Law firms should tackle financial wellbeing, says Brewin Dolphin

The research, a survey of nearly 500 solicitors across the UK, which was undertaken prior to the Covid-19 pandemic, reveals that the majority of solicitors suffer from anxiety as a result of money concerns, with 30% of those surveyed saying that their finances frequently caused them stress.

The Brewin Dolphin Financial Wellbeing Report shows that financial worries are not just confined to the lower paid in the legal sector. The majority of those surveyed said they did not have enough to meet a desired standard of living and that their financial goals were often disrupted by one-off plans such as weddings, a house purchase or school fees for kids. Most respondents said that lack of time and awareness were the reasons for not embarking on a proper financial plan. Indeed, only 35% of those surveyed said they are saving enough for their long-term plans, most citing lack of knowledge, time and disposable funds as the reason for not being able to set out, and stick to, financial goals.

In addition, 70% of solicitors born in the 1970s said that they would be happy to pay a financial adviser to provide an accurate financial forecast to identify their earliest retirement date.

Richard Flood, investment manager at Brewin Dolphin Ireland, says: “Even prior to the current Covid-19 crisis, our research shows that solicitors from all points along the salary spectrum are worried about their finances. We believe that corporate care programmes that were designed to support mental wellbeing and physical wellbeing were missing an important element – financial wellbeing. As there is a strong relationship between personal finances and personal wellbeing, we believe the report has galvanised the need for firms to expand their programmes to cater for financial wellbeing. Solicitors well into six figure salaries are just as likely to be suffering from the stress caused by money as those earning less than €50,000 a year.”

The survey reveals that financial concerns are more acute among the lower paid solicitors, particularly those in the junior stage of their careers. Indeed, 21% of those in pre-partner roles claimed to rely on friends for advice and 29% said they did not take advice at all.

However, whilst indebtedness is a problem for younger solicitors, many of them, particularly women, understand the need to plan long-term investments such as pensions. For example, the survey revealed that 95% of women contribute to a pension scheme compared with 85% of men. It also revealed that 70% of male respondents didn’t know how much of their salary was paid into their pension compared to 72% of women who said they did know how much of their salary was paid into their pension.

Richard adds: “There is a lot to be done to address the gaps in solicitors’ personal financial knowledge. Our advice is that firms can do much to help their employees if they address the issue and team up with a wealth management firm to provide financial education and communicate with staff regularly about financial affairs, particularly during times of crisis.”

• Should you be interested in receiving a copy of the survey, please email Richard.Flood@brewin.ie