The Importance Of Life Pensions

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Introduction The main aim of a Pension is to provide income for individuals upon retirement. Pensions are becoming a growing importance in our lives as a result of our increased longevity. In Ireland, 65-year-olds make up 11% of the population and it is believed that this will increase to 18% by 2030. Although people are living longer, they are not necessarily living healthier. One prime reason for this would be modernisation of medicine. The first formal retirement program was established in Germany in the 1880s. At the time, the life expectancy was 45 and the retirement age was 65, resulting in very few people living to retirement (Black and Skipper, 1999) . The life expectancy for men in Ireland during the mid-1800s was 40 years old (Gavin, 2000 ). This is a drastic difference to 78.3 years which it is today (Irish Independent, 2015 ). A sobering statistic that many may not consider is that by 2030, men will be working for 34 years and out of work for 35 years, and women will be in work for 38 years and out of work for 45 years. In other words, it is highly likely that one will spend more time retired than they do working. This adds more importance to their pension planning. This illustrates the growing significance of pensions and that the biggest mistake any individual can make to prepare for retirement is to do nothing. This essay will describe the considerations and options that those in the agricultural sector must contemplate in preparing for retirement from both

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