24 May 2018
Brewin Dolphin – one of the UK’s leading wealth managers – is asking the nation to write letters to their future selves to help them describe their long-term life goals and plan for them. By asking people to imagine what they want their life to be like when they retire, people think much further ahead than they ever normally do. Research it has conducted for a new campaign shows that over half (54%) of people plan their lives only days (31%) or weeks (23%) ahead.
To kick off its Life Stories campaign the wealth manager commissioned a bespoke writing project with 500 people asking them to look deep into their future lives in a bid to uncover what really matters to people.
Liz Alley, Divisional Director of Financial Planning at Brewin Dolphin, said:
“When asked to write a letter to describe their ideal future lives people were very good at imagining it. But they don’t know how they will get there. The next step is to build a bridge from now to that future self by putting a plan in place to get there.”
Letter writing
The writing exercise has uncovered how people really envisage their life in the future. Brewin Dolphin is showcasing some of the letters that stood out, to highlight some of the best articulations of what people want in the future. See notes to editors.
The 500 letters, all anonymous, illustrate that wellbeing in old age pivots on simple hopes – family, health and happiness – rather than extravagant financial ambitions. A well-balanced life was a key aspiration for many respondents. The letters confirm a clear hierarchy of needs and aspirations in life that many of us would have expected: family/partner, followed by career and financial security, followed by hobbies, and interests including friends.
While a handful of the 500 respondents hope for lottery wins or gold medal glory, the overwhelming majority express their desire to remain healthy and active in old age; to live ‘comfortably’ with some degree of financial security. The letters revealed a nation aspiring to much more grounded ambitions – the centrality of family, a desire to travel, learn through life, and to have fulfilling but balanced careers with work/life balance.
Liz Alley added:
“I’m not surprised that family, health and happiness are central pillars for people’s wellbeing. What is surprising is how unprepared most people are to achieve the dreams they have described.
“The letters are wonderfully optimistic but there is a reality check. The Brewin Dolphin Family Wealth Report showed us that people underestimate their required size of their pensions pots by up to £550,000, whilst many people who have the capacity to save aren’t.”
“By using the letter as a catalyst, we are urging people to over-come the obstacles of dreamers’ block. Once you know what your dream is, the next step is to plan for it. We want to help people fulfil their life plans. The earlier you know where you want to get to, the better chance you have of getting there.”
Disconnected aspirations
Meanwhile, to support the letter writing campaign the company also commissioned a survey of over 2,000 UK adults to gauge people’s current wellbeing and life goals. The survey indicates a fundamental disconnect between the lives people aspire to, and their life now.
The study found over half (54%) of people plan their lives only days (31%) or weeks (23%) ahead. While 14% of respondents said they plan for years ahead, very few (4%) plan for future decades. This may explain why only 11% of UK adults with life goals know how they will achieve them.
When it comes to life goals for the future, travel is a primary ambition for over two in five people (44%), followed by eating well (40%), getting fit (39%), more time with friends/family (36%) and better work/life balance (20%). Money is the main thing (33%) preventing people from achieving their goals, then motivation (28%), followed by energy and time as barriers in equal measure (26%).
When it comes to financial goals, one in five people (20%) have none whatsoever. Among those with goals in mind, the same percentage of people (20%) have not worked out a strategy and don’t know how they will achieve their goal/s. The top financial goals are: save for a rainy day (43%); earn more money (32%); save for special occasion (21%); reduce or clear debts (19%); buy property and pay off mortgage (both 17%).
Planning for the future
Brewin Dolphin says the findings point to the need for people to plan decades ahead and carve out the lives they want for themselves and their families. This is especially important for younger adults who have more years to make small changes now that can help them reach their future aspirations. The process of writing the letter should prompt that thinking and planning and hopefully that conversation with your partner and family.
Write your own letter
View a selection of the letters here. Write your own letter, using our Life Stories guide here
Liz Alley explains more about the project:
“Every day we spend time talking to clients, to help them build stronger financial futures and isolate exactly what they want for their future selves and families. However, as behavioural economists have highlighted, visualising the far-future isn’t always easy and humans don’t always make rational choices when powerful emotions are at play.
We recognise this human trait as we help clients plan their future lives. Letter writing is a mechanism to help people visualise their future lives. This aligns with how we work with clients – we take a holistic perspective to really help us understand them as an individual.”
Tom Johnson, Managing Director of Trajectory, comments on the letter writing research:
“This innovative methodology really got to the heart of people’s imaginations – we could have gathered many more letters, people really got into the spirit of the project! Although each letter is anonymous, they unlock what really matters to people and enriches their lives, not just in financial terms. Winning the Lottery or gaining world-fame is a wonderful dream for surprisingly few people. When everything is said and done, money is not a top priority. The letters revealed a nation aspiring to much more grounded ambitions – the centrality of family, a desire to travel, learn through life, and to have fulfilling but balanced careers with work/life balance. Revealing the future lives that people imagine for themselves helps to unlock what truly matters to people in a long-term context – the goals that really motivate them, and elements that affect their overall wellbeing.”
Five ways to change your financial future:
Liz Alley offers the following advice:
- Be aware of your finances. In my line of work, I meet people who suddenly realise that they took their eye off the financial ball. When this happens, the impact of an unexpected situation can be much more intense, because there are money issues on top of a very stressful situation. It might be something minor like a boiler breakdown, or major like a relationship breakdown or an unexpected illness. Being aware of your financial position doesn’t magically mean you’ll have more money but financial foresight can ease painful processes. For example, know what funds you have access to, keeping relevant paperwork in a safe and accessible place.
