Retirement (Typically from 65 onwards) Most people don’t work their entire adult lives. Between 60 and 70 most people retire from paid work. This means the end of earning income but not of spending. This is why having a pension plan is important. Pensions are financial products that pay out money to people who have retired from work. In order to receive a pension on retirement, people have to pay regular contributions during their working life. Jason and Lucy’s grandparents are at this stage.
Goals, Income and Spending at Different Stages of the Financial Life Cycle
Main Financial Goals Childhood
Teenage and young adult
Understanding money Learning to save
Learning about the financial life cycle Starting a savings plan Keeping basic financial records Preparing for future career
Starting a career
Keeping detailed personal financial records Learning about taxes
Starting to save for major financial purchases (cars, holidays, first home) Taking out insurance
Setting up a new home
Growing a career and family
Purchasing a home Decoration and furniture Taking out home insurance
Buying goods and services for entire family Keeping detailed household financial records
Providing financial security for family Growing a pension Making a will
Retirement
Enjoying life while preserving savings as long as possible Making a will
