Recent research* shows that many of life’s most enjoyable events come with a hefty price tag.
The research calculates that going to university, buying a house, getting married, having two children and then retiring could, on average, add up to £566,659 over the course of a lifetime.
This is a huge sum and illustrates the need for careful planning.
Separating ‘wants’ from ‘needs’
Many people believe that the key to meeting financial goals is to identify what is most important to you. For instance, whilst you might want to eat out several times a week; affording a home of your own, or enjoying a comfortable retirement, might mean cutting down on these nights out.
The problem is that we can all find ourselves trying to save for multiple goals at once and this can feel like an almost impossible task.
Taking financial advice can really help.
We can assist you in putting together a financial plan that addresses both your short and longer-term financial needs.
Getting the savings habit
As a starting point, everyone needs to have some money put away for emergencies like an unexpected bill. This means having some cash that can be accessed quickly.
Then it makes sense to think about the bigger and more exciting things in life, and have money saved that steadily builds up for the future.
Tax-efficient accounts like ISAs can really help here and you can invest lump sums or make regular monthly contributions.
Whatever your age, plan for retirement
Actually, we don’t talk about retirement, we like to call this period in life your Third Age. That’s the time when children have left the nest and you’re thinking about a step out of full-time employment or you’re asking yourself “what next?”
Even if your Third Age seems light years away you should certainly think about your pension savings. It will come around quickly enough, and the more you can save now, the longer your money has to grow.
If you think about it, failing to save for your Third Age might mean you’re struggling to afford even the basics, let alone be in a position to realise your dreams.
Are the best things in life really free?
Feeling the sun on your face as you enjoy a morning coffee or exchanging a smile with a loved one may be life’s little pleasures that do come free, however the setting where you’re sipping your drink or the reason for the exchange of smiles have probably occurred due to considered financial planning and saving.
If you would like help to plan for your future, get in touch for a no obligation, informal chat.
*Royal London, 2019
A pension cannot typically be accessed until age 55 (57 from 2028 and will increase as state retirement age increases). Your capital is at risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested.