

Further to this, recent data from Which? revealed that hundreds of thousands of people across the UK missed payments on household bills in April.

At The Salary Calculator, we understand that it’s a challenging time and that many are looking for guidance on where to turn, so in this week’s article, we’ll walk you through the following:

• The scale of the rent and mortgage payment issue
• How people are responding to tightened finances
• How to form a plan of action and where you can find support

700,000 missed household bills in April

Which? estimates from April reveal a deeply concerning trend of financial strain across the country. The consumer choice and advice company shared that according to its estimates, in April, 700,000 people across the country missed rent and mortgage payments.

These estimates were made by combining the company’s survey data with the data from the Office for National Statistics (ONS). Specifically, it was found that renters, in particular, defaulted on rent payments, with one in 20 (5.2%) unable to pay their monthly rent to their landlord. Comparatively, 3.1% of mortgage holders missed payments.

More broadly, two million households (7.3%) missed or defaulted on at least one mortgage payment, rent payment, loan, credit card, or bill.

The situation is being informed by a number of factors, but crucially, as outlined by Which? Mortgages have jumped significantly. Last year, the average two-year fix in April 2022 was 2.86%, in April 2023, it was 5.35% – meaning remortgaging will be leaving thousands with much more expensive monthly bills. For many renters, this is being passed down from landlords, with one in five tenants in privately rented properties seeing monthly rent prices hiked by 10% or more between February last year and February 2023. This is occurring alongside food prices rising at their fastest pace ever, and sky-high energy bills.

Making more financial adjustments

To cope with the financial blows of the cost of living crisis, millions are having to rethink their finances and make adjustments and cutbacks. According to Which? around six in 10 people have had to make “at least one” financial adjustment in order to be able to afford essentials.

Which? shared that this covered everything from selling their possessions to dipping into savings. This comes to an estimated 16.6 million households across the country – a figure 35% higher than two years ago.

These figures are supported by data from Barclays, which found that increasing household bills has led to half (54%) of consumers cutting back on discretionary spending. Likewise, in order to save, people have been switching from nights out and restaurant meals to nights in, with research from KPMG finding that 63 per cent of people have been cutting back by making fewer trips to restaurants. More nights in have also led to an increase in spending on subscription services such as Netflix and NowTV.

Forming a plan of action for rent and mortgage payments

With mounting bills and pressure from lenders and landlords, it’s understandable that you might be feeling stressed – and while people deal with stress in different ways, the temptation to try and avoid the issue is often strong. Many also shoulder a lot of the stress alone. In fact, according to research by Lowell Financial, a whopping 69% of people who are in debt don’t talk about it with anyone.

But however tempting that might be, when it comes to rent and mortgage payments, it’s important to deal with the situation head-on.

With rent, while it’s always a top priority to put enough money aside to pay your landlord or letting agent, it’s not always possible. After all, right now, rent prices are increasing at their fastest rate in 13 years. But, you must act straight away.

It’s also important to remember that a landlord can start the eviction process straight away, and if you’ve previously missed or been late on payments, you’re already in arrears or you’ve come to the end of your fixed term period.

Citizens Advice also recommends that you reach out immediately if you’ve not paid rent for eight weeks or more, your landlord has initiated court procedures to have you evicted, you’ve received court papers, or you’re expecting bailiffs.

An important point of action is to assess your finances and see how much you can realistically pay, even if it’s not the full amount. Then, initiate a conversation with your landlord and propose these terms. It’s key to see what you’re entitled to and see if you can apply for Discretionary housing payments (DHPs) or certain benefits. You should also be aware that landlords can ask to make deductions from your benefits.

Below are some key contacts to reach out to when dealing with rent arrears:

• MoneyHelper
• Shelter
• Citizens Advice

If you’re having difficulty paying your mortgage or are in arrears, while lenders typically wait around 15 days after a missed payment to reach out, you should reach out straight away. However, prior to doing that, as with rent arrears, it’s important to calculate a budget of what you can afford to pay, which you can share when you contact them. If this feels difficult, speak to an adviser at your nearest Citizens Advice.

It’s also important to be honest, and assess whether or not the situation is likely to be temporary or long-term. If the former, they may suggest making a temporary payment arrangement or an interest-only mortgage – find out more about that here.

If the situation is not looking like it will be temporary, there are other routes you can take. For example, you may be eligible for certain benefits or Support for Mortgage Interest (SMI) and be sure to look into mortgage rescue schemes, for example, the Breathing Space scheme.

 

Tags: bills, cost of living crisis, Economy, Mortgages, rent

The new budget and how it will affect personal finances 

by Madaline Dunn

The new budget was announced as the country faces widespread industrial action, the continued cost of living crisis and record inflation. The first big budget since Kwasi Kwarteng’s budget under Liz Truss tanked the economy, it comes while the country faces the biggest ever fall in living standards. Moreover, projections are that the country’s tax burden is to reach a new post-war record.

You’ll likely have heard that this Spring Budget has some good and some bad parts, so at The Salary Calculator, we’ll guide you through what you need to know and how you’ll be affected. We’ll walk you through the following:

• The budget highlights
• Pension pot changes
• How your take-home pay will likely be affected

Budget highlights

While this Spring budget sent fewer shockwaves across the UK (and the world) in comparison to the last, there are a number of budget highlights to take note of.

The planned rise to the Energy Price Guarantee (EPG) has been delayed, which means that it will remain at its current level for another three months; this means that the average household bill will stay at around £2,500 a year. Further to this, prepayment energy meter bills will be aligned with direct debit, leading to savings of around £45 a year for prepayment customers.

Further, the freeze on income tax and national insurance thresholds has been extended until April 2028. This means that the income tax personal allowance will stay at £12,570 until April 2028. The threshold for top-rate taxpayers of 45% will also fall from £150,000 to £125,140.

Childcare support was another key highlight in the budget. Currently, according to the OECD, the UK has the most expensive childcare costs than anywhere else in the economically developed world; so these new measures are long overdue.

There will be a phased introduction of this enhanced childcare support, as follows:

• From April 2024, working parents with children two and over will be given 15 free hours a week.
• From September 2024, these 15 hours will be extended to all children over nine months old and be introduced from maternity leave’s end.
• From September 2025, those who are eligible with children under the age of five will be provided with 30 hours of free childcare.

In addition, there will be a change in how support is delivered to those on the lowest incomes. For those using the Universal Credit system, childcare costs will be received upfront. That being said, the childcare support changes have not been without criticism. For example,

Child Poverty Action Group’s Chief Executive Alison Garnham outlined that the stringent job-search requirements for parents on universal credit (UC) are “concerning.”

In April, the National Living Wage will rise to £10.42 per hour from £9.50 for over 23-year-olds. Meanwhile, for those:

• Aged 21 to 22 years, it will rise to £10.18,
• Aged between 18 and 20, it will increase to £7.49,
• Aged 16 to 17 and apprentices, it will rise to £5.28.

Additionally, further to Hunt allocating local authorities the power to charge more Council Tax without holding a referendum (5%), from 1 April, 2023, millions will be faced with the biggest council tax hike ever, with three in four councils increasing council tax by the maximum amount allowed.

For consumers, it’s also worth noting that there will be a 10.1 per cent rise in alcohol duty rates in line with the Retail Price Index (RPI), which means that a bottle of wine could increase by 44p. However, due to the Draught Relief scheme, the tax on draught beers will remain the same from 1 August. Duty rate on all tobacco products will rise by 2 per cent above RPI inflation, too. Hand-rolled cigarettes, specifically, will see an additional 6 per cent rise above RPI.

Pension pot changes

The budget detailed significant changes to pensions. The annual pension allowance (how much you can pay into your pension and get tax relief) was originally £40,000 or your total earnings, whichever was lower, however from 6 April 2023, it will be a maximum of £60,000.

Additionally, while the lifetime allowance (the total amount you can pay into your pension during your lifetime) is currently £1,073,100 and was intended to stay this way until 2026, in the budget, it was announced that the lifetime allowance will be removed completely from 6 April 2023.

How will your take-home pay be affected?

Everyone’s take-home pay will be affected by the budget announcement differently depending on their earnings, whether or not they have children, are retired, or have student loans.

For example, because the tax brackets have been frozen and are not adjusting to keep pace with inflation, experts say that both basic and higher taxpayers will face what economists call “fiscal drag”. The Office for Budget Responsibility estimates that this will create an additional 3.2 million new taxpayers, with 2.6 million more people paying the higher rate of tax.

Further, changes to student loans mean that the Student loan repayment threshold will drop from £27,295 to £25,000 for those starting courses in September 2023. The thresholds are as follows:

• If you’re on a Plan 1 student loan (you started your course before 2012), you’ll begin repaying when your income is over £22,015 a year,
• If you have a Plan 2 student loan (you started your course between 1 September 2012 and 31 July 2023), you’ll start repayments at £27,295 a year,
• If you’re on a Plan 4 student loan (you’re a Scottish student who started your course anywhere in the UK on or after 1 September 1998), you’ll only repay once your income has exceeded £27,660 a year,
• Those on a Plan 5 student loan (you started your course on or after 1 August 2023), will start repaying their loan when their income goes over £25,000 a year,
• For those on a Postgraduate Loan repayment plan (a Master’s Loan or a Doctoral Loan), repayments begin at £21,000 a year (before tax and other deductions).

If you’re on Plans 1, 2, 4 or 5, and your income exceeds the threshold, you’ll start repayments at a rate of 9%, and 6% if you’re on a Postgraduate Loan plan.

At The Salary Calculator, we know that working out what you owe can be a bit of a head-scratcher, so we’ve simplified things with our updated Take-Home tax calculator. To get a breakdown of how you’ll be affected by the budget, head over here.

Tags: 2023, budget, childcare, Pensions, student loan

Later life money management

by Madaline Dunn

According to research, nearly one in five people in the UK are now over State Pension age (65+), and with advances in medicine and technology meaning people live longer than ever, the average person is likely to spend a quarter of their lifetime retired.

