Nobody downloaded yet

Is it worth investing in a pension (UK context) - Dissertation Example

Comments (0) Cite this document
Summary
Introduction The overall population trends in UK suggest that the population is ageing fast and more and people are going to live a life of retirement for relatively longer period of time. State benefits in UK are sufficient enough to maintain a subsistence level however, considering the current austerity measures, chances are that the State benefits for the retirements are further going to be curtailed thus leaving a larger portion of population at the mercy of the harsher economic conditions to face…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.6% of users find it useful
Is it worth investing in a pension (UK context)
Read TextPreview

Extract of sample
"Is it worth investing in a pension (UK context)"

Download file to see previous pages (Nader, 1991). As such, the overall importance of investing into pensions is critical from the point of view of maintaining a certain level of life style. It also ensures that the individuals have the sufficient funds apart from the State related benefits to maintain a very decent life style. (Lluberas, 2007). This is also evident from the fact that the overall pension funding gap is increasing rapidly every year and individuals require up to ?10,000 every year to fill that pension gap and the overall gap will be over ?300 billion per year.1 Trends also suggest that as the population ages, the overall ratio of people working to support the State Pension will decrease from 3.32 in 2001 to 2.44 in 2060. This decline in the overall number suggests that more and more people will be on the State Pension and as such the overall benefits may continue to decline due to the increasing pressure on the government to pay off State Pension to such large number of people every year. (Bonoli & Shinkawa, 2005) It is however, important to note that the different studies have suggested that the pension funds in which individuals invest for their pensions may not be performing well. Though most of the pension funds in UK achieved positive returns in 2010 however, considering the long term nature of such investments, it may be relatively arbitrary to conclude that the pension funds can provide sufficient and desired returns to ensure that the investors (individuals) will have sufficient pensions to live a comfortable retirement life. (Blake,2000) The choice of this topic has been mostly based on the assumptions that as the number of people grow and rely more on the State Pension, their overall standards of living may decline sharply when they are in the retirement age. Such sharp decline in the standards of living therefore requires that the people must consider investing into the Pensions from the days when they are earning higher amounts every year. (Cohen, 1981). A gradual contribution of the certain sum of money every year can help individuals to become more self sufficient in their retirement age. However, given the fact that the overall performance of the pension funds has not been up to the mark in recent times, a natural question arises as to whether it is rational to invest into pension funds? Could they provide the desired returns to the individuals when they are in retirement so that they can live a more comfortable life? Considering the above situation, the logical question also arises as to whether it is good to invest into pension funds? Can pension funds provide the desired level of returns over the period of time to ensure that they meet the objectives of the pension holders? The basic aim of this paper therefore is to explore and analyze the question of whether it is good to invest in pensions with special reference to UK market. This research project will also attempt to explore the question of whether the tax saving benefits can help the pension industry, are there any factors which provide the incentive to save for the pensions considering the factors such as job mobility, with the stretching of the pension age by the government, what effect this could have on the overall planning for the retirement life of the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Is it worth investing in a pension (UK context) Dissertation”, n.d.)
Retrieved from https://studentshare.org/family-consumer-science/1407413-is-it-worth-investing-in-a-pension-uk-context
(Is It Worth Investing in a Pension (UK Context) Dissertation)
https://studentshare.org/family-consumer-science/1407413-is-it-worth-investing-in-a-pension-uk-context.
“Is It Worth Investing in a Pension (UK Context) Dissertation”, n.d. https://studentshare.org/family-consumer-science/1407413-is-it-worth-investing-in-a-pension-uk-context.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Pension scheme
...jurisdictions, the employee is also free make similar contributions into the fund. The amount of money that the employee would receive each month upon retiring therefore depends on the amount of income that the accumulated money in the fund can generate. A very special feature that defined contribution pension plan possesses is that the recipient of the benefit is also entitled to any investments that the fund that was set can generate. For instance if the fund was invested into a mortgage, the amount of interest that the mortgage investment generates also becomes part of the calculation when determining how much the retiree will receive at the end of each month after...
6 Pages(1500 words)Essay
San diego pension crisis
...San Diego Pension Crisis The San Diego pension crisis has been a ghost that has haunted the administrators in San Diego over the last decade. It is said to have began a more than a decade ago when San Diego was to host the 1996 National Convention for the Republicans. There was a need to refurbish the city’s convention center in order to host the event. Instead of raising taxes or even issuing bonds to raise fund that would facilitate the rehabilitation, the officials in San Diego are said to have dipped into the pension funds of the city for the money. This was a bad precedent that would set a devastating trend way into the future. Successive local governments would use the...
