Posts Tagged ‘investment planning’

Planning your Pension

Thursday, May 19th, 2011

Most people think that their UK State Pensions will be sufficient to tide them through in their retirement years. Quite simply, this is not true. Very few people can live comfortably just from their pension and in fact the pensioners of tomorrow may well be worse off than their equivalents in the 1980’s.

Introduced in 1908, the UK State Pension at which time was a means tested pension that was paid without recipients ever having had to pay into the scheme. It needed, an still needs a constant supply of tax payers to fund the scheme.

The Socialist government, just after the war introduced National Insurance Contributions and the idea was that everybody would pay National Insurance Contributions and then everyone would be able to draw a basic state pension which would provide enough money for a reasonably comfortable standard of living during their retirement years.

The UK Basic State Pension has risen from around 23 a week in 1979 to 97.65 today, and from 152.30 to 156.15 for those who are married. In the meantime, the average size of a private pension fund is just over 24,000 although just under two thirds of annuity purchases are for less that 20,000.

On those amounts, a non smoking male aged 65 can expect to receive an approximate income of 1,600 a year, and plus a state pension this would amount to just over 6,000 per year. This is quite clearly not sufficient to attain the degree of comfort in retirement that most would like to enjoy.

Regrettably, the idea of retiring at a set age for most of us is a thing of the past. We will only be able to retire when we can afford to do so as we will not be able to afford the standard of lifestyle to which we have become accustomed unless we aree happy to live on substantially less than we are used to.

However, all is not lost, by taking control and planning our pensions and retirement, from the earliest possible age, we can invest for our future rather than leaving it to chance. Making the decision to invest for the future at the start of our working lives, will pay dividends at the end of our working lives, which, after all is the time when we deserve to benefit from the fruits of our labours.

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The Benefits Of Future Investment Planning

Saturday, August 7th, 2010

Every family should plan a future investment. Insurance is the best risk covering investment. Life time coverage of any type of loss like life, health and property comes under insurance. One can save tax by making investment in insurance policy.

The uncertainty of life can bring disaster. If you are the single earning member of your family you should step forward to secure your family by covering under life insurance. It gives security to them who depends on you for their sustenance. A large investment can fulfil your family’s desire in future. An insurance policy is dependent on your age, health, retirement plans, income, assets and wealth. You can invest in insurance policy to safeguard your wealth for coming generation. You purchase life insurance certificate to remain independent when the policy holder dies.

A nuclear family consists of three to four members. Both husband and wife are earning. You can guarantee your future through life insurance. It provides optimum utilization of your present income. It maintains your living standard. You can cover your future unpredictable expenses. It insures your property. It helps you to get retirement benefits. You can purchase property and make policy for your child’s education. You can have the benefits of health insurance.

You should pay premium in time after a short interval. . You can have insurance coverage from your insured value after your death and even on your survival. Mutual fund is a scheme of insurance policy which gives maximum returns after a short period.

There is a difference between term and whole life insurance but you have to make a choice between them. The premium of term life insurance is low at the beginning but it increases with the growing possibility of death. It has minimum coverage. The premium of whole life insurance does not change through out your life time but its coverage is high. For small business owners, they should know that the entire business as well as automobiles associated like the commercial flatbed truck comes under insurance coverage.

You should make an insurance policy to overcome insecurity in future. By doing this you assure the bright future of your business and family.

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