Junior doctors have a host of responsibilities to contend with when entering the medical profession for the first time.
But while shift work, regulations and patient safety are all likely to dominate their thoughts at the start of their careers, they should not lose sight of the importance of long-term saving.
Despite their hectic schedules, finding time to plan for the future can have a number of advantages for junior doctors.
So what are the key benefits of long-term saving
, and what options are open to young medical professionals who want to put money aside? Key benefits
By building up savings or a portfolio of investments
, junior doctors can:
How to build up a nest egg
- Plan ahead for retirement. With a growing number of physicians and GPs hoping to retire early, junior doctors should get into the savings habit as soon as possible in order to fulfil their own retirement goals
- Secure a deposit on a home. Whether through an ISA, investment bond or another vehicle, junior doctors can work towards buying a home of their own by making saving a key element of their monthly budgets.
- Prepare for emergencies. Although no-one wants to think about the prospect of a job loss or a serious illness, unforeseen events can have a major impact on people's finances. But saving even a small amount each month could help junior doctors cushion themselves against such emergencies
- Get ready for family life. Despite the many benefits associated with starting a family, having children can quickly take its toll on a household's budget. Young doctors can get their finances ready for family life by making savings right from the start of their careers.
- Expand their skill-sets. While junior doctors benefit from on-the-job learning, they may also be keen to gain external specialist qualifications which come with high price tags. Drawing up a long-term savings plan might help them to raise the funds for expensive course fees.
Wesleyan works closely with junior doctors and other medical professionals, to help them plan for the future.
The following investment and saving vehicles are currently available:
- With Profits ISAs - Individual savings accounts (ISAs) provide a tax-efficient way for people to put cash aside, as they do not have to pay tax on the income or capital gains they build up.
The With Profits ISA offered by Wesleyan are aimed at those looking for long-term capital growth.
They are specifically targeted at individuals who are able to commit their money for five years or longer.
These stocks and shares ISAs are placed in Wesleyan's With Profits Fund. This fund invests in things like shares, property, fixed-interest stocks, and cash, in an attempt to deliver capital growth over the medium to long term
- Capital Investment Bonds - These bonds offer people flexible investment plans, while also providing them with a small amount of life cover.
After initially paying in £7,500 or more, those using Wesleyan's Capital Investment Bond can choose to invest their money across 12 of 17 different funds.
They are encouraged to leave their money in these bonds over the medium to long term, in a bid to ultimately increase the value of their investments.
A cash sum is paid out if someone covered by the product passes away
- Investment ISAs and Unit Trusts
A diverse range of investment ISA and unit trust portfolios are open to investors, recognising that people have different approaches when it comes to risk.
The portfolios offered by Wesleyan cover those looking for a 'safety first' approach, right through to investors aiming to adopt a more adventurous strategy
- Flexible Savings Plans - Although no fixed term is attached to them, these plans are designed for investors who are looking to take a long-term approach - specifically those willing to save for a decade or more.
By signing up to Wesleyan's Flexible Savings Plans, people agree to pay in £100 or more each month, while they can choose to invest their money across 12 of 17 different funds.
By offering a small amount of life cover, the plans also pay out a cash sum when an individual covered by them passes away
- Classic Account - Along with the products mentioned above, cash savings accounts are also available to those who feel less confident about using investment funds.
The Classic Account provided by Wesleyan can be opened with a sum of just £100. It allows people to gain interest on their savings, rather than investing their money in funds.
This account gives savers easy access to their cash, instead of tying them into long-term commitments.
Copyright Press Association 2015