Financial Planning is for life – not just for Christmas

25th November 2013

Taking place from Sunday 24 November, Financial Planning Week is the national campaign organised each year by the Institute of Financial Planning (IFP), its members and supporters to raise awareness amongst the general public of the importance of Financial Planning.

A recent survey, which was conducted by YouGov for Financial Planning Week in association with Liontrust questioned over 2,000 people aged 18 or over across Britain. It discovered that whilst people are making financial plans for Christmas most are still failing to make comprehensive plans for their future.

Here are some of the headline results:

  • Thinking ahead to spending plans for Christmas this year, 38% of Brits have already worked out what they will be spending and they will definitely stick to it and a further 18% are confident they can afford to spend what they like this Christmas. However, 20% say they have a vague budget in mind but they probably won’t stick to it. 9% have no idea what the cost of Christmas will be for them but said they will worry about it afterwards.
  • The survey showed an increase in the amount of time people now spend worrying about money with 82% of respondents indicating that they worry about money some, most or all of the time compared to 80% in 2012 and just 60% in 2011. Only 2% of people say that they never worry about money.
  • Looking at the bigger picture, just 4% have a comprehensive financial plan in place with goals identified and prioritised with costs and a schedule of how and when they can achieve them financially. Only 11% say they are likely to make a comprehensive financial plan in 2014.

With rises in the cost of living outpacing the increases in many people’s income at present, it is clear that times are still tough, despite the recent reports from the Bank of England that the recovery has finally taken hold.  More than ½ of respondents said inflation and rises in the cost of living was a fear for them.

The survey revealed some other interesting insights into where adults in Britain stand when it comes to their current finances:

  • 44% have savings for emergencies and other goals
  • Only 26% have an up-to-date Will
  • Whilst 25% have life insurance to protect their dependants in case of premature death, only 6% have an income protection policy in place, indicating that a large number of people risk financial disaster if accident or illness were to prevent them from working long term
  • 14% have savings for retirement but are not sure it’s enough to provide the income they will need
  • 11% are confident they have enough savings to provide them with the income they’ll need in retirement
  • 9% have savings for retirement but know it’s definitely not enough to provide the income they’ll need

At Fortitude we regularly receive feedback from our clients which shows that, as a result of taking advice from a Certified Financial PlannerCM, they feel better organised, more comfortable about their financial arrangements and more confident about their future.

This is in sharp contrast with the survey findings which showed that only 14% usually seek help or advice from a professional adviser when making Financial Planning decisions.

The Fortitude team support the aims and objectives of Financial Planning week.  We believe that many people will benefit from using the tools that are available via the Financial Planning Week website www.financialplanningweek.org.uk