Over the past six months, prioritising debt repayment has remained crucial for individuals, and has increased in importance with 52% of respondents reporting it as their main priority.
This trend likely reflects concerns about high-interest rates, leading individuals to concentrate on reducing larger loans, such as mortgages, to alleviate financial strain.
According to search data, the term ‘mortgage repayment calculator’ as well as ‘mortgage rates’, have both seen a 35% increase in searches in the past year. This signifies that managing debt has been a considerable focus in recent times.
High interest deposit accounts are becoming less of a priority amidst economic uncertainty
In September of last year, high-interest deposit accounts ranked as the foremost financial priority for 28% of respondents. However, over the past six months, the importance placed on seeking out high-interest deposit accounts has experienced a subtle decline in people’s financial priority lists.
Investment portfolios become more crucial financial priority amidst year-end planning and market optimism
While paying down debt continues to be a primary financial concern for over half of respondents, there has been a notable shift in focus towards investment portfolios, with a significant 10% increase in concern over the past six months, according to the poll. Search activity for terms such as ‘long-term investment’ and ‘investment manager’ have surged by 39% and 50% respectively, underscoring the growing interest in this subject among many individuals.
Paul Clifton, Director, Wealth Planning at Arbuthnot Latham said, “When considering your financial plan, it is important to maintain a long-term focus, especially with an investment portfolio. It is also important to review your financial plan at least once a year to ensure your progress and goals remain on track.
“Market volatility presents tactical opportunities for a savvy short-term investor, but the risk is much higher. For people investing for long-term growth, a very important mantra that we share with clients is “it’s not about timing the market, but about time in the market”.
“This data is a good demonstration that, over a six-month period, more people were initially prioritising putting excess capital into a savings account versus an investment portfolio, but that sentiment changed as market conditions improved for investing and the prospect of rate cuts loomed. It is not surprising to see people’s focus changing, but a balanced portfolio with a long-term view has the sole purpose of riding out short-term volatility.
“It is also very interesting to me that more people didn’t consider paying down debt. This points to a bias towards ‘gains’ rather than ‘savings’. Both are as important as the another and cashflow planning is a very important part of wealth planning.”
However, as your financial priorities change, it is important to consult with an expert who understands your longer-term aspirations and your shorter-term considerations.”
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