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Humans are hard-wired to make poor financial decisions. It’s just in our DNA.

Financial wellbeing is a broad topic, covering all aspects of the relationship between money and our long-term happiness. It covers a wide variety of subjects, including how to manage money better, and how to use money to generate wellbeing.

In some ways, financial wellbeing is about getting out of the bad habits we have acquired by linking money with success.

If you want to improve how you make financial decisions, this guide covers six steps to take:

  1. Understanding why you are bad with money
  2. Understand the sources of wellbeing
  3. Identify your objectives
  4. Don’t be a financial wellbeing junkie
  5. Connect with your future self
  6. How to give.

Download your copy of “Financial wellbeing: 6 ways to help you make better financial decisions” to learn more.

If you have any questions about your financial plan and how to improve your wellbeing, please contact us.

High levels of inflation and economic uncertainty continue to plague the investment markets. Investment portfolios are likely experiencing volatility – read on to find out what has been influencing markets.

Despite the doom and gloom statistics, financial services firm JP Morgan suggests that a global recession could be avoided as inflationary pressures ease.

As an investor, you may worry about what the current circumstances mean for your investments and financial goals. Remember, you should invest with a long-term time frame in mind and focus on performance over years, rather than weeks or months.

If you have any questions about your investment portfolio, please contact us.

UK

There were several pieces of big news in the UK during September.

Liz Truss was appointed prime minister on 6 September after winning the Conservative Party leadership race. Just two days later, Queen Elizabeth II passed away and many businesses chose to close or limit operations as a mark of respect during a period of mourning.

During the leadership race, Truss said she’d hold an emergency budget to tackle soaring energy bills and address other economic challenges.

Newly appointed chancellor Kwasi Kwarteng delivered the “mini-Budget” on 23 September. Among the announcements were:

  • Confirmation that there will be a cap on household energy bills at £2,500 a year for a household with average use for two years. In addition, the new Energy Bill Relief Scheme will provide support to businesses, voluntary organisations, and public sector organisations.
  • The additional-rate Income Tax band will be abolished from April 2023.
  • The cut to the basic-rate of Income Tax from 20% to 19% has been brought forward to April 2023.
  • The plan to raise Corporation Tax in April 2023 from 19% to 25% has been scrapped.
  • The National Insurance hike that was introduced in April has been reversed, as has the Health and Social Care Levy.
  • The Dividend Tax rise will be reversed from April 2023.
  • A Stamp Duty cut means that the tax will not apply to the first £250,000 of a property purchase. The threshold for first-time buyers also increased to £625,000.

The raft of tax breaks announced by the chancellor led to market volatility and the value of the pound falling against the euro and US dollar.

Inflation also remained high – it was 9.9% in the 12 months to August 2022. In response to inflation, the Bank of England (BoE) increased its base interest rate again to a 14-year high of 2.25%.

The BoE also said that the British economy is now in a recession after contracting for two consecutive quarters.

Official wage data highlights the pressure many families are facing. While average pay (including bonuses) rose by 5.5% in August, it’s a fall in real terms once you factor in inflation.

The economic situation is also affecting aspiring home buyers. Not only do rising interest rates mean repayments will be higher, but some mortgage providers have withdrawn products from the market due to concerns about potential defaults.

Many businesses are struggling with rising costs too and data suggests there could be further challenges ahead.:

  • The S&P Global purchasing managers index (PMI) suggests the manufacturing sector suffered its steepest downturn since the first Covid-19 lockdown as domestic and overseas demand fell.
  • The PMI reading for the service sector fell to 49.6 in August, signalling that the sector is contracting.
  • According to data from the Office for National Statistics, the value of sales by small businesses fell by 10% in July, when compared to the previous month. It’s the largest fall since April 2020, when lockdown restrictions were in place.

With these statistics in mind, it’s not surprising that research from the Confederation of British Industry shows a negative outlook. British manufacturers expect the biggest drop in production since the start of last year in the next three months.

Europe

European economies face many of the same challenges as the UK.

In the eurozone, inflation reached 9.1% in August. It led to the European Central Bank (ECB) lifting interest rates by a record amount to try and curb inflation – the base interest rate increased by 0.75 percentage points.

