Have you made a will? Chances are that you haven't – but that you mean to. We tend to assume that we won't die without making one. Maybe the truth is that we assume we won't die. But it's estimated that one in three UK citizens does die without making a will. And it seems that half of all of those aged 45 or over have yet to get round to it too.

If you haven't, you're not alone. US president Abraham Lincoln and artist Pablo Picasso both died intestate. But here are five reasons why it's better to make sure you've left a legal will behind you.

1. Your partner

You might assume that if you die your partner will get everything. In fact, if you're not married or in a civil partnership there's no legal provision for your partner to inherit and they'd have to make a claim on the estate in order to benefit. They'd probably have to pay a solicitor for their advice. And even then the claim may not succeed.

If you are married the amount your other half can inherit is limited by law. If you don't have children, they'll get your personal possessions, the first £400,000 of your estate tax-free, and half of the rest. The other half will be shared by your parents if they're still alive, if not by your siblings. If you have no surviving parents or siblings, your partner will get everything.

If you have children, your partner will receive your personal possessions, the first £250,000 of your estate tax-free, and a life interest in half of the rest of the estate – which will pass to your children when your partner dies. The other half of your estate will go to your children.

2. Your children

Your surviving children will share your estate if you have no partner and die without a will. If any of your children have died leaving children themselves, then their share will pass to their children - your grandchildren. But if you have dependent children and no partner - or your partner dies too - you'll have to specify in your will who looks after them and what arrangements are made for their future. Otherwise it'll be down to the courts to decide.

3. You decide who gets what

You might have a treasured object, a piece of jewellery, say, or a painting that you'd like a friend to have. To make sure they get it, you'll have to specify it in your will. The same goes for bequests to charities, or if you want to leave items or money beyond your immediate family.

4. The hassle factor - and avoiding costly disputes

Sorting out the estate of someone who's died without a will can be enormously laborious and time-consuming. First-line responsibility for sorting it out will go to your partner - the person who's probably most affected by your death. By leaving a will you can appoint additional executors who can give support and may be better equipped to deal with the situation. And any disputes arising from your lack of will are sure to become expensive when solicitors are taken on to deal with them.

5. Inheritance tax

If you leave everything to your partner in your will, they usually won't have to pay any inheritance tax, however large the estate. If you leave money to others, the first £325,000 is tax-free, but inheritance tax of 40% has to be paid on bequests above this amount. By making a will you can arrange your affairs to minimize the amount of inheritance tax that's liable to be paid on your estate.

Making a will

You can write your own will - as long as you are aged 18 or over, are mentally capable and have your signature be witnessed and signed by two witnesses. But to ensure there are no later problems, it's advisable to consult a solicitor or will writer. Before you do that, you'll need to make a list of what you own, decide who you want to benefit, who you want to look after children under 18, and who your executors will be.

And finally…

Once you've made a will – which must be witnessed by two people – it's recommended that you keep it a copy in a safe place, such as with your solicitor or with your executor, and then update it every five years – or after major life changes, such as the birth of children, a marriage or a divorce.

- Get professional assistance with writing a will »

Source: www.direct.gov.uk

Here in the UK, we have the highest net household income in Europe. Congratulations, right?

A survey shows that we earn £10,000 more on average than workers in nine of our neighbouring countries.  In a recession, that must be a relief.

But a new study shows that this can't buy us more quality of life than our European neighbours.  Workers and pensioners in neighbouring countries seem to be enjoying longer holidays, earlier retirement and lower costs of living than we do.  In fact, in the quality of life league table, we're seriously lagging!

Could it be that earning less would help us to be happier?  Or is it more complicated than that?

Findings

The study, commissioned by uSwitch, compares the UK to nine other European countries on these 17 factors designed to measure quality of life:
 

Household income after tax	VAT rate	Education spending
Working week (hours)	GDP per head	Health spending
Holidays per year	Petrol price	Food prices
Retirement age	Diesel price	Alcohol prices
Life expectancy	Gas price	Cigarette prices
Hours of sunshine	Electricity price

On the first measure, net household income, it's remarkable how far ahead of the pack the UK finds itself.  Household earnings of £35,730 (based on a two-earner married couple, one part-time, with two children) are fully £10,325 above the European average, and nearly double that of Spain, the lowest in the table with £16,789.

