A WARNING has been issued over an easy state pension mistake that could mean you miss out on £3,900.

Deferring your pension is often seen as an easy way to boost your savings pot when you do decide to retire.

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That’s because for every year you delay, you boost your pension by just under 5.8%.

But for some, it might be a big mistake, because it may then put you over the threshold for Pension Credit – a handy benefit worth up to £3,900 a year which also unlocks the Winter Fuel Payment.

The Sun was inundated with calls from hard-up pensioners during its Winter Fuel SOS phone-in last week who fear they will be unable to heat their homes without the payment this year.

Many had been disappointed to find that because they had put off taking their state pension, they were now over the limit for Pension Credit.

Now, people who might find themselves in the same position are being urged to not take the decision lightly.

The single-person Pension Credit rate is £218.15, while the full new state pension is £221.20 so if you get the full amount then you already are over the threshold.

The people who would be affected by this are those who get less than the full amount of state pension, due to the number of “qualifying” National Insurance years they have.

However, if your pension is below the full rate then if you take it on time you might get Pension Credit – as well as the WFP and cold weather payments.

Under current rules, you need 35 qualifying years to get the full amount of state pension.

For example, someone who has 34 qualifying years gets 34/35 of a full pension or £214.88.

If this person takes their pension on time, they are entitled to Pension Credit and everything that comes with it. We have explained all the perks you can get here.

But, if they defer for just one year, the extra 5.8% takes them up to £227.34 per week – above the Pension Credit level.

So, this means they then lose out for good on all the extras that come with Pension Credit.

Former pensions minister and partner at LCP told The Sun that “the lesson to learn” is that if your state pension is short of the full amount and you might therefore otherwise qualify for Pension Credit in retirement, “you should think very hard before deferring”.

He also pointed out that those who are perhaps working past pension age might think of deferring their pension for tax reasons.

This group could inadvertently end up worse off than if they had simply taken their pension on time.

Mr Webb said: “Not everyone takes their state pension as soon as they reach pension age, and the reward for deferring is an extra 5.8% on your pension for each year you defer.

“But for people whose pension is short of the full amount, there can be a sting in the tail.

“If your normal pension figure is below pension credit then claiming at retirement means you will get a top-up and all the extras which come with pension credit such as keeping your winter fuel payment.

“But if you defer even for one year, you might find your pension is now over the pension credit line and that you have lost all of that additional help – potentially for the rest of your retirement.”

Mr Webb believes that the Department for Work and Pensions (DWP) should flag to people who are thinking of deferring that they need to “think very carefully about the potential knock-on effects” of benefit entitlement before they make a decision.

If you’re not sure if you will be able to get Pension Credit, you can use our handy tool to check what benefits you’re eligible for.

What is Pension Credit and who is eligible?

Pension Credit is a government benefit designed to top up your weekly income if you are a state pensioner with low earnings.

The current state pension age is 66.

There are two parts to the benefit – Guarantee Credit and Savings Credit.

Guarantee Credit tops up your weekly income to £218.15 if you are single or your joint weekly income to £332.95 if you have a partner.

Savings Credit is extra money you get if you have some savings or your income is above the basic full state pension amount – £169.50.

Savings Credit is only available to people who reached state pension age before April 6, 2016.

Usually, you only qualify for Pension Credit if your income is below the £218.15 or £332.95 thresholds.

However, you can sometimes be eligible for Savings Credit or Guarantee Credit depending on your circumstances, even if you’re over these limits.

For example, if you are suffering from a severe disability and claiming Attendance Allowance, as well as other benefits, you can get an extra £81.50 a week.

Meanwhile, you can get either £66.29 a week or £76.79 a week for each child you’re responsible and caring for.

The rules behind who qualifies for Pension Credit can be complicated, so the best thing to do is just check.

You can do this by calling the Pension Service helpline on 0800 99 1234 from 8am to 5pm Monday to Friday or by using free online calculators.

Those in Northern Ireland have to call the Pension Centre on 0808 100 6165 from 9am to 4pm Monday to Friday.

It might be worth a visit to your local Citizens Advice branch too – its staff should be able to offer you help for free.

Pension Credit is known as a “gateway” benefit which means it opens up a host of perks, like theWinter Fuel Payment and a free TV licence if you are 75 or over.

