Scots banking on lottery to rescue finances


FakeBankNotes2By Rory Reynolds

A QUARTER of Scots are banking on winning the lottery to avoid financial ruin – despite the odds standing at 14 million to one.

A staggering 24 per-cent are relying on getting lucky numbers to solve their financial problems according to a report by the Institute of Financial Planning.

And the number of Scots who have no financial goals or plans has doubled in the last year to 29 per cent.

Nick Cann, chief executive of the IFP, an independent advice body, said that focusing on a financial plan is crucial to staying above water.He said: “The last 12 months have been awful and there are no concrete signs that things will get better until 2010.

“It isn’t, however, time to panic – it is time to put some context around the finances.”The report was released as part of Financial Planning Week, a campaign to educate and advise people on money management issues.

It will also offer free advice on finances, whereas the cost for expert financial planning advice starts at £150 per hour.

Mr Cann added: “There seems to be a myth that financial planning is just for the wealthy, or that professional help is expensive, which is why we run Financial Planning Week each year.

“We are aiming to change perceptions of financial planning by offering free, impartial advice to people at all stages of life through our website – showing how applying just a few simple steps can make a huge difference.”

The Financial Services Authority is currently proposing to amend the way that commission is awarded to financial planners.

It aims to ensure that advisors are selling plans that provide the highest commission, instead of those that are best for the client.

The report also found that despite the fact that four fifths of people are unhappy with their finances, just seven per-cent would seek help or advice.

See more of our pictures at our Flickr site and videos at our dedicated channel,  Deadline TV.