Retire earlier with a financial adviser

Retire earlier with a financial adviser. Almost half (45%) of clients believe they will retire earlier with a Financial Adviser. Consequently, it is estimated that 48% will retire by at least 60 years old. Research from Investec Wealth & Investment UK has revealed.

Moreover, the research highlights how education around financial planning together with pensions and investment choices have empowered clients. Subsequently enabling better control of their retirement decisions.

More than one in seven (15%) of those expecting to retire early said they will stop working up two years earlier. In addition, 38% believe support from an adviser will help them retire two to four years quicker. Notably,16% say they will retire five plus years earlier, when compared to not using a financial adviser.

In respect of the channel for receiving advice, 42% said their advice is mainly face-to-face. With one in five (20%) relying purely on digital advice. Critically, 38% said they combined face-to-face with digital.

Consequently, he research highlight ‘strong’ preference for face-to-face advice. Accordingly, 67% state it is important to meet face-to-face to discuss key life stage milestones. Likewise, to understand the financial implications of these. Furthermore, 90% of those who meet face-to-face rate the service as excellent or good.

However, 83% of those receiving digital-only financial advice also rate the service as excellent or good.

Commenting on the research “Financial Advisers can deliver genuinely life-changing results for clients. This enables them to retire earlier than they would have done if they had not sought advice.”

“Clients believe they are better informed about financial planning and on top of their retirement options. Hence this is helping them to decide to retire earlier than if they had not had any help.”

“A fundamental part of that is that clients still overwhelmingly prefer having at least the option of face-to-face advice.

“Digital services are clearly part of the equation and can deliver good results. But there is overwhelming strong support for face-to-face interaction.”

To understand how we can help you with your financial planning and long-term retirement goals, call us today. For a free initial consultation, call us on 01603 957599.

Pensions boosted in Q1 2024

Pensions boosted in Q1 2024. Pension savers increased their average quarterly contributions by 63% in Q1 2024 compared to Q4 2023. Moreover, as the end of the tax year drew closer, according to new analysis.

The average quarterly contribution amount for women rose by 60%, from £873 in Q4 2023 to £1,395 in Q1 2024.

Notably, men continued to save more in their pensions than women.  Consequently, extending their average quarterly contribution amount by 64%, from £1,242 to £2,038.

Furthermore, self-employed savers also gave their pensions a boost. Again in the last three months of the tax year.  Indeed their average quarterly contribution increased by 63% from £1,121 in Q4 2023, to £1,822 in Q1 2024.

Undoubtedly the increase in pension contributions could be attributed to savers maximising available tax relief.  By contributing to their total earnings for the year into their pensions or taking advantage of the increased annual allowance. This rose from £40,000 to £60,000 in the 2023/24 tax year.

Additionally, the rise in the annual allowance threshold appears to have motivated pension savers to prioritise their pension contributions.

Find out more here

Pensions boosted in Q1 2024.  To understand how we can help you with your pension planning and long-term retirement goals, call us today. For a free initial consultation, call us on 01603 957599.

Adults with a mortgage without life insurance

Adults with a mortgage without life insurance. Almost three in ten (28%) of young adults, between the age of 18-40 with a mortgage do not have life cover.  Critically should they die they have no monetary protection for their families.

This equals nearly 1.7 million (1,664,258) UK homeowners aged 18-40 with a mortgage.  Chiefly they do not have the safety net of life insurance to support their family if they passed away. The research by Beagle Street, surveyed 2,000 UK adults between the ages of 18-40.  Moreover they were also asked about their attitudes and behaviours towards life insurance.

Further research suggests that in 2023, there were more than £433billion of mortgage debts unsecured by life insurance.  This represents the combined value of home loan debt that would be owed if an expected death were to happen.  

Why don’t they have Life Cover

Of those who have a mortgage but no life insurance.  Firstly, a quarter (23%) say it’s because they don’t currently see it as a priority expense.  Secondly, a fifth (22%) have just never thought about it.  Notably, the same proportion (22%) say the cost-of-living crisis means they don’t have enough money to pay for it.   Likewise, slightly less (19%) report that they simply can’t afford it.

Nearly Half (44%) use a Financial Adviser

When looking to buy life cover, the most common resource those with a mortgage used, was speaking to a financial adviser (44%).  Indeed, only 16% went directly to a provider. 

Furthermore, maintaining the previous standards of living is often extremely difficult.  This often resulted in a family downsizing or moving to rented accommodation.  Most importantly many households have little to no savings.  With 50% of people aged between 18 and 40 saying they have less than £2,500 saved in a recent survey.  I’s so important to understand the impact of losing a contributing partner might be. Given the responsibility of bringing up children while also potentially paying for a mortgage.  It’s crucial to plan ahead to ensure families are protected financially should the worst happen.

Adults with a mortgage without life insurance.  To understand how we can help you with your life cover and your financial goals, call us today. For a free initial consultation, call us on 01603 957599.