Forecasts for Germany’s economy highlight some of the obstacles to overcome. The Ifo Institute now expects the German economy to contract by 0.3% in 2023. Fears of energy shortages are also fuelling concerns, with a ZEW Institute economic sentiment tracker finding that investor morale is falling.

US

Again, inflation continues to be an issue in the US. Inflation fell slightly when compared to a month earlier in August to 8.3% but it was still higher than expected. Food inflation was also at its highest level since 1979 after a 13.5% year-on-year increase.

However, payroll data indicates that businesses are still confident as employment increased by 315,000 in August.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

There are lots of great habits from around the world you can adopt to boost your wellbeing. Even better, some of the most beneficial habits in the world are those that cost little and have been around the longest.

Read on to discover 10 tried-and-tested habits from cultures all over the globe that may help you improve your wellbeing.

1. Turkish hammam baths

A practice as old as civilisation itself, Turkish hammam baths have been found in ancient Greek, Egyptian and Roman histories. Hammam baths are tall, marble chambers where people spend time relaxing.

The baths are characterised by their tall marble interiors and moist, steamy environment. They are unique in that hammam baths have almost 100% humidity compared to a dry 15% found in saunas.

This combination of moisture has many wellbeing benefits and has likely stayed around so long because of them. It is widely considered a spiritual activity by its Islamic founders, who claim that cleanliness brings a person closer to God.

Beyond the spiritual, hammam baths have the potential to benefit physical health as well. They are thought to open pores, remove bodily toxins through sweat, improve blood circulation, clear the respiratory tract, aid metabolism, and mentally rejuvenate the individual.

2. Japanese ikebana

“Ikebana” is a Japanese tradition of arranging flowers, blossoms, branches, leaves, and stems into decorative formations to be featured somewhere in the house.

The hobby offers a refreshing contrast to the way Western philosophy approaches indoor plants, as ikebana favours considerate arrangement of the flowers as opposed to dropping them in a vase.

Three rules govern ikebana’s practice – colour, line, and mass. Successful examples of ikebana will find a balance of these three elements in their arrangement.

While ikebana is also intended to improve a room’s atmosphere, cognitive benefits to your wellbeing include reduced stress, and mental rejuvenation, along with the recognition of natural imperfection, simplicity, and balance.

3. Mediterranean diet

The Mediterranean is famous for more than just its sun and warm waters.

Countries along the Mediterranean are known for having uniquely healthy eating habits, including moderate amounts of oil, legumes, fruits, whole grains, wine, and fish.

The diet is based on the types of food eaten by those living along the Mediterranean basin, such as Italy, Spain and Greece.

Origins of this specific style of eating are lost to time, despite having vague roots in Ancient Greek and Roman cultures. By 1975, the Mediterranean diet was theorised and publicised by chemist Margaret Keys along with her husband, biologist Ancel Keys.

Eating a Mediterranean diet is widely thought to reduce risks of heart disease and stroke, Alzheimer’s, Parkinson’s and high cholesterol.

4. Fika in Sweden

Coffee breaks in Sweden are unlike anywhere else.

In Sweden, workplaces encourage their employees to “fika”. It involves taking a leisurely coffee break with friends or family at a café to unwind from work.

The word originated as a noun for a coffee break, but its popularity has seen it adopted as a verb for the act of taking coffee breaks. Now, to take a coffee break is to “fika”.

A fika is enjoyed outside as often as it is inside and can commonly be found accompanied by “fikabrod” – a sweet pastry to complement your coffee.

While this sounds like an employer’s nightmare, some workplaces in Sweden actually mandate fika since it is believed to boost productivity, reduce fatigue and improve memory.

5. Turmeric in India

India is known worldwide for its love of spices and exciting flavours in its cuisine. What many are unaware of, however, is the number of health benefits to be had from including spice in your food.

Many different aromatics and spices are native to India and grown in abundance, which would be impossible elsewhere. Popular examples of these are black pepper, cardamom and cumin. So, it’s no wonder the country has a love for flavour like no other.

Turmeric is the most notable of all spices in India and arguably has the most benefits. Almost all the global supply of turmeric grows in India – 80% of that is consumed within the country.

