‘You work for 30 years, and would naturally expect to benefit for 30 years at least. For the majority of retiring Police Officers, that’s the objective isn’t it?
Can that happen? Well, we know that it’s possible for anything to happen, and when it comes to longevity there are no guarantees for any of us. However, the Government Actuarial Department (GAD) works on probability based on historic trends. The GAD current estimate for paying out a Police Pension for a 50-year old police officer retiring now is around the 30 year mark. We know that for many, who have a low expectancy of how long retired Police Officers live, that statistic will blow away some myths. So, whether you have enjoyed the past thirty years or otherwise, there’s definitely hope of an enjoyable retirement after Police work!
Here is another 30-year fact. The 1987 PPS is Index-Linked, which quite simply means that it is protected against inflation or if you prefer, is Inflation-Proofed. However, your pension was recently switched from the Retail Price Index (RPI) to the Consumer Price Index (CPI). The question is, which Index is more Inflation-Proof, the RPI or the CPI? It might shock you to learn that in the past 30 years, the CPI (the current PPS 1987 index) trailed the RPI by 50%.
What’s the significance? Well of course, we are not able to predict the future, and predict things like investment growth figures, bank interest rates or the like, however, we can look at history and market trends. So, if the next 30-year trend of RPI vs CPI was to repeat itself, the recent switch in the index would mean that your future standard of living could be significantly at risk. Although it is important to note that past performance is not indicative of future performance.
“What can I do about it?” I hear you ask. I believe you might well find the answer in the following group of “30’s”
At the PMM Retirement Seminars, which are held throughout the UK, we talk for 30 minutes about “The Rules of Money” and the true cost of living over the next, 10, 20 and 30 years.
For the next 30 minutes we talk about a thing called risk, the myths surrounding risk, how to mitigate risk, and how to “ring-fence” your lifestyle and enjoy a secure financial future, in line with the PMM ethos which states:
‘Our aim is to enable officers to effectively go from a full salary to a ‘half salary’ without changing their lifestyles at the point of retirement, up to state pension and beyond.’
We also share a few facts like how at PMM we have retained 99% of our Police clients over their retirements, through the good times and bad.
For the next 30 minutes, we talk lunch, yes lunch! PMM provides a buffet style lunch at all our Retirement Seminars, for which you can register in your nearest locality on this page.
To summarise, you have worked hard for your money, now let your money work hard for you. We like to think at PMM that by investing with us you will discover, along with the rest of our PMM clients, that there is life after policing which you can fully enjoy!