Dentists are regular savers but need to invest their money more effectively if they want to achieve their saving goals.
This advice comes from Wesleyan, specialist financial adviser for dentists, who found nine out of 10 dentists save regularly, typically saving over £250 a month, with an average saving pot of £10,720.
‘Everyone has something they are saving for, but if you want to make these dreams a reality you need to put a proper savings plan in place,’ 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.’
Saving goals for dentists
Wesleyan found the most popular saving goals for dentists are:
- Having enough money set aside to cover nine months’ salary
- Children’s school and university fees
- The deposit for a new home.
At today’s prices, this would roughly cost around £300,000, which could mean dentists saving £250 a month would be saving for up to 55 years if they were to reach this amount saving their money in a cash ISA.
Wesleyan believes this timescale could be reduced if dentists invested this amount in stocks and shares ISA with annual returns of 8.6% (based on an average of the past five years’ performance of the Wesleyan ISA With Profits Fund).
‘People should have different plans running alongside each other according to what they are saving for,’ Samantha continued.
‘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 risk.
‘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.’