Following the last 18 months, I am sure we all excited that we are now starting to get back to normality. Many of us will have reassessed our lives and will have created new dreams for the future for ourselves and our families. We all do it either consciously or sub consciously, and they will differ dependent upon where we are in the cycle of life, some examples may be: -
They will all require money and unfortunately the harsh financial impacts of the pandemic will, for many people result in the realisation that that these goals will take longer to materialise or that they will just remain as DREAMS. Some of the financial impacts are: -
Whilst nobody saw the pandemic coming nor the enormity of the challenges we now face. Sadly, these adverse financial impacts, when combined with lockdowns will also result in an increase in the number of people suffering from mental health issues.
The economic recovery is likely to be slow, the vaccine will hopefully help, but how can we improve our personal finances? With most issues we go to the perceived experts, i.e., to get fit some of us hire a personal trainer, if we are ill, we go to the doctor, etc., etc., but if our finances are poor, many people will delay payments or borrow more, or do nothing at all which may increase anxiety even more. But why not seek financial advice?
In the UK around 6 million adults currently seek financial advice but are not willing to pay at current prices for this service or do not have sufficient funds to be invested. Indeed, the statistics show many more actually require assistance. The sad fact is that the actual cost and the impact of not seeking expert advice on both our mental and financial wellbeing, may be far greater than the cost of the advice itself.
Whilst a Financial advisor may not be able to increase your wages, protect your job or even guarantee the success of investments, they will be able to help you understand areas in which your finances could be improved. Highlighting the benefits of ensuring that you and your loved ones are sufficiently protected against the unexpected, by advising of ways to make your money work harder by using tax efficient savings plans or by using low-cost investment strategies to improve your pension plan.
Many organisations have now moved away from Final Salary pension funds leaving individuals to manage their own pension funds. The impacts could be: -
All the major companies worldwide are now investing heavily in assisting employees with mental wellbeing issues which is fantastic news. I am sure many of us have or will have suffered poor mental wellbeing to some degree over our working lives, therefore the fact it is now being recognised and that many employers are looking to assist must be applauded. It is likely that Covid will have increased the numbers suffering and hopefully they will receive the support they need.
Financial insecurity, financial wellbeing, and lack of understanding of personal finances are now recognised as a major contributor to mental health worries. More than 70% of UK employees say they worry about their finances whilst at work, resulting in a lack of concentration at work, increased anxiety or sickness, leading to time off work. The negative impact on the productivity levels on a companies performance could be the difference between a company surviving or having to close, ultimately leading to further financial and mental problems, hence the downward spiral continues.
Several organisations do now offer price reduction benefits to use on shopping and leisure activities and this must be applauded, but generally these are not well publicised in the workplace and go unused. Sadly, for smaller businesses very few of these options are available and the owners and employees receive no support.
More businesses are now starting to provide financial wellbeing packages, yet this still only accounts for 35% of all UK businesses. The cost of providing these packages can be minimised by taking advantage of salary sacrifice schemes. The benefits of a less stressed workforce could mean more focus at work, less sickness and improved productivity. Maybe this is due to a lack of financial awareness within the business environment, but I am sure the benefits out way the costs.
Most people now start work having been well educated and having degrees and doctorates, but if you asked them did anybody teach them about credit cards, mortgages, and debt, or about taxes, or how much they need in a pension plan to retire comfortably? The majority would answer no. This helps explain why so many people suffer anxiety and worse when confronted by unexpected financial issues.
Hopefully when we do get back to normal, these topics will become major elements of the school curriculum, and maybe companies will recognise the benefits of making financial awareness training accessible to all employees. A happy healthy workforce will more likely be a successful workforce.
Due to Covid, we are all now used to using video meetings from home, and many financial advisors are now working remotely and using technology, therefore are more accessible as meetings can take place in the comfort of your own home at a time outside of normal working hours. Possibly one of the few benefits of Covid.
ammonite use a combination of financial coaches and FCA regulated advisors, they initially provide a healthcheck and goal mapping session to understand the clients’ financial requirements and their future life goals including retirement planning. Then if required the advisors will produce and implement a financial plan to assist the client with achieving their goals. The process is affordable and accessible to all and can be provided to individuals, or to organisations who wish to improve the financial wellbeing of its employees either directly or as part of an employee benefits package.
Nobody should be penalised because they did not receive financial advice. We are all entitled to have dreams and goals both big and small, we all deserve the opportunity to achieve these goals, to be healthy and be happy, and perhaps a small amount of time and money spent on financial education & coaching and an awareness could make a huge difference to all of us.
When we think about your hopes and dreams for the future, dream big, and take the first steps to make them come true.
Having been a financial controller with one of the UKs largest manufacturing companies for 35 years, I became aware of the lack of financial knowledge in the UK, and how this negatively impacts a…
