Why many pensioners in Britain are to be hit hardest by increases in VAT

Why you should plan to make your money last in retirement
· Why many pensioners in Britain are to be hit hardest by VAT increases
· If you like cake try this recipe from 1891

Hi,

If you have been celebrating Christmas, then perhaps the last thing you have in mind is to bake a cake. Baking a New Year cake, though, seems to have been a bit of a tradition towards the end of the 19th century. So, in case you are a traditionalist at heart, I have posted on the60life.com site a recipe for such a cake-1891 style.

Also in this final issue for 2010, I give you two items indicating a need for some serious early financial planning next year…

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Why many pensioners in Britain are to be hit the hardest by the January increases in VAT
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The Daily Mail reports that more than three million pensioners will see their income fall next year. It says:

“Millions of middle-class pensioners will be left worse off next year, despite the Coalition’s pledge to increase pensions.
Official figures reveal that next week’s rise in VAT from 17.5 to 20 per cent will leave many pensioners out of pocket, even after increases in the basic state pension and other benefits are taken into account.” It continues:

“The basic state pension will rise by £4.50 a week to £102.15 in April, leaving pensioners £234 a year better off.
But for better-off pensioners the rise will be more than wiped out by the extra VAT they will pay on goods purchased.

Read more: pensioners hit hardest
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Why you should prepare for a long retirement
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…and now the better news reported this week: we are all living longer! Well, you may have heard something of this before. However, the specific projections for life expectancy put out this week are quite staggering. The following is a report from the China Daily:

‘One in five Britons to live to 100’

‘LONDON – More than 10 million people living in Britain today, almost a fifth of the population, will reach their 100th birthday, the Department for Work and Pensions said on Thursday…’

‘The rise in life expectancy means many millions of Britons will spend around a third of their lives in retirement, Pensions Minister Steve Webb said in a statement…’

“These staggering figures really bring home how important it is to plan ahead for our later lives,” he said.’

Read more : staggering rise in life expectancy

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A New Year’s cake recipe 1891 style
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And so to more Seasonable fare: A Handsome New Year’s Cake from 1891:

Rub half a pound of butter into half a pound of flour; add one cup of molasses and one of brown sugar, two pounds of chopped raisons, one pound of currants, and a quarter of a pound of chopped citron, four eggs and half a tablespoonful each of cinnamon, mace and nutmeg, and two wineglassfuls of brandy; mix all together and bake in jelly cake tins; keep the cake warm while you make, and bake in jelly tins of the same size, white cake made of half a pound of…read more at the60life.com

HAPPY NEW YEAR!

Stay tuned-in! Above all stay warm!
Remember you can pick-up more tips and news here at the60lifePosted on Categories Cost of Living, Life expectancy, Money, Recipes, Retirement, the60lifeweekly e-letterTags , , , Leave a comment on Why many pensioners in Britain are to be hit hardest by increases in VAT

…and the good news is we’re all living longer

The Daily Telegraph reports that :
‘Under the last Labour government, plans were in place to increase the state pension age for women to 65 by 2020 and to 66 for both sexes by 2026. It was then due to rise in stages, reaching 68 for men and women in 2046. However, the new figures show that life expectancy is increasing so rapidly that a child born today will live two and a half years longer than one born when Labour drew up its plans in 2006’

For the full report you can go to :
http://www.telegraph.co.uk/news/newstopics/politics/7927391/Pension-age-of-66-within-five-years.html

This rapid change in life expectancy, which seems to continue to take the fiscal planners by surprise, means the inevitable acceleration in the raisng of the qualifying pension age to a level believed to be financially sustainable for the taxpayer. The challenge for us all now is to plan for this change, and to make the necessary social and financial adjustments necessary so as to maximise the benefits to be derived from this gift of extra time.