How to Keep Track of a Pension Pot and Its Value

Keeping an eye on your pension pot is a smart financial move at any age, making sure that you are saving and prepared for the future. Your pension pot is invested across various sectors including, stocks, bonds, property and more. This means the value can go up and down depending on the value of the stocks that day. The important value is how it grows over time and checking this is stable and growing ready for your retirement age will help you when you need it most.

Why Pension Pots Can Lose Value

Pension pots are typically invested in a variety of sectors such as:

1. Stocks (shares) – Investments in public companies.
2. Government bonds – Loans to governments that pay interest over time.
3. Corporate bonds – Loans to companies.
4. Property – Investment in commercial or residential real estate.

Because pensions are invested in various markets, their value can fluctuate. For example, a stock market downturn can lead to temporary dips in pension value because shares in the portfolio lose value. Similarly, a slump in property values or lower yields from bonds can negatively impact your pot.

However, pension funds are long-term investments, and dips are expected to recover. If you are discovering a loss of value in your pension, you shouldn’t worry as this should only be short term. This is why it’s a great idea to check on your pension pot occasionally, so you can make sure everything is on track.

How to Track Your Pension Pot

Almost every pension provider offers online access to track your pension savings, check performance, and project future value.

1. Log into your pension account online – Every pension provider should give you access to an online portal. You should be sent and ID and will often need your national insurance number or some other form of document ID. Through this, you can check your current pension balance, review its performance over time, and explore any additional benefits, such as projections of how much you'll have at retirement.
2. Check your annual pension statement – You will receive a yearly statement detailing the contributions, investment returns, and current value of your pension. This can provide a snapshot of how well your pension has performed and any fees that may have been applied.
3. Use pension calculators – Many providers offer online tools that allow you to forecast the value of your pension at retirement based on current contributions. These tools are a great way to estimate whether your savings are on track.
4. Make voluntary contributions – If you're concerned about your pension's growth, consider adding voluntary contributions. Most pension schemes allow you to top up your pot. The government may offer tax relief on these contributions, making it a very tax-efficient way to save more for retirement.

How to Access Pensions from Different Providers

If you've worked for several companies, you may have pensions spread across different providers. Keeping track of multiple pension pots can be challenging, but it’s essential to consolidate this information.

1. Use the government’s pension tracking service – The UK government offers a pension tracing service to help you locate pensions from previous jobs. All you need is the name of your former employer, and the service will guide you to the relevant pension provider.
2. Contact your pension provider – Each pension provider should send you regular updates, either through the post or online. Keep these records safe and log into the portals to monitor each pension’s value. If you’ve lost track of an account, contact the provider directly, and they can assist in retrieving your details.
3. Consolidating pensions – If you have multiple pension pots, it may be wise to consider consolidating them into one plan. Many pension providers allow you to combine different pensions into a single account, making it easier to track and manage your retirement savings.

What are the different pension providers?

Different pension providers have different processes for accessing your pension information. The most common providers in the UK include:

• Nest Pensions – Used by many employers for auto-enrolment. You can log in at the Nest website to check your balance.
• Scottish Widows – Offers both individual and workplace pensions. They have an online portal where you can view and manage your pension.
• Standard Life – Similar to other providers, they offer a dashboard to monitor your pension’s performance.
• Aviva – Aviva offers a wide range of pension plans, and their online service allows you to track your pension pot easily.

If you're unsure of who your provider is, check with your employer, or use the government’s tracing service.

What is APR?

Annual percentage rate.

APR is the official rate to help you understand the cost of borrowing any amount. Your lender should always disclose the APR before you sign any agreement.

APR can be a good way to compare credit cards to see which would work out cheaper for you.

How does APR Work?

APR includes both the standard fees and interest you’ll have to pay on your borrowing over the course of the year. It’s usually added to the amount you owe on a monthly basis.

If the APR on your credit card is 17% this means you will owe 17% of the total amount owed to them in interest, on top of the total amount.

Often the interest rate isn’t the only cost of a credit card. To account for this, APR considers both a card’s interest rate and any other standard fees. This means that the APR percentage offers a more complete picture of how much borrowing will cost.

