Today I am looking at The Good Retirement Guide, an annual guide published by Kogan Page. I bought the current 2021 edition, which was published last month.
The Good Retirement Guide 2021 is 318 pages long. The text is fairly dense but broken up by plenty of headings and bullet-point lists. There are 14 chapters and an alphabetical index at the back. The chapter titles are as follows:
Are You Looking Forward to Retirement?
Money and Budgeting
Pensions
Tax
Investment
Your Home
Leisure Activities
Starting Your Own Business
Looking for Paid Work
Voluntary Work
Health
Holidays
Caring for Elderly Parents
No-one is Immortal
The chapter titles are pretty self-explanatory. The book attempts to cover every aspect of making the most of your senior years. The style is clear and readable, and additional resources are signposted as appropriate.
In contrast with Sod 60! which I also reviewed recently, The Good Retirement Guide covers the financial aspects of later life in some detail. I thought the information about pensions and benefits in particular was very good and tells you most of what you need to know.
Some of the other chapters are a bit less comprehensive. The one on leisure activities, for example, lists various things you might like to do – or take up – in retirement, but the information is frequently sketchy and can verge on stating the obvious. Here is what it has to say about poetry, for example:
There is an increasing enthusiasm for poetry and poetry readings in clubs, pubs and other places of entertainment. Special local events may be advertised in your neighbourhood.
And apart from a mention for the Poetry Society and a link to their website, that is all you get on this subject 🙂
I don’t want to appear too harsh. Obviously in a wide-ranging book like this, it can be hard to judge the degree of detail appropriate to any particular topic. At least by mentioning a wide range of possibilities, the book may give you some ideas about activities you might like to pursue further in retirement.
The health-related content is a bit of a mixed bag. Some subjects are covered in reasonable depth, others less so. There is just half a page devoted to keeping fit, for example, with a further couple of paragraphs about yoga and Pilates. On the other hand, there is some good information (and advice) on health insurance, long-term care plans, and so forth. Again, this illustrates that the book’s primary focus is on the financial aspects of retirement.
One thing that did surprise me is that although this 2021 edition of The Good Retirement Guide was only published last month, there is no mention of the pandemic in it. You will search in vain for Coronavirus or Covid-19 in the index. I know there can be long lead times in publishing, but in an annual guide you might think they could have inserted a section about it somewhere. Maybe we will have to wait for the 2022 version?
Even so, a lot of the subjects discussed in the guide – holidays, for example – have been seriously impacted by the pandemic. The advice and procedures for travel abroad in particular may be very different even after the pandemic is officially over.
Final Thoughts
Overall, I thought The Good Retirement Guide 2021 was a helpful book for people approaching retirement. As I’ve said above, it has a strong emphasis on financial matters, and is well worth reading for that alone. Some of the other content is a bit hit-and-miss, and the surprising lack of any mention of the pandemic means that at times it reads like a guide to an alternate world where Covid never happened. Of course, none of us really knows what the ‘new normal’ will be in future. We can but hope it will be not too far removed from the old normal we remember and which this book – despite the 2021 in its title – basically depicts.
As always, if you have any thoughts or questions about this post, please do leave them below.
Disclosure: As with many posts on Pounds and Sense, this post includes affiliate links. If you click through and make a purchase, I may receive a modest commission for introducing you. This will not affect in any way the price you pay or the product or service you receive.
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As you may have heard, the BBC has now confirmed that from 1st August 2020 people over 75 in the UK will lose their automatic right to a free TV licence and have to pay the same £157.50 a year as everyone else. This was originally due to happen in June 2020, but it was postponed due to the coronavirus pandemic.
For many old people, TV is their main (or only) source of company. Suddenly having to find this quite large sum out of (in many cases) a very limited income may cause them financial difficulties or downright hardship. Some may even have to choose between watching television and paying their heating bills.
This parlous situation has arisen because the BBC say they have to make economies, and continuing to subsidise free licences for the elderly would force them to cut back drastically in other areas. Meanwhile the government, despite their pre-election promises, has shown no sign of stepping in to preserve free TV licences for over 75s (which they could perfectly well do). Although charities such as Age UK have been raising petitions and applying as much pressure as they can, it now seems certain that this change is going to happen.
So what can people in this situation – or their relatives/friends/carers – do? The BBC have allowed just one concession – the poorest over-75s can continue to receive a free TV licence if they claim and receive pension credit. So let’s look at this in a bit more detail…
Pension Credit
Pension credit is a state benefit for people above retirement age who are on a low income. It can be paid to single people or to couples. It is usually paid weekly, though you can also choose to have it paid fortnightly or monthly.
Along with attendance allowance – which I discussed in this recent post – pension credit is one of the most under-claimed benefits. According to the Department for Work and Pensions, around 40 percent of eligible people, or two in five, fail to claim it. That’s an estimated 1.5 million eligible households in the UK who are missing out.
Pension credit actually comes in two parts – guarantee credit and savings credit. Guarantee credit boosts your weekly income to £167.25 if you’re single or £255.25 if you’re a couple (all figures correct as of March 2020). You may be eligible for guarantee credit if you have reached state pension age and your total income is less than these amounts (even if you own your own home). If you have under £10,000 in savings and investments this will not be taken into consideration. If you have over £10,000, it will be assumed that you earn £1 a week per £500 of savings and investments (equivalent to an interest rate of 10.4% – if only!). This will be added to your total income when working out your eligibility.
