July marks Disability Pride Month, which provides an opportunity for disabled people to come together. If you’re living with a disability, you might face some unique financial challenges that a financial plan could provide a solution for.
According to the House of Commons Library (17 November 2025), it’s estimated that 16.8 million people in the UK had a disability in 2023/24. The figure accounts for around a quarter of the population.
So, while living with a disability may feel isolating at times, there are other people who understand your experiences.
From a financial perspective, a disability could affect your finances both now and in the long term. A financial plan would recognise your circumstances, needs, and goals, and any concerns you might have, which could provide reassurance and clarity.
A long-term financial plan could support security in the future
The UK government’s definition of a disability is a physical or mental health condition that has lasted or is expected to last 12 months or more. In addition, the condition or illness affects your ability to carry out day-to-day activities.
With potential challenges managing your daily routine, planning for the future could be left by the wayside. Yet, a long-term plan could be important for your security in the future. Here are five ways a financial plan could be valuable if you’re living with a disability.
1. A plan is tailored to you
The first thing to note about a financial plan is that it’s tailored to you. As someone living with a disability, you might want to factor in specific financial challenges, such as the potential need for additional living, healthcare, or support costs.
2. Review your ability to withstand financial shocks
Having a strong financial foundation is essential for building long-term security. A key part of this foundation is assessing how well you could withstand financial shocks.
Traditionally, it’s recommended that you keep six months of regular expenses in an easy-access cash account. A financial planner could help assess if this is right for your circumstances.
In addition, financial protection could provide a cash injection when you need it most, such as if you’re unable to work due to an accident or illness. It’s a common misconception that a pre-existing condition excludes you from taking out financial protection. However, there may be options available, which your financial planner could discuss with you.
3. Make long-term goals part of your budget
Planning for long-term goals, such as retirement, can be difficult for everyone, but there might be an added layer of complexity if you’re living with a disability.
The potential need to focus on your health and choose flexible roles could affect your ability to save for retirement. Indeed, a Scottish Widows report (4 June 2026) found that half of UK adults with physical or mental conditions that affect their day-to-day life face pension poverty, compared to 27% of the general population.
In addition, you might benefit from a long-term plan that offers greater flexibility to suit your needs, such as the ability to dip into savings if you take time off work.
A financial plan could help you see how you might set aside money for your long-term goals and make them part of your budget, keeping your needs now and in the future in mind.
4. A cashflow model could answer your “what if?” questions
A financial planner could use a cashflow model to help you visualise the effect of different scenarios. This could be useful for answering difficult “what if?” questions you have and identifying gaps.
For example, you might use a cashflow model to answer questions like:
- Do I have enough savings to cover a six-month period where I can’t work?
- How would retiring early due to ill health affect my retirement income?
- How would a career break affect my ability to reach long-term goals?
It’s a step that could help you feel more confident in your finances.
A cashflow model is based on information you input and assumptions, such as the rate of inflation or investment returns. The outcomes of a cashflow model cannot be guaranteed.
5. Regular reviews could help your plan reflect your changing circumstances
Over time, disabilities and circumstances might change. By working with a financial planner on an ongoing basis, you can schedule regular reviews to help ensure that you remain on track and your assets are used in a way that continues to suit your needs.
Contact us to talk about your financial plan
If you’d like to discuss your long-term finances and create a plan that’s tailored to your circumstances, please get in touch.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
The Financial Conduct Authority does not regulate cashflow modelling.
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