Individuals aged between 40 and 60 – dubbed “midlifers” – are facing time and financial pressures as they try to support their families. Many are feeling the strain and don’t have the resources to focus on their own goals, and financial planning could help.

According to a survey from Legal & General, 6 million midlifers are finding themselves caught in the middle of providing financial support to adult children and providing unpaid care to ageing relatives. On top of this, it’s a crucial period for securing their own financial future and retirement.

The research found 17% of midlifers provide financial support to another adult, totalling £10 billion a year.

• Those supporting grown-up children provide, on average, £247 a month.
• Midlifers financially helping elderly parents or other relatives spend, on average, £282 a month.

The findings suggest that at age 45, you’re likely to have the greatest level of financial responsibility, while age 58 is when you’re most likely to start taking on some care responsibilities.

It’s natural to want to lend support to your loved ones, but it can harm your own lifestyle and long-term goals. While retirement can seem a long way off when you turn 40, it’s an important milestone to start thinking about. The steps you take now could affect the lifestyle you enjoy in your later years.

10% of midlifers feel the level of support they provide is unsustainable

The research worryingly found that 10% of midlifers feel that the support they provide is already unsustainable. If you’re supporting loved ones, a financial plan can help make it part of your budget and balance the support with other priorities.

If you’re neglecting your pension or other steps that could improve your long-term financial wellbeing, financial planning can help highlight potential challenges in the future and show you how to reduce risks. It means you’re in a better position to meet the demands you’re facing now and still secure your future.

It can also help you make decisions about the financial support you’re offering.

For instance, if you’re helping adult children with rental costs, would providing a lump sum to act as a house deposit make more sense? It could reduce their outgoings overall and provide long-term stability. It’s an option you may have dismissed or not even considered, but we can help you review your finances to see if it’s right for you.

If you’re struggling to provide care for a loved one, paying for some professional support can also make sense. This doesn’t have to mean a care home but could be someone that checks in with them every day. It can relieve some of the pressure you may be feeling while still ensuring your loved one is getting the additional support they need.

A financial plan can help you confidently support the people who are important to you.

19% of midlifers spend no time on their own financial wellbeing

As well as having a direct effect on expenses and how your money is used, supporting others can reduce the amount of time you have to organise your own life.

25% of people aged between 40 and 60 said they get less than an hour to themselves in the average day. Almost a fifth (19%) said they have no time to spend on their own financial wellbeing.

Financial planning doesn’t just provide you with a plan to reach your long-term goals. It can help you make the most of your time and reduce how much admin you need to do to stay on track.

As your financial planner, we can provide you with confidence in your financial future and set regular reviews, so you don’t have to worry about how your pension is performing or whether you have adequate financial protection day-to-day. This step means you can focus on what’s important now while knowing that your long-term financial wellbeing is secure.

Financial planning can help you get the most out of your money and time. Please contact us to arrange a meeting.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The 2022/23 tax year has only just started, but you should already start thinking about how you’ll use your allowances over the next 12 months. It can help maximise your assets.

In the 2022/23 tax year you can deposit up to £20,000 into ISAs. If you don’t use this allowance before the end of the tax year, you lose it. You can save or invest tax-efficiently through an ISA, so making full use of your allowance can help your money go further.

The period from February to the beginning of April is sometimes dubbed “ISA season” as savers and investors scramble to find the best rates to make use of their allowance before the end of a tax year.

If you left using your 2021/22 ISA allowance until the deadline was near, don’t let your ISA slip your mind now. It’s worth thinking about maximising it earlier in the 2022/23 tax year. Here’s why.

Drip-feeding your deposits can make your ISA goal part of your budget

If you want to maximise your ISA allowance or have a goal for how much you want to put in, making regular deposits a part of your budget can help.

Depositing £1,666 into your ISA each month can be more manageable than adding a lump sum at the end of the tax year. If you don’t have a lump sum to add to your ISA, breaking down your end goal can make sense.

It can help ensure that the money doesn’t get used to cover other expenses and keep you on track.

If you’re thinking about breaking down your ISA deposits over the year, setting up a standing order can simplify it.

In addition to making deposits more manageable, drip-feeding your money can be useful if you’ll be investing through an ISA.

Investment markets will rise and fall throughout the year. So, by spreading out deposits, you’ll be buying at different points throughout the market cycle. It’s an approach that can remove the temptation to try and time the markets.

Depositing a lump sum now means you have longer to earn interest or returns

If you already have a lump sum available to deposit, doing so now means you could have an extra 12 months of interest or returns than you would if you waited until April 2023.

If you’ll be saving through a Cash ISA, the extra interest added to your account over the year can really add up. Using your ISA allowance now can help you make the most of your money.

Adding a lump sum if you’ll be using a Stocks and Shares ISA to invest means you can potentially benefit from an additional 12 months of investment returns.

The graph below shows how investing £5,000 each tax year delivers different returns if you invested on the first working day of the tax year compared to the last working day.

Source: Hargreaves Lansdown

While both options have done well and returned over 99% growth, you would be better off by investing at the start of the tax year overall.

However, you should keep in mind that investment performance cannot be guaranteed.

Some years, investing at the start of the tax year could mean you end up with less if investments perform poorly. You should consider your investment time frame and risk profile when making investment decisions and reviewing performance.

Should you save or invest through your ISA?

If you want to use your ISA allowance for the 2022/23 tax year now, you should think about whether a Cash ISA or a Stocks and Shares ISA is right for you.

A Cash ISA is a useful way to save. Your savings will benefit from interest, however, as the interest rate is likely to be lower than inflation, your savings may be losing value in real terms.

Over the long term, the effects of inflation add up. As a result, a Cash ISA may be right for you if you’re building an emergency fund or are saving for short-term goals.

If you’re putting money away with long-term goals in mind, a Stocks and Shares ISA may be appropriate.

Investing provides a chance for your wealth to grow at a pace that matches or exceeds inflation. But this cannot be guaranteed, and market volatility can mean investment values fall.

Investing for a longer period can smooth out the ups and downs. As a result, you should invest with a minimum time frame of five years.

As well as time frame, you should also assess which investments are right for you. All investments carry some risk and the decisions you make should reflect your wider financial circumstances.

Are you ready to think about how to maximise your ISA allowance for the 2022/23 tax year?

Please contact us to discuss your options and the steps you can take to help your money go further, including using your ISA and other allowances this tax year.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.