Although it isn’t due to be introduced until 2016, the flat rate state pension is a major shake up of the retirement benefits system and will have an impact on anyone retiring after that time. It’s therefore important to understand what it means and to carry out a pension review accordingly.

If you’ll be retiring before April 2016 then the changes won’t affect you and you’ll be paid a state pension under the current system. Currently this is £107.45 a week for the basic pension or £142.70 if you get the additional pension based on National Insurance contributions or you get pension credit.

Retirement After April 2016

If you reach state pension age after April 2016 then you’ll receive the flat rate pension rather than the existing one. This involves some major changes as follows:

1. You’ll need to have made National Insurance contributions for at least ten years to qualify for a pension (currently it’s only one year) and this will only get you £41 a week.

2. To get the full state pension you’ll need to make 35 years’ worth of NI contributions (currently you only need 30 years).

3. With 35 years’ NI contributions you’ll receive £144 a week at today’s values. Since state pensions are adjusted for inflation this is likely to be more when the policy comes into effect. The new pension will be adjusted in line with the CPI index or 2.5% each year, whichever is higher.

4. The second state pension, pension credit and other top-up schemes will cease. However, if you’ve already built up an entitlement to a higher pension through second pension or SERPS contributions before 2016 this will be protected but you won’t be able to add to it.

5. You’ll be able to take time out to raise a family and still build up state pension qualifying years, which isn’t currently the case.

6. Eligibility for a pension will be on an individual basis, so married couples will each get their own pension rather than the married couple’s rate that’s paid at present. The other side of this is that a widow without enough qualifying years for a full pension will no longer get a portion of her husband’s pension after he dies.

7. If you’re still in a final salary pension scheme with an employer you’ll end up paying more in NI contributions as the contracting out option will no longer be available.

8. The state pension age will be reviewed every five years starting in 2016. It’s currently planned to increase it to 66 in 2020 and 67 in 2028.

Additional Pensions

Because the changes mean the end of the second state pension if you need to increase your income in retirement you’ll need to look at other means. These changes overlap with the government’s plan to have all employees enrolled in a workplace pension scheme which will give them an additional means of saving for retirement.

Low earners and the self-employed, who may in the past have found it hard to build up enough contributions for a full state pension, will benefit most from these changes.

If you’re on a higher income want to save more for your pension then you’ll need to look at other alternatives outside of National insurance such as starting a private pension plan or a SIPP. If you’re in a pension scheme with an employer you could also look at making additional voluntary contributions (AVCs) to boost the value of your pension pot.

Kay Brown is a writer who has a keen interest in personal finance. With the imminent changes to pensions, she suggests conducting a pension review so that you know the impact that the flat rate pension will have on your retirement.

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Being energy efficient is not only an environmentally conscious decision, it’s an economical one as well. With the cost of living continually on the rise and energy costs projected to increase throughout the years to come, watching home energy consumption is quickly becoming a high priority. If you are looking for ways to cut down on your next bill, check out these 5 top tips to save money on home energy costs.

Helpful Habits

The first step to making a significant saving on your energy bill is to change the way you use power in your home. Make it a strict household policy to turn off any lights that aren’t needed, switch off appliances after use and to check all power points are off before leaving the house. With a bit of planning, you can make a difference to your energy costs simply by being more conscientious.

Solar Savings

When it comes to cutting home energy costs, solar power is undoubtedly one of the best long term investments you can make. Thanks to recent Government rebates, many homes are now equipped with the latest in solar technology, and the results are impressive. Harnessing the natural energy of the sun slices your power bill while making a significant positive environmental change.

Energy Efficient Fittings

There are a range of small changes you can make to your home to ensure the best energy efficiency. Try equipping all of your light fittings with specially designed energy saving bulbs for brighter illumination and over half the usage of traditional bulbs. Another great way to cut energy costs is to install timer plugs which only switch on when you need them to. Simply program the set times into the switch, and it will only use energy during these specific times.

Smart Appliances

When it comes time to replace your old appliances, make sure you look for new models which display high energy efficiency ratings. Everything from your washing machine and dryer to fridge and dishwasher can all make a significant difference when they are designed to use energy sparingly and effectively. You’d be surprised just how much of a saving smart appliances can make to your long term energy costs.

