Malcolm Kyle

By Sarah Coles, Dec 2, 2011 - http://money.aol.co.uk/2011/12/02/three-letters-cost-pensioners-47k/

Money is a peculiar area. Something vast and life-changing can be described in a couple of meaningless acronyms that unsurprisingly pass us by. But further down the line, we suddenly realise that three little letters have changed our world dramatically for the worse.

So it was when scores of companies quietly changed the inflation link of their pensions from RPI to CPI. What passed in a fug of ‘so what?’ was a move that could cost pensioners thousands.

Why the switch matters

They are both measures of inflation: the retail prices index and the consumer price index. The former was always used as the official measure of inflation, and was the most common indexation for pension schemes. However, gradually CPI has started to dominate and in December 2003 it became the figure used for the Bank of England inflation target. This matters because RPI includes housing costs, and as a result tends to be higher.

In fact, figures this week reveal that the gap could be even bigger than we previously thought. The Office for Budget Responsibility calculated the typical difference as 1.4 points – compared to previous assumptions of 0.87 points.

By switching from a link to RPI to a measure based on CPI, companies can increase their payouts by less each year, and cut thousands of pounds from the average pension. Using the new figures, someone retiring right now on an annual pension of £10,000 could lose out on an incredible £47,000 over the life of their pension as a result.

Can they do this?

The schemes are acting entirely lawfully. Around one in four pension schemes have permission to change their form of indexation written into them. Many have already done so, including British Airways.

Today’s ruling that the government acted lawfully when switching public sector pension indexation to CPI will help accelerate the private sector moves. Pension scheme are like any kind of reward: no company will deliberately offer more than the competition, so if the competition switches to CPI, they have no reason not to.

What can you do?

If your company decides to make the move there is little you can do other than be aware of it and make alternative arrangements where you can for more income as you go through retirement.

Tom McPhail, the head of pensions research at Hargreaves Lansdown, said: “For the members it represents a significant diminution of their pension rights. They will need to adjust their investment, income and expenditure plans in order to avoid a steady decline in their standard of living in retirement.”

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I’m working with Avalon, a UK based company who provide the best value funeral plans in the country. Opened in 1990 we have more than 45,000 satisfied clients across the UK and Europe.

We’re expanding rapidly and I currently have vacancies for 4 x Customer Service Consultants to work as part of my team, visiting clients across the North East of England in their own homes. The remuneration package provides a basic salary of £15,000 per annum however on target annual earnings of £40,000+ is readily attainable.

Candidates must be of smart appearance, good listeners and sympathetic. As many of our clients are elderly, it is imperative that our staff are trustworthy. A previous sales background would be advantageous but it is more important that the candidate is right for the role no matter what background they have. Full ongoing training is part of the role.

Telephone leads are provided and our consultants are expected to call the leads to book appointments while also using their own initiative to book appointments of their own.

Candidates must possess their own transport, mobile phone and have access to a computer.

I am NOT looking for sharp suited sales people, I am looking for calm, experienced heads that can discuss a difficult topic in a clear and honest manner and who are willing to work as part of a team helping one another succeed.

If this sounds like you. Please contact me using the contact form on this website.

Thank You

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Ofcom has fired a broadside against Talk Talk, accusing the company of behaving in an “dishonest, misleading or deceptive” manner when signing up new customers.

The regulator has accused Talk Talk of signing up new customers without their knowledge or consent. A practice known as ‘Slamming’ This latest broadside comes hot on the heels of Talk Talk being forced to pay £2.5m worth of refunds to its customers following an Ofcom  investigation which revealed the company had over-billed customers for cancelled services.

The latest allegations concern the miss selling of telephone packages. Ofcom accuse Talk Talk of “providing misleading information that is likely to affect a customer’s purchasing decision” and “engaging in slamming”.

Talk Talk is also accused of breaching rules that give customers a 14-day cooling-off period after signing a new contract.

Ofcom has given Talk Talk a month to comply with the regulations and has the power to impose a fine if the company doesn’t mend its ways.

