I hope you have had a great Christmas and wish you the very best for the New Year.
The start of a New Year is often the catalyst to get things done that perhaps you have been putting off or just have not got around to doing. From our point of view the start of a New Year is an ideal time to review your finances. This could be an overall review of all your financial plans or just to specific areas, for example your pension or life assurance. Finances and financial plans should be regularly reviewed. Change is a constant and plans need to be checked to ensure they are doing what they should.
It pays to take financial advice
Recent research has concluded that savers who took advice in the early 2000s are on average £47,000 better off a decade later than those who chose to go it alone. The research from Royal London and the International Longevity Centre, published on the 28 November 2019, found savers who received financial advice between 2001 and 2006 were able to boost their pension wealth by £31,000, while also experiencing a £16,000 uplift in other areas of financial wealth, as measured in the two-year period 2014-2016.
Advice is not just for the very rich
The research found the impact of advice was greater for those of more modest means than for those who fell into the affluent category. The uplift for the affluent was 24 per cent in financial wealth (e.g. shares, ISAs, bank accounts), whereas it was 35 per cent for the non-affluent group. On pension wealth, the uplift was 11 per cent for the affluent compared with 24 per cent for the non-affluent.
The importance of ongoing advice
As I said earlier, we believe financial plans should be regularly reviewed. This is supported by the findings of this latest research which found the pension pots of those who took ongoing advice were on average 50 per cent larger than of those who had only taken advice once at the beginning.
Arrange a review
If you would like to kick off the New Year by reviewing your finances, why not contact us? The initial consultation is free and without any obligation. By taking advice you could be £47,000 better off in ten years!
Steve Graves
Director,
Robert Nicholas Financial Advisers Ltd