Shake up of unemployment welfare…

Enable Independent, Independent Financial Advisors in Bishop’s Stortford noted that a think tank would like a shake up unemployment welfare in the UK, proposing an unemployment based savings scheme, backed up by guarantees from family and friends.

It says that a type of ‘lifecycle account’ where people would have to save a compulsory amount of their annual income would help to make up for the meagre unemployment benefits currently in place.

They propose that the system would work like this:

• Compulsory payment into the unemployment based savings scheme

• If a person becomes unemployed then they can use this savings scheme to make up 70% of their previous earnings

• If these savings were insufficient they would then be able to make up the amount by borrowing money from the bank for up to two years, and this borrowing would be responsible for paying the remaining balance.

• Funds later in life could be used to purchase annuity in addition to the normal state pension.

These proposals are very interesting, it is certain that the current welfare system for unemployment is not working as well as it could. However unemployment or being unable to work could be part of a life plan and should always be considered when life planning.

Life planning is a flexible approach to managing your finances, and should be adaptable to cope with the good and less fortunate times. To find out how proper life planning could help you to manage your future, why not contact our team of Independent Financial Advisors.


Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
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