Few would claim that the financial crisis is still at its peak, but this week’s news certainly confirms that we continue to struggle with its aftermath.
The housing watchdog Shelter has revealed that over 2 million people in the UK have recently used a credit card to pay their mortgage or to cover rent. This confirms other reports from the large insurers, such as Aviva, in the past year, indicating that savings levels in UK households are alarmingly low, and that most families would struggle to survive for more than a month in the event of a main breadwinner losing their income through illness or being made redundant.
With regard to retirement saving, we know from Halifax that the majority of UK working population is currently (as of end 2010) not saving into a personal pension or company pension, and that of those that are, many are unaware that, due to the recent market downturn, there may be a need to seek investments advice, review their pension, and step up their pensions contributions.
The underlying reality is that UK householders need to overcome their traditional tendency to look only at the short term in their financial planning. More then ever, consumers have a need to seek investment advice from a qualifed, independent investment adviser who understands their short-term need to build down debt, but can balance this with the longer-term need to plan for the future.
If anything good has emerged from the financial wasteland of the last 5 years, it is the realisation that a stable and benign economic climate cannot be taken for granted – and that an investment enquiry to put in place a balanced financial plan may be the most prudent strategy, moving forward.
