Many people consider paying for their mobile phone or internet connection a higher priority than securing their family’s financial future, according to a recent survey by Scottish Widows.

By not planning adequately for illness, old age and death, they are putting their own and their loved ones’ long-term security at risk. But help is at hand – and it needn’t cost a thing.

Monday is the beginning of Financial Planning Week, when independent professionals across the country will be providing free advice sessions to anyone interested in improving their financial fitness.

The initiative is run by not-for-profit industry body the Chartered Institute for Securities and Investment (CISI). Members are offering face-to-face, skype and phone consultations in a bid to raise awareness that financial planning isn’t the sole preserve of the rich.

CISI director Rebecca Taylor said: “Our aim is to help the UK public draw up their own personal financial master plan, incorporating all of life’s milestones, whether that be preparing for retirement, buying a home, being newly wed or starting a business. This is something everyone can benefit from, not just the wealthy.”

Unsurprisingly, research from Alliance Trust Savings shows that people’s biggest financial fear is running out of money in retirement.

Brian Davidson, a pension manager with the investment provider, said: “As we’re all living longer, planning how to fund our lifestyle once we’ve finished working is a serious consideration, especially as the pension landscape has moved away from state provision and corporate final-salary schemes to place more emphasis on individual responsibility through personal and employer contributions.”

Yet, most people still aren’t putting away enough for old age. Almost 60 per cent of those taking part in a poll by Skipton Building Society said they expected to need to keep working after reaching retirement age.

Many are also failing to provide for loved ones in the event of their own death, by skimping on life cover or omitting to make their financial wishes clear.

Protection provider Sun Life says the number of people dying intestate – without a will – has doubled in five years.

Director Graham Jones explained: “Death is such a taboo subject. People do not like talking about it and, as a result, they are not planning for it. Without a will, you have no say in how your assets are shared, so it is really important you do so.”

All adults with dependents should have life cover at least equivalent to their mortgage, as this will clear the debt and ensure those they care most about aren’t left homeless. Ideally, there should be enough additional cash to provide a lump sum or regular income.

We are little better at planning for short-term crises.

A fifth of those responding to a survey by Scottish Windows admitted they didn’t know how long they would cope if a breadwinner became too ill to earn.

A quarter said they would be unable to pay household bills for more than three months, and a similar proportion guessed they could afford a maximum of just three mortgage payments.

More than 80 per cent of respondents said paying for an internet connection was essential spending, and over 72 per cent felt the same about their mobile phone.

But less than 30 per cent thought providing financial security for dependents if they become critically ill was a priority, and only 40 per cent said it was essential to ensure security for dependents if they died.

For those who can afford it, critical illness insurance can be added to life policies or bought separately. It provides a one-off tax-free lump sum on diagnosis of a limited range of serious conditions.

For most people, income protection, which makes a monthly payment to supplement savings and state benefits in the event of accident, illness or unemployment, is a better investment.

It covers far more eventualities, can be used to meet all sorts of expenses, and should continue until the policyholder recovers, retires or dies.

Johnny Timpson, a protection specialist at Scottish Widows, said: “While none of us ever want to think about the worst, our findings show that there are an alarming number of families who could face a significant financial struggle in the event of an unexpected loss of income due to serious illness or death."

Ms Taylor said: "People are starting to understand what financial planning is all about and are asking for an overall plan, not just for someone to have a look at their investments."

At least eight Scottish firms are offering free surgeries,.

To book a free session with a financial professional next week, go to www.financialplanning.org.uk/wayfinder.

For more information on choosing the right financial products to meet your needs, visit the independent website Moneyadviceservice.org.uk.

CASE STUDY

Joe Keen is glad he made an appointment with an independent financial adviser when he decided to take early retirement.

The former housing manager, who lives in Kilmarnock with his wife Margaret, an admin officer, wanted to review his options before starting to draw his local government pension.

Joe explained: “I had the option to take my full savings pot rather than just the pension, but I wanted to make sure the decisions I took were appropriate to my lifestyle.” He went to adviser Shona Barr at Affinity IFA in Prestwick.

As a result of her advice, Joe opted for a drawdown pension arrangement. He said: “I was surprised to find I could achieve the monthly equivalent of the best offer from the pension fund but still have control over my savings.

“It meant I could ensure Margaret would be comfortable if I died first and help out my son and daughter financially now.”