It also unlocks discounts on your council tax and the Warm Home Discount, if you are on the Guarantee Credit part of the benefit.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

There has been an “unprecedented shift” in the variety of fee models used by financial advice firms, a new report from NextWealth suggests.

Percentage of assets remains the most common charging structure, used by 71% of respondents’ firms.

The study shows that while this charging model continues to dominate, its use is in decline – with popularity of all other charging structures rising.

Of “particular interest” is the marked rise in the use of subscription fees, which are used by 22% of financial advice firms all or most of the time, up from just 1% in 2023.

A growing number of firms are experimenting with alternative models, the report shows.

The cost of advice

The report also reveals the average basis point fee paid by clients for ongoing advice, funds, platform and portfolio management.

The total client cost increased in the past year from 1.75% to 1.89%, as estimated by financial advice professionals who participated in the survey.

Platform fees remain consistent and both funds and portfolio management are slowly trending down.

The average cost of ongoing advice is 77 bps, up 13 bps from 2023, and remains the largest share of total client costs.

Platform fees represent the smallest share at 27 bps – broadly consistent with the previous three years.

NextWealth data show that ongoing fees are fairly consistent across various firm sizes.

However, product charges tend to be higher in large firms.

Clients of financial advice firms with more than 10 advisers are paying 68 bps for funds, compared to an average of 43 bps.

NextWealth said it believes this difference is down to a higher allocation to active rather than a more expensive like-for-like product.

Initial fees

The proportion of respondents citing that they charge an initial advice fee decreased slightly by 6% compared with last year.

The big change is in the proportion that aren’t charging an initial fee, up two-fold to 23%.

Respondents from larger firms with over six financial advice professionals are more likely not to charge an initial fee.

Over half of these respondents say they do not charge an initial advice fee.

Among those that charge an initial advice fee, the average is £1,995 up from £1,800 last year.

The report revealed that the average portfolio size of clients in 2024 is £369,689.

In fact, 79% of respondents said that that clients are required to have £100,000 or more to be a client.

NextWealth said this shows an interesting dynamic – regulation is pushing financial advice professionals to provide more value for their clients but according to a significant proportion of respondents, this isn’t viable for those with under £100,000.

Confident in delivering value for money

Advisers and planners have high confidence in the service they provide their clients, but are much less impressed by some issues that are not in their immediate control.

Overall, 92% are confident in their firm’s ability to deliver good value for money, while 89% are confident in their ability to meet the advice needs of clients.

Only 26% are confident in the capability of the regulator, while under half 46% are confident in the stability of the economy.

AN iconic high street retailer will start selling vinyl records again after thirty years off the shelves.

WHSmith said it will begin restocking the vintage disc in response to growing demand from shoppers.

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As part of the roll-out, music buffs will be able to snap up records from new talent such as Taylor Swift alongside 80’s icons like Queen.

Over 80 sites across Canterbury, Chester, Edinburgh Gyle and York will stock the records – you can see the full list below.

The newsagent, which has over 1,000 stores across the high street and travel locations, has not sold records at its sites in over three decades.

Collecting vinyl records has become trendy among music fans, as they seek tangible ways to connect with music amid a rise in streaming sites such as Spotify.

Records also come with larger packaging and can include freebies such as posters or clothing.

Sales for the product grew for the 16th year in a row in 2023, with nearly six million units sold, according to data from the British Phonographic Industry.

Demand for records also helped turn around the fortune of struggling high street retailer HMV.

Last November, the music retailer reopened its site on Oxford Street after a four-year hiatus following investment from Canadian businessman Doug Puttman.

HMV shut the flagship store in 2019 after the retail chain tumbled into administration and was forced to axe stores and jobs.

It sells popular culture merchandise lines, some 20,000 vinyl albums and CDs, in excess of 8,000 4kUHD, Blu-rays and DVDs, as well as music technology products.

Meanwhile classic high street chain Our Price officially relaunched online earlier this year.

The record store was once a staple of the UK high street from the early 1970s until 2004.

Shoppers can browse the catalogue online for now only, owners have not ruled out the return to physical stores at some point in the future.

Ourprice.com stocks around 20,000 vinyl, t-shirts and a range of hi-fi and audio equipment.

