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It has been revealed that an average worker in the UK would have to survive their retirement years by living on just £215 a week, less than the current minimum wage.

The Fidelity Retirement Index shows that this is a 53% drop in income for the average British worker who brings in £457 a week. Whereas someone on minimum wage can earn approximately £220 for a 40-hour week.

Simon Fraser, president of the retirement institute at Fidelity International, said: “It is a shocking thought that, if this is not corrected, we could see the emergence of a generation of private pension paupers.”

The report blames this drop on defined contribution (DC) schemes beginning to replace defined benefit (DB) schemes. Those who are on a DB Scheme can expect to retire on two-thirds of pay after 40 years of service. Unlike those who are on a DC schemes who can expect just 38% of salary in retirement.

Experian have released shocking figures showing that identity fraud has shot-up by 66% over the last year. London remains the UK’s identity fraud capital, with residents of College Gardens in Tooting being almost five times more likely to become a victim of identity fraud then anywhere else in the UK.

More than 6,000 people contacted Experian last year about credit fraud, up from 3,500 the previous year. They describe the typical victim as earning more than £50,000 a year and between 26 and 45 years old. Those who rent a property are at a higher risk due to sharing letter boxes and have the tendency to move more frequently, offering a greater opportunity for their credit histories to be misused by fraudsters.

Helen Lord, director of fraud and compliance at Experian, said: “The dramatic increases in identity fraud we have witnessed over the last few years have coincided with the increasing involvement of organised criminals in this space.” She further added that “We are all potential victims.”

Outside of London, areas at a higher fraud risk include Far Cotton in Northampton, Great Cambourne near Cambridge and Ingleby Barwick in Stockton-on-Tees.

Latest research from Sky News reports that 32% of UK families are being forced to use their car less due to sky high fuel costs. The survey, over over two and a half thousand people, reported that over over half are cutting back on their general living expenses due to rising fuel costs.

It has led many consumers to shop around to find the best deals on their petrol prices, such as using petrol price comparison websites before they fill up their tank. But it is not as easy to lose the car completely, as three quarters said that their car was vital and that getting public transport was not a viable option.

As cars as such an essential part of everyday life, such as commuting to work, it is no surprise that 88% said that they were either a little angry or very angry about the jump in petrol prices.

9 out of 10 believe that these prices increases are very unfair to the average consumer and that it was up to the Government to intervene. Over half of those surveyed were so angry that they would join in with a national protest such as a motorway go-slow convoy.

Only half of British workers could live off their savings for four months if they were made redundant, which is the average time that a person would be out of work.

Research by online bank Egg shows that the average person would need a minimum of £1,077 to meet their essential bill payments and excluding any luxury items. This figure reached £1,476 for those living in the South West, down to £952 for those living in Yorkshire.

Head of Consumer Banking and Investments, Tobia van der Meer says: “As a rule of thumb, it has long been considered sensible for families to have cash savings of at least three months income, for any of life’s emergencies.”

Barclays have announced that they will reduce their overdraft charges to customers, as a result of new changes in their handling systems which has a greater reliance on more automated services.

The bank have announced that as from the 18th August 2008, their customers will pay just an £8 charge for a returned transaction due to insufficient funds in their account, which can currently be as much as £35 across many of the High Street banks.

Barclays have announced plans of a “Person Reserve” overdraft of approximately £250 which will replace current unauthorised overdrafts. Users can access this service without repeat charges, but failure to pay off the balance within 5 working days will result in a £22 charge. The alternative will see all payments over an agreed limit bounced and face the £8 charge.

This new fee is set to rubbish industry claims over the “true cost” of bounced payments, which are campaigners predict could be as little as £2.50. This April, the OFT (Office of Fair Trading) won a High Court ruling over the issue, when a judge said fees were subject to “unfair contract” rules.

New research warns that people who regularly find themselves relying on payday loans need to reevaluate their finances for fear of a more serious debt problem.

MoneySupermarket.com have reported that since September 2007 the number of people relying on payday loans has increase by almost 55%, a very worrying figure. PayDay Loans are often lent at a much high interest rate, and those who regularly use payday loans to keep them afloat could be masking their debt problems.

There is the risk that borrowers could end up falling into a cycle whereby they pay back the payday loan the following month, effectively spending their wages before they have got them and repeating this process each month.

If you find that you outgoings are often more than your incomings, then this is a serious financial issue which you need to tackle as soon as possible. If you need help to manage debt then One Advice can help. We can offer free advice and information on a number of leading debt solutions, such as a debt management plan.

If you are paying your utility bills by cash then you might want to think again. A new study by price comparison site uSwitch.com has discovered that paying by direct debit could save consumers £75 million a year, and opting for online telephone billing could also save £162 million in charges!

A prime example of this is BT, who have recently introduced a £18 yearly charge for anyone who is settling their bills by cash, cheque, credit or debit card. Approximately 18% of BT customers are still choosing to pay by another method other than direct debit, which is bringing in an additional £52 million a year for the company.

Steve Weller, head of uSwitch communications services comments: “Some would argue that the additional charges imposed on customers not wishing to pay by direct debit are an unfair penalty. However some companies, such as Pipex and TalkTalk, do not even give customers the luxury of having a choice – it’s direct debit or direct debit.”

