Many employers now offer company pension schemes as a ‘perk’ of the job. Contributions to the scheme are made by the employee directly from their wage or salary, either on a voluntary or compulsory basis. The employer will then add an agreed amount to the fund, usually based on a percentage of the salary, on a monthly or annual basis.

Although many employers also offer investment services as part of the package, the employee is at liberty to invest his own and the employer’s contributions according to his wishes. Those who may be thinking of reinvesting a fund should take advice from an Independent Financial Adviser (IFA) and ensure that regular pension reviews are carried out.

On retirement, a common way to receive a pension is via an annuity. Annuities are purchased from insurance companies with the lump sum accrued from the pension fund. The insurance company often offers an initial cash payout and then guarantees a regular monthly income until death. Those with dependents will naturally need to consider their family’s income in the event of premature death as payments usually cease unless prior arrangements have been made for continuance.

It is also wise to carry out pension reviews, at least on an annual basis. If the investment fund is under-performing in relation to others, it may well be worthwhile changing to an alternative company and/or investment opportunity to avoid losing out on Pension Services in the future.

Self-employed people will need to make their own retirement arrangements by considering a personal pension plan. There is a confusing array of personal pension schemes available and it is essential to seek expert advice before embarking on a scheme.

Pension plans are available from numerous sources including banks, investment companies, insurance brokers and even some well-known supermarkets. The technical term is a ‘money purchase’ policy which means that contributions made up until retirement are invested and the eventual pension benefits will be dependent on the success of those investments.

Pensions are a very complex subject for anyone but a real ‘expert’ to understand. Anybody who is actively seeking a suitable scheme should research, compare and then seek out the expert opinion of an Independent Financial Adviser before making a firm commitment to invest in a pension scheme. Once paying into a fund, be observant as to the state of the economy and carry out regular Pension Reviews to avoid losing out on income in the future.

Income and Expenditure

According to details compiled from Treasury data, the Budget will bring in receipts worth £592 billion for the UK, which will pay out £683 billion during the same period – a deficit of £91 billion. Despite the British Government`s attempts to cut public spending, it would seem that the country is continuing to pay beyond its means. This is hardly likely to please taxpayers who are feeling the brunt of the austerity measures. Exactly where has the government made savings?

Social Welfare

In 2011, £11 billion was shaved off the welfare bill, which still costs around £207 billion every year – the largest single expenditure listed on the Budget. Details of cuts to Tax Credits and Housing Benefit are still being analysed, but Child Benefit has received enough attention in recent weeks for media sources to understand what the chancellor has done.

Having threatened to drop Child Benefit entirely for families who have at least one taxpayer earning £43,000 or more, George Osborne relented under pressure to provide a break for many high-earning families. Under the new measures, families earning between £50,000 and £60,000 will receive reduced Child Benefit, while any family earning above the £60,000 threshold will not be entitled to the benefit at all. All families will still receive the benefit, but those who can be classed as high-earning will have to pay back the benefit through tax. This could create a more confusing system that is open to tax avoidance schemes, but the main concern is that 1.2 million families in the UK will be affected by the changes – and the average family is set to lose £1,300 per year.

Income

Income tax is worth £106 billion in receipts for the British Government, which has planned to increase the personal allowance (the segment of income that is not subject to taxation) by £1,100 in 2013-2014. This will benefit low-earning taxpayers, but the government will lose around £3.5 billion in receipts. Part of this cost was recovered in advance last year with the rise in National Insurance contributions (generating £3 billion).

Health

The gradual privatisation of the NHS is causing concern among those who are aware of the implications of healthcare reforms. Costing £130 billion in total, the NHS has been afforded a budget of £104 billion for the current year – a £5.6 billion increase on the previous year. Despite increased spending, many would argue that the NHS requires far more funds to operate effectively.

Stamp Duty

George Osborne has promised to close a loophole that allowed thousands of home buyers to avoid Stamp Duty. Closing the loophole, which was associated with CGT changes and concerned residential property, is expected to generate an additional £75 million in 2012. Stamp Duty on residential properties worth more than £2 million has also been increased to 7 per cent, which ought to bring in around £300 million. Property owners are advised to use a mortgage calculator to estimate the cost of interest rates and related expenses for 2012-2013.

