Have you considered financial advice?
Featured Products Promotional FeaturesPosted by: Dental Design 23rd November 2022
Like many things, our finances aren’t always predictable. Even those on healthy incomes can be struck by unexpected expenditures, especially in an economy that is steadily becoming more expensive for everybody.
Financial planning and a deep understanding of your financial situation is highly beneficial. But what is your knowledge like and are you accessing financial advice?
UK households and their finances
The last couple of years have been an interesting time for people across the UK in terms of their savings. In some cases, lockdown gave people the opportunity to save money, especially if they were furloughed and still receiving a significant percentage of their salary. Without the need to commute to the office, no meals out, holidays and other occasions put on hold, people could direct the funds usually set aside for leisure and treats into their savings instead. In fact, some reports suggest that households collectively saved around £190 billion during lockdowns.[i]
Of course, on the other side of the coin is the complete opposite. Business owners, those who didn’t qualify for furlough or individuals who lost their jobs during the pandemic are unlikely to have experienced quite the same good fortune, and many people left without a source of income needed to dip into their savings to get by
Now, the cost-of-living crisis is having a huge impact on millions of households across the nation. Income stagnation combined with rising everyday costs of everything from food to petrol have seen people really begin to struggle. Those who were already barely getting by are now unsure how to proceed, while those who were in healthy financial positions have started to feel the pinch and have begun to retrench and save where possible. Supporting this, research suggests that average household savings are now in steep decline, with money set aside dwindling faster for most people than it has since 2009.[ii]
That’s not to even mention the millions of people already far below the poverty line, who are now in a worse position than ever before. Current estimates suggest that 1 in 5 people in the UK are living in poverty (22% of the population) – a shocking figure that is only likely to get worse if prices continue to rise.[iii]
Financial advice and UK attitudes
Interestingly, despite people now needing to pay more attention to their finances, the number of individuals accessing financial advice and general understanding of financial planning remains low. A recent survey found that two in five households know little about financial planning, while a significant 47% of households have never accessed any financial advice at all.[iv]
Additionally, even in the face of current challenges, two-thirds of households have not accessed financial advice this year. Even when given the option of free financial advice, many respondents remained sceptical, with 58% saying they had not used it this year. Plus, those who did seek financial advice mostly turned to family members, friends, news and online sources – valuable support, but not experts that can truly make a significant difference.[v]
In many ways this makes sense. People are naturally wary of using unfamiliar services, and financial advice does usually come with a cost – something that households may not be able to afford right now. However, accessing financial services, even free ones, early and gaining a deeper understanding of finances is vital, especially as this can set people up to make changes that can help them save considerably in the long term.
Furthermore, in our current economy, accessing financial advice early will help give individuals breathing space and more time to save and achieve any goals where possible, no matter whether this is generating capital for a big investment or event (such as a wedding or buying a practice) or simply to build a safety blanket so that savings remain at a healthy level.
Advice you can always rely on
For dentists, accessing high quality financial advice isn’t always straightforward. Not only does the unique nature of dentistry mean that dentists have unusual working conditions and status, but it is difficult for firms who don’t specialise in helping those in the profession to understand the finer points of the industry.
The award-winning team of Independent Financial Advisers (IFAs) at money4dentists has been assisting dentists for decades. As we only work with dentists, we completely understand how the profession works, the rules and regulations, and how to help dentists to achieve those all-important financial goals.
Seeking help during an unstable time
What research shows is that many people are unsure about accessing financial advice, even when they are struggling. However, by finding IFAs that truly understand your position and who can help you to save, understand your finances and put together a smart plan for the future, you can ensure that your capital remains healthy even during this tough time.
For more information, please call 0845 345 5060 or 0754DENTIST.
Email info@money4dentists.com or visit www.money4dentists.com
Richard T Lishman
Managing Director of the 4dentists Group of companies
[i] The Guardian. Covid Savings: Britain Built Up Second Highest Level On Record in Early 2021. Link: https://www.theguardian.com/money/2021/jun/30/covid-savings-britain-built-up-second-highest-level-on-record-in-early-2021 [Last accessed July 22].
[ii] [ii] Scottish Widows. Future Finances Index July 2022. Link: https://adviser.scottishwidows.co.uk/assets/literature/docs/ffi-q222.pdf[Last accessed July 22].
[iii] JRF. Overall UK Poverty Rates. Link: https://www.jrf.org.uk/data/overall-uk-poverty-rates#:~:text=More%20than%20one%20in%20five,in%20poverty%E2%80%93%2014.5%20million%20people. [Last accessed July 22].
[iv] Scottish Widows. Future Finances Index July 2022. Link: https://adviser.scottishwidows.co.uk/assets/literature/docs/ffi-q222.pdf [Last accessed July 22].
[v] Scottish Widows. Future Finances Index July 2022. Link: https://adviser.scottishwidows.co.uk/assets/literature/docs/ffi-q222.pdf [Last accessed July 22].
