No education on money from your parents or school? Does that sound familiar to you? It does to me too – one of the reasons I chose this career path is to help myself, and others, with making sensible and informed financial decisions.
Many people are in the dark about their finances
Statistics show that one in five people in the UK simply don’t know how much they have in their pension savings. As a financial planner, I want to help those people to feel more secure and confident about their future. I understand why you might shy away from confronting the numbers, but you have so much to gain by taking back control.
Having been in this career for the past nine years, I’ve had hundreds of meetings with new clients in vastly different circumstances.
Some of my best meetings are with people who can happily retire immediately based on their lifestyle, income needs, and pension savings, yet have no knowledge of their fortunate situation. I like to be a good messenger as most of us do! However, it’s not always the case. Sadly, I also meet people who are in tears in my meetings because they’re in their late 50s or early 60s with some suffering from ill health, yet have no choice but continue to work for another decade or longer.
Both scenarios can come about from a lack of financial education. Conversations around money are often missing, or stigmatised, in our upbringings.
Women, statistically, save less than men
Government statistics show that women in the UK save one-third less than their male counterparts. By the time they reach retirement age, this results in a 40% disparity in savings.
Women are also less likely to be saving into a pension at all. According to a 2023 report by the Institute for Fiscal Studies (IFS), Only 59% of British women aged 22-59 are contributing to a pension, compared to 66% of men in the same age group. Given that women’s average life expectancy is longer than men, this is concerning – especially for me as a female professional in the industry.
So if you’re among those who haven’t yet started, my message to you would be “better late than never.” At any age, there is always the opportunity to improve your future financial situation and as a result your lifestyle at a later or retirement age.
A lack of financial education is nothing to be ashamed of
I remember in the early days of my career, I would be slightly nervous before my meetings with chief executives or top university graduates, assuming they’d know everything about the financial markets, savings and investing.
However, this was rarely the case. Even those people who are highly educated and very successful in their careers often have little idea about managing their own money or financial planning.
Quite rightly, if we have no education on money from our parents or schools, how are we supposed to have the knowledge or improve our own financial affairs?
Financial advice has clear, measurable benefits
Research from the International Longevity Centre in 2019 shows that Brits who took professional advice for five years between 2001 and 2006 enjoyed an average increase in their assets of nearly £48,000 after 10 years, compared to those who took no advice.
So, if you need a helping hand understanding your current financial situation and what you could improve, perhaps you’d benefit from professional advice.
Every journey starts with the first step, which in this case is a no-fee consultation meeting.
This information does not constitute financial advice or a personal recommendation. Investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future returns. You may not recover what you invest.
