If the findings of a recent study are to be believed, the UK faces two significant financial challenges as the specter of Brexit looms large.
Firstly, the level of wage inequality in Britain continues to grow. While the average Kensington resident earns £58,816 per annum, those who live in Nottingham take home just £12,232 each year.
Secondly, the average wage for the whole of the UK is just £19,432, as disposable income levels continue to plummet nationwide.
With this and the rising value of state pensions in mind, it’s becoming increasingly difficult for those in work to save towards their future. This is where expert financial planning can come into play, as this delivers a number of practical benefits to savers. For example:
1. Gain a True Understanding of your Finances
Interestingly, the very process of organising and planning your finances can be beneficial, even if you don’t always follow the expert advice that you receive to the letter.
This can offer a clearer insight into your precise financial circumstances, for example, including your income, outgoings and existing level of savings. It will also help you to calculate the amount of capital that you hold across various workplace pension plans, before you determine precisely what to do with these funds.
From here, it’s far easier to make informed decisions regarding your financial plans and your objectives for the future.
2. Financial Planning Creates a Clear Path Towards Growth
Another advantage of financial planning is that it helps to create a clear path towards growth, as you look to connect the various dots between your real-time circumstances and your future goals.
This is particularly important for those who intend to plan for their retirement while in work, as it enables individuals to set realistic objectives while creating manageable time frames in which to accomplish these.
Expert service providers like Tilney are well-placed to help in this regard, while they can also provide a full and comprehensive financial plan that offers contingencies to account for a number of eventualities.
3. Embrace an Integrated Approach that Includes Investment and Estate Planning
On a final note, financial planners can also provide an integrated approach to managing your finances, and one that includes investment and estate planning.
This can help you to optimise your wealth prior to your retirement, while also creating a holistic plan that delivers multiple sources of long-term income.
Another huge benefit of this is that it takes minimises the stress that can be caused by estate management in later life, as a proactive approach enables you to distribute assets ahead of time and avoid a hefty Inheritance Tax bill.
This type of attention to detail is key, while it shows precisely how expert financial planning can make a significant difference to you future.