Car insurance is one of those very boring expensive products that you loathe having to pay for but have no choice if you want to drive a car on Britain’s roads. Why therefore would supermarkets want to be associated with such a seemingly expensive pain in pocket? Well it seems that public think it’s a great idea and are buying it from these stores in their thousands with belief that it must cheap if supermarkets are selling it. The strange thing is that companies behind these deals, who are actually underwriting risk, are same companies who have been selling you car insurance for years.

Tesco for example seem to be incredibly successful in selling motor insurance to their customers with statements proclaiming that you could save up to £150 compared to some leading insurers. Tesco of course is not an insurer. If you look closely at bottom of Tesco car insurance webpage, you will notice it says that policy is provided and underwritten by a company called UK Insurance Limited. Who on earth is this company you may ask. UK Insurance Limited is part of Royal Bank of Scotland who also own Direct Line along with Churchill and Privilege.

Why do so many of us constantly push thought of retirement planning to back of our minds?

Reluctance…!

1Reluctance to save for an event that seems so far off 2Reluctance to tie in to an inflexible pension scheme 3Reluctance to put a large portion of our current income out of reach for long term

But in terms of retirement planning, putting off until tomorrow that which you could get done today will end up costing you very dearly.

Every month you delay your retirement savings planning, you significantly reduce value of your future potential retirement fund. Or put another way, every month you delay your retirement savings planning you significantly increase amount that you will need to invest to achieve same level of retirement income than if you’d started today.

If a 25 year old and a 35 year old were to start saving for retirement at 55 and 25 year old invested £300 a month towards retirement, 35 year old would have to increase his contributions to £803 a month to achieve same potential returns.

At state retirement age of 65 average man will have some 19 more years to live and average woman, 22 years. You will have to support yourself without work and, very likely, without state income.

This means that you will spend 25% to 30% of your life in retirement.

You will need substantial sums of money to support yourself in retirement in manner to which you will have become accustomed throughout your life to date.

Recent figures show that individuals aged between 25 and 44 are saving 1/3rd of amount they should be saving in order to support their current lifestyle in retirement.

In most countries you are forced to make your own pension provision if you want to have any chance of a comfortable retirement. The value of government pension that you could once rely on is diminishing every year.

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