Independent Financial Planning Throughout the South West & South Wales
A study, carried out by the Centre of Economic and Business Research (CEBR) in January 2015 for the insurer Liverpool Victoria stated a typical newborn will cost £229,251 to raise to the age of 21.
Financial education in the UK is poor and whilst some measures have been taken to address this, most of our financial guidance and education comes from our parents. Depending on their relationship with money this can be a very hit-or-miss affair. The need to earn and save money is something that becomes apparent in adolescence when supporting yourself and working for a living starts to become real. From this moment forward we realise that everything has some kind of financial consequence or requirement. The sooner resources can be placed behind achieving goals the better, and laying the foundations of financial planning at a young age can make experiences later in life much easier. The reality is at this stage this is often the responsibility of parents rather than the child.
Young adulthood is full of financial issues, the cost of higher education means young adults are often saddled with debt before even starting a career. The cost of renting or saving for a deposit on a house becomes ever more daunting.
When starting work it is likely that a pension will be offered to at least start the process of longer term planning, however this has to be balanced with saving for more immediate needs. It is often not until you reach your late 30’s and 40’s, after marriage and children, that the need to evaluate things financially arises. At this point costs are often at their highest and anticipated costs over the next 20 years towards retirement see no let up. It is here however that most of us realise we are about half way though our lives, based on average life expectancy in the UK Male age 79.4 Female age 83.1 (office for National Statistics)
There are many life events that pepper the years between mid-life and retirement, many relate to the costs associated with family and children, but others such as employment and owning businesses have huge impacts on the propensity to save for retirement and beyond.
The image below illustrates the kind of events that typically occur in life. Sound financial planning should be able to help you mitigate or plan for success in these areas and events when they arise. Find out more here.
Please email or call Alison (07496 689 309) or Adrian (07725 343 815) for a no obligation review of your circumstances.
Alison Davis and Adrian James are authorised and regulated through Mulberry Wealth Management Ltd. Mulberry Wealth Management Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA). Our Financial Services Register number is 499351.
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