There will no doubt be different stages you go through during this later period of life, too, with each phase requiring different kinds of support. So, it’s a good idea to get your finances in order, compile a personalised checklist and get a good idea of later life money management.

Later life planning can feel a little daunting; after all, there’s a lot to take into consideration and organise. That being said, research shows that planning for later life, including later-life money management planning, is correlated with a higher level of well-being further down the line. Your later life plans can include everything from whether or not you choose to downsize and put aside money for later life care to organising your will.

In this week’s article at The Salary Calculator, we’ll guide you through the following:

• Reviewing your pension choices
• What equity release is
• Different benefits you might be entitled to
• Navigating long-term care finances
• Wills and probate
• How to watch out for scams

Review your pension choices

It’s key that you know the state of your pension; after all, when you reach later life, you’ll likely have different pension arrangements from different jobs you’ve had over the years, so it can be a good idea to consolidate them. You can use the Pension Tracing Service to track them all down. It’s advisable to speak to a financial advisor to check whether this is the best option for you.

Likewise, it’s also a good idea to see where you are with regard to your state pension. To do this, and get an estimate, simply use the GOV.UK State Pension calculator.

Look into equity release

Equity release is a way to access the value of your home (the “equity”) so that you can spend it during your retirement without having to sell your home. exists in two forms: a lifetime mortgage and a home reversion plan – one of the key differences between the two is that with the former, you still retain ownership of your home. Further, the former allows you to borrow a portion of the value of your home, and interest does apply to this. The loan is repaid either when you pass away, move into long-term care, or sell your home. There are two versions of this: an interest roll-up mortgage and an interest-paying mortgage.

The latter enables you to sell either part or all of your house, for a cash lump sum, a regular income, or both, which will be considerably less than you would have obtained if you were to sell your property. Typically you will receive between 30% and 60% of the market value of your home, as you are allowed to continue living there, and the owner cannot sell the property until you are permanently vacated, in whichever capacity that is.

See what benefits you’re entitled to

It’s a wise idea to make sure that you’re receiving all the benefits you’re entitled to as you get older; after all, everyone can do with a little extra support these days. In fact, billions in benefits go unclaimed each year.

Some benefits that you might be entitled to in your later years include:

• The Winter Fuel Payment
• Housing Benefit
• TV Licence Concessions
• Council Tax support and
• Travel Concessions.

Long-term care

Looking ahead to later life, it’s important to prepare for every eventuality, even if it may feel rather morbid, it’ll more effectively safeguard your future. This is especially true considering that life expectancy these days is much longer, with male and female babies born in 2018 predicted to live 79.9 years old and 83.4 years old, respectively. Likewise, the likelihood of becoming disabled or experiencing multiple chronic and complex health conditions increases with age. Comparatively, the time people spend in poor health has increased, and the so-called ‘healthy life expectancy’ is much shorter: 63.3 years for males and 63.9 for females.

Subsequently, it’s important to plan ahead as you will likely have to fund this later-life long-term care yourself. This might be achieved through your pension/s, any investment money you have, or through equity release. That said, you may qualify for help with this via your local authority.

Arranging your will

As you enter the later stages of life, it’s likely that you’ll be thinking more about what will happen once you’ve passed on. A part of this might be thinking about your legacy and, if you have money or keepsakes, who you might pass this on to. If you haven’t arranged this yet, it could be worth looking into to ensure a smoother process later on and guarantee that those who you wish to inherit this receive it. If you already have a will, it’s worth reviewing and updating it as required.

Here, it’s also worth checking whether or not inheritance tax will apply. For more information about that, head over here. By planning ahead, and taking the above into consideration, you can also look into lowering your inheritance tax by parting ways with some of your money, for example, through:

• Charitable giving,
• Lifetime gifts,
• Setting up a trust.

You may want to look into setting up Power of Attorney, too. This gives another individual/s legal authority to make decisions on your behalf, if, for example, you spend time in hospital, or you no longer have the mental capacity to make your own decisions.

If you’re in a financial position to do so, you may also want to put money aside for your funeral costs. While everyone’s preferences will differ when it comes to life celebrations and funerals, costs can really add up – these days, the average burial costs around £4,383, while cremations cost around £3,290. Here, you may want to look into pre-payment; again, it might sound a little morbid, but it will mean your family and loved ones will have less to worry about after you’ve passed away.

Protecting yourself against potential scams

Research shows that scams targeting older adults are, unfortunately, on the rise. So, it’s wise to educate yourself about some of the common scams targeting people at the moment because, with increasingly sophisticated scams, it’s easy to fall prey to them.

Energy scams are particularly prevalent right now due to the ongoing energy crisis. Many scammers are posing as Gov.uk, Ofgem, or an energy company, claiming that you have an energy rebate to claim. However, bear in mind that if you are entitled, this will be directly applied to your bill, or received by voucher.

Some other key advice is to register with the Telephone Preference Service to reduce unsolicited calls. This can be done here. Likewise, don’t open any suspicious texts, pop-up windows, email attachments or email links.

Tags: houses, Later life, money management, retirement, wills