However, it's the other factors that let the UK down.  We work harder and longer, for a start.  Our working week isn't the longest, but our statutory holiday entitlement is lowest, even after including our 8 public holidays. And our retirement is 6 months later than average, behind only the Swedes and the Dutch.

Plan for a better retirement – get guides and advice here »

Costs of living are another bugbear for the UK in the survey.  Only fuel, energy, food, drink and cigarettes are measured, so the costs of housing and other consumer goods are missing from the picture.  Nevertheless, we pay above average for a basket of groceries, a bottle of wine and a smoke than the average European consumer.

You could argue that beer, wine and cigarettes aren't essential for quality of life, and to some extent neither is petrol or diesel, but we certainly pay more for one essential — household energy bills.  On gas prices, we're actually below average, but on electricity only Ireland and Italy pay more.  At 15.3p per kWh, the UK's average price is two pence over average.

Pay less on your electricity or dual fuel: calculate the difference »

State healthcare spending is also lower in the UK than average, at 8.2 per cent of GDP.  Again, this isn't a definitive measure of life quality; but it does make you wonder whether you'll be adequately provided for compared to, say, a German, Dane or Frenchman.

Thought about private health insurance? Get a quick quote on what that would cost »

Clearly these 17 measurements aren't a complete picture of life quality. I'd add a couple more to that list — time spent in traffic jams, for example, or cost of public transport.  I'd be interested in which countries have lower crime rates, more affordable housing and classier romance novels. Nevertheless, are these findings enough to tell us that perhaps some of our neighbouring countries do enjoy a better life despite lower after-tax earnings?

Looking beyond income...

Let's take a look at uSwitch's table-topper on the overall balance of measures. Why does France seem to have it so good?

They retire earlier than we do, at an average age of 59.4 years. They live longer, by a whole two years - the French life expectancy of 80.9 years is the longest in Europe.  Perhaps that's related to the table-topping 11 per cent of GDP their nation spends on healthcare?

Either way, that gives the French on average 5 extra years of retired living than we can expect.  They're not top of the table for holidays (34 days a year) or sunshine (1,967 hours a year), but they certainly have more of both than we do (28 days and a relatively gloomy 1,476 hours by comparison).

Is a longer retirement a big part of quality of life?  What do you think?

And how about Spain — second in the league table? Does it really come down to sunshine, long life and wine?

They actually work more hours in the week than we do, but that's offset by their holiday allowance — an impressive 41 days a year, when public holidays are added to the statutory minimum for employees.  Maybe there's a relation between this and the lower Spanish average household income, but hey — would you rather have the cash, or the time off?

Sunshine of course is a natural advantage that no amount of economic meddling could change.  But the Spaniards have a couple of other ways to keep smiling.  They pay less for fuel and household energy. And you might not be surprised to find they enjoy the lowest prices on a bottle of wine or a round of beer — paying nearly 40 per cent less than in the UK!

What's more important for you?

Longer life, cheaper goods or a higher income?

Would you sacrifice household earnings for some of that elusive quality of life?  Or do you think recession is already persuading us to do that?

Retirement: that's when you reach the age you can claim the state pension and put your feet up, right?

Wrong.

Or at least, not so if you expect to enjoy retired life like the current generation of "Go-A-Ps"(go-getting active pensioners)!

Retirement should be viewed as a point you reach in your working life where you have enough saved up to live off for the rest of your days.  Personal pension savings are going to be vital, as state and employer provision become less of a thing to rely on.

Unfortunately, for many of us – wherever we are on the retirement savings scale – time is not on our side.

Don't panic just yet though – and don't glaze over.  There are ways to avoid retirement income crunch. Let's take a quick glance at some of the realities: what you can expect from the state, what you can do for yourself, and when you should act.

An income, not an age

In 1964, Prudential ran an advertisement in Life Magazine promising that "[Retirement] could be the most rewarding years of all if you have faced the third moment of truth: The key to a happy retirement is an income you cannot outlive. Start planning now."

If that was true then, it's even more true now.

