Month: November 2022

Globally, inflation and recession risks continued to affect markets in November.

Head of the International Monetary Fund (IMF) Kristalina Georgieva suggested that inflation could be nearing its peak.

However, the Organisation for Economic Cooperation and Development (OECD) urged central banks around the world to keep raising interest rates to tackle moderate levels of inflation. So, while some of the pressure may be starting to ease, households and businesses are likely to still face challenges in 2023. 

Remember, while markets may experience volatility, you should focus on your long-term goals. While it is impossible to guarantee returns, markets have historically recovered from downturns. 

UK

Official statistics show that the UK economy contracted by 0.2% in the third quarter of 2022. This means the economy is on the brink of recession. Inflation also increased to another 40-year high in the 12 months to October to 11.1%.

Against this backdrop, new prime minister Rishi Sunak and chancellor Jeremy Hunt delivered the autumn statement. 

In sharp contrast to the mini-Budget delivered just a few months ago under the leadership of Liz Truss, the autumn statement increased taxes. Key changes were made to the Capital Gains Tax annual exempt amount, Dividend Allowance, and the threshold for paying additional-rate Income Tax. 

Hunt also confirmed that the State Pension triple lock would be maintained. This will give pensioners a record rise in income as the State Pension will increase by 10.1% in April 2023. 

In response to high inflation, the Bank of England (BoE) increased its base interest rate again. The rate is now 3% and the highest it’s been since the financial crisis. The central bank also warned that the UK could face a prolonged recession. 

The economic and political turmoil meant that Britain lost its title as Europe’s largest equity market to France. 

The Standard & Poor (S&P) Global Purchasing Managers Index (PMI) for the UK manufacturing sector fell to 46.2 in October. A reading below 50 suggests the sector is contracting and it’s the lowest reading since May 2020 when the pandemic affected operations. The war in Ukraine, weaker demand from China, and ongoing challenges related to Brexit were linked to the downturn.

People reigning in their spending are affecting the retail sector. Data from the Office for National Statistics (ONS) suggests that retail sales are still below their pre-pandemic levels. 

Several high street brands, including Joules and Made, have fallen into administration due to the challenging circumstances. 

The economic uncertainty is affecting households too.

The UK jobless rate increased to 3.6%, according to the ONS, which also found that wages are lagging behind inflation.

A report from think tank the Resolution Foundation found that two decades of wage stagnation is costing the average British worker £15,000 a year. The report suggests that wages will not return to the level before the 2008 financial crisis in real terms until 2027. 

Budgets are being stretched by household essentials. A report from Kantar Worldpanel found that grocery inflation hit 14.7%. This means that the average grocery bill has increased by £682 in a year.

With inflation in mind, it’s not surprising that a GfK report found that British consumer confidence is at a record low. 

Consumer confidence is also affecting the housing market, with many people reluctant to move or increase the amount of debt they have as interest rates rise. 

Figures from Nationwide show that house prices fell by 0.9% month-on-month in October. Many experts are predicting that house prices will fall in 2023. Savills predicts a fall of 10%.

In turn, this is affecting UK builders, as new orders fell for the first time since May 2020, when the first Covid-19 lockdown was in force. 

Europe

The situation in Europe is similar to the UK, with recession risk and high inflation affecting business confidence. 

According to Eurostat, inflation across the eurozone hit 10.6% in the 12 months to October. The energy crisis is the biggest factor pushing up the rate of inflation as prices were 41.5% higher than they were a year ago. There’s also significant variance between the countries that are part of the eurozone. France had the lowest rate of inflation at 7.1%, compared to 22.5% in Estonia. 

Unsurprisingly, concerns are having a knock-on effect on businesses. The S&P Global PMI for manufacturing in the eurozone fell to a 29-month low of 46.4. The reading shows the sector is contracting, which could indicate the region is in recession. 

As Europe’s largest economy, Germany is often used as an indicator of the region. German factory orders fell 4% month-on-month, partly driven by a fall in foreign orders.

This has affected business sentiment. A survey conducted by the Association of German Chambers of Commerce and Industry found that 82% of businesses see the price of energy and raw materials as a business risk. This is the highest since records began in 1985. 

