Personal Challenges, Leaders Debates and furrowing the NEST

I'm looking out the window of my office, and feeling positive. The sun is shining, spring has arrived, and I'm as busy as ever.

Last week was a challenging one, mainly because I had two professional exams. "A little bit stressed" would be an understatement of how I've been feeling over the past couple of weeks, as all my focus has been on ensuring these exams are passed first time...now I can relax, enjoy the weather, and wait tentatively for the results. My wife's glad they are over, as I tend to be a bit tetchy when exam season arrives!!

The second leaders debates were interesting to watch, especially for a currently undecided voter, but the area that interested me the most was when the subject came round to pensions.

Gordon Brown wins the award for best caveman impression, "Woman, and you are one of them"...however, that aside, he made a brief mention of NEST (the new name for Personal Accounts)....if you're not sure what this is, take a look at this :-

Personal Accounts Delivery Authority

Now, I appreciate NEST is a political hot potato. Which Party wants to tell every employer and employee in the Uk that they will be effectively obliged to contribute to a retirement plan ( or opt out on a regular basis ) within the next few years. However, the introduction of this scheme can only be positive.

Most people know they should save more for their retirement. They also understand that national insurance contributions currently go towards paying for pensioners today, as opposed to building a pot for their future. David Cameron during last weeks debate mentioned that he intends to increase the State Retirement Age to 66, however there is a good bet that it will continue to increase as time goes on regardless of which political party ( or any combination of the main three parties ) is in charge.

However for many people, taking responsibility for their retirement is too easy to ignore. Not only will the introduction of NEST bring the importance of saving for retirement back into focus, it will potentially motivate millions of people to make some form of provision for their future (either through NEST or independently). This has to be a positive step forward.

I'm a great believer in the Carrot as opposed to the Stick when motivating individuals to take action ( and NEST does feel like a particularly dirty stick ). However, I do believe that it could help individuals invest for their retirement, or as Gordon Brown might put it "Woman or Man, and all of you are one of them, must save for old age"

Chris Daems,
Principal Financial Solutions

David Beckham and your Financial Future.

It's a week before I've got to vote, and I'm still undecided on who to go for. However, my 6 year old daughter, Charlotte, has (sort of) made her mind up. In a conversation with her mum this morning, she announced, "I'm going for Gordon Brown". When asked why, she answered "Cause I like the look of him!!". She then changed her mind, and decided she liked the "the blue one who's always on TV.....you know, David Beckham!!"

Whether Beckham limping around with his wonky leg would do better than any of the current candidates is questionable, however, I hope Mr Brown doesn't meet Charlotte, finds out about her change of political affiliation and decides to call her something offensive off camera!!

One thing is certain regardless of the future government. Individuals need to take responsibility for their financial futures. Most people agree that the state pension age will increase, and the true value of this provision will decrease over time.

So, if many people understand the importance of making a provision, why are they not saving for their financial security in the future? There are many reasons for not saving for retirement, however one of the biggest is lack of knowledge. The way you solve this problem is relatively simple. Firstly, build the knowledge you need to understand the best method for you to build a retirement income. Secondly, seek professional advice from someone you trust and want to build a long term relationship with, ensure that they are appropriately qualified and have the integrity to look after your best interest and Thirdly, ensure you continue to review your requirements as your life changes over the years.

By taking simple steps, you are starting to take control of your financial future regardless of whether the next prime minister turns out to be either Gordon Brown or David Beckham!

Chris Daems,
Principal Financial Solutions.

Full house and the future

It's half term, and my house if full of people. There's the usual suspects....Cassie (my wife), Charlotte(my daughter) and I. In addition to that, my mum's visiting to help with the childcare whilst we're both at work (and possibly letting us have a rare night out) as well as my younger brother. Today my 3 year old nephew arrived and like any toddler in a new environment wanted to explore and demolish everything!

I'm looking forward to a busy couple of days ahead, where I'm out and about seeing my clients, networking breakfasts and studying intently for my next tranche of professional exams next week.

After a visit to the Gadget Show Live last week, I seemed to spend most of the drive back reminiscing over the old technology on display...ahh, the satisfying screech of a tape deck and the half hour wait for a game to load. I wonder what the future holds for technology....

I'm also wondering what the future holds for my profession, however I know for sure a number of things. A move to greater professionalism is a good thing, both for clients and the large majority of good quality financial advisers out there. Also, Darwin was right when he said "It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change."

I'm off now to enjoy a few seconds peace, a few hours sleep and then up again for another day....