The LV= State of Retirement Report revealed how Britain’s over-50s have responded to changes to the pension system outlined in the recent Budget.

Only 34% of respondents considered changes to public sector pensions, which now aim to be more in line with private sector pensions, to be reasonable. Just 32% of over-50s described the introduction of a flat-rate state pension for all and the abolition of pension credits as ‘fair’.

Nearly a quarter of those surveyed (24%) support the idea of auto-enrolment into workplace pensions, while a further 24% think that the rise in the retirement age (67 for men and women by 2028, and 68 by 2046) is justified.

Just 8% of retirees over 50 are in favour of the idea of a “Granny Tax”, which will freeze age-related allowances, increasing pensioner’s financial burdens.

Overall, three out of ten Brits aged over 50 think that the changes in legislation are unfair amid the current economic crisis.

“Unsurprisingly, very few are supportive of the Government’s reforms or think they are fair – particularly when it comes to the freeze in age-related allowances and the rise in retirement age,” said Ray Chinn, LV= Head of Pensions.

Lowering expectations

Changes to the pension system are already making many over-50s change their expectations for their retirement. 29% of those surveyed admitted that they expect to retire later; although 12% like the idea of working beyond the age of 65.

To further add to pensioner’s woes, 30% of respondents said that their finances were being squeezed due to their family members asking them for financial support in the last 12 months. Cash-strapped Brits should remember that turning to a payday advance could help to solve money-related problems.

MoneySupermarket.com has revealed that shopping around for cheaper products is the last resort for many Brits who are struggling to manage their finances.

38% of consumers take money from their savings when they need extra income, while 29% rely on their authorised overdraft when running out of money. A quarter of Brits simply turn to their credit card to fund their needs and two in ten ask their friends or family to help them out.

In addition, 11% of Brits turn to sameday loans when having money problems and a further 4% choose to extend their overdraft limit.

APR 

The research also looked at the consequences of this trend and found that the interest paid on credit can take a huge toll on consumer’s finances. 

Using the authorised overdraft at Halifax, for instance, would represent paying £4 in a month or £48 in a year interest costs alone. This same amount increases to £300 if the debt is left for 30 days. 

The situation is even worse for credit cards, with the average interest rate standing at 17.31%. MoneySupermarket.com has calculated that people spending up to £500 on their credit cards and repaying only the minimum will face an interest of £6.70 per month or £75.46 per year. 

Kevin Mountford, head of banking at MoneySupermarket.com, gave Brits some advice on how to tackle this issue:

“For those who are continually struggling to stay out of the red before pay day each month, I would advise spending a few minutes to check through all outgoings, in order to work out where savings can be made. Reviewing your personal finances to see where savings can be made can help you release vital cash which can help alleviate the financial pressure.”

Iain Duncan Smith, the UK’s work and pension’s secretary, has stated that mothers and carers who stayed at home instead of going to work would receive a flat-rate payment from 2015. Through this reform, this group will receive at least £140 a week, an amount that will benefit them by an average of £2,000 a year.

At present, those Brits who haven’t worked for at least 30 full years receive a reduced pension entitlement for each year out of employment.

Mr Duncan Smith argued that the current pension system acted as a major disincentive to saving: “It penalises women, just for doing the most important thing in the world, which is to make sure that their families [are cared for].”

Speaking to The Telegraph, Mr Duncan Smith added: “This is hugely beneficial for women who have a broken record of employment. The really critical point is right now they don’t get recognised in the system. But under this system they could build up full points.”

With this new reform in place, the UK’s work and pension’s secretary said that “caring in itself will carry, for the first time ever, a value.”

Providing affordable care

This overhaul in the UK’s current retirement system could improve the financial situations of thousands of pensioners who are struggling to afford care costs.

With carers obtaining financial compensation once they hit retirement age from 2015, many would happily choose to spend their time taking care of their family.

A recent study published by the Partnership Care Index showed that more than four in ten retirees confess that they will need to fund their care costs by renting or selling their property.

The majority of respondents (51%) in the survey believe they will turn to the state to fund their care expenses, while 45% will rely on their pension income. A further 35% of Brits over 45 say they will use their savings to fund their care needs. Payday advances could also help to pay for care costs.

