A new survey conducted by Wesleyan, a specialist financial mutual for dentists, has looked at the saving habits and financial ambitions for people in the profession and found that, while dentists are regular savers, they need to think more carefully about how they’re saving if they’re to achieve their goals.
The survey, of 417 professionals, found that 9 in 10 dentists save regularly, saving on average £250 a month. Most dentists have already built up savings worth an average of £10,700. The main goal of saving is to have enough money to cover nine months’ salary, followed by paying for children’s education and a deposit on a new house.
Taking all these goals into account, dentists would need to save more than £301,000, on average, during their lifetime to achieve all of these ambitions. For those dentists saving only £250 a month, however, it take a whopping 55 years to save that much money if they were saving into a Cash ISA paying, for example 2% AER interest as opposed to just 27 years investing the same amount in a stocks and shares ISA with annual returns of 8.6%.
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.
“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 advisor who understands your career to help you plan over the long term.”