Welfare Changes: Need For Financial Planning

Many people may need more financial planning to deal with potential welfare changes.

11:44 31 May 2013

The fate of the welfare system in the UK is under a lot of scrutiny at the moment. Some want to see a revision that puts the programmes essentially in the hands of the communities rather than a more centralised system.

 

This would mean some drastic financial planning changes for at least a few people, but no doubt many would be affected by the changes in other ways as well. 

 

• Budgeting will become more important to many, since there will possibly be fewer programmes to assist people with basic needs. 

• Relocating may be essential for certain people and families to survive on the income they have. Strict budgeting won’t always help if the basic expenses continually exceed the income. No amount of that type of financial planning will help, so drastic changes may be necessary. 

• Seeking other employment opportunities may also be part of the changes necessary for some individuals and families. They may need to find better paying jobs, or ones which offer them special benefits which help them either by reducing travel/commute expenses or through other aspects that affect their financial planning. 

• Savings habits for many people might need to change in order to prepare for the future since it is unclear if the pension scheme currently in place would remain, or even if it would be sufficient help. 

• Increased use of professional financial planning services will most likely occur to prepare in the best way for the changes that may come, and to ensure the financial security of the future. 

• Local programmes to assist people with basics such as obtaining food may help those who are struggling to make ends meet without the assistance of centralised welfare programmes. 

• Increased opportunities for organisations that are handled and managed locally to so their own financial planning and make sure that funds are used and distributed to those who need them most, and to cover the basic needs which are most pressing.