How to ensure financial security throughout your career

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 The key to attaining the goal of lifelong financial security is to take good coordinated advice and plan from the start of your career with the support of experts.

During your pupillage or the early years of tenancy, your attention will no doubt be focused on adequately protecting yourself from the risks of the loss of earnings as well as, in all likelihood, looking to purchase your first home.

At a certain stage, however, it will be possible and necessary to start to accumulate savings. The ultimate goal is usually the funding of your retirement but there are likely to be other demands along the way such as family education costs or lifestyle changes which might not be fully covered out of a barrister’s typically irregular income profile.

In terms of saving, aside from the value of starting early, it is also equally important to utilise all the available tax allowances (including spousal allocations where relevant). These vary over time and will make a material difference to the ultimate compound rate of growth. The current political environment with the prospect of a change to a government that could focus on increasing taxes is a reminder of the importance of taking advantage of all legitimate options on this front.

Legislation has likewise changed considerably over the years, resulting in greatly reduced opportunities for high earners to contribute to pensions. This increases the need for prudent planning and highlights the merits of a diversified approach alongside pensions incorporating ISAs, traditional investment portfolios and investment property.

It is never too early to plan for your retirement and whilst it is difficult to anticipate your income needs several decades in the future, it is possible to use modelling programmes to assess whether your savings are adequate based on assumed tax rates and projected expenditure, and thereby confidently select a date when you will leave the workplace.

Your circumstances will inevitably change in the course of your career in line with your earnings and family circumstances with its resultant implications for expenditure. Your personal objectives will also evolve over this time requiring a flexible approach and a plan which is professionally reviewed on a regular basis. Such a plan will take account of all your business interests and any inheritance which might arise or be anticipated.

We have decades of experience of helping barristers manage their financial affairs giving you the time and freedom to pursue your career comfortable in the knowledge that you will achieve financial security. The team includes an award-winning investment capability complemented with pensions and (ex HMRC and Big Four) tax experts.

The origins of our business as a joint venture with a leading regional law firm imbued us with a professional services ethos which endures to this day along with a close familiarity with the legal community. We work closely with our colleagues in Handelsbanken, which enjoys a very strong reputation for customer satisfaction having been rated number one in October 2018 for the tenth year running in an independent survey of British banks’ personal and business customers1. The bank was listed as one of the world’s safest banks by Global Finance magazine in 20182 owing to its conservatism and financial strength (also recognised in its AA rating from Fitch3).

Our offices at Kingsway are in the heart of London’s legal community and the Bank has branches in over 200 locations throughout Great Britain, enabling us to provide you with a genuinely local service.

Please contact Hugh Tottenham on 020 7045 1331 or hugh.tottenham@handelsbankenwealth.co.uk if you would like to hear more about how we can meet your needs.

Notes to Editors:

Handelsbanken Wealth Management is a trading name of Heartwood Wealth Management Limited which is authorised and regulated by the Financial Conduct Authority (FCA) in the conduct of investment business, and is a wholly-owned subsidiary of Handelsbanken plc. Tax advice which contains no investment element is not regulated by the FCA.

Handelsbanken Wealth Management offers a wide range of wealth management services to private clients, charities and corporate bodies throughout the UK. These services include retirement, pensions, inheritance and tax planning, as well as investment management which is provided by boutique specialist Heartwood Investment Management who are part of the Handelsbanken group. As a wholly-owned subsidiary of Handelsbanken plc, we also provide wealth management services to the UK customers of Handelsbanken through their network of over 200 branches across the UK.

Nothing in this article constitutes advice to undertake a transaction and professional advice should be taken before investing. Past performance should not be seen as a reliable indicator of future results. The value of investments and any income from them can fall and you may get back less than you invested. Tax rates and legislation are subject to change.

1  www.handelsbanken.co.uk/awards

2  https://www.gfmag.com/magazine/november-2018/worlds-safest-banks-2018

3  https://www.handelsbanken.com/en/investor-relations/debt-investors/rating