Sort your financial future by age 26

If you are over 26 but have not put in place basic plans to ensure financial security later in life, then start to worry.

That is the message from financial advisers who warn that those who fail to address their financial futures early in life could face a lifetime of struggling to catch up.

Financial advisers believe that the three pillars of financial planning ? saving for retirement, getting on the housing ladder and saving for the future ? should all begin well before a person reaches 30.

According to research by Prudential, they think that people should start a pension at age 22, buy their first house at 25, and start to save at 26.

However, the reality is somewhat different. The average age to marry, which is often a trigger to sort out finances, is 29 for women and 31 for men, while the average age of a first-time buyer is 34.

But if reading this causes you to break out into a cold sweat, you will find solace in the words from Prudential's UK executive director Roger Ramsden, who says it is never too late to start planning for your financial future.

"Planning early is key to a secure financial future, but it is never too late to start. For those of us who do seem past-it, we can still do an awful lot to improve our financial position; whether that is pay more into our pension, save more, or reduce our debts," he said.

"At the bright young age of 26, many youngsters are not yet fully aware of the benefits that starting a pension and savings scheme can bring.

"For one thing, few are aware of the significant tax breaks of a pension. It is only later that they look back and wish they had acted earlier to maximise their finances."

Those under the age of 26 should take heed of the experience of their elders, 42 per cent of whom wished they had reviewed their finances earlier in life. The 25 to 34-year-old age group felt this more than any other group.

Financial adviser Andrea Rozario said the ease of access to credit cards and loans, along with sophisticated advertising techniques, had caused saving to go out of fashion.

She said: "I agree with the advisers surveyed by Prudential in that the earlier you start planning, the better. And while it may not be possible for everyone to have started a pension, bought a house and started saving by the age of 26 ? it should certainly be on their radar."

Interest-only mortgage take-up doubles

The number of interest-only mortgages being taken out has doubled over the last four years, as more and more Britons try to get on the property ladder.

This rise in interest-only mortgages has coincided with a rise in average house prices of 41 per cent over the same period.

Figures from the Council of Mortgage Lenders reveal that in 2002 the percentage of first-time buyer mortgages that were interest-only was 11 per cent, a number which rose to 21 per cent in 2005.

Meanwhile, the average house price rose from £95,356 in 2002 to £160,319 in 2006, according to Nationwide figures.

Interest-only mortgages are often more attractive to the first-time buyer because the monthly repayments are lower than repayment mortgages. This is because the mortgage-holder only pays the interest on the loan.

However, the draw-back is that when it comes to selling the property, all the money borrowed has to be given back, and if the price of the house has fallen since the loan was taken out, this can cause big problems for the mortgagee.

The surge in the number of interest-only mortgages being taken out is a cause of concern for price comparison site moneysupermarket.com, which says it is important for consumer to consider all their options before plumping for the interest-only deal.

It advises that consumers doing so should make sure they can afford to invest in savings elsewhere, in case of a downturn in the housing market.

Louise Cuming, head of mortgages at moneysupermarket.com, said: "I would whole-heartedly urge consumers to think carefully before taking out an interest-only mortgage - even if they are attracted by the lower monthly payments.

"People should only consider this type of mortgage if they are sure they will be disciplined enough to save money elsewhere - as well as setting aside any additional lump sums of cash, like bonuses ? and not touch it."

Research shows that the longer one stays on an interest-only mortgage, the larger the monthly payments will be when switching to a repayment mortgage.

For example, according to moneysupermarket.com, a £150,575 mortgage over 25 years paying interest-only for the first five years with a term tracker of 4.99 per cent will require monthly payments of £627.80.

Switching to repayment after the five years means monthly payments increase to £995.53. Had the mortgage been based on repayment from the start, monthly payments would have been £881.70 - £113.83 less.

Over the course of 25 years, this saving would add up to around £12,000.

Ms Cuming added: "If a homebuyer can afford to repay their mortgage from the off, then I would urge them to consider this option seriously."

For the latest mortgages visit our mortgage guide

Sainsburys Home Insurance

Sainsburys Home Insurance

Sainsburys home insurance promises significant savings on home insurance and includes free emergency and legal cover for the first 12 months. Contents cover is unlimited but our test customers found premiums were slightly higher than other insurers.

