Financial wellbeing: 4 steps to creating a financial wellbeing plan

While growing wealth is often an important part of a financial plan, understanding how you can use your money to reach goals and improve your wellbeing is crucial. It could help you get the most out of your wealth and lead to a more fulfilling life. 

This guide offers practical steps that could help you improve your relationship with money by understanding how it’s related to happiness. It covers four essential steps to creating a financial wellbeing plan that’s tailored to you: 

  1. Understanding the sources of happiness that are true for everyone
  2. Understanding what makes you happy
  3. Creating a clear path to your objectives
  4. Travelling along that path in the most effective and efficient way possible. 

Download your copy of ‘Financial wellbeing: 4 steps to creating a financial wellbeing plan’ now to find out what you could do to boost your long-term wellbeing.

The FTSE 100 reached an all-time high despite recession fears

Despite concerns the UK will face a recession in 2023, the FTSE 100 hit a record high in February. Read on to find out what influenced the market and the valuable lesson investors can take from the news.

The FTSE 100 is an index comprised of the 100 largest companies listed on the London Stock Exchange. On 3 February 2023, the index hit a new high of 7,906.39 and exceeded a record set almost four years ago in May 2018. Just days later the FTSE 100 surpassed the magic 8,000 barrier, setting another new record.

After a difficult few years, due to the Covid-19 pandemic and war in Ukraine, it was good news for investors.

But the timing may seem a little strange. After all, pick up a newspaper and you’ll find stories about the cost of living crisis, high inflation, and the risk of the UK falling into a recession this year.

Soaring inflation drives up retirement costs by almost 20% in just a year

High inflation means retirees could need to increase their budget by almost 20% to maintain the same lifestyle, research suggests. If you’re drawing an income from your pension, it’s vital you understand whether withdrawing more is sustainable.

The UK experienced high inflation throughout much of 2022, and inflation remains above the Bank of England’s target of 2%. This has stretched many household budgets, but retirees may find it more difficult to weather a period of high inflation.

As your income may not increase, or you deplete assets more quickly, you could face more financial uncertainty later in life.

A retired couple needs an annual income of £34,000 for a “moderate” lifestyle

The Pensions and Lifetime Savings Association (PLSA) has updated its Retirement Living Standards to reflect recent high inflation. It found that some retirees will need to increase their budget by 19% just to maintain the same standard of living they enjoyed at the start of 2022.

Your guide to pension consolidation: The pros and cons you need to know

Do you have multiple pensions? It could make it difficult to manage your pension savings during your working life and when you retire. In some cases, consolidating them could be beneficial.

This guide explains what you need to know about transferring your pension savings, so you have fewer pots to manage. It could help you feel more in control of your retirement and, in some cases, reduce the amount you’re paying in fees.

However, there are reasons why consolidating your pension may not be right for you, including:

  • You have a defined benefit (DB) pension
  • Your pension has additional benefits
  • You may need to pay an exit fee
  • You could benefit from using “small pot” privileges. 

Download “Your guide to pension consolidation: The pros and cons you need to know” now to read more about pension consolidation and understand if it could be the right decision for you.

4 valuable ways a financial planner can help you tackle “overwhelming” pension information

Do you find pension information confusing? You’re not alone; 50% of people in the UK describe the information they receive about their pension as “overwhelming”, according to a Standard Life study.

Fortunately, there are places where you can seek guidance or advice. The survey found 83% of people think financial advisers offer useful support.

If you’re not sure if your pension is on the right track, a financial planner could help put your mind at ease. Here are four reasons why.

1. A financial planner can cut through jargon

Pension information can be filled with jargon that makes it difficult to understand exactly what it is saying.

From “annuities” to the “Tapered Annual Allowance”, a financial planner could help you cut through confusing terms and take the time to explain what they mean and, more importantly, whether they’re relevant to you.

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