Savings credit is meant to be a reward for those who have saved for their retirement. It’s worth up to £13.73 a week for a single person or £15.35 for couples. To qualify, you must have a minimum income of £144.38 a week if you’re single, and £229.67 a week if you’re in a couple. For every £1 by which your income exceeds this amount, you get 60p of savings credit – up to the £13.73/£15.35 maximum. If your income is less than the £144.38/£229.67 savings credit threshold, you won’t qualify. Savings Credit is only available to people who reached state pension age before 6 April 2016. Couples where only one partner reached state pension age before 6 April 2016 can also retain savings credit if the older partner had reached 65 and qualified for savings credit before that date AND they have remained continuously entitled to it ever since.
It’s worth adding that if you pay mortgage interest or have other housing costs, have caring responsibilities, are responsible for a child, or are severely disabled, you may be entitled to more pension credit. If you receive attendance allowance or carers credit, for example, this may boost the amount you’re entitled to. The rules surrounding all this are complicated, but the government has provided a free online calculator you can use to work out whether you qualify and how much you might get. This is for guidance only, however. You can’t apply via the calculator and there is no guarantee that you will receive the amount it shows you.
To actually apply you will need to phone the DWP’s Pension Credit helpline on 0800 991234. You will need your National Insurance number, information about your income, savings and investments and your bank account details. The person you speak to will then take you through the application process. This is a subject I discussed in more detail in this blog post, as I recently helped an older friend to do this successfully.
What Does Pension Credit Entitle You To?
As well as the money – which can amount to thousands of pounds a year – if you receive pension credit you will be entitled to a range of additional benefits. A free TV licence if you are over 75 is just one of them. You may also get:
reduced council tax (or free if you are awarded guarantee credit)
Even if you only receive a small amount of pension credit, you will be eligible for all of the above. So it really is well worth applying if there is any chance you may qualify. As mentioned above, you can check first using the free online calculator here and then apply by phoning the DWP’s Pension Credit helpline on 0800 991234.
Don’t delay, as there are now just seven weeks left before the free TV licence for all over-75s becomes a cherished memory.
Equity Release to Boost Your Income
If you’re still struggling to pay the bills even with pension credit, there are other methods to help boost your income. In particular, UK homeowners are fortunate to have opportunities to unlock their property value. An equity release loan could provide the security you desire if you require the means to pay for life’s simple pleasures or cover essential costs.
What’s more, homeowners can unlock up to 65% of their property value, with no compulsory payments required during their lifetime. There’s no limit on how you can use the tax-free cash you receive, so an income lifetime mortgage could be the ideal way to pay your bills and have a bit extra for luxuries as well.
In this recent blog post I discussed how over-75s may be able to avoid losing their free TV licence by claiming pension credit.
As I said then, I have recently done this myself on behalf of an elderly couple who are friends of mine. As promised, today I’ll be sharing my experience of the telephone application process. I hope anyone thinking of doing this themselves or on behalf of elderly friends or relatives may find this helpful.
But first, let’s recap on what pension credit is…
Pension Credit
Pension credit is a state benefit for people above retirement age who are on a low income. It can be paid to single people or to couples. It is usually paid weekly, though you can also choose to have it paid fortnightly or monthly.
Along with attendance allowance – which I discussed in this recent post – pension credit is one of the most under-claimed benefits. According to the Department for Work and Pensions (DWP), around 40 percent of eligible people, or two in five, fail to claim it. That’s an estimated 1.5 million eligible households in the UK who are missing out.
Pension credit actually comes in two parts – guarantee credit and savings credit. Guarantee credit boosts your weekly income to £167.25 if you’re single or £255.25 if you’re a couple (all figures correct as of March 2020). You may be eligible for guarantee credit if you have reached state pension age and your total income is less than these amounts (even if you own your own home). If you have under £10,000 in savings and investments this will not be taken into consideration. If you have over £10,000, it will be assumed that you earn £1 a week per £500 of savings and investments (equivalent to an interest rate of 10.4%). This will be added to your total income when working out your eligibility.
Savings credit is meant to be a reward for those who have saved for their retirement. It’s worth up to £13.73 a week for a single person or £15.35 for couples. To qualify, you must have a minimum income of £144.38 a week if you’re single, and £229.67 a week if you’re in a couple. For every £1 by which your income exceeds this amount, you get 60p of savings credit – up to the £13.73/£15.35 maximum. If your income is less than the £144.38/£229.67 savings credit threshold, you won’t qualify.
While for most people pension credit won’t be a huge amount, it has the big advantage that it acts as a gateway to a range of other discounts and benefits. The free TV licence for over-75s is just one of them. Pension credit recipients may also get reduced council tax (or free if awarded guarantee credit), free NHS dental treatment, help towards the cost of glasses, help with the cost of travel to hospital, cold weather payments, automatic entitlement to the Warm Home Discount, help with rent, free home insulation and boiler grants, and more. All of this means it is well worth applying for, even if you’re not certain whether you qualify.
Checking Your Entitlement
The government is keen that anyone eligible for pension credit should claim it. To that end they recently launched a free online calculator you can use to work out whether you qualify and how much you might get.
You can use the calculator anonymously to check your entitlement (or someone else’s), either as an individual or a couple. You can’t actually apply via the calculator, though. It is just for guidance, to help you decide whether it’s worth putting in a claim.
The calculator asks a variety of questions about your circumstances and current income, including any pensions or other benefits you may receive. The latter may actually improve your chances of getting pension credit. For example, if you receive attendance allowance and/or carer’s credit (as my friends do) this can improve your chances of qualifying. When I did this on behalf of my friends, the calculator showed that they should be eligible for a payment of just over £10 a week.
As mentioned above, the results on the calculator are for guidance only, and there is no guarantee that you will receive the amount shown. However, in my friends’ case it definitely confirmed that applying would be worth doing.
Applying for Pension Credit
By far the easiest way to apply for pension credit is to phone the DWP’s Pension Credit Helpline on 0800 991234. You will need to have your National Insurance number, information about your income, savings and investments and your bank account details to hand.