Giving the fragrant, yellow seasoning its healthy property is a bio-active compound named “curcumin”. It is known to moderate adipose tissue, which prevents the formation of blood vessels in fat deposits around the body.

Perhaps it’s worth sprinkling some turmeric into your next meal?

6. Intermittent fasting in Indonesia

Intermittent fasting is defined by restrictive eating habits, as participants often refrain from eating during the daytime. The breaking of fast is often done in the early morning and late evening to avoid the adverse effects of long-term fasting.

The approach to fasting among Indonesians is very casual and there is a plethora of types of fast to choose from. Many of these have philosophies attached to them that aid an individual’s outlook while performing the fast.

“Mutih”, for example, is a meal with strictly no flavour. Its most common form appears as a portion of white rice and water. Not even salt is permitted with the rice, showing the commitment people have towards fasting.

Restricting your eating habits, the way intermittent fasting does, can help to control blood sugar levels, improve the strength of the heart, and prevent cancer and aging. It can also aid the prevention of neurodegenerative diseases.

7. Cycling in the Netherlands

In a country with more bicycles than people, it should come as no surprise to see the habits of the Dutch on this list. Cycling has become somewhat of a national identity for the Netherlands.

With roads and paving frequently designed to accommodate the vast numbers of cyclists in the Netherlands, the habit has become a lifestyle in which small but frequent bike journeys offer significant health benefits.

Cycling can support cardiovascular health, weight loss, and joint mobility and it improves posture and strengthens bones. On top of this, it can further benefit wellbeing by providing cleaner inner-city air by taking cars off the road.

8. Friluftsliv in Norway

Translating to “open-air living”, friluftsliv is a Norwegian concept that encourages being out in a natural, open surrounding as much as possible.

The term was originated by Norwegian writer, Henrik Ibsen in the 1850s to represent the concept of spending time outdoors for physical and spiritual wellbeing.

Enthusiasm for this lifestyle is shared by many people among other Nordic countries. It is thought that their large land masses, relative to their small populations, instils a unique adoration for the natural surroundings.

Almost anything can fit within the parameters of friluftsliv and Scandinavians will cycle, picnic, walk, camp, or sit just to enjoy the outdoors.

Around half the population of Norway have access to a rural summerhouse of some kind, compounding their love of spending time in natural surroundings.

Becoming closer with nature isn’t the only benefit to friluftsliv as it has been found to improve eye health and happiness, strengthen the immune system, and decrease levels of stress.

9. Drinking tea in China

Drinking tea is viewed as a therapeutic practice in China. It’s highly popular among its population as over two tons is drunk every year – that’s over one-third of the world’s total.

Legend says that, almost 5,000 years ago, a Chinese emperor discovered tea when a tree’s leaf blew into a pot of boiling water, enticing him with its smell.

The activity is an important part of Chinese tradition and culture, also having roots in traditional Chinese medicine.

It is commonly drunk after large meals to aid digestion but is also believed to reduce risks of neurological diseases, strokes and numerous types of cancer, as well as lowering cholesterol.

10. Regular massages in Thailand

Thailand’s long history with massages begins around the time Buddha himself was alive – over 2,500 years ago.

The massage itself focuses on healing, rather than relaxation, and is defined by compressing, pulling and stretching the body with no oils or rubs.

Buddhist monks are widely credited as having developed the practice. A close friend to Buddha, Jivaka Komarabhacca is said to be the father of the Thai massage with his tremendous knowledge of healing and medicine.

Thai massages offer many wellbeing benefits. These include releasing muscle tension, improving blood circulation, and boosting the immune system, as well as lowering heart rate and blood pressure.

When you imagine the worries that might come with taking investment risk, it’s probably “taking too much” that comes to mind. After all, you’ve likely heard stories of people that have invested in high-risk opportunities and lost some or all their money.

However, when you’re investing for the long term, taking too little risk can also be damaging.

As inflation remains high, considering how you’ll get the most out of your money is more important than ever.

While interest rates are also rising, they still remain far below inflation, which was 9.9% in the 12 months to August 2022. As a result, money held in a cash account is likely to be falling in value in real terms. So, you may be wondering if investing could provide you with a way to maintain or grow the value of your assets.

