tma 01
I have been asked to discuss the possible changes to income that might happen over an adult life course and how such income patterns can affect financial planning for both families and individuals.
Over the course of a person’s life they will go through certain changes, from being a youth through adolescence and becoming an adult. The thing with the life course is that everyone doesn’t follow the same pattern. Everyone is pretty much guaranteed to grow old as its basic biology but everyone is not guaranteed to say get married or even have children and what’s to say that a married couple won’t eventually get divorced. Other things that can affect us are deaths in the family or a sickness from work. All these things change the financial position that we find ourselves in and it can show weaknesses in our own financial capabilities if we don’t plan ahead.
Financial planning is a very important part of everyday life. There are other aspects of life that can affect our financial planning. One main aspect is our goals in life, be it short term goals like taking a holiday abroad next year or long term goals like saving to get on the property ladder they affect the way we spend/save our income. Another is planning for retirement and there are many things to consider, like at what age do I start to invest in my retirement fund? Where do I invest? And most importantly how much do I need to invest?
Income can come from many different revenues and for some people this can be from the government. Changes in government policies can have a significant impact on households, a good example of this is the current governments idea’s on working pensions. They have brought in regulations that every employer with a work force of over a certain size must provide a workplace pension, hence reducing the strain to state pensions. Another example is the changes made to abolish the 50 pence tax rule meaning anyone earning over £150,000 per annum will be 10% better off on any earnings
Over the course of a person’s life they will go through certain changes, from being a youth through adolescence and becoming an adult. The thing with the life course is that everyone doesn’t follow the same pattern. Everyone is pretty much guaranteed to grow old as its basic biology but everyone is not guaranteed to say get married or even have children and what’s to say that a married couple won’t eventually get divorced. Other things that can affect us are deaths in the family or a sickness from work. All these things change the financial position that we find ourselves in and it can show weaknesses in our own financial capabilities if we don’t plan ahead.
Financial planning is a very important part of everyday life. There are other aspects of life that can affect our financial planning. One main aspect is our goals in life, be it short term goals like taking a holiday abroad next year or long term goals like saving to get on the property ladder they affect the way we spend/save our income. Another is planning for retirement and there are many things to consider, like at what age do I start to invest in my retirement fund? Where do I invest? And most importantly how much do I need to invest?
Income can come from many different revenues and for some people this can be from the government. Changes in government policies can have a significant impact on households, a good example of this is the current governments idea’s on working pensions. They have brought in regulations that every employer with a work force of over a certain size must provide a workplace pension, hence reducing the strain to state pensions. Another example is the changes made to abolish the 50 pence tax rule meaning anyone earning over £150,000 per annum will be 10% better off on any earnings