putting-life-on-hold

For many life has been put on hold during the cost of living crisis, some are delaying having children, buying homes, or retirement. Take a look at our latest magazine packed full of financial advice and actionable tips to help you get the most out of life.
This edition is packed full to help the self-employed. those planning their retirement, those retired who are returning to work, the cost of living crisis and inheritance tax.
About Tudor Franklin IFA

Tudor Franklin was established by Richard Meats and Bharat Chudasama, with a vision for a professional financial planning and advice service that can provide clear value to our clients at any stage in their financial life. With over 25 years joint experience advising clients on such matters as investments, pensions, inheritance tax planning and protection, we pride ourselves on being professional and delivering advice in a clear and understandable way.
financial advice financial advisers retirement inheritance tax pension retire save TAX invest PLAN
This edition is packed full to help the self-employed. those planning their retirement, those retired who are returning to work, the cost of living crisis and inheritance tax.
About Tudor Franklin IFA

financial advice financial advisers retirement inheritance tax pension retire save TAX invest PLAN
INHERITANCE TAX 
RECEIPTS REACH £6.1BN
What if I could make my  
wealth more tax-e!icient?
CASH MAY 
NOT BE KING
Deciding whether to withdraw  
cash from your pension pot
NAVIGATING THE  
HIGHER!RATE TAX FREEZE 
Minimising the impact on your 
personal "inances
COST#OF#LIVING CRISIS DELAYS HOMEOWNERSHIP,  
HAVING CHILDREN AND RETIREMENT
SEPTEMBER/OCTOBER 2022
PUTTING LIFE  
ON HOLD
Welcome to our latest edition. Rising living costs 
have been so signi!icant in recent months that most 
UK households will have noticed a squeeze on their 
monthly budgets. Not only does this have a direct 
impact on people’s lifestyles, even though they are 
making every e!fort to cut back, but it has a knock-
on e!fect on their lifelong goals such as owning 
a home or retiring comfortably. On page 07 new 
research highlights millions of people across the UK 
fear that the long-term impact of today’s rising living 
costs could see their life goals delayed or even 
missed altogether.
Inheritance Tax receipts totalled £6.1 billion in the 
2021/2022 tax year, up £729 million on the year prior. 
This 14% increase marks the largest single-year rise in 
Inheritance Tax receipts since the 2015/2016 tax year. 
The increase is the result of the ongoing freeze on the 
nil-rate Inheritance Tax band and residence nil-rate 
Inheritance Tax band has had. On page 05 we look at 
why making plans for Inheritance Tax is so important.
Choosing what to do with your pension is a big 
decision. On page 08 we explain how by making the 
wrong decision it could cost you heavily in the form of 
an unwanted tax bill, eventually running out of money 
in retirement and even a tax credits and bene!its 
overpayment. So before you do anything, take a look 
at what you should consider.
If you’re a higher-rate taxpayer, the freeze on the 
Income Tax threshold will have meant an increase in 
your tax bill. The reason for the increase stems from 
the chancellor’s decision in April 2021 to freeze the 
higher-rate tax threshold rather than increase it in 
line with in!lation. With in!lation running at a 40-year 
high, pay increases will mean more people are being 
pushed into the higher-rate tax bracket. Read the 
article on page 34.
A full list of the articles featured in this issue  
appears opposite.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION 
LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS 
FROM, TAXATION ARE SUBJECT TO CHANGE.
THE VALUE OF INVESTMENTS MAY GO DOWN AS WELL AS UP, AND YOU MAY 
GET BACK LESS THAN YOU INVESTED.
INSIDE 
THIS ISSUE
SEPTEMBER /OC TOBER  2022
The content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety 
and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date 
it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their 
particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance 
Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you 
may get back less than you invested. Past performance is not a reliable indicator of future results. The Financial Conduct Authority does not regulate tax advice, estate planning, or Will writing.
CONTENTS
04
SELF!EMPLOYED EXTREMELY 
VULNERABLE TO LOSS OF INCOME
81% aren’t seeking !inancial advice
05
INHERITANCE TAX  
RECEIPTS REACH £6.1BN
What if I could make my wealth  
more tax-e"icient?
06
GREAT WEALTH TRANSFER 
Preparing both ‘the family’ and ‘the 
money’ for the transition of wealth to the 
next generation
07
PUTTING LIFE ON HOLD
Cost-of-living crisis delays homeownership, 
having children and retirement
08
CASH MAY NOT BE KING
Deciding whether to withdraw cash  
from your pension pot
10
ARE YOU SAVING ENOUGH  
FOR RETIREMENT? 
