Are you aged 25 to 50?

Different times in life require different financial strategies. This blog post covers earlier on and later on in life.

Earlier On

Morningstar recently started a serious of video interviews looking at different financial topics. This 5 minute clip is about ‘the early years’ and covers a few basics, such as making sure in your late teens and early twenties, when you start work and earning, that you pay down previously accrued debts (such as student loans and credit cards or loans) when you can. Then think about a disciplined saving approach. The alternative to this is spending what you earn without thinking about it but if you save on a regular basis THEN spend what is left it builds over time. The interview finishes with the ‘pensions v ISA’ product question and despite the favourable tax breaks for pensions the flexibility of ISAs gets the nod for ‘the early years’

http://www.morningstar.co.uk/uk/news/articles/106998/Financial-Planning-in-Your-Early-Years.aspx

Later On

Moving on a generation or two, the product provider company MetLife is focusing on the financial needs of what they call ‘the Uncertain Generation’ – UGen for short. Their research shows that those born between 1961 and 1981 are facing unprecedented levels of uncertainty with competing financial needs, making it difficult for them to plan for their retirement.

MetLife have developed an online calculator which should be helpful for all those aged between 30 and 51. http://www.financialfitnessatfifty.co.uk/

As well as showing you how your pension savings compare to the national average, the calculator will also give an estimate for the age that you will be able to retire, based on the retirement income you expect to receive.

The calculator only take a few moments to complete and you don’t need any paperwork to hand, just an idea of what you have in pensions, savings and any debt as well as the age and income you’d like to retire on.

If having completed the calculator you find your pension income at 50 is short of what you hoped it would be, then you’re not alone – MetLife UGen research shows that the average 50 year old has only saved 44% of what is required to guarantee a minimum standard of income when they stop work.

By the time you are 50 you are on the home-straight to retirement – yet just 11% of 50 year olds have seen a financial adviser. That’s despite 51% saying they’d like to see one in order to regain control of their retirement.

If you are one of the uncertain majority and you’d like get some certainty on your financial plans then please have a look at the pension (http://www.iangreen.com/pensionperformance.php) and retirement (http://www.iangreen.com/retirementincome.php) section of the Green Financial website or contact us to find out what the best options are for you.

Or if you are just starting out and would like help with saving for the future so that you are part of a certain generation (!) please get in touch.