Financial advice is more important than ever

Research commissioned by Schroders Personal Wealth found that a huge 85% of UK consumers currently don’t have a financial adviser (1). A third of those surveyed claimed that they weren’t wealthy enough for a financial adviser (31.9%), closely following by the belief that they were too expensive (26.8%) and that they felt confident managing their own finances (26.6%).

But if you’ve yet to speak to an adviser, the second best time to seek financial advice is today.

We understand that you’ve worked hard all your life to save for your retirement and it’s our aim to help your money work hard for you. Sound planning and good advice could make the difference between the future you deserve or one in which you have to make compromises.

There are often barriers to appointing a financial adviser. You may feel that you’re not wealthy enough or that you have already saved enough for your future, yet in reality almost everyone could benefit from professional financial advice. And in this period of high inflation, market volatility and economic uncertainty, there has probably never been a better time to seek financial advice.

While it may be possible to reach your financial goals alone, you could improve your chances of getting there with the help of a financial adviser.

Most of us are able to articulate where we want to be in the next ten years. Some people even have the ability to visualise where they want to be in twenty, thirty or even forty years’ time. What is more difficult however, is stating with confidence how we are going to get there.

Our research has found that the majority of people (70%) either don’t know or are unsure how much income they will need in retirement. This makes being able to plan for a stable financial future very difficult.

A financial adviser can help you to understand how much money you’ll need in retirement. They will consider factors such as your life expectancy and expected investment performance, interest rates and inflation. They also consider your current financial situation, how much you spend, save and invest, the tax rates you pay, your hopes for the future and your intended retirement date. This is what’s known as cash flow modelling.

Cash flow modelling can help you manage any wealth you have built up, work out how much you need to save and the returns you require to meet your goals. With the help of an adviser you could approach retirement with the confidence that you’ll still be able to enjoy your camping trips, cruising holidays and visits to the cinema…or whatever makes you happy.

Just as you plan other areas of your life, we believe a financial plan could give you the power to take control of your financial future. We could help you build that plan and bring it to life. Creating a roadmap which aims to make the most of your money to help you meet your future goals can be for everyone.

The support your financial adviser can provide doesn’t need to end when a personalised plan has been created. With our ongoing advice service, we can provide regular check-ins to review whether you’re still on course to reach your future goals.

Such support can provide comfort, especially when you’re busy living your life and navigating the highs and lows that often come with it. You’ve always been driven to achieve the best for your financial future, and a personalised financial plan could help you succeed.

If you do consider yourself to be financially savvy, then your ability to confidently save and invest may be high. This assurance can be tested though during times of difficulty and volatility.

Many challenges may be external which you have no control over – sudden stock market moves, rising inflation or political unrest, for example. Yet they can also be personal, some of which you can influence such as saving to buy a house or the cost of having children, but could equally arrive out of the blue – divorce, loss of a job, or an illness.

These life events could impact your wealth management capabilities at any point during your life. This could be when the support of a financial adviser becomes invaluable.

There is a lot to be concerned about at the moment. Inflation has recently hit highs not seen in decades, interest rates are on the up, the ongoing conflict in Ukraine, and rising utility and food bills.

It’s also a worrying time for investors. It’s widely appreciated that stock markets go up and down and that the key to successful investing is to commit for the long-term, yet these times certainly feel very unprecedented.

This is where the support of a financial adviser could benefit you. A steady hand to steer the ship as it were, as the storm rages around us. Markets can turn quickly and are difficult to predict. Having a financial adviser by your side could give you the confidence to see through short-term stock market dips.

An adviser’s task is to help you fit together all the moving pieces – dreams, income, outgoings, and an uncertain economic landscape – to create a cohesive plan that aims to help you achieve your goals.

(1) Impact of inflation research, Schroders Personal Wealth (August 2022)

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In preparing this article we have used third party sources that we believe to be true and accurate as at the date of writing. However, we can give no assurances or warranty regarding the accuracy, currency or applicability of any of the content in relation to specific situations and particular circumstances.

The value of investments and the income from them can fall as well as rise and are not guaranteed. The investor might not get back their initial investment.

There is no guarantee by investing money it will keep level or beat inflation, particularly when inflation is high.