What struck me were:
Similarities in attitudes and opinions that span across the generations – a worrying lack of confidence in financial matters and latent need for advice.
Differences in resilience levels – 70% of Peter Pans don’t have three months’ of outgoings in savings, while 70% of those approaching retirement do.
For many people their ability to earn is their most important financial asset, and accessible advice and an income protection product can play a vital role in safeguarding this.
I believe that there are other practical steps that can be taken to help people protect themselves and their loved ones against the financial and emotional effects of unexpected life shocks.
- I would like to see the development of more self-help tools for advisers and consumers. At LV= we have created a Risk Reality Calculator which shows your individual likelihood of suffering different income shocks and we are also very supportive of the ABI’s new Protection Calculator.
- I believe that the Single Financial Guidance Body can play an important role in promoting financial resilience and would like to see it focus more on ‘mass middle Britain’, everyday working families.
- I would also like to see incentives such as a regulated ‘advice voucher’ to make affordable independent financial advice more widely accessible.
There is an important role for Government, the wider industry, providers and financial advisers to improve consumers’ understanding of the importance and relevance of financial planning, and what steps they can take to improve their financial resilience.
Head of Marketing, LV=