Category: News

This year, World Sleep Day will take place on the 14 March.

The event encourages you to prioritise your sleep and learn more about the incredible biological process that you spend around a third of our life taking part in.

So, if you want to learn more about how and why we rest, read on to discover five interesting insights into the science of sleep.

1. No one knows why we sleep

Scientists used to believe that the brain used sleep to flush out toxins, but new research suggests that the opposite might be true and that exercise may be more effective at helping the brain get rid of damaging molecules.

While we aren’t sure why we sleep, scientists do know how important it is.

Sleep affects almost every type of tissue and system in the body, so a chronic lack of sleep or poor-quality sleep can increase your risk of health problems such as:

• Diabetes
• Obesity
• Depression
• High blood pressure
• Cardiovascular disease

If you are having trouble sleeping, it is important to make changes to your lifestyle or see a doctor so you can avoid these potential negative effects.

2. You can’t catch up on sleep

Adults should have seven to nine hours of sleep every night.

We’ve all been guilty of sleeping in longer on one day to make up for a night of lost sleep. However, a recent study found that sleeping extra to compensate for lost rest decreased participants’ reaction times and their ability to focus.

It’s better to practice good sleep hygiene by waking up and going to bed at the same time every night, including the weekends. And if you ever wake up tired, try solving it with a nap later in the day rather than a lie-in.

3. Sleep may help your social life

We’ve all avoided a social gathering now and again because we feel tired – but did you know that a lack of sleep can actively harm your social life?

Several sleep studies have concluded that people are less sociable when they’re deprived of rest, as well as less empathetic towards others.

This is because the brain has a network that acts like an alarm system that goes off whenever someone is near us. On no sleep, this system is highly sensitive and encourages us to stay further away from other people.

So, if you often find yourself irritable around others or wanting to stay away, it might be a good idea to consider whether you are getting enough sleep.

4. Your brain consolidates memories as you sleep

Recent research found that two substages of sleep help you to avoid “catastrophic forgetting”, where your brain rewrites or distorts one memory when new ones are created.

While your pupils are contracted during sleep, the brain replays and consolidates new memories, and when your pupils are dilated, it replays older ones.

This groundbreaking research has helped scientists understand how your brain separates new knowledge in a way that doesn’t interfere with the information already in your mind.

5. There are some strange ways to fall asleep

There are many common tips to help you fall asleep at night, such as avoiding caffeine or turning off electronic devices before bed.

But if you are still struggling, there are also some stranger ways to help you drift off.

Curl your toes

Repeatedly curling and uncurling your toes may help you fall asleep.

This simple exercise relaxes your muscles and focuses your concentration on a single part of your body, turning it into an easy meditative action.

Don’t sleep

If anxiety over how long it takes you to fall asleep is keeping you awake, you might benefit from trying not to sleep.

Lying in bed and trying to keep yourself awake all night often paradoxically leads to you unintentionally dozing off without focusing on the anxiety keeping you up.

Get out of bed

Similarly, if you’re struggling to sleep, forcing it won’t help. Sometimes, it’s better to get out of bed and try your hand at a different activity for a while before trying again.

Doing something that relaxes you – such as reading a book or completing a crossword – can help to encourage feelings of tiredness so you can drift off faster when you climb back into bed.

Worry on purpose

It’s important not to ignore the worries keeping you up at night.

Instead of dismissing them altogether, carve out some time to consider your concerns earlier in your day. Spend ten minutes writing down your fears or speaking to a loved one about them so they aren’t plaguing your mind when it’s time to rest.

Exhaust your mind rather than your body

Regular exercise can help you sleep. However, exercising just before bed doesn’t guarantee a good night’s sleep, because your brain is still awake no matter how tired your body is.

Instead, try to tire yourself out mentally by teaching yourself something new, solving a puzzle, or indulging in your favourite hobby.

Concerns around potential trade wars following President Trump’s inauguration weighed on investment markets in January 2025, but there was positive news too. Read on to discover some of the factors that may have affected the performance of your investments.

Keep in mind that short-term market movements are part of investing and taking a long-term view is an important investment strategy for many people.

UK

Headline figures were positive for the UK.

UK inflation fell to 2.5% in the 12 months to December 2024, data from the Office for National Statistics (ONS) shows. According to the Guardian, there’s a 74% chance the Bank of England (BoE) will cut interest rates in February as a result.

The ONS also reported the UK economy returned to growth in November 2024, as GDP increased by 0.1%. While it’s only a small rise, it follows three months of stagnation.

What’s more, the International Monetary Fund expects the UK to grow by 1.6% in 2025 and be the third-strongest G7 economy in terms of growth.

In encouraging news for the chancellor, at the World Economic Forum, PwC revealed that the UK is the second-most attractive country for investment, only falling behind the US. It marks the highest rank for the UK in the 28 years PwC has carried out the survey.