If you’re applying on someone else’s behalf, the DWP like you to have the person concerned with you at the time. The call handler spoke briefly to my friend to confirm her personal details and that she was happy for me to take over the application process.
It turned out to be a two-stage procedure. Initially I spoke to a male call handler who asked a list of questions about my friends’ circumstances and their finances. This was basically the same set of questions I had answered on the online calculator. It was reasonably straightforward, and at the end he informed me that my friends did indeed appear to have a valid claim, so he was going to put me through to his colleague who would take me through the actual application.
This meant that I had to answer the same set of questions again from another DWP employee – a woman this time, as it happens. This did strike me and my friend as rather a waste of everyone’s time. We wondered why the answers I had given initially couldn’t just be passed on to the second person, but I suppose the DWP must have their reasons.
Anyway, we duly went through all the questions (and a few more) again. I would, incidentally, comment that the young woman I spoke to – who told me her name was Jenny – was extremely pleasant and helpful. At one point we went off at a tangent and started talking about our favourite cakes (well, it was tea-time by then). I felt she went out of her way to help us, and she certainly made the whole application process a lot less stressful.
After going through all the questions, Jenny said she would need information about how much exactly was in my friends’ bank accounts and when their (small) private pensions were paid in. This could have been problematic, as it involved logging in to my friends’ online bank accounts and finding this information there. But Jenny was patient and flexible about this, and in the end we found all the information she needed.
The whole process took a little over an hour. if you have to break off half-way through that is possible and you can ask for a reference number so you can complete the application another time. But I really wanted to get the whole thing done and dusted in one call, and thankfully – with Jenny’s help – we achieved that.
The Outcome
After about six weeks my friends received a letter from DWP saying their application had been successful and they had been awarded pension credit.
The amount was the same as had been shown on the online calculator. It was about £10.50 a week, going up to almost £12 in April (I’m sorry I can’t remember the exact figures). This money was savings credit rather than guarantee credit, but that makes no difference as far as the free TV licence is concerned. If you are over 75 and qualify for either type of pension credit (or both) you are entitled to a free TV licence.
We then submitted the short application form to the TV licence people, with a copy of the first page of the DWP letter confirming the award of pension credit. We haven’t heard any more since, but presumably my friends will receive their free TV licence in the coming weeks.
So that was my experience of applying for pension credit on my friends’ behalf. I hope it has encouraged you to proceed with your own application if you are considering making one. If you get to speak to the lovely Jenny in Scotland, do pass on my regards to her!
And if you have any comments or questions about this post, of course, pleased free free to leave them below as usual.
This is a fully updated repost of my March 2020 article.
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…that’s the question I was asked recently by a Pounds and Sense reader after I mentioned in this blog post that I had a financial adviser.
Of course I replied to her directly at the time, but on reflection I thought it would be good to provide a more in-depth answer to this question on the blog.
To recap, my financial adviser is called Mike and he works for a company called Integrity Wealth Solutions. I was recommended to Mike by my accountant, and he has been advising me for over three years now.
Mike actually looks after about half of my portfolio. He advised me about this initially and set up the recommended investments on my behalf, making maximum use of my tax-free allowances. He continues to monitor my investments and makes any recommendations for adjustments as required. I see Mike once a year in person to review how things are going (both with the investments and me personally). But of course, I can also speak to him by phone (or email) any time if required.
The other half of my portfolio I look after myself, and it is fair to say it is well diversified! As regular readers of PAS will know, I have investments in property crowdfunding, P2P lending, the robo advisory platform Nutmeg, and various others.
Why then do I need Mike? Here are just some of the reasons…
1. Mike is a trained and experienced independent financial adviser/planner who works full-time in this field. I am a money blogger and obviously have a special interest in financial matters, but I have no professional training or direct work experience in this field. I can ask Mike for his professional opinion on any investment-related matters, and while I am not obliged to follow his advice I do of course take it very seriously.
2. Mike has a backup team in his office and access to specialist investment research services and software. He uses these resources to inform his advice, and also to provide in-depth reports (with snazzy-looking charts and spreadsheets!) regarding how my investments are performing.
3. As a regulated financial adviser, Mike has to follow all the correct protocols and ensure that all advice he gives follows best professional practice and is appropriate for my needs and circumstances. He cannot cut corners, invest on a whim or hunch, or let himself be distracted by the latest ‘bright shiny object’ in the investment world. I have to admit that I have been guilty of all of these things myself in the past!
4. As a professional financial adviser Mike also has access to certain investment opportunities or platforms that are not easily accessible to the general public. I won’t go into detail about this here, but it is certainly something I have had occasion to be grateful for in the current coronavirus outbreak.
5. Mike is able to provide personalized but objective advice about my finances, based on information I give him. Money and investment can be emotive subjects, and it’s great to have a sympathetic – but at the same time sensible and detached – professional advising you. I am sure Mike sometimes sighs inwardly at some of my more exotic investments, but he is always interested in what I have been doing with ‘my’ half of my portfolio and happy to offer his thoughts as appropriate.
Are there any drawbacks to having an adviser? Well, of course, you have to pay them! In the case of Mike I paid an up-front fee initially and now pay a small monthly commission. Hand on heart I can say that Mike is well worth his fee, and even in the current exceptional circumstances his charges have been more than covered by the amount by which my investments have grown.
So that is why I have a personal financial adviser. If you are fortunate enough to have money to invest, I strongly recommend you consider engaging one too.
If you would like to find out more about the service offered by Mike and his colleagues at Integrity Wealth Solutions, you can check out their website and contact them on 02476 388 911, or email them at advice@integritywealth.co.uk. They are friendly and not at all pushy, and will be delighted to talk you through the service they offer without obligation. If you do get in touch, please mention that you were recommended by Nick Daws of Pounds and Sense blog. If you end up becoming a client they have said that they will pay me a small fee to say thanks. This will help to cover my costs and ensure I am able to go on sharing tips and advice to Pounds and Sense readers.