• Home insurance


• Buildings insurance


• Contents insurance


• Accidental damage insurance


• 5% discount for online ordering


• Free Nectar points


• Free emergency and legal cover

Sainsburys home insurance promises to save an average of £100 on your premium, and there's a 5% discount for online ordering together with free Nectar points if you buy the policy.

The application form is clear and very quick to complete, but the premiums are unlikely to have you dancing naked in the street with joy: our urban couple would pay £303.49 for unlimited contents (with a £7,500 high risk items limit) while our suburban family would pay £255.48 for buildings and contents cover. However, if you also want home emergency and legal expenses cover then Sainsburys home insurance is worth a look: both are free for the first 12 months of your policy.

Summary

With Sainsbury's home insurance you could beneftit from a no claims discount of up to 30%, plus a special 10% discount for buying your insurance online.

Independent research conducted by Consumer Intelligence in 2004 showed that Sainsbury's are up to 33% cheaper than other leading home insurance companies.

Buildings and contents cover is comprehensive, with new-for-old replacement for contents and free legal expenses for your first year.

Sainsburys Home Insurance

Sainsburys Car Insurance

Sainsburys Car Insurance

If you're shopping around for a cheaper car insurance quote, Sainsbury's Bank might be worth a try. They offer a range of cover options from Third Party Only up to Comprehensive; features of their service include personal accident cover, medical expenses in the event of an accident, windscreen damage, breakdown recovery and repairs, and optional legal cover.

Sainsbury's Bank car insurance is provided through Esure Services Limited. Sainsburys Car Insurance are prepared to offer 5% if you buy your car insurance online and another 5% if you pay using your Sainsbury's credit card. Sainsburys Car Insurance also runs a number of draws for customers who purchase car insurance from Sainsburys Car Insurance

If you want to get a quote online from Sainsbury's there's a facility to enable you to do so through the site, and it's also possible to pay for cover online and get insured immediately. There are downloadable policy documents as well as summary pages on the site outlining the basics of their insurance policies. Check the Frequently Asked Questions section if you have any queries about what's on offer, or alternatively send them an email or call their customer services helpline.

Summary

Complete peace of mind costs less than you think with Sainsbury's Car insurance. Sainsbury's offers:

• 5% discount if you buy online car insurance


• additional 5% discount if you pay using your Sainsbury's Bank credit card


• new - prize draw when you get a quote for Sainsbury's car insurance or online car insurance, we'll enter you into a prize draw to win a year's free shopping at Sainsbury's supermarkets to the value of £5,000

Get a quote today from Sainsbury's car insurance

Zurich Car Insurance

Zurich Car Insurance

Zurich provide their products through car insurance brokers and direct to the customer, and pride themselves in offering a truly comprehensive service with the same range made available through their British subsidiary Eagle Star.

The company should offer an insurance quote for your car provided you are resident in and the vehicle is kept in Great Britain (excluding Northern Ireland and the Channel Islands). The insured must be the owner, main driver and registered keeper of the vehicle. And importantly, there must be no more than 2 cars in the family, if car drivers under the age of 25 years are required. All drivers must be between 17 and 79 years old at the beginning of the car insurance policy, hold a full UK driving licence and be permanently resident in the UK.

The total number of fault accidents or claims (including theft) for each driver must not exceed 3 in the last 3 years and the total number of convictions*, fixed penalties or disqualifications (including pending) must not exceed 2 in the last 5 years. Drivers must not have been disqualified from driving or have a conviction with the prefix AC, BA, DD, DR, IN or UT within the past 5 years and must not have had a previous proposal refused, had terms imposed*, cover cancelled or a insurance policy not renewed.

The car must be a standard UK model and must not be modified from the manufacturer?s standard UK specification*.

They will offer comprehensive insurance in two forms and third party fire and theft only cover online, with fully comprehensive car insurance only available on vehicles valued in excess of £5000.

Fully comprehensive can be obtained through either their Basic Comprehensive or Car Solutions insurance cover options the main difference is the number of benefis normally considered as optional extras included as standard.

Business use by yourself and spouse is an available option, including commercial traveling.

Additional named car drivers can be added to the insurance policy. They must also be between 17 and 79 years at the beginning of the policy with additional excesses applicable for each claim dependant on the age of the driver* and their driving experience*.