Sharp rises in borrowing led to the UK bond market making headlines.

On 8 January, UK government debt hit its highest level since the 2008 financial crisis, just a day after 30-year bond yields were at the highest level since 1998. Bonds rising could lead to mortgage lenders increasing rates and could affect the value of pensions, particularly those who are nearing retirement and are more likely to hold bonds.

Markets calmed down the following day but continued to experience ups and downs throughout January.

After the turmoil in the bond market, the FTSE 100 – an index of the 100 largest companies listed on the London Stock Exchange – was down 0.9% on 10 January. The biggest faller was financial group Schroders, which saw a dip of 4.3%.

Yet, just weeks later, the FTSE 100 hit a record high and exceeded 8,500 points for the first time on 17 January. The boost of around 1% was linked to speculation that there would be several interest rate cuts this year thanks to falling inflation.

However, many businesses still aren’t confident.

According to the British Chambers of Commerce (BCC), confidence among British businesses fell to the lowest level since former prime minister Liz Truss’s mini-Budget in September 2022. The pessimism was linked to chancellor Rachel Reeves’s £40 billion tax increases, which have placed a large burden on businesses. The BCC survey suggests 55% of firms plan to raise prices as a result.

Similarly, a survey from the BoE suggests more than half of UK firms plan to cut jobs or raise prices in response to employer National Insurance contributions increasing in April 2025.

The effects of the chancellor’s Budget were also evident in S&P Global’s Purchasing Managers’ Index (PMI).

The index fell to an 11-month low in December and into contraction territory. Rob Dobson, director at S&P Global Market Intelligence, noted there were also sharp staffing cuts as some companies acted now to “restructure operations in advance of rises in employer National Insurance and minimum wage levels”.

Europe

Data paints a gloomy picture for the eurozone.

As expected, following an interest rate cut by the European Central Bank to boost the flagging economy, inflation across the eurozone increased. In the 12 months to December 2024, inflation was 2.4%.

Germany – the largest economy in the bloc – reported GDP falling 0.2% in 2024 when compared to the previous year, and it follows a decline of 0.3% in 2023.

According to an index from sentix, the challenges Germany is facing are negatively affecting investor morale across the eurozone. Indeed, investor confidence fell to a one-year low at the start of 2025. Germany is set to hold a snap general election in February, which could ease some of the uncertainty investors are feeling.

PMI figures from the Hamburg Commercial Bank fail to offer investors optimism.

While the eurozone service sector improved, it was still in decline at the end of 2024. In addition, the construction sector continues to contract and new orders fell markedly, suggesting that a recovery isn’t on the horizon.

US

Dominating the headlines in the US in January was the inauguration of Donald Trump, which took place on 20 January. Trump will serve a second term as US president and promised a “golden age” for America in his inaugural address.

In the first days of his presidency, Trump continued to make similar trade threats to those he made during his campaign. He suggested a 10% tariff on Chinese-made goods arriving in the US could be implemented as early as 1 February 2025. Trump also hinted that he was considering levies on imports from the EU, as well as a potential 25% tariff on the US’s two largest trading partners, Mexico and Canada.

According to the US Bureau of Labor Statistics, inflation increased to 2.9% in the 12 months to December 2024, up from 2.7% a month earlier. The inflation data could mean the Federal Reserve is less likely to cut interest rates in the coming months.

Indeed, on 13 January, Wall Street fell when it opened as traders expect interest rates to remain where they are.

Technology-focused index Nasdaq fell 1.3% and the S&P 500, which tracks the 500 largest companies listed on stock exchanges in the US, lost 0.8%. Pharmaceutical firm Moderna experienced the largest slump when share prices fell 24% after the company cut its outlook due to shrinking demand for its Covid-19 vaccine. 

Markets faced more turmoil on 27 January. The emergence of a low-cost Chinese AI model, DeepSeek, led to concerns about the sustainability of the US artificial intelligence boom.

According to Bloomberg, shares in US chipmaker Nvidia fell by 17% and erased $589 billion (£473 billion) from the company’s market capitalisation – the biggest in US stock market history.  

Other US technology giants saw share prices fall too. Microsoft, Meta Platforms and Alphabet, which is the parent company of Google, saw losses between 2.2% and 3.6%. AI server makers saw even sharper drops, with Dell Technologies and Super Micro Computer sliding by 7.2% and 8.9% respectively.

PMI data from S&P Global indicates business could pick up at the start of 2024. In fact, the service sector posted its biggest growth in output and new orders in December 2024 since May 2022. The jump was linked to firms anticipating more business-friendly policies under the Trump administration.

Asia

Threats of trade tariffs from the US in 2025 meant Chinese manufacturers rushed to fill orders at the end of 2024. Indeed, exports increased by 10.7% in December 2024 when compared to a year earlier, according to official customs data. With exports outpacing imports, China’s trade surplus was just under $1 trillion (£0.8 trillion) in 2024.

