10 reasons why you should consider a Regular Savings Plan
Thu 25 Jun 2020
A Regular Savings Plan is a simple way for you to save money each month. It’s easy to set up and makes putting a little aside each month easy too. If you’ve been thinking now’s a good time to start saving, here are 10 reasons why you should consider opening a Regular Savings Plan.
- It makes saving money automatic
If you’re a current or retired member of the Police, you can make savings directly from your salary or pension respectively. If you’re not employed by the Police, you can save by direct debit. Either way, the plan automatically puts money aside for you each month. So, you can get on with life knowing you’ve got a guaranteed minimum payout to look forward to in the future.
- You can save from the equivalent of just £7 a week
You might feel you can’t afford to save money right now. But you’d be surprised how even a small amount set aside each month will grow over time. With the Regular Savings Plan, the minimum amount you can save each month works out to just £7 a week – that’s only £1 a day.
- You get a guaranteed minimum payout after 10 years
You can choose to save for a fixed term of between 10 and 30 years. At the end of the term, you receive a guaranteed minimum payout based on how much you’ve saved, how long you’ve saved for and your age when you set up the plan. We also aim to apply a final bonus when your plan matures at the end of its term, which could increase your final payout. The value of this bonus depends on how our Life Fund performs (this is where we invest your money for you when you save with us).
Please note: If you’re 51 or older on your next birthday, the guaranteed minimum payout will be less than what you pay in because of the life cover included in the plan.
- It feels good to know you’re saving for your future
It’s a sad fact that many people working for the Police feel under pressure financially. A recent survey* revealed that at least 51% of Police Officers worry about their finances every day, with 1 in 8 officers seeking financial support to cover their day to day expenses. Worrying about money can have a knock-on effect on both your mental and physical health. It can affect your ability to concentrate at work, even how well you sleep at night.
Getting into the habit of saving can seem like a challenge at first. But it can be comforting to know that you’re setting a little aside each month to put towards your future. With a Regular Savings Plan, you can start saving with the equivalent of just £7 a week, putting you on the road to achieving your savings target.
*Police Federation Pay & Morale 2019.
- 75,000 members already save with us
Police Mutual exists to serve the needs of the Police family. The Regular Savings Plan is available to both serving and retired Police Officers, Staff, Specials and their families. Today, over 75,000 members save with a Regular Savings Plan – and are looking forward to a guaranteed minimum payout at the end of the term. So, if you’re considering taking out a plan, you can be reassured you’re in good company.
- It can help you reach your long-term savings goals
Everybody has something they want to save for. For you it might be a special family holiday, or to make some improvements to your home. One member put his guaranteed minimum payout towards the construction of his garage. So, ask yourself what you’d like to be able to buy in ten years’ time. Start saving with a Regular Savings Plan and you’re on your way to reaching your goal.
- You get life cover included for added peace of mind
The Regular Savings Plan includes life cover as standard and you’re covered from the moment you first pay into your plan. You can set up the plan to cover you, your partner or both of you.
It gives you the reassurance of knowing that, if the person covered by the plan dies, we’ll pay out the guaranteed minimum payout, plus any bonus. You can also nominate somebody to receive the first £5,000 of the payout. This is paid quickly, without the need for the estate to be settled first.
- Saving money is a good habit to get into
Setting a little aside each month is a positive habit to get into. It can feel good knowing you’ve got a growing lump sum to look forward to in the future. The Regular Savings Plan makes it easy to get into the savings habit. You can save automatically from your Police salary or pension, or by direct debit from your bank account. Plus, the minimum amount you can save works out to just £7 a week – that’s less than the price of a daily cup of coffee.
- You can take advantage of Switched On Saving
The Switched On Saving service is a feature of the Regular Savings Plan, designed to take the hassle out of saving. It enables you to set up a new plan automatically, at the same time each year. This means that once your first plan matures, you’d receive a guaranteed minimum payout every year after that, as each of these new plans mature at the end of their fixed term.
You can sign up to this service when you apply for your first Regular Savings Plan. If you later decide you don’t want a new plan to be set up automatically each year, you can simply opt out at any time.
- It takes a matter of minutes to set up
You can set up a Regular Savings Plan online in a matter of minutes. Alternatively, you can call us on 01543 441 630 between Monday to Friday, 8:30am to 5:30pm and we will set it all up for you over the phone.
Please note if you cash in before the end of the fixed term you might get back less than you pay in. Additionally, the guaranteed minimum amount at the end of the term might be less than the total you invested, depending on your age at outset.
Police Mutual Assurance Society Limited, trading as Police Mutual, is an incorporated friendly society. Registered office: Alexandra House, Queen Street, Lichfield, Staffordshire, WS13 6QS. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, all telephone calls are recorded and may be monitored.
Type of article: Articles
Category: Saving my money
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