Car no claims discount can be carried forward from your previous UK insurance company provided you ceased that policy within the last 2 years*. Company Car no claims discount* equal to the number of years since last claim or accident can also be considered.

You can elect to take no claims discount protection allowing you two claims in any consecutive five year period without affecting your discount.

Insurance claims are dealt with by telephone. A 24 hour claims helpline provides advice and links to their nationwide network of car repairers. Legal assistance is wide-ranging. Please see their site for details.

A courtesy car* will be made available, under the Car Solutions comprehensive insurance option only in the UK temporarily after an accident. Cover is extended* to include a car your motor trader gives you (a small hatchback) while your vehicle is in a garage being repaired, by an approved car repairer, following an accident, fire or theft.

You have free cover traveling abroad* under the Car Solutions comprehensive insurance option only for up to 60 days in any one trip, throughout the E.U. and certain other states. The level of insurance cover will be that purchased under your policy for UK use, you should always check before traveling. After 60 consecutive days, unless the period has been extended* by prior arrangement, car insurance cover is restricted to only the minimum required by law in the E.U. member countries and in certain other.

Medical Expenses* are covered under the Car Solutions comprehensive insurance option only, up to £200 for treatment of each person who is injured in an accident in your car. For the main driver only Zurich will also pay £30 a day for up to 30 days if you have to stay in hospital for more than a day. Personal Accident Benefits* cover you or a member of your family who permanently lives with you and is aged between 16 and 79, as a result of an accident while traveling by car, £10,000 for death, permanent total loss of sight in an eye or use of an arm or leg.

Breakdown cover* in the UK is included as standard under the Car Solutions comprehensive insurance option only.

Please note, conditions will apply for all of the insurance products for cars mentioned above, please contact the insurer concerned for more information.

* Specific conditions apply, not detailed here, please see the company's literature for full details.

Summary

Zurich offer three different car insurance products in the market place, these consist of two comprehensive insurance policies and a third party fire and theft policy. There is the option to pay monthly and if no claims have been made in the last 5 years, up to 65% no claims discount is offered. All polices provide uninsured loss recovery and legal expenses, emergency medical costs, manslaughter defence costs, legal liability to third parties and driving other cars on a third party basis only subject to conditions. Optional features which are available to all policies include protecting your no claims discount and UK or European breakdown insurance.

Car Solutions is Zurich?s premier comprehensive policy and offers additional features on top of the standard comprehensive package. These include cover for replacement locks following loss or theft of keys. If the car is left unattended cover is provided for the loss or theft of wheelchair or pushchair or concealed personal belongings. Personal accident, Hospital benefits and medical expenses are also included up to set limits. Another feature which is applicable to new car owners is Zurich?s promise to replace your car with a new car during the first year of registration if car repairs exceed 60% of the manufacturer?s list price including VAT. For those car owners who take their car abroad, loss or damage to luggage trailers up to a set limit is included and there is the freedom to drive in European Union and associated countries for up to 60 days for any one trip. A free courtesy car is also provided on the understanding that you use Zurich?s recommended repairer and if the car is deemed a total loss there is 4 days free use. If you break down over 1 mile away from the home free breakdown assistance and recovery is also available.

Please note, conditions and policy limits will apply for all of the insurance products for cars mentioned above, please contact the insurer concerned for more information.

Zurich Car Insurance

Zurich Home Insurance

Zurich Home Insurance

Zurich Home Insurance delivers the usual comprehensive suite of UK home insurance policies. There is also an excellent 5% discount for buying online.

Save money with a Zurich home insurance policy. Independent research, conducted in the first quarter of 2005, shows that you could save up to 26% when you switch to Zurich's Buildings and Contents Insurance!

Please note there may also be various exclusions: if you live in a flat or maisonette, work in a club, work in an amusement arcade or are a student then Zurich will possibly not give you a quote. Zurich home insurance covers the following categories:

• Buildings insurance


• Contents insurance


• Accidental damage insurance


• Immediate 24-hour access to approved network of trades people


• Easy to arrange cover for all your household contents


• Automatic cover for home office equipment used for business purposes.


