Please feel free to get in touch

Please see our Website Privacy Policy for information

Point of View Archive

Are you prepared for funding your future?

51% of over 55s in the UK do not know how much they have in their pension pot, according to new research* released from Sanlam, in partnership with OnePoll. And when asked if they thought their pension pot at retirement will be sufficient to last through their entire retirement years, 34% said no, and would expect to have to rely on Government support.

Perhaps more surprisingly, it suggests that only 15% of retirees will seek support from a financial adviser once retired with 37% preferring to conduct their own research online or via the telephone.

As financial advisers, we see people every day with different approaches to their financial planning. While some are savvy with their finances, others are unaware of the risk they could be taking because they have simply not thought ahead to the future.

For example, many of us buy insurance for mobile phones or for household white goods just in case they become damaged or fail to work, so that we continue our day to day lives with the luxuries we enjoy having: Some people will save for a holiday or a house deposit. But what about applying the same kind of thinking to ensuring we have the best life possible in other aspects?

Some people reach their chosen retirement date and are shocked that their pension savings won’t provide them with the income that they need in order to stop working. They simply haven’t grasped the fact that their pension needs to be managed, reviewed and contribution levels adjusted over the years. These are likely to be the 34% of people surveyed who now realise that their pension savings are insufficient.

The problem is that when it comes to money, there is no prompt for people to review their financial situation. No one will be there to give you a telling off because you never bought life insurance after having a baby, or started paying into a pension as soon as you could. Nor will you be taken aside to talk about inheritance tax planning or releasing equity from your home.  If you need financial advice, you have to go out and ask for it.

For many people, simply appointing a financial adviser can be a daunting step. Yet advisers are skilled knowledgeable people who can help you through the process of understanding and planning for your financial goals. This means knowing when you will need to use your money, what you will be using it for, laying out a plan of action, and importantly, minimising the risks of not reaching them.

What a good financial adviser will do for you?

These are some of the things that we will work with you to establish;

  • What, if anything, you need to do differently
  • How much you need to save
  • What types of retirement accounts  best suit your needs
  • What type of mortgage works best for you
  • How much, and what type of life and health insurances you need to protect you and your family’s financial security
  • How much to keep in an ‘emergency fund’
  • Whether there are any changes that may improve your tax situation
  • What rate of return you will need to earn to achieve your goals over a given time frame, and suggest appropriate investments according to your attitude towards taking risk
  • Whether you need to take any steps towards inheritance tax planning; and the various options you could consider when that time arises

If you would like to about your financial future, please do not hesitate to get in touch, we’d love to help. 

* Research conducted amongst 2,000 UK residents aged over 55 by independent research agency, OnePoll. 

Date issued: 17.09.15

Please remember any views or facts expressed above are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness. Any expressions of opinion are subject to change without notice. None of the information should be regarded as advice. Past performance is not a reliable indicator of future results. Investing involves risk and the value of investments and the income from them may fall as well as rise and is not guaranteed. Investors may not get back the original amount invested. Any tax treatment is dependant upon individual client circumstances and may be subject to change.

Sanlam is a trading name of Sanlam Wealth Planning UK Limited (Reg. in England 3879955) and English Mutual Limited (Reg. in England 6685913). English Mutual Limited is an appointed representative of Sanlam Wealth Planning UK Limited which is authorised and regulated by the Financial Conduct Authority.

Registered Office: St. Bartholomew’s House, Lewins Mead, Bristol, BS1 2NH.

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.