PEST Analysis

This is a basic external market analysis that should always be carried out as the first step. PEST stands for Political, Economical, Social and Technologic; and these factors are vital in the success of a business. Are there factors that may arise as a result of the sitting administration or future change? Are there economic factors like a recession that will affect the profitability and risk in a venture? What are the demographics like of the local area, and is there demand for the product you intend to market? Are there manufacturing constraints in terms of cost or viability to your venture?

B2B vs. B2C

An important consideration for a business proposition is whether you are serving a business or consumer market as they both vary considerably. An FMCG (fast moving consumer goods) market is forever changing and key elements to success here include speed, flexibility, cost reduction, efficiency and strong distribution channels. A B2B market may be slightly different. A focus on expertise and benefit sought are of the highest importance. A business wants a product or service to improve their operation so if yours doesn’t; then there’s no market for it.

Conglomerate expansion vs. Product extension

Are you venturing into a completely new market? A conglomerate decision is a big one as you will have little expertise in a new market. Have you got the knowledge and resource to deal with a completely new set of competitors and will you be able to gain industry insight in a short period of time? A product extension strategy is a lot safer as you already know the market and you will be able to take a different niche closing all the gaps in terms of consumer needs.

Niche vs. Differentiated vs. Cost leader

Porter is a famous business strategist who theorised that these three types of business strategy are the only ones that can lead to success. Your business must either target a niche or focused market that offers a specialist product with expert skill, target a premium market that gives consumers choice in a range of extra perceived benefits, or lead from the front in terms of having costs at rock bottom.

Without one of these you are likely to get lost in the middle with a real USP or efficient running of operations. If you want to start a new business you must read up around Porter as an essential step. If you plan to open a store though, Public liability insurance is an essential policy for any size or strategy.

Ability to create a sustainable competitive advantage?

Will you be able to create an advantage that leads to a long-term success? It is easy to do something well, but you must be able to do it the best and keep in this position. Constant research and innovation will lead to a business leading from the front.

A long term strategy will be able dominate a market and therefore decide the direction of the businesses who compete in industry.

Market Competition

When you are looking into the viability of a market you must deduce the barriers to entry and how likely you are able to compete with the players in each industry. There are four types of competitive market and they all have different traits:

Competitive Market – This type of market has fairly low barriers to entry as there are a lot of companies in the market who each have a slice of the pie. There may be some big players, but no one who really dominates the market.

Oligopolistic Market – This type of market has a few big players who tend to dictate the direction of the market as they lead the way in technology and innovation. There can be barriers to entry here as big companies can drive you out with tactics such as price penetration. They also have strong distribution channels, low production costs and slick distribution networks.

Duopolistic Market – This type of market only has two major competitors and this can make it very hard to compete if you are new. Think of the personal computer market which is lead by Windows, but Apple has a good portion of the market too. It is not impossible to compete, but very hard to make a significant impression.

Monopolistic Market – A monopolistic market is something of myth and rarely happens these days without official bodies getting involved as a market without competition is not healthy and leads to high prices that are dictated by a sole company. The nearest thing we have to a business with this sort of dominance is probably Google, who have around 90% of the Internet search market. This could change though, but why would you want to compete in a market like this?

I hope this post gives you some insight into deciding a viable market for a business to compete in. This post has been written by Steve, a business graduate running a small business insurance company operating in an oligopolistic market.

Insurers are aware that there is an increased chance of a claim being made in is age group, however, many companies provide policies for the over fifties at competitive prices. Life insurance quotes can be gathered, free of charge, online and it’s extremely advisable to shop around before committing to a policy. Premiums can vary between providers and so finding one at an affordable price can be done.

Decreasing term life insurance

This type of insurance offers a lump sum payment to the beneficiaries if the insured person happens to be diagnosed with a terminal illness or passers away. The value decreases over the term of the policy.

Level term life insurance

Another option available is the level term plan which does not see the amount decrease over time. Beneficiaries will still receive their lump sum if the policy holder were to die or be pronounced terminally ill. Not only does this provide solid financial security to family members and loved ones, it is also ideal for those who are less active and fit as others at a similar age. This policy is, however, much more expensive than the decreasing term insurance scheme.

