Halloween has flown by just last week, so it’s time to put the horror stories behind us and share a big laugh since none of it is real. If only we could say the same about financial fears. Far too many people are frightened of their finances, spooked by their spending, or petrified of their pensions, so they simply try not to think about it.
Being haunted by financial worries is no fun at all, but it is something you will have to tackle sooner or later. That’s your hard-earned money that we are talking about! With a little effort and knowledge, you can stop feeling overwhelmed and take control instead. With that in mind, we’ve put together this list of things that most frighten people about personal finances, and how to tackle them.
Difficult sunset years
If this is a big worry of yours and you haven’t yet started saving for retirement, then you are right to be concerned. Let’s say you retire at around 70 years old; that’s still another 15 to 20 of your elderly years left, especially with life expectancy on the rise. Relying solely on state pension for those golden years certainly won’t see you living life to the fullest. You will be on survival mode at best, able to cover bills and food, but with very little leftover for fun.
This is why, in these financially precarious times, absolutely everyone from career starters in their twenties to those approaching retirement should have their own pension provision to top up any state retirement benefits they will receive. If you haven’t started a pension fund yet, now is the time to do it.
That might mean taking a closer look at your spending habits in order to free up money for saving. Obviously you will need to look carefully into the best options for you to ensure that your savings are working as hard as they possibly can to provide a return that builds your wealth. That will almost certainly involve speaking to a financial adviser who will be able to advise on what suits your needs the most.
Unexpected medical costs
When you have the responsibilities of a partner and/or dependents who are relying on your income, this is an understandable worry that rears its ugly head every now and then. A couple of days off ill can already send your mind spiralling into ‘what if’ scenarios, imagining how your family would cope if your illness is prolonged.
Fortunately, this is something that you can protect against with critical illness insurance cover. In the event that you are diagnosed with an illness which is covered by the policy (and most cover a long list of conditions from cancer, strokes, and heart attacks, to debilitating illnesses such as multiple sclerosis and accidental injuries), you can make a claim and receive a one-off lump sum to help cover costs during your recovery. That provides security in the assurance that you can continue to pay for any ongoing household costs, as well as costs related to your illness or injury.
Fate knocking early on your door
It’s undoubtedly morbid, but leaving your dependents high and dry financially if you were to die is a legitimate fear that flits across most people’s minds every once in a while. Life insurance can help assuage these fears, because with the policy in place, if you come to a premature end your family will receive a lump sum to mitigate the financial impact of your passing away. This will help them maintain financial stability and ensure that they can continue to cover their regular outgoings. If you don’t have life insurance, talk to a financial adviser and get a plan in place as soon as possible.
Another issue to tackle for peace of mind is estate planning. A will is the only way to ensure that your assets go to the people you’ve intended them for. We very much doubt that the Grim Reaper will be willing to hang around until you get your affairs in order, so plan ahead. Be sure to take professional advice on your will and inheritance tax planning, and ask about the legal tools available to you so the burden of inheritance tax on your loved ones can be reduced.
If any of these fears resonate with you, it is time for you to face them head-on by putting together a financial plan which protects you and your family against the difficulties that life throws in your path.
At Infinity Financial Solutions, it is their fundamental belief that financial planning makes life less scary. The team of financial consultants have extensive experience in every facet of financial planning and wealth management, including life and general insurance, property funds management and other services. No matter what kind of eventually you’re planning for (and believe us when we say it’s better to be cautious and cover all your bases), their knowledge is at your disposal to create a financial plan dedicated to you and your family’s needs.
You work hard to earn your keep, so it only makes sense to make sure your finances grow at a healthy rate, that a sudden expense wouldn’t cause a huge dent in your funds, that you have enough saved up to comfortably enjoy retirement, and that your loved ones won’t be left in the lurch in the event of your passing. Why not get in touch with the experts at Infinity Financial Solutions, and get some peace of mind?
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