If you are over 50, you may still count on many years of life. According to Public Health England, in a press release dated the 12th of February 2016, life expectancy for those in their later years is now higher than it has ever been.
These days, in other words, 50 is no age at all. But as anyone of any age probably knows, it is never too early to start thinking about life insurance.
For the over 50s, however, there are certain benefits and advantages you may enjoy that are not available to those who are younger than you. Life insurance over 50, may carry an especially attractive appeal. These are some of the reasons why:
- over 50s life insurance is a special form of whole life insurance – that is, it pays out an assured cash benefit whenever the beneficiary dies rather than only within the defined period of a term life insurance policy;
- the assured cash benefit is return for the payment of monthly premiums for the remainder of the insured’s life – although many such policies waive the collection of premiums once the insured has reached the age of, say, 85 or 90 (depending on the insurer);
- unlike some other forms of life insurance, acceptance is guaranteed, without the need for any kind of medical examination or questionnaire; and
- the cost of the monthly premiums is likely to be fixed at the same rate for the duration of the policy.
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Everyone needs to save money for retirement, but some people are much better at it than others. Some people struggle financially and can’t save much at all. But other people just aren’t doing the right thing. They could have money to save and invest, but they’re not making the most of it. Or perhaps they are trying to save for retirement, but they’re not going about it in the right way. In fact, many people are approaching their retirement planning poorly. If you want to be smarter than those who are getting it wrong, there are several things you should be doing.
One of the biggest mistakes that many people make is to start saving for retirement too late. The earlier you start, the more you can save and the more you can grow your money. If you’re able to start saving for retirement when you’re in your 20s, you’re already doing better than many other people. You don’t have to have a lot of money to put aside. Even a small amount is a useful contribution toward your retirement funds. Although your 20s and 30s are a time when you want to enjoy yourself, it pays to be sensible and think of the future too.
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Retirement is that time of your life when you may no longer have a regular source of income. It is the time when you have to live on the money you have accumulated throughout your professional life. So the earlier you start saving for your retirement, the more money you will have at the time of your retirement.
Everyone should save for the post-retirement life
Ideally, retirement planning should start as soon as you start earning. Most employers offer EPF for their employees. As per the rule of Employee’s Provident Fund (EPF) schemes, the employee has to contribute 12% of their basic salary and the employer also contributes the same amount to the fund. The power of compounding helps accumulate a huge amount at the time of your retirement. However, those who are self-employed or do not have a fixed income, cannot enjoy the EPF schemes offered by employers. For them, the only option is to invest in a pension plan from a reputed insurance company. You can also invest in a mutual fund if your risk appetite is high. This will help your retirement planning to stay on track.
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It seems but a short while ago that the baby boomers were called by other monikers, according in great part to our philosophical, social, and fashion sensibilities – hippies, mods, rockers, rednecks, heads, straights, among others. We were, as a group, restless, questioning, and in many cases, driven by a wanderlust our post-WWII, post-Great Depression parents could never comprehend. In spite of, or perhaps due to being such a diverse generation, we all seemed to share one trait. We were always in the minority.
Fast forward to 2015, and we, the eternally young, are getting old. We don’t think we look old, despite our rapidly colour-changing or vanishing hair, our daily deepening wrinkles, and our parents’ paunch, all of which we seem to have inherited within the last few months. We certainly don’t feel like we’re old, aside from our skeletal barometers that are more accurate in predicting changes in weather than any television meteorologist. It is just that things today are heavier or further away than they used to be. We’re still cool, even if it takes a few extra vitamins and blue pills to keep us that way, and our bean bag chairs have been replaced by recliners. Our music, of course, remains the pinnacle of the ages, surely more relevant than the racket being made by the X-ers, Y-ers, millennials, or whatever the kids of today call themselves. [click to read…]
Fancy living on a tight budget during your twilight years? Want to survive freezing winters without a heated home? Like the idea of eating cheap, discounted food? No, then you need to start planning for your retirement. It might seem like a long way away – 15, 20 or maybe even 30 years, but the truth is, it will sneak up on you.
Your retirement might seem a long way off, but whether you are in your 20’s or 50’s, you need to have a plan in place. The reality is that if you want to enjoy your retirement, you need to start putting something away each month. Otherwise, the sad truth is that you’ll struggle to get by.
If you don’t already have a financial plan in place for your golden years, don’t panic, it’s not too late.
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Traditionally, most Canadians thought that taking advantage of the immediate tax savings of a Registered Retirement Savings Plan (RRSP) for their retirement savings was the smartest choice when it came to saving for their retirement. But now that the Tax Free Savings Account (TFSA) has been around for a while, some people, including tax specialists and personal finance planners beg to differ. Why? Here are some reasons:
1) The TFSA has perks that the RRSP just doesn’t have. For one, the funds you contribute to a TFSA have already been taxed, and because any earnings you get from your investments are not taxable ever, this is a great vehicle for retirees who want to access funds from their investments with absolutely no tax consequences. Although the RRSP allows you to reduce your income tax payable right now, you have to also consider the future – when you are older and ready to retire – do you want to be paying a lot of tax at that time? Just because you may be retired, it doesn’t necessarily mean that your income will be really low, and it’s likely that the tax rates will continue to increase in the future, so you may end up paying just as much or more tax later. So, when deciding how to save for your retirement, you want to consider not only the present, but also the future consequences.
2) The TFSA won’t likely be around forever. As many other government initiatives have come and gone over the years, it is very likely that the TFSA won’t be here forever, so it’s a good idea to take advantage of this account while it’s still around. If you are in the position to max out your contributions, then by all means, consider it. You also have to understand that you should be treating this account as an investment and not a simple savings account – meaning in order to maximize your potential earnings, and therefore benefit from the tax savings, you should be investing in something that can earn you more than the 1 or 2% interest rate on the regular savings accounts.
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The earlier in your life that you start planning your retirement, the more comfortable it will be. Nobody wants to slave away for forty-odd years and not get to enjoy doing your own thing, after all. But to cast away the worry and doubt, you need to be financially secure. So let’s take a look at some of your best options on how to secure your future.
The more you save, the better life will be
The thing to understand about saving for retirement is that you aren’t putting money away for a rainy day. You are putting it away for a couple of decades or so. So, it’s best to consider your retirement seriously from the off because it will take time to build up a decent amount to live off.
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