Critical Illness life insurance

This cover sees the insurer receive a lump sum if they are diagnosed with a terminal illness. This type of policy can be part of a fixed premium or a reviewable one. Fixed is significantly more expensive though it does save the individual money in the long run as medical and health costs are constantly increasing. Illnesses such as Alzheimer’s disease, cancer and stroke are all covered by this policy.

Those who have poor medical history are more likely to pay more for their insurance cover. Weight problems, high blood pressure and hereditary conditions will all be taken into consideration and could result in high monthly payments. The very way in which people take care of themselves will also be scrutinised. For example, smokers are perceived as more likely to fall victim to cancer and heart disease; all of which will be reflected in the price of the policy.

Pension plans are a dependable way to begin saving, letting your money grow and keep it ‘locked in’ until the time is right. Pension plans are arrangements which are set up in such a way that you will be receiving a regular income when you are no longer employed. These schemes are set up by companies, government institutions, labor unions, etc., and there are several kinds.

There is the Basic State Retirement Pension that is given to all employees who have given a substantial contribution to the National Insurance while employed, or have sufficient credits of contributions at the time of their retirement.

Adding to this is the Additional Pension Scheme, in which you can contribute more to the Basic Scheme in order to acquire a larger fund. But this scheme is not available for people with self-employed income.

The occupational pension is a plan by devised by a company for its employees. If you’re company has one in place, you need to find out about its benefits. This plan depends on the number of years you have served with the company, the amount of your final salary, any investments you have joined while serving there. At a given time, you may be part of more than one occupational pension schemes, if you have worked with multiple companies.

The rising cost of living today and the prevailing philosophy of ‘living in the moment’,  saving up for a time that is decades from now can be difficult. Looming pressures to buy a home, a car, education and other responsibilities make it easy to put off this kind of planning and become stringent. With an aging UK population, the national state pension falling short, and unwillingness of people to save, the UK government has initiated a scheme known as the National Employee Savings Trust. It is targeted towards low and middle income workers without a retirement plan in place, or without access to one. When the NEST is in place, all employers in the UK will have to make contributions of three percent of their employee’s earnings into the pension fund. The employee him/herself will make a contribution of 4 percent and a further one percent for tax relief. That is a total of 8 percent of the employee’s income.

Under the NEST, that is expected to begin in 2012, employees will be able to choose the type of investment they wish to join, if they meet the particular plan’s specified criteria. What you need to do immediately is to get the basic understanding of the National Employee Savings Trust, so that you can begin the path to a content and peaceful retired life.

If times are getting tough, what should you do? Well certainly the answer isn’t to just give up and go home. It’s all about making careful and informed decisions based on sound knowledge and research. There is plenty out there in terms of advice, but a lot of it is crazy and unjustified. You need to look at the evidence to make a careful decision and this will dramatically reduce the risk in any decisions you make. Here are 3 tried and tested ways to help your business through 2012:

Invest in marketing

It is an often thought that when times are tough you should cut your marketing. This is an easy cost to slash and a great way to save money on the short run. This, however, is a really bad move. If you cut your marketing you are reducing your promotion and brand awareness meaning you’ll experience even fewer sales.

Marketing is an investment in your brand and key to long term success. When a recession comes, lots of companies reduce their marketing spend and if you actually increase it, you’ll be the brand that people remember. When it comes to a growing economy, your brand will be at people’s forefront and you’ll see a big uptake in brand loyalty as a result of this. This work was empirically carried out by Ehrenberg who is one of the greatest living marketers. The evidence he presented over a number of companies over several decades all supports the theory, but you need guts to put it into practice.

Take out insurance

Insurance will minimise your risk as the last thing you want is to pick up the pieces from an unfortunate event. Whether this is injury caused to the public, a break-in or theft from a store, it could easily bankrupt you if you’re not protected.

You can get Business Insurance to cover almost anything these days, from a takeaway or restaurant to a shop or hairdresser. There is also standalone cover for public liability available too if you don’t have this. Avoid any hefty outgoings by getting covered. Shop around online for the best quote and think about the risk minimising involved that could do wonders on the long term.