What is a good APR?

The APR you are offered will often be dependent on your credit score, the less of a risk you appear to be to lender’s then your APR could be lower too.

Credit card rates can vary, typically between 5% to 30% APR.

The lower the APR, usually the lower the cost of borrowing will be and this will make your payments cheaper if you are late or miss any amounts.

Types of APR

Fixed – If you have borrowed a fixed amount then such a loan or mortgage, having a fixed APR will make your payments more predictable as the APR won’t change.

Variable – The lender or bank can change the APR at any time and is often tied to the interest rates. This can make it harder to financially plan.

Representative APR – This is the advertised rate and means that a majority of applicants will get a APR of the same or lower than the representative.

Halifax and Lloyds Increase Mortgage to Salary Ratio

Halifax and Lloyds, two of the UK’s largest mortgage lenders, have recently announced a significant change to their mortgage lending criteria, allowing prospective homeowners to borrow up to 5.5 times their annual income. This marks an increase from the previous limit of 4.49 times income and will have a substantial impact on first-time buyers looking to enter the housing market.

The Mortgage to Salary Ratio

The mortgage to salary ratio is a critical factor that determines how much a lender is willing to lend a borrower based on their income. This ratio essentially sets the upper limit on the amount of money that can be borrowed. Most lenders in the UK have limited this ratio to around 4 to 4.5 times the applicant’s annual income. For example, under the previous rule, someone earning £30,000 a year could expect to borrow up to £135,000. However, with the new 5.5 times income rule introduced by Halifax and Lloyds, the same individual could now secure a mortgage of up to £165,000, significantly increasing their purchasing power in the housing market.

The Mortgage to Salary ratio also helps borrowers work out how much they can afford, this can vary depending on location and other factors.

Impact on First-Time Buyers

This policy change is particularly beneficial for first-time buyers, who often struggle to secure a mortgage large enough to purchase a home, especially in high-demand areas where property prices are steep. With the new ratio, first-time buyers will have a better chance of entering the property market. This is a crucial development, considering the rapid increase in house prices over the past two decades.

House Prices vs. Earnings

Lloyds data shows that since the year 2000, house prices in the UK have skyrocketed by approximately 240%.

This increase has far outpaced the growth in average earnings, which have only risen by around 112% during the same period. This disparity has made it increasingly difficult for many, particularly first-time buyers, to afford a home.

The Loan-to-Value (LTV) Requirement

However, it’s important to note that this increased lending ratio is typically only available for loans with a loan-to-value (LTV) ratio of 90% or less. The LTV ratio is the percentage of the property’s value that is being financed through a mortgage. For example, if you are purchasing a home worth £200,000 and have a deposit of £20,000, your mortgage would cover £180,000, resulting in an LTV of 90%. This means that to benefit from the new 5.5 times income policy, prospective buyers must have a deposit of at least 10% of the property’s value. This requirement ensures that the borrower has a significant stake in the property and reduces the lender’s risk.

Increased Lending Capacity

Lloyds has reported that this policy update will allow them to lend eligible customers up to 22% more than they previously could under the old policy. This increase is likely to be welcomed by buyers who are finding it increasingly difficult to keep up with the rising house prices. By enabling borrowers to access larger loans, Lloyds and Halifax are making it more feasible for buyers to purchase a home in today’s challenging market.

The Broader Implications

While this increase in the mortgage to salary ratio provides clear benefits to borrowers, it also has broader implications for the housing market and financial stability. On one hand, it could help stimulate the housing market by enabling more people to buy homes, potentially driving up demand. On the other hand, there is a risk that higher borrowing limits could contribute to further increases in house prices.

Higher borrowing could also lead to greater financial vulnerability for individuals if interest rates rise or if their financial circumstances change, making it harder to meet mortgage repayments. As such, while the policy is undoubtedly beneficial in the short term for those seeking to purchase a home, it also requires careful consideration of the long-term risks involved.

How Long Can You Travel to the EU Without a Visa?

When planning a trip to the European Union (EU), it's essential to understand the visa requirements and travel restrictions, which can vary significantly depending on your nationality. For citizens of the UK and the US, specific rules govern how long they can stay in the EU without needing a visa. Here's a detailed guide for both British and American travellers.