• Instant home quote, immediate cover

Zurich Home Insurance Policy

Delivering the very best UK home contents and buildings insurance. Zurich can normally match or beat your current home insurance premiums.

Are you and your family looking for a greater degree of home cover and additional peace of mind? For a modest increase on your premium Zurich can provide the following 'extra cover' options:

• Storm damage to your garden


• Accidental damage to your building


• Contents cover worth up to £40,000


• Unlimited cover for food and drink in your fridge and/or freezer resulting from a breakdown of the appliance or a power cut


• Replacement locks cover for lost or stolen keys.


• Family legal expenses up to £50,000

Summary

Zurich home Insurance, Whether you choose buildings insurance, contents insurance, or both, you can be sure of one thing. If the unexpected happens we won?t create an unnecessary fuss.

Zurich Home Insurance

uCan Car Credit

Who are uCan Car Credit?

uCan Car Credit is the UK?s fresh new face of car finance. They provide people who are struggling to get car finance or car credit with a quality car at a price they can afford. That?s because they only look at their ability to make repayments in the future, not their problems of the past.

What you get with uCan Car Credit

• 7 day Exchange Promise - if you're not 100% satisfied then they'll exchange it for another one


• 7 days free insurance, allowing you to drive away the same day


• The technicians who prepare their cars are all trained to AA Standards and follow strict internal procedures to make sure that all work carried out meets and exceeds Industry Standards


• All vehicles go through a 120 point Pre-Delivery Inspection where all aspects of the vehicle are checked


• Any faulty items are replaced. What's more, every car is given a HPI Vehicle History Check to ensure there is no outstanding finance or record of Insurance Write-off


• For your complete peace of mind, they supply every car they sell with 3 months Parts and Labour Guarantee

To find out more simply visit the uCan Car Credit website

Costs keep family sizes small

The cost of bringing up children means the average British family now has just 1.3 kids, new research reveals.

Figures from Skipton Building Society show the number of children in the average UK family is now almost half the traditional 2.4 figure.

And money is at the root cause of this decline, with almost nine out of ten people (89 per cent) saying they are under pressure due to rising costs.

This has led one person in five (20 per cent) to not have children at all, with 30 per cent of men opting to not have children and 16 per cent of women making the same decision.

"The fact that a fifth of the UK's adults are choosing to remain childless sends a strong message about modern life and the pressures it brings - particularly financially," said Jennifer Holloway, head of media relations at Skipton Building Society.

"There are a lot of factors contributing to this, including consumer debt, pension shortfalls and rising house prices - all of which has led many people to choose to enjoy the lifestyle they have instead of adding more pressure with the cost of bringing up a child.

"What's particularly unfortunate though is the number of people who wish to have a family but are being forced to delay doing so for purely monetary reasons. There's no easy solution, but if would-be parents can plan well and make the most of the money they have, the patter of tiny footsteps could come sooner rather than later."

Overall, almost two people in five (37 per cent) choose not to have children as they do not want to compromise their lifestyle, with one in seven (15 per cent) put off by the cost of raising a child.

Additionally more than one person in five people with children (21 per cent) cannot afford to have more.

Two in five of 25 to 34-year-olds (39 per cent) have held back or are still putting off parenthood because of the state of their bank balance, with 24 per cent waiting more than five years.

HSBC Pensions

HSBC pensions will have to become more flexible in order to reflect the changing needs and expectations of people in modern society, a new study by the bank has suggested.

"The Future of Retirement", a comprehensive study on global attitudes to ageing and retirement, shows that for many people today traditional retirement is no longer a reality.

The changes in attitude are thought to be due in part to the ageing of the "baby boomer" generation, declining fertility rates and increasing lifespans, all of which are changing the way in which people see pensions.

In particular, the study found that more people thought the retirement age should be raised to cope with increasing pressure (45 per cent), with 26 per cent saying they would prefer higher taxes and only 15 per cent in favour of reducing pension benefits.

"This new way of thinking highlighted by the research should change the way governments, companies and financial institutions deal with ageing and retirement," said Dr Ken Dychtwald, president of US-based consultancy practice Age Wave, which managed the research for HSBC.

Sir John Bond, group chairman of HSBC Holdings, said that the changes posed "real challenges" to the way in which HSBC pensions would operate in the future.