China’s National Bureau of Statistics also reported the economy hit its official target of growing by 5% in 2024.

Chinese manufacturer BYD could be on track to overtake US technology giant Tesla this year. BYD revealed it sold 1.76 million battery electric cars in 2024 falling only behind Elon Musk’s company, which sold 1.79 million. In fact, when including hybrid vehicles, BYD surpassed Tesla.

However, the new year didn’t start positively in the Chinese stock market. On 2 January, weak manufacturing data contributed to a sell-off of Chinese stock. The Chinese Stock Exchange fell by 2.7%, and the Chinese yuan also fell to a 14-month low against the US dollar.

Please note:

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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 cashflow model is a valuable tool that lets you understand how the value of your estate and individual assets might change in the future. But, to get the most out of it, you need to look beyond the numbers.

A cashflow model provides a graphical representation of all your assets, such as investments, property and pension, as well as income, expenditures and debt. It forecasts how each of these will change over time.

To start, you’ll need to input information into a cashflow model, such as the value of your assets now, your household spending, or how much you’re contributing to your pension.

To calculate long-term changes, you may need to make certain assumptions too. You might factor in regular wage increases or the projected returns of your pension. 

While the outcomes of a cashflow model cannot be guaranteed, it could provide you with a useful overview of your finances and how they might change throughout your lifetime.

With so much data, it’s easy to get bogged down in the numbers. Yet, moving past the figures could help you turn goals into reality and prepare for the unexpected.

Combining a cashflow model with your goals could help form an effective financial plan

A cashflow model provides a snapshot of your finances, and financial planning can help tie this to your goals.

When you think about why you’re saving through a pension, it’s probably the lifestyle you want to enjoy that comes to mind, rather than the figure you need to save.

So, you might think “I want to retire at 60 and maintain my current lifestyle” rather than “I want to save £500,000 in my pension”.

As a result, it’s important to think about what your lifestyle goals are when using a cashflow model if you want to get the most out of it. When you stop working, your outgoings often change, so in this scenario, you might calculate how much you’d need to maintain your current lifestyle.

You can then add this information to the cashflow model and see what would happen if you withdrew this income from your pension from the age of 60 – is there a chance your pension could fall short? Could you retire sooner and still be financially secure?

By combining your goals with a long-term view of your finances, you can work with your financial planner to create an effective financial plan that’s tailored to you.

A cashflow model could identify potential weaknesses in your current financial plan

As well as goals, your cashflow model can be used to help you address concerns you might have about your financial security and events outside of your control.

For example, if your family rely on your income, you might worry about how you’d cope financially if you were unable to work. Updating the information used to create the cashflow model could help you understand the short- and long-term impact.

You might find you have enough saved in an emergency fund to cover six months of expenses before you’d have to use other assets.  So, to create an additional safety net, you may take out appropriate financial protection that would begin to pay a regular income after six months.

Taking an extended break from work may affect long-term goals as well. You might halt pension contributions, which could affect your income when you reach retirement, or use savings that had been earmarked for another use.

Much like how a cashflow model could help you understand your goals, it can also be useful when you want to identify risks or weaknesses in your current financial plan.

A cashflow model could help you make informed financial decisions now

One of the benefits of cashflow modelling is that it may identify potential financial gaps that could affect your future. Being aware of these sooner often means you’re in a better position to take steps to bridge the gaps or adjust your plan.

Let’s say you discover there could be a potential shortfall in retirement because you aren’t contributing enough to your pension. If you identify this 20 years before you plan to retire, a small, regular increase to your contributions could be enough to keep you on track without making changes to your retirement plans. However, if you don’t realise until you reach the milestone, you may have fewer options.

Alternatively, if you find you’re in a better financial position than you expected, you might want to adjust your lifestyle now or update long-term plans.

After finding out you’re comfortably on track to have “enough” saved for retirement, you might decide to start building a nest egg for your child to provide a helping hand when they reach adulthood. If you’re confident in your financial future, you might also feel secure enough to increase your disposable income now and start doing more of the things you enjoy.

Contact us to talk about your long-term finances

Please get in touch if you’d like to talk about creating a long-term financial plan that focuses on your aspirations and addresses concerns you might have about the future.

Please note:

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. 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 performance.

The Financial Conduct Authority does not regulate cashflow planning.

While financial challenges often come up when those nearing retirement are asked about their concerns, emotional obstacles could be just as important. A financial plan might include looking at areas like your pensions and investments, but it could help you emotionally prepare for retirement as well.

Here are five ways a financial plan could improve your wellbeing and confidence when you retire.

1. Financial confidence could ease concerns when you retire

One of the key concerns that weighs on those nearing retirement is a financial one. According to This is Money in January 2025, more than half of over-55s fear they’ll run out of money later in life. Just a quarter of people believe they have enough to see them through retirement.