Travel to the EU for UK Citizens

Since the United Kingdom left the EU in January 2020, UK citizens are no longer entitled to the freedom of movement that allowed them to live, work, and travel across EU member states without restriction. However, UK nationals can still travel to the EU without a visa for short stays, thanks to the visa-free travel arrangements that apply to many non-EU countries.

Schengen Area Rules: Most EU countries are part of the Schengen Area, a zone comprising 27 European countries that have abolished passports and other types of border control at their mutual borders. UK citizens can visit the Schengen Area for up to 90 days within a 180-day period without needing a visa. This 90-day limit applies to the entire Schengen Area, not each individual country. It’s important to note that the 90 days are cumulative, so multiple short trips can quickly add up to the 90-day limit.

Counting the 90 Days: The 90 days are calculated on a rolling basis. This means that each day you spend in the Schengen Area counts towards your total, and you must look back over the previous 180 days to determine how many of those days were spent in the zone. For example, if you spend 30 days in France, leave for a few weeks, and then return to Spain for another 30 days, you have used up 60 of your 90 days.

Consequences of Overstaying: Overstaying the 90-day limit can result in fines, deportation, or being banned from the Schengen Area for a certain period. Therefore, it's crucial to track your days carefully to avoid inadvertently breaking the rules.

Non-Schengen EU Countries: Some EU countries, like Ireland, are not part of the Schengen Area, and different rules apply. For example, UK citizens can visit Ireland without a visa for up to 90 days independently of their time spent in the Schengen Area. Always check the specific entry requirements for each country you plan to visit.

Working or Studying in the EU: If you plan to stay longer than 90 days, work, study, or live in the EU, you will need to apply for the appropriate visa or residence permit. The application process and requirements vary depending on the country.

Travel to the EU for US Citizens

Similar to UK citizens, US nationals can also travel to the Schengen Area without a visa for short stays, though the rules are slightly different.

Schengen Area Rules: US citizens are permitted to stay in the Schengen Area for up to 90 days within a 180-day period without needing a visa. This limit, like for UK travellers, applies to the entire Schengen Area. The 90-day rule is the same for all travellers, and it’s crucial to remember that the 90 days are cumulative across all Schengen countries.

ETIAS Requirement: Starting in 2024, US citizens will need to apply for an ETIAS (European Travel Information and Authorisation System) authorisation before traveling to the Schengen Area. This is not a visa but a travel authorisation, similar to the US ESTA. The ETIAS will be valid for three years and will allow for multiple entries into the Schengen Area as long as the 90-day rule is observed.

Counting the 90 Days: Like for UK travellers, the 90-day period for US citizens is calculated on a rolling basis. Therefore, keeping track of your travel dates is essential to avoid overstaying.

Consequences of Overstaying: If you overstay your 90 days in the Schengen Area, you could face penalties, including fines, deportation, or future entry bans.

Non-Schengen EU Countries: US citizens should also be aware that some EU countries are outside the Schengen Area, such as Bulgaria, Romania, Croatia, and Cyprus. Each of these countries has its own entry requirements and visa rules.

Working or Studying in the EU: For stays longer than 90 days, or if you intend to work or study, a visa or residence permit is required. The process and requirements will vary by country, so it’s important to research and apply well in advance of your trip.

Upcoming changes

For both UK and US citizens, traveling to the EU remains relatively straightforward for short stays of up to 90 days within any 180-day period. However, it is vital to understand and adhere to the rules of the Schengen Area to avoid any legal issues or penalties.

As of 2025 there will be additional requirements for anyone planning a trip to the EU including biometric checks to replace passport stamps. There will also be a visa waiver which will be necessary for any trip to the EU.

How much will Oasis make from their reunion tour?

The announcement that got everybody talking, Oasis will be touring the UK in 2025 for 25 dates set for the summer. The tickets went on sale last week with a fight for the front of the queue.