As always, if you have any comments or questions about this post, just let me know.
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Today I’m spotlighting a pension advisory service called AdviceBridge that may be of interest to any Pounds and Sense readers who are planning for their retirement.
There is no doubt that in recent years retirement planning has become more challenging. The pension reforms introduced by George Osborne in 2015 gave people much more freedom over how and when they can access their retirement savings. There are many benefits to those reforms – and I’m a fan of them myself – but it does mean most people now have big decisions to make over how to finance their retirement.
A further factor is the decline of ‘defined benefit’ pensions. These guaranteed a certain pension usually based on how long you had worked for an employer and how much you earned during your career. The great majority of working age people nowadays have ‘defined contribution’ pensions, where you build up a pension pot over the course of your working life. This then provides you with an income (alongside the state pension and any other investments) when you retire. Anyone with a pension of this type will have important choices to make over how, when and where to save for their pension, and what to do with it once they reach retirement age. Many people who are not financial services professionals understandably struggle with this and need some expert help (I did myself).
Getting professional financial advice can be expensive – typically pension advisers in the UK charge £2,000-£3,000 up front and then 0.5% a year. But a new service called AdviceBridge promises a personalized, affordable retirement planning service. Indeed, they say they can do this for as little as a tenth of the average adviser fee, partly by running the service online and over the phone (no face-to-face meetings required).
Although it is a low-cost service, AdviceBridge is staffed by fully trained and regulated financial advisers, and the company is authorized and regulated by the Financial Conduct Authority (FCA). AdviceBridge never holds investors’ money, even when they assist in the implementation of a retirement plan. The advice they give is though covered by the Financial Services Compensation Scheme (FSCS), which means clients can claim compensation of up to £85,000 if they receive bad advice.
Who Is AdviceBridge For?
In order to keep their charges low, AdviceBridge say that at the moment they are only able to help clients who meet the following criteria:
You are resident and domiciled in the UK.
You are generally in good health.
You do not have any unsecured loans.
You are not currently contributing to pensions with safeguarded benefits such as a final salary pension.
You do not own any buy-to-let property or any non-standard investments.
You do not receive any means-tested benefits.
You would like to plan individually, not as a couple.
How Does It Work?
Assuming you meet the criteria above, you start by filling in an online questionnaire and completing some electronically-signed compliance documents.
As well as the usual contact information, the questionnaire covers such matters as:
your age
your employment status
your annual income
any existing private or company pensions
whether you will qualify for a full state pension
other savings and investments
your target retirement age
how much income you hope to have in retirement
any major outgoings in future you need to plan for
and so on
Once you have entered this information, you can create and log in to your account to see an overview of your financial situation. You can adjust the parameters in order to achieve a realistic and sustainable level of retirement income. Here is a screen capture showing part of this (an example account, not mine personally!).
Personalized Plan
Naturally, the above is just the first stage of the process. Once you have provided this information and set up your account, the AdviceBridge advisers will crunch the numbers and (with the aid of their specialist software) produce a personalized plan for you.
This is obviously a key document. The sample plan I saw came to 39 pages in PDF form. It was divided into three sections: About You, Our Recommendations and Advice, and Appendices.
About You sums up the information you have provided to AdviceBridge via the questionnaire. It covers your personal circumstances, your retirement savings and investments, and your progress so far towards achieving your retirement goals.
Our Recommendations and Advice is the longest section of the plan. It presents recommendations on every aspect of managing your finances for retirement, including restructuring your investment portfolio if required (with specific recommendations for low-cost personal pensions and ISAs). It also examines the likely outcome of following the recommendations, including both average and conservative projections. A sample page from this section of the plan is shown below.
Finally, the Appendices section includes a range of supplementary information, including more detail about the UK state pension, rules about annual pension allowances and taxation, your options for accessing your pension (drawdown, annuities, etc), and more.
It doesn’t end there, though. Once you have had a chance to read and digest your plan, you can arrange a call with a personal financial adviser from AdviceBridge to talk through the advice and recommendations and help you decide how to proceed. The advisers are not paid commission on product sales, so they are able to give unbiased advice about what investments may be best for you based on your specific circumstances.
So What Does It Cost?
For the basic AdviceBridge service as described above, there is a one-off fee of £300 with no recurring charges. This service will suit people who are happy to arrange their own investments based on the advice given and the telephone call with an adviser.
If you want AdviceBridge to set up the recommended investments for you – to implement your financial plan, in other words – they will do this as well for an inclusive fee of £500, again with no recurring charges.
Finally, if you opt for the Plan+Implementation service and want ongoing support and assistance too, including dynamic risk adjustment, an annual telephone review, ongoing telephone support, assistance putting your pension into drawdown, and the opportunity to monitor your portfolio online using a dedicated app, AdviceBridge offer all this for an additional £100 a year or £10 a month.
All of the above is summed up in the table below which I have copied from the AdviceBridge website.
My Thoughts
Overall, I have been very impressed by AdviceBridge, both in terms of what they are offering and the prompt and friendly support they provided while I was writing this article. Here are some of the main things I like about their service:
much lower fees than traditional financial advisers
all fees quoted include any taxes due – what you see is what you pay
range of options according to how much (or little) work you want to take on yourself
non-commission-based advisers, so unbiased advice on what investments will suit you best
advisers are free to recommend across the entire range of investment opportunities
all digital process – no need for personal visits or face-to-face meetings
fully FCA authorized company and advisers
advice is covered up to £85,000 under the Financial Services Compensation Scheme (FSCS)
all personal information is securely encrypted
in-depth written advice and recommendations on your retirement finances backed up by telephone support
Any negatives? Well, the only real one I could find is that various groups are currently excluded from the service, e.g. buy-to-let landlords and holders of ‘non-standard investments’. I guess the latter might include me, as I have a proportion of my portfolio in P2P lending and property crowdfunding.
