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The future does not take care of itself

As we leave the UK recession behind us, a valuable lesson has been learnt. More of us now accept that the future is not going to take care of itself financially.

It never was going to before, but when the economy is booming, there is always the misguided belief that both money and work will always be readily available.

There are also notable changes which affect our finances today which were not of concern ten years ago. For instance, university education is no longer free for our children, with the average cost of a three-year course rising to more than £26,000*.The age at which to claim a state pension has been increased. Access to benefits in the case of sickness, unemployment or disability is less straightforward. In essence, we have come to realise that our pay cheques may not stretch to meet all of our needs. 

For many of us, these are not financial concerns to cause sleepless nights, but if we want to ensure our offspring are educated, we live in our own homes and can retire with a reasonable amount of income, then we have to make what we earn today stretch to also provide for tomorrow. Even those who earn sizeable incomes cannot reach these financial goals without addressing the issues early on, and it should be a priority for everyone.

Every pound makes a difference whether we are being cautious when we spend it or considered when we save or invest it. What we do know is that single pounds which are regularly invested can turn into hundreds over a period of time. A ‘little and often’ approach can go a long way.

Financial planning is something we should all do from the day we start working and earning.

The challenge for many people can be knowing how or where to start. This is where Sanlam can help. 

  1. If you have a family, then you should consider the options for providing a form of income in the event of your being unable to work due to ill health or to provide for your family in the event of your death.
  2. If you want to retire comfortably, then review your current pension plans and check you are investing enough. There are alternative ways to invest for retirement and a Wealth Planner can advise you about your options.
  3. If you want to help your children financially when they go to university or to pay for a private education, then establish a time frame, a desired sum to accumulate and speak to an adviser about how to save tax efficiently or invest to reach your goal.
  4. If you have money which is scattered in a variety of savings or investment accounts, make sure you know what you have and where it is. If you find these difficult to manage consider whether to consolidate some accounts for ease of administration, but do ensure you are not losing valuable benefits or incurring unnecessary costs in doing so.
  5. If you have wealth to pass on when you die, find out more about inheritance tax planning and take steps to  bequeath  your estate to your beneficiaries without them paying more tax than they need to.  

At Sanlam we believe that careful wealth management can provide lifelong financial security. Our Wealth Planners help our clients to map out their future and to ensure that every pound which is invested is done so with purpose.

If you would like to discuss saving for the future, please do not hesitate to get in touch. We'd love to hear from you. Email l
etstalk@sanlam.co.uk

*http://www.telegraph.co.uk/education/universityeducation/student-finance/10987092/More-universities-to-charge-maximum-tuition-fees-of-9000.html

Date issued: 02.07.15

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.