Earnings from the Tour:

1. • The tour is expected to gross around £400 million from various revenue streams, including ticket sales, sponsorships, merchandise, and more.
   • Noel and Liam Gallagher are predicted to earn over £50 million each from the initial 14 dates of the tour alone. With 25 dates planned, their total earnings could be significantly higher.

Ticket Prices:

1. • Ticket prices varied from £148.50 for standing at the Manchester venue to £506.25 for premium seats at Wembley.
   • Despite efforts to control resale prices through partnerships with platforms like Twickets, resale tickets have reportedly been listed for thousands of pounds due to high demand.

Additional Revenue Streams:

1. • There are also potential earnings from a documentary film, which could be produced by Netflix or Amazon Prime. Given the success of the 2016 documentary "Oasis: Supersonic," which generated £1.3 million, a new documentary could add millions more to their earnings.

Boost to the Economy:

1. • The tour is predicted to have a significant economic impact, similar to Taylor Swift’s UK tour, which Barclays estimated would generate around £1 billion for the economy. The Oasis reunion could potentially generate a comparable economic boost due to the large fan base and the excitement surrounding the reunion. Sales of alcohol and cigarettes are set to boom during the tour months

The cost of Attending the 2024 Paris Paralympics

The 2024 Paris Paralympics will be running from the 28^th August to the 8^th September with 549 events and 4,400 athletes. The Paralympic games still have tickets you can purchase to experience the incredible athletes in action in Paris.

Affordable Ticket Prices

One of the highlights of the Paris Paralympics is the accessibility of its ticket pricing. Over 2 million tickets have already been sold, with more than half of these tickets priced under €25. This pricing strategy makes it possible for a wide range of fans to attend, ensuring that the Paralympics are as inclusive and accessible as possible.

For those interested in attending the finals, ticket prices range from €20 to €100, offering an affordable way to experience the climax of the competitions. Whether you’re looking to attend multiple events or just the highlights, there are ticket options to suit various budgets.

Millions of people will be going

The Games have attracted a diverse audience from around the world. The majority of ticket holders are residents of Paris, taking advantage of their proximity to the events. Interestingly, 48% of those attending the Paralympics have already purchased tickets for the Olympics earlier in the summer.

The international appeal of the Paralympics is evident, with 28% of ticket holders coming from the UK alone. In total, fans from 144 different countries will be in attendance, making the event a truly global celebration of sport.

Still Want to Go? Here’s How

If you haven’t secured your tickets yet, there’s still time to be part of this incredible event. Tickets for select events are still available, and with affordable prices, it’s not too late to make your dream of attending the Paralympics a reality.

For those traveling from the UK, the cheapest way to get to Paris is by flying. Budget airline EasyJet is currently offering return tickets for as little as £50, making it an economical option for those looking to experience the Games without breaking the bank. By booking your flight and purchasing your event tickets soon, you can join the thousands of fans from around the world.

Will you be booking your tickets?

When financial challenges arise, extending your mortgage term might seem like a viable solution to ease the burden of monthly payments. However, it's essential to consider the long-term implications of such a decision. While extending your mortgage term can lower your monthly outgoings, it significantly increases the amount of interest you pay over time, affecting your financial future, particularly during retirement. The amount of young homeowners gambling their retirement fund for their mortgage payments is increasing due to high costs, this will leave many struggling later on. This article explores the consequences of extending your mortgage and discusses alternative strategies to manage mortgage payments effectively.

The Cost of Extending Your Mortgage

Data from Mojo Mortgage reports that extending your mortgage term by 10 years can lead to substantial additional costs. For the average first-time buyer, this decision could mean paying an extra £87,180 in interest over the extended period.

One of the most critical concerns is the potential strain on your retirement savings. By extending your mortgage, you may find yourself using pension funds to pay off your remaining mortgage balance, undermining the financial security you need in your retirement years. Without a well-funded pension, you risk facing financial difficulties in old age. Even if you manage to maintain your pension contributions, the extended mortgage payments could stretch into your retirement, placing a significant strain on your finances.

Should You Extend Your Mortgage?

Before deciding to extend your mortgage, it's essential to weigh the pros and cons carefully. If you're struggling with your monthly mortgage payments, extending the term could provide immediate relief by lowering your monthly payments. However, it's crucial to recognise that this short-term benefit comes at the cost of paying more in the long run due to the higher total interest.