I do of course appreciate that to keep their service so inexpensive AdviceBridge have to streamline their service, but it is a pity if this excludes a significant proportion of people who could benefit from it. I understand that this is something that AdviceBridge keep under review and in future they may remove some of these restrictions. In the mean time, if you aren’t sure whether you are eligible, it is well worth giving them a ring or contacting them via the website to ask (without obligation).
In my opinion, if your circumstances match their criteria, AdviceBridge are well worth checking out. I particularly like their £500 Plan+Implementation service, which covers not only researching and producing a retirement plan for you but implementing it as well. I would also seriously consider paying the extra £100 a year (or £10 a month) for the ongoing service. Obviously that brings the price up a bit further, but it is still far less than you would pay a traditional financial adviser for a similar service.
As always, if you have any comments or questions about this post, please do leave them below.
Disclaimer: This is a sponsored post for which I am receiving a fixed fee (but no commission). Please note also that I am not a professional financial adviser and nothing in this post should be construed as individual financial advice. Everyone should do their own ‘due diligence’ before investing and take professional advice as appropriate. All investment carries a risk of loss.
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For many older people the free bus pass (officially known as the older person’s bus pass) is a valuable concession. It helps them get about and maintain their independence without eating into their often limited income.
Holders typically get free bus travel within their local authority area between 9.30 am and 11 pm on weekdays and all day at weekends.
The rules for when you qualify for a free bus pass vary according to where in the UK you live. In Scotland, Wales and Northern Ireland, it’s straightforward. You qualify once you reach your 60th birthday.
Those living in England are not as fortunate. In this case, you won’t qualify until you reach the current state pension age. This is currently 66 for both men and women. The state pension age will start to increase again from 6 May 2026, and will reach 67 by 6 March 2028.
Once you have reached the qualifying age in whichever country of the UK you live, you can apply via the government’s Apply for an Older Person’s Bus Pass page. You will see a box on this page in which to enter your postcode. Clicking through this should take you to the website for your local authority (though you may have to navigate to the page for travel concessions from there). You can then apply online for your bus pass. Requirements can vary from one local authority to another, but in general you will be required to upload a passport-style photo, proof of identity, and proof of residency in the area concerned (e.g. a council tax bill). For info about how to renew your bus pass online, please click here.
If you don’t want to apply online, most authorities also offer an option to apply in person, e.g. at a public library. Your local authority website should have more information about this.
Some local authorities have their own schemes and concessions for older (and/or disabled) people. Again, your local authority website should tell you if there are any special concessions for older people in your area, or you can ask at your local library.
In London, once you reach the female state pension age you can apply for an Older Person’s Freedom Pass. This entitles you to 24-hour free travel across Transport for London’s networks (except for some river boats where travel is half price). You can check your eligibility for a Freedom Pass and apply here.
Cards and Discounts
Even if you don’t yet qualify for a free bus pass, there may be other ways you can get free or discounted travel.
If you live in London and are 60 or over, you can apply for a 60+ Oyster card. This provides free travel on the London Underground, Overground, trams and buses, as well as some TfL Rail and National Rail services, but you can’t use it outside London. The card has a one-off £20 administration fee. You can apply online from two weeks before your 60th birthday. For more information about the application process see the TfL website.
Also once you are 60 or over, you can apply for a Senior Railcard. This currently costs £30 a year and gets you a third off most rail journeys, local and national. You can get more information and apply here.
Or if you’re 60 or over and make regular use of National Express coaches, you can buy a Senior Coachcard which costs £12.50 (plus 2.50 p&p) and offers a third off travel throughout the year. With this card you can also buy a £15 day-return on Tuesdays, Wednesdays and Thursdays to anywhere in the UK (excluding airports) as long as you book three days in advance. You can apply for a Senior Coachcard via the National Express website.
As always, if you have any comments or questions about this post, please leave them below. Happy travels!
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I recently helped an elderly friend submit an application for Attendance Allowance, so in this post I thought I would set out how the application process works and share some tips and advice based on my (thankfully successful) experience of claiming it.
But first, let’s deal with the basics…
How Much Is It?
Attendance Allowance is paid at two different rates according to how much help and care you need.
The lower rate (currently £58.70 a week) is paid to people who need frequent care throughout the day OR night
The higher rate (currently £87.65 a week) is paid if you need frequent care throughout the day AND night, or if you are terminally ill.
Payments are normally made every four weeks direct to your bank account. The money is yours to spend as you wish to make your life a bit easier.
It is worth noting that you do not need to have someone currently caring for you in order to claim. Eligibility is based on your need for care rather than whether you are actually receiving it.
Another important point is that Attendance Allowance is not means-tested – eligibility is based purely on your care needs. Also, it is not taxable and will not normally affect your entitlement to other welfare benefits. Indeed, you may also be eligible for extra Pension Credit, Housing Benefit or Council Tax Reduction if you receive Attendance Allowance.
How Do You Apply?
Attendance Allowance is administered by the Department for Work and Pensions (DWP) rather than local councils. In Northern Ireland the Department for Communities (DfC) has responsibility for it.
The bad news is that there is a long (31 pages) and complicated application form. You can either download this from the government website or you can phone them on 0800 731 0122 and ask for a form to be sent to you. In Northern Ireland you can download the form from this site or phone the Disability and Carers Service on 0800 587 0912. You can apply yourself or someone else can apply on your behalf (with your permission, of course)..