One important thing to consider is: how much investment risk should you take?

Too little risk could mean your money isn’t working as hard

All investments carry some risk. However, investment opportunities can have very different risk levels. So, it’s vital you understand what risk you’re taking and whether it’s appropriate for you. 

It’s natural to feel risk-averse when you’re making decisions. After all, no one wants the value of their assets to fall, or you may worry about what would happen if you lost the wealth invested.

Yet, if you’re taking too little risk, it could mean your money isn’t working as hard as it could be.

As a general rule, the more risk you take, the higher the potential returns. So, taking an appropriate amount of risk could help you grow your wealth and reach your goals.

While markets experience volatility, historically, they have recovered, although this cannot be guaranteed. Taking a long-term view of your investments and the risk taken can reduce worries that you may have.

There are steps you can take to give you confidence when investing too. For example, you should have an emergency fund that you can fall back on. This could provide a valuable safety net if the value of your investments fell.

That’s not to say you should take a high level of risk for the chance of securing higher returns – it’s about balance. There are several factors you should consider when reviewing your investment risk profile.

4 essential factors to consider when creating a risk profile

A risk profile can help you understand what level of risk you should take. Within your investment portfolio, you’re likely to have investments with different levels of risk. However, overall you should align your portfolio with your profile.  

Here are four key things you should consider when creating a risk profile.

1. The investment time frame

You should always invest with a minimum five-year time frame. This provides time for the peaks and troughs of the investment market to smooth out and, hopefully, deliver returns.

However, there are many situations where you’ll be investing for much longer. You may be investing for your retirement over several decades, for example.

A rule of thumb is that the longer you invest, the more risk you can afford to take. So, it’s important to set out an investment time frame from the outset.

2. Your investment goals

What are your reasons for investing? Your response could change what investment risk is appropriate for you.

Let’s say you have a defined benefit (DB) pension that will provide you with a comfortable lifestyle in retirement. You want to invest so you can have more luxury experiences, such as long-haul holidays. You would be in a better position to take more investment risk than someone who is investing to create a retirement income that will pay for essentials.

3. Your financial circumstances

You shouldn’t make investment decisions without looking at your wider financial circumstances.

If you’re in a secure financial position, you may be able to take a greater amount of risk, as volatility is less likely to affect your lifestyle.

Ideally, you should have an emergency fund in place before you invest. You may also want to consider other steps, such as financial protection, to ensure you’re financially secure.

4. Your attitude to risk

Finally, it’s important you feel comfortable and confident about the steps you’re taking, so your attitude to risk matters.

Talking to a professional about your options and the potential risks can put your mind at ease. Once you understand how investing could fit into your portfolio, it may be something you decide to move forward with, or you may consider alternatives.

Contact us to discuss your risk profile and investment portfolio

It can be difficult to understand how much investment risk is appropriate for you, so we’re here to help. Whether you don’t know where to start or you’d like a professional to review your existing portfolio, please contact us to arrange a meeting.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment 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.

The last couple of years have been challenging for investors. Factors outside of your control are likely to have led to your portfolio experiencing volatility.

However, while market performance often grabs news headlines and your attention, the short-term movements of your portfolio shouldn’t be your main focus.

Market volatility characterised the first half of 2022

While markets experienced a sharp fall at the start of the pandemic in 2020, the majority recovered over the following 12 months.

However, volatility has characterised the first half of 2022 for many investors.

A perfect storm of factors has led to some investments falling in value. Among the reasons are the war in Ukraine, post-pandemic inflation, rising interest rates, and soaring energy prices.

According to Forbes, the FTSE 100 index, which is an index of the largest 100 companies on the London Stock Exchange has fared well. The relatively modest 3% decline was attributed to stocks in the commodities, energy, and financial sectors making up a large proportion of the index.

In contrast, the US S&P 500 stock index fell by more than 20% in the first half of 2022.

The volatility isn’t expected to calm in the coming months. There’s also a risk that economies, including the UK, could face a recession.

Seeing the value of your investments fall can be a cause for concern. You may be tempted to make changes to your portfolio as a result.

However, you should keep in mind the common saying: “It’s time in the market, not timing the market.”

