Solicitors’ financial wellbeing takes a hit

Our recent research shows that solicitors feel more pressure to meet the financial expectations of others, but that they feel less able and have less time to do so than other city professionals.

In our new report, ‘Financial Wellbeing: Family, Tax and Inflation’, over half of the solicitors surveyed (56%) agree that ‘meeting financial responsibilities and expectations placed on me by others’ is important, compared to 47% of accountants. Solicitors are also more likely to want to make financial gifts to their dependents, with 60% saying this is a priority, compared to 53% and 42% of accountancy and private equity professionals respectively.

% of respondents who said this was important or very important

Despite this desire to support others financially, solicitors rate themselves as less able to support their family and friends than accountancy professionals. In addition, only 54% of solicitors feel they have enough time to take control of their finances compared with 86% of accountants. Consulting a financial adviser could help these professionals save time, as well as enable them to support their dependents in the most efficient way.

Our research suggests that the pandemic has focused solicitors and their financial priorities further onto the home and family. Almost a third (31%) want to work from home more as a result of the pandemic and 35% want to spend more time with their family. The work from home effect appears more pronounced for female solicitors, with 36% wanting to make more use of the home office compared to 29% of men. In addition, more than half (52%) of the solicitors surveyed say they ‘have or will shortly be spending money on house renovations’.

This increased focus on the home and family life may be in order to mitigate the negative impacts on general wellbeing experienced over the last year, which is the top concern for solicitors, as well as all High Net Worth Individuals (HNWIs) surveyed for the report. The other two top financial wellbeing concerns for HNWIs are a long-term rise in inflation, and a change in tax; these two concerns were selected by 44% and 35% of solicitors respectively. Talking to a wealth manager can help address concerns around inflation and taxes, with tools such as cashflow forecasting and financial resilience planning.

% of respondents who selected this as a top financial wellbeing concern

Our latest financial wellbeing report is available for download here: Financial Wellbeing in 2021 – Family, Tax and Inflation – Saunderson House. The research, which has been running for four years, looks closely at the challenges and opportunities facing professional high net worth individuals. Saunderson House will soon be releasing a second report, which will closely examine how gender differences affect the financial wellbeing of city professionals.

For questions and comments, please do get in touch.