Among the measures that Ofcom is insisting Talk Talk corrects the behaviour of its customer agents, reminding the company that “agents must not behave in an aggressive manner, including applying unacceptable pressure on a customer to continue with a contract”.

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The importance of making a will has never been more vital but of equal importance is ensuring your Will is drafted correctly, by taking very careful consideration on decisions that allocate your estate.

There is currently a wave of television programmes tackling inheritance and probate issues and they have begun to show the alarming after effects that drafting an incorrect will can cause.

One major source of problems with wills, is where people re-marry, something which is happening more frequently.

Will-writing can be a complex issue, and it is vital to have the work carried out by professional will-writers who deal with these issues every day of their working lives. I have come across some very sad cases where people have carried out simple DIY wills, only for someone to find out, when it was too late, that the will didn’t go anywhere near serving its purpose. I would strongly urge anyone to be very careful that their wishes are protected by a properly crafted last will and testament.

It’s also important to note that the laws regarding inheritance in Scotland and Northern Ireland are different to those in England and Wales, so it is important to take this into account when crafting a will.

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Last month, the Association of British Insurers warned that the cold weather could cost insurers £7m every day in claims for burst pipes and leaking water damage. It predicted that the total cost of the cold winter could top £650m. So it should come as little surprise to learn that the average building insurance policy has increased to £143 a year – a rise of 10pc, as reported by the AA in its latest Premium Index report due to be published next week.

The cost of contents-only insurance has jumped by 8pc to an average of £72 a year.

RSA, one of the World’s leading Insurance groups and owner of the popular More Than brand, has warned that premiums are set to rise even further this year, blaming the increased number of claims over the cold winter. In fact, the coldest December in 100 years weather cost RSA £142m more than an average winter with a total of 8,000 claims in November and December at an average cost of £6,700.

With increased costs on inflation and the rise in VAT, insurance customers should brace themselves for increase in the cost of cover over the next year.

The good news however is that there are steps you can take: home owners are always better off opting for joint buildings and contents policy. My personal advice is to search the market for the best deal you can find, and then come to me, as I will always guarantee to beat any like for like quote on domestic insurance.

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It was a crisp evening and the snow was softly falling, when the Networking Knight and his trusty steed “Valiant” were returning to Kyle Castle. As they approached the Draw Bridge the Knight was met by his good Lady who was rending her hair and wailing in obvious distress.

“Oh Master” she cried “a disaster has befallen us; the foolish maidservant has spilled lamp oil over the Persian rug you brought back from your last Crusade…. and it’s ruined.”

“Be calmed good lady” replied the Knight. “I shall send for the redoubtable Curry of NCF, if anyone can remove the offending Oil, it will be him. And if he can’t, we shall simply have the rug replaced on our ‘New for Old’ contents Insurance policy.”

“You see, unlike the other evil Robbing Insurance B…barons I ensure that all of my clients are given the very same Buildings and Contents protection we have ourselves, so they like us can sleep safe in the knowledge that nothing can perturb them.”

“Oh Kind Networking Knight, I thank the Good Lord every day that you decided to marry me and saved me from a life of servitude, how may I ever thank you?”

And the Networking Knight climbed down from Valiant and with a smile said “Oh, I’m sure we can think of something” and he and his Good Lady retired to the Castle Keep and the roaring log fire, secure in the knowledge that he was fulfilling his quest to protect people while helping them to save more too

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With four of the 6 Utility companies hiking their prices recently – and I’m not sure just how justifiable that is, it makes sense to ensure you’re taking steps to minimise the cost of heating and lighting your home this Winter.

Here are 5 steps that may help you decide the best course of action.

1. IF YOU HAVE NEVER SWITCHED PROVIDER, YOU ARE PROBABLY PAYING FAR TOO MUCH

Energy suppliers have a huge number of price plans, but the most expensive of all is usually the “standard” tariff, which involves the supplier sending you a printed bill at the end of each quarter which you then pay. Anyone who has not actively switched to a new plan will be on this tariff.

Customers who switch from a standard tariff to a best-buy price plan stand to save about 30%, which is equivalent to about £300 a year for a typical household, such as a three-bedroom semi-detached house with gas-fired central heating.