If you think back to last year, how many of the events now affecting the markets did you predict? How quickly the economic and geopolitical circumstances have changed demonstrates why trying to time the market consistently is impossible – there are too many factors outside of your control to consider.

For most investors, a long-term plan that’s designed to ride out the ups and downs of the investment market makes more sense. Historically, investments have delivered returns over the long term, but you should keep in mind this cannot be guaranteed.

3 things you should focus on instead of market volatility

Volatility is part of investing. While it can be tempting to check how your portfolio has performed frequently, it can mean you’re more tempted to make changes.

Instead of checking how your portfolio is performing every day, or even every week or month, try to focus on these three things.

1. Your goals

When you start investing, you should do so with a long-term goal in mind.

This could be retiring, supporting your children in buying their first homes, or travelling more in the future. Ideally, it should be at least five years away to allow the peaks and troughs of the market to smooth out.

Focusing on your goal can help you stick to your plan when investment values fall in the short term. An investment strategy can give you confidence in reaching your goal, even when markets are experiencing volatility.

2. Whether the risk profile is right for you

Remember, all investments will experience volatility and there is always some risk. Choosing investments that are appropriate for you could help put your mind at ease.

There are many factors to consider when creating your risk profile, from your goal to your financial circumstances. It’s a step we can help you with and could ensure you pick investment opportunities that are right for you. By avoiding investing in companies that present a higher risk than your profile from the outset, it can help you screen out the concerns that volatility may cause. 

3. Long-term performance

It can be easy to focus on daily or weekly market movements. It’s often the focus of media headlines and it can seem exciting. However, it’s also more likely to lead to knee-jerk decisions that may not be right for you.

Instead, look at how your investments have performed over the long term: what’s the annual rate of return delivered? And how have investments performed over the last five or 10 years?

Over a longer period, portfolios should aim to deliver steady returns. Historically, this is what the markets have done, although it cannot be guaranteed.

So, in most cases, ignoring short-term market movements and focusing on the bigger picture makes sense. Remember, when market values fall, the loss is only on paper until you sell.

Arrange a meeting to talk about your long-term plans

If you’re ready to invest to achieve your long-term goals, please contact us. We’ll help you understand how it can fit into your wider financial plans, the level of risk that’s appropriate for you, and answer your questions about volatility.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment 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.

The cost of living is rising. Reviewing your finances now is crucial for understanding what effect inflation could have on your lifestyle and long-term plans.

Inflation was at an almost 40-year high. In the 12 months to August 2022, it was 9.9%.

There are several factors contributing to rising inflation, including the conflict in Ukraine, which has disrupted energy and food supplies.

Rising inflation means now is the ideal time to review your budget

Keeping track of your finances during the cost of living crisis is crucial.

In the short term, you should review your budget. Can your budget absorb the higher costs or do you need to make lifestyle changes?

The Bank of England expects inflation to peak at around 13%. It’s also said it doesn’t expect the rate to fall to its target of 2% for several years.

So, you should look at what that means for you in the coming years. Will rising energy prices mean you need to be more mindful of energy use or cut back expenses in other areas?

While the headline inflation figure can give you an idea of how prices are changing, your personal inflation rate may be very different. If you commute long distances, for instance, the steep rise in fuel costs may mean your outgoings rise more than you expect.

Going through your budget and calculating how your regular costs have changed in the last year can help you better manage your finances.

In some cases, you may decide to draw on savings or other assets to bridge a gap if your expenses rise. You should ensure this is sustainable.

The steps you take could affect your long-term plans

While it’s important to focus on how the cost of living crisis is affecting your finances now, don’t forget to consider the long-term effects too.

Decisions you make now could affect your income and financial security for years to come.

If you’re using assets to create an income, such as your pension, you need to be aware of how increased withdrawals may affect you. Could taking a higher income from your pension now to cover costs mean that you deplete your savings faster than you expect? If so, it could mean you face an income shortfall later in life.

Research also suggests that some people are cutting back outgoings that could improve long-term financial security.

According to Canada Life, 5% of adults have already stopped contributing to their workplace pension due to budget pressures. A further 6% are actively thinking about pausing their pension contributions.