Take advice from Michael Porter

Porter is one of the leading business strategy minds of our time and resides at Harvard Business School. He is the godfather of theoretical business strategy models and has two claims to fame. Students around the world are taught about Porter’s Five Forces which demonstrates the push pull effect of competition, suppliers and buyers on a market place.

One you should really look at though in terms of your business plan, is Porter’s 3 Generic Strategies. He says you must fall into one of 3 distinct groups if you are to succeed. If you fall between groups or not in one, then you will struggle to turn a profit and survive in hard financial times.

The first place to be is cost leading. This means you must offer extreme value at a great price. This will help you sell in higher volumes at lower profit margins and during a recession where money is scarce, these businesses tend to thrive and gain a lot of new customers. The second approach is differentiation which involves taking a premium stance in the market, offering a better product that you can charge more for. This means focusing on things you are good at going the extra mile. The last approach is a focus niche approach meaning you must specifically cater to a niche market and provide high quality bespoke products to their exacting needs. This ability to be flexible is key here.

If you read up on Porter then you will understand his background and theories to a better level and your business will flourish. If you apply what he says to your business, you will be able to see things you are doing wrong based on research and theory from over the last 20 or 30 years. A sound strategy will help you through the tough times ahead. It is worth having a contingency plan and budget too in case things do go awry.

Steve works in a high pressure company who are using these tips to battle the recession. Public liability insurance was on the top of the list of priorities for the year ahead.

Mis-sold PPI started life as a policy to cover a loan or credit against the holder becoming sick, suffer an accident or unemployment through no fault of their own. The policy would cover the payments of the credit card, loan or mortgage in the event of the holder being unable to.

Was I mis-sold PPI?

PPI was mis-sold to millions of customers of the biggest lenders in the UK, largely due to the huge profit involved in every policy, 89% of the associated cost of PPI was profit for the bank.

It is relatively simple to find out if you were mis-sold PPI if you have the paperwork for the credit card or loan or can dig out the paperwork for all the paid off finance you had. On the documentation somewhere, within the card statements or monthly pay back costs you will see Payment Protection Insurance or PPI is included in your policy; alternatively you can ring your bank to find out.

So, you have been paying for mis-sold PPI, but how do you know if you were mis-sold:

• You did not know that you were paying for PPI; the lender added it without permission or your awareness.
• You told the lender you did not want PPI but it was added anyway.
• You were told that having PPI would help your application or it was implied that it was compulsory.
• You were pushed into having it on the loan or credit card you were applying for.
• You were not informed of the policy exclusions including stress related illness and back issues.
• You were not told that PPI was optional and that it could be taken up elsewhere.
• You applied for a long term loan and added PPI but were not informed that PPI was only going to cover you for a much shorter period of time and you would not be covered for the remainder of the loan.
• You were unemployed, self-employed or retired at the point the policy began.
• You were not told that if you paid for PPI to be added to the application upfront that you would be paying interest on it for the length of the policy.

If you can relate to any of the above then the chances are that you could successfully claim back PPI compensation from your lender, the average claim is £3000 but it is not unheard of for this to be more than £50,000. The average person has two policies that they can pursue PPI claims on, so if £6000 sounds good to you, then it’s time to investigate.

For more information on making mis-sold PPI claims, FAQ’s, information or advice you can contact the Financial Ombudsmen Service, consult a PPI claims company or lodge your claim yourself. If you are looking to go it alone then read the guides from the Money Saving Expert.

Know where your money is going before you spend it. Take time at the beginning of each month and write out a budget. Once your budget is written up, stick to it. This will allow you to take control of your money. It can also help you from ending up short when an important bill comes up.

In order to save money on gas and driving costs, you may want to consider carpooling with coworkers or friends. You can all pitch in on gas and take turns using your cars. If you have to pay for parking costs, you could split the bill between you all as well.

To save money, instead of going to the movies, consider renting one. By renting a movie instead of going to a theater, you are saving gas, you do not have to pay ridiculous prices at the concession stand, and you do not have to buy a ticket. Many cable providers even allow you to purchase a movie from your TV for a small price.

