The research reveals that most dentists are regular savers, but need to plan properly if they are to achieve all their saving goals.
Wesleyan found nine out of 10 dentists save regularly, typically putting aside more than £250 a month towards their future spending plans. Most dentists surveyed have already built up a savings pot of, on average, £10,720.
The research showed 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, it would cost £301,279 over a lifetime to cover all of these items.
For those dentists saving £250 a month, it could take them up to 55 years to reach this amount if they were saving into a Cash ISA paying, for example, 2 per cent AER interest – and even then they would need to leave those savings untouched during that time.
But that timescale could be reduced to just 27 years if they invested the same £250 a month in a stocks and shares ISA with annual returns of 8.6 per cent (based on an average of the past five years’ performance of the Wesleyan ISA with Profits Fund).
Samantha Porter, Wesleyan’s Group Sales and Marketing Director, said: “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.
“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.
“People should have different plans running alongside each other according to what they are saving for. 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.”