Susan is a teacher in a primary school earning £33,000 p.a. She is married with one child aged 5. Susan has been employed as a teacher since 2006 and is now aged 40. Previous to this Susan worked part time in a supermarket while she was studying to become a teacher. She has a paid up personal pension arrangement with Monkey Financial Services which she has contributed into for 10 years. The paid up value is £4,800. The current scheme she is now in is a Defined Benefit Scheme with an accrual rate of 1/80th contributing 6.4% per month (her employer contributes 13% per month).
She is expecting to retire at the scheme retirement age which she believes is 67 for her. Susan is concerned with the current publicity on income for pensioners and does not want to see herself retiring in poverty. Recently Susan acquired a £10,000 lump sum from her mother to use how she wishes as her mother was distributing some of her own wealth from her estate. Susan would like to use this money for investment in a suitable arrangement for her future rather than just spend it immediately.
Required: Discuss what pensions and investment options Susan has and make some recommendations with justification for your recommendations.

Discuss the developments in relation to pensions in the UK,particularly over the last 10 years. Compare from an individual and organizational perspective.

Explore the various investment and pensions arrangements available to individuals when considering planning for their potential future retirement.