Five Things You Need to Be Saving for

We all plan on saving for retirement, but there are so many other things that the modern family must factor into their future financial goals. Have you thought about how best to save for life’s major expenditures?

1. University

Saving for your children to go to university has become one of life’s big costs. The maintenance loan currently available is often not enough to cover students’ costs of living. If your child goes to study in London, the loan is probably not enough to cover even their rent.

This usually means a deep withdrawal from the bank of mum and dad. In fact, in 2015, the average cost of raising a child between the ages of 18 and 21 was £53,838.

2. Child’s wedding

Thankfully, things have changed a lot since the days of dowries and coverture. One wedding tradition that is still lingering on, however, is that the bride’s parents should pay for the wedding. Although even this isn’t as popular as it once was, 18% of weddings are still totally paid for by the bride’s parents, with many more seeing the bride’s family contributing to some extent.

With the average UK wedding costing £20,000, a child’s wedding is a big cost you can’t afford to ignore!

3. Healthcare in old age

How much people in the UK are spending on healthcare is rising dramatically. In 1997, the UK spent £10.8bn on private healthcare, including hospital procedures, equipment and pharmaceuticals.

By 2013, this had increased to £25.1bn. As more of us live longer, factoring in high medical expenses in later life is an increasingly important part of planning for your financial future.

4. Parent’s health care

Children requiring financial support until their early 20s and parents living longer has created the ‘sandwich generation’ concept. This is the idea that many of us will be looking after two dependents, our elderly parents and our children, at the same time.

Without proper planning for your parent’s later-life healthcare, you may be forced to sell their home in order to cover their care costs. Proper financial planning can help to avoid this scenario.

5. Natural disaster

Unfortunately, Hertfordshire has a history of flooding. Climate change is already making flooding more likely in the UK, so preparing for the natural disasters and damage to property in the future just makes good financial sense.

There was significant flooding in Hertfordshire in 2015 and 2014, with the Three Rivers area at particular risk. Making plans, such as arranging appropriate insurance or factoring flood-risk into property investment is a smart move.

To start planning your financial future, call our chartered financial planners today on 01992 500 261 or email enquiries@gpfm.co.uk.

This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.