Major life decisions about personal finance and retirement planning frequently appear in IELTS Writing Task 2 questions. Based on analysis of past exam questions, this topic has a high probability of appearing in future tests, particularly in questions about economic stability and financial security.
Let’s examine a relevant IELTS Writing Task 2 question and explore sample essays at different band scores.
Question Analysis
Some people believe that saving money for retirement should be mandatory starting from a young age. Others think individuals should have the freedom to decide when and how much to save. Discuss both views and give your opinion.
This question requires candidates to:
- Discuss two contrasting views on retirement savings
- Present arguments for both mandatory and voluntary retirement savings
- Provide a clear personal opinion supported by examples
- Use appropriate vocabulary related to personal finance and retirement planning
strategies for saving for major life events
Band 8 Sample Essay
The debate over whether retirement savings should be compulsory from an early age or left to individual discretion is increasingly relevant in today’s aging societies. While both approaches have their merits, I believe a balanced combination of mandatory and voluntary savings offers the most effective solution.
Mandatory retirement savings from youth presents several advantages. Firstly, it instills financial discipline early in life, helping people develop crucial money management habits. For instance, in Singapore, the Central Provident Fund requires workers to save a portion of their monthly income, resulting in higher retirement security for the population. Additionally, compulsory savings benefit from compound interest over a longer period, potentially generating substantial wealth for retirement.
However, proponents of voluntary savings argue that financial planning should remain a personal choice. They contend that individuals have varying financial circumstances and priorities throughout their lives, such as education expenses or housing loans, which may require different allocation of resources. Furthermore, some people might prefer investing in businesses or other assets rather than traditional retirement accounts.
In my opinion, a hybrid approach would be most beneficial. Governments should establish a basic mandatory savings framework to ensure minimum retirement security, while allowing individuals the flexibility to make additional voluntary contributions. This system could include tax incentives for voluntary savings and educational programs about financial planning, similar to Australia’s superannuation scheme.
Young professionals discussing retirement planning and investment strategies
Band 6.5 Sample Essay
These days, many people talk about saving money for retirement. Some think it must be forced while others want freedom to choose. I will discuss both sides and give my opinion.
For making savings compulsory, there are some good points. First, young people often don’t think about their future and spend too much money. If they must save, they will have money when they are old. Also, when people start saving early, their money grows more because of interest rates. Many countries like Malaysia have this system and it works well.
On the other hand, forcing people to save money has problems. Some people need money for important things like school or buying a house. If they must save too much, they cannot pay for these things. Also, some people want to use their money differently, like starting a business.
I think the best way is to have both systems. The government should make people save some money, but not too much. Then people can save extra money if they want. This way, everyone will have some savings for retirement but still have freedom to use their money.
Key Vocabulary
- compound interest (n) /ˌkɒmpaʊnd ˈɪntrəst/ – interest calculated on initial principal and accumulated interest
- fiscal discipline (n) /ˈfɪskəl ˈdɪsəplɪn/ – careful management of money
- superannuation (n) /ˌsuːpərænjuˈeɪʃən/ – retirement benefit system
- discretion (n) /dɪˈskreʃən/ – freedom to decide
- allocation (n) /ˌæləˈkeɪʃən/ – distribution of resources
- hybrid approach (n) /ˈhaɪbrɪd əˈprəʊtʃ/ – combined method
- incentives (n) /ɪnˈsentɪvz/ – motivating factors
Practice Suggestion
Try writing your own essay on this similar topic:
“Some experts suggest that financial education should be mandatory in schools. To what extent do you agree or disagree?”
Share your practice essays in the comments section for feedback and discussion.
