Building your wealth starts today – whatever your generation

Whilst each generation may have different financial planning needs, the recent cost of living pressures, high inflation, and increasing interest rates mean that reviewing your financial plans and seeking professional advice has never been so important.

Research by the International Longevity Centre has shown that taking financial advice leads to around £50,000 boost to total wealth over a decade. So, it’s never too late to start planning your finances.

Saving for children

Whilst children may not be actively saving, many parents and grandparents fulfil this role. Getting into the habit of saving as early as possible is a good discipline. However, research by NatWest showed that 83% of savers are using cash accounts, meaning that their money is likely to be worth less in the future due to inflation.

There are several options to put aside money for children and grandchildren, such as Junior ISAs and Child Trust Funds. You can also help them save tax efficiently by starting a pension when they are born and receive tax relief on your contributions.

Early career

Retirement planning often isn’t a priority, simply because you may have built up substantial debts and retirement is decades away. But the more debt you can pay off now, the better.

It’s also a great time to start saving into a pension. Automatic enrolment has led to more people saving through their employer, but most are still not saving enough. Pensions are one of the most tax-efficient ways to save for retirement, but delaying may mean you have to compromise on your lifestyle in the future, or make higher contributions later in your working life.

Mid-career

At this point you may be making the most of earnings to achieve a better quality of life, whilst protecting your family. You’re also likely to have had several employers and accumulated a number of pension pots. Retirement is no longer a ‘distant’ concept so it’s a good idea to get expert advice from a financial adviser to make sure your financial plans are on track.

You may want to consider making additional lump sum contributions into your pension to boost your retirement savings. In addition, it’s important to maximise your annual tax allowances for savings and investments.  If you would like some help, why not take advantage of the retirement savings accumulation advice service that TPT has put in place for you?  You can find out more about this service by calling Origen using the contact details at the end of this article.

Over 16,000 people, 200 businesses, and some of the largest organisations in the UK receive advice from Origen Financial Services' advisers across the UK. As a personalised advice-led business, their priority is to provide clients with the knowledge and tools they need to accomplish their financial goals.

Financial planning, however, is not just about saving and investing money; at this stage, you may be paying off a mortgage, or considering financial protection for your family in case of premature death or ill health, so you don’t leave your family’s well-being to fate.

Approaching retirement

This is a crucial phase in your planning. Start preparing a retirement budget, so you have a better idea of your current expenditure and how this may change when you retire.

It’s also a good time to think about how you want to convert your pension savings into retirement income. Options include:

• A guaranteed income for life through an annuity.
• Flexible income through drawdown, but your savings are exposed to investment risk.
• Take cash lump sums.
• A combination of options.

Some decisions can only be made once, therefore it’s extremely important to seek financial advice to help you decide which option is best for you.  You may therefore like to consider the Retirement Income Advice service that TPT has put in place for you with Origen Financial Services. To find out more, contact Origen using the details at the end of this article.

During retirement

At this stage, financial planning needs to focus on how best to maximise retirement income, reduce Inheritance Tax and pass more of your accumulated wealth to the next generation or your chosen beneficiaries.

Keeping wealth in your family requires careful estate and Inheritance Tax planning, including using allowances offered by the government, making lifetime gifts, and using trusts.

Families make the best decisions together

Origen is one of the UK’s leading national financial advisers and is authorised and regulated by the Financial Conduct Authority. Origen supports people and their families across all generations. The best financial decisions are often made as a family unit, so whilst financial planning needs may vary across each generation, it’s really important that families discuss their financial plans together.

If you would like to arrange a financial advice appointment with Origen, you can contact them on:

Email: TPTpensionadvice@OrigenFS.co.uk

Helpline number: 0800 819 9121