Whether to download the application form or request it by phone needs careful consideration, as both methods have their pros and cons.
If you download the form it will be as an editable PDF. That is the option I used for my friend’s application. It has the advantage that you can complete it on screen rather than by hand. If is therefore easy to edit and amend your answers. Then when you are ready you can print it, sign it where required, and submit it. As a matter of interest, I used the free Foxit Reader program to complete and edit the form on my PC.
On the other hand, if you request a printed application form, as long as you return it within six weeks (a deadline date will be marked on the form) the benefit – if awarded – will be backdated to when the form was sent out. If you download the form from the website, it will only be backdated to the date they receive it from you. So you could lose out on several weeks’ money you might otherwise have had.
One compromise would be to request the form by phone and download it from the website as well. You can then use the downloaded version to create and edit your answers on screen. Once you have a finished version you are happy with, you can copy this manually on to the paper form and submit it within the six-week deadline.
Top Tips for Filling in the Form
Based on my experiences helping my friend – and some additional research online – here are my top ten tips for completing the Attendance Allowance application form.
1. Don’t rush at it like the proverbial bull in a china shop. If you do, you will almost certainly make mistakes and forget things. If you requested the form by phone you have six weeks to complete and return it without any financial penalty, so take advantage of this.
2. Read the notes that come with the form before you start to complete it. This will help you understand what the assessors are looking for to determine whether you are eligible for the benefit (and at what rate).
3. Keep a diary for a few days at least (ideally a week). Record in this all the occasions on which you need help and support. For example, if you need help getting dressed or washing, note down when this happens and how many times a day.
4. Be honest about your care needs when completing the form. Bear in mind, though, that Attendance Allowance is awarded to people who need help with their personal care. Washing, showering, eating, getting dressed and going to the toilet would all be things to mention if you need help with them. On the other hand, things like washing clothes, cooking, washing-up, dusting and hoovering may not be viewed in the same light. While these tasks clearly have to be performed by someone, they probably wouldn’t be regarded as personal care needs. Neither does the allowance cover mobility needs.
5. In the relevant section (Question 25) you should list any aids and adaptations you need/use. These might include bath or stair rails, a hoist, a shower seat, a commode, a walking stick, a wheelchair or walking frame, and so on. If you have eyesight problems, they could also include a magnifying glass or an extra-bright daylight bulb. You should also write about these things in the relevant ‘care needs’ questions. For example, if you use a grab rail to get in and out of the shower, you should also mention this in Question 29, ‘Do you usually have difficulty, or do you need help with washing, bathing, showering or looking after your appearance?’ Don’t worry if you end up mentioning the same thing twice (or more) over.
6. Bear in mind that you don’t have to require continuous support to receive the benefit. The term used on the form is frequent, although this isn’t defined precisely. One question (in Q38) asks how long you can safely be left unsupervised. My friend and I decided that the honest answer to this was two to three hours, although the latter would only apply with careful advance preparation. We answered 2-3 hours maximum and this appeared to be acceptable.
7. In addition, it doesn’t matter who is providing your care currently. My friend was concerned that because her husband was her primary carer, she would not be eligible for Attendance Allowance, as this would be expected from a spouse anyway. That is emphatically not the case. No matter who is caring for you – or even if nobody currently is – that will not affect your eligibility for the benefit.
8. The form gives you the opportunity (in Q49) to include a statement about your care needs from someone who knows you well. It is obviously good to include this if you can. As a close family friend I filled in this part of the form myself, but other options might include a doctor, a nurse, a care assistant, a family member, a priest or chaplain, or even a neighbour. Obviously it is important that whoever does this understands what the form is for and the sort of care needs the assessors are looking for.
9. You can also include a letter (or letters) from a medical professional backing up your need for care and support. In the case of my friend, we included a copy of a letter from her main (respiratory) consultant regarding her latest appointment. Fortuitously this also listed all her other health conditions and included a brief medical history. If you don’t have something like this available, ask your GP or consultant if they will provide something for you.
10. Remember that care needs can be psychological as well as physical. If you need support to combat loneliness and depression (or worse), you can and should mention this on the form.
Submitting the Form
Once you have completed the form, you will need to send it by post (email is not acceptable). As I completed my friend’s form online, I printed it out and put it in a clear plastic wallet, then sent this is a large padded envelope.
The address to send it in England, Wales or Scotland is Freepost DWP Attendance Allowance. The address for Northern Ireland will be on the form.
Don’t expect a quick response to your application. It is likely to be six to eight weeks before you hear anything, though you can if you wish phone to check that they have received it.
As mentioned, if your application is successful your benefit will be backdated to the date the form was received or (if you originally requested it by phone and are within the six-week deadline) the date the printed form was sent out to you.
Thankfully my friend’s application was approved without any further investigation and she is now receiving the allowance. In some cases applicants are required to attend for a personal assessment. Information about this will be sent by letter.
If you are unsuccessful in your application, you can submit an appeal. Information about how to do this will be included with the letter informing you that your application has been unsuccessful. You will need to appeal in writing to the address given in the letter. Normally you have to submit your appeal within a month of being turned down.
Other Resources
This has inevitably been a concise article, based on my experience of applying for Attendance Allowance on my friend’s behalf. If you need more information and guidance, there is plenty more online. Here are some useful websites to check out…
If you – or an elderly relative, friend or neighbour – may be eligible for Attendance Allowance, I hope this post has encouraged you to apply. The application form can appear daunting at first, but if you take your time and approach it in a calm and systematic way, it is perfectly do-able. The money is set aside for people in your situation, and it really can help make your life a little more comfortable.
I do, though, recommend enlisting some help with it if possible. Even if you are confident about completing the form, someone who knows you well may be able to suggest ways you need care and support that you might not have thought to mention yourself. And two heads are always better than one, of course! If you don’t have a suitable friend or relative, you can contact your local Citizens Advice Bureau and ask if they have someone who can assist you in completing the form.
