Unit 34: Investment Opportunities
& Financial Planning ASSIGNMENT
3
, P5: Produce suitable pension/investment plans for a range of given individuals that consider the
individual's financial life cycle.
My employer, Age UK, is a charitable organisation that provides information to people living in the UK
about the many pension options available to them. After receiving a letter from her employer 3T LTD earlier
today, Miss Muna Ali came to see me. She is confused about pension plans and would want me to explain
them to her in greater depth so that she can comprehend what they are for. She says this because she is
unsure about what they are for. Last but not least, I will give her my opinion on whether or not she should
participate in the pension plan.
financial life cycle
Childhood
The first stage of the financial life cycle is childhood. During this period, a child's financial requirements are
low, yet they may be highly dependent on their parents. If the parent chooses to save money for the child
through investments, the child would be well benefited by the time he or she becomes an adult. This
obviously depends on the age at which the parent decides to begin saving and how much profit has built
over the years. Due to their reliance on their parents, a child has low financial requirements. Their primary
motivation for spending money would be to satisfy their cravings for sweets and gadgets. Parents are most
likely to open a savings account for their children in order to provide them with long-term support. For
short-term fixes, though, they may receive pocket money.
Adolescence
The second stage is adolescence, which occurs when a child is in his or her teenage years and wants to be
more autonomous but is typically financially unstable and under the care of his or her parents. However,
they would be less dependent on their family and would socialise elsewhere. This may involve a part-time
work or additional money used to pay for novelty, gifts, or personal things. Additionally, adolescents may
rely on pocket money and holiday gifts from family. During adolescence, adolescents aspire to become
more autonomous and become less dependent on their parents as they begin to socialise away from the
home for the first time. It is normal for individuals at this stage of life to convert from pocket money to a
part-time work as their primary source of income. As there are several significant birthdays during this
month, it is more probable that you will receive cash than the gits you usually save for a larger buy.
Young adult
The third stage is Young Adult, which provides a young person with a variety of chances because it marks
the beginning of the path to maturity. Financial demands may include going to college, therefore college
tuition, student loans, or costs with friends, family at part-time employment, and perhaps the beginning of
a career. The fact that they are eligible for credit and debit cards is a plus. Which would aid in paying off or
saving for a car, apartment, or house. Also possibly seeking to marry and raise a family. Consequently, they
would need to earn their own money to sustain themselves, but some may still receive financial support
from their families. During this period, duties begin to shift. This is the point that you begin spending more
money, as you must now provide for yourself by purchasing groceries and paying your own rent. The
primary focus would be on college or just beginning a profession, at which point you would contemplate
taking out a loan that you would eventually have to pay back.
Middle age
Middle age is the time where the majority of people have settled down with a family and must begin saving
to support them. The funds could be used for groceries, weddings, college/work, etc. They would most
likely be paying a mortgage, planning for the future, and having pensions/retirement programmes. This
stage enables a person to enjoy having access to greater earnings for larger indulgences, such as
international vacations. Each scenario would have a different effect on their spending; for example, raising
& Financial Planning ASSIGNMENT
3
, P5: Produce suitable pension/investment plans for a range of given individuals that consider the
individual's financial life cycle.
My employer, Age UK, is a charitable organisation that provides information to people living in the UK
about the many pension options available to them. After receiving a letter from her employer 3T LTD earlier
today, Miss Muna Ali came to see me. She is confused about pension plans and would want me to explain
them to her in greater depth so that she can comprehend what they are for. She says this because she is
unsure about what they are for. Last but not least, I will give her my opinion on whether or not she should
participate in the pension plan.
financial life cycle
Childhood
The first stage of the financial life cycle is childhood. During this period, a child's financial requirements are
low, yet they may be highly dependent on their parents. If the parent chooses to save money for the child
through investments, the child would be well benefited by the time he or she becomes an adult. This
obviously depends on the age at which the parent decides to begin saving and how much profit has built
over the years. Due to their reliance on their parents, a child has low financial requirements. Their primary
motivation for spending money would be to satisfy their cravings for sweets and gadgets. Parents are most
likely to open a savings account for their children in order to provide them with long-term support. For
short-term fixes, though, they may receive pocket money.
Adolescence
The second stage is adolescence, which occurs when a child is in his or her teenage years and wants to be
more autonomous but is typically financially unstable and under the care of his or her parents. However,
they would be less dependent on their family and would socialise elsewhere. This may involve a part-time
work or additional money used to pay for novelty, gifts, or personal things. Additionally, adolescents may
rely on pocket money and holiday gifts from family. During adolescence, adolescents aspire to become
more autonomous and become less dependent on their parents as they begin to socialise away from the
home for the first time. It is normal for individuals at this stage of life to convert from pocket money to a
part-time work as their primary source of income. As there are several significant birthdays during this
month, it is more probable that you will receive cash than the gits you usually save for a larger buy.
Young adult
The third stage is Young Adult, which provides a young person with a variety of chances because it marks
the beginning of the path to maturity. Financial demands may include going to college, therefore college
tuition, student loans, or costs with friends, family at part-time employment, and perhaps the beginning of
a career. The fact that they are eligible for credit and debit cards is a plus. Which would aid in paying off or
saving for a car, apartment, or house. Also possibly seeking to marry and raise a family. Consequently, they
would need to earn their own money to sustain themselves, but some may still receive financial support
from their families. During this period, duties begin to shift. This is the point that you begin spending more
money, as you must now provide for yourself by purchasing groceries and paying your own rent. The
primary focus would be on college or just beginning a profession, at which point you would contemplate
taking out a loan that you would eventually have to pay back.
Middle age
Middle age is the time where the majority of people have settled down with a family and must begin saving
to support them. The funds could be used for groceries, weddings, college/work, etc. They would most
likely be paying a mortgage, planning for the future, and having pensions/retirement programmes. This
stage enables a person to enjoy having access to greater earnings for larger indulgences, such as
international vacations. Each scenario would have a different effect on their spending; for example, raising
