Why dentists should be saving and investing for the future

Dental Regional Manager Neil Richardson from Wesleyan Financial Services shares his views on why dentists should be saving and investing for the future.

Over the past couple of years, we have seen an increasing trend amongst our clients to take money out of their savings - drawing money from both their invested and cash-based savings that they had raised for their future. When we talk to our clients to determine why this has been happening, it appears there are a number of different reasons.

A small number of clients make these withdrawals because they have reached the time in their lives that their money was put away for - their retirement - and some of these clients are using it to fulfil their long-held dreams. Unfortunately, this is the exception and the majority have either been using their savings to maintain their standards of living during the ‘cost of living crisis'; or the funds have been used to pay down mortgage balances due to the increase in monthly repayments because of the sharp rise in interest rates we have seen over the last year.

To put this into context, the Bank of England's own data shows that in May 2023, savers withdrew over £4.6 billion pounds. This was the highest monthly figure since they began collecting data in October 1997.

What compounds this further is that we know from our interactions with our clients that dentists' lives have not altered drastically in terms of their aspirations for the future; the things they hope and dream for are still there, but at the same time many clients have had to stop saving for their futures.

For many people, the loss of the habit of saving for the future has been an absolutely necessary part of surviving the ‘cost of living crisis'. However, we know that the economy has up and down cycles, and it is inevitable that as likely as it is that good times will return, so will the bad - making it important to get back into the habit of saving for the future. The risk to our current clients is that without the habit of saving, where does that buffer of capital come from in challenging future times? And what will be used to fund their aspirations and those of their families?

As we started to see the FTSE moving into uncharted territory in the run up to Christmas, and more positive data about inflation falling with the recent announcement that it has dropped to 3.6%, we can be hopeful that 2024 will be a more prosperous time for us all.

I was a Specialist Financial Adviser for 14 years before becoming a Regional Manager, and I understand only too well just how demanding the schedule of an average dentist is. After a busy day dedicated to caring for patients, taking time out to plan for the future, may just seem like another task. However, I would strongly advise dental clients that now is a good time to revisit those old habits and get back into building up savings.

Seek advice from the specialists

There are many things to consider, making it important to access expert advice from a Specialist Financial Adviser who understands your career path, areas of concern and long-term financial goals and who can help you form a plan to make the most out of your hard-earned money.

If you would like help and support on savings and investments, you can speak to a Specialist Financial Adviser as part of a no-obligation financial review with a Specialist Dental Financial Adviser at Wesleyan Financial Services by visiting https://www.wesleyan.co.uk/financial-advice/appointment calling 0800 316 3784.

Please note: Tax treatment depends on individual circumstances and may be subject to change in future.

The value of investments can go down as well as up and you may get back less than you invest.

About Neil

Neil Richardson is a Dental Regional Manager for a team of Specialist Dental Financial Advisers at Wesleyan Financial Services, that support dentists, their families, and their practices with financial planning to secure their financial future.