Emma Smyth, commercial director, WHSmith High Street said: “After thirty years vinyl is back at WHSmith,

“I’m sure there are many customers out there who remember spending hours in record shops browsing the latest vinyl LPs and the artistic record covers.”

She added: “It’s no surprise that vinyl is growing in popularity again, and we are very excited to be bringing back record selections to more than 80 different stores across the UK for both seasoned fans and new listeners alike.”

The full list of locations where you c an pick up the latest records are:

• Berkhampstead
• Bromley
• Canterbury
• Chester
• Crawley
• East Kilbride
• Epsom
• Exeter
• Gloucester
• Gyle
• Henley
• High Wycombe
• Kingstonis:
• Lichfield
• Marlborough
• Monks Cross
• Preston Deepdale
• Romford
• Salisbury
• Watford
• White City
• York
• Jersey
• Perth
• Stafford
• Weston-super-Mare
• Northallerton
• Douglas
• Scarborough
• Buxton
• Argyle Street
• Beeston
• Brecon
• Brent Cross
• Broughton Parc
• Bury St Edmunds
• Carlisle
• Cirencester
• Cribbs Causeway
• Darlington
• Bluewater Park
• Deal
• Dumfries
• Elgin
• Ely
• Exmouth
• Grantham
• Great Yarmouth
• Hamilton
• Harpenden
• Haslemere
• Hastings
• Havant
• Haywards Heath
• Hempstead Valley
• Hereford
• Honiton
• Leighton Buzzard
• Lewisham
• Liverpool
• Llanelli
• Marlow
• Monmouth
• Morpeth
• Newport (Isle of Wight)
• Petersfield
• Sevenoaks
• Meadowhall
• Southport
• Southsea
• Swanage
• Taunton
• Teesside Retail Park
• Temple Fortune
• Twickenham
• Uckfield
• Wallington
• Warrington
• Wimbledon
• Witney

As for WHSmith, the introduction of records will be the latest move from the business to revamp its product line.

Since last year, shoppers have been able to purchase Toys ‘R’ Us products in a number of its stores.

The American toy retailer collapsed in 2018 and closed all of its 100 UK branches, but announced plans for a relaunch in October 2021.

A total of 76 WHSmith sites will have a Toys ‘R’ Us section by the end of the year.

The iconic British brand has struggled on the high street following the aftermath of the pandemic, but its travel arm has been booming.

In September it closed two stores in Sale and Bridgewater.

Despite this, WHSmith has announced plans to open 110 new shops this year in airports, railway stations and hospitals.

Retailers making a comeback

It has been a tough time for retailers since Covid and the last few years have seen many vanish from our high streets.

The rising cost of living and expensive rents have all been playing a part in the demise of some of our much-loved high street names.

Last year much-loved retailer Wilko fell into administration and closed all of its shops in September 2023, leaving Brits heartbroken.

However, a glimmer of hope was given when the brand name was scooped up by The Range, in a £5million deal – meaning that the name would live on.

Customers were overjoyed after learning the store was being relaunched online, and even more so when in a surprising turn of events, physical branches started to open up again.

Elsewhere, Paperchase is now available to purchase at Tesco stores following its collapse almost three years ago.

And there has been talk that Topshop could return to the high street after a nearly four-year hiatus.

Owners ASOS said last month it would sell a 75% stake in the brand to Bestseller, a Danish retail group that owns Jack & Jones.

José Antonio Ramos Calamonte, chief executive of ASOS, told reporters that the deal would make Topshop “more accessible”.

HEATED airers have become a popular cost-friendly appliance which help households save on energy bills.

However, many are still draining away important cash each month by placing their airers in the wrong place.

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The average energy bill is currently capped at £1,717 but you could pay more and less than this depending on your usage.

With the cap having rose this month by 10%, households are looking to reduce expenses as much as they can.

And while heated airers are usually a cheap alternative to running a tumble dryer or hiking up the heating – they could be costing you more than what they should.

Placing your airer in the wrong part of your house can extend the drying process, meaning you have to run the appliance for longer and at greater cost.

In fact, according to USwitch this could mean spending an extra 38p a wash load – pushing your bill up by as much as £90 across the year.

Energy spokesman Ben Gallizzi told The Sun: “It’s worth thinking about where to place your heated dryer in order to maximise its efficiency.”

