With the retirement age increasing and JAMs (just about managing) making up a sizeable chunk of the population, the New Year offers a chance to break bad habits and embrace new ways of living…and saving! Named as the Best Financial Advisor in Scotland and Northern Ireland at the Women in Financial Advice Awards 2018, Jayne Gibson from Insight.Out Financial is one of the leading lights when it comes to lifetime financial planning.
From advising clients in their 20s to guiding clients in retirement, here Jayne outlines some valuable financial advice regardless of what stage you’re at in life.
It’s never too late to make a difference and with determination to improve your finances, and a commitment to a new financial routine in the New Year, some solid planning could pay dividends in the future.
Reflecting on good practice throughout the decades, Jayne’s advice is as follows
You’re in your 20s
Whether having just finished University with huge loans or in the first rungs of your career, creating a lifetime financial plan is not a priority for many people in their 20s. In addition, the changing nature of work means that there’s more people self-employed, freelancing and in more fluid positions – ‘jobs for life’ are a thing of the past.
Ironically this is why it’s even more important than ever before that people have a financial roadmap. The huge pension pots that many people in their 20s would have heard about from parents are now hearsay and there’s an increasing reliance for people to create their own nest eggs for future years.
Becoming a prudent saver and starting to create positive spending and saving habits, will be of huge benefit in future decades, especially when mortgages, children, and life’s ‘curve balls’ are thrown in.
- Speak to a qualified financial advisor who will create that roadmap for you and review it annually. A little effort will help to generate huge rewards.
- Start saving for your future as early as possible – ideally when you first start work
- Small amounts in the early years are worth more as they have a longer period to grow in value
- All companies are now required to offer a workplace pension, with contributions from the business and the individual. Choose to opt in.
You’re in your 30s
This is the decade when thoughts about retirement start to kick in and the financial freedom of your 20s seems like a long time ago.
As you hit your mid to late 30s, the practicalities of reaching and preparing for a good retirement are important.
It can seem difficult to manage your finances as often mortgages, childcare and everyday bills are at a premium in your 30s however with solid advice, developing a practical pension plan is the best way to navigate your finances.
Finding spare cash can be a struggle but prioritise it – it’s as important as a weekend away or your TV subscriptions. Rethink your budget and stay on top of debt repayment.
If you have children, it’s not just their needs right now that need to be considered, but their future requirements such as further education.
If you haven’t started to plot your financial future, remember…it’s not too late! As people reach their 30s, they’ve progressed in their career, are more considered about their futures and committed to making long-term decisions.
- See a Financial Advisor. They will assess your current position, outgoing and make a financial plan for your future
- Make the most of your available tax allowances and are not losing out on your personal income tax allowance and child benefit.
- With a plan in place look to protection to make sure it stays on track even if the unthinkable happens.
You’re in your 40s
Although you might still feel like you’re 20 and wonder how you’re now in your 40s, it’s really time to think about your future.
You’re half way into your working life and reassessing your current financial situation, combined with where you’d like to be in the future is important.
If you have additional funds, speak to a lifetime financial planner about investments. If you’re already on the investment ladder, diversity investments and assess risks and rewards.
Estate planning is a reality of life, and it’s something that should be considered in your 40s if not before. Combining estate planning with your retirement goals will give a Lifetime Financial Planner a clear outline of where you’d like to be, and they can help to ensure the steps are in place to make this a reality.
- Consider your future lifestyle after retirement, and not just in terms of your finances. What are the goals, how do you see your retirement, what are your lifetime ambitions?
- This is the decade when you can really make a difference to building your wealth. Aim to contribute as much as you can to pension and ISAs as these help your money work more efficiently for you
- Consider annual reviews with a Lifetime Financial Planner
- Make sure your plans remain well protected
Five takeaways for building up a healthy pension
- Even the smallest amount will make a difference. Start building your savings from your first full time job
- As your salary increases, gradually build up your contributions
- Prioritise a pension
- Get solid advice. Meet with a lifetime financial planner who will set in place a financial plan for your future
- Schedule financial reviews with a qualified advisor who will be able to help keep your plans on track and help to make any adjustments needed to deal with life’s hiccups.
Insight.Out Financial offers independent financial advice and is committed to upholding high professional standards. We provide lifetime financial planning, and this can include pension transfer advice, investment planning, financial and tax planning, personal protection, and business financial planning. Our aim is to help clients to understand and achieve their financial goals.
Insight.Out can be contacted on 028 9590 2280 or via email: [email protected] The company is located at 137 – 141 Holywood Road, Belfast, BT4 3BE.
Risk warning: The value of investments and the income from them can fall as well as rise and past performance is not a guide to future performance’. You may get back less than you invested as investment returns are not guaranteed.