Three Pillars of Financial Security-Life Insurance, Income Protection & Pensions
I call these the “Non-Negotiable” for successful financial planning.
For most, when you are young you will have very little wealth, then as you work throughout your career, the hope is your wealth also increases. But what if all does not go to plan, or if all goes to plan but the real problem is that YOU didn’t plan???
Life Insurance & Income Protection:
These are your financial safety nets when you need them most – during your working life and when you have future earning ability. You could have decades of earning potential ahead but limited wealth to fall back on. If the unexpected happens (illness, disability, or death), these products ensure you and your loved ones aren’t left financially vulnerable.
Pensions: Your Personal “Wealth Fund”:
Pensions are the ultimate long-term wealth accumulation tool. They’re tax-efficient, compound over time, and act as a “paycheck” in retirement. But here’s the catch with pensions: they need decades to grow into meaningful wealth. Start early or at the latest start NOW, and stay consistent.
The Risk of NOT Having all 3 plans:
Scenario 1: You pass away prematurely with no Life Insurance in place, never having the time to build your personal and family wealth, leaving spouse and or dependents with inadequate savings,Income and at risk of poverty.
Scenario 2: You suffer a long term illness or disability with No Income Protection Insurance in place, your left dependent on social welfare only. You struggle financially day to day, having a pension for the future is the last thing on your mind.
Scenario 3: You made it, you worked hard and make it to retirement but you decided early on in life that a private pension was not for you. You will live with only a state pension (if it still exists!) and face a possible 20–30-year retirement with no income cushion.
Sorry for the doom and gloom, but I think you get my point.
The Winning Strategy: Hedge Your Bets
Life Insurance/Income Protection: Covers you if things go wrong in life.
Pensions: Rewards you if life goes to plan.
Together, all 3 plans close the gap between risk and reward. They really are the “Three Pillars of Financial Security”
Key Takeaway:
Building wealth takes time. Protecting it takes foresight. Without both, you’re leaving your financial future – and your family’s – to chance.
Remember “Know what you own, and know why you own it.” – Peter Lynch
Finally, If you have any questions or if you would like to help with your pension, you can reach me personally on 01 582 3523 or email me at Aidan@financiallife.ie
Thanks for reading
Aidan
Disclaimer: The information provided in this blog post is for informational purposes only and should not be considered professional advice. It is advisable to seek expert financial advice for personalized guidance regarding financial products and investing.
Some other blogs you may be interest in:
Start a Pension Ireland- Beginners Guide
Defined Benefit Pensions- Trust the Guarantee or Take the transfer value?
Why Choose Financial Life for Expert Advice??
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