US

Official statistics suggest that inflation in the US is stabilising. In the 12 months to October 2022, it was 7.7% after a slight dip when compared to the previous month.

Figures from the Bureau for Labor Statistics also indicate that businesses are feeling optimistic. Despite economists expecting a drop in the number of job openings, there was an increase of more than 400,000 in September. The findings suggest that businesses are continuing to invest and feel confident enough to expand their workforce. 

Revenue updates from some American companies also paint a positive picture.

Pharmaceutical firm Pfizer raised its 2022 earnings guidance and Covid-19 vaccine sale forecast. It now expects earnings per share to be between $6.40 and $6.50 (£6.20 to £6.30), compared to its previous forecast of $6.30 to $6.45 (£6.11 to £6.25). 

US company Uber also saw its shares rise after it beat revenue forecasts. Year-on-year, revenue increased by 72% to $8.3 billion (£8.05 billion) after lockdowns were lifted. 

On the flip side, Mark Zuckerberg, owner of Meta (formerly Facebook), admitted he had got it wrong and that things were worse than he had expected. The company is set to cut 11,000 jobs, the equivalent of 13% of its workforce.  

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.

Experts are predicting that the UK will face a recession in 2023. While it can be tempting to react to this news by changing your investment strategy, sticking to your long-term plan makes sense for most investors. Read on to find out why.

Several factors are contributing to economic uncertainty, including high inflation and concerns about energy supply. The long-term effects of the Covid-19 pandemic and the ongoing war in Ukraine are two of the reasons for these challenges.

In its November report, the Bank of England said the economic outlook was “very challenging”. It expects the economy to be in “recession for a prolonged period”, adding that inflation was forecast to remain high until mid-2023 when it is expected to fall sharply. 

Other predictions also paint a gloomy picture of the UK economy. 

According to the EY ITEM Club, the economy will contract by around 0.2% each quarter from the final quarter of 2022 until the second quarter of 2023. Overall, it expects the economy to contract by 0.3% in 2023. This compares to a previous forecast that indicated the economy would grow by 1%. 

The organisation noted this is shallow when compared to previous recessions thanks, in part, to the government’s intervention on energy bills. 

Hywel Bell, EY UK chair, added: “There are very significant risks to the forecast, with the potential for further surprises or global instability creating additional drags on growth. Businesses will need to think very carefully about their resilience and plan for different scenarios, while also being mindful of the support they provide to their customers and employees.” 

Similarly, Goldman Sachs has downgraded its growth forecast for the UK, according to a Guardian report. The investment bank now expects the UK economy to shrink by 1% in 2023. 

A recession could lead to market volatility, but history indicates it recovers in the long term

While these predictions can be alarming to an investor, remember, that markets have recovered from previous downturns.

Economic uncertainty can lead to businesses and households tightening their belts, which has a knock-on effect on business profitability and markets. While it’s impossible to predict the markets, history shows us that they have recovered from recessions in the past. 

Take the 2008 financial crisis. In the UK, the recession that followed lasted for five consecutive quarters. During this time, the markets fell, but they went on to recover and grow. Investors that panicked and sold amid the downturn would have turned paper losses into real losses and missed out when markets began to rise. 

Over the next year, your investment portfolio may experience volatility or a fall in value. While all investments carry some risk, looking at how markets have responded to similar events over the long term in the past can give you confidence. 

If you’re tempted to make changes to your investments, here are five things you should do.

1. Focus on your long-term goals

As highlighted above, investment markets have historically delivered returns over the long term. Rather than responding to short-term economic challenges, focus on why you’re investing. 

2. Don’t make knee-jerk decisions

It can be easy to make knee-jerk decisions, especially during investment volatility. But the decisions you make can have a long-lasting effect, so it’s important that they are measured. Taking some time to weigh up the pros and cons can highlight where you could be making a mistake by reacting to short-term volatility. 

3. Review investments alongside your financial plan

Don’t think of your investments in isolation, they should play a role in your overall financial plan. So, if you’re tempted to make changes, review your options in the context of your wider finances and goals.

4. Consider your risk profile before you make changes

Before you make any investment decisions, you need to consider how they could change your risk profile. Choosing risk-appropriate investments is important. Taking too little risk could mean you don’t reach your goals, while taking too much could mean you’re exposed to more volatility. 

