- FACT: Almost half of pensioners would re-invest their pension pot.
- FACT: Only one in four people would consult a financial advisor.
- FACT: That’s 75% of pensioners open to be scammed.
Have you ever heard the phrase, ‘never trust a man (or woman) in a suit?’ No? that’s because I just made it up. Conjured from my grey matter upon considering how many ways people, especially our generation, can be conned out of their life’s savings.
These days to lose money you don’t even have to sign on the dotted line, apparently a brief phone call to unsuspecting pensioners and a week Thursday there’s no money to pick up at the Post office. Sure everything is digital these days, even pension payments but as of yet we humans are still flesh and blood.
That makes us susceptible to people who have more motivation to get a hold of our cash, making the most from our eagerness to ensure our already average pension pots are used to gain the most reward. During that moment of wishful thinking as to how I can increase my income, is the moment the smart snake tongued charmer will whisk away all my future money and leave me with nothing.
The house, the car, the children’s inheritance, all goes thanks to giving away too much information on the phone, letting in that door to door insurance salesman and we can even lose out to reputable companies, did you realise that!?!
Defer Some Over 50’s Insurance Packages Until You’re 93
There are a great many useful financial services for people in their fifties and sixties and they are sold properly. There are also many other businesses that like to make a profit – possibly more than they should – on your trust for future services. One such product is pre-paid funerals or lump sum death payments.
So you naturally think it might be nice to save the missus a quid or two when you pass by paying for a funeral in advance and she gets to not worry about most arrangements or financial matters too.
She’ll be unhappy you’re gone, then off to Barbados straight after… only this policy states you pay into it until you die. Hang on, if the funeral is paid for at x date and lump sum amount reached at x date, why should you pay until xx date, you may as well have simply invested in a savings account instead of paying three times over. But the rate at which funerals are increasing in price may not match the interest from a savings account, which means that you may not have enough when the time comes. The smart thing about these plans is that they can allow you to freeze funeral costs so you only pay today’s rate and not the price in 20-30 years time.
Only Yourself To Blame vs Can’t Take It With You
The Government changed the rules and any Tom, Dick and Mary can now grab their entire pension pot in one go. What possible harm could come from that I wonder? It’s your money, you’re entitled to do as you please but you may live another forty years, did you think about that before you went to Las Vegas and lost it all?
Yes there was a party of a life time but did you not at least keep half and stow it away in an absolutely fantastic, recommended to the hilt, frequently paid out, a guaranteed bonus, death payout and money for life income fund? No, well they exist and you should compare and research investment funds for pension pots before you step foot outside your home. But Vegas was good right… (Ed. Stop it!)
Budget, Be Frugal And Spend Time Not Money
There’s a reason that for almost a century the British pension scheme via NICs has worked. Because people are savvy to the monthly income. Irrespective of there being five times more people self employed today and not used to a regular income of the same amount, the stability works no matter how many people try to break, avoid or dup the system.
Know and understand how much money you have every week / month from each source, now while I don’t wish to be rude and suggest you always have money left over – it’s not easy out there, try and budget for what’s needed and spend less than you need. Saving some, reinvesting where possible in sound schemes which offer beneficial terms to you and lump sum death payouts that are calculable win wins.