“Try to avoid large, cold rooms that will slow down the drying process.”

He said that the appliances can cost different amounts to run depending on the amount of kWh, but under the new energy price cap can cost anywhere between 7p and 29p per hour.

This is compared to a tumble dryer which uses 2.5kWh of energy per cycle and costs 61p.

However placing your airer in a bigger room could add at least two hours to your drying time, costing as much as 38p extra every wash load.

This means if you have several people living in your home and dry three loads a week you could be overspending up to £90 on bills across the year.

This figure of course varies depending on how many people are in your home and how often you dry clothes.

The expert also advised people to “avoid areas of the house where there is little ventilation to minimise the potential build-up of damp.”

By opening windows a crack, you can make sure that all condensation leaves the room and the clothes don’t get more cold and damp.

However, it’s important to note that if you have your windows open wide, the heated airer won’t work as effectively.

This means the perfect places to dry clothes in smaller spaces such as utility rooms or spare rooms, with a window slightly opened.

It’s also useful to place the heated airer in a spot of sunlight, or a room which is slightly warmer than other parts of the house.

Other appliances which might be draining your bills

Your heated airer isn’t the only thing in your home which could be sat in the wrong spot and costing you cash.

Your fridge freezer might be eating away at your bills if there’s not enough space around it – by moving it to a spacier area, you could improve its efficiency by 15%.

Your food being stored in the wrong parts of your fridge could also be costing you cash, causing it to perish quicker and ramping up your shopping bill.

Meanwhile, your washing machine might also be positioned in the wrong part of your home which can cause mould and lead to damage costs.

And if you use dehumidifiers to tackle damp and mould in your home, they could be draining your energy bill if placed in the wrong spots.

Placing your rug or sofa over draughty areas of flooring, such as between floorboards, can also massively slash your energy usage.

And make sure that your sofa isn’t blocking the heat from your radiator – by helping the heat get the rooms of your home you could stretch your energy further.

How else you can save on energy

One important energy-saving tip to know is to never dry your clothes on the radiator, as this stops it from heating your home efficiently.

As a result, up to £55 could be wasted across the year.

The exact wastage depends on the size of your house and how much energy you use.

Heat can also escape your home through your chimney – The Sun recently wrote an article on how newspaper can be used to stop it from escaping.

By filling a bin bag with newspaper and stuffing it inside of your chimney, you could save as much as £90 across the year and reduce bills by 5%.

You could also buy a damper, which is designed to seal your chimney by blocking the flue system.

However these cost anywhere from £21 on Amazon, and as much as £84 from TLC Electrical.

Don’t forget to do regular annual boiler service checks either – they could save you up to £550 a year.

And for more energy saving tips, make sure to read our handy guide.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

RACHEL Reeves will hit 1.5million pensioners in the pocket by freezing income tax thresholds at the Budget, experts fear.

The move risks them being dragged into higher tax bands, as the state pension is set to rise.

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It will be a fresh blow to retirees, many of whom have been stung by the Chancellor’s axing universal winter fuel cash.

Jon Greer, from finance firm Quilter, said: “The triple lock may increase state pensions but, with tax thresholds frozen, many will find themselves paying taxes on what should be a lifeline.

“For those with state and private pensions, the hit will be felt sooner, eroding their incomes at a time when financial security is crucial.”

Thresholds were fixed by the Tories until 2028 but Ms Reeves is thought likely to extend the freeze.

Meanwhile, she has been pressed to find money to help support struggling town halls — as one in four councils expect to, in effect, go bust in the next two years.

One in ten council heads say they have considered asking the Government for support.

The body’s Labour chairwoman Louise Gittins described the current financial crisis as “extraordinary” ahead of their annual rally in Harrogate, north Yorkshire, from today.

She said: “The autumn Budget must provide councils with the financial stability they need to protect the services our communities rely on every day.”

BRITISH health tech firm Zoe, championed by celebrities including Davina McCall, has launched a second round of layoffs in six months.

Last year Zoe was deemed one of the fastest-growing firms in the country as health fans signed up to wear its bright yellow blood sugar sensors on their arms.

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However, in April the firm admitted that it had overexpanded its workforce and had to cut costs by 20 per cent.

The Sun can reveal it is now making further job cuts while insiders claim sales are faltering.

