Lowes Magazine Issue 121

FINANCIAL WELLBEING

Value of advice in the pandemic

TWO RECENT RESEARCH DOCUMENTS, PUBLISHED by abrdn and Aviva, have highlighted the negative effect of the pandemic on people’s views on investment risk and their retirement prospects. The research data from abrdn found that a third of investors now wanted to take less risk with their investments, having had a change in their investment or financial priorities, as well as feeling they couldn’t absorb as much loss as they felt they could pre-pandemic. The research from Aviva looked at individuals’ retirement plans and found that many people had pushed back their intended retirement dates due to the uncertainty created by the period of lockdown; also people were feeling less secure that they could live comfortably in retirement. Aviva said its research had shown a trend towards people re-evaluating their priorities in the wake of the pandemic with nearly three in five people feeling the pandemic has made them question what’s important in life. Many felt they had less control over those priorities than they did before, in particular coping with unforeseen events, with anxiety about the future still weighing heavily on their minds. While juggling their personal priorities against a backdrop of uncertainty, people were looking also for steps that could help them take control of their circumstances as best they could. Encouragingly, the research also showed how invaluable financial advice has been during the recent turbulent financial period. The abrdn research, for example, found that those with financial advisers were the most confident about sustaining or taking on more risk, saying their level of confidence in their finances was because of the advice they were receiving. Having in place a carefully thought-through investment strategy that looks long term, not at the short-term state of the markets and the media hype, is fundamental to a structured financial plan and will help investors stay calm and focussed on their goals. Every financial plan that we put together for our clients is based on their individual financial circumstances, what they want to achieve and the level of risk they are willing to accept. Sometimes a higher level of risk is necessary to achieve certain goals, other times we can reduce the level of risk below what clients think they need and still meet their goals. What’s important to remember is that markets and circumstances do change and regularly reviewing a strategy will help keep a financial plan on track. Lowes Consultants have many years of experience and a great support team to help our clients build and maintain their wealth over the years and give the peace of mind that comes with finances being dealt with by professionals. Lowes Consultant Chris Milsom says: “Seismic events such as the pandemic will undoubtedly cause fear and uncertainty, particularly amongst savers and investors trying to make decisions about their financial future on their own.

Financial planning linked to improved mental health A new study by HSBC Life has found an intrinsic link between financial planning and improved mental health. The study, which surveyed over 3,000 UK adults, found that nearly three quarters of people who seek financial advice were more likely to feel they have average or above average mental health. These effects were found amongst people who review their financial plan at least once a year and amongst people with a comprehensive retirement plan and insurance protection. In contrast, nearly half of those without a plan said they felt they have below average mental health. Lowes Consultant Adam McLachlan says: wellbeing. Putting your financial affairs in order and keeping track of them, as well as importantly, having the reassurance of Independent Financial Advice, can take people from a state of confusion to having control of their finances and knowing that they are on target to achieve their goals and life ambitions. “The study confirms what we see on a daily basis, that financial fitness is intrinsically linked with health and

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