Worrying about running out of money could mean you’re not able to fully relax and enjoy your retirement. A financial plan could help you understand how you might create a sustainable income that will last a lifetime.

So, taking control of your finances before you give up work could improve your overall wellbeing and mean you feel far more prepared emotionally for taking the next step.

2. It provides a chance to consider what you’re looking forward to

A financial plan doesn’t just focus on your assets, but what you want to get out of life. A retirement plan is the perfect opportunity to consider what you’re looking forward to in retirement and address any apprehensions you might have.

You might start by setting out what your ideal week in retirement would look like – are you keen to see your family and friends more now you’re not working, or would you like to join a class to develop a hobby?

While you’re doing this, you might discover concerns as well. For example, some retirees may worry about feeling lonely if they enjoy the social aspect of work. As a result, they might ensure their retirement income provides enough disposable income to regularly go out with loved ones or try an activity that allows them to meet new people.

3. Financial security could mean you’re able to enjoy big-ticket expenses

It’s not just the day-to-day retirement lifestyle you might be looking forward to, there might be one-off experiences or purchases that you’d like to spend some of your money on.

If you love to explore new places, you might dream about taking an extended holiday to exotic locations now you’re no longer tied to work. Or, if you’re a keen gardener, you might want to explore purchasing an extra plot of land to turn into an outdoor oasis.

Whatever your big-ticket plans, incorporating them into your financial plan could help you understand what’s possible and get you excited for the future.

4. A financial plan could address retirement trepidations

Worrying about your future could dampen retirement celebrations. So, addressing these concerns and understanding how you might create a safety net could take a weight off your shoulders.

As you near retirement, you might worry about how your partner would cope financially if you passed away first, or how you’d fund care services if you needed support.

While a financial plan can’t prevent some things from happening, it could allow you to identify areas of concern and take steps to reduce the effect they could have. So, in the above cases, you might purchase a joint annuity with your pension so you know your partner would continue to receive a reliable income if you passed away and set aside some money to act as a care fund.

5. Working with a financial planner could allow you to take a hands-off approach

Managing your finances in retirement can be very different to handling your household budget when you are working. You might not receive a regular, reliable income, and, for retirees, the change can be difficult to manage or they simply want to take a hands-off approach.

Working with a financial planner means you can rely on someone else to handle your finances on your behalf and inform you if changes are needed.

It could lead to a happier retirement that allows you to focus on living the retirement lifestyle you’ve been looking forward to.

Contact us to talk about how to achieve your desired retirement lifestyle

If you’re nearing retirement, get in touch to talk about what you’re looking forward to and concerns you might have. We could work with you to create a financial plan that gives you confidence and means you’re able to focus on what’s really important – enjoying the next chapter of your life.

Please note:

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. 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 performance.

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. 

We’re only weeks into 2025, and it’s already been one filled with market volatility and uncertainty. At times like this, being part of a crowd might feel comforting, but following the investment decisions of others could lead to choices that aren’t right for you.

Political and economic uncertainty means investors may already have experienced the value of their investments falling this year. In fact, towards the end of January, you might have been affected by the value of US technology stocks falling sharply.

The sudden emergence of Chinese AI app DeepSeek, which rivals US AI technology at a fraction of the cost, led to some investors questioning whether the US’s dominance in the sector would continue.

According to the BBC, following the release, Nvidia, which makes chips for AI, saw share prices fall 17% on 27 January – the biggest single-day loss in US market history. The next day, the share price began to recover but remained significantly below where it had been the previous week.

It wasn’t only Nvidia that was affected either, many other US technology businesses experienced a fall in share prices. Indeed, the Nasdaq – a technology-focused US index – was down 3.5% when markets opened on 27 January.

With other investors seemingly selling off their US technology stocks, you might have been tempted to follow the crowd and do the same.

Market volatility can trigger herd instinct among investors

Herd instinct is a type of financial bias where people join groups to follow the actions of other people. When investing, it might mean you make similar investments to others or that you sell your investments when share prices fall. In fact, herd instinct at a large scale could lead to market crashes or create asset bubbles.

It’s easy to see why this happens. Being part of a crowd can offer a sense of comfort, especially during periods of uncertainty. In contrast, standing out from the crowd could mean you feel vulnerable or that you’re making a mistake by going against the grain.

So, following the crowd may feel like the sensible option. After all, if everyone else is doing it, it must be the right decision.

Yet, it’s not as straightforward as that. In fact, herd mentality could harm your long-term plans and wealth.

When following the lead of others, you might assume they’ve already carried out research, so you skip analysing the decision. The other investors could also be acting based on herd instinct or making a decision that’s right for them, but that doesn’t automatically mean it’s the right option for you.

3 useful strategies that could help you focus on your own path

While it can be difficult to not compare your investment decisions with those of others, remember, with different goals and circumstances a great investment for one investor isn’t right for another. 

