The Financial Needs The Financial Needs of the Elderlyof the Elderly

Today we will learn:Today we will learn:• 6 different sources of retirement income that 6 different sources of retirement income that the elderly have.the elderly have.

• Ways in which their income may impact on Ways in which their income may impact on their lifestyle.their lifestyle.

State Retirement PensionState Retirement Pension

Paid by the Paid by the Government to all Government to all those who have those who have reached retirement reached retirement age (60 for women, age (60 for women, 65 for men)65 for men)

Dependent on Dependent on years worked and years worked and National Insurance National Insurance contributionscontributions

Occupational PensionOccupational Pension

Paid by an employer Paid by an employer and employee into a and employee into a scheme throughout a scheme throughout a person’s working lifeperson’s working life

Money is invested and Money is invested and can be taken from job can be taken from job to jobto job

Pension can depend Pension can depend on what your final on what your final salary is and how long salary is and how long you have workedyou have worked

The Scottish Public Pensions Agency (SPPA) controls occupational pension schemes for NHS staff and teachers in Scotland, as well for people working in local government, the police and fire services.

Private PensionPrivate Pension

Provided by a Provided by a pension company pension company to give a person a to give a person a second pension second pension for retirementfor retirement

Money is invested Money is invested by the person by the person over a number of over a number of yearsyears

Stakeholder PensionStakeholder Pension

New type of private New type of private pension that is pension that is cheaper to run and cheaper to run and easier to useeasier to use

Investors can stop and Investors can stop and start payments , and start payments , and increase and decrease increase and decrease themthem

Provided by financial Provided by financial companies, banks and companies, banks and building societiesbuilding societies

Savings AccountsSavings Accounts

Money put away in Money put away in bank or building bank or building society savings society savings accounts, earning accounts, earning interestinterest

Independent Independent Savings Accounts Savings Accounts (ISAs) are tax-free (ISAs) are tax-free with easy access with easy access and you can save and you can save cash and stocks cash and stocks and sharesand shares

ISAs 2010-11ISAs 2010-11

You can save up to You can save up to £5,100£5,100 in a in a Cash Cash ISAISA every year. every year.

You can also save up to You can also save up to £10,200£10,200 in a in a Stocks and Shares ISAStocks and Shares ISA every year. every year.

The total amount you can save if you The total amount you can save if you have both types of ISA is have both types of ISA is £10,200£10,200..

Stocks and SharesStocks and Shares

Money invested in Money invested in companies to companies to provide income in provide income in retirementretirement

Can be risky, as Can be risky, as value could go value could go down as well as updown as well as up

Some people pay Some people pay extra for experts to extra for experts to invest their moneyinvest their money

ActivitiesActivities

Answer activities one and two from the Answer activities one and two from the lifestyles pupil booklet.lifestyles pupil booklet.

Write your answers in full sentences.Write your answers in full sentences.

If you finish please put your hand up and I If you finish please put your hand up and I will mark it.will mark it.