An opportunity to recognise and celebrate the many months and years of hard work. This is also a time of important change for individuals who will be about to embark on the start of their careers and for many people, this will represent a considerable change in their financial circumstances.
One of the facts facing many graduates is the prospect of repaying student debt over a number of years. There may be a mixture of student loans, overdrafts, credit cards and loans from family members. How repayment might be managed, perhaps while also saving for a deposit for a property and the desire to enjoy finally having a regular income, is a balance which needs careful consideration. Retirement will be the last thing on minds but pensions also need to be considered as it is likely you will be automatically enrolled into a pension scheme when you start employment. It's important to consider the level of contributions to your pension and review these regularly to consider whether these are likely to be enough to provide you with an income that will meet your realistic needs post retirement.
It can all be a bit overwhelming working out where to start with financial planning and we would recommend you put a basic plan in place at an early stage to firstly work out the extent of your debt and consider how this is going to be repaid and over what term. A savings strategy, no matter how little you can afford to put away each month, is also a good idea, to start planning ahead for the future. Pensions do need to be carefully considered. The extent of your employer's contributions will often depend on how much you choose to contribute so it is important to look at how you can make the most of this.
To discuss your financial position and for help with your savings plan, please contact our Wealth Management team.