Building retirement funds is top financial resolution for HNW individuals
An international poll undertaken by deVere Group in the last two months of 2015 revealed that high net worth individuals’ top three financial resolutions for 2016 are to build funds for their retirement, to more regularly review their investment portfolios, and to save more to leave for their loved ones in their wills.
The results of the survey show that even the wealthiest people in society are now concerned with not having adequate savings to see them through their retirement.
Factors including large company pension deficits, low interest rates, changing pension tax relief thresholds, the reduction or cancellation of certain age-related benefits as well as escalating medical care costs and increasing life expectancy, have resulted in individuals at the upper end of the wealth scale worrying that their pension pots may not now be sufficient.
To my mind, if this section of society is concerned with regards to the size of their retirement savings, then this should act as a serious warning signal to middle and lower income earners to ensure they are saving enough and, crucially, are saving as effectively as possible.
Looking to the year ahead, 2016 is going to be trying for the global economy, determined by market volatility. Fundamental drivers being the drop in oil prices, the economic slowdown in China, the U.S. presidential elections, the situation in Greece, the hike of U.S. interest rates and increasing tensions in the Middle East.
Therefore, it is imperative that individuals seek sound, independent financial advice to efficiently manage and, where necessary, adjust their portfolios in order to make the most of the volatility throughout the year, as well as side step the potential pitfalls, but most importantly, to reach or even exceed their financial goals.
Despite the results of this recent poll focusing on high income earners, I believe that the results would be similar for those of all income brackets because wealth gives people opportunities – something all of us want for ourselves and our loved ones.
With wealth comes more freedom to live your desired lifestyle, buy the dream home, enjoy exotic holidays and so on… and it is the job of an IFA to devise, manage and implement a successful financial strategy to create, grow and safeguard wealth to help clients achieve this freedom.