Hello.

My name's Miss Ikomi, and I'm a teacher from London.

I'm going to be taking you through today's lesson, so we're going to get started.

Today's lesson is called "How do we plan for the financial future?" It is part of the wider unit How do we look after an ageing population? By the end of today's lesson, you will be able to explain what financial planning is needed for retirement and how the government helps people when they have retired.

Let's get started.

The keywords we're going to hear in today's lesson are: retirement.

This is the period of life when a person stops working.

Usually this happens after reaching a certain age and often relies on savings and pensions for income.

The next is ageing population.

This is a situation where the proportion of older people, typically 65 and over, in a society is increasing.

And last, State Pension.

These are payments made by the government to people of or above the official retirement age.

We're going to start the lesson by thinking about what financial planning is needed for retirement.

Planning out your retirement is extremely important, particularly when we are living in an ageing population.

That means that more people on average are living for longer.

That means during that time when they've stopped working, having planned is going to help make sure that they're financially secure.

Many people in the UK start planning for retirement as soon as they start working by putting money aside into a workplace pension or/and a personal savings account.

You're not necessarily limited to just one of these, and you can use lots of different methods together.

Saving early from the point that you start working helps individuals to build a bigger pension pot.

This means that they can afford basic living costs and also extra activities when they retire.

Starting early also means that your money has more time to grow in terms of savings and gaining interest on those savings.

One important part of planning for retirement is understanding workplace pensions.

What are these and how do they work? Most workers are automatically enrolled into a pension scheme by their employer.

For example, a worker who is earning over £10,000 a year in April 2025 will usually be automatically enrolled in a workplace pension.

Both the employee and the employer must make contributions to that savings pension.

The worker will then be able to claim this money when they retire.

So you are saving now for future you.

One of the great things about a workplace pension is the fact that you save a little bit every month and that percentage is often variable, but your workplace, your employer, will also save a percentage, so for everything that you are putting in, you are actually saving more.

Some jobs, particularly in the public sector, might have particularly good pension contributions when it comes to the part of the employer, and this is sometimes why people choose to go into certain areas.

If you know you can save more for your future, that might demonstrate some good financial planning.

Having a workplace pension means you do not rely only on the State Pension which is provided by the UK government.

If you change jobs during your career, which lots of people do, it's important to keep track of all the different pension pots.

That means that later on you can combine them and you don't forget about some money that you have saved.

It might have been a really long time ago.

Let's do a check on what we've done so far.

I'd like you to read the sentences below and fill in the gaps to make them full sentences about financial planning during retirement.

Pause your video and have a go at this now.

Let's check our answers.

Retirement is the period when a person stops working.

A workplace pension is provided by your employer.

The government provides the State Pension.

Another important aspect is creating personal savings outside of pensions.

For example, lots of people use Individual Savings Accounts.

These are often called ISAs, and they can save tax-free up to a certain amount each year.

This amount in April 2025 was £20,000 per year.

Personal savings can help pay for unexpected costs in retirement, for example, a leak in your home which would need repairing or an unexpected healthcare need or cost.

Again, this idea of planning early is really important.

In planning early, you can then decide what kind of lifestyle you are looking to lead when you are in retirement based on how much money you will need and how much that you have saved.

Some people want to have enough money to be able to go on holiday, for example, or travel to visit old friends, maybe go out for meals, maybe treat their grandchildren or other relatives, maybe even move house or move to a different country.

This means that they're going to have to save when they're younger to be able to afford these luxuries beyond just the basic necessities like having food, water, and somewhere to live.

Let's do another check.

What is different about an ISA compared to other savings accounts? Is it A, it has no limit; B, it gets more interest; C, it's better protected; or D, it's tax-free? Pause your video and choose your answer.

The correct answer is D.

It's tax-free.

Not everyone stops working at the same time.

In reality, the retirement age can vary greatly depending on people's personal finances, circumstances like whether you've paid your mortgage off in full, and your health, might all contribute to when you retire.

Some people may decide that they want to keep working even though they've reached the official retirement age.

It's really important to understand that not everyone retires at the same age.

For example, in April 2025, the State Pension age for some people is 66.

People may choose to retire earlier if they have sufficient private savings, or later if they'd prefer to continue working.

Additionally, the age at which individuals receive their State Pension can vary based on certain different personal circumstances.

That might be your date of birth.

Finally, financial advice can be a really key part of planning for retirement, so it's important for us to know how to use this.

Free advice and support is available online through independent financial advisors or through lots of different charities to help people think about how to plan forward.

Professionals who help people with their finances can explain how much they need to save, manage any investment risks, and make the most of their pensions and savings.

This is all part of the idea of managing risk, which is something that the government also has to do with its budget to balance the national economy.

So we are all managing risk in our personal circumstances, and this is also happening in other areas.

Planning for retirement is not just about saving money; it's about creating a future where you can live comfortably and looking forward to that.

Let's do another check.

The statements below are all incorrect.

I'd like you to identify the mistakes and correct each of the sentences.

The incorrect sentences are as follows.

Number one, everyone retires at the same age.

Number two, you can only use a pension for retirement savings.

Or number three, financial advice is always very expensive.

Think back to what you remember about what we've done that shows why these are false.

Pause your video and have a go at this now.

Let's check our answers.