One in six over-55s have no pension 
savings yet
11
BRINGING PENSIONS TOGETHER
What to consider if you have multiple 
pension pots
12
HOW TO PROTECT YOU AND YOUR 
FAMILY’S FUTURE 
What kind of protection insurance do 
you need?
14
BRIDGING THE GENDER PENSIONS GAP
Women left with half the pension pot, no 
matter the job
READY TO TALK ABOUT 
YOUR FUTURE PLANS?
Only by recognising and meeting your distinct 
requirements can we have a positive impact on 
your life and business. This is why we provide 
an extensive range of services, plus the ability 
to tailor solutions based on your speci!ic needs. 
If you would like to discuss your concerns or 
requirements, please contact us. We hope you 
enjoy reading this issue.
CONTENTS
16
UNRETIREMENT
More over-50s returning to work amid cost-of-
living crisis
17
COST!OF!LIVING CRISIS
Britons cutting back on food and entertainment 
to keep cars on the road
18
FUNDING THE LIFESTYLE YOU WANT
Get your retirement plans in motion
20
IT’S GOOD TO TALK
More young adults are more engaged about 
money with their parents than past generations
21
A HEALTHIER APPROACH  
TO RETIREMENT WEALTH
Pension schemes have a critical role to play in the 
transition to a net zero economy
22
HEALTH, WEALTH AND HAPPINESS OF A 
NATION
Overall wellbeing still not close to being back to 
levels seen pre-COVID
23
TEN TIPS FOR FIRST!TIME INVESTORS
Ready to get started on your  
investment journey?
24
WHEN SHOULD I STOP WORKING?
How to tell whether you’re ready to retire
26
NEVER TOO EARLY TO PLAN AHEAD
Pension savers struggling to save enough for 
their later years
27
BANK OF GRANDMA AND GRANDAD 
Older generation using the wealth held in their 
property to help younger generations
28
MIND THE RETIREMENT GAP
4 out of 5 workers not saving at levels which are 
likely to deliver an acceptable standard of living 
in old age
29
REEVALUATING THE ROLE OF WORK
Preparing your !inances for a career break 
30
LATER!LIFE AND FINANCIAL WELLBEING
More than one-million over-60’s are rethinking 
later life plans
32
PENSION BOOSTER 
Mistakes to avoid when you’re aiming to build 
your pot
34
NAVIGATING THE HIGHER!RATE  
TAX FREEZE
Minimising the impact on your  
personal !inances
Being self-employed also means you don’t 
have the luxury of having an employer 
to rely on for sickness cover or health 
insurance, which can make you extremely 
vulnerable to loss of income or unexpected 
!inancial shocks.
WITHOUT A REGULAR INCOME
So if you’re self-employed, it’s essential you’re 
prepared for anything by having the right 
protection in place. According to new research, over 
half (57%) of self-employed workers in the UK rely 
on personal savings when they are not working, yet 
a worrying 81% aren’t seeking !inancial advice[1].
Being self-employed can o#er numerous 
bene!its, such as !lexible hours and the 
opportunity to work with a wide range of people, 
but self-employed workers can also face !inancial 
vulnerability. Over two-thirds (64%) of those who 
are self-employed in the UK revealed they are 
without a regular income, with just one in !ive 
(23%) receiving a monthly pay packet.
OWNING A BUSINESS
The research also found that almost half 
(48%) of self-employed people see their 
income !luctuate as a result of owning their 
own business, with a similar proportion (49%) 
putting this down to being a freelancer, 
contractor or consultant.
As the cost of living rises and private rents in 
the UK increase at the fastest rate in !ive years, 
a quarter (24%) of those surveyed said they 
only had enough money to cover such costs for 
three months if they were unable to work.
VULNERABILITY TO FINANCIAL SHOCKS 
With the research highlighting the group’s 
vulnerability to !inancial shocks and the 
importance of expert !inancial advice, one in 
three (31%) of those surveyed don’t think they 
can a#ord professional advice, while one-quarter 
(24%) say they hadn’t thought about seeking 
professional !inancial advice.
Not being eligible for Statutory Sick Pay 
(SSP) can prove a real problem for the 
self-employed and their !inancial resilience 
– during the pandemic, a !ifth (21%) of all 
applications to the Test and Trace Support 
Payment scheme were from this group, 
according to a Freedom of Information 
request by The Community Union.
SECURE FINANCIAL PROTECTION 
And while many have taken steps to secure 
!inancial protection for themselves and their 
families, 13% of self-employed workers in the UK 
still don’t have critical illness cover or life insurance.
Of these respondents, just under a third (31%) 
said these forms of protection aren’t a !inancial 
priority, one in four (25%) said they were prepared 
to risk not being covered, while a similar amount 
said they didn’t require these policies (27%) or 
couldn’t a#ord them (24%). 
