Student and Graduate Publishing

Your Financial Future - Why You Need To Start Planning Now

Friday, 14 February 2014 13:45

Although 'mindfulness' is currently a hot topic and one of the most modern of all mantras is to 'live in the moment', planning for your future is still something that needs serious consideration.

With most of us likely to live longer than previous generations, making sure that your finances are set up to cover changes in your circumstances in later years cannot be avoided.

However, recent research carried out for Legal & General has found that more than one in ten people spend only an hour in planning retirement income details. This may be because the commitments or daily life often cause such thoughts to be put on the backburner, but planning for your financial future is important – and here’s why you need to start now.


Future financial planning sounds like something a CEO of a major company might do, but in fact all of us already take part in such activities in various ways.

Anyone that has an insurance policy of any kind is essentially making arrangements for future events that may or may not happen, so pension planning and looking after other aspects of your financial future aren't really much different.

Often people claim it is difficult to find out the information they need but if you have a young family or any other dependants, making sure all eventualities are covered is a very real responsibility.


Although the UK has one of the best welfare systems in the world with a 'safety net' that covers people of all ages, the recent cutbacks in government spending combined with continued squeezes on living standards should be a wake-up call for many.

Benefits for the elderly are the biggest cost to the welfare budget in the UK and it is almost certain that changes will continue to be made to the system in the coming years. Therefore it is becoming even more important to take your own steps to make sure that your financial future is secure.

In 2016, the age that you need to reach to qualify for a state pension payout will increase and as life expectancy continues to improve the official pension age is sure to be extended even further.

Personal Pensions

Although some of you might think that putting money into a pension pot is something that you can't afford to do whilst times are still hard, the question you should really ask is can you afford not to do it?

The reality is that it is never too early to plan ahead and the earlier you start planning for your financial future the wider your options and potential returns will be.

Different types of planning can take the form of an annuity, which is essentially any continuing payment with a fixed total annual amount. 'Fixed' and 'variable' versions of an annuity can offer various advantages when it comes to deferring taxable gains.

Plan For Tomorrow, Today

Whatever your current financial circumstances might be, considering how you can provide for yourself and your loved ones in the future should be a top priority. Planning for tomorrow should ideally start today.

Author Bio: Paul Henderson is a frequent contributor to Vita Student Property. With more than three decades of experience as a Fund Manager in the City of London, he is an expert on investing for the long term.