2. IF YOU LAST SWITCHED MORE THAN A YEAR AGO, YOU COULD PROBABLY SAVE BY SWITCHING AGAIN

Today’s best-buy tariff will typically become a little less competitive in 12 months, when the supplier brings out a new version in a bid to attract new custom. It will keep repeating the process year on year, until it is not much better than the standard tariff.

All Energy tariffs have life cycles. They can start out as the best deal on the market, but gradually end up saving you very little money. In a somewhat cruel way this is how suppliers punish customer apathy.

3. DON’T LET THE HUGE CHOICE OF TARIFFS PUT YOU OFF

There is a vast array of different price plans on the market. Which?, the consumer group, found recently that for an average household in the East Midlands there were 89 different tariffs available for gas and electricity where payment was by direct debit.

All these tariffs fall into one of three basic types:

1. expensive standard ones
2. cheaper online variety and,
3. fixed-rate deals.

Better still, you do not need to investigate every tariff on the market to work out which is best for you; a quick call to me and I will do all the legwork for you.

4. YOU DON’T HAVE TO SWITCH TO MONTHLY DIRECT DEBIT TO SAVE

The very cheapest tariffs will require you to pay by monthly direct debit, and the monthly amount, which is variable, will be decided by the supplier on the basis of actual and expected consumption. But if you prefer to know how much energy you have used and how much it cost before you pay the bill, it is still possible to find a tariff cheaper than the standard one.

Take a typical household in London. The cost for someone who has never switched will average about £1,166, while the cheapest tariff, EDF’s Online Saver 7, would cost £867, a saving of just under £300. If you don’t want to pay by monthly direct debit, EDF is still the cheapest at £938 – a saving of £228 compared with the standard tariff but £71 more expensive than the direct debit option.

5. WATCH OUT FOR THE CATCHES

Some tariffs come top of comparison sites’ tables only by virtue of rebates that you receive after a year. But as prices are variable, the price could rise before then; if you switch again you will miss out on the rebate, meaning that choosing a different tariff at the outset would have been cheaper.

Watch out, too, for charges to leave a tariff. Most discounted tariffs have an exit penalty and the best tariffs are often open to new customers only. Switching to the best deal will normally involve going to a new supplier, so you need to understand what works best for you. However some deals are available to existing customers, such as EDF’s best-buy Online Saver 7. Also, if your supplier won’t switch you to its best deal when you call – call centres often won’t offer online tariffs  – try switching via its website, or via a comparison site, instead. Or if you can’t face all the hassle, let me take the strain for you!

If you move to a new home, you will start on the energy company’s standard – ie expensive – tariff by default, even if the previous owner had switched to a better deal or you had done the same at your previous address. If that’s you, act straight away and give me a call or drop me a line.

Remember that in the vast majority of cases dual-fuel deals are better than buying separately.

Finally, a personal plea: NEVER, EVER sign up to a doorstep deal. They may be perfectly decent people just doing a job but they are simply never going to offer you a deal that’s best for you. They work on a commission only basis and will always try to sell you a deal that’s best for them, not you.

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Over the past 10 years I’ve diligently researched a huge amount of material on the principles of success. There are many variations on a theme and a whole ‘self-help’ industry has grown up around the insatiable desire for a quick-fix to success.

Naturally ‘success’ means different things to different people, so your definition of success will be wholly different to mine and that’s exactly as it should be.

I’ve taken everything I’ve learned over the past decade and condensed it into 4 clear, concise steps that are simple to follow & they’ll cost you nothing too!

1. Commitment: Not some false promise, nor half-hearted desire. I’m talking about 100% all or nothing commitment. If you’re not 100% committed to what you’re doing – stop and find something that you can be 100% committed to.

Commitment like this involves making a decision to do something and making a decision is a two-part process:

• Part 1: ‘Making the decision’ is relatively easy.
• Part 2: Burn all other options! Is far harder but it’s this second part of the process that generates success.