5. Speak to us

If you have any questions about the current economic situation or would like to discuss your investment plan, speak to one of our team. We’ll help you understand the effect on your lifestyle and your goals. Whether you want reassurance that your plans are still on track or you’re considering making changes to your investments, we’re here to help. 

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.

While many tax allowances haven’t fallen, they haven’t increased in line with inflation either. In real terms, that means they’re less valuable than they once were. It could affect your income, long-term wealth, and what you leave behind for loved ones.

As the cost of living and the value of some assets rises, the tax breaks you use may not be stretching as far. It means your tax liability may have increased or that you need to review your financial plan.

As potential Inheritance Tax (IHT) bills consider the total value of your estate, the associated allowances can really highlight the effect of inflation. 

The nil-rate band would have increased by more than £135,000 if it matched inflation

The nil-rate band is the threshold for paying IHT. If the total value of your estate is below this, no IHT will be due.

For the 2022/23 tax year, it is £325,000. It’s remained at this level for 13 years. However, according to a report in the Telegraph, if the allowance had kept pace with inflation, it would be worth more than £462,000 today. It would mean that families could leave loved ones more than £135,000 extra without having to worry about IHT.

Yet, while the allowance has been frozen for more than a decade, many of the assets you want to leave behind are likely to have increased in value significantly. 

According to the Land Registry, at the start of 2009, the average home in the UK was worth almost £158,000. 13 years later, the average property price had risen to almost £275,000. As a result, property alone will now use up a significant proportion of the nil-rate band.

If you’re leaving some property, including your main home, to children or grandchildren, you can take advantage of the residence nil-rate band to increase how much you could pass on free from IHT. For the 2022/23 tax year, this is £175,000.

However, both the nil-rate band and residence nil-rate band are frozen until 2028. So, in the current high inflation environment, the value these allowances provide in real terms is likely to fall.

Many of the allowances you can use to pass on assets during your lifetime to reduce IHT haven’t increased either. Assets may be considered part of your estate for up to seven years for IHT purposes, so these allowances could be a vital part of your financial plan.

Among those that haven’t increased are: 

• The annual exemption means you can pass on up to £3,000 worth of assets each tax year without the sum potentially being added to the value of your estate. However, if it had increased in line with inflation, it would be more than £10,000 today.
• Parents can gift their children up to £5,000 on their wedding day without considering IHT. If this allowance had increased at the same pace as inflation, it would be worth almost £35,000 in 2022.

So, while the allowances you make use of may not have changed, the value they add to your financial plan could have fallen. 

It’s not just IHT where frozen allowances could be affecting your wealth and tax liability either. 

3 other allowances that may not be as valuable due to inflation

1. Income Tax thresholds

While the Personal Allowance threshold has increased significantly over the last decade, the higher- and additional-rate Income Tax thresholds haven’t increased at the same rate of inflation. As a result, if your salary has risen, your tax liability is likely to have risen too. 

According to Quilter, if Income Tax thresholds remained frozen for the next five years, someone earning £35,000 would be around £2,000 worse off over the five years. For someone earning £50,000, this rises to more than £9,000. 

During the autumn statement, chancellor Jeremy Hunt announced the income for paying the additional rate of Income Tax would fall from £150,000 to £125,140 in the 2023/24 tax year. As a result, high earners may see their tax liability increase. 

2. Dividend Allowance

Dividends can be a way to boost your income. If you’re a company owner, you may choose to take dividends as payment to supplement a salary, or you may invest in dividend-paying companies.

For the 2022/23 tax year, you can take up to £2,000 in dividends before tax is due. This compares to an allowance of £5,000 a decade ago. Once you factor in inflation, the value the Dividend Allowance offers falls even more sharply.

The Dividend Allowance will fall to £1,000 in 2023/24 and to £500 in 2024/25.  

3. Pension allowances

Both the Lifetime Allowance and Annual Allowance have fallen in the last decade. Again, when you consider inflation, the reduction in value becomes even starker and it could have a significant effect on your retirement savings.