So, here are three useful strategies that could help you focus on following your own investment path.

1. Develop a clear investment plan

One of the key steps to reducing the effect of herd mentality on your decisions is to have a developed investment plan. By outlining your objectives, you’re in a better position to understand the types of opportunities that are right for you.

If you have confidence in your investment strategy, you’re also less likely to be tempted to make changes. For example, if you know your investments are on track to provide “enough” to reach your long-term goals, taking additional risk for a chance to secure higher returns might not be as appealing.

As a financial planner, we can help you create an investment plan that provides you with a clear direction.

2. Diversify your investments in a way that reflects your plan

One of the challenges of investing is keeping emotions in check. You’re more likely to follow the crowd when the market or your investments face a sharp fall or rise. It might mean you feel uncertain about the investments you’ve chosen, so you start to look at what others are doing.

Diversifying won’t shield you from all market movements, but it could mean you’re less exposed to volatility. By investing in different asset classes, sectors, and geographical areas, when one part of your portfolio experiences a dip, it could be balanced by gains in another. As a result, it may mean the value of your investments is less likely to experience large fluctuations and limit knee-jerk decisions.

3. Be aware of your investment risk profile

All investments involve some risk. However, the level of risk can vary significantly.

So, understanding risk could mean you’re able to confidently pass by opportunities that you know involve more risk than is appropriate for you even if it seems like everyone else is investing in it.

Contact us to talk about your tailored investment strategy

If you’d like to talk about how to invest in a way that aligns with your goals and circumstances, please get in touch. We can work with you to create a tailored investment strategy that may give you confidence in the steps you’re taking.

Please note:

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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.

While you might intend to make your financial decisions based on facts, emotions creeping in from time to time is normal. Recognising when emotions might be influencing your judgement could mean you’re better able to evaluate what’s right for you.

Last month, you read about how past experiences could affect your decisions. Now, read on to find out how emotions could do the same.

Your emotions may affect how you respond to different situations 

Your emotional state can often affect how you feel about different situations.  This, in turn, can change how you respond to financial decisions.

In some cases, your emotions might mean your choices don’t align with your long-term goals. For example, if you’re fearful that you’ll lose money during a market downturn, you might be more likely to sell investments impulsively and turn paper losses into a reality.

It’s not just “negative” emotions that could harm your decisions either.

Emotions that you might normally view positively could be harmful when they influence your financial decisions. For instance, feeling excited might mean you’re more likely to overlook red flags or skip seeking further information because you’re keen to get started.

Giving yourself time could help you avoid emotional investing 

One of the simplest steps you can take to reduce the effect of emotions on your financial decisions is to give yourself some space and time.

Let’s say a friend is speaking to you about an opportunity they’ve come across and they’re encouraging you to invest. If you’re in a good mood and feeling confident, you might feel excited about the prospect of potential returns. But, if you’re already feeling anxious or down, you may be more likely to focus on the investment risks.

Giving yourself time to think through the different options could allow emotions to subside and present an opportunity to consider what’s driving your decision.

According to December 2024 research from the Financial Conduct Authority, rushing financial decisions is something many investors are guilty of at some point.

Indeed, two-thirds of investors aged between 18 and 40 spend less than 24 hours deciding on an investment, and 14% finalise their decisions in under an hour. Just 11% took more than a week to decide if an investment was right for them.

In many cases, rushing into a decision led to regret. 4 in 10 investors surveyed said they regret falling for investment hype. It’s likely emotions played a role in the initial decision that investors came to regret. For example, 32% said they feared missing out on a good opportunity and 26% were driven by the desire to feel good in the moment.

So, don’t rush into decisions but allow yourself at least a few days to carry out research, if necessary, consider the alternatives, and weigh up if it’s right for you.

Other steps could help you keep emotions out of your investment decisions too. You might:

• Set out a financial plan. Having clear goals to work towards and a better understanding of the type of investments that could be appropriate for your circumstances is often useful
• Focus on your long-term goals. This could reduce the chance of you reacting emotionally to short-term market movements 
• Diversify your investments. Spreading your money across multiple investment opportunities could mean you’re less exposed to market volatility and the emotions sharp rises or falls can cause.

While you can’t completely stop emotions affecting how you view different investment or financial opportunities, you can change how you respond to them. Taking steps like those above could mean you’re more in control and able to spot when emotions might be clouding your judgment.

Get in touch to talk about your financial plan

Working with a financial planner could help you reduce the impact emotions have on your financial decisions. Having an outside perspective may highlight when decisions don’t align with your goals or the financial plan you’ve previously set out.

If you’d like to arrange a meeting with one of our team, please get in touch.

Next month, check our blog to find out how biases could affect how you process financial information.

Please note:

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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.

Energy Saving Week is back from 17 January 2025. Throughout the week, the Energy Saving Trust will be working with organisations across the country to share tips on how you can reduce your energy bills and limit your carbon footprint.

