Financial jargon can leave many feeling puzzled and confused. Even when you've heard of a financial phrase, you may not fully understand what it means.
If you've ever been left feeling baffled when trying to sort out your finances or plan for your future, you're not alone. In fact, according to a new survey from Aviva, 70% of UK adults are left puzzled by financial jargon.
While the majority (97%) of people over age 55 have heard of pensions, according to the research, fewer have come across the term "annuity", and fewer still have heard of “pension consolidation”, “income drawdown”, or “SIPP” (self-invested personal pension).
The confusion goes beyond buzzword bingo
A different set of research, this time from Standard Life, has revealed that 41% of pension savers are left bamboozled by information from their pension provider and have no idea how to act on the information shared.
When seeking guidance on pensions and retirement planning, people tend to turn to their pension provider’s website – 41% say they look at this type of information at least once a year. Meanwhile, 39% say they talk to their family and friends and the same number refer to guidance websites.
Turbulent times have hit consumer confidence
Over the past 12 months, households have been hit by high inflation, rising interest rates, and unsettled markets. Naturally, these combined events have taken their toll on consumer confidence and the number of people feeling sure about making financial decisions has fallen.
Read more: 5 practical ways to protect your pension savings in challenging times
A financial planner can provide support and peace of mind
In uncertain times, having a trusted financial planner you can turn to for guidance can provide invaluable peace of mind.
As well as offering an invaluable sense of support, there’s strong evidence that taking control of your finances with help and guidance from a third party can prove financially rewarding, too.
Of those people on low incomes (less than £20,000), 93% of those who planned for their retirement say they are enjoying it, compared to only66% of those who failed to plan.
Help with financial solutions for every stage of your life
We understand that dealing with retirement and other financial matters can be puzzling. If you struggle to understand and are left feeling like you want to put things off for another time, try to resist the temptation to delay and tackle the confusion head on.
Putting things off will only work for so long, and worse, you'll have the worry that one day you'll no longer be able to avoid the inevitable.
Facing your finances and sorting things out once and for all will be a huge weight off your mind and knowing that things are resolved and clear will help you to focus your time and energy on far more enjoyable pursuits life has to offer.
At Alexander Peter, we are here to help you engage with your finances and work with you to understand your goals and ambitions to design a financial plan that works for you.
Topics that many people want information on to help their financial decision making, and areas where we can provide specific guidance include:
- How much money your pension will give you in retirement
- How much money is in your pension pot
- How to make sure you’re paying enough into your pension.
Whether you want to make sense of your pension pots, understand how much money you need to enjoy your retirement, or steps you can take to protect your family wealth, we're here to help.
Get in touch
Our advisers provide specialist advice to British expats and international employees living around the world. We put your long-term goals at the centre of the financial plan we create for you, helping you to make your dreams a reality.
If you’d like to take control of your financial future, we can help. Email enquiries@alexanderpeter.comor call us on +44 1689 493455.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
