Expecting to retire at the scheme retirement

Reference no: EM13940826

Susan is a teacher in a primary school earning £33,000 p.a. She is married with one child aged 5. Susan has been employed as a teacher since 2006 and is now aged 40. Previous to this Susan worked part time in a supermarket while she was studying to become a teacher. She has a paid up personal pension arrangement with Monkey Financial Services which she has contributed into for 10 years. The paid up value is £4,800. The current scheme she is now in is a Defined Benefit Scheme with an accrual rate of 1/80th contributing 6.4% per month (her employer contributes 13% per month).
She is expecting to retire at the scheme retirement age which she believes is 67 for her. Susan is concerned with the current publicity on income for pensioners and does not want to see herself retiring in poverty. Recently Susan acquired a £10,000 lump sum from her mother to use how she wishes as her mother was distributing some of her own wealth from her estate. Susan would like to use this money for investment in a suitable arrangement for her future rather than just spend it immediately.
Required: Discuss what pensions and investment options Susan has and make some recommendations with justification for your recommendations.

Discuss the developments in relation to pensions in the UK,particularly over the last 10 years. Compare from an individual and organizational perspective.

Explore the various investment and pensions arrangements available to individuals when considering planning for their potential future retirement.

Reference no: EM13940826

Questions Cloud

What information would you request from the retailer : What additional questions would you raise, and what information would you request from the retailer to answer these questions?

Determine the minimum dimensions of the crosssection : Determine the minimum dimensions of the crosssection and the radius of curvature at the point of maximum stress.

What are challenges of creating a counterterrorism policy : What are the challenges of creating a counterterrorism policy? Counterterrorism measures and policies are being created and implemented internationally. Do you think that counterterrorism policies are effective and can help control and combat terr..

Plot the shear force and bending moment diagrams : Plot the shear force and bending moment diagrams and determine the maximum stress due to bending, the factor of safety in operation if the UTS of the material is 500 MPa, and the value radius of curvature between the suspension points.

Expecting to retire at the scheme retirement : Susan is a teacher in a primary school earning £33,000 p.a. She is married with one child aged 5. Susan has been employed as a teacher since 2006 and is now aged 40. Previous to this Susan worked part time in a supermarket while she was studying t..

What will be the effect on net income : Provide some assurance that a company was not holding uncollectible accounts in its accounts receivable rather than writing them off when they are determined to be uncollectible? What will be the effect on net income if the $100,000 is written off?

What is the dividend yield the capital gains yield : What is the dividend yield, the capital gains yield, and the expected rate of return of the stock?

What is the maximum thickness that the strip may have : A length of fl at steel strip is to be coiled around a drum 2 m diameter. The elastic limit stress of the steel is 216 MPa and its modulus of elasticity is 216 Gpa. What is the maximum thickness that the strip may have if there is to be no permane..

Redundancy kevin found alternative employment : Kevin who is now aged 32 was employed for 12 years by the Thirsty Water Company. He had worked his way up to a Project Manager from starting as a Call Centre Operator where he started after leaving school.

User Account

All Pages