Replacing an inadequate pension
The new ‘retirement’ reality
The aspiration of retiring at 65 with a comfortable pension are well and truly over for most people. Add to this pension schemes have radically changed in recent times, with the final salary pension that our parents may have had are a very much a thing of the past.

The general retirement age of 65 was established in the 1940s when life expectancy was approximately 67-68. Life expectancy in the 21st Century is now 85+ with many thousands more people living to be 100. As a consequence people will inevitably need more money to sustain themselves to a very old age, (possibly).
Double wammy – the inevitability

Interest on savings accounts are currently virtually non-existent. With inflation set to rise and interest rates remaining low, it’s unsurprising that people will have to work long past the formal retirement age.
72% of people are now saying that they intend to work beyond their retirement age. This is 5% higher than last year and 11% higher than 2015

Question how much is your pension worth?
Someone looking to achieve an income of £27,000 a year at retirement would need a pension pot of around £500,000. Whereas if you wanted an income of £40,000, you would need a pension pot of around £1m.
The size of the average pension pot in the UK currently stands at nearly £50,000, according to Aegon. Men have saved an average of £73,600, compared to just £24,900 for women. So, the bottom line is if you are not a high earner, your pension could be very little indeed.

There is another way to replace an inadequate pension – Residual Income
Residual income is the ability to get paid over and over for the work that you do one time. It’s also called “royalty pay”. There are very few businesses or industries today that pay residual income.
Musicians, authors and insurance sales people are a few professions that do earn a royalty / residual income. If you were to write or record a popular song, each time that song played on the radio, or a CD was sold, you would receive a commission, or royalty payment.

Residual income in Network Marketing is income you continue to earn based on efforts you put forth initially. This income is based on the sale of products and services. And, these products must continue to generate repeat sales.
Find the right company

Find a business that has consumable products. Consumable products are those items that are bought, used up and then replaced, over and over again, usually monthly. If you are marketing a product that is a one-time purchase product, you will have a harder time generating residual income.

By building an organization of people working toward a common goal, you can ensure a strong residual pay-out that will last for years. This is why it is important that you understand this pay advantage, and invest your effort, energy and time in other people.

Taking action
Earning residual income requires a few things – first that you take action to get momentum going in your organization. Second, you continue building on that momentum, and teach others to do the same. Finally, you learn and develop leadership skills that will provide the foundation that supports your entire organization.

People follow people, and leadership skills are developed. Leaders are created, not necessarily born. In the beginning, you have the “privilege” of working lots of hours for a little pay. In the end, you have the “joy” of working little hours for lots of pay.