"Save smarter" call to lawyers to meet financial goals

Most lawyers are regular savers, but need to plan properly if they are to achieve all their savings goals, according to new research carried out by financial mutual company Wesleyan.

The study, which looked at the savings habits and financial ambitions of lawyers, reveals that while people in the profession are regularly savers, they need to think carefully about when and where they save if they are to achieve their financial goals.

It found that nine out of 10 lawyers save regularly, typically more than £250 a month, and most lawyers have already built up savings worth, on average, £25,700. 

Having enough money to cover nine months’ salary is their main saving goal, followed by a new car and the deposit on a new home – but lawyers would need to save more than £288,000, on average, during their lifetime if they were to achieve all their spending ambitions.

Saving £250 a month into a cash ISA paying 2% AER interest, it would take up to 54 years to reach this total, Wesleyan state – provided the money is left untouched during that time.

Samantha Porter, Wesleyan’s group sales and marketing director, said: “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.”