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Covid-19 spurs more people to seek financial advice, but it’s not just for times of crisis

May 13, 2021

The pandemic has placed pressure on families across the UK. So, it’s not surprising that more people are seeking financial advice and thinking about their long-term security. While financial advice can be incredibly useful in a crisis, an ongoing relationship with a financial planner can be just as valuable.

After a year of lockdowns and social distancing, 53% of UK adults say the financial crisis caused by Covid-19 has prompted them to seek professional financial advice, according to a survey from Prudential.

More than eight in ten (85%) respondents said they had financial concerns when they thought about the next 12 months. Among the concerns were:

  1. Having to use savings to make ends meet (23%)
  2. Investments losing money (20%)
  3. Reduced income (18%)
  4. Being made redundant (17%)
  5. Health and social care costs (14%)
  6. Not saving any money (13%)
  7. Getting into debt (11%)
  8. Having to financially support children (11%)
  9. Not being able to afford to retire as planned (10%)
  10. Having to ask family for financial support (9%).

While financial advice can help with the immediate concerns you have due to the pandemic, engaging with financial planning with a long-term view can mean you’re better prepared for future shocks, so your plans stay on track. Financial shocks may include losing your job, becoming too ill to work, or investment values falling. While they’re unexpected, that doesn’t mean you can’t prepare for them.

So, how does financial planning during calm periods help you prepare for the next crisis?

It starts with setting out your goals…

Financial planning doesn’t start with looking at your assets, but what your goals are, what’s important to you, and understanding your priorities. This may include thinking about what brings you happiness now, or what you’d like your life to look like in 20 years. What you want to achieve will have a huge impact on the financial decisions that are right for you. So, it’s important they’re at the heart of a financial plan.

It’s a process that means your financial plan is tailored to what you want to achieve in the short, medium, and long term. You can have confidence in your ability to reach life goals, whether that’s to provide financial support to loved ones, travel more or retire early.

…then putting a plan in place

With your life goals set out, it’s time to create a plan that will help you achieve them. If you want to retire early, for example, your financial plan may include:

  • Increasing pension contributions to make the most of tax relief and employer contributions
  • Overpaying your mortgage to reduce outgoings in retirement
  • Reviewing your investments with the view of creating an income
  • Building up an emergency fund of liquid assets to provide security.

A clear financial plan and a picture of what your future lifestyle will look like can help you stay on track and focus on what’s really important.

Finally, you consider the risks

With any plan, there are risks involved. By taking the time to consider what they are and the impact they’d have in a period of calm, your finances will be more resilient during times of crisis.

We doubt many people considered the risk of a pandemic when setting out a financial plan in 2019. However, the knock-on effects of Covid-19 are likely to be part of the risks considered, from a long-term illness affecting income to investment volatility. To mitigate these risks, you may be advised to take out an income protection policy to provide a regular income if you’re unable to work, for example. Or to have an emergency fund you can use amid market volatility if you take an income from your investments.

By taking steps to prepare for potential risks, you can have greater confidence in your financial plan. No one knows what’s around the corner, but you can still be proactive.

Please contact us if you have any questions about your financial plan or would like help putting one in place. We’re here to help you reach your goals while guarding against risks.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

What our clients say

The people we help are at the heart of what we do. Here are some of their testimonials.

I would highly recommend Darius and John. I’ve used a financial adviser previously and could never get in contact with them when I needed their help. Stratton Wealth Management have been excellent from the start. They are always available to talk, and they also don’t talk in financial jargon!

Dave Rigby -

A client since 2015

Having recently transferred my financial management to Stratton Wealth Management, I have been extremely impressed with the highly professional service I have received. I feel I have been fully involved in all decision making, and the company's highly skilled advisers have shown commitment and patience in any dealings I have had with them. I have also always found them to be easily accessible for any discussion I may require.

Denise Thornton -

A client since 2019

As a business owner and father of four children, finances are usually the last thing we think about. Stratton oversees and manages our finances, both in terms of advice for my business and our personal investments. It is comforting to know that our retirement, investment and life insurance planning has been taken care of. Darius and John are always so efficient in dealing with our affairs. As someone with no real understanding of the ins and outs, it has been fantastic to have experts giving us great advice and making sure our best interests are always the top priority.

Lee and Claire Parkinson -

Clients since 2016

Darius deals with my family’s finances and is a very trusted adviser. We meet a number of times a year, but I know I can call him any time if I have any questions. He is proactive, helpful and friendly!

Jonathan Dennis -

A client since 2019

I knew I needed to begin saving and planning for the future but didn’t know where to start. Stratton helped me to understand my finances and put together a savings plan that is affordable and works for me. I now have and an ISA and a pension, and whilst retirement is many years away, I have the peace of mind that I am saving for my future. I look forward to working with them for many years to come.

Martin Corrigan -

A client since 2016

I have been impressed with the advice and service provided by Stratton Wealth Management and have always found Darius to be approachable, dependable and highly professional in his approach. It is reassuring to be able to have such a high level of confidence and trust when it comes to financial advice.

Russell Jones -

A client since 2018

Many thanks indeed for your in depth report for my client Mrs H – it is most thorough and above all readable. This might sound particularly strange; however you may well gather that in my profession we see many such reports, and I often feel that if the adviser fills it with charts and graphs it evidences a level of research. In truth most of what is produced is readily obtainable from the internet.

I would like to thank you (and your organisation) for your prompt and professional attention to my requirements on behalf of my client. As a practice we shall definitely be putting Stratton Wealth Management on our “preferred supplier list".

Colin Dunstall, Donaldson Dunstall Solicitors -

A client since 2015