Protecting yourself
Be prepared and safeguard what matters
We all have plans, but financial wellness means being as prepared as possible for the unexpected. From your boiler breaking down to a job loss, or the death a loved one.
Whether you are facing a temporary or permanent financial loss, it helps to have some emergency savings and protection in place. The good thing is there are small steps you can take today to help you feel more protected against things we might not be able to control.
Having a rainy-day fund for unexpected money shocks, like an unexpected event or bill, is a great foundation to safeguard yourself, your lifestyle, and your family.
You can start by aiming to save around one month’s income, but it's ideal to have at least three to six month's income saved. It’s a good idea to build this up over time, and make sure it’s kept in a separate bank account.
Insurance may protect you, your loved ones and your belongings from the cost of something going wrong.
If something unexpected does happen – such as a burglary, a car accident or an illness – it means you won’t have to bear the full financial cost on your own.
How to safeguard your savings
It’s really important to think about what you can do to protect the savings that you’re working hard to build up. This includes anything you have that you might want to pass on to your loved ones when the time comes, as well as your retirement savings.
Make a will
People often forget that a will is a form of protection for your loved ones.
If you die without one, you’ll have no say over what happens to your money and assets. A court will decide how they are distributed, and only married or civil partners and some other close relatives can inherit. It could also make the process more stressful, longer, and more costly for your loved ones.
So sadly, if you fail to leave instructions, in some cases, relations by marriage, close friends and even unmarried partners could be left with nothing.
You can access low-cost will-writing services if your affairs are straightforward. For example, you can get a low cost will template or pack from stationery shops and there are also online services. More complex situations might be better handled by a solicitor, where charges will apply.
Protect your retirement savings
Your workplace pension is a valuable investment and there are ways you can protect it. After all, they are your hard-earned savings.
Nominate your beneficiary
- Protect your pension by making sure your provider knows who you’d like your pension to be paid to should the worst happen.
- For your Fidelity workplace pension, you can nominate your beneficiary by logging into PlanViewer. You can choose a single person or decided to divide your pension with up to 20 members of your family, friends or charities as beneficiaries.
Check if you're on track
Do you know how much income you’ll need to support the lifestyle you want in retirement? Use our retirement calculator to find out if you’re on track to meet your retirement goals.
A quick summary on protection
- Work towards having three to six months of emergency savings in place
- Take care of you and your loved ones by having appropriate insurance and creating a will
- Protect your pension by nominating a beneficiary.