Waiting to buy a home in which to bring up children is the main reason why 47% of Brits don’t go ahead with their family plans. The second deterrent is that women literally can’t afford to go on maternity leave, and the third is that couples are hoping to increase their savings pot before the birth of their first child – £4,867 on average.

The next three reasons are all related to money. These include, in order, the rising cost of utilities, petrol and unaffordable childcare.

Tracy Fletcher from Skipton Building Society commented on the long-term impact of this delay:

“The knock-on effect of having children later in life is that people aren’t able to relax and enjoy the retirement years because they are still committed to raising their children.”

“The likelihood is that this is an added reason why many people of this generation won’t be able to retire as early as they’d like because they’ll still be forking out hundreds of pounds on child care, education, house deposits and other handouts.”

Struggling parents

In addition, the study showed that even those Brits who are already parents are restraining themselves from expanding their family. Seven out of ten parents said that their plans to have more children were set back by financial restraints.

While six in ten parents are already saving up to have another child, the same amount stated that the economic crisis has removed the possibility of having another child in the near future.

Further reasons cited include job insecurity, wanting to get married first, soaring food prices and mortgage payments going up. With money playing such an important role in the life plans of British couples, same day payday loans could help them pay for everyday living expenses when a new baby arrives.

Having a certain amount of money set aside is a great way to give Brits peace of mind. Amid the current recession, having a financial safety net in place is essential.

However, a recent study by investment specialist Skandia has showed that the minimum amount of savings that British people need to feel at ease is increasing.

Back in 2010, 82% said they would be happy having £1,000-£5,000 in savings, yet this figure dropped to 64% this year. Similarly, 88% of Brits felt secure with £5,000-£10,000 saved, but ‘only’ 74% feel this way now. 

Not even savings of £10,000-£20,000 can satisfy everyone. While 92% of Brits were happy with this amount of savings in 2010, this figure has now fallen to 83%. 

Income and happiness 

Despite Brits becoming more demanding when it comes to their savings, they have proved to be easily satisfied when it comes to income levels. 

62% of respondents confessed they would be “really happy” with an annual income of £50,000 or less, while more than a quarter stated that less than £25,000 would be enough to make them feel financially secure. 

Graham Bentley, Skandia UK’s head of investment proposition, commented on these findings: 

“The rise in the cost of living, uncertainty with the economic climate and talk of recession is clearly making people wish they had a larger nest egg than they might have considered necessary before. However, the amount of annual income they need to make them happy is surprisingly modest, possibly because rising unemployment is making them put more value in having a job that provides predictable income.” 

Finally, the study also published figures regarding Brits’ level of debt. 41% of Brits are facing credit card debt, with the general trend being that younger Brits are less likely to turn to this sort of credit – only 16% owe money on credit cards. In addition, 33% of 45-54 year olds and 32% of the 35-44 year olds are more likely to rely on same day loans.

More than half of UK women (56%) make efforts to maximise the financial benefits of their loyalty cards, whereas only 37% of men do so. This is the key finding from Standard Life’s ‘Financial Efficiency’ research.

Since the use of loyalty cards has increased by 11% among UK consumers since 2009, figures from the report show that those aged between 35 and 44 years make up the largest share of loyalty card users (50%).

The percentage of the younger generation of Brits using loyalty cards, aged between 18 to 34, is smaller in comparison. However, loyalty card usage for this group has actually climbed over the last three years. While 27% confessed to using loyalty cards in 2009, up to 42% currently admit to taking advantage of this resource.

“Since the launch of store loyalty cards in the 1990s, they have become one of the most accepted ways of trying to save while spending. What’s interesting is that while women are more likely than men to make good use of loyalty schemes to save money, neither are as savvy when it comes to the money they save,” commented Julie Russell from Standard Life.

Women are savvier shoppers 

Women have also outperformed men in another financial arena. Confused.com revealed recently just why British females are better shoppers than men. 

Figures found that nearly a half of women (48%) shop around, before making their final decision when shopping; this percentage is double that of the figure for men (24%). Consequently, men end up paying more for the same services in comparison to female shoppers. 

Loyalty cards are a good way of saving money and improving your financial situation. If you need urgent cash, then it is important to rely on other resources such as quick payday loans. Find out more about payday UK.

The report published by PruHealth has compared figures on the healthy habits of Brits from 2008 to 2012.

