.................... 5 Research Objectives .................................................................................................................... 5 Main objective..................................................................................................................... 5 Secondary Objectives........................................................................................................... 5 Hypothesis ................................................................................................................................. 5 Literature Review......................................................................................................................... 5 Arguments for withdrawing pension funds early...
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...'How Sharon secured £100,000 to take early retirement?' This essay will start by assessing Sharon current situation. Therefore, contribute to the route of the investment. That is relying on both text and supposed information. Furthermore, maintain Sharon's place on risk in relation to return. Not only but also relate to Sharon's tax position. In addition present evidence to back or question speculation. From the text book Sharon is 40 years, single and has no known dependents. A home owner, debt free and the potential investor with £100,000. Therefore, imagine Sharon being in the high income bracket. With the possibility of having an occupational pension. In the first instance, Sharon priority is early retirement at 55 years. To simulate further Sharon is a somewhat nervous investor. For example, with Sharon's view to risk. We know from Rutterford (2006 p.191) regarding the UK Financial Services Compensation Scheme. Should a banking institution bust, this may cover all or part off an investment depending? Consequently, covering 100 per cent of the first £2,000 then 90 per cent of up to £33,000. The investor should know if their bank is registered. Moreover, another risk to savings is inflation. Unless interest rate is above inflation savings are devalued. However, Sarah could invest into a fixed rate 'Index linked Savings,' account. The returns are between 1.05 to 1.10 per cent above the current inflation rate. However, should interest rate rise this investment would...
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...DOWNSIZING 3 THE IMPACT OF DOWNSIZING PRACTICES ON THE PERFORMANCE 4 ALTERNATIVES TO LAYOFF 5 EARLY RETIREMENT 5 DOWNSIZING AND THE LEGAL ISSUES 6 REFERENCES: 6 INTRODUCTION Over the past decade, corporations have been under economic pressures for a long term. Consequently, some of them were eliminated from the local market, the survivors have been driven to reorganize, redesign and restructure their organization with the intention of maintaining their place in the market. According to the decision maker, downsizing can be a solution to many organizations to reduce their budgeting issues and to increase their productivities. ( Labib & Appelbaum,1994) This essay will focus on organizational downsizing. Part one present the downsizing concept, particular attention is paid to downsizing reasoning and stages, its impact on the performance and the legal issues. Part two focus on the early retirement. ORGANIZATIONAL DOWNSIZING – A LITERATURE OVERVIEW The term downsizing refers to an "elaborate decision to reduce the size of the workforce in an organization" to improve the organization performance and decrease cost. (Kozlowski et al., 1993, p. 267). Layoff and early retirement are methods of downsizing; in fact layoff is an immediate act of discharging an employee due a decline, while the early retirement is a personal decision to leave a job voluntary before the retirement age. (http://www.answers.com) There are two terms of downsizing: downsizing by need and...
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...Social Security and Retirement in the United Stated Com156 Date Social Security and Retirement in the United States It is important to plan for retirement because Social Security alone will not cover all of our needs by itself. I will also explain the need for another source of income other than Social Security. Social Security alone will not be enough to cover one’s needs when he or she retires simply because there is no one that can survive off less than $2000.00 a month. The way the government is borrowing from Social Security and the way it has been projected, some believe there will be no more Social Security in years to come. This is why every adult in the United States should start planning when they are younger for their retirement. Social Security is a program that was developed to ensure that people of retirement age will have money to live off of when they do decide to retire. This program was created in 1935, and was called “the system of old age benefits.” In 2007, the Social Security Administration had a net worth of about 785 billion. The expenses that year were about 594 billion dollars. The year of 2007 had 49 million people that received benefits. It is said that by the year 2018, negative effects on the federal budget are going to be experienced. The government has borrowed millions of dollars from Social Security, $159 billion in 2004 to be exact, and that is not the only time it has happened. According to the Social security...
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...Social Security: Then and Know Deanna Havens SOC 320/ Public Policy & Social Services December 10, 2011 Social Security was established by President Franklin D. Roosevelt in 1935, during the great depression. The social security system was supposed to be a creation that would cover nearly all Americans. Over the years social security has expanded in both dollar amounts and the way you are eligible to receive benefits. Social security smoothes the risks of economic cycles, and it remains the most secure retirement income in America. Intentionally or unintentionally, those who think that the surplus in social security is disappearing are misleading the American public. Social security is financed mainly through payroll taxes on wages, and self-employment income. Employees and employers contribute 6.2 of wages, up to a wage gap of 106.800 in 2009 that ordinarily increases with the growth in the nation’s average wage. The self-employed contribute the equivalent of the combined employer and employee tax rates. According to the annual social security report (2010) income from social security payroll taxes will account for about eighty-three percent of trust fund income. At the end of 2008, nearly fifty-one million people were receiving benefits: thirty-five million were retired workers, six million survivors of deceased workers, and nine million disabled workers. During the last year an estimated one hundred sixty-two million workers had earnings covered by social security...