Average fuel prices have now risen by the highest margin this century, with diesel at almost 12 pence per litre more expensive than petrol. Combined with high oil prices this is leading to almost record breaking prices.

The highest price for unleaded fuel was seen in London to an average of 113.3p, with the national average at 112.6p. The highest diesel price was in Wales at 124.7p, with the average at 124.2p. Even though the petrol prices are climbing higher each month, the government have reported that there are only 2% less traffic on the roads.

Research by the AA shows that The UK has ranked as the 2nd highest diesel price in Europe, and 9th place for unleaded. This is leading people to leave their cars at home as the AA reveal that 16% of their 17,500 members polled had decided to travel less by car.

Ray Holloway, director of the Petrol Retailers Association, predicts that these prices could get even higher by the bank holiday weekend: “I expect that motorists and diesel users in particular are going to pay more at the pumps in the coming weeks, possibly as soon as the bank holiday, from where they are now.”

Credit cards, overdrafts and loans – this is the way that millions of teenagers are planning to fund their lifestyle, with little thought about budgeting or the risk of running up unmanageable debt.

New research from Axa found that 44% of 15-17 year olds plan on getting a credit card as soon as they are at a legal age to do so. 18% want to take out a bank loan and 17% want an overdraft.

Professor Nick Chater, a member of the taskforce, explains: “These things are seen as the norm so that teenagers think they”re only doing what is typical in expecting to get into debt sooner rather than later.”

Although these kind of financial products are acceptable if managed correctly, the study showed that there is no grip on real budgeting. 70% failed to keep within a set budget when they were given the task of managing the household budget for a week, typically overspending by 16%.

The nationalisation of Northern Rock has pushed the UK debt level above the government’s golden rule of 40%, as it has piled nearly £100 billion onto the national debt level.

The Office of National Statistics (ONS) published researched which showed that bailing out the lender has pushed public debt to 43.1% of gross domestic product.

Chancellor Alistair Darling has said that impact on public findings are “temporary and exceptional”. The Government have dismissed these findings by saying that as the move is only temporary, nationalising Northern Rock should not be taken into consideration. Without the inclusion of Northern Rock, the net debt levels were at 36.7% in March 2008.

The ONS have stated that the government should add this additional debt to the public balance sheet, which estimates the the debt is more than £3,000 for every family in Britain

Brits are a nation of Saturday spenders, typically spending more than £549,000 on Saturdays alone during their lifetime.

Figures from the Co-operative bank survey shows that the average adult will spend approximately £175 on entertainment, clothes, food, drink and travelling just on this one day; leading many to turn to their credit cards to fund this extravagance.

Product manager, Maxine Xodo said: “As a nation we work some of the longest hours in Europe and many people live for the weekend, with Saturday being the one-day where people feel they can let their hair down and enjoy themselves.”

Research showed that shows were the biggest average cost at £25.55 and was followed by clothes, eating out, drink and food. This figures should be treated as a warning, that shoppers need to have a good grip over their finances. This way they can be sure that they can afford to treat themselves and avoid getting into unnecessary debt.

In Credit Card Debt? Let One Advice Help.

As long as you have a grip over your finances, the odd spending on a credit card is not a problem. You need to make sure that you pay off your balance and avoid making just minimum payments.

But if you are finding that your credit card debt is becoming too much to handle then you need to regain control over your debt. One Advice can help you do this, we are experts in our fields and can offer you a range of debt solutions such as debt management plans or IVAs.

More than half of adults are cutting back on spending as they are unsure about their financial future in light of the credit crunch. So the average Brit has had to cut back on many of life’s little pleasures.

According to market analyst Mintel, holidays are the first thing to cancel with 20% of those surveyed saying that they would delay plans. Other cut backs include home improvement plans and saving deposits. These cut backs are most commonly due the rising costs of living, increased home bills and the need to be more careful with their finances.

Chief Statistician Peter Ayton, comments: “In light of the credit crunch, borrowing has now become harder and we are likely to see even more people having to make sacrifices when it comes to their spending in the future.”

Mortgage costs are taking most of the average income with £1 in every £4 of consumer spending, a figure which has risen 213% in the last 10 years. Ayton warns that: “Credit will now be increasingly hard to come by and the mortgage to income ratio will come down with a bump to more realistic levels.”

One Advice understands that more and more people are feeling the pinch of the increased cost in living and, as a result, your debt might become harder to pay. We can help restructure your payments so you make one lower monthly payment to your creditors, with either a debt management plan or an IVA.

Not only can an affair end your marriage but it can also get you into debt. Research from the IllicitEncounters.com website estimates that there are 260,000 people having affairs, with the average couple spending £297 for each encounter.

Spokesperson for the company said: “Life is complicated and expensive enough, they seem to be saying, plus there is a deepening concern that the harm a divorce can cause to children.”

Extra-marital dating has soared by over 60% in the past year. This shocking statistics means that the “affair economy” could rise to more than £700 million pounds each year! Per encounter the average costs are:

• £120 – £200 on a hotel.
• Up to £100 on drinks and dinner.
• Up to £200 on a new outfit and seductive lingerie.