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Lawyers are sensible savers but need to save smarter to fulfil their ambitions, research reveals

Lawyers are sensible savers but need to save smarter to fulfil their ambitions, research reveals Desc / teaser Most lawyers are regular savers, but need to plan properly if they are to achieve all their saving goals, according to new research carried out by Wesleyan. Body Most lawyers are regular savers, but need to plan properly if they are to achieve all their saving goals, according to new research carried out by Wesleyan, the specialist financial mutual for lawyers.

Wesleyan found nine out of 10 lawyers save regularly, typically putting aside more than �250 a month towards their future spending plans. Most lawyers surveyed have already built up a savings pot of, on average, £25,720. The research showed the most popular saving goals for lawyers are:
  • Having enough money set aside to cover nine months' salary
  • A new car
  • A deposit for a new home

At today's prices, it would cost £288,370 over a lifetime to cover all of these items.

For those lawyers saving £250 a month, it could take them up to 54 years to reach this amount if they were saving into a Cash ISA paying, for example, 2% AER interest -- and even then they would need to leave those savings untouched during that time.

But that timescale could be reduced to just 26 years if they invested the same £250 a month in a stocks and shares ISA with annual returns of 8.6%* (based on an average of the past five years' performance of the Wesleyan ISA With Profits Fund).

Samantha Porter, Wesleyan's Group Sales and Marketing Director, said: "Everyone has something they are saving for, but if you want to make these dreams a reality you need to put a proper savings plan in place.

"Many people save without an actual end goal in mind, building up a 'rainy day' fund. Our experience shows those who can visualise what they are saving for are likely to be more successful savers.

"People should have different plans running alongside each other according to what they are saving for. If you're saving for the short term you probably want to have your money somewhere easily accessible, such as a cash ISA.

"If you're saving for the longer term, a trip of a lifetime when you retire for example, you can probably afford to lock away your money for longer and perhaps take a bit more. An equity-based investment, such as a stocks and shares ISA or investment bond, might be a better home for your savings in this instance.

"Either way the key is to save early, save often and save smart, regularly reviewing your plans to ensure they are on track and keeping pace with your changing circumstances. It's worth talking to a financial adviser who understands your career to help you plan over the long term."


* Based on saving £250 per month into a stocks and shares ISA with an average annual return of 8.6%. Figures based on the average percentage growth rate (PGR)  over the past five years of the Wesleyan ISA With Profits Fund. Past performance should not be taken as a guaranteed indicator of future returns and the value of your investment can go down as well as up, so you could get back less than you have invested. Saving £250 a month with this rate of return would enable a lawyer to build savings of £288,370 in 26 years.

'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

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© 2018 Wesleyan Assurance Society