What is the best financial way forward for life after lockdown?

As the Government starts to roll out its road map for life after lockdown, are you confused by the best way forward, financially? Here Sheena Doherty, a Halifax-based senior management wealth consultant with Sovereign Wealth, puts various issues under the spotlight:

The pandemic has thrown up a host of financial challenges for individuals, families, and many small and medium-sized business owners – leaving many people in turmoil.

It can be tempting to try to predict the future – or simply react to events as they happen – but it’s important to put the right plans in place, creating greater opportunities to build wealth over time.

Wealth protection – If you’re in employment and still being paid, look at how long it is likely to continue and your anticipated retirement date. Budget accordingly and review pension plans regularly. If you are predicting a shortfall, look at other potential sources of income including existing investments, insurance policies and borrowing.

If you run a small or medium-sized business, make sure you are taking professional advice and have applied for all relevant Government schemes, grants or loans during the current pandemic. This will ensure you’re in the best possible place when the economy starts to recover.

Planning ahead and creating a buffer – It’s always a good idea to run a personal ‘risk audit’. Consider the financial implications for you and your family if you suddenly experience serious health issues and or/die.

Surveys carried out (most notably by Swiss Re) to measure the existence and size of ‘protection gaps’ in the UK have established that the shortfall is real and material. Too many are relying on company schemes – and often there is no provision for income to increase in real terms, over time.

As yourself ‘hard questions’ – Do you have cover? How much? Is it enough?

Ensure you have robust conversations with your adviser founded on carefully and knowledgeably constructed audits. Remember it’s not an opportunity – it’s a responsbility.

If you run an SME consider the impact on your business’s resilience and the impact on its mid and long-term future. How would you cope if you lost a key team member through illness or death.

SMEs and legalities – an extremely high number of businesses do not have any protection – or at best have inadequate legalities to protect shareholders. Many business owners wrongly believe that Companies House documentation provides this. I would stress the importance of ensuring you have legal documentation and a protection policy in place to protect you and your business partner/s.

We know talking about death is still a taboo for many families and financial issues are often ignored or not adequately discussed. I work with an experienced Wills expert, who can provide advice.

Will writing and Powers of Attorney involve the referral to a service that is separate and distinct to those offered by St James’s Place. This service is not regulated by the Financial Conduct Authority.

Remember – If you have any questions about protecting your income and wealth in times of crisis, I am here to assist.

During the current crisis our team is taking Government advice, working from home and we are available during normal office hours.

Interested? For an initial, no obligation chat please email Sheena at sheena.doherty@sjpp.co.uk or call 01422 893531: Mobile: 07858 799596.

Please see our website – https://www.sovereign-wealth.co.uk/SheenaDoherty.html

Sovereign Wealth Private Clients is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purposes of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products. Sovereign Wealth is a trading name of Sovereign Wealth LLP.