Work pension schemes are becoming less common, especially the most rewarding 'final salary' schemes that are being phased out by nearly every major employer.  And as fewer of us work a lifetime for one company, we're far less likely to be provided for in retirement through our jobs.

As for the state pension? You wouldn't be wise to rely on it, and here's why: nobody expected so many of us to live so far beyond our 60s.

The powers that be know that; they're facing the inevitable and raising the retirement age. Recent legislation is already increasing the retirement age progressively to 68 for both men and women, and there's every chance that it will go up to 70 or even higher during our lifetimes. Speaking to the BBC last week, the Pensions Regulator's chairman David Norgrove said:

"People are going to have to work longer. We as a nation are not going to save as much for retirement as we did in the past."

Here's what the state provision currently amounts to:

• There's the basic state pension, which just went up to £92.25 a week for a single person, or £152.30 for a couple. Remember though, this counts on you having paid National Insurance Contributions for a minimum of 30 qualifying years during your working life. (If you're unlikely to reach this, you can top up by purchasing additional weeks and years - call 0845 601 2923 if you need to check this out).

• Then there's the State Second Pension (SSP), which is earnings related. This used to be called SERPS. It's a top-up for those who have paid above a certain threshold in National Insurance Contributions per year.  By 2030, it'll be a flat rate top-up for the basic state pension.

That's at today's rates, but even if you can claim both components of the state pension, it doesn't add up to much of an income, does it?

The reality is that most workers face a huge drop in income when they retire.

So what can you do?

Planning

Sooner rather than later (how about now?!) you need to make two outline plans: how much you'd like to live off, as a proportion of your income today, and how much you'll need to put aside each month in order to make that a reality.

A detailed breakdown of how you should plan your retirement income is beyond the scope of this article, but we can make a few generalisations:

• If the thing that will stop you saving now is the fact you're in debt, that's the first thing to solve: get a debt repayment plan
• If your mortgage repayment is so high that it stops you from saving, switch mortgages if you can; we've got the lowest base rate in a lifetime
• Or look at an offset mortgage, which saves you paying tax on the savings part of your mortgage-savings balance
• Now re-do your monthly budget, taking a careful think about lifestyle now vs. lifestyle when you retire.  How much could you afford to put aside?
• Remember that pensions are terrifically tax-efficient, but they're also locked away for a long time.  If you want to save but also would like access in an emergency, look at an ISA which is also a tax-efficient way to save
• For the next bit, you really need an adviser: Having worked out how much you could afford to lock away monthly (hopefully at least 10% of your take-home pay), work out how much of a pension fund that monthly contribution could afford you, when invested wisely.
• If that's still looking nowhere near enough: go back to your monthly budget and ask tougher questions about what you could avoid spending now to invest for later!

Living the life

Today's retirees do a lot for themselves that you couldn't do if you're living off pennies.

A recent study from Aviva shows that the O.A.P. stereotypes are being replaced by "Go-A-P"s, go-getting active pensioners who spend an average of £2,256 a year on socialising.  They report that the first year after finishing work is the most fun, with romance also receiving a boost!

Admittedly, there are ways to achieve a decent retirement income even if your pension is a bit meagre.  There are the equity-releasers: those who pull money out of their home's value in order to live off now.  It means effectively cashing in your property, so it's a bit of a risk as you don't know if you might need the proceeds later (e.g. for care home expenses in ill health). However, many over-55s mischievously view it as "spending their kids' inheritance", leaving the younger generation to prosper for themselves!

- Get equity release advice »

There are also ways to maximise your fund when retirement is imminent: shop around for a decent annuity.  The annuity rate you get when you cash in your pension fund makes as big a difference to your retirement income as the rate you get when you invest it in the first place.

- Get a better annuity quote »

So if you don't want a retirement in rags, take our bullet-point steps above, or think about some of these income-boosting options as well...

...either way, don't do nothing and end up as a "Woe-A-P"!

It's political conference season and one four letter word is dominating the debates:

Cuts.

At the TUC conference in September, Gordon Brown finally rose to the challenge of uttering 'the C-word' – so-called because officials refused to say it, instead talking more vaguely about 'redefining spending priorities'.

