It is easy for Britons to feel powerless about rising prices, soaring inflation and swelling energy bills. However, according to one expert there are some ways individuals can fight back and get their finances in order.
Express.co.uk spoke exclusively to Alex Edmans, Head of Retirement at Saga Personal Finance, who shared the key issues older Britons should be considering at the moment when it comes to the rising cost of living.
She said: “There are a few key things to be looking out for in a time like this – as a cost of living crisis can be really hard.
“The first thing to start with is checking your savings account, as your money could be languishing in a low rate account.
“You should be looking to see you are getting the best interest rate you possibly can on your money.
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Another major concern for older individuals is the rising cost of household bills – especially as energy bills are expected to soar to £5,000 next year according to Auxilione, an energy consultancy.
The expert said now is a good time for Britons to consider what options they have at their disposal.
She explained: “Ask yourself when you last reviewed your household bills, as these can often be forgotten.
“Are you with the most competitive providers? It’s hard to get a better deal these days than it used to be, but it may be possible.
“I think a bit of housekeeping surrounding your energy bills in particular is very worthwhile.”
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As another point of action, Ms Edmans said it is important to establish a strict budget – with a clear idea of income and outgoings.
She explained this is particularly important for those on a fixed income, especially if their annuity does not increase with inflation.
Ms Edmans added: “You should know what you’re getting and what you’re spending to have a clear idea of your finances.
“While many over 50s are living mortgage free, those who aren’t should also take their payments into account.
“Look at the costs you absolutely can’t avoid, but then look elsewhere at some of the places where you might be able to cut back.
“In the current climate, sadly there is no silver bullet that is going to radically change everything when it comes to your finances.
“But it is those little changes and tweaks that can add up to make a big difference incrementally. These are the best things to do to ride it out as much as possible.”
Finally, Ms Edmans pointed towards equity release – an option where people use the wealth tied up in their property as a lump sum or regular payments.
The loan amount and any built-up interest is then paid back by selling a property when the borrower dies, or moves into long term care.
The expert added: “Some people are sitting in a mortgage free property and this could be valuable through equity release.
“You may be worried about how this will affect your estate. Perhaps speak to your family about this option.”
However, it is especially important to note equity release will not be a suitable option for everyone.
As a result, it will be vital to speak to a financial adviser about whether the option is appropriate in their circumstances.
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