Getting Out of Trouble

Sometimes despite all of your best efforts, you might find yourself hit with an exorbitant energy bill that is just too much to pay. Your first step should be to consult your energy provider to try and work through a payment plan that will allow you to make regular repayments until the amount is paid in full. However if this approach is not successful, or if you have already fallen behind in your payments, it’s time to enlist professional help.

Fox Symes debt solutions are one of the leading providers of advice and support to Australians that are struggling with debt. They will not only help you to get back on track, but they can also negotiate with your creditors on your behalf. Don’t let the stress of an unpaid energy bill turn into a seriously damaging debt problem.

With these top tips, you can be well on your way to cutting your energy costs and living a more economical and environmentally friendly lifestyle.

Sharon has recently been looking for ways to get her finances under control by saving energy around the home. She also enlisted the help of Fox Symes debt solutions in order to get on top of her finances and recommends that other people looking to save money to do the same. 

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When retailers want to increase online sales, they will sometimes pay a commission to other websites which direct potential customers to their cyber store through a link. However, you can take advantage of this reward by using cashback websites.

Rather than keeping all of the profit, these sites give some of the proceeds to you, meaning you can save huge sums on digital purchases. Therefore, you should check whether you can click through to a company on a cashback site before going direct.

How can you save money?

Normally, you will receive a certain commission on each transaction you make. For example, you can currently receive 3.03 per cent cashback from the Debenhams website by using the link provided on Topcashback.co.uk.

However, you will sometimes be able to take advantage of lump sums. These are often provided if you sign up to a subscription service. npower is currently offering up to £100 cashback to new customers who sign up through Quidco.com.

Receive cashback on the essentials

You can get money back every time you spend on essentials, such as groceries, by becoming a member of a cashback website. Most supermarkets offer £5 to £10 to customers who order their first online shop.

However, you can also take advantage of cheaper groceries by going to your local store. Quidco’s ClickSnap has a range of different offers, such as 40 pence cashback on eggs, which you can claim by sending in a picture of your receipt.

Save money on financial products

If you’re on a debt management plan, it’s likely that you are looking to apply for a new bank account or switch your home insurance provider. Cashback websites can support these types of money-saving exploits further by allowing you to claim commission when you sign up.

However, make sure that the financial product is right for you before applying, and always calculate the overall cost so you can compare properly. Sometimes, it might work out cheaper to go with a company that offers a smaller cashback reward.

Get your hands on gadgets for less

Cashback websites often have fantastic deals on the latest gadgets, meaning that you can treat yourself or buy gifts for others for less. Since these items tend to be expensive, even a small commission can amount to big savings.

Special deals are often available on new mobile phone contracts – Tesco is currently offering up to £50.50 back on the Apple iPhone 5 through Topcashback. However, you can receive rewards on almost any item or service, from photograph prints to flat-screen televisions.

Enjoying days out on a budget

Research from Family Action shows that 44 per cent of British parents cannot afford to throw their child a birthday party. However, a larger proportion might be able to celebrate the special occasion without breaking the bank by taking advantage of cashback websites.

As a mum or dad, it might fill you with dread when your little one asks to go to the theme park or the cinema for their birthday, but just a few clicks on your computer could mean that the dent in your bank balance is less noticeable.

Families who visited attractions during the recent Easter holidays saved £35,000 on tickets through Quidco, so no matter what the event, accessing these websites before planning a day out can be extremely beneficial.

No purchase offers

You could profit from your cashback exploits, as long as you’re careful to read all of the associated terms and conditions. Getting cashback doesn’t always mean an initial outlay – sometimes making money is as simple as clicking a link.

On Topcashback, you can earn £1.51 for a car insurance quote application, secure 70 pence for filling in a survey, or receive £15.15 for signing up for a free LOVEFiLM trial. Look under the ‘Free Cashback’ section of the website for more deals.

If you download the Quidco mobile phone application, you can earn a few pence just for ‘checking in’ at nearby retailers using the GPS system. This money can soon stack up if you’re strolling down the high street.

Are cashback websites right for you?

Cashback websites are normally free to use, and they offer you discounts or commission on everything from loaves of bread and electricity bills to airline tickets and car tyres. It could therefore help you to save money in a wide range of areas.