One advantage of extending your mortgage with your original lender is that if they do not carry out an affordability assessment, your credit score will not be affected. This could be beneficial if you're trying to improve your credit rating or if you anticipate needing additional credit in the future.

Another consideration is your ability to build a savings fund. If your current mortgage payments are consuming a significant portion of your income, extending your mortgage to reduce your monthly payments could free up some cash to save for future needs. However, the increased overall cost of the mortgage should not be overlooked.

The Risks of Extending Your Mortgage

• Paying More Interest: One of the most significant downsides of extending your mortgage is the additional interest you'll pay. The longer the extension, the more you'll pay, making it imperative to consider whether the short-term relief is worth the long-term cost.

Even a one-year extension can cost the average borrower an additional £8,472 in interest.

• Prolonged Financial Commitment: Extending your mortgage means committing to debt for a more extended period. This can delay the time when you'll be mortgage-free, which can impact your ability to plan for other financial goals, such as saving for retirement or your children's education.
• Delayed Home Equity: Home equity, the portion of your property that you own outright, builds up more slowly when you extend your mortgage. This means it will take longer before you fully own your home, which could limit your financial flexibility.

Alternatives to Extending Your Mortgage

• Refinancing Your Mortgage: Refinancing involves taking out a new mortgage to pay off the existing one, often with better terms. This could mean a lower interest rate, which can reduce your monthly payments without extending the mortgage term. Refinancing might also allow you to switch to a mortgage product that better suits your financial goals.
• Mortgage Overpayment: If you have the financial capacity, making overpayments on your mortgage can reduce the outstanding balance faster, saving you money on interest and shortening the mortgage term. This approach requires discipline but can lead to significant long-term savings.
• Downsizing: If your current mortgage payments are unmanageable, consider downsizing to a smaller, more affordable home. Selling your current property and purchasing a less expensive one can free up equity, reduce your mortgage, and lower your monthly payments.
• Seeking Financial Advice: Before making any significant financial decisions, it's advisable to consult a financial advisor. They can help you explore all available options and provide tailored advice based on your unique circumstances, ensuring that your decisions align with your long-term financial goals.

You can find credit cards which offer rewards when you spend so that you can get something back. This can include travel rewards, cashback or retail rewards. This means you can choose which one would be best for you and which you could get the most out of. Having a cashback card will work if you spend regularly and simply want a percentage of your money back. If retail rewards sounds better for you then take a look below for your options.

Top Credit Cards Offering Retail Rewards

Cashback Credit Cards

Cashback credit cards have become an increasingly popular tool for consumers looking to maximise the value of their everyday purchases. These credit cards offer a simple yet effective reward system: a percentage of your spending is returned to you in the form of cash, which can be applied as a statement credit, deposited into a bank account, or even redeemed for gift cards or other rewards. you might earn 1% cashback on all purchases, but 3% back on specific categories like groceries, dining, or gas. Some cards offer rotating categories where the bonus cashback percentage changes every quarter, while others may offer a flat rate on all purchases.

You can also find credit cards which offer alternative reward systems such as travel discounts or retail rewards.

Best Credit Cards for Travel Rewards

Choosing the right credit card with travel rewards can be a valuable tool for frequent travellers, offering benefits like air miles, discounts on flights, and hotel stays. However, it’s essential to evaluate the rewards program and associated costs to ensure the card aligns with your spending habits and travel needs. You can find credit cards with travel rewards, cashback or retail rewards so choose the right one for you.

Below, we explore some of the top credit cards offering air mile rewards, highlighting their features and benefits.

Should I have a Rewards credit card?

Rewards credit cards can be an enticing option for consumers, offering various perks that range from travel discounts to cashback and retail rewards.

But are they really worth it? To answer that question, let’s explore the different types of rewards available and weigh the pros and cons.