5 Pages(1250 words)Research Paper
Teacher's Pension Scheme Reforms in the UK
...Teacher’s Pension Scheme reforms in the UK The Teachers Pension Scheme (TPS) of UK is a final salary occupational pensionscheme of the public service, and it is unfunded. It is regulated by the Superannuation Act 1972, which has rules and regulations that provide a legislative framework for the scheme, and most notably Teachers Pension Regulations 2010 (SI2010/990). Changes were introduced to the scheme in 2007, and these affected new entrants too. However, these changes have grown into a contentious issue with different sides holding different opinions about the reforms. This paper explores the ongoing negotiations between government ministers and union...
8 Pages(2000 words)Essay
401k pension Plan
...Introduction 401K plan is a pension plan in US which has grown so fast in the past decades. This is a form of a pension plan whereby eligible employees make their salary deductions on a post tax or on a pretax basis. You also find that the employers in this case can make non elective contributions on behalf of their eligible employees plus adding a profit sharing feature on the pension plan so that it can encourage most of the employees to invest their money with them. The earnings on such investments can be accrued on a tax deferred basis. (Ben, 2005). 401K pension plan has grown for a long time in most of the private sectors employer...
5 Pages(1250 words)Research Proposal
International investing
...INTERNATIONAL INVESTING Foreign investments and portfolio diversification  Corporation is by far the most effective form of business organization forraising financial capital, money (McConnell & Brue, 1993). It employs unique methods of finance that enable it to pool the financial resources of large number of people. This includes selling of stocks or shares of ownership of a corporation and bonds or promises to repay a loan, usually at a set rate of interest. This method makes it possible for a household to own part of the business and share the expected monetary rewards without actively managing the firm. In addition, an individual investor can spread or diversify the risks by buying the securities of several corporations... . And it is...
3 Pages(750 words)Essay
Business in Context. UK Economy
...Business in Context "Final" Table of Contents Overview 3 UK Economy: A PEST Analysis 4 The Progress of BRIC Countries in Recent Years 7 Impact of BRIC Nations on UK 9 Are Limitations of BRIC Hope for UK? 10 References 11 Bibliography 14 Appendices 15 Overview The global market faced a tremendous change because of globalization. The global market for FDI (foreign direct investment) has undergone a considerable transformation in the recent years with a significant role played by rising market of multinational enterprises (MNEs), which is most important among them (Sauvant & Et. Al., 2009). USA is the leader of Triad regions but the economic power...
7 Pages(1750 words)Essay
Pension assistant
...Additional Information for the Pensions Assistant Application: PART D Task: Additional Information for the Pensions Assistant Application According to the person specifications outlined by the board, I provide this information because my personal self-assessment reveals that I have massive experience to meet position requirements. The educational level that I have attained meets the criteria set out by the board. I have attained a bachelor’s degree, which matches the essential educational required from the pensions assistant. Furthermore, the board has not specified the training background that potential pension assistants need to have. This gives me an automatic...
2 Pages(500 words)Essay
Public Pension Funds
...Public Pension Funds Question 1 Public pension funds report that they are usually relatively well funded. However, a report from an external firm, Milliman, reported otherwise. Milliman is an actuarial firm whose credibility is ascertained. In this case, Milliman notes that there is a slight difference in the figures reported by the public pension schemes from own reports when compared to reports from private entities. However, the point in focus is that the public pension plans are relatively well funded albeit with some deficits. Milliman’s conclusion that the reports are less well funded than what is reported in their internal reports comes from the disparity that it...
1 Pages(250 words)Assignment
Pension System in China
...to these policy makers, a reformed pension system will see urban systems being sustainable, multilayered, protects at the basic level and has broad coverage. However, though the relevant authorities have placed the increasing premium on a more balanced development between urban, and rural areas, households and different regions, the pension system has a per today only contributed to divergence (Bleakney, 2013, 78). The pension system is closely related with the capital market in many ways. This is more apparent in developed countries where pension funds, especially those with large amount of assets are the key element in institutional investment in...
25 Pages(6250 words)Thesis
Pension
...retirement. The employer sets aside the certain percentage of the daily wage towards saving for the retirement plan. Occupational pension a number of advantages such as tax relief, employer contributions and making life easier upon retirement. Lastly, we have personal pensions. The pension scheme is bought from banks, insurance firms and building societies, where an individual makes regular or lump sum payments to the chosen provider. Upon retirement the amount paid depends on the average contributions of the person and amount made from the investment (GREAT BRITAIN, 2013, p.73). The pensions industry In UK is in crisis as a...
11 Pages(2750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Dissertation on topic Is it worth investing in a pension (UK context) for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us