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... | |Smoothing a household's living standard requires using a sophisticated mathematical technique called dynamic programming to solve a number | |of difficult and interconnected problems. Advances in dynamic programming coupled with today's computers are permitting economists to move | |from describing financial problems to prescribing financial solutions. | |Conventional planning’s targeted liability approach has some surface similarities to consumption smoothing. But the method used to find | |retirement- and survivor-spending targets is virtually guaranteed to disrupt, rather than smooth, a household’s living standard as it ages.| |Moreover, even very small targeting mistakes will suffice to produce major consumption disruption for the simple reason that the wrong | |targets are being set for all years of retirement and potential survivorship. | |But with this economics approach, planners can not only smooth their clients’ living standards, but also raise them. For example, they can | |determine precisely by how much living standards will rise if their clients wait to take Social...
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...Social Security and Retirement Erin Darby COM172 June 7, 2011 Louise Gerdes Social Security and Retirement In the United States, Americans need to plan for retirement. Social Security will not cover people’s needs when retiring. Americans who retire should use savings based on their personal investments, private savings accounts, employer’s pensions such as 401K, and Social Security so that they can live the rest of their lives comfortably. Americans that retire can receive full Social Security benefits depending on their year of birth. For example, baby boomers have the retirement age increased to age 67 for those born after 1960. The generation of baby boomers, Generation X, and Generation Y should be concerned that Social Security benefits will be exhausted when reaching the age of retirement. Without Social Security, what security do Americans really have? Americans should not depend on Social Security for early retirement for several reasons. The Social Security benefit amount might be less than what retirement recipients need, the retirement benefits might disqualify them from receiving full Social Security benefits, or the benefits may no longer be available. One reason Americans should not depend on Social Security is that the benefit amount might be less than what Social Security retirement recipients need. Some workers who have contributed to their Social Security could possibly fall into poverty. According to Laura Sullivan (2008), “future generations...
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...problem concerned in the whole world: high qualified personnel continues to work instead to go in retirement. Furthermore, well-educated staff increasingly works longer than the less-skilled worldwide. This fact also influences on the income of the personnel. The top-level personnel is working longer and receiving greater than the bottom-level personnel. The consequences also reflect on the society and individuals. The amount of the old people is staggering increased and they will live longer than before. The experience of the last century showed that people were spending more time in retirement than at work, what steers to “secular stagnation”. The situation in America is different: young low-qualified people throw up their jobs, whereas well-educated “baby-boomers” continue to work. Many European policies support the early retirement, but to obtain a sufficient retirement means to work longer. The technological progress also plays a big role, but some skills do not disappear with age and they are not necessary. In one’s part manual work becomes more difficult for older people and public pensions attract more than low wages. However, not every economical effect is profound. To avoid the disparity, governments should impose higher inheritance taxes for those old people, who accumulates wealth for their legatees. Furthermore, governments should reform the retirement and the education systems, but not the income. The importance of public investments in education...
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...Later Adulthood Development Report Jenn BSHS/325 September 18, 2014 Later Adulthood Development Report In this report one will describe personality and social development in later adulthood to the potential client’s family. Some issues that will be addressed are the changes in role and social position during this stage. One will also compare living accommodation such as accessibility and the need for health care. Also one will illustrate the adjustment and transition from work to retirement. What changes occur in marriage, family, and peer relationships? Lastly one will identify social policies that affect the older adult. The older adults face several problems. In our society they have a role less role. It is important to find a role for older adults. Some older adults are encouraged to be productive and work in order to change perceptions. There are stereotypes that they face by society in which they end up being dependent, inactive, and unfulfilled. Those who want to work can work either full-time or part-time even past the ages of 65 or 70. For those who are retired can be the role of a consultant with the expertise and knowledge they have in specific areas. Programs are also brought up in order to help older adults find hobbies, interests, and sources of income. If older adults worked longer, they would combat the stereotypes and also continue to contribute to society. This also brings a higher self-esteem to them and continue being physically and mentally active...
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...II. Demographic Paragraph on your topic, statement of the problem, delineation of a human diversity issue. (To be submitted in the 8th week) By now, you should be able to articulate a clear topic title of your management project. Create an introduction to your topic by defining a problem/issue that is encompassed by your two readings. Using the Tentative Annotated bibliography and topic statement from week 3, expand your discussion of the connections of your topic to the required components for the project: Systems Theory Model, human diversity, some aspect of family or consumer resource management. After you have developed the connections, delineate the problem/issue by highlighting statistics and facts that make this an important problem or issue for which the class should be concerned/interested. You should go outside the two articles that you have read to find this information. An example might be citing such things as “1 of every 2 marriages ends in divorce” to focus attention on how frequently the marital system breaks down to introduce why you are focusing on how to make a marriage last. Note: this assignment is to total approximately 400 words. (Make sure to identify a source for your statistics/facts that is other than the two articles read.) Title: Parental Behaviors Effecting Children Introduction: From the time that a child is born to their adulthood, they are being influenced by their parents, from participation in physical activity to stress responses...