He concluded: "We remain committed to exploring this area more fully, using our findings to guide our own products and services to better fit the increasingly complex, increasingly flexible demands of consumers as well as adding a new dimension to the global debate."

About HSBC Pensions

HSBC Pensions allow you to prepare for a healthy retirement. For the third consecutive time HSBC has been awarded a coveted Five Star Award for its Stakeholder and Personal Pensions. HSBC Stakeholder Pensions are both a flexible and low-cost way to prepare for retirement. You can contribute to a Stakeholder Pension whether you employed, a fixed-contract worker, self-employed, or even not working but able to afford contributions. HSBC will even allow you to make lump-sum contributions whenever you like. At retirement you use your pension fund to buy an annuity. The annuity will pay you a regular income during your retirement. You can even choose to receive up to 25% of your fund as a tax-free lump sum.

uSwitch - Saving Money on Your Bills

Who are uSwitch?

uSwitch is a unique service to householders and is an easy way for you to choose, compare and obtain home services (such as gas, electricity, mobile phones) with complex pricing structures and characteristics, within your are.

Is uSwitch impartial?

uSwitch is an impartial and independent service between you and suppliers of services to your home. We guarantee to give you totally impartial advice in the service areas in which we operate. uSwitch works with all suppliers of gas, electricity and mobile phone service providers across Great Britain. You determine your best deal by providing uSwitch with your preferences. You will then be able to choose, compare and obtain the best deal on line.

How much does it cost to change supplier or obtain a new service using uSwitch?

Nothing - our service is free! We are paid a small commission by the supplier company when customers change suppliers with uSwitch. This does not increase the price you pay to the supplier, nor does it have a bearing on the ranking of the products in our output tables.

Will I pay uSwitch any money?

No - uSwitch will not take any money from your bank account or charge you a fee for using the service.

Summary

uSwitch are a company which operates a comparison site where consumers can peruse deals & offers from a variety of different suppliers to find the most economical package tailored to their needs. By showing you how much you could be saving, uSwitch encourage you to, as their name suggests, switch utility providers. They provide this service not only for gas & electricity but also for mobile phones, home telephones & digital TV.

The site is visually pleasing & easy to use. The calculator is comprehensive & has many options for preference selection so the end results are more finely tuned to the customer's specific requirements. The site also provides information about energy, the energy industry & explains terminology.

uSwitch gas and electricity comparisons
uSwitch broadband comparisons

3.5m adults permanently overdrawn

A third of adults with a bank account are relying on their overdraft to get by, new research reveals.

With 40 million British adults holding a current account, 28 million of whom have an overdraft facility, price comparison website uSwitch finds that 35 per cent of all adults are relying on their overdrafts ? 14 million people.

Worryingly, one in four current account holders are permanently overdrawn, while two million workers start the month in their overdraft, even after they have been paid.

uSwitch finds that the average overdrawn balance is £-677, though men appear to be racking up higher overdrafts of an average of £-867. Female current account holders' overdrafts are smaller, at an average of £-515.

Nick White, head of personal finance at uSwitch, said: "Overdrafts are now an everyday part of life, but we are concerned about the increasing reliance that people are placing on them.

"They are no longer seen as a short-term borrowing facility ? and for the 3.5 million people in this country who are permanently overdrawn, they are an absolute necessity."

The research finds that 39 per cent of people are now using their overdraft to do their shopping, 14 per cent use it to pay for accommodation, be it their mortgage or rent, while 39 per cent use it to pay for bills.

Mr White added: "With no structured repayment scheme on an overdraft, we are worried that many people will struggle to pay the debt off."

Reliance on overdrafts is not just an ailment of those on low incomes, as the research finds that nearly a third of those surveyed who earn more than £40,000 have an overdraft, with 11 per cent admitting they are permanently overdrawn.

The report adds force to recent calls for greater financial education for Britons.

Mr White said: "What our report indicates is that many people do not even think of their overdraft as a debt in the same way as they would a credit card or a loan ? with 44 per cent not even knowing what interest rate they are paying on their regular borrowing.

"At the very least, it is clear that more needs to be done by the banks to communicate the key terms and conditions governing current accounts in 'plain English', and to improve financial literacy amongst their customers."

To look for a better overdraft facility visit our banking guide