If you’d like to take part, then keep reading to discover our best tips on how to boost your home’s energy efficiency this year.

More than 80% of homes built before 1930 are rated poorly for energy efficiency

A house’s energy efficiency is ranked on a scale from A (most energy efficient) to G (least efficient).

A government survey found that dwellings in England and Wales had a median energy efficiency rating in band D, and more than 80% of dwellings built before 1930 in England and Wales were rated in bands D to G.

Getting your home assessed for an Energy Performance Certificate (EPC) is one of the ways to know how energy efficient your house is, but chances are, there are at least a few improvements you could make to reduce your energy bill.

8 energy-saving tips to try in your home

If you want to reduce your energy bill or carbon footprint this year, read on to discover our eight top tips.

1. Switch off

One of the simplest tricks to reduce your energy consumption this winter is by turning appliances off when you aren’t using them.

Some common items you might want to switch off include:

• Kettle
• Lights
• Toaster
• Microwave
• Phone or laptop

Switching appliances off at the mains instead of leaving them in standby mode can help you reduce your amount of wasted energy.

2. Upgrade your appliances

Improving the energy efficiency of appliances you use frequently could help you cut down on your energy usage.

For example:

• LED bulbs use less energy than their halogen counterparts
• Cooking in an air fryer is cheaper than in an electric oven
• A heated drying rack uses less energy than an electric tumble dryer
• Replacing an inefficient shower head with a water-efficient one could save you money and water.

Switching out your appliances might only save you a few pounds each year, but that can add up quickly.

3. Update your heating controls

Your thermostat lets you set the desired temperature of your home, and once it reaches this temperature, it automatically turns the boiler off.

But many people fall for the common misconception that turning up your thermostat will heat your home faster when instead it is heating your home to a higher temperature at the same speed.

Setting a heating programmer to turn off the boiler while you aren’t home and to turn it back on 30 minutes before you usually return will ensure your house is always at a comfortable temperature as well as reduce your energy consumption.

4. Block draughts

One of the cheapest options for insulating your home is blocking any draughts that could be leaking heat into the atmosphere.

Applying draught-excluder strips to windows and filling in cracks in walls is inexpensive and relatively easy to do yourself.

If you have a fireplace you don’t use, it might also be worth investing around £65 in a chimney draught excluder.

5. Insulate your loft

Loft insulation is more expensive than draught excluders, but is one of the most cost-effective strategies for keeping your home warm.

Heat rises, so if your roof doesn’t have heat insulation, it can leak out into the cold atmosphere and waste energy.

Stone wool insulation costs around £10 per square metre and you can lay it down yourself like a blanket, so professionals aren’t necessarily required.

6. Fix exposed pipes

If you live in an oil-heated home, uninsulated pipes may be losing heat that could be used to warm your home rather than being lost to the atmosphere.

Insulating these exposed pipes is thankfully not an expensive process but can help you save up to 25kg of carbon dioxide a year.

7. Try solar panels

Solar panels use energy from the sun, even on cloudy days, to make electricity which could then be used to power your appliances without affecting your energy bill.

Installing a typical solar panel system could help you save around £300 and 950kg of carbon dioxide per year. You could even install batteries that would allow you to store energy during the daytime to use in the evening.

8. Invest in a heat pump

A standard air-source heat pump could help you get back four times more energy than you put in. For comparison, a modern gas boiler loses around 8% of the energy you put in to make heat.

The installation of a heat pump usually costs around £14,000, but the UK government offers grants of £7,500 to help you offset costs. This makes a heat pump an excellent option if you’re planning to stay in your house long term, and might increase your property’s value if you decide to move.

Political instability in Europe and further afield affected investment markets in December. Read on to find out what other factors may have influenced your investment returns at the end of 2024.

Remember to focus on your long-term goals when assessing the performance of your investments. The value of your assets rising and falling is part of investing. What’s important is that the risk profile is appropriate for you and that your decisions align with your circumstances and aspirations.

UK

Hopes that the Bank of England (BoE) would cut its base interest rate before the end of 2024 were dashed when data showed inflation had increased.

Figures from the Office for National Statistics show inflation was 2.6% in the 12 months to November 2024, which was up from the 2.3% recorded a month earlier.

This led to the BoE deciding to hold interest rates despite speculation that a cut was on the horizon. The central bank also said it expects GDP growth to be weaker at the end of 2024 than it had previously predicted.

Data paints a gloomy picture for the manufacturing sector.

According to S&P Global’s Purchasing Managers’ Index (PMI), UK manufacturing hit a nine-month low as output fell for the first time in seven months in November 2024. The decline was driven by new orders falling. Notably, manufacturers are struggling to export their goods, with new orders contracting for 31 consecutive months. Demand has fallen in key markets, including the US, China, the EU, and Middle East.