The Annual Allowance limits how much can be added to your pension during a tax year while retaining tax relief. For the 2022/23 tax year, the maximum Annual Allowance is £40,000, and some savers may have a lower allowance. This compares to a maximum allowance of £50,000 in 2012/13.

Similarly, the Lifetime Allowance, which caps the total value your pension can be while retaining tax efficiency benefits, fell from £1,500,000 in 2012/13 to £1,073,100 in 2022/23. 

Making inflation part of your financial plan

When you are making long-term plans, inflation is important to consider. From the value of allowances to how to manage your savings, the rising cost of living may affect your decisions.

Please get in touch with us to discuss how to make inflation part of your decision-making process.

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 estate or tax planning. 

This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

When you’re thinking about your financial plan, what are your priorities? Often, passing on wealth and helping children or grandchildren realise their own goals is important. 

Despite a period of economic uncertainty, a survey from Scottish Widows found that 77% of UK households are still planning for the financial wellbeing of other generations. This could include children and grandchildren, as well as older relatives that may need additional support. 

If you want to focus on creating long-term financial security for your family, here are seven important steps to take. 

1. Build up your emergency fund

To achieve long-term financial security, you need to have a solid foundation. If you don’t already have an emergency fund, it’s a good place to start.

Having three to six months of expenses in an easy access account can provide a safety net if your income temporarily stops or you face a bill. It can help ensure you can continue to meet financial commitments even if the unexpected happens, including things like contributing to a nest egg for your child’s future. 

An HSBC study found that the average emergency fund balance is £7,606. However, 18% of people had £1,000 or less. 

You should go through your budget to calculate a target for your rainy day fund. 

2. Assess if financial protection could provide peace of mind

Unexpected financial shocks can knock even the best-laid plans off course. An emergency fund can provide some peace of mind, but for larger shocks, financial protection can be useful.

Depending on the type of financial protection you pick, it could pay out if you’re unable to work due to an accident or if you’re diagnosed with a critical illness. Other options, such as life insurance, could provide your family with money if you pass away. 

Appropriate financial protection can help your family manage their finances even if the worst happens. 

3. Start saving on your child’s behalf

It’s never too soon to start building a nest egg for your child. 

If you start putting money away while they’re still young, it has longer to earn interest. It can also make regular contributions part of your budget and more manageable. 

A nest egg can help children start engaging with money and understand why saving is important from an early age. It could also support their goals, such as going to university or buying their first car.

One thing you need to consider is what type of account to choose. An easy access children’s account can be valuable if you want to use the money in the short or medium term. In contrast, they wouldn’t be able to access the money saved in a Junior ISA (JISA) until they were 18. 

4. Consider investing for their future

If you want to save for your child with a long-term view, investing could make sense. 

While returns cannot be guaranteed, investing could provide you with a way to grow the nest egg you’re building. It could be an option to consider if you have a goal in mind that’s further than five years away, such as helping them to buy a home.

When investing, it’s important to understand the risks and to choose options that are right for your risk profile. 

5. Talk about finances with your family

Helping your children financially doesn’t have to mean giving them money – knowledge can be invaluable too.

Talking about finances can be really useful. From discussing saving pocket money with young children to helping adult children navigate saving into a pension, simply having someone to discuss finances with can help create long-term financial security.

It’s an approach that can mean they make better decisions and are comfortable seeking support if they need it.

6. Write your will and commit to reviewing it

Writing a will is the only way to ensure your assets are passed on to who you want. Don’t assume your wealth will automatically go to your children, as this isn’t always the case. 

A will means you can set out who you want to benefit from your estate and specify what you’d like them to receive. 

While you can write your own will, it’s often advisable to seek legal advice, especially if your circumstances are complex. This can minimise the chance of mistakes occurring.

As your circumstances change, your wishes may do too. So, commit to reviewing your will regularly and updating it if necessary. 

7. Calculate if Inheritance Tax could affect your estate

The standard rate of Inheritance Tax (IHT) is 40%. So, if the value of your entire estate exceeds certain thresholds, it could reduce what you leave behind for your family. However, there are often steps you can take to reduce an IHT bill if you’re proactive.

The nil-rate band is £325,000 for the 2022/23 tax year – if the value of your estate is below this threshold, it will not be liable for IHT. If you leave your main home to your children or grandchildren you can also use the residence nil-rate band, which is £175,000 for the 2022/23 tax year.

