It seems after all that for those of us who lost their hair at a young age (including me), there might be an advantage to going bald. A major report released on 5 July 2018, by the Pensions and Lifetime Savings Association (PLSA) has revealed that 30.4 million people are at risk of not saving enough money for the retirement that they desire.

 

When comparing the UK system to that used in Australia, the report highlighted the fact that Australians receive a warning letter flagging up that anybody relying on the state in their retirement will be unlikely to afford a car, will have only basic clothing and will even have to rely on friends to cut their hair! Whilst this is likely to be unwelcome news, it does seem like a useful reality check. The idea is to highlight at an early stage, the importance of people taking responsibility for their own futures and to start a financial planning process in order to work towards a realistic achievable goal.

 

The UK has started to address the massive problem of people not funding enough for their retirement. Workplace Pensions Automatic Enrolment will certainly help but it is only a starting point though. Many people saving into a pension have no idea what they can realistically expect this to generate for them. There is likely to be an awful lot of unrealistic expectations. Planning ahead is absolutely key to avoid sleepwalking into a very difficult retirement.

 

Working with a financial planner typically now involves using a cash flow forecasting process which is updated on a regular basis to ensure that people continue to be on target to meet their goals or to look at the effect of unexpected occurrences. The earlier this is started, the better the likely outcome.

 

So, planning ahead is vital, especially if you want to continue to be able to afford a haircut!

 

 

Ian Jenkins

APFS Chartered

 

This information is provided strictly for general consideration only. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned about the content hereof and any such action or inaction. Professional advice is necessary for every case.