A survey from the Confederation of British Industry (CBI) indicates that manufacturers aren’t optimistic about the future either. The organisation said orders at UK factories “collapsed” in December to their lowest level since the height of the pandemic in 2020. The slump was linked to political instability in some European markets and uncertainty over US trade policy when Donald Trump becomes president.

Chancellor Rachel Reeves wants to reduce UK trade barriers with the US, stating she wanted to end the “fractious” post-Brexit accord as she went to meet eurozone finance ministers at the start of the month. Closer ties with the EU may benefit some firms that are struggling with exports.

Retailers are also experiencing challenges.

The festive period is often crucial for retailers. Yet, data from Rendle Intelligence and Insights are “bleak” with footfall in the first two weeks of December down 3.1% when compared to 2023. A slew of high street names entered administration in 2024, including Homebase, The Body Shop, and Ted Baker, and the research suggests more could follow suit in the year ahead.

December was a month of ups and downs for investors in the UK stock market.

The month started strong when stock markets increased across Europe on 3 December – dubbed a “Santa rally” in the media. The FTSE 100 – an index of the 100 largest firms on the London Stock Exchange – was up 0.7% despite worries about the economic outlook. EasyJet led the way with a 4% boost.

Yet, just mere weeks later, on 17 December, the FTSE 100 hit a three-week low and lost 0.7%. The biggest faller was Bunzl, a distribution and outsourcing company, which fell 4.6% when it warned persistent deflation would weigh on profits in 2024.

While it might have felt like a bumpy year as an investor, research shows the FTSE 100 has performed well. Indeed, according to AJ Bell, the index had its best year since 2021 and delivered a return of 11.4%. The top performers were NatWest and Rolls-Royce, while JD Sports and B&M were at the bottom of the pack.

Europe

Much like the UK, the manufacturing sector in the eurozone is struggling. Indeed, PMI data shows the sector continued to contract in November 2024 as new factory orders fell. Germany recorded the fastest drop in output and, as the bloc’s largest economy, could drag economic data down.

Dr Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, told the Guardian: “These numbers look terrible. It’s like the eurozone’s manufacturing recession is never going to end.”

Credit ratings firm Moody’s unexpectedly downgraded French government bonds, which are now rated Aa3 – the fourth highest rating – following the collapse of Michel Barnier’s government. MPs had refused to accept tax hikes and spending cuts in Barnier’s Budget.

Moody’s said: “Looking ahead, there is now very low probability that the next government will sustainably reduce the size of fiscal deficits beyond next year. As a result, we forecast that France’s public finances will be materially weaker over the next three years compared to our October 2024 baseline scenario.”

The news, unsurprisingly, led to French bonds weakening.

European markets also benefited from the so-called Santa rally on 3 December.

Germany’s DAX, a stock index of the 30 largest German companies on the Frankfurt Exchange, broke the 20,000-point barrier for the first time, despite a new election being called after the government collapsed. The recent boost means the DAX increased by around 3,000 points during 2024.

Similarly, Paris’s stock market index, the CAC, gained 0.6%. Luxury goods makers, like Hermes and LVMH, were among the biggest risers.

US

Unlike Europe, US manufacturing could give investors something to be optimistic about.

The PMI reading for November 2024 was 49.7, up from 48.5. While this means the sector is still below the 50-mark indicating growth, the signs suggest it’s stabilising and could move into more positive territory in the new year.

The service sector paints an even better picture. The PMI indicated the sector is growing at its fastest pace since the Covid-19 pandemic. Expectations of higher output linked to growing optimism about business conditions under the Trump administration led to a flash PMI reading of 56.6 for December, comfortably placing the sector in growth territory.

The job market also bounced back after disappointing figures in October. According to the US Bureau of Labor Statistics, 227,000 jobs were added to the economy in November, compared to just 36,000 a month earlier.

Yet, inflation continues to weigh on the US. In the 12 months to November 2024, inflation increased slightly to 2.7%.

While the Federal Reserve went ahead with an interest rate cut, taking the base rate to 4.25%, it also suggested it would make fewer cuts than expected in 2025 if inflation remains stubborn. The comments led to the S&P 500 index closing almost 3% down, while the tech-focused Nasdaq fell 3.6% on 19 December.

President-elect Trump is set to take office on 20 January 2025, but his plans are already influencing markets. Indeed, on 2 December, the dollar rallied after Trump warned countries in the BRICS bloc that he would impose 100% tariffs if they challenged the US dollar by creating a new rival currency.

The BRICS bloc was originally composed of Brazil, Russia, India, China, and South Africa, which led to the acronym. They have since been joined by Iran, Egypt, Ethiopia, Saudi Arabia and the United Arab Emirates.

Asia

In a move that shocked citizens, South Korea’s president declared martial law on 3 December, which led to political chaos. The uncertainty led to South Korea’s currency dropping to a two-year low and exchange-traded funds (ETFs), which track the country’s shares, fell sharply. Indeed, the MSCI South Korea EFT dropped by more than 5% in the immediate aftermath.

