The pandemic’s financial planning boost
While the pandemic has wrought much damage financially to families, individuals and businesses, it’s worth looking closer at how the restrictions and emergency measures have affected our approach to financial planning and personal finances more generally.
Research for Indesser, a joint venture between the Cabinet Office and TDX Group, has shown that over half of consumers (53%) have improved their financial tracking and budgeting during Covid-19.
The same survey revealed that the pandemic has changed some people’s financial behaviour for the better, with 43% of respondents paying off more debt than before, and over a third (36%) saving more for retirement. Overall, 60% of people feel they are in control of their finances. Judging by the volume of new enquiries we’ve taken in the past 12 months, it’s fair to say that people of all age and social groups are thinking about their finances more proactively.
Almost three quarters (74%) of those surveyed said their surplus income has either increased or stayed the same since the pandemic began, with average spending down on commuting, restaurants and recreation during lockdown contributing to this.
In contrast, 47% of people worry about their finances every day, up 4% since June 2020, and almost a quarter (24%) feel incapable of managing their finances, a rise of 5% since last summer.
Susie Laws, Chartered financial adviser and Director of Fiducia Wealth Management says, “we have certainly noticed that financial planning and getting finances in hand has jumped to the top of many to-do lists over the past 12 months. It suggests that people are beginning to understand the importance of good advice and the value which this can add to their long term financial wellbeing”.
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