Types of Rewards

1. Travel and Air Miles
   One of the most popular types of rewards credit cards is the travel or air miles card. With these, you can earn points or miles that can be redeemed for discounts on flights, hotel stays, and other travel-related expenses. The number of points needed for a flight or hotel booking depends on the specific card and its associated travel partners. Frequent flyers, particularly business travellers, often find these cards valuable because they can significantly reduce travel costs. For instance, a businessperson who flies frequently may accumulate enough points over time to cover an entire trip, saving hundreds or even thousands of pounds. Find credit cards that offer travel and air mile rewards.

2. Cashback Rewards
   Cashback cards allow you to earn back a percentage of what you spend on the card. This cashback can be paid out monthly or annually and is often deposited directly into your account or applied as a statement credit. Some cards offer a flat rate of cashback on all purchases, while others provide higher rates for specific categories like groceries, dining, or fuel. Initially, many cashback cards offer an introductory rate of 5% on certain categories, which typically drops to 1-2% after this fixed period. This type of reward is ideal for those who prefer flexibility, as cashback can usually be used for anything, from paying down the card balance to funding a vacation. Find Credit Card that offer cashback rewards.

3. Retail Rewards Points
   Retail rewards cards are often co-branded with specific retailers, such as Amazon or Argos, and allow you to earn points at a higher rate when shopping at those stores. These points can then be redeemed for discounts, gift cards, or even free products. For loyal customers of a particular retailer, these cards can provide substantial savings. For example, if you frequently shop on Amazon, using an Amazon co-branded card could earn you double or triple points on purchases, accelerating your ability to earn rewards. Find credit cards that offer retail rewards.

The Pros of Rewards Credit Cards

1. Significant Savings on Travel
   For frequent travellers, rewards credit cards can offer substantial savings. Whether it’s a free flight, an upgraded hotel room, or access to exclusive airport lounges, these perks can add up quickly. Business travellers, in particular, can benefit from these savings, as they often have the opportunity to rack up miles and points through regular travel. Even if you’re not a frequent flyer, accumulating points over time could result in a discounted vacation, making these cards a smart choice for long-term planners.
2. Cashback and Earned Savings
   Cashback rewards are straightforward and provide immediate value. With every purchase, you’re effectively getting a discount, which can add up over the year. Some cards also offer rotating categories where you can earn a higher cashback rate for specific types of spending, maximising your savings potential. For those who use their credit card regularly for everyday purchases, a cashback card could be a simple way to earn money on spending you would do anyway. Those who are loyal to specific stores can greatly benefit on savings.

The Cons of Rewards Credit Cards

1. Higher Interest Rates
   Rewards credit cards often come with higher interest rates compared to standard credit cards. If you don’t pay your balance in full each month, the interest you accrue could quickly outweigh the value of any rewards you earn. This makes rewards cards a poor choice for anyone who tends to carry a balance.
2. Limited Value for Infrequent Users
   If you don’t travel often or shop at specific retailers regularly, a rewards card might not provide enough value to justify the potential costs. For example, a travel rewards card might be less beneficial if you only fly once or twice a year, as it could take a long time to accumulate enough points to redeem for a significant reward.
3. Annual Fees and Spending Requirements
   Many rewards cards come with annual fees, which can range from moderate to quite high, depending on the card's benefits. Additionally, some cards require a minimum spending threshold to unlock the full value of their rewards, which might encourage unnecessary spending.

So, is it worth having a rewards credit card?

If you know you will make full use of the rewards offered then they could be of great value to you and your habits despite the higher interest. As always, make sure you always pay on time and in full to receive the full benefits of your credit card.

Building a good credit score is essential for accessing favourable financial opportunities, such as loans and mortgages, in the future. While getting a credit card is a common method to establish and improve your credit score, it’s not the only way. In fact, many people are unknowingly contributing to their credit scores through everyday financial habits. Building a credit score is not a speedy process but don’t give up as you can find many ways to add to your credit history.

Credit reference agencies

You can regularly check your credit score, there are three main credit reference agencies (CRAs) – Experian, Equifax and TransUnion. Each one could calculate a slightly different score using their unique methods so it recommended to check al three from time to time. If you spot any mistakes make sure to report these immediately to protect your credit file.

Here are several effective strategies to build a good credit score without needing a credit card.