Non-advised plan short-term finances
Majority of people without a financial adviser only planned their finances for the short-term, a deVere Group poll revealed.
The independent financial advisory group's poll of 648 people showed 71 per cent of potential clients, who did not work with an independent financial adviser, only planned their finances for the year ahead.
While the results were an improvement from the poll conducted two years ago, which showed 82 per cent of respondents planned their finances one year ahead, deVere Group chief executive and founder, Nigel Green, said it was still worrying that majority of people across all ages and income brackets across the world who did not seek advice were planning for the short-term.
"Many people believe the myth that planning for the longer-term is more difficult than planning for the short-term. This is not true," Green said.
"It is almost universally recognised that longer-term financial planning makes it easier to reach your financial objectives — which for most of us is financial security — because you have more time and considerably more opportunities."
Green stressed the importance of longer-term financial planning in the present climate, when governments were forced to cut age-related benefits due to increasing lifespans.
"In the future most people will not be able to rely on governmental support to the same extent they have done in the past, so we have to be more financially self-reliant in retirement," Green said.
The poll participants were aged between 25 and 70 and were middle-income earners to high net worth individuals from Australia, the UK, US, Spain, France, South Africa, and the United Arab Emirates.
AUTHOR
Malavika Santhebennur
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