Saving Money

Regularly read the business section of the paper. This will constantly offer many valuable tips on saving money and getting your personal finances in order. It will also help you stay updated on markets and maybe even will help you decide when a good time to invest money in stocks would be.

If you have children and you are planning on sending them to college, it best that you start saving money as soon as they born. College is expensive and by waiting to save money until your child’s teenager years, chances care you will not enough to send them to college.

Give you child a piggy bank. It is never too early to teach your young child about saving money. When you show a child how money can be earned and saved, he will retain this knowledge as he is growing up. This will steer him in the right direction in managing his own finances when he grows up.

Cutting Costs

You should make sure you spend less than what you earn. No matter how often or how much you get paid, if you spend more than you earn, you will never get ahead. Budget yourself and make sure you meet these goals. Cutting costs by just a little bit can save you big overall.

Credit Cards

Use cash for purchases. Eliminate credit cards and debit cards, and use cash for purchases. Use the envelope system to allocate a budget for monthly expenses. Have a separate envelope for each different type of expense, and place a specific amount of cash in each one. This way, you won’t over-spend on any monthly expenses. A good idea is to have another envelope marked ‘emergency’, containing cash that can only be used if really necessary. Seal this envelope, as this will make you less tempted to ‘borrow’ from it.

Carry a set amount of cash on you. This way, you know when you’ve reached your limit. Leave the debit and credit cards at home and you’ll be forced to think about what you can afford any time you make a purchase. When the cash is gone, that’s when you know you’re done for the day.

You can now see that money management is really simply a matter of taking charge of the situation and knowing what you need to do to stay on top of your financial knowledge. You have the tools available to be in control of your personal finances and secure your future monetary situation.

When buying life insurance, consider your health and if there’s anything you can do to improve it. People with better health get better life insurance rates. If you can lose a little extra weight, reduce your cholesterol, or quit smoking, you will find that quotes for life insurance may drop significantly.

Consider your current health when purchasing a life insurance policy. It is less expensive to purchase life insurance at a younger age and when in good health than later in life. Often, even if you experience health problems later, your life insurance is not impacted if it has already been in place. Trying to buy a policy after a health problem can be much more expensive, if not impossible.

After you have chosen the insurance representative that you want to work with, be honest with them when filling out your application for life insurance. Give your medical history as accurately as possible. If you omit certain information, like smoking, the policy may be cancelled, or future claims may be denied. Medical records are an important component in getting accepted for a life insurance policy, so honesty is best when applying.

To make your life insurance premiums lower you should improve your health. Losing weight, quitting smoking, and exercising frequently are a few things you can do to make you healthier. Those who are in bad health will pay higher premiums, so if you improve your health, your premiums will drop.

You can improve your risk class by taking steps to better your health. This includes doing things like losing weight, quitting smoking, reducing your high bad cholesterol, reducing your high blood pressure, and much more. You may also get exams prior to applying for insurance to avoid surprises. Some of these healthy changes can save you bundles of money over the life of a policy.

When going in for your medical exam, it’s important that you appear to be as healthy as possible. Now, no one is suggesting that you game the system, but you need to understand what you’re in store for. Don’t eat any junk or drink or smoke before going into this exam. It could ruin your chances.

Your Family

Make sure you get enough coverage. $500,000 can seem like a windfall of cash for your family in the event of your passing. But when you take into consideration a $300,000 mortgage, car loans, student loans, burial and funeral expenses, credit card debt and the like, all those can add up fast.

When searching for term life insurance, always choose a strong insurance company. If your family must make a claim, it will make you rest easier knowing your insurance company will handle it fairly and efficiently. You must also make sure that the insurance company has the ability to remain solvent, so check its credit ratings with A.M. Best and Standard & Poor’s rating agencies.

If you own a lot of land or real estate, think about life insurance. When you die, your family may inherit your property, but they may not be able to afford the taxes that go with it. A good life insurance policy will cover estate taxes, for a certain period of time.

Ask questions you feel should be answered. If you aren’t asking the questions you think should be answered, you aren’t really getting the help you need. You could end up getting into a policy that isn’t appropriate to meet your needs, or one that has coverage that isn’t needed by your or your family.

