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“Flexible” careers will increase the need for financial planning

In days gone by, life was relatively simple. You left school or university, you found a job and barring moving away or your employer going bust you stayed with that employer until you retired. 

Today, and especially after the pandemic, that situation has changed significantly. Employees want flexibility, they want the ability to work from home, they want an employer that understands their work/life balance, and one that shares their ethical values. Job security, and the prospect of thirty or more years with one employer, seems to be low on the list of what employees want. 

It is a well-documented fact that millennials – those people who came of age around the turn of the century – will make up 75% of the global workforce by the middle of this decade. They want to work for employers that foster innovative thinking, develop their skills and make a contribution to society. 

But do they want a career? 

According to a study by Aviva, 47% of employees are now less career-focused following the pandemic, with two in five people claiming “they could never switch off” from work. 

24% of women said the pandemic had had a negative impact on their work/life balance as they tried to juggle work, a home, a family and a relationship – compared to just 16% of men. 

Inevitably the impact of technology means that it will become harder to separate work and home life, especially if you work at home and the “office” is only a roll out of bed away. A few years ago France introduced a “right to disconnect ” – a law stipulating that companies with more than 50 employees establish hours when staff should not send or answer emails in a bid to prevent burnout and set a clear barrier between work and home life. We can suspect it won’t be the last country to take such action. 

While a desire for flexibility, home working and career breaks is understandable it does, however, pose some financial planning questions. People will still need mortgages – which are clearly more difficult to obtain without a consistent employment history. People will still need to plan for their retirement which, again, becomes more difficult with career breaks and frequent changes of employer. 

Throw in savings and investments and it becomes clear that while the workforce of the future may want flexibility and everything that goes with it, what it will most emphatically need is consistent, long-term financial planning from experienced advisers. 

Sources
https://www.bbc.co.uk/news/business-57798908 
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-dttl-2014-millennial-survey-report.pdf
https://fortune.com/2017/01/01/french-right-to-disconnect-law/

NS&I pulls sales of savings certificates

National Savings & Investments (NS&I) has withdrawn its index-linked and fixed interest savings certificates from general sale, after strong sales of the products threatened its net financing target.

The certificates have been on sale for almost four months. They had been withdrawn from sale previously, in July 2010, after sales of the products exceeded expectation, but were reintroduced in May after NS&I was handed a more generous net financing target in the Budget.

NS&I said it had forecast strong sales of the products, and those expectations had been met. ‘During the almost four months that savings certificates have been on sale, there have been approaching 500,000 transactions into the latest issue of index-linked savings certificates,’ said chief executive Jane Platt.

‘Over this period, we’ve seen significant amounts of money invested into these products. To ensure that we do not exceed the upper end of our net financing target range, we’ve taken the decision to withdraw savings certificates from general sale at this point.’

Sales of the products stopped yesterday. However, they will still be available to existing investors.

NS&I said that on maturity, existing savings certificate investors could keep their investment for another term of the same length, or invest into alternative index-linked or fixed interest certificates.

By by Daniel Grote @ Citywire – on Sep 07, 2011

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