Managing debt and future-proofing your finances is a target for many of us. We hosted a video on June 15th with consumer champion and BBC Dragon Sarah Willingham, Chief Executive of the Money Charity Michelle Highman, and Experian Experts’ own James Jones to provide expert tips on how to beat debt and prepare financially for the future.
The guests spoke about three main topics – Managing debt – Watch them discuss how and why people get into debt, what the common mistakes are and how we can try to avoid them, and give tips to beating debt and getting back on to an even keel.
Future-proofing your finances – Experian research has shown that the over-55s are worried about their financial future. Our panel discussed how people who fall into that demographic can help ensure they’re prepared for retirement and the probable loss of income that it brings, and also talked about how younger generations can future-proof their finances.
Financial education – The panel also spoke about what parents can do to help ensure they give their children the best start when it comes to financial education.
April 2015 saw the introduction of ‘pension freedoms’, which essentially gave those aged 55 and over wider access to their pension funds.
In previous years, this meant being able to take a quarter of their ‘defined contribution’ pension (ie: one based on how much they paid into it) as a tax-free lump sum, but invariably using the rest of the money to buy an annuity designed to pay out an income each year for the rest of your life.
What kind of financial future is in store for us when we’re older? With house prices higher than ever and the cost of living making putting away savings a real challenge for many, there is plenty that may make some feel the glass is half-empty rather than half-full.
Almost half (44%) the people asked in a new Experian survey of over-55s say they are concerned about their financial future, with over half (56%) worrying about not having enough savings and (55%) not having disposable income. In fact, 40% have concerns over high monthly bills.
Video: Money through the generations – the future of money
These tend to be couples and singles aged 65-plus, who have chosen to move to green and pleasant market towns for their retirement . Places with a thriving community of all ages, small enough to have a ‘villagey’ feel but large enough to have all the regular amenities and social needs that they would be used to.
“Old age and retirement used to be a more homogenous group,” explained Richard Jenkings from Experian.
“In the past people would go on holiday to the seaside and then a lucky few would then retire to those same resorts. Today we still see this happening, but a rising trend is for better-off retirees to move not to the traditional sea-side resorts, but instead to pleasant, often historic, cathedral cities and quality market towns. Continue reading →
It’s never easy to know how much you’ll need to have set aside for your retirement. So it can be useful to think ahead and start planning for the long-term financial future.
How much might you need? Everyone’s circumstances are different of course, but some factors can be common. If you’ve paid off your mortgage, that would free up a large part of your outgoings. However, if you are helping to fund your children in their quest for homes/studies/weddings etc, then that can push costs right back up.