Investment portfolios and wealth management are increasingly common topics in IELTS Writing Task 2 essays. Based on recent trends, we can expect to see more questions related to financial planning and investment strategies in future exams. To help you prepare, let’s analyze a relevant question that has appeared in past IELTS tests and provide sample essays for different band scores.
Some people believe that individuals should be solely responsible for planning their own finances and saving for retirement. Others argue that governments should play a role in ensuring financial security for citizens in their old age. Discuss both views and give your own opinion.
Analyzing the Question
This question addresses the debate between individual responsibility and government involvement in financial planning and retirement savings. It requires candidates to:
- Discuss arguments for individual responsibility in financial planning
- Explore reasons for government involvement in ensuring financial security for the elderly
- Provide a balanced view of both perspectives
- State and justify their own opinion on the matter
Now, let’s look at sample essays for different band scores.
Sample Essay 1 (Band 8-9)
Financial planning and retirement savings are crucial aspects of modern life that significantly impact individuals and societies. While some argue that these responsibilities should fall entirely on individuals, others believe governments should play a role in ensuring financial security for their aging populations. In my opinion, a balanced approach combining individual initiative and government support is the most effective strategy.
Those who advocate for individual responsibility in financial planning argue that it promotes personal accountability and financial literacy. When people are solely responsible for their financial future, they are more likely to educate themselves about how to diversify investment portfolio and make informed decisions. This approach can lead to a more financially savvy population that is better equipped to navigate economic challenges. Moreover, individual planning allows for customized strategies that cater to specific needs and risk tolerances, potentially resulting in more efficient wealth accumulation.
On the other hand, proponents of government involvement argue that not all individuals have the knowledge, resources, or opportunity to adequately plan for their financial future. Socioeconomic disparities can significantly impact one’s ability to save and invest, potentially leading to widespread poverty among the elderly. Government intervention, through programs like social security or mandatory pension schemes, can provide a safety net for vulnerable populations and ensure a basic standard of living for all citizens in their old age.
In my view, a combination of individual responsibility and government support offers the best solution. Individuals should be encouraged to take an active role in their financial planning, learning about how investment diversification reduces financial risk and developing personalized investment strategies. Simultaneously, governments should provide a basic level of financial security through well-designed pension systems and financial education programs. This balanced approach can foster a culture of financial responsibility while ensuring that no one is left without support in their later years.
In conclusion, while personal initiative in financial planning is crucial, government involvement can play a vital role in creating a more equitable and secure financial future for all citizens. By combining individual responsibility with targeted government support, societies can better address the complex challenges of retirement planning and wealth management in the modern world.
(Word count: 395)
Explanation of Band 8-9 Score
This essay demonstrates several characteristics of a high-scoring IELTS Writing Task 2 response:
- Clear structure with a well-developed introduction, body paragraphs, and conclusion
- Balanced discussion of both viewpoints with relevant examples and explanations
- Clear personal opinion supported by logical reasoning
- Sophisticated vocabulary and a range of complex sentence structures
- Coherent and cohesive writing with appropriate use of linking words and phrases
- Relevant and specific examples related to financial planning and investment strategies
Sample Essay 2 (Band 6-7)
In today’s world, planning for retirement and managing finances are important issues. Some people think individuals should be responsible for their own financial planning, while others believe governments should help ensure financial security for older people. This essay will discuss both views and give my opinion.
Those who support individual responsibility say that people should take care of their own finances. They argue that this makes people more careful with money and helps them learn about investing. When people plan their own retirement, they can choose how to save and invest based on what they want and need. This can help them save more money for the future.
However, others think governments should be involved in helping people plan for retirement. They say that not everyone has the knowledge or money to plan well for the future. Some people might not earn enough to save, while others might not understand how to invest safely. Government programs like pensions can help make sure everyone has some money when they get old.
In my opinion, both individuals and governments should work together on this issue. People should try to learn about money and save what they can for retirement. At the same time, governments should provide some basic support and education about financial planning. This way, everyone can have a chance at a secure financial future.
To conclude, while personal responsibility in financial planning is important, government support can also play a crucial role. A combination of individual effort and government help is the best way to ensure financial security for people in their old age.
(Word count: 295)
Explanation of Band 6-7 Score
This essay demonstrates characteristics of a mid-range IELTS Writing Task 2 response:
- Clear structure with an introduction, body paragraphs, and conclusion
- Discussion of both viewpoints with some examples
- Personal opinion stated and supported with basic reasoning
- Adequate vocabulary with some attempt at more complex language
- Generally coherent writing with some use of linking words
- Relevant ideas related to financial planning, though less specific than the Band 8-9 essay
Key Vocabulary to Remember
- Investment portfolio (noun) /ɪnˈvest.mənt pɔːtˈfəʊ.li.əʊ/ – A collection of financial assets held by an individual or organization
- Wealth management (noun) /welθ ˈmæn.ɪdʒ.mənt/ – The practice of maintaining and growing one’s financial assets
- Financial literacy (noun) /faɪˈnæn.ʃəl ˈlɪt.ər.ə.si/ – The ability to understand and effectively use various financial skills
- Diversification (noun) /daɪˌvɜː.sɪ.fɪˈkeɪ.ʃən/ – The practice of spreading investments among different financial instruments to reduce risk
- Pension scheme (noun) /ˈpen.ʃən skiːm/ – A type of savings plan that provides income during retirement
- Socioeconomic disparities (noun) /ˌsəʊ.si.əʊ.iː.kəˈnɒm.ɪk dɪˈspær.ə.tiz/ – Differences in social and economic opportunities between groups in society
- Risk tolerance (noun) /rɪsk ˈtɒl.ər.əns/ – The degree of variability in investment returns that an individual is willing to withstand
- Financial security (noun) /faɪˈnæn.ʃəl sɪˈkjʊə.rə.ti/ – The state of having stable income or financial resources to maintain a standard of living
In conclusion, the topic of investment portfolios and wealth management is likely to remain relevant in IELTS Writing Task 2 essays. To prepare, practice writing essays on related topics such as:
- The role of financial education in schools
- The impact of technology on personal finance management
- The challenges of retirement planning in an aging society
We encourage you to write your own essay on the topic discussed in this article and share it in the comments section. This practice will help you improve your writing skills and prepare for the IELTS exam effectively.