Hargreaves Lansdown launches its financial resilience plan: 5 to Thrive

Sarah Coles, personal finance analyst at Hargreaves Lansdown, talks about the launch of Hargreaves Lansdown’s financial resilience plan, called it 5 to Thrive, which provides a 5-point plan to cushion finances.

“The pandemic has demonstrated just how important financial resilience is, and how much difference it can make to have something to fall back when life hits us with the unexpected.

“Building better financial resilience is at the core of what HL does, so we are bringing together a package of educational material, insights, tools and guidance designed to help people become more financial resilient.

“At its heart are 5 key steps we all need to have in place to be financially resilient, so we can withstand life events that could impact our income or personal assets: the 5 to Thrive.

“We’re also building a new financial resilience barometer, with an economics consultancy. This will help people better understand their resilience and what they can do to improve it. It will also drill down into different areas and demographics every six months, to help people see how their resilience measures up. We’re launching the barometer in January 2022.  Right now, we’re inviting input from interested parties, including charities, politicians and policy makers.

“This is part of broader financial resilience work HL is involved in, which has included behind-the -scenes work on tackling scams, helping solve the issue of pension transfers, providing the tools people need to become better investors, and cutting the cost of fund investing, as well as campaigning for changes in regulations that don’t work in the best interests of savers and investors.”

5 to Thrive:

• Control your debt – debt isn’t in itself a bad thing, but ensuring you can use it for your benefit rather being controlled by it is crucial. High cost debt can be particularly damaging for your finances.
• Protect your family – no one is immune to something going wrong, and if something happens to you, it can hurt your loved ones. That’s why things like protection insurance, the death benefits on pensions and writing a will are so essential.
• Save for a rainy day – it’s impossible to predict when things could go wrong, so it’s important to get ahead of the game by building a cash buffer for unexpected emergencies.
• Plan for later life – we can’t just focus on what’s around the corner; we need to think about the long-term too. Getting to grips with your pension and making sure you’re building a large enough pot for retirement will help protect you when you finish work.
• Invest to make more of your money – once you have built your short term resilience and are confident in your pension savings, you can consider investing, which gives you the opportunity to make your money work harder for you.

Kindly shared by Hargreaves Lansdown

Main photo courtesy of Pixabay