One in four look to Lotto for financial future

Monday, 07 September 2009 11:52

One in four people are seeing the National Lottery as the best hope to improve their finances.

The chances of winning the main prize in the National Lottery main draw are 13.98 million to one - unless you have the prediction powers of Derren Brown.

However, Brits are more likely to turn to the lottery for future sound finances than professional advice.

A poll for this week's Financial Planning Week 2009 found only one in 20 people would seek professional help to improve their finances.

While many people are aware of the need to get their finances in shape - saving more and clearing debts - professional advice is often shunned, seen as the preserve of those with plenty of cash to look after.

Nick Cann, head of the Institute of Financial Planning (IFP), said: "There seems to be a myth that financial planning is just for the wealthy or that professional help is expensive.

"We are aiming to change perceptions of financial planning by providing tips, tools and guidance to help people at all stages of life via our website - showing how applying just a few simple steps can make a huge difference."

The recession seems to have stopped people looking to the long term.

In 2008, 85 per cent of people polled by the IFP reported that they had identified their financial priorities and goals and were making appropriate plans to achieve them.

In 2009 this number reduced to 68 per cent.

A starting point is just to try to save some money each week.

John Prout, director at National Savings and Investments (NS&I), said: "Money can be a complex subject.

"Making sure that you set some money aside on a regular basis is a very good financial habit to have."

However, NS&I research finds 53 per cent of the population claimed they couldn't afford to save extra money each month.

Research from Standard Life today also shows how failing to look to the long term can really be costly.

A 27-year-old man - on a salary of £25,800 - who has no pension plans in place other than the state pension would retire at 68 with just 34 per cent of his pre-retirement income.

To receive two-thirds of his final salary with state benefits, he would have to defer retirement to 79.

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