Families left vulnerable by insufficient financial planning

Insufficient financial planning is putting families’ wellbeing at risk, research from HSBC has revealed.

The worldwide survey of 17,000 consumers found that 52 per cent of parents with dependent children have no financial plan in place, meaning their family would be exposed to changes in circumstances such as ill health, job losses or life post-retirement.

In Britain, just 52 per cent of parents have some type of life insurance cover in their financial plans, which is below the global average.

The survey also found that just 56 per cent of parents have retirement finances in place.

Tax and inheritance planning are overlooked by many as 65 per cent of parents have not made a will, while just 27 per cent have a plan for passing on their inheritance.

Commenting, Christine Foyster, head of wealth development at HSBC, said: “The fact that such large numbers of households are not planning ahead is leaving families greatly exposed to unforeseen events. Protecting the household’s financial assets during parents’ working lives will not only ensure that families can cope if there is a change in circumstances, but should also be seen as an important part of preparing for retirement”.

Christine added: “It is crucial that parents the world over act now to secure their families’ future – and financial services providers must do as much as possible to help people make provisions for every eventuality.”