Only 7% of people in the UK who support someone financially have spoken with a professional adviser about long-term financial protection, according to new research by HSBC. In the UK, 27% of the population who are supporting someone financially, have never had a conversation with anyone about long-term financial security should something happen to them, not even friends and family.
Despite a reluctance to seek professional advice regarding financial protection for themselves and their family, 74% of UK respondents rated their family’s health and wellbeing as the most important thing to them for the future.
HSBC’s chief executive officer for UK Insurance Mark Hussein said: “Life carries many risks which can put people’s financial security under pressure, especially for those supporting someone. While it’s understandable that many people don’t want to talk about how their families would manage without financial protection, it’s an important conversation to have. “We feel that advisers play a vital role in helping customers look at what they have achieved so far in their lives and then advise them on how they can protect it.”
The question is, have you had that conversation with an adviser?
Only 7 per cent of people in the UK who support someone financially have spoken with an adviser about long-term financial protection, according to research. The findings were a part of a global study by HSBC which quizzed more than 13,000 people across 13 countries to look at levels of financial security.
The analysis found 27 per cent of UK respondents supporting someone financially have never had a conversation about long-term financial security should something happen to them – not even with friends and family. This compared to 22 per cent globally.
But unexpected life events can have knock-on financial consequences for the whole family and 81 per cent of people in the UK said their family would not manage well if they had to significantly reduce their support to them.
Based on the research findings, HSBC has now identified four actions which can help people better prepare their family. This includes 1) identify your priorities, 2) assess your finances, 3) plan for the whole family and 4) discuss what the family’s needs are for the future.
The figures from this research are frightening. Many people seem to be lacking even a basic level of financial protection whilst at the same time are seemingly happy to spend hundreds of pounds a year on what some might be deem to be luxuries, such as, mobile phones and satellite TV. People try not to think about the possibility of serious ill-health or early death, or tend to think that these things only happen to ‘other people’, but that’s simply not true.