During the last four years, 75% of UK consumers have changed their eating and shopping habits, while up to 85% have confessed that the soaring cost of food has pushed them into making unhealthy food choices. Overall, 52% of Brits stated that their health has suffered as a consequence of the current recession. 

16% focus on ‘reduce to clear’ products during their visit to the supermarket, while 11% admitted to sticking to food that is on special offer. 

Almost six out of ten find it challenging to reach their ‘five a day’- yet this percentage accounted for 47% of people in 2008. As a result, more Brits (24%) are currently taking vitamin supplements to ensure they get the right mix of nutrients. 

Shopping habits among the recession 

The research has also highlighted the top behavioural changes that cash-strapped Brits have undertaken since 2008.

34% are cutting down on luxury food items, 22% are buying store-brand foods, while a further 22% are simply cutting down on their overall expenditure. 16% of Brits now shop in the ‘reduced to clear’ section, and a further 16% of UK consumers have cut down the amount of meat they purchase in an effort to reduce costs.

Dr Dawn Richards, Head of Clinical Service at PruHealth, commented on these trends: “People are only too well aware of the need to eat healthily, but financial constraints are making it difficult, resulting in people’s health being negatively affected.”

The recession, however, should not be a reason to damage your health. Same day loans might be a good way of boosting your food budget, and providing for the dietary needs of your family.

Taking the figures from the first quarter of 2012, the number of insolvent Brits rose by 4.7% if compared with the same period in 2011.

In only three months – from January to March 2012 – up to 9,132 Brits declared bankruptcy – this is more than the previous quarter but 27% less than in 2011.

Despite this improvement on last year’s figures, debt charities warn of the severity of the situation. As a leading money advice charity pointed out, some Brits are so in debt that they can’t even afford bankruptcy fees.

“Talking to people who call National Debtline leads us to believe that many people simply can’t afford the £700 it costs to go bankrupt (£525 for the deposit, plus £175 for the court fee), even though that would otherwise be their best option, leaving them in a financial black hole,” said Joanna Elson, chief executive of the charity Money Advice Trust.

Elson stressed that this reality is only the tip of the iceberg when it comes to the scale of debt problems faced by households across the UK.

Less financial security

In comparison to 2009-2010 figures, the Oxfam report found that people’s financial security dropped by 43%, the number of people who felt they had secure and suitable jobs fell by 26% and the amount of Scots who felt they had enough to live on also was reduced by almost a quarter (24%). 

Elson added: “Survey data suggests around 10 million individuals in the UK (around 20% of the adult population) find themselves in a constant struggle to manage their debts. Beyond that an estimated 2.5 million individuals in the UK are in arrears on at least one consumer credit product, household bill or payment.”

Payday loans could help households ease their financial anxieties through a particularly difficult financial period.

After conducting 1023 online interviews with consumers aged over 45, the Partnership Care Index unveiled the most common methods of paying for long-term care. 

The majority of respondents (51%) believe they will turn to the state to fund their care expenses, while 45% will rely on their pension income. A further 35% of Brits over 45 say they will use their savings to fund their care needs. 

Aside from these three popular methods, collateral from a property is also commonly used to fund long-term care. 31% of Brits plan to sell their homes while 10% would consider renting it. 

A further quarter of respondents (24%) will turn to their income from savings & investments to fund care.

Chris Horlick, Managing Director of Care, Partnership, commented on the results of this research: 

“Despite the downturn in the property market, the realisation that property is likely to be a key source of funding for any care costs is becoming more widespread. Estimates suggest that over 65s have unmortgaged equity of nearly one trillion pounds.” 

Financial challenges of today’s retirees 

According to a recent report by the Pensions Policy Institute (PPI), due to a longer life expectancy and a shortage of income sources, Brits over 50 will need to work much longer in order to enjoy an adequate retirement income. 

Figures pointed out that up to 58% of Brits aged over 50 were working in 2011. In addition, the research revealed that as long this group continues working until their retirement age, they will probably enjoy £11,000 per annum, which is deemed a ‘minimum acceptable standard of living’ in retirement. 

Same day loans might be a good way of obtaining extra cash when rising living costs don’t allow you to fully enjoy your retirement.

The new 2012 HSBC Home Improvement Survey has compiled a list of the top home improvements that will lead homeowners to sell a property, as well as the most common misconceptions among householders. 