The first statement should be: people retire at different ages.

The second statement should be: you can use savings and ISAs, as well as pensions, for retirement savings.

Statement number three should read: some financial advice is free, especially online or through charities.

Let's do a longer task to put this into practise.

Alex's grandfather is 68 years old, and because of his earlier successful financial planning, he's enjoying retirement.

What could he teach his grandson about financial planning to prepare him for the future? Alex is asking, "I wonder what advice my grandfather could give me." Have a go at thinking about some advice that Alex's grandfather might pass on.

Pause your video and have a go at this now.

Some of Alex's grandfather's advice might have looked like this.

Alex's grandfather could teach him that starting to save for retirement early is one of the most important steps.

For example, he might tell Alex to join his workplace pension scheme as soon as he starts working because both the employee and the employer put money into it.

This means Alex will be building a pension pot from a young age.

He could also explain the importance of using an ISA to save money tax-free for unexpected costs in the future.

For example, he may use his ISA savings to pay for house repairs or holidays in retirement.

His grandfather might also advise Alex to get free financial advice from trusted sources so he can make smart decisions and avoid debt.

Most importantly, he could tell Alex that good financial planning gives you freedom and comfort later in life.

The next part of the lesson is going to think about how does the government help people in retirement? The government helps people in retirement mainly through the State Pension, which we mentioned previously.

The State Pension is a regular payment made to people who have reached the official retirement age and have enough National Insurance contributions, which is a specific type of tax.

For example, in April 2025, the full new State Pension is £230.

25 a week, but if you reached retirement age before April 2016, you would've got £176.

45 per week under the old State Pension.

Receiving that State Pension means people have a basic income, which is there to cover the essentials during retirement.

Things like paying for rent or maybe buying food.

However, many people feel the State Pension alone is not enough to meet the cost of living, so therefore other sources of support are needed.

Another important way the government supports people is through Pension Credit.

This is an extra payment for people on a low income who are over the State Pension age.

This helps to ensure that vulnerable elderly people in our ageing population do not fall into poverty if they don't have income through working.

It's important to apply for Pension Credit as it doesn't happen automatically.

Let's do a check.

How does the government support people in retirement? Is it A, through the workplace pension; B, through the State Pension; C, through a personal pension; or D, through Pension Credit? Pause your video and choose your answer.

The correct answer are B and D.

The government also provides free healthcare through the National Health Service, the NHS.

This is particularly important for elderly people.

Prescriptions and eye tests are free for people aged over 60 in England.

This means that medical costs don't have to eat into the limited budget that pensioners have.

Additionally, the government offers discounted or free travel passes to help retirees stay active and connected, again, reducing the amount that they have to take out of their own smaller budgets for things like travel.

There are also specific housing schemes that are aimed at supporting elderly people.

The Housing Made for Everyone project, supported by the then-Conservative government's Department for Levelling Up, Housing and Communities in 2022 focused on building accessible homes that are easier for older people to live in.

The HoME project aims to create homes that are not just functional, but also adaptable and inclusive, meaning that everyone can live comfortably and independently within their own space.

Having a suitable housing is a big part of helping an ageing population, allowing them to live independently for longer.

Finally, local councils also help retirees with services like home-delivered meals, home adaptations, and social care support.

For example, local councils can help older people get stair lifts installed in their homes or organise help with cooking and cleaning.

This shows that while the government provides broad financial support, local government provides the everyday services.

These can make a real difference to elderly people's lives.

Let's do a check.

Aisha's grandmother has bad arthritis, so her joints are sore and her mobility is limited.

What support is there for her from the government? Pause your video and have a go at this now.

Let's check what type of support could be available.

Aisha's grandmother could get free prescriptions from the NHS because she's over 60.

This could help with her arthritis medicine.

The government also supports home adaptations through schemes like the HoME project, and the local council might help with things like stairlifts or home care to support her mobility.

Now we're going to do a longer task to put this into practise.

I'd like you to imagine you are a news reporter interviewing an older person about how the government supports them in retirement.

I'd like you to write a short interview script with three questions and their answers.

Pause your video and have a go at this now.

I asked you to write a short interview with answers that explain the different support that pensioners can get from the government.

Your interview might have included some of the following.

Reporter: What is the most helpful support you receive from the government in retirement? Older person: The State Pension is a huge help.

It gives me a steady income every week to cover my main bills and food.

Reporter: Do you get help with anything else, like savings or healthcare? Older person: Yes, I get free prescriptions from the NHS and I also claim Pension Credit to boost my income.

Earlier in life, I used an ISA to save without paying tax, and I built up a workplace pension too.

Continuing on.

Reporter: Has the local council supported you in any way? Older person: Absolutely.

They helped fit a stairlift at home, and I sometimes get help with meals and cleaning.

It makes a big difference to my everyday life.

Today we have been thinking about how do we plan for the financial future.

We have learned that retirement is when people stop working and need to plan ahead so they have enough money to live on.

People can save money using workplace pensions, ISAs, and personal savings to prepare for their retirement.

The government supports retired people through the State Pension and extra help like Pension Credit.

Older people also get free NHS prescriptions, support from local councils, and help with housing.

Last, early financial planning gives you more choice and makes retirement more comfortable for the older generation.

That's the end of today's lesson.

Thank you for joining me.