Module: Personal Finance
Lecture 10 – Pension
Things to consider
Future investment returns
Inflation
Length of life
All these things are beyond your control
Pension
A pension is a regular amount paid to an individual who is in retirement.
An amount of money paid regularly by the government or a private company
to a person who does not work anymore because they are too old or have
become ill.
Or a fund from which someone over a certain age can draw (Moxey 2018)
A Pension is a type of insurance to ensure that our standard of living doesn’t
drop too much.
Sources of pension income
State
Employer (workplace pensions)
From personal savings into a pension fund (tax incentives)
A private pension is any pension other than the state pension. Workplace
pensions and personal pensions are both private pensions.
Pensioners are likely to have more than one source of income:
State pension
One or more pensions from employer(s)
Personal pensions (from investments directly made by individual)
Investments and savings e.g. interest, dividends, property letting
Equity release from home – the bank will take a charge on the property
Inheritance
Working in retirement
Shops that recruits a lot of mature people who are over state pension age:
Marks and Spencer’s, charities, B&Q
Equity Release
Lecture 10 – Pension
Things to consider
Future investment returns
Inflation
Length of life
All these things are beyond your control
Pension
A pension is a regular amount paid to an individual who is in retirement.
An amount of money paid regularly by the government or a private company
to a person who does not work anymore because they are too old or have
become ill.
Or a fund from which someone over a certain age can draw (Moxey 2018)
A Pension is a type of insurance to ensure that our standard of living doesn’t
drop too much.
Sources of pension income
State
Employer (workplace pensions)
From personal savings into a pension fund (tax incentives)
A private pension is any pension other than the state pension. Workplace
pensions and personal pensions are both private pensions.
Pensioners are likely to have more than one source of income:
State pension
One or more pensions from employer(s)
Personal pensions (from investments directly made by individual)
Investments and savings e.g. interest, dividends, property letting
Equity release from home – the bank will take a charge on the property
Inheritance
Working in retirement
Shops that recruits a lot of mature people who are over state pension age:
Marks and Spencer’s, charities, B&Q
Equity Release