Source data:
[1] The research was carried out online by 
Opinium Research across a total of 2,002 UK 
adults (Booster sample of 502 self-employed 
workers and 1,015 Renters). Fieldwork was carried 
out between 21!27 October 2021.
81% AREN’T SEEKING FINANCIAL ADVICE
Self-employed people are at risk of "inancial hardship if they don’t have su"icient 
provision in place. Without a regular income, it can be di"icult to cover expenses 
and also save for the future. In many cases, the self-employed are unable to claim for 
many of the bene!its that employees are entitled to, including statutory sick pay.
HOW CAN I PROTECT MY  
INCOME WHEN I’M SELF EMPLOYED?
When you’re self-employed or a contractor, 
you get the perk of being your own boss, but 
you wave goodbye to traditional employee 
bene!its like company sick pay. Getting 
income protection is one step you could 
take to provide a !inancial safety net if you’re 
unable to work because of illness or injury. 
To !ind out more, get in touch.
SELF$EMPLOYED EXTREMELY 
VULNERABLE TO LOSS OF INCOME
04  FINANCIAL PLANNING
WHAT IF I COULD MAKE MY WEALTH MORE TAX$EFFICIENT?
We all want to leave a legacy and make sure the ones we care about most are 
well taken care of when we’re gone. That’s why making plans for Inheritance 
Tax is so important, to have con!idence that your children, grandchildren and 
those you hold dearest will be taken care of long into the future.
Inheritance Tax is a tax on the estate of 
someone who has passed away. The 
standard Inheritance Tax rate is 40% in the 
current 2022/23 tax year. Your estate consists 
of everything you own. This includes savings, 
investments, property, life insurance payouts 
(not written in an appropriate trust) and 
personal possessions. Your debts and liabilities 
are then subtracted from the total value of 
your assets.
PASSING ON YOUR MAIN  
RESIDENCE TO DIRECT RELATIVES 
Every person in the UK currently has an 
Inheritance Tax allowance of £325,000 (frozen 
until April 2026). This is known as the nil-rate 
band (NRB). In 2017, an extra allowance was 
introduced to make it easier to pass on your 
main residence to direct relatives (i.e. a child or 
grandchild) without incurring Inheritance Tax. 
This allowance is currently £175,000, known as 
the residence nil-rate band (RNRB), and is on top 
of the standard nil-rate band of £325,000.
A tapered withdrawal applies to the RNRB 
when the overall value of an estate exceeds  
£2 million. The withdrawal rate is £1 for every  
£2 over the £2 million threshold.
ALLOWED TO USE BOTH  
TAX!FREE ALLOWANCES
If you are married or in a registered civil 
partnership, you are allowed to pass on your 
assets to your partner Inheritance Tax-free 
in most cases. The surviving partner is then 
allowed to use both tax-free allowances. 
Provided the !irst person to pass away leaves 
all of their assets to their surviving spouse, the 
surviving spouse will have an Inheritance Tax 
allowance of £650,000 (£1 million if they are 
eligible for the RNRB).
According to recent !igures released by HM 
Revenue & Customs (HMRC), more estates in 
the UK are now paying Inheritance Tax than 
ever before[1].
PAYING INHERITANCE TAX UNEXPECTEDLY
Inheritance Tax receipts totalled £6.1 billion in 
the 2021/2022 tax year, up £729 million on the 
year prior. This 14% increase marks the largest 
single-year rise in Inheritance Tax receipts 
since the 2015/2016 tax year. The increase is 
the result of the ongoing freeze on the nil-rate 
Inheritance Tax band and residence nil-rate 
Inheritance Tax band. 
Many more families are !inding the total 
value of their estate – driven by a rapid growth 
in house prices, savings and other assets – is 
likely to be above £1million at the point of 
death, meaning many more estates could end 
up having to pay Inheritance Tax unexpectedly.
START CONVERSATIONS  
WITH YOUR LOVED ONES 
In the 2019/20 tax year, there were 23,000 
such deaths, up 4% on the year prior[1]. Given 
this data only covers to the start of the 
pandemic, this number is likely to have risen 
considerably over the past couple of years as 
asset prices grew.
With many more estates likely to be  
subject to an Inheritance Tax bill, it remains 
important that you have a conversation with 
your loved ones sooner rather than later 
so that you all fully understand your estate, 
the value of it and the potential to pay an 
Inheritance Tax bill.
SAVE YOUR FAMILY  
THOUSANDS OF POUNDS 
When discussing your Will and any potential 
Inheritance Tax liability, there are things that 
can be put into place to mitigate or reduce a 
future payment. 