- Prepare and protect yourself. This links to other things you can do to change your financial future, such as having financial foresight. I know from our research that saving for a rainy day is a top money goal for households – they want to save whenever possible. But I do realise many people are under pressure here, as product prices have risen faster than wages. However, making tiny financial adjustments can prepare you for known events (such as special occasions) as well as unexpected problems. The prepare and protect mindset can bring peace of mind as well as boost your savings pot. Personally, I am a big fan of financial products that let you round up your small change – spare pennies. I find these apps a simple way to save as I go about everyday life.
- Talk about money. Like many things in life, talking to others can bring new perspectives and resolve niggling worries. Not just when things go wrong – getting tips and hints on anything and everything that matters is helpful. In my line of work, I sometimes meet people who find it very hard to talk about money with their loved ones. I think younger generations are less worried about opening-up on finances (such as debt problems or salary issues) than older ones; this is a good thing, because talking about money is important. Finding a money mate – someone you’re comfortable chatting with – can really help you focus on money goals you both want to achieve.
- Think ahead. This may sound like an obvious strategy if you want to change your financial future. However, our research shows that over half of the UK population plan their lives only days or weeks ahead. Modern life is very immediate, and it’s easier to be impatient about the big picture now we can get so many other things instantly at our fingertips. However, if you envisage specific things in the years ahead, you’ll need to put a series of practical steps in place to get there. Don’t just imagine your future, invest in it – both time and money – to make it a reality. It’s hard to imagine the very far distant future, decades away, so try focusing on a 5-10 year plan to start with, but with an eye on your long-term mission.
- Build a budget. Many money worries arise either from a failure to think about long-term financial needs or from unexpected events. One way to keep a lid on financial pressures is to build a basic financial plan and review it from time to time. Making a simple budget can identify sources of financial stress that could have an impact on your mental or financial wellbeing. Worrying about money can be a cause of anxiety and if not addressed quickly, it can spiral out of control. When a financial situation feels out of control it is important to seek help. Talking about money problems with someone impartial can sometimes relieve money stress. Many organisations offer free guidance and support in the UK, including the Money Advice Service and Citizens Advice.
ENDS
NOTES TO EDITORS
1. Other key findings
Two in five UK adults rate their life as great (40%) but a significant number (15%) admitted they’re not living the life they want – this equates to about 10m* people who feel this way.
When asked about the top three factors that affect their general wellbeing, two in five (42%) said finances, while health was named as the top factor (62%), followed by family (59%).
*UK population = 65.6m (ONS https://goo.gl/dCxKmk) 15% of 65.64 million = 9.846,00
2. About the study
The letter writing project asked 500 UK adults to write a letter to their future selves deep into old age – a letter their ‘future self’ may discover and read as they reflect-back on life. Methodology: online survey completed by 500 economically active respondents aged 18-65. Fieldwork by Trajectory from 12-20 April 2018.
People were invited to imagine themselves in old age and write a letter looking back on their life. They were encouraged to think about: their family and where they live; what they like to do in their spare time and hobbies, including travel; what they would like to achieve in their lives; what their working life and careers would be like; what their financial situation and security looks like, along with the value of money to them. The writers could download their own letter for their own records. All letters were anonymous.
The survey polled over 2,000 UK adults about their life now, their wellbeing, and attitude to money; also, what they want in the future – personal and financial goals, and how they’ll achieve them. Methodology: online survey was completed by 2,004 UK adults (18+). Fieldwork by Opinium from 11-14 May 2018.
3. Family Wealth Report
The Brewin Dolphin Family Wealth Report (Nov 2016) found people underestimate the required size of their pensions pots by up to £550,000, and a quarter of the UK population admitted to saving nothing at all.
PRESS INFORMATION
For further information, please contact:
Richard Janes richard.janes@brewin.co.uk Tel. +44 (0) 20 3201 3343
Sian Robertson: Sian.Robertson@brewin.co.uk Tel: (0) 20 3201 3026
Payal Nair payal.nair@brewin.co.uk Tel: +44 (0) 20 3201 3342
FTI Consulting: brewindolphinconsumer@fticonsulting.com Tel: (0)20 33195642
About Brewin Dolphin
Brewin Dolphin is a UK FTSE 250 provider of discretionary wealth management. With £39.7* billion in total funds, it offers award-winning personalised wealth management services that meet the varied needs of over 80,000 account holders including individuals, charities and corporates.
We give clients security and wellbeing by helping them to protect and grow their wealth, in order to enrich their lives by achieving their goals and aspirations. Our services range from bespoke, discretionary investment management to retirement planning and tax-efficient investing. Our focus on discretionary investment management has led to significant growth in client funds and we now manage £34.3* billion on a discretionary basis.
Our intermediary business manages over £11* billion of assets for over 1,000 advice firms either on a discretionary basis or via its Managed Portfolio Service.
In line with the premium we place on personal relationships, we’ve built a network of 29 offices across the UK, Jersey and Dublin, staffed by qualified investment managers and financial planners. We are committed to the most exacting standards of client service, with long-term thinking and absolute focus on our clients’ needs at the core. The value of investments and any income from them can fall, and clients may get back less than they invested.
*as of 31 March 2018