Have You Considered Your Future?

Articles on Family | Topics: family, families, familial

You may only be in your 20s or 30s but have you ever really considered your future? Many of us never think that one day we will be old, is it not worth assessing what is available to us to ensure that we have a comfortable retirement?

Many people regard pension as a dirty word with many reports of companies going bust or miss-selling schemes, but if you don’t plan ahead, you will have to rely on any assets you have built up during your lifetime whether this be property, savings, or if you are lucky, a decent company pension scheme. However if you are not fortunate to have any of these you will have to rely on state benefits.

Historical Quote

Someone in the crowd said to him, “Teacher, tell my brother to divide the family inheritance with me.” But he said to him, “Friend, who set me to be a judge or arbitrator over you?”

—Bible: New Testament, Luke 12:13,14.

Jesus.

Whilst most of us qualify for a basic state pension, the amount you receive depends on your contribution history. For someone with the full number of qualifying years (years in which NI contribution was paid - typically 44 for a man and 39 for a woman) it is payable at a flat rate of £90.70 per week (2008/09). Whilst this is a fair amount, it will only cover the basic cost of living and it won’t allow you to live the life you want when you retire.

A cost effective way to save up some money would be to open up a private pension scheme alongside your basic pension scheme however this can prove expensive. Another option would be to get a stakeholder pension from someone such as Legal and General. These were introduced in the UK in 2001 to encourage more long-term saving for retirement, particularly among those on low to moderate earnings. Unlike personal pensions they offer low minimum contributions (the minimum contribution is £20 per month. However, a single contribution of £20 is enough to open a plan), as well as flexibility in relation to stopping and starting contributions. The features of stakeholder pensions were intended to make them cheaper to than existing personal pensions and to make saving more appealing.

The best thing to do is to assess your finances and realistic earning prospects to see if you can afford either a personal pension scheme or a stakeholder pension scheme. By doing this you are ensuring that you can maintain the life you are accustomed to after years of working.

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Please note: All personal opinions expressed in the "Have You Considered Your Future?" article belong to the contributing author and are not necessarily shared by FamilyBabyKids.com.

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