That’s why planning for Inheritance Tax is a 
fundamental part of !inancial planning. It could 
potentially save your family thousands of pounds 
in Inheritance Tax payments when you die and 
ensure that your wealth is preserved for future 
generations.  
Source data:
[1] https://www.gov.uk/government/statistics/
inheritance-tax-statistics-commentary/inheritance-
tax-statistics-commentary
THE FINANCIAL CONDUCT 
AUTHORITY DOES NOT REGULATE TAXATION 
AND TRUST ADVICE AND WILL WRITING. 
TRUSTS ARE A HIGHLY COMPLEX 
AREA OF FINANCIAL PLANNING.
INFORMATION PROVIDED AND ANY 
OPINIONS EXPRESSED ARE FOR GENERAL 
GUIDANCE ONLY AND NOT PERSONAL TO 
YOUR CIRCUMSTANCES, NOR ARE INTENDED 
TO PROVIDE SPECIFIC ADVICE. 
TAX LAWS ARE SUBJECT TO CHANGE AND 
TAXATION WILL VARY DEPENDING
ON INDIVIDUAL CIRCUMSTANCES.
WHAT WILL YOUR  
LEGACY LOOK LIKE?
We understand every situation is unique. We’ll 
help you to identify any speci!ic issues and 
recommend the changes needed to help you 
meet your long-term wealth protection goals in 
the most tax-e"icient manner. To !ind out more, 
please speak to us.
INHERITANCE TAX 
RECEIPTS REACH £6.1BN
INHERITANCE TAX  05
PREPARING BOTH ‘THE FAMILY’ AND ‘THE MONEY’ FOR THE 
TRANSITION OF WEALTH TO THE NEXT GENERATION
If you want to pass wealth on to your children and grandchildren, it’s wise to 
contemplate when it might be best to make that gift. Should you transfer wealth 
during your lifetime—or after? 
Some people may !ind compelling reasons 
to avoid giving away wealth during 
their lives. They think that transferring 
substantial portions could mean they might not 
have enough to maintain their lifestyles; their 
bene!iciaries might not use the wealth wisely, or 
at least in a way they’d want it used; and wealth 
might end up outside the family because of a 
child’s divorce or other misfortune.
SENSITIVE TOPIC 
Understandably, money can be a sensitive topic 
even among the closest of families. But you will 
have a better chance of passing on assets tax-
e"iciently in a way which is acceptable to all family 
members if you discuss and plan how to do this. 
There are a number of considerations to take 
into account when deciding when the best time 
is to transfer wealth to your family. These include 
your age, the age of your bene!iciaries, the value 
of your estate, the types of assets involved, tax 
implications and your personal circumstances.
NEXT GENERATION
Transfers made during your lifetime may be 
subject to Inheritance Tax, depending on the 
value of the assets involved. Gifts made more 
than seven years before your death are usually 
exempt from Inheritance Tax. Also the value of 
assets can change over time, so it’s important 
to consider this when making a transfer. For 
example, property values can go up or down, and 
investments can become more or less valuable.
Your personal circumstances will also play 
a role in deciding when to make a transfer. 
For example, if you need access to the money 
yourself, then it may not be the right time to 
transfer wealth to your family. Alternatively, if 
you’re looking to pass on your business to the 
next generation, then you’ll need to consider 
when is the best time for them to take over.
Here are four important considerations 
that should be a part of any family wealth 
transfer plan:
Age: One key factor to consider is your age. 
If you are younger, you may have more time 
to accumulate assets and grow your estate. 
However, if you are older, you may want to 
consider transferring wealth sooner rather than 
later in order to maximise the amount that can 
be passed on to your bene!iciaries.
Age of Bene"iciaries: Another key consideration 
is the age of your bene!iciaries. If they are young, 
they may not need the money immediately 
and it can be used to help them further their 
education or buy a property. However, if they 
are older, they may need the money to support 
themselves in retirement.
Value of Estate: The value of your estate is 
another important factor to consider. If your 
estate is large, you may want to consider 
transferring wealth sooner rather than later 
in order to minimise Inheritance Tax liabilities. 
However, if your estate is small, you may not 
need to worry about Inheritance Tax and can 
a#ord to wait until later in life to transfer wealth.
Types of Assets: The types of assets involved 
in the transfer of wealth are also important 
to consider. If the assets are liquid (such as 
cash or investments), they can be transferred 
immediately. However, if the assets are illiquid 
(such as property), it may take longer to 
transfer them.
