Tax and Pension Related Challenges for UK Seniors

Tax code and general finance considerations become increasingly complicated as a person gets on in age. If you are over the age of 50 and approaching the age of retirement, make sure that you are aware of the following pitfalls and points of confusion faced by ageing citizens in the UK: 

Misunderstanding how pensions are taxed

You spend your whole life paying taxes on your income. Unfortunately, once you retire, this trend continues. However, the amount of tax that you owe on a pension depends on several factors, and it is easy to get confused regarding how much you owe – or even if you owe at all.

As an example, state pensions in the UK are not taxed below a certain level. You can read up on the specifics on how pensions are taxed on the HM Revenue & Customs website. However, the best way to proceed is to contact an accountant and have them assess your situation. Doing so ensures that you stay on the right side of the law without having to pay any more than is absolutely required. After all, every bit of savings counts when dealing with a fixed income. 

Finding the Right Forms

This is a problem that taxpayers of any age bracket can face. It is certainly not exclusive to seniors. The way in which tax forms are organised and prescribed is complicated to begin with, and anyone without a background in accounting or tax code law could be forgiven for being confused.

The problem is that filing an incorrect form can completely derail the tax return process. You may end up paying more (or less) than required. Likewise, filing an incorrect form could end up invalidating the entire return, subjecting you to further headaches (at minimum) or even fees.

Missing out on special credits and benefits

Every year, upwards of £5.5 billion in tax credits intended specifically for the elderly go unclaimed in the UK. These funds are made freely available by the government. However, the fact that their would-be recipients are unaware of them means that ultimately go unused.

These are a few common benefits that are often overlooked:

• Housing Benefit: This benefit is intended to help elderly persons pay for housing if they rent rather than own.
• Pension Credit: This benefit tops up your income to a guaranteed minimum level; roughly one in three eligible people fail to claim their pension credit. 
• Council Tax Benefit: This specifically applies to those who have disabilities or require special care.

Again, failure to understand what types of benefits are available to you could actually be costing you money in the long-run. With that in mind, seeking the services of a chartered accountant or financial advisor could actually end up earning you more money than you spent on the services to begin with. 

Mishandling your annuity

There have been a number of changes and revisions to the way annuities are handled in the UK. What many ageing Britons do not realise is that they are actually able to choose which firm they purchase the annuity through. Many are unaware that they can purchase an annuity from a firm aside from the one they have charged with taking care of their investments.

While it is refreshing to have more freedom and control over your financial future, this also exposes us to greater risk. Most importantly, long-term financial planning is not something that you want to attend to yourself if you do not have a background in finance. A single misstep could set you on track for financial ruin further down the road. With that in mind, consult the experts before you prematurely draw on an annuity. 

Counting on your pension before you qualify

Those who are nearing the age at which they qualify to draw a pension are likely to start making changes to the way they structure their budget, finances and assets. The problem here is that the government is constantly revising up the age at which a person qualifies. While new regulations are usually announced well before they are implemented, it is still possible that a person could end up banking on a monthly stipend that’s actually not even available to them for a few more years. Make sure that you know how the law applies to you before you make any major financial decisions.

Author: Kristen Rodrigues is a writer working on a freelance basis for Brebners, a company found in London and Kent that believes that they can help any business with their tax and accountancy matters.

Premium Dog Insurance Policy Types and Benefits

English: Little Bear, the 2009 Pet Mayor of Montclair (Photo credit: Wikipedia)

If you’re in love with your pet dog, then it’s natural for you to be concerned about its health. You’ll try to make sure that your pet remains in good health regardless of whether it is a matured dog, a young adult or a pup. However, health challenges may surface all of a sudden and you ought to prepare for it in advance. Make sure you pick a premium dog insurance policy without wasting time!

Check out policies that charge lower premiums and yield maximum coverage:

Life Time Insurance Protection

Your dog is bound to enjoy huge benefits with a life time coverage policy. These types of policies are usually more expensive than the other types of policies. On-going sicknesses may result from health challenges that your pet faces every year. A life time cover protects your dog from such challenges; a majority of your veterinary costs are saved once you enroll your pet for such coverage. Even when it charges a higher amount out-of-pocket, it proves to be a great policy in the end. For those that are really concerned about the health of their pets, it’s actually a great thing.

The Condition Based Protection

This kind of protection is meant to cover the specific health conditions of your dog. As the name suggests, this coverage is based on health conditions and don’t bear any limitations concerning time. Till the time you attain the monetary limit, you may claim as many times you wish to for the same health condition. However, a few insurance providers don’t cover specific dog breeds or follow restrictions on them.

The Annual Cover

When it comes to dog insurance, the annual cover is considered amongst the inexpensive forms of coverage. Once the policy matures, only then you’ll be able to claim the monthly premium. The reason why these types of policies appear cheaper is that they offer a much low claim amount. The fact that all dog health claims made during unforeseen situations are met, proves how beneficial the yearly coverage is in reality.

You must remember the following irrespective of the dog insurance policy you choose. In your attempt to identifying the best insurance policy, you must compare between all policies and opt for a notable insurance provider. The internet is likely to show you through a number of dog insurance policies. These policies will catch your attention with a variety of features, discounts and other offers. This confusion can only be resolved when you opt for a trusted online brand. Saving more on your dog insurance premiums is only possible when you see some quality discounts and offers. Choosing the right policy for your pet gets easier when you visit a policy comparison site; it helps you to take an informed decision.

6 Things You Might Not Think To Save Up For As You Get Up There In Years

There are numerous things you can do in preparation for your later years. Here are some important steps you should take as you approach your senior years in life. Here are five things you’ll be glad you saved up for when you start to get older.

Higher emergency fund

An emergency fund for someone in their 20s is much more for someone approaching retirement. Health care becomes more expensive as do common household repairs. Boosting your emergency funds to a higher level may be a good idea as you access your legal, health and homeownership needs.

Medical costs

Medical costs are additional expenses you must consider in aging. Many mistakenly believe that all of their insurance policies will cover care as they approach their later years. With the average life expectancy increasing, one has to be assured that there are ample funds to cover hospitalization, coinsurance and long term care if needed. This will prevent you from putting an unnecessary burden on your loved ones as you get older. People who had Medicare paid $38,688 for care during the last five years of their life, the National Institute on Aging suggests.

Dental Costs

After decades of chewing, drinking, maybe even smoking etc… your teeth are bound to get a little worn down. Some more than others obviously, but the proper care as far as brushing and flossing are always a good idea. Even with the proper care though, dental costs could add up in hurry if you’re frequenting the tooth doctor. Some of these costs could be as simple as a co-pay if you have dental coverage for a simple cleaning. Sometimes though, as you get older, getting more than a simple teeth cleaning done can become common. Dr. Peter Wong does dentures up in Surrey in Canada. More often than not, dentures end up being for those who are getting up there in years. Saving up for stuff like this when you’re younger is good idea. 

Downsizing

Homeownership is something many people don’t consider. When the children leave the home, the retired couple may want to downsize. This may mean taking out another mortgage on the home. Since the home should ideally be paid off prior to retirement, once should plan for closing costs, remodeling, moving and other expenses most often associated with moving into a newer, smaller home. This can be especially important if a person is planning to take out a 15-year mortgage. 

Catch-up contributions

Catch-up contributions give people over 50 the opportunity to catch up on their retirement. If a person reaches the age of 50, one can contribute thousands more over the annual limit. As of 2012, that amount is $22,500. This is good if a person decides that they want to retire a few years earlier or if circumstances happened when they were younger preventing them from saving on a certain level.

Long term care insurance

Long term care insurance is beneficial for those who may end up in a nursing home. Many families are surprised to learn that Medicare doesn’t actually cover the cost of long-term care. Medicaid also has its share of constraints. It cannot be used until the savings are practically depleted. When a person reaches their early sixties, long term care planning is recommended.

Here are five things you should save up for as you get older. Doing these things will prepare you and your family for life’s challenges as you get older. It’s never too late to start thinking ahead about retirement.

4 Tips to Keep Your Premiums Down and Keep You On the Road Through Your Golden Years

Just because you are getting older does not mean that you have to give up the freedom of driving. That being said, there are some important tips that you should keep in mind. As you get older, if you’re prone to getting in accidents, or are not aware of the rules and regulations out of on the road, your insurance premiums are bound to increase. These tips will keep not only you and others safe, but will end up saving you money in the long run through having lower insurance premiums. 

Being Physically Active

Nothing is better for you as you get older than being physically active. Believe it or not, staying physically active keeps you healthy and helps you drive safely. This is because physical activities help improve your flexibility and strength, making it easier for you to look over your shoulder and steer the wheel. It can also keep you more alert. Let's face it, driving requires a lot more than just sitting there. You need to be able to move and be flexible to check your blind spots and to park safely. Walking is a great activity to keep you active. You should also stretch your muscles, particularly the muscles that you use while driving.

Vision and Hearing Tests

Two important senses that you need when driving are vision and hearing, but these senses tend to diminish with age. This is why it's so important that you stay up to date on all of your hearing and vision tests. Vision is important because you have to be able to see what you are doing when you are on the road. Having poor vision can also affect your ability to drive at night. Hearing is just as important because drivers with hearing problems are unable to hear approaching trains or even emergency vehicles.

Taking a Driving Course

One of the best ways to keep your driving skills sharp is to take a driving course. Taking a driving course for seniors is a fantastic way to keep your skills fresh and learn new ways to help reduce the risk of getting into an accident. Many of these courses are offered in both a classroom and online. North Shore Driving School Ltd has a more of a classroom or live format up in Burnaby in Canada. There are lots of options to choose from. This makes it easy to find a course that fits your schedule. These types of courses will cover everything from how to use the latest technology in vehicles properly to the most common causes of crashes in which seniors are involved. Sometimes seniors can even receive insurance discounts for taking these kinds of courses.

Drive Under the Best Conditions

You can dramatically increase your driving safety if you drive under the best conditions. This includes driving only in good weather, which doesn't include rain. You should also avoid driving when visibility is not clear, which could mean not driving at night if you have problems seeing.

Following these few simple tips can keep you safe on the road. Remember that it's not just your life you are trying to protect; you are also trying to protect the lives of other road users. There is no reason to put yourself or anyone else in harm's way. If you get to the age where you no longer feel safe behind the wheel, then it's just as important to know when to quit driving.

Also, remember that these tips will help your wallet as well.