05/01/2025

The compelling benefits of building a tailored financial plan

While you might have similar goals or circumstances to other people, a financial plan isn’t a one-size-fits-all solution. Instead, a tailored financial plan that considers your needs and goals could help you get far more out of it.

For instance, one goal might be to ensure you’re financially secure in retirement. It’s likely to be something many other people are working towards too, but that doesn’t mean your retirement goals are the same. There could be many differences, which may affect how much you need to save. For example:

• What age would you like to retire?
• Are you entitled to the full State Pension?
• Will you be retirement planning with a partner?
• What kind of retirement lifestyle are you looking forward to?
• Do you have a defined benefit pension that will provide a reliable income?
• Will you be financially supporting dependents or other loved ones during your retirement?

So, even if you’re working in a similar position and are hoping to retire at the same time as a colleague, the amount of income you need in retirement could be vastly different.

A tailored financial plan could help you understand your finances so you’re in a better position to make decisions that are right for you. Here are three compelling reasons why a tailored financial plan could benefit you.

A bespoke financial plan will understand your circumstances

Different circumstances and priorities could mean your financial situation is very different from another person’s, even when you have broadly the same income.

As a result, basing your financial decisions on what other people are doing, rather than tailoring them to you could mean you make choices that aren’t right for your circumstances.

For instance, a friend may tell you that it’s too risky to invest and that saving is a better option. This might be the case for them. Perhaps they don’t have an emergency fund and are choosing to build that up first, or are saving for a short-term goal so investing would be inappropriate. However, it doesn’t mean that investing couldn’t be right for you.

Reviewing your options with your financial position in mind could help you balance potential risks and make decisions that are right for you.

Your goals will form the heart of your financial plan

While understanding your financial situation is an important part of creating an effective long-term plan, just as crucial are your goals – what do you want to use your wealth for?

Once again, everyone is on their own path, so if you made financial decisions based on the aspirations of another, it could mean you miss out on opportunities to turn your goals into a reality.

For example, someone who wants to retire early might increase their pension contributions so they’re able to achieve a sustainable income once they stop work. Putting extra money aside for retirement might seem sensible, but that may not align with your aspirations. If your focus is to give your children a helping hand when they reach adulthood, you might contribute to a Junior ISA instead, or if you dream of setting up your own business, you may want to use some of your wealth to invest in it.

An effective financial plan is about understanding how your income and assets could be used to help you live the life you want, so tailoring it to your goals is essential.

A tailored financial plan could ease your fears

It’s not just your goals that a financial plan could help you manage, but your fears too.

Finances can seem complex, especially when you’re working towards goals that might be decades away. You may need to consider areas like investment risk, the effects of inflation, or how you’d cope if your income unexpectedly stopped. So, it’s not surprising that you might feel nervous when you look at your finances and consider the future.

A financial plan could help you address the fears that are worrying you. For instance, if you’re concerned you could lose your job, a financial plan might demonstrate how you could use your other assets to create an income stream if you need to.

Alternatively, if you have a family, you might be worried about how they’d cope financially if you passed away, so you may decide that life insurance could offer you peace of mind.

In this way, a financial plan could help you manage your fears so you’re better able to focus on enjoying your life today.

Contact us to talk about your tailored financial plan

If you’d like to create a financial plan that’s tailored to your aspirations, worries, and financial circumstances, please contact us. As financial planners, we’ll work with you to build a plan that could help you reach your goals in the short- and long-term. Please contact us to arrange a meeting.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) 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.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.