2. Consistency: Only with the discipline of taking action on a daily basis can you fulfil your commitments. Consistency is also about integrity, where you do what you say you are going to do, every time, without exception. Exceed expectations consistently and just watch how swiftly things start falling into place.

3. Connections: ‘No man is an Island’ was a phrase coined by John Donne in 1624, it was true then and it’s true now. In order to succeed we need the help of others, which is why we network and build relationships. Our networks allow us to reach more people through mutual collaboration.

4. Contribution: Get involved; help others connect with people they need to meet. Develop a ‘Givers Gain’ (® BNI) mentality, it will provide real momentum in your networking and is your route to success. It was Jim Rohn who said “Whoever renders service to many puts himself in line for greatness… great wealth, great return, great satisfaction, great reputation, and great joy”.

As with all things in life, knowledge is only the beginning, it’s the implementation of knowledge that is the key to succeeding; and that’s where my sneaky 5^th ‘C’ enters the fray… Challenge, for to truly succeed, you must constantly challenge yourself on a daily basis.

There are no magical short-cuts. In my examination of the successful, they are the ones who knowingly or not, apply and diligently follow these four steps.

Now you may be thinking that it’s OK to work on two or three and leave one or two off and you’d be right, it is OK… but it won’t lead to success, you need to be doing all four things to gain success. All four C’s are intrinsically interlinked and wholly dependent on each other, and if you desire to succeed, each must be given equal attention.

Wishing you the success you seek.

© Malcolm Kyle 2010

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Ofgem is to investigate Britain’s energy companies over possible profiteering after noting a sharp increase in family bills. Analysis by the Watchdog, which regulates gas and electricity markets, said net profit margins of £65 per typical customer in September was now £90, which was the equivalent to a 38 per cent rise.

The fast-track review, which will investigate whether consumers could be better protected, will take into account the recent price rises announced by three of the “big six” suppliers in recent weeks.

British Gas, Scottish & Southern and Scottish Power have all recently landed customers with higher annual bills.

They blamed the increase on the cost of wholesale energy prices, which have risen more than 25 per cent.

Alistair Buchanan, Ofgem’s chief executive, said: “With Britain facing an investment bill of £20bn over the next 10 years, consumers have the right to expect that the energy retail market is providing them with value for money. Our analysis published today shows an increase in company margins from £65 to £90 at a time of rising energy prices, which causes Ofgem to rightly ask if companies are playing it straight with consumers.”

“The energy retail market can only be fully effective if consumers have confidence that the market is transparent and easy to take part in,” he said.

“So we will go beyond our usual quarterly reports on prices and do a comprehensive review of the retail market and our recent reforms from the consumers’ perspective.

“Greater transparency in the market is good for consumers, investors and for the energy industry as a whole.”

Last week ScottishPower became the latest energy giant to up its prices, landing some customers with an annual increase of £138. The company, which has 2.5 million customers, said it was putting up its gas and electricity prices, which came into effect on Thursday.

It was raising gas prices by 2 per cent, and electricity prices by nearly 9 per cent, adding £54 a year to a customer buying both. This will take those paying the standard tariff to £1,357 a year, the most expensive on the market.

Earlier this month British Gas announced that its eight million customers also face higher fuel bills after the power giant announced it is increasing its prices.

Households will see their gas and electricity bills climb by an average of 7 per cent from December 10. It will add an additional £1.50 on a typical weekly dual fuel bill, which equates to £78 a year.

Scottish and Southern Energy said it would put up its domestic gas tariffs by 9.4 per cent from next month.

EDF has promised it will freeze its prices until after the winter. The remaining major suppliers, npower and E. ON have not commented on their plans, but are widely expected to follow suit.

The Ofgem inquiry will be completed by March next year.

The regulator’s last major investigation into the retail market in October 2008 found no evidence of anti-competitive behaviour but found 4.3 million customers without gas who had no access to the best deals on offer from providers. However, Ofgem did implement new guidelines at the time to prevent unjustified price differences, set out new standards of conduct on the level of service for consumers and tougher rules on sales and marketing as well as new rules to allow more people who are in debt to switch supplier.

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