Pensions, credit scores, loud budgeting - and Usher
A longer newsletter this week; I get a bit editorial-y. There's also a poll!
Tonight is the Superbowl and Usher is taking centre state at the halftime show. If you want to see him live at his Vegas residency, that’ll cost you $470 for one ticket. His US tour presale has tickets starting from $411.50!
Ticket prices are bananas. Hundreds of pounds paid by fans for one show. A rush to get tickets, and then the queuing and travelling, and forking out on drinks and Instagrammable outfits…. And the more you’re willing to pay, the greater your chance of getting a ticket at all (see Taylor Swift, Madonna, Beyoncé).
Capitalism is real.
By contrast, I’m going to a film screening of Paris Is Burning (1980) at the Design Museum in London and Q&A with designer Ashish Gupta (who, incidentally, has designed some costumes for Taylor Swift’s Eras Tour). I paid £20 for two tickets. And, earlier in the week, I went to a comedy night with an incredible lineup (Sindhu Vee, Jessica Fostekew, Fern Brady, Sara Pascoe), 5 minutes away from my home, for £19 a ticket.
How we consume culture is always changing, as is how we define it. But it’s up to us how we decide what is truly valuable to us, by how we spend our time and money.
For example, I'd love to go to Glastonbury. But I have zero interest in spending time pre-registering and then trying to get tickets. And then planning all of the logistics. I’d actually much rather watch and listen to bits via the BBC.
And I’m into spending less than £20 on comedy, where my friend and I are happy to leave before the final act comes on, drive 2 minutes up the road in the pouring rain, and I can be in bed by 10.30.
Getting a good night’s sleep, so that I can feel like a more human human, so that I can do a better job of making money, to then invest into the things I care about, is what I’m into.
That said, if you do have a spare Taylor Swift ticket or two, do let me know! 🪩1
1. Experts say the UK state pension age will soon need to rise to 71
The Guardian
The state pension age of 66 is due to rise to 67 in a phased introduction between 2026 and 2028, and then to 68 between 2044 and 2046. But policy experts say it’s going to have to go to 71.
And, I wouldn’t be surprised if it keeps going up.2
Of course, this doesn’t mean you’ll have to work until then. If you have a well-funded private pension and other investments, you can be fine with this delay in getting the state pension.
But it does mean you need to make sure this is a financial goal of yours, and that you have a plan in place that you’re working towards.
Another story came out this week, looking at the cost of retirement. The data show that a ‘moderate’ standard of living in retirement now costs a single person £8,000 or 34.3% more than it did in 2022/2023.
It’s something we literally can’t afford to not think about.
ACTIONS:
Review your pension contributions; are you contributing as much as you can?
What other sources of income could fund your retirement?
Like what you’re reading? Show your support!
2. Credit scoring explained in 90 seconds
Martin Lewis 😍 (the UK’s personal finance expert and consumer champion) makes it simple to understand.
Credit scores aren’t as big of a deal here as they are in the US, but they are important (I’d say the same about student loans). And credit scores aren’t currently portable; if you’re new to a country, you need to build up a score in that location.
It’s essential that you have good credit and that comes from having a history of:
Companies being willing to lend money to you
Proving that you can pay back money you’ve borrowed
Demonstrating consistency in being a good credit citizen
As with everything, it’s a game. So make sure you’re playing!
ACTION: Check in on your credit score (you can create a free account on Experian or ClearScore) and see if improving your score is something you need to be working on.
3. On loud budgeting
It’s from TikTok, so of course it’s in the media too.
Definition: you’re comfortable telling the world what you’re willing to spend and what you aren’t. It’s a flex.
I’ve already told you £20 on low faff cultural experiences is about my limit. That’s me loud budgeting 💁🏽♀️
This shouldn’t come as a surprise; in a culture where setting boundaries is being celebrated, money isn’t out of bounds. But, arguably there’s a time when boundary setting goes too far, and it just tips over into selfishness.
For example, if my friend really wanted me to come to something they were super into, and it was important for our friendship, I’m not going to say no. But other people may find it easier to do that.
Such are the nuances of the human experience!
Interesting bits from this article:
People who are socialised to talk about money are often better at managing it, according to research
We are probably more impulsive with our spending because we’re always online
It’s powerful to de-stigmatise a topic that many people find shameful or awkward
ACTION: Figure out for yourself if talking about your budget rules is necessary or helpful. Only you’ll know what’s right for you.
Know someone who might like this? Sharing is caring!
A Folklore reference ;)
Some context to be aware of:
For the state pension to work, there have to be enough people working compared to the number of people taking the state pension
With the UK having an ageing population, it’s not looking good for many Millennials and Gen Z; it’s likely we will have to be working longer (this is what’s known as the pensions timebomb)
Although it would make more sense to start increasing the retirement age sooner rather than later, it’s a political suicide mission. No one wants to implement this, as older voters have such sway over election outcomes, and you don’t want to p*ss them off