Planning your finances is one of the most important things you can do to take control of your future

Emma-Lou Montgomery

Fidelity Personal Investing

It’s a startling fact, but as a nation we spend more time and energy planning a wedding, pondering whether to have kids or thinking about divorce than we do our retirement plans.

One survey¹ that looked at how much time UK consumers spend preparing, planning and deciding on life moments – both big and small – reveals some startling facts about where our priorities lie.

We spend longer deciding whether to get divorced (15 months) than when to retire (13 months). We also spend more time deciding to have children (12 months) than we do preparing financially for them (10 months).

On average, women spend more time than men planning, preparing financially and making big decisions. Women spend nine months actively planning to buy their own home, compared to six months for men, and they actively plan divorce for nearly a year, compared to nine months for men.

No surprises then that when it comes to financial regrets, it seems we have a few – the main one being that we feel we have failed to save enough. That’s the biggest regret of as many as three in five of us (60 per cent). Probably as a result, one third of Brits say they feel financially unprepared for the decisions they will have to make in the future. And more than a fifth feel as though they have left it too late to save (22 per cent).

One third of Brits say they feel financially unprepared for the decisions they will have to make in the future

But for some, thinking about their finances is just all too much. As many as 16 per cent of those surveyed said they are so crippled by the fear of the unknown they simply do nothing at all.

The way to avoid financial regrets is to face facts – and plan ahead. Both self-invested personal pensions (Sipps) and Isas are tax-efficient ways to invest for your future. You can choose to pay in lump sums or set up a regular savings plan from as little as £40 a month – or arrange a combination of the two.

Generally the earlier you start investing and longer the time frame, the more potential you have for your money to grow because of the power of compounding, which is when you earn interest on top of interest, making your savings grow even faster.

A Sipp can also help you to take control of your retirement savings if you’ve acquired several pension pots with different employers over the years. Bringing them together in a Sipp can make it easier to see and manage your pensions all in one place. Plus a Sipp offers lots of flexibility in how you can take an income from your pension, as well as the potential for more investment choice and lower charges than your existing pensions.

To find out more about investing for the future and retirement planning, go to fidelity.co.uk/retirement-revolution or call 0800 414 113

¹Research conducted by Censuswide among 2,061 UK consumers between 24 and 30 August 2016.
Points to bear in mind

The value of investments can go down as well as up so you may get back less than you invest. This information and Fidelity tools are not a personal recommendation for any particular investment.

Tax treatment depends on individual circumstances and all tax rules may change in the future. With pension products you will not be able to withdraw your money until you reach age 55. 

It’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the benefits, charges and features offered.

To find out what else you should consider before transferring, please read our transfer factsheet at fidelity.co.uk/transfer. If you are in any doubt whether or not a pension transfer is suitable for your circumstances we strongly suggest that you seek advice from an authorised financial adviser. 

LEAVE A REPLY

Please enter your comment!
Please enter your name here