While it would be easy (and at least partially true) to suggest that a volatile economic climate is preventing British citizens from saving towards their retirement, there also appears to be an issue with the mindset of savers.
This was shown by a recent study, which revealed that 35% of respondents consider saving for a potential emergency more important than long-term financial milestones. More crucially, just 29% view saving towards their retirement as a priority, which could in turn leave them at the mercy of an ever-dwindling state pension plan when they finally finish work.
With these points in mind, it’s imperative that British citizens challenge their outlook and finally look to get smart with their money. One way in which they can achieve these goals is to partner with a financial planning expert, as this can deliver a number of benefits to savers.
Understand the positive impact of financial planning
While high inflation and stagnant wages may have restricted disposable income levels in recent times, this does not mean that you should not use your available capital to its fullest potential.
This is where financial planners such as Tilney can be worth their weight in gold, as their experts can help to challenge your mindset and explain the positive implications of carefully managing and structuring your wealth.
Similarly, companies of this type also offer a comprehensive range of services to their clients, from investment and portfolio management to pension planning and Inheritance Tax. As a result, they can offer an overview of your current financial circumstances while also formulating an integrated plan that helps you to achieve your individual goals, providing a clear growth path in the process.
As you realise the benefits of detailed financial planning and the financial benefits that a long-term outlook can deliver over time, you can begin to change aspects of your behaviour and build towards a more secure future.
The practical benefits of financial planning
The practical benefits of financial planning should also not be overlooked, with a comprehensive and detailed plan capable of both reducing your expenditure (and tax liability) and potentially increasing any returns on investments.
From combining financial planning with investment services to proactively organising your estate in a bid to minimise Inheritance Tax, these aspects have a cumulative effect on your ability to save and optimise the capital at your disposal. If you start early enough, you can even reap the rewards of this long before you leave the world of work, creating a scenario where you can retire in relative luxury and genuine peace of mind.
Of course, the current economic climate makes it hard for people to save, and this is arguably why people have been deterred from adopting a long-term outlook when it comes to their pensions. However, the presence of such a climate makes it more important to be proactive and work closely with financial planners, as you look to make the most of your capital and allow for any imperfections in the economic state.