January is a time for taking stock.
Many look back at what went well over the last year and plan ahead for success in the coming year. Resolutions for change can assist this process.
However, according to research from the University of Scranton in Pennsylvania, only 8% of people keep their New Year resolutions and if February is known for anything, it must surely be the unused gym memberships which are all that remain of those good intentions.
Interestingly, according to research from Fidelity, 31% of Americans include a financial resolution with ‘saving more’ topping the list (55%) then ‘paying off debt’ (20%) and ‘spending less’ (17%).
How about a resolution this year which is one that you not only keep but which will improve your life for not just one year, but for many years to come?
Develop a plan to reach longer-term goals.
Whilst still working, retirement can seem a long way off and only the most organised and forward-looking individuals are likely to take the time to consider the question of how much they need for a comfortable retirement. According to Aviva, six out of ten people wish they had planned for retirement earlier.
With the virtual disappearance of gold-plated final salary pension schemes, individuals have to take responsibility for ensuring that they have a secure retirement. A State pension at age 65+ of around £7,700 per year is unlikely to suffice! Indeed, a figure many times that amount will probably be needed.
In order to work towards that level of provision, a private pension is required together with other savings vehicles such as VCTs, EISs, bonds and ISAs. This will necessitate some financial planning, structuring, investment management and overall coordination.
So this year, resolve to take your retirement planning seriously. It is well-known that a resolution is more likely to be kept if shared with others and help is enlisted.
In order to discuss the options further, call David Saunderson, Jeremy Davis or one of the team at Cantab Asset Management Ltd on 020 3651 0570.
We look forward to meeting you soon.
Risk warnings
This document has been prepared based on our understanding of current UK law and HM Revenue and Customs practice, both of which may be the subject of change in the future. The opinions expressed herein are those of Cantab Asset Management Ltd and should not be construed as investment advice. Cantab Asset Management Ltd is authorised and regulated by the Financial Conduct Authority. As with all equity-based and bond-based investments, the value and the income therefrom can fall as well as rise and you may not get back all the money that you invested. The value of overseas securities will be influenced by the exchange rate used to convert these to sterling. Investments in stocks and shares should therefore be viewed as a medium to long-term investment. Past performance is not a guide to the future. It is important to note that in selecting ESG investments, a screening out process has taken place which eliminates many investments potentially providing good financial returns. By reducing the universe of possible investments, the investment performance of ESG portfolios might be less than that potentially produced by selecting from the larger unscreened universe.
