Saving 2

What are shares?

Investing money into a business in return for equity.

The investors become a part owner of the business.

What are the advantages of shares?

• Can fluctuate offering a high return.

• Can get additional benefits such as discounts.

• Also receive dividends.

What are the disadvantages of shares?

• High risk.

• No guarantee of reward.

• Dividends not paid if business does not make a profit that year.

What are pensions?

Long-term savings plans where people make regular payments throughout their working life.

This is then paid out when retired.

What are the advantages of pensions?

• Encourages sensible saving for whole working life.

• May be boosted by employers.

• Save on tax as taken before tax paid.

What are the disadvantages of pensions?

• Moving jobs causes confusion.

• Retirement age increasing. Was 60/65, now 67. Longer waits for state pensions.

• Hard to predict final amount.