4 simple ways advice can secure your financial future now

A recent report from the International Longevity Centre (ILC), quoted by Unbiased, reveals that financial advice could be worth an average of £5,000 a year over a decade. 

Brits deemed as “affluent” are expected to have £43,300 more after a decade if they sought advice (compared to those who didn’t). The difference among those “just getting by” was even more pronounced, with advice-seekers ending up an average of £50,300 richer after 10 years than those who didn’t take advice.

This additional wealth could make a huge difference. Reports suggest the extra money would allow you to retire three years earlier than your non-advised counterparts while funding your desired retirement lifestyle for six more years. 

Keep reading for four simple steps you and HDA can take now, to help ensure you enjoy a stable financial future.

1. You can start planning early for your future

Talking to an adviser might mark the first time you’ve sat down and properly thought about the future you want, and how you can attain it.

Generally, starting early is key. This gives you plenty of time to save and invest, helping you to take advantage of investment growth and compounding. You’ll also find that the earlier you start, the smaller percentage of your monthly income you’ll need to put aside.

Speak to us now and we can help you think about the key questions you’ll need to answer, from how and when you want to retire, to how much this might cost and if you can afford it. 

2. You’ll find tax-efficient ways to invest and grow your wealth

Saving and investing tax-efficiently means that you get to keep as much of your hard-earned money as possible. 

Pensions are incredibly tax-efficient, allowing you to benefit from basic rate tax relief on your contributions. You can even claim extra relief if you move onto the higher or additional rate.

Automatic tax relief means that topping up your pension by £100 only costs you £80, as 20% is provided by the government.

Not only that, but you can usually withdraw up to 25% of your fund tax-free when you retire.

ISAs, too, offer tax-efficient savings and investment options. You don’t pay tax on the interest you earn in a Cash ISA, while the gains you make in a Stocks and Shares ISA are free of Income Tax and Capital Gains Tax (CGT).

Whether you’re looking to manage your liability to Income Tax, CGT, or Inheritance Tax (IHT), your HDA adviser’s expert knowledge can help – particularly in the current climate of frozen allowances and drops to tax thresholds. 

3. You can protect yourself and your wealth against the unexpected

A financial plan allows you to think about your goals and then map a path to reach them. But we understand that things won’t always run smoothly and that plans can change.

That’s why we use cashflow modelling to look at life’s “what ifs”, helping you to understand the financial implications of the decisions you make. 

We can also put plans in place to help you overcome life’s obstacles. This might mean ensuring you have protection to cover lost income through illness or job loss. Or that you have sufficient funds to cover the potential cost of later-life care, and contingencies for that money if care isn’t required.

4. HDA can provide peace of mind and reassurance 

The role of the financial planner has been evolving for some time. Whereas a traditional adviser would look after your money by recommending products, our planners look after your financial wellbeing through understanding your goals.

We get to know you, helping you live the life you want now while ensuring you have confidence in your economic future.

In fact, a recent report in FTAdviser has suggested that offering peace of mind and reassurance is now the main job of a financial planner. This has been especially the case during the cost of living crisis.

Professional financial advice helps you to remain calm, whatever is happening in the wider world, helping you to stay unemotional and avoid the kind of knee-jerk reactions that could have long-term consequences.

Get in touch

If you want help or reassurance when it comes to managing your long-term financial plans, our team of expert planners can help. Please get in touch via email at enquiries@hda-ifa.co.uk or call 01242 514563.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.