Now the debate has truly been ignited about what cuts a future government might have to make in order to reduce public spending and rein in our galloping national debt.

The plans will have to be 'prudent', all parties agree.... but it's fair to say the prospects won't be particularly pleasing!

Certain public provisions are taken for granted here in the UK, but would anything be safe from cuts? The picture is far from clear, so it got us wondering: what might we have to cut back on once the country realises how broke it is?

Here's our (possibly playful) list of five perks we might soon have to pay for!

Pens & Pencils

Pity the schoolteacher who has to buy pens for her pupils! Education budgets are sure to be plucked at by penny-pinchers, and the pencil supply might just run dry...

Playtime

Playing twice a day could be pushed into the past as budget pressures pile up – "time is money", after all – and playgrounds could be pawned to developers (everyone knows property prices pick up if they're near a good primary)...

Passports

Pockets will probably be plundered for your next passport, as the government plies the ID card scheme with less propping up from the public purse.

Pensions

Plainly, the pension pot is taking a pounding, as plenty of the population are plodding on for longer. If you're picturing a perfect retirement, personal planning will be paramount!

Protection

Public money might be pulled from the Trident missile replacement, and private measures might have to be taken. Perhaps we'll have to plant a protective privet hedge?

Postmen

Poor old postmen! Since the carve-up of the postal market, profitable services have been preyed on by private firms, while Royal Mail has to keep plugging away at the plain old overnight letter post. Perhaps all subsidies for this will be cut and we'll have to pick up our pile of post from the local sorting office ourselves?

What do you think of our list?

Provocative? Perplexing? Pushing things a bit too far?

Don't take our list too seriously please – but feel free to leave feedback in the comments below!

There have been lots moves in the mortgage market recently and now mortgage lenders have made another decision.

They are abandoning long term mortgages!

While on the face of it Manchester Building Society withdrawing its 30 year fixed rate mortgage might not seem a big deal, its decision actually means that you can no longer fix your mortgage repayments for more than 15 years.

Back in 2007, Gordon Brown requested that mortgage lenders make more long-term fixed rate mortgages available in order to reduce instability in the housing market, and several moved to fill this gap in the market.

Overall, many lenders were sceptical and pointed out that many of us had concerns about being locked into mortgages that could prove costly.

In July 2007, just three building societies were offering 25 year fixed rate mortgages.

In January 2008, eight such products were available if you were looking for a long term fixed deal, with Nationwide, Halifax and The Co-operative Bank all entering the market.

However, by January this year, just Manchester BS, Scarborough BS and The Co-operative Bank remained and with the Manchester’s announcement they had pulled out of the market, it was the end of the long term fixed rate mortgage as we know it.

Britannia Building Society is the only mortgage lender giving you the option of a 15 year deal but it comes with a starting rate of 6.49%.

In addition, there are now only nine lenders currently providing 10 year fixed rates, with most lenders offering you a maximum of just 5 years.

Read: Would you pay the penalty for a better remortgage?

Moneyfacts.co.uk spokesperson Darren Cook explained that the base rate is largely to blame for the lack of these mortgages, because lenders do not want to offer a long term fixed rate mortgage when interest rates are low, saying: 

"Raising the capital when interest rates are so low is difficult. Investors expect a higher rate of return than those currently being offered for terms of ten years plus, as the only way for base rate to go from here is up.

With so little funds available, lenders are concentrating on their core business of shorter term deals."

Read: Will overpaying your mortgage save you money?

Long term deals may be unappealing to many of you, especially in the current economic environment and unsurprisingly, many of you do not want to be locked into long term important changes afterwards.

It seems that apart from the difficulties lenders may have funding long term mortgages, because as we are now in a recession, few of us are attracted to long term mortgage deals anyway!

Both us the consumer and mortgage advisers like prefer the frequent turnover of shorter term deals as they can ensure we are the appropriate deal for the market conditions and for our individual circumstances.

So, what do you make of lenders getting rid of long term fixed rate mortgages?

A good decision given the circumstances or something that will prove a mistake in the future?

- Claim back your mortgage exit fees

- Get unbiased mortgage advice