While pausing contributions for a few months may seem like it will have little effect on your retirement, it can be larger than you think. The power of compounding means that pausing pension contributions for just a year could reduce the value of your pension at retirement by 4%.

It’s not just stopping pension contributions that could affect your long-term plans. Things like reducing how much you add to your savings account or investment portfolio could affect whether you can reach your goals in the future, whether that’s to support children through university or retire early.

Contact us to review your finances

Amid the current economic uncertainty, reviewing your financial plan can give you peace of mind and confidence. We’ll help you understand how your current budget has been affected and the steps you can take now to create long-term financial security.

Please contact us to arrange a meeting to discuss your goals and the effect the cost of living crisis could have.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

When you start thinking about how you’ll create an income in retirement, it’s probably your pension that comes to mind. Yet, if your estate could be liable for Inheritance Tax (IHT), it could make sense to use other assets first.

IHT is paid after you pass away if the value of all your assets exceeds certain thresholds. It can significantly reduce how much you leave behind for loved ones. However, there are often steps you can take to reduce a potential IHT bill, including assessing how you’ll use assets in retirement.

Inheritance Tax receipts reached a record high in June 2022

According to HMRC, IHT receipts between April 2022 and June 2022 were £1.8 billion. The sum is £0.3 billion higher than the same period last year and IHT receipts reached a record high in June 2022 due to high-value payments.

HMRC expects IHT payments to continue rising thanks to inflation and a freeze on thresholds.

The value of some of your assets, such as property or an investment portfolio, may be rising. Yet, the thresholds for paying IHT are frozen until 2026. As a result, more families are expected to pay IHT if they don’t take steps to reduce their tax liability.

There are two key allowances to consider if you’re reviewing if your estate could be liable for IHT:

  1. Nil-rate band: For the 2022/23 tax year, the nil-rate band is £325,000. If the value of all your assets is below this threshold, IHT will not be due.
  2. Residence nil-rate band: If you leave certain properties, including your main home, to your children or grandchildren, you can also take advantage of the residence nil-rate band. For the 2022/23 tax year, it is up to £175,000.

If you maximise both allowances, you can pass on up to £500,000 before IHT is due.

IHT is not due when you’re leaving assets to your spouse or civil partner, and you can also pass on unused allowances. So, if you’re planning as a couple, you may be able to leave up to £1 million without paying IHT.

The standard IHT rate is 40%. If it’s something your estate could be liable for, it’s important to be proactive to ensure you pass on as much as possible to your loved ones.

While you may consider gifting assets during your lifetime or making charitable donations, one potential option you may have overlooked is leaving your pension untouched.

For Inheritance Tax purposes, your pension is outside of your estate

Your pension is likely to be one of the largest assets you have. In fact, according to a report from the Office for National Statistics, private pension wealth represents a greater share of household wealth than property.

Crucially, the money held in your pension is usually considered outside of your estate for IHT purposes.

So, while your first instinct may be to access your pension to create an income in retirement, it could make financial sense to deplete other assets first and leave your pension for your loved ones.

The beneficiary of the pension may need to pay Income Tax at their nominal rate when they access the savings. The rate will depend on the age you pass away and how they access it, but it could be lower than the IHT rate.

If you’re concerned about IHT and leaving your pension to loved ones is something you’re considering, it’s important to review your long-term financial plan. You should understand how you’ll create an income in retirement that allows you to meet your goals, and what other steps to reduce IHT may be appropriate.

You will need to complete an expression of wishes to pass on your pension

Your pension isn’t covered by your will. The pension scheme administrator has the final say over who receives your pension when you pass away.

You can use an expression of wishes to tell the administrator who you would like your beneficiaries to be. It’s important you complete this. If you don’t, your pension may not be inherited by the person you want.

You will need to complete an expression of wishes for each pension you hold.

Creating a long-term financial plan that suits you

When you plan your retirement or pass on wealth, it’s normal to have lots of questions. We’re here to help you answer them and provide advice.

Whether you’d like to understand how you can mitigate IHT or how to use your assets to create financial security in retirement, please contact us to discuss your needs.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate will writing, tax planning or estate planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances. Levels, bases of and reliefs from taxation may change in subsequent Finance Acts.