Financial Security

Should I pay for a policy to protect myself from identity theft?

If you lose money through identity theft the bank pays. It's inconvenient because you have to write some letters and make some phone calls but the fact that the money itself has been stolen is not your responsibility, it's the responsibility of the bank. Why take out an insurance policy that won't give you any benefit?

What are the pros and cons of downsizing my property?

By "downsizing", people normally mean selling their home and buying somewhere cheaper. It may not be smaller, it may not actually be downsized in that sense. It may be a different area, it may be a different type of property. It may be a flat, rather than a detached house, which may have much the same space in it but would be cheaper. The disadvantage is that you've got to get used to living somewhere smaller, if it is smaller or living somewhere completely differently, which is difficult sometimes because you might have friends, relatives, connections, familiarity with where you live. Suddenly you're stuck somewhere that may be a lot cheaper as far as property prices are concerned but it's at the back of the yond. You may go there when you're fit and healthy and you've got a car. Ten years later you may not be able to drive and you'll be really stuck with public transport. So there's all sorts of things to think about when you move, to release money by selling your home. And the disadvantages really are those social ones. Financially, it's usually a very good deal.

What tax breaks are available for the over 60s?

There are no tax breaks for the over 60s. Once you reach 65 you can have more income each year before you pay taxes. Roughly speaking, people under 65 can have about 100 pounds a week before they have to pay any tax. People over 65 can have about 150 pounds a week before they have to pay any tax. That really is the main tax break of being older. And having said that, although it's true as your income goes above 150 pounds a week you start paying tax, if your income is high. and in these terms it means over twenty odd thousand pounds, then that tax break is progressively taken away from you. So if your income is over about twenty five thousand pounds a year, you don't get an extra tax break for being over 65.