As always, if you have any comments or questions (though bear in mind I make no claim to being an expert about Attendance Allowance!), please do leave them below as usual.
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Today I have a guest post for you from James Mackay, a certified financial planner and regular reader of Pounds and Sense 🙂
In his article below, James addresses an issue that will be real and pressing for many readers of this blog – how to prepare for retirement and enter it successfully.
Over to James then…
If you’re starting to think about your retirement, these are three important questions that you need to ask.
1. Have You Had Enough?
It’s Sunday evening and you’re winding down after a busy weekend with friends and family. As you sit back in your favourite chair and think about the week ahead, you can’t quite get comfortable.
The thought of going back to work on Monday morning makes you feel a bit uneasy. In fact, the thought of doing it for another 5–10 years makes you feel sick!
If you’ve ever experienced this, you might be approaching the point where you’ve had enough (that’s a technical term).
The question you need to ask yourself is whether the pain of going to work outweighs the benefit. If you find yourself in this situation; where you’re emotionally, physically and mentally drained and no longer excited to perform at the highest level, it’s time to do something about it.
Having had enough doesn’t mean that it’s necessarily time to retire. It simply means that you need to change the status quo.
Maybe you’ve had enough of your current role, but you’ve got more to give in another capacity. Your years of wisdom could be very valuable in a different guise. Perhaps you’ve had enough of having a boss and are ready to go it alone. With the years of experience, it’s no surprise that over 50s are the best entrepreneurs. Or maybe you’re happy to carry on but just want a little bit more flexibility around what you do and when you do it.
These are all useful options to explore, particularly if you haven’t got enough to hang your boots up yet. Sometimes, the benefit of working for “just one more year” can make a real difference to your financial situation.
2. Do You Have Enough?
If you’ve had enough, and are ready to move onto pastures new, the next question is do you have enough?
Whenever I ask this question, people start telling me how much they’ve got saved up. But they’ve got it all wrong. It’s like trying to build a house without the seeing the floor plans. You need to start with the end goal and work back from there.
Working out if you have enough requires knowing:
Your monthly number – this is how much a comfortable lifestyle is going to cost.
The gap – this is the difference between the two, and where your savings come in. Broadly speaking, if you’ve got 20x the gap in savings, you should be fine. Any less and you might not be quite there yet.
But, there’s more to retirement planning than just simply figuring out your ‘number’. Finding your purpose in retirement sounds wishy-washy, but without a clear purpose you’re likely to be one of the 25% of retirees who return to work.
3. Will You Have Enough to Do?
You need to ask yourself what you are going to do when you wake up on that Monday morning, free from the ties of work, and how are you going to fill your time.
If for the last 40 years you’ve been busy being busy – chances are you’re going to get pretty bored sitting around the house for 40 hours a week. I’ve seen many successful individuals retire, only to get bored and return to work within five years. The newly-found free time that retirement provides can be overwhelming for some.
Retirement is about having enough money to sleep at night and enough purpose to get up in the morning. It’s not just about the numbers, it’s about how you’re going to spend your time. Purpose will drive you in retirement, money will fund you. Try not to get those two mixed up.
The bottom line is this… retirement is the biggest transition you’re ever going to make. It’s not the sort of thing you do regularly and not the sort of thing you want to get wrong. By asking yourself these three questions, you’ll improve your chances of achieving a successful retirement.
Byline: James Mackay is a Certified Financial Planner at Frazer James. He has helped hundreds of clients to achieve financial independence and retire with confidence, clarity and purpose.
Many thanks to James (pictured above) for a valuable and thought-provoking post. As a semi-retired 63-year-old myself, I can identify with all of the points he raises.
Actually I think there is a strong case for phasing your retirement if possible, maybe reducing the number of days per week you work initially and/or moving to a less pressured role. This can make retirement feel more like going on an interesting journey rather than driving over a cliff!
I also think there’s a good case for continuing to do some work you enjoy during the early years of retirement at least, to boost your income, provide social interaction, and keep your mental and physical faculties sharp. Of course, voluntary work can do this as well (apart from boosting your income, which may or may not matter to you).
If you have any comments or questions about this article – for me or for James – as always, do feel free to post them below.
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Today I’m sharing some thoughts about the role of property in retirement planning. The post is partly inspired by recent research and insight from retirement planning specialists Just.
In association with Opinium Research, Just surveyed 4,000 adults from all over the UK to discover what they think and feel about property, including their views on owning versus renting, how property affects their attitude to their current and long-term financial plans, whether they thought of their property as a home or an investment, what impact property ownership has across the generations, and more.
When looking at those in their 50s, the research revealed that this age group turned out to be (in some respects anyway) the most pessimistic age group.
Survey Results
The survey threw up some interesting – and in some cases concerning – findings for the 50s age group. Key points arising included the following:
Whilst those in their 50s are building up towards retirement, half (47%) feel unprepared and hit a ‘pessimistic peak’.
Among homeowners who don’t feel prepared – not having enough to retire on (52%) and not having enough to do what they want (45%) is the biggest concern. Ranking these above other concerns such as debt and handing down wealth to their children.
1 in 4 (23%) don’t know how to fund long term goals. And this goes up to almost half of renters (43%), compared to 16% of homeowners
It has become noticeably more difficult to get on the housing ladder – and this affects over a quarter (26%) of people in their 50s, who are still renting.
The impact on retirement is one of the biggest concerns for those now unable to buy, as property remains a core component of household wealth.
Even those on the property ladder are struggling to juggle their priorities and plan for the future.
You can see more information about the survey, and other findings from it, on Just’s My Home My Future website.