However, you should always be cautious. You should still shop around, since you might not always get the biggest savings from a cashback site, and decide which deal is the best for you by calculating overall costs of a product or service.

Stef has worked through a debt solution plan with the help of Debt Free Direct, she now writes articles on money saving tips and advice to help people avoid getting into debt; or save money to pay off their existing debt.

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It is an interesting question really; do you think that you could do it? Putting a price on love is impossible, the perfect relationship is priceless. However, how much does it cost to be in a relationship?

There are many people that will have never have thought about this before. They will; not have considered that a relationship will cost any money at all, but in fact research has been done to show that it can cost a lot. Rate Supermarket looked at the cost of dates, holidays, engagement and wedding over a two year period and calculated that on average the total would be over $43,000.

This may seem like a lot of money and you may wonder whether it is actually worth it, with trying to keep another person happy and no guarantee that will end happily. However, kidding aside, it just shows how important it is to put away money from a young age. If you have to pay this out just for two years of a relationship, imagine what life will cost once there are children to support and a home to pay for. It is therefore worth thinking about getting some savings together really early.

If you want to be able to afford a mortgage or even just rent a really nice property, then you will need significantly more money than this. Therefore you will need to start saving up.

It can be difficult saving. Especially if you do not know what sort of future is ahead of you. However, there is a secure feeling in knowing that you have some money put away. Whether you will use it on a relationship or other things in the future does not really matter. Just knowing that it is there can really give you a good feeling. It can give peace of mind and then if you do have a bill or emergency where you need money. It will be there to help you. When you do start a relationship, then you can treat your partner to some really nice things or you can continue to save and get some things in the future. Obviously what you do with it, is up to you but unless you have it in the first place, you will not need to be making this decision.

Financial planning can sound like something that pensioners need to do, but actually the earlier we can get in to good spending and saving habits, the better. We will be much better off in the future if we can get used to be financially clever when we are younger and knowing the best way to handle our money. Then we will know how to use it to our best advantage when we are older and will be more likely to have more of it, when it comes to having to pay for the important things in life such as mortgages, weddings and children. It can seem a daunting prospect but learning financial lessons young can save a lot of hassle when you are older.

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There’s no shortage of personal finance information on the Internet. You’ve probably lost count of how many times you’ve read that it’s important to save money every month. While that sounds great in theory, when you have a cloud of debt hanging over you, focusing on saving becomes even harder.

Regardless of how good your intentions are, it’s hard to convince yourself that funneling money into your savings account is the best course of action when you’re receiving daily phone calls about payments that are past due.

Since this is a dilemma that millions of Americans face, you’re not alone in wondering how you should deal with it. And as you may have guessed, there’s not just one answer to this question. Instead, it really does depend on your individual situation. To decide which option is right for you, there are several factors that you need to take into account:

Rainy Day Fund

While it’s obviously important to think about the future and take steps to help secure your retirement, in terms of what currently matters most for you and your family, that would be having a sufficient rainy day fund. Also commonly referred to as an emergency fund, the reason having one is so important is you simply never know when a significant expense may come up. Although you can plan and project your budget all the way down to the penny, if an emergency situation arises, the last thing you want is for it to also be a financial catastrophe.

Given the importance of this fund, if you don’t have one yet or it’s not even close to the amount you actually need, it’s worth focusing on this type of saving before you begin dealing with getting rid of your debt.

The Real Cost of Your Debt

One important calculation to make is comparing the true cost of your debt to how much you can earn from saving. As an example, let’s say you have $8,000 in credit card debt with 9% interest. By multiplying the two, you can see that specific debt is costing you $720 a year. Then once you decide how much you either want to pay off or put in savings, you can calculate the savings yield you’ll receive and then determine which option will put you in a more favorable position.

Your Short-Term Financial Goals

The other factor you need to take into account is what your priorities are in the short-term. If you’re doing something like starting a business, it makes sense to prioritize saving so you’ll have the funds necessary to get your venture off the ground.

As previously mentioned, although there’s not a definitive answer to this question, you now have all the information you need to make the right decision for your specific situation.

James Freemont is a freelance writer who blogs about income tax planning and financial advice.

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