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...Later Adulthood Development Report Later adulthood is the time after age 65 or the last segment of life. This doesn’t mean life ends, rather it’s a new beginning or a new chapter of your life. This is such a diverse age range. It can span over 30 years. Many things change during this stage in age. We are transitioning into retirement or partial retirement for the more adventurous ones. Our living arrangements may change and there are many relationship changes during this stage of life too. Changes and lots of them As we transition into later adulthood many things change. We are retiring, going to retire or partially retire in the next few years. Retiring brings on a lot of changes social settings and role changes. We go from being important in the work force to an elder. We seem to lose our identity when we retire. This alone can be too much for us to handle and may need a little extra time adjusting into our new role or we may even need a little help adjusting. We have spent so many years working and allowing that to define who we are as a person that we may feel a loss or even feel lost or unimportant anymore. If there is a partial retirement, maybe we take on a less meaningful job, or we are handing over our job to someone else that is slowly taking over, again we feel as though we are losing apart of ourselves. There are so many adjustments that will need to be made when you retire, you will have so much more time on your hands, what will you do with all this extra time...
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...The Inevitable Future Retirement and Social Security issues have become local, national, and international concerns that will also affect each of us on a personal level. Social Security benefits began in 1935 when the depression hit and put many elderly people out of work (http://ssa-custhelp.ssa.gov). Social Security has been around for over 70 years providing a dependable monthly income with automatic increases as the cost of living increased. The Social Security Administration reports that workers need 70-80 percent of pre-retirement income once retired and Social Security only provides about 40 percent (www.ssa.gov). The depletion of funds is becoming a great concern and is also getting worse with each generation. Social security reaches almost every family and will have an impact on the lives of many Americans. Today, about 54 million people receive these types of benefits (http://en.wikipedia.org/wiki/Social_security). It has been said that if changes aren’t made, in 2037 there will not be enough funds to pay the same benefits people are earning today (www.msnbc.msn.com). Some changes include; payroll tax increase, benefits of young workers being cut, and general revenues may have to be used. Some causes of this financial trouble is that people are living longer, birth rates are low, and baby boomers are close to retirement. Baby boomers have been at blame since reproduction has decreased, affecting money paid into Social Security which is what pays the retired...
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...Retirement Planning: Plan for the Unexpected Many adults are optimistic about retirement, but many will be unsuccessful in preserving the lifestyle and standard of living to which they have become comfortable because they will neglect to plan and save. In fact, some people do not even attempt to calculate what their needs will be when they retire. In the past, Americans could count on Social Security, Medicare, and pension plans directed by their employer to help plan their retirement; however, today it is entirely different. The future of both the Social Security program and the Medicare program are uncertain, and to compound the problem, most employers no longer offer defined benefit plans. Some employers offer contribution plans, such as 401k plans; however, that means that people need to have self-discipline and exhibit regular patterns of investing to ensure a comfortable retirement. Citizens must be active and take responsibility for their own financial security. Not only do people have to calculate how much money they will need for ordinary living expenses, but they will also have to calculate how many years they will live in retirement. In addition, they need to recognize the impact that inflation will have on spending power and determine how much money they will need to cover medical and long-term care expenses if they arise. Although the Social Security program will play an important role in retirement, Americans must create a plan that covers every cost, including...
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...program? Talk to several different people and you most likely will not get the same answer. As the following pages unfold, you will have a snapshot on the background history of the program, a view on what is wrong, and some possible solutions. The need for economic security can be traced back to the early Greek civilization, who stockpiled olive oil as a way to secure their future. The groundwork for a public system of economic security could be seen during the late 1700’s, as Thomas Paine, a Revolutionary War figure, published a business proposal depicting the need. The Civil War era saw the creation of pension plans (mainly military). It wasn’t until 1906 that “old age” was added to the means of obtaining a pension. Significant events in our history were a preview for the creation of our Social Security program, as we know it today. President Roosevelt signed the executive order for the Social Security Act, on 14 August 1935. As Richard Henderson states in his book titled Compensation Management in a Knowledge-Based Word, the passage of the Social Security Act in 1935 guaranteed some amount of income to workers reaching retirement age and to workers who become unemployed through no fault of their own (Henderson 84). President Roosevelt’s administration based it on a social insurance foundation, instead of centering it on welfare....
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...are much lower (Cline, 2010). The benefits of directors continue to beef up salary especially, in large organizations. The latest survey indicates that marketing directors receive benefits that are above their basic salary in the year 2003 with men receiving higher benefits compared to women. Employers give out their pension contributions generously with 3% and 8% of salary contribution of the company according to the employees (Hall, 2012). Performance related bonuses will be given by the company. Car benefits are also given to marketing directors with some receiving car allowance and private medical insurance. Retirement benefits are also provided as one retires at the normal retirement age. Moreover, the company also provides early retirement on request. They are monthly contributions from both the employer and employee toward securing a comfortable retirement. Employees benefit from leave allowances in form of vacation, sick time, and personal time as a benefit in order for the company to recruit and maintain superior marketing directors (Hall, 2012). Reimbursement programs and vocational training offered to employees to foster employee job satisfaction as well as improving...
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