While homeowners tend to improve their homes by making them more aesthetically pleasing, property valuers have other more practical priorities. 

Up to 69% of homeowners believe that cleaning their windows in and out will be noted by future buyers, yet only 44% of experts share this belief. In addition, 41% think that keeping rubbish bins in instead of out will help to sell their house although, again, only three out of ten experts think this will make a difference. 

Other selling tricks homeowners rely on include washing the car if it’s in driveway (17% homeowners against only 4% of experts) and buying fresh flowers to spruce up their interior, with 38% of homeowners thinking that this will increase the chances of securing a sale against 7% of experts. 

Top home improvement for experts 

In contrast, the top home alteration that experts think would make a real difference for the property sale is de-cluttering the house, with 93% of experts believing this against 71% of homeowners. 

Further relevant improvements for experts include repairing paint chips or wall paper (75% experts against 56% homeowners), cutting grass and trim flower beds (71% against 66%), repairing fences and gates (64% against 44%) and repainting the front door (63% against 23%). 

“Many householders spend the Bank Holidays on DIY projects to help boost property value and saleability. However it is often the smaller jobs like painting the front door that can make all the difference when looking for a quick sale,” said Peter Dockar, Head of Mortgages at HSBC. 

If your financial situation doesn’t allow you to improve your house ready for sale, payday loans could help. Find out more about payday UK.

As the new Prudential’s Class of 2012 study has revealed, up to 40% of UK Brits over 65 years old would like to continue working, even if they are older than the official retirement age. Divided by genders, this trend accounts for 48% of men and 32% of women.

Among those Britons who want to keep working past their retirement age, 65% said they have this desire because working keeps them physically healthy and mentally active. 39% just can’t bear the idea of being retired yet and more than a half of respondents (54%) said they simply enjoy their job.

Slowing down the work rhythm

Even though the majority of retirees said they want to keep on working, most pensioners would like to reduce their working hours.

While only 13% of respondents said they want to keep working full-time after retiring, almost half of them (49%) said they would rather work part time.

Further preferences among working retirees include 11% of entrepreneurial Brits looking to start their own business once they are over 65, and a small 5% opting to volunteer in a charity.

Vince Smith-Hughes, retirement expert at Prudential, commented on the results of this research:

“Gradual retirement is an increasing trend among pensioners, whether this means remaining in the same job on a flexible basis or even setting up their own business! Those retiring at 65 will face an average of nineteen years in retirement which makes the financial and social benefits of working for longer an even bigger draw for a new generation of industrious retirees.”

Considering the current state pension, many UK pensioners choose to stay in work to help them pay for their living expenses. In such cases, sameday loans could also help when having money problems.

• Retiring soon? Here is what you need to know 
• How to save money in the form of pension tax

American Express Platinum Cashback Credit Card has looked at the ways in which UK married couples celebrate their wedding anniversary. Its research revealed that only a few couples still mark their anniversaries with a special event.

Out of all married couples in the UK, only 37% celebrate their anniversary every year. In addition, 28% of couples keep their anniversary date in mind but do not celebrate it with gifts or dinners.

The rest of the married population fail to pay much attention to their wedding anniversary, with 17% of couples only celebrating “big” anniversary dates, such as their first, silver, or gold; and a further 18% never celebrating it.

Payday loans for weddings

The cost of wedding anniversary celebrations is probably the main reason keeping Brits from spoiling themselves on their special day.

Figures reveal that couples spend up to 37% of their monthly salary on wedding celebrations. Since only three in ten (31%) save specifically for this purpose, the majority of couples are forced to fund their ‘special occasion’ with credit cards. Same day loans might be a good way of obtaining extra cash to celebrate your wedding anniversary in style.

Interestingly enough, men are more generous than women when it comes to wedding anniversaries. While 42% of them surprise their partners with a gift, only 28% of women do so. Husbands are also happy to spend more than their wives, with average figures being £85 against £62. 

Celebrating a wedded union, however, is putting Britons in the red. The research points out that a quarter of couples are still paying off their wedding costs three years after getting married. 

Even couples planning to get married soon are being affected by the financial crisis. Three in ten couple admit the recession is having a negative impact on their finances, while 18% people said lower earnings will affect their wedding budget.