As a result, many people can pass on up to £500,000 before IHT is due. If you’re married or in a civil partnership, you can also pass on unused allowances. This means if you plan with your partner, you may be able to pass on up to £1 million before IHT is due. 

Effective estate planning could help you make the most of other allowances to pass on as much as possible to your family. 

Contact us to talk about your family’s financial security 

While the above seven steps can help improve your child’s financial security, your plan should be tailored to you and there are often other things you can do. Please contact us to arrange a meeting and discuss what steps you could take.

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

Note that 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.

This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

Recently, you may have read headlines about how pension funds were close to collapsing. Naturally, you may be worried about your retirement savings and what protection is in place. Read on to find out. 

In September, former chancellor Kwasi Kwarteng delivered a mini-Budget that included aggressive tax cuts. It led to market volatility and the pound falling in value. While the government has since reversed many of the measures, you may have heard that the volatility it caused placed some pensions at risk.

The Bank of England (BoE) said that pension funds with more than £1 trillion invested in them came under severe strain, and several of them were in danger of collapsing following Kwarteng’s statement. Some funds would have been left with negative asset value and wouldn’t have been able to meet cash demands. 

The BoE stepped in with emergency intervention to calm the turmoil. It pledged to buy up to £65 billion of government debt to stabilise the markets. 

The steps taken by the BoE were effective, but the news that pension funds could collapse due to political and economic uncertainty can be a worry. However, there is protection in place.

The Pension Protection Fund protects defined benefit pensions

Much of the concern about pensions collapsing was about defined benefit (DB) pensions, also known as “final salary” pensions.

A DB pension is often considered the gold standard of pensions, as they will provide a reliable income for the rest of your life. The income provided is usually calculated based on your average salary and how long you’ve been a member of the scheme.

Many DB pensions also come with other benefits, such as providing an income for your partner or dependent children if you passed away. 

DB pensions are now less common as they represent a significant commitment from the pension scheme. As life expectancy rises, they’ve become more expensive to administer. However, they are valuable for retirees as they offer financial security and are often generous. 

If a DB pension scheme collapsed, the Pension Protection Fund (PPF) could protect your retirement income. 

According to the PPF, it protects millions of people who belong to a DB pension scheme in the UK and pays pension benefits to more than 260,000 people.

If your DB pension becomes insolvent and cannot provide you with the pension they promised, the PPF could provide compensation instead. 

If your pension scheme qualifies, the amount of pension compensation you’d receive would depend on if you’ve reached the scheme’s pension age or not.

• If you are under the pension age, you’d be entitled to 90% of the pension amount you had built up before the scheme became insolvent.
• If you are over the scheme’s pension age or start drawing your pension early due to ill health, you’ll receive the full pension.
• People receiving a survivor’s pension, such as widowers or children, will normally qualify for 100% of the pension income.

One important thing to note is that your income may not increase annually by as much as you expect through the PPF.

Many DB pensions provide an income that rises in line with inflation to preserve members’ spending power throughout retirement. However, increases in PPF compensation are capped at 2.5%, which could be significantly below expectations in a high inflation environment. 

You can find a full list of pension schemes that are covered by the PPF here: ppf.co.uk/schemes/index 

The Financial Services Compensation Scheme covers defined contribution pensions

Much of the turmoil reported in the news related to DB pensions, rather than defined contribution (DC) pensions. However, there are still protections in place for DC pensions that could give you peace of mind.

With a DC pension, you will make contributions, which benefit from tax relief, and are usually invested through a fund. In most cases, your employer will also need to make contributions on your behalf. When you retire, you will have a pot of money that you can use to create an income. 

If your DC pension scheme collapses, you will often be covered by the Financial Services Compensation Scheme (FSCS).  

• You can claim up to 100% of your pension, with no upper limit, if your pension provider fails. 
• If your self-invested personal pension (SIPP) operator fails, you can claim up to £85,000 per person, per firm.

Pensions are complex, and you can check how protected your pension is here: fscs.org.uk/check/pension-protection-checker 

The FSCS will not provide compensation if the investments held in your pension have not met your expectations or fall in value. So, it’s still important to understand your risk profile and choose a fund option that’s suitable for you. 