The Cost

Check to make sure if you can enter into a group plan insurance policy or not through your employer. It is often the case that the same companies offering group health insurance will also have group life insurance policies available for a fraction of the cost of purchasing the policy solo.

In order for the people you love to be cared for even when you aren’t around to physically handle things yourself, life insurance is an important investment. The cost of funeral services are very expensive and can leave a large burden on your loved ones. Don’t make the mistake of thinking you are invincible!

The cost of a life insurance policy will partly depend on a medical exam that you take. However, there is nothing stopping you from getting a medical checkup prior to shopping for a policy. You should definitely do so to see if there are any unexpected problems that you can resolve before you get life insurance. Also, try to get in better shape for that exam!

Sometimes in life insurance, more coverage is actually cheaper. As the amount of coverage increases, the cost per thousand dollars of coverage will decrease. For some companies, the math works out such that buying a bigger policy actually costs you less per month in premiums. Always ask for price quotes for multiple levels of coverage when shopping for insurance.

The Benefits

Check your life insurance policy contract very carefully. When you receive the policy, you normally have 10 days to cancel for a full refund if you find it to be unsatisfactory. Make sure that all the benefits you applied for are included, and the premiums are what you agreed to pay. If there is anything you don’t understand in the policy, you should call the company for clarification. If you are still not satisfied, remember to return it within 10 days.

When choosing a life insurance policy, look into the quality of the company you choose. The company that holds your policy should be able to stand behind it. It is good to know if the company that holds your policy will stay around to service the policy if need be and eventually be around to pay the benefits of the death.

The Protection

Term life insurance is the most effective for a single parent. Whole life completely disregards the reason you are looking for insurance and that is to take care of your children in case of tragedy. Term life is much more affordable than whole life and it provides all of the protection you need to care for your family.

All of the tips you just read about should have helped clarify some of the questions you had about life insurance. Use the information you have just learned wisely and you should be making the right type of choices that can benefit you in this sensitive subject. Feel free to reread the article if you need to, it’s important to remember all of this knowledge.

Setting the water level in your toilet is a great way to decrease the amount of water that is used for each flush. There are simple blocks that hang inside your tank that will decrease the amount of water that is needed to fill your tank and shut the water flow off.

Change your trading plans with your goals. If your personal goals change, and no longer match up with the strategy you are using in the market, it may be time to change it up a bit. When your financial situation changes, reevaluating your goals and methods will help you manage your trades more effectively.

Take advantage of your flexible spending account. If you incur medical costs, or have a child that you pay a daycare bill, a flexible spending account can save you money. These accounts allow you to put a certain amount aside in pre-tax dollars to pay for such expenses. There are conditions involved though, so speak to a tax professional.

If you rent your home, make sure you get renters insurance to cover you in case of a loss, such as fire, wind damage and theft. Renters insurance is extremely inexpensive. If there is a natural disaster, the owner of your home is covered for their loss of property but you are not covered unless you have your own policy.

There are millions of deals out on the market; you just have to find them. Peruse the Internet and newspapers for deals that will save you money on all kinds of things that you need. This will help you to reduce your overall spending and will make you feel good about yourself too.

If you have a parent or other relative with good credit, consider repairing your credit score by asking them to add you an authorized user on their card. This will immediately bump up your score, as it will show up on your report as an account in good standing. You don’t even actually have to use the card to gain a benefit from it.

Banks offer two different types of loans: fixed and variable interest rate loans. Try to avoid variable interest rate loans at any cost as they can turn into a disaster. Fixed rate loans will have the same interest rate throughout the loan’s life. The interest rate of the variable rate loans and their monthly payments change either by following the fluctuations of the market or the contract between the bank and the borrower. The monthly payment can easily reach a level the borrower can’t afford.

Check and see if you are getting the best cell phone plan for your needs. If you’ve been on the same plan for the past few years, you probably could be saving some money. Most companies will do a free review of your plan and let you know if something else would work better for you, based on your usage patterns.

Accurate information is key to developing and implementing any good strategy. Given the above advice you should be a bit more prepared to go after your personal finance goals and attain some peace of mind. Having control over your personal finances takes some training and discipline but in the long run you will find it very rewarding, in more ways than you can imagine!