INDIVIDUAL REPORT

Individual Report



Raising Individual Financial Awareness

Introduction

Management of money is not just limited to the wealthy people. It is important for individuals to know each term which has been used for employment benefits. Planning and budgeting can improve future of the person as management of money refers to setting and achieving goals. Financial awareness which help in educating person to construct life-changing skills which assist in creating more secure life to a person ad to their families. Different schemes offer by the company to reward their employees as an additional benefit after their retirement or when they leave organization. This paper focuses on case of Individual Financial Awareness and how person can deal with it.

Part A) Mr and Mrs Murray and family

1. Pension

A pension in conjunction with the social insurance or social security is a payment, either temporarily or for life. A person receives pension in a situation when creditor actually makes a monetary amount, whether of public or national forecast of private institutions. Usually the base of active workers is what sustains the payment of such pensions (/www.oecd.org/).

Causes of the pension crisis

The pension system in the UK is considered one of the most advanced in the world. The aging of the population which is the longer life and lower birth rates and fertility is leading to the crisis in many systems pension. The pension system works well when the age structure of the population remains constant, but when it is altered as is happening in recent years in UK, increasing the dependency ratio of population and crisis in pension.

The cause of pension crisis in UK is because in the late February 2010, 5191 DB pension funds were deficit (or 70.5% of 7,400 funds tracked by the PPF). But the situation has improved since a year: in link with the rise in stock prices and the change rules update (October 2009). The aggregate deficit was only $ 15.1 billion books (against 242 in March 2009). The delicate issue of assessing the accounts of F is on the assets: large fluctuations over the developments of asset prices.

The public pension spending is low in UK and it is expected to remain constant, despite the aging population. Inequality and poverty are high: 30% households over 65 have incomes below 60% of median income (20% in the EU, 13% in France. Recent reforms will lead to that: Supplementary retirement protection is increasingly borne by employees and pensions are subject to changes in asset prices. Moreover, the contributions made ??today will not allowed maintaining replacement rates. The NEST will serve as a safety net, but the replacement rate will be low and also, could serve Accelerator funds to the closure PD (CQ Researcher, 2006, pp. 147).

2. Pension Scheme

A Money-purchase pension scheme is kind of pension scheme in UK which is a defined contribution/profit sharing plan b y the employer to their employees at the time of retirement. It is the responsibility of the employer to sponsor such a scheme ...