There is no denying that as a society we are living longer, this ultimately means most people will need to fund a longer retirement period. This, coupled with new pension legislation has effectively doubled the period of time that financial advice is needed.
UK consumers aged 50-70 have £1 trillion of liquid investable assets predominantly sitting in expensive, inflexible life insurance contracts. There are huge potential benefits to be gained by these individuals taking the decision to move this money into the modern world, where lower costs and greater control over fund management can be achieved.
Over the next ten years an additional £400 billion is forecast to filter through the inheritance tax threshold as wealth is passed to the next generation. This increased flow of intergenerational money has largely been influenced by a rise in property prices over the last two decades, which is commonly ignored in estate planning.
As we move into 2018, politically, we face further instability as Brexit talks continue and President Trump remains unpredictable. On an economic level, in 2017, sterling’s value versus other major currencies fell to its lowest level since the 1960s, inflation hit a four-year high and levels of real household disposable income fell drastically as consumer credit usage rose.
Against this backdrop, Fairstone’s research shows that 52 per cent of respondents do not have a plan in place that will provide basic financial security in retirement. What’s more, fewer people are engaging with a financial adviser and 28 per cent didn’t know where to go to seek financial advice.
It is extremely worrying to see that the level of financial engagement amongst a representative portion of the population seems to have deteriorated. Despite the headlines and promotion of automatic enrolment and pension freedoms it is staggering to see that more than half of the people we surveyed did not have a retirement plan in place.
In such a volatile political environment and with markets still so uncertain, it is disappointing that respondents were reviewing their savings and investments less frequently. We understand that pensions are a complex area of savings, but we would urge people to seek advice and not ignore such an important part of planning for retirement.
The financial advice industry has always been dynamic. New regulations and an ever-changing landscape means that we are always striving to be ahead of the market and to offer innovative solutions.
Seeking professional advice can have long term benefits and can offer choices and opportunities that you perhaps hadn’t even considered. You don’t need to be a higher earner or super wealthy to benefit from expert advice, Fairstone can help you whatever your personal circumstances.
Why Fairstone? As one of the UK’s largest corporate Chartered Financial Planning firm, we are completely independent and offer true whole of market choice. Because we aren’t tied into any specific products or providers we can offer you the very best advice with solutions that are tailored just for you.
Fairstone has over 400 advisers and highly trained staff nationwide and 41,000 clients who trust us with their financial planning and wealth management needs. We oversee in excess of £7 billion of investments and pension assets on behalf of our clients and we secure over £1 billion in property finance each year.
With no lower wealth limits and zero exit fees charged, our advisers are accessible whatever your circumstances.