Contact us to talk about your pension

If you have questions about your pension, including how your savings are protected and what you can do to get the most out of them, please contact us. 

Please note:

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

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. Past performance is not a reliable indicator of future results. 

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.  

If you’re retiring in 2023, congratulations! It’s an exciting milestone that you’re no doubt looking forward to.

Here are six practical steps to take now to make sure you can retire with confidence and be financially secure. 

1. Set a retirement date

One of the important first steps is deciding exactly when you want to retire. 

This can help you decide when you’ll need to give notice to your employer and handle passing on responsibilities or projects to your replacement. 

It can also help you create an effective timeline for when you need to complete other tasks and make sure everything is ready for your retirement. 

It’s worth reviewing if you currently have valuable workplace benefits, such as life insurance or health insurance, that you’d like to maintain. It can ensure you don’t have any gaps in your retirement plan, and you can make it part of your budget from the outset. 

2. Check your State Pension

While you may have other sources of income in retirement, your State Pension is important as it provides a reliable source of income for the rest of your life. 

Knowing what income your State Pension will provide and when you can claim it means you can effectively plan how to use other assets. For instance, if you’re retiring before the State Pension Age, you may need to take a higher income from your personal pension initially to fill the gap.

The State Pension Age is slowly rising. It is 66 and is expected to reach 67 by 2028. 

You can use the government’s State Pension forecast to check how much you could receive, when you can claim it, and how you may be able to increase your entitlement. 

3. Review your pension and calculate your income needs

To ensure you’re financially secure in retirement, you need to understand how much income you need. This should cover both your essential expenses and the disposable income that will allow you to live the life you want. 

With a figure in mind, you can review your pension and start to understand whether your savings will be enough.  

Remember, your income needs may change throughout retirement and inflation will have an effect. You may also want to consider how other assets can be used to boost your income. 

When assessing if you’ve saved enough, you’ll need to think about how long your pension and other assets will need to last. Retirement can span many decades and calculating your long-term income needs now can help ensure you are financially secure in your later years. 

4. Assess your financial safety net

As many retirees aren’t earning an income, it’s important that you take steps to ensure you can weather a financial shock.

If investments experienced volatility, for example, do you have an emergency fund that you could use in the short term? Or what would happen if you needed to pay an unexpected bill?

An emergency fund can continue to add value to your financial plan in retirement. Depending on your circumstances there may be other things you can do to create a safety net too. 

If you’re planning with a partner, it’s important to consider how financially secure either of you would be if the other passed away. It can be difficult to consider this but means you can take steps to create long-term security if the worst happens. 

5. Book a meeting with a financial planner

As you approach retirement, you’re likely to have to make large financial decisions that could affect your income for the rest of your life. Seeking the support of a financial planner can help you understand your options and have confidence about retiring.

From your options when accessing a pension to the tax implications you may need to consider, we can help you create a retirement plan that’s right for you. It means you can focus on enjoying retirement. 

If you’d like to talk to a financial planner about your retirement, you can contact us.

6. Set out what you’re looking forward to

While getting your finances in order is a vital part of retirement planning, so is preparing for the next chapter of your life.

Don’t forget to think about the things you’re looking forward to. Whether you’re hoping to spend more time with grandchildren, take up a hobby, or something entirely different, start thinking about how you want to fill your time. It can help ensure that retirement meets your expectations and is fulfilling. 

Please contact us to discuss how you can balance goals with your finances. 

Please note:

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

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. Past performance is not a reliable indicator of future results. 

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.  

At the start of a new year, it’s common to reflect on what you want to achieve over the next 12 months and to set out some goals. It’s the perfect time to think about how you could improve your financial wellbeing too.

Around a third of Brits setting a new year resolution want to save more money. As well as boosting your savings account, there are other positive steps you can take to improve your financial wellbeing, such as:

• Reviewing your current mortgage deal
• Creating a plan to invest regularly
• Increasing your pension contributions
• Getting your estate plan in order.

Download your copy of “10 new year resolutions that could boost your financial wellbeing” to start thinking about how the financial decisions you make in 2023 could help you meet long-term goals.

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