Sources said staff had been told via a video call there had to be further changes and redundancies were required.

A consultation with staff is now ongoing, a legal requirement for companies making cuts of more than 20 people. It has refused to confirm the scale of the job cuts.

One worker said: “There is a terrible atmosphere.

“Everyone is scared and we don’t know whether we will have jobs at the end of this four-week window. It’s just looming over us.”

Co-founder Professor Tim Spector, who started the firm seven years ago, has been credited for pushing public awareness about “gut health”.

Zoe’s cheapest starter package costs £299 and charges users a further £25 a month for recipe guides and diet tips.

The brand has a deal with Marks & Spencer to produce mini “gut shots” of fermented milk for £2 and also a cereal range with Waitrose.

The business raised £11.5million in July to fund its expansion.

The firm said: “We are restructuring our teams to continue on our ambitious mission of transforming the health of millions.

“We are dedicated to keeping our employees engaged and informed in the coming weeks.”

A RECORD HIGH FOR UK MUSIC

RAYE, Dua Lipa and Ed Sheeran helped push the value of British music exports to a record high of £775million last year.

However, intense competition from artists from Latin America and South Korea is biting into business, figures from British music industry body the BPI show.

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Last year’s 7.6 per cent rise in exports was just half the 2022 rate of growth, it said.

Britain accounts for about 10 per cent of global music streaming, with timeless tunes from the likes of Elton John, The Beatles and Queen still proving popular.

BPI chief executive Jo Twist said: “It is encouraging — but we can and must do even better in the face of fierce global competition.”

CELEBS’ AD QUIZ

TWENTY social media influencers are being quizzed under caution by the City watchdog about their illegal promotion of financial products.

The Financial Conduct Authority said there had been a rise in so-called “finfluencers”, who promote foreign currency exchanges, crypto and complex trading to users.

The FCA says they are not authorised or qualified to give financial advice.

It charged nine stars this year, including Love Island’s Eva Zapico and Towie’s Lauren Goodger, for plugging dodgy investments on social media.

TEN-PIN’S A WIN

HOLLYWOOD BOWL is striking record levels of cash after tempting ten-pin fans to spend more on its snacks, drinks, and arcade games.

The bowling alley chain, which has 72 locations in the UK and 13 in Canada, saw a 7.2 per cent rise in annual revenues to £230.4million.

UK sales rose by 4 per cent to £200million, but were flat once new openings were stripped out.

The firm has benefited from families looking for low-cost indoor entertainment in the unpredictable weather.

RATES CAUTION

ONE of the Bank of England’s rate-setters says she favours a “cautious” approach to lowering interest rates, despite some economists’ predictions of hefty rate cuts next year.

Megan Greene wrote in the Financial Times yesterday she was concerned about rushing into a rate-cutting cycle and cautioned a consumer recovery “could take much longer”.

It comes as many still have to refinance their mortgages at higher rates than before.

Goldman Sachs yesterday said rates could fall to 2.75 per cent by next November.

V.W. £27M TAB FOR CAR HELL

VOLKSWAGEN has been fined £5.4million for its unfair treatment of vulnerable customers, and told to pay £21.5million in compensation.

The Financial Conduct Authority found nearly 110,000 customers who suffered due to “serious failings” by the German car giant’s finance arm over six years.

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A probe by the watchdog revealed VW took cars away from vulnerable customers who were struggling to keep up with payments, without considering other options.

It also charged them the extra costs of repossessing their car, even when customers said they had no means to pay.

In one case, the firm took back the vehicle from someone with depression and who had previously attempted suicide, despite telling VW they needed the car for work.

The watchdog’s Therese Chambers said: “Volkswagen Finance made tough personal situations worse.

“The fine and redress should send clear signals to lenders they need to properly support those in financial difficulty.”

AXE SHOP TAX PLEA

MORE than 300 business leaders have called the UK’s tourist tax a “spectacular own goal” and urged the Chancellor to scrap it in the Budget.

Bosses at Mulberry, John Lewis and Shakespeare’s Globe wrote to Rachel Reeves to argue the UK is at a “global disadvantage” as the only country in Europe not to offer tax-free shopping to overseas visitors.

The tax is costing the economy £11.1billion, analysis by the Centre for Economics and Business Research says.