Financial planning has long been seen as the preserve of those nearing retirement. Recent data corroborates this: 73% of advised clients in the UK are over 50, just 14% are in their 40s and less than 5% are in their 30s[1]. Younger professionals are vastly under-represented even though it could be argued this is precisely when smart financial decisions compound most effectively. Often, it is also when life changes fast. In 5 years’ time, a 30 year old may be married, a homeowner, a parent, advancing in their career – but they may also face unexpected setbacks, such as health issues or changes in family circumstances. That younger cohort shouldn’t wait; they should protect what they have earned, invest with intention and build long term security while time is on their side.
Protection
As a financial adviser, the most common thing I hear from younger people is, “I don’t have enough to need financial planning”. Re-framing the question – “do you have enough that you want to protect?” – often starts a different conversation.
If your income stopped tomorrow, how long could you manage? 1 in 3 of us will suffer a serious health condition during our lifetime, yet only 13% of UK adults have any critical illness cover and just 6% have income protection[2]. Statutory sick pay (currently £118.75 a week) rarely covers the essentials and the 4.4 million self-employed in the UK receive none at all, meaning that 94% of adults risk being unable to support themselves financially if they become unwell.