My Thoughts
At the age of 63 I am a little older than this age group, but I can definitely relate to these findings, both in respect of my own experiences and those of friends and relatives.
I believe that property should play an important – and arguably essential – role in every person’s retirement plans. And owning your own property puts you in a far stronger financial position than if you are renting.
One obvious reason for this is that your property can be a source of extra money if and when you need it in retirement. This can work in a variety of ways…
If you own your property and have equity in it (i.e. its value its greater than any outstanding mortgage/s) you can release some of this by downsizing. By selling up and moving somewhere smaller and cheaper, you may be able to release a chunk of cash that can be used to fund major purchases and/or invested to provide you with extra income.
If you don’t want to move, you may be able to use equity release to access some of the money tied up in your home. At one time equity release had a slightly dubious reputation due to the risk of going into negative equity, but nearly all lenders now offer a No Negative Equity Guarantee (NNEG) which ensures a borrower can never owe more than the value of their home. Equity release is nowadays a well accepted – and increasingly popular – method for releasing funds tied up in a property. Modern ‘lifetime mortgages’ in particular offer great flexibility for drawing down funds when you need them, with repayment only required when you die or go into long-term care.
Another option for generating income from your home is to rent a room in it. Under the government’s Rent a Room scheme you can charge up to £7,500 a year in rental without having to pay tax on it. This can work well for people in family homes whose children have flown the nest.
Owning a property also presents other opportunities to generate money from it. An example is renting out your driveway or garage, which I discussed a while ago in this blog post.
I am fortunate in that I own my home outright. The mortgage I took out with my late partner Jayne was paid off around ten years ago with the aid of a modest windfall. I also have various pensions and investments.
No-one can see what the future holds, but knowing that I could potentially release a substantial sum from my home if the need arises is obviously reassuring – especially in case in my old age I have to go into long-term care.
The latter is obviously a major concern for many older people. A recent report from Just revealed that 88% of people who have organised long-term care for a family member said they were shocked at how expensive care is, and 75% were surprised by how little financial support the state provides.
Further Thoughts
One thing that struck me particularly in Just’s My Home, My Future survey was the number of middle-aged (and older) people who are still renting, often through necessity rather than choice. Just found that non-homeowners in their 50s tend to be those who haven’t been able to buy their home (43%) rather than those who haven’t chosen to buy (21%).
This is clearly a concern for those affected, and for society generally. These people will be cut off from an important potential source of income in later life. If they have to go into long-term care, much of the (considerable) cost may have to be borne by their family, who may or may not have the means to do so.
A serious discussion needs to take place about how social care in Britain is funded, and specifically the balance between what is paid by the state and by the individual. Government policy in this area has been mired in confusion for years – and with the current political turmoil over Brexit it’s hard to see the situation improving any time soon.
In the meantime, it’s clearly desirable for everyone to get on the property ladder as early as they possibly can, so they are able to build up equity in their home and access the additional cash and income property can provide in later life. Whilst it remains unclear how much any of us will need to contribute to the cost of our own care, having a source of money to fund this if needed is all the more vital.
As always, if you have any comments or questions about this post, please do leave them below. I would especially like to hear your thoughts if you are 50 or over on how you plan to fund your retirement and the role you see for property in this. Check out also the #MyHomeMyFuture hashtag for more about this subject on social media.
For further advice on planning for retirement, I recommend checking out the government’s Pension Wise website, which includes detailed information about pension saving. If you are over 50 you can also book a free telephone or face-to-face appointment with an adviser who will go through the options with you.
Disclosure: This is a sponsored post on behalf of Just Group plc.
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Today I have an eye-opening infographic for you from my friends at Edinburgh IFA about pension mis-selling.
If you watch the TV news, you may be aware that there has been a spate of stories in recent months about pension mis-selling.
In particular, some people have been persuaded to transfer valuable final salary pensions to unsuitable, often high risk, investment schemes, potentially putting their future income and security at risk. Of course, the advisers concerned typically pocket large sums in commission for this.
There is, however, some hope for victims of pension mis-selling, as the government has set up a compensation fund to help them. Here is the infographic with further information.
Thank you to Edinburgh IFA for their detailed and informative infographic.
If you think you (or a friend/relative) may have been mis-sold a pension or badly advised about a pension transfer, then – as the graphic says – you may be eligible for compensation from a £120 million fund set up for this purpose by the government. You can make a claim to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS).
The FSCS only looks at complaints if an organisation has entered liquidation or administration. If – as is more likely – the organisation you wish to complain about is still trading, you will need to apply to the FOS.
You do need to act quickly, as if you are going to complain there is a time limit of six years from when the product was sold to you, or three years from when you noticed that you had been mis-sold – whichever is the later.
If you wish to complain about being mis-sold a pension, the first step is to contact the adviser (or SIPP provider) in question. They are obliged by law to have a complaints procedure and respond within eight weeks. If they don’t respond, or you are unhappy with their response, you can then file a complaint with the FOS. If they agree that you were badly advised, they can award you compensation of up to £150,000. More detailed information about the complaints procedure is available on the Edinburgh IFA website.
If you don’t feel confident going to the Pensions Ombudsman yourself, you can use a claims adviser. Edinburgh IFA say they are happy to put anyone in this position in touch with an independent financial adviser (IFA) in their area who will provide initial advice free and without obligation. Despite the company name, they offer a nationwide service (not just Edinburgh!).
Or if you don’t want to use them, any IFA specialising in pensions should also be able to help you. The website Unbiased.co.uk can locate suitable independent financial advisers in your area for you.
Either way, if you think you have been a victim of pension mis-selling, don’t bury your head in the sand. Compensation may be available if you act now. In any event, it costs nothing to find out more.
As always, if you have any comments or questions about this post, please do leave them below.
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