Outside of South Korea, stock market performances were more positive in Asia.

On 9 December, Hong Kong’s Hang Seng was up by 2% after China said it would implement a more proactive fiscal policy and planned to loosen monetary policy in 2025. The market was also aided by consumer inflation in China falling to a five-month low in November to 0.2%.

On the same day, Japan revised its economic growth upwards, leading to a 0.3% boost to the Nikkei 225 index.

Please note:

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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.

When creating an estate plan, there might be people you want to pass wealth to but they’re not in a position to manage their finances. Using a trust could provide a way to leave a vulnerable loved one assets and feel confident they’ll be effectively managed.

Trusts aren’t used as commonly as other ways to pass on wealth, such as gifting or leaving an inheritance directly. In fact, according to government figures, there were only around 733,000 trusts and estates registered on the Trust Registration Service as of March 2024. Yet, in some circumstances, a trust could present a valuable option.

There are many reasons why you might consider someone vulnerable or not want to pass on assets directly to them. You might consider using a trust if you want to pass on wealth to:

• A child
• A person at risk of financial abuse
• Someone who has made poor financial decisions in the past
• An adult who has a disability that affects their ability to manage finances.

A trust may allow you to improve the financial security of loved ones without them being responsible for managing assets.

A trust means someone you choose can manage assets on behalf of beneficiaries

A trust is a legal arrangement that you (the settlor) set up where assets are managed by a person or people (the trustee) for the benefit of one or multiple other people (the beneficiary).

So, while the beneficiary may benefit from the assets, it’s the trustee who will manage them. As the settlor, you can set out how and when you want the assets, and any income they generate, to be used.

For instance, if you want to pass on wealth to your grandchild, you might name their parents as trustees. You could state money may be withdrawn from the trust to cover educational costs and, once the child turns 25, they can withdraw and take control of the remaining assets.

Or, if you want to provide for a disabled adult, you might create a trust that states the trustee is to provide the beneficiary with a regular income for the rest of their life.

Crucially, as the settlor, you can set the terms of the trust so that it suits your goals.

You should note that there are several different types of trust and, once set up, it can be difficult or impossible to reverse the decisions you’ve made. So, seeking professional legal advice if you think a trust could be an option for you may be valuable.

3 important questions to consider if you’re thinking of using a trust

Before you set up a trust, it’s important to consider if it’s the right option for you. Here are three essential questions that may help you start to weigh up the pros and cons.

1. Who would act as the trustee?

Choosing someone to act as a trustee can be difficult, so you might want to consider who you’d ask.

You want a person you can trust to act in line with your wishes and in the best interest of the beneficiaries. However, you may also want to think about the skills they have – are they comfortable handling finances? Are they organised enough to manage the trust effectively?

You can choose more than one trustee, and set out whether you’d like them to make decisions together. You may also choose a professional to act as a trustee, such as a solicitor or financial planner, who would charge a fee for their services.

2. What would be the aim of the trust?

Thinking about the reasons for creating a trust is essential, as it might affect the type of trust that’s right for you and the terms you set out.

For example, a trust that’s simply holding assets until a certain date could be very different from one you want to use to preserve family wealth for future generations.

In some cases, you might find that an alternative option is better suited to your needs.

Let’s say you want to set money aside for your grandchild to access when they turn 18. A Junior ISA (JISA) allows you to save or invest up to £9,000 in 2024/25 tax-efficiently on behalf of a child. The money held in a JISA is locked away until they reach adulthood. So, it might be more appropriate and avoid the complexity a trust may add.

3. How much control would you give the trustee?

If you have a clearly defined idea about how you want the trust to operate, you might choose to set out exactly when the assets can be used. Alternatively, you may give more control to your trustee and allow them to use their judgment.

There isn’t a right or wrong answer, so focusing on what’s important to you is key.

When setting out terms or restrictions, you may want to spend some time weighing up different scenarios and the effect they might have.

For instance, if you want the trust to provide a defined income, you might want to consider:

• How the trustee should adjust the income for inflation
• Whether they can withdraw a lump sum in certain circumstances
• If there is a point you want the beneficiaries to take control of the assets.

Rigid restrictions could have unintended consequences.

Let’s say your loved one has an opportunity to purchase a property. Withdrawing a lump sum to act as a deposit could mean their day-to-day costs fall and provide greater security when compared to renting, but restrictions might mean this isn’t possible. Or if they face a medical emergency, accessing the wealth held in a trust could enable them to receive treatment quicker or provide more options.

Contact us to talk about your estate plan

A trust is often just a small part of an effective estate plan. If you’d like to discuss how you might pass on wealth to loved ones in a way that aligns with your goals and considers your wider financial plan, please get in touch.

Please note:

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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.

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