A Gift Card to a Local Establishment

This is a great gift idea for those who weren’t close enough to the retiree to choose a more personal item. It can also be the best option for a group of colleagues who want to team up and collectively wish the departing worker well, as with larger teams, it is unlikely that everybody in the office knew them to the same degree. Gift cards can be particularly apt where there is a local restaurant or other business where employees tended to gather after work – by paying for a meal or two there, you’re paying tribute to the years that the retiring person spent as part of the team.

Evening Classes

Following retirement, we are left with a large gap in our days. Though most people will probably have a few plans for their activities as a retiree, it’s always going to be true that they will have more free time. What better gift than a way to fill that time with a new hobby, or encouragement to rediscover an old one? Evening classes can be a great way to show that you’re thinking about the individual concerned. Top choices include cooking and language classes. The latter will surely come in handy during all the traveling they’ll have time for!

A Drink

Not just any drink, of course. It has long been a tradition in certain professions to give a bottle of expensive scotch to departing colleagues. Obviously, you can vary this according to the individual involved, and could choose wine, craft beer, or some other tipple. Not only will this be pleasant to drink in its own right, but it could be reserved for a special occasion when the recipient can look back fondly at their time with the company.

Charity Fundraising

Finally, one great gift idea is to make a donation to the retiree’s favorite charity on their behalf. This can be perfect for those who are difficult to buy for or who are set to live very comfortably in their retirement, as it recognises them for their service whilst supporting a worthy cause. If the whole team pools their money, it might even be possible to present more personal proof of the gift. For example, if the money raised was sufficient to purchase a computer for a school in a developing country, you might be able to give the retiree a letter of thanks or a photo from the school.

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It’s vital we take control of our own retirement funds, as the state pension is likely to be obsolete in a few year’s time. As we have a greying population, there aren’t enough people working to make national contributions to therefore fund the state pension. With the introduction of the new workplace pension scheme, the government are putting in measurements now to ensure people start a pension. The changes are being phased in slowly with large companies needing to enroll staff into the pension scheme.

However, it’s a good idea to start your own personal pension plan if you’re self-employed or if your company isn’t getting involved in the schemes yet. Many high street banks offer personal pension plans and are a good place to start when seeking a pension. When you come to retire, you will have to consolidate your pensions and buy an annuity. An annuity is a type of insurance policy which guarantees to pay you a certain amount each week or month when you retire. This ensures that you will always have money during your retirement. The insurance company estimates how long you’ll live and then uses this in order to deciding how much to pay you.

Buying an additional property will give you a steady income per month through rental payments. A buy to let can give you a great return on investment, especially if the property is bought in a sought after area. Currently rental prices are exceeding mortgage costs each month. However it may not be a good idea to buy an additional property if you have an existing mortgage to pay, as additional debt can become unmanageable. It’s better to pay off your existing mortgage and then potentially release some equity in the home for retirement funds. You could even downsize your property.

Bonds are a good way of saving for retirement. Bonds enable you to loan a certain amount to a company and then receive interest from that loan amount. Once the bond expires, you then receive the initial money back. It’s a way of putting money aside for the future.

Stocks and shares are a way of keeping some funds back for retirement but can be volatile. By buying shares in a company you are able to gain access to some of their profits. However it’s a risky strategy as companies profits can drastically fluctuate. Before deciding on buying shares, assess how much you want to risk and what you’re comfortable with and choose companies accordingly.

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The government’s current “White Paper,” outlining the new single tier plan, is expected to affect different age groups in a number of ways. People who are already receiving a pension will see no changes at all. If you qualified for the “Sepr,” then your payments will continue as before. People already receiving a pension may have been better compensated had they chosen to wait until 2017 before filing, but they have nothing to be concerned about today.

When the New Program Begins

In 2017 the new program will be applied for anyone not currently receiving a pension. One of the changes that will come into effect at that time will be the elimination of the second pension, as the universal flat rate is scheduled to begin in April 2017. Effectively this new universal pension will provide much needed clarity for those who are trying to plan in advance for their retirement. Those who currently have private pensions should take this opportunity to have a pension review with their advisor.

Citizens will know exactly what their government pension will be at retirement, thereby allowing them to plan for their retirement years. As they plan throughout their lifetime for retirement, they’ll be better equipped to judge if they need to put money aside for their retirement years, so they’ll be able to live the lifestyle they want.

Help for the Self-Employed Population

People who are currently self-employed will now benefit under the government’s new plan. Currently, few have funds set aside for their retirement years. With the introduction of the new state plan they will now be able to become part of the new pension system for the first time. The self-employed welcomed this change as it will help them in preparing for retirement and those who do have private pension plans setup can take this opportunity to do a pension review, in order to take into account the new system being introduced.

Caregivers and Mothers

Caregivers and mothers who have not been part of the workforce for any extended period will also benefit. In fact, the new pension plan is expected to affect over 750K people who are considered earners with a low income. Those who do not have 10 years of contributions to the NI will not receive any pension and it’s crucial that they plan for their retirement. Part of that planning will be looking at other options in the marketplace that will help them save for retirement.

Those who currently have accrued pension benefits within the system are assured by the government that they will not be denied any benefits they currently have in the system. Those who will be entering the workforce or who have been recently employed will lose some benefits. This can be offset by knowing what their pension will be upon retirement, thereby allowing them a maximum amount of time to plan for their future. The small reduction in their pension should have no real effect on their retirement years from now. It also gives them time to look at private pension schemes to ensure their future is comfortable.

Retirement in the Future

People who are years away from retirement will have a distinctive advantage. They’ll have years to invest their savings and make plans for the retirement they’d like to have. Financial advisors will be part of their plan in setting long term goals for retirement, doing a pension review regularly, and it’s expected that the generation entering the workforce today will understand the value of planning for the future. It also means that they’ll not lose any pension benefits, as the means testing will be removed.

With the government’s new plan of yearly retirement funds of £7,500, this new generation will see the benefits of a company’s pension plan, look at other investment vehicles and it’s hoped that in the future the country will never again face any type of pension crisis. The bottom line is the entire country will have time to absorb the changes, plan with a financial advisor for the changes and look toward a more secure future.

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The investing backdrop is highly volatile. As a result, keeping a track of the popular investment trends becomes all the more difficult for the lay man. For that reason, people interested to make some money through the smart utilization strategies need to have a working knowledge of financial products and the appropriate ways to invest in them.

Basic principles of investment

Here are some of the evergreen principles of investment greatly popularized by legendary investor, Benjamin Graham who is widely known as the mentor of Warren Buffet, the near infallible investor of all time:

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