Visual Aids
The graphic story of 100 young people now aged 25……40 years later at retirement
1 4 5
WILL BE RICH WILL BE FINANCIALLY INDEPENDANT
WILL STILL BE WORKING
12 29
WILL BE BROKE WILL BE DEAD
49 Of those who live to retirement, 93% will be depending on friends,relatives & charity
Where will you be?
WILL BE DEPENDANT ON SOCIAL SERVICES, FRIENDS & CHARITY
The Graphic story of 100 young people now aged 25 ‌
40 years later at retirement ‌.
1 4 5 12 29 49
Will be rich Will be financially independent Will still be working Will be broke Will be dead Will be dependent on friends and charity
100 PEOPLE
Earning Years Yearning Years
Learning Years
71 will be living at 65 29 die prior to retirement 90% leave family dependant 10% leave family independant
1 wealthy 4 well to do 5 working 61 dependant on others
How long do you spend planning your annual holiday? How long have you spent planning the longest holiday of your life
• Retirement Planning Would you rather be a Retired Gentleman/Lady
• Retirement Planning Or an Old Age Pensioner
There are 2 types of pension Big pensions & small pensions Which would you prefer to own
Living longer but spending more time unhealthy Gap between life expectancy and healthy life expectancy at birth (Great Britain) Life expectancy at birth (male)
9.0 8.5 8.0 7.5 7.0 6.5 6.0 1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
INCOME 80-85
70-75
60-65
50-55
40-45
30-35
20-25
10Y-15
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0
0-5
The Earning Life Cycle
The Expenditure Life Cycle 8000 7000 6000 5000
EXPEND 80-85
70-75
60-65
50-55
40-45
30-35
20-25
10Y-15
3000 2000 1000 0
0-5
4000
The Yearning Cycle
INCOME 80-85
70-75
60-65
50-55
40-45
30-35
20-25
The Crisis Gap 10Y-15
0-5
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0
Which of these are you prepared to do without when you retire •Your car •Your holiday •Socialising •Dining out •The pub •New clothes •Your golf or other sport •Presents for grandchildren •Hobbies
The Comfort Cycle
80-85
70-75
60-65
50-55
40-45
30-35
20-25
10Y-15
0-5
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0
INCOME
When you retire, it won’t matter how much money you earned when you retire,
Just how much money you have saved
The price of not starting now !! The Cost of Delay 120000 100000 Cost
How would you feel if you lost a Porsche?
80000 60000 40000 20000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Years
$1,000 per month assuming 9% growth. This graph shows that the cost of not saving $12,000 today is $100,585 tomorrow.
• Family Protection Would you want your family to continue with the same lifestyle you provided for them
• Education Planning
QS World University Rankings - 2012
Figures Annual Tuition Fees
Estimated Living Expenses
UK University
Stg 7,000 – 17,000
Stg 5,500 – 8,000
US University
US$ 7,000 – 21,000
US$ 7,000 – 13,000
Total Annual Costs Stg 12,500 – 15,000
US$ 14,000 – 34,000
A 4 year course in US can cost up to US$ 136,000 In 10 years time -
US$ 217,310
(assuming 3 % inflation)
Thoughts…
• This is per child • Do you have more than one child? • Are you comfortable in funding this sort of cost from your income? • Will this adversely effect your lifestyle? • Would you like a more convenient way to fund for this? • Would you be interested if you could significantly reduce this cost?
Target fund US$ 217,310 in 10 years time $200,000 $150,000 $100,000 $50,000 $0 1
2
3
4
5
6
7
8
9
10
Funding level – US $1,154 per month for 10 years ( assume 9% growth) Total contributions US$ 138,494 -
56% less to pay
Paid for gradually out of income …. Relatively small effect on lifestyle ….
1 in 3 people in Britain will have a
cancer diagnosed at some time during their life1 1. Source: Imperial Cancer Research Fund
More than
15 million people in England have a
chronic or long-term disease ranging from asthma to heart-failure3
3. Source: Gordon Brown’s speech on NHS 7 January 2008
The risk of a
recurrent stroke is 30-43% within five years5 5. Source: Mant , Wade, D and Winner, S “Health Care Needs Assessment: Stroke� in Royal College of Physicians National Clinical Guidelines for Stroke, 2nd Edition, June 2004.
Multiple illnesses 20% men and 30% women will have 2nd heart attack within 6 years
40% 30% 20% 10% 0% Men Source: Website BJM Best Treatment 2006
Women
Improved outcomes
Probablity of survival (%)
Survival rate for breast cancer 100% 81% 80% 60%
52%
40% 20% 0% 1971 (5-year survival)
2001 (5-year survival)
Source: Cancer Research UK website http://info.cancerresearchuk.org/cancerstats/survival/siteandsex/
The possibility of
surviving a critical illness before age 65 is almost
twice as great as dying2 2. Source: National Centre for Health Statistics
If your income stopped today, cross off the monthly items that would have to go because you couldn’t afford them •
Mortgage
•
Car
•
Holidays
•
Entertainment
•
Clothes
•
Food
•
Schooling costs
•
Savings
•
Current bills