Up in smoke - is based on today's recent 60 second presentation to my local business referral group. It came about after reminiscing over my very first "proper" job, running the art department in a social services day centre for people with long term mental health challenges. Cigarettes became a type of currency, with an exchange rate pitched at 10 pence, designed in the main, to be a deterrent to smoking. On a personal level, quitting smoking was probably one of the best things I did and it all got me thinking, if you ever wanted a greater financial incentive to stop smoking, then read on.
Did you know..... that in 2014 the price of a pack of twenty Benson and Hedges is now a staggering £8.87 (according to the Tesco website). For someone who smokes twenty cigarettes a day that's £3,237.55 a year. Bear with me and my financial planning twist but if you gross that up by the basic rate of tax at 20% that will give a £4,406.25 annual pension contribution. For a higher rate tax payer this would become £5,395 per annum.
According to a recent report by a well known nicotine replacement patch manufacturer, the average age for someone quitting smoking is 27. So, imagine if you quit smoking twenty cigarettes a day and instead, the money that would have gone up in smoke was invested into a pension plan. By the age of 55 you could have a fund worth £301,000. This has been calculated based on contributions increasing by 2% per annum, investment growth of 5.4% and factoring in 1% for investment fees. Under current legislation, you could take 25% of that as a tax free lump sum giving £56,250 immediately, leaving the remainder to provide ongoing income. That's all due to change soon but that;s the subject of another blog.
So, for now, if you or anyone you know are trying to quit smoking please give them my contact details as this could be a huge financial incentive. Now, I did say at the beginning this was the basis of a 60 second presentation at a business referral group and not a technical blog, but if this has caught your attention please read on for details of how we can also help you to access the Allen Carr EasyWay to Stop Smoking programme at no charge to you, saving you even more money.
I work closely with Pru Protect, one of the world's leading providers of life insurance, income protection and serious illness cover for my clients. They are the only provider who actively offer incentives and rewards to improve your health. Now that's actually quite sensible of them really because the healthier their policyholders are, the less claims they will pay and in return they will reduce your premiums as you get fitter. Its the only life insurance product that I know where premiums can reduce and stay reduced over the term of the policy.
Pru Protect do this through their Vitality programme, designed to engage you with improving your health and rewarding you. Not only do your premiums go down as you achieve your health targets, you can also benefit with discounts various things including, gym membership, health checks, special offers on bicycles, free cinema tickets and what got me started on this, the free quit smoking course.
Here's the link to the Allen Carr EasyWay to Stop Smoking courtesy of Pru Protect. Yes, you have to be a policyholder but life insurance, income protection or serious illness cover its pretty helpful in its own right and once you've been free of nicotine for twelve months, your premiums will come down in price and you will benefit from non smoker rates, a saving of 30-40% on rates charged to smokers for the extra risk they pose in making a claim on their policy.
Most importantly you will be adding 10 years to your life according to a recent reports from the NHS.
If you want some local motivation in Sheffield we are pleased to recommend Suzy Newson of Train with Suzy.
Whilst reading the blog articles please be aware of the following:
Welcome to the blog curated by Jill Turner. The pages are not intended to give advice, they are just the real life stories from a real life financial planner and the wonderful people I get to meet.
I want the pages to be engaging, informative and purposeful.
The information contained within this blog is based on our understanding of current government proposals and tax
law, both are liable to change in the future.
Jill Turner is a member of the Personal Financial Society