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 financially going to take care of itself.

It never was going to before, but when the economy is booming, there is always 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 and fees alone can cost in the region of £30k. 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. The cost of our food basket demands a higher percentage of our take home pay than it did before. In essence, we have come to realise that our pay cheques won’t go as far and the demands on our money are now greater than before.

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. Those who earn sizeable incomes cannot reach these life financial goals without addressing these issues early on, and it should be a priority for everyone.

Every pound makes a difference when it is taken care of, whether we are being cautious when we spend it or considered when we save or invest it. What we do know at Sanlam is that single pounds which are regularly invested often turn into hundreds and thousands 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 your options to protect your income in the event of your ill health and provide a form of income 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.

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 accumulated sum and speak to an adviser about how to save tax efficiently or invest to reach your goal.

If you have money which is scattered in a variety of savings or investment accounts, speak to a Wealth Planner about how you can regain control, increasing the potential for your money to provide returns whilst managing your exposure to any investment risk.

If you have wealth to pass on when you die, find out more about inheritance tax planning. This can ensure that more of your estate is given to your beneficiaries without them paying more tax than they need to.

This article is for information purposes and should not be treated as advice. Individual circumstances should always be considered prior to purchasing any financial products. For further information please contact your Wealth Planner.

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

At Sanlam we believe that careful wealth management provides 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 and care.

To find out more about investing for the future, and to speak to a Sanlam Wealth Planner, email letstalk@sanlam.co.uk