In this article, we are sharing a video we recently published concerning the reported, impending ‘cost of living crisis’.
This video is delivered by one of our independent financial advisers, George Rashbrook. and forms part of our ongoing dedication to helping individuals improve their financial literacy and knowledge.
Concerned about how the cost of living crisis may affect your finances?
After watching this video, if you are concerned about the potential impact a cost of living crisis may have on financial plans, get in touch with one of our independent financial advisers today.
You can call us today on 01329 550 190 to see how our independent financial advisers can help.
You can find links to some related articles we have recently published below.
- Inflation is in the news. What does it mean?
- A guide to choosing a financial adviser
- What does a financial adviser do?
- Pensions advice: Are you at risk by not understanding your pension?
Is there a ‘cost of living crisis’ looming in the UK?
We’ve seen some real doomsday headlines in the last few days with Bloomberg claiming the UK is two months away from what they call a “brutal cost of living crisis”.
We really could be right on the edge of a perfect storm. UK inflation is already at a 30 year high. We’ve seen one interest rate rise already and speculation is rife that there may be more to come.
This will have hit some borrowers already but anyone with a fixed rate due to expire still has that to come.
UK cost of living crisis – energy price cap review
The cap on UK energy prices is due for review on 7th February and is expected to increase by as much as 50%. If that happens, we’ll potentially see huge increases is the price of gas and electricity take effect from April which is the same month the rise in National Insurance contributions for employees and dividend income tax for business owners also take effect.
It really is all happening at once.
It shouldn’t surprise you to know we don’t have a magic solution. What we can tell you is that panicking doesn’t benefit anyone and neither does burying your head in the sand. Now is the time to take control of your finances.
What does that mean?
Shop around for the best energy prices. Don’t let it be one of those little jobs you keep meaning do but never quite get around to.
Take independent advice on your mortgage. Consider whether moving to a fixed rate might be right for you. Keep yourself protected
Avoid the temptation to cut corners on essentials like car insurance, home insurance, life cover and income protection. These are essential costs however, the cheapest isn’t always the best. Nevertheless, do review what you have to make sure it’s exactly what you need and you aren’t paying over the odds for it.
Income from pensions and investments
If you’re reliant on income from pensions or investments review these with your adviser to make sure they’re performing as they should and the charges you’re paying are appropriate.
There are some very expensive contracts out there and it’s surprising how big a difference that can make.
Related article: Pensions & retirement guides from Sterling & Law – Hampshire
Get your adviser to do some detailed cash flow modelling with you. If you feel may need to give yourself a pay rise make sure you properly understand the long-term effect this might have on your financial security.
I know I say this all the time but now more than ever is the time to take independent advice, put yourself in a truly informed position and really plan ahead.
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Please note: all information contained in this video was right, and correct at the time of publishing and has been sourced from reputable mainstream sources.