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Planning your Financial Future
Some very good reasons for you to ensure that you financially plan for your future.
No
one can predict the future but it is impossible to ignore the major
trends which will affect virtually everyone in the world over the next
25 years.
The
five trends which are shaping the world's fortunes are the technological
revolution, the development of the world's emerging markets, demographics
(as the world swells in some areas and shrinks in others), globalisation
of trade and the increasing retreat of the welfare state. It
is these trends which will determine which types of companies will or
will not succeed in the future.
The
acknowledgement of global trends is giving rise to a new view of investment
markets. Instead of looking at the world as a series of distinct countries
and economies, as indeed it was 100 years ago, the thematic approach
sees it as an increasingly singular entity affected by interrelated
trends.
Investing
in the right theme is often more profitable than investing on a geographical
basis, as a study by US research group, revealed.
Life
expectancy has increased from about 35 years at the time of the pharaohs
to over 80 years today, and this trend shows no sign of slowing. The
United Nations estimates that, over the last 50 years alone, declining
fertility and mortality rates will have added 20 years to the average
lifespan world-wide.
In
1995, 46% of Britons were of working age while 24% were 65 or older.
In 2040, the respective portions of the population will be 32% and 39%.
The
impact on healthcare-related industries as this group swells its ranks
will be further exacerbated by the emergence of new groups which were
previously unable to afford sophisticated medical care. The UN estimates
that, by 2025, 72% of the world's older persons, about 858 million people,
will be living in developing countries.
The
world-wide decline of the welfare statecoupled with our increasingly
aged army of baby boomers means that we will have to provide for our
own retirement.
Many
state pensions simply pay handouts to the retired from contributions
taken from the workforce but, while this system flourishes in a booming
economy with a growing population, a reversal in either of these factors
obviously puts the system under enormous strain.
Governments
are recognising that they can no longer allow citizens to expect the
state to look after them in retirement.
As
the population increasingly gives up work, greater leisure time, coupled
with a need to make life easier, is leading to greater dependence on
consumer goods and technology.
The
demographic phenomenon is an undeniable trend and its effect on the
world over the next 25 years cannot be underestimated. Think in terms
of beneficiaries - technology, consumer goods/services, healthcare provision
and financial services.
Due
to these general trends, the message is clear that individuals should
ensure that their future is secure and the only way to do this is by
planning your pensions and savings to fit in with your life style plans
by reviewing your financial planning regularly.
The
message is clear ~ "plan now for your future, Contact
PAS"