Natasha Cummings – South East manager for the Money and Pensions Service (MaPS) – offers some guidance on the help that’s available from MoneyHelper – MaPS’ government-backed money guidance service.
Organise your income and expenses
An easy place to start is knowing what’s coming in and going out.
If you haven’t already, it is worth going through your bank account and checking your transactions, so you know exactly what you have to spend each month and where you can potentially cut back.
Are you spending too much on coffee? Do you need that extra subscription? It is a small thing, but some little cuts can make a big difference.
- Get everything you’re entitled to
Recent research suggests millions of households could be missing out on unclaimed benefits and social tariffs worth billions of pounds.
Whether it is Child Benefit, Universal Credit or Pension Credit, you could be entitled to more.
Once you know your income, you can make a budget that works for you.
Start by calculating your essential expenses, and then you can plan for the things you enjoy.
If this sounds daunting, don’t worry, MoneyHelper has a helpful Benefits Calculator and Budget Planner to help you make the most out of your finances.
Your pension
It might seem like a lifetime away, but it’s never too early to start saving for retirement.
The earlier you start, the more you will have when the time comes.
It sounds simple and it is, but here are a few useful tips to keep you on the right track.
Our previous research shows only a third of people who pay into a pension actually engage with it.
Check your statements annually, or log in online at any time, to see how your pension is doing.
- Update your contact details
Ensure your contact details are up to date – if you’ve moved home or changed names, it’s hard for your provider to get in touch with you.
- Get a Pension Wise appointment
If you’re over 50 with a Defined Contribution pension, you can get a free Pension Wise appointment to discuss your pension options.
You can also visit MoneyHelper.org.uk for further support.
Future-proofing
When spring cleaning your finances, try to think further into the future if possible.
It’s not just saving for that rainy day; in the shorter term, it could cover that new car or even help towards your new home.
There is a range of options for savings, and it is always worth shopping around to find the best interest rates.
Stocks and Shares ISAs can offer higher returns than cash savings in the long term and are tax-free, but always be aware of the risks.
No one wants to think about it, but everyone should have a financial plan in place for when they die.
However, just over half of adults aged 50 to 64 do not have a will.
Setting out who gets what is just good sense and ensures your nearest and dearest have some comfort when the time comes.
Don’t worry, it is easier than it sounds, and before you speak to a solicitor, MoneyHelper has a step-by-step guide to help.