ADHERING TO THE FAMILY’S  
VALUES AND VISION
Taking all of these factors into account will help 
you decide when the best time is for you to 
transfer wealth to your family, but it’s important 
to discuss wealth transfer with them sooner 
rather than later to maximise your options.
Families must overcome many hurdles to 
ensure their wealth is protected and continues 
to accumulate over the generations while still 
adhering to the family’s values and vision. 
THE FINANCIAL CONDUCT 
AUTHORITY DOES NOT REGULATE TAXATION 
AND TRUST ADVICE AND WILL WRITING. 
TRUSTS ARE A HIGHLY COMPLEX 
AREA OF FINANCIAL PLANNING.
INFORMATION PROVIDED AND ANY 
OPINIONS EXPRESSED ARE FOR GENERAL 
GUIDANCE ONLY AND NOT PERSONAL TO 
YOUR CIRCUMSTANCES, NOR ARE INTENDED 
TO PROVIDE SPECIFIC ADVICE. 
TAX LAWS ARE SUBJECT TO CHANGE AND 
TAXATION WILL VARY DEPENDING
ON INDIVIDUAL CIRCUMSTANCES.
 IS IT TIME WE HAD A TALK ABOUT 
FAMILY WEALTH TRANSFER?
Transferring wealth to the next generation 
is an ongoing process – and it is extremely 
important to keep talking as a family. Making 
a decision about when to transfer wealth 
to your family is also a personal one. It’s 
important to seek professional advice to 
make sure that you’re making the best 
decision for your circumstances. To discuss 
your family wealth transfer plans, please 
contact us.
GREAT WEALTH TRANSFER 
06  INHERITANCE TAX
COST$OF$LIVING CRISIS DELAYS HOMEOWNERSHIP, 
HAVING CHILDREN AND RETIREMENT
Rising living costs have been so signi"icant in recent months that most 
UK households will have noticed a squeeze on their monthly budgets. 
Not only does this have a direct impact on people’s lifestyles, even though 
they are making every e#ort to cut back, but it has a knock-on e#ect on 
their lifelong goals such as owning a home or retiring comfortably.
PUTTING LIFE ON HOLD
Millions of people across the UK fear that 
the long-term impact of today’s rising 
living costs could see their life goals 
delayed or even missed altogether, according 
to new research[1]. Almost two-thirds (64%), 
the equivalent of 33 million people across the 
country, are concerned about the future due to 
the current state of their !inances.
TACKLING RISING EXPENSES 
Households are tackling rising expenses by 
turning o# the heating (48%), reducing their 
grocery spend (37%) and even driving their 
vehicles less (24%). However, over half of UK 
adults (56%) feel they have already done 
everything they can to save money, while 
savings have also taken a hit. Nearly a third 
(30%) no longer have a ‘savings bu#er’ to cover 
unexpected costs.
More than nine million potential homeowners 
– 48% of all people planning to purchase a home 
– now estimate they will need to delay this goal, 
with almost a !ifth (18%) of this group expecting it 
will need to be delayed by !ive years or more. 
WEDDING DREAMS DELAYED
An additional 12% of prospective homeowners 
now don’t ever think they will own a home due 
to greater !inancial pressures. Dreams of getting 
married (7.2 million potential brides and grooms 
– 47%) and even parenthood (50% of those who 
plan to have a/another child – 6.8 million people) 
have also been delayed as a result.
FUTURE FINANCIAL SUPPORT 
Parents who hoped to provide future !inancial 
support for their children are cutting back or 
scrapping their plans. Almost two in !ive (39%) 
people who planned to set a lump sum aside for 
their children now think they will have to delay this. 
Almost a !ifth (16%) do not see themselves ever 
being able to help out their children as a result, 
while 39% of people who had planned to give 
their children a deposit on their home now say 
they will delay this. Almost one in four of these 
parents (23%) say they will never be able to fund 
their children’s deposit. 
LONG!TERM GOALS
Longer term, 45% of people who had dreams 
for retirement anticipate that they will have to 
put them on hold. This is the equivalent of over 
11 million people across the UK and includes 
38% of people in the crucial decade before 
retirement who expect to delay retirement by 
at least a year, if not more. More than one in 
ten (12%) of people think they are never likely 
to retire. 
Despite current challenges having such a 
fundamental impact on people’s long-term goals, 
half of UK adults (52%) haven’t sought guidance 
or support to better understand how to tackle 
their money woes. Those that have looked for 
help most commonly turn to price comparison 
websites (19%), their family (15%) or the news 
(12%). Only 7% (3.9 million people) have sought 
out professional !inancial advice.
PRESSURE ON FINANCES 
One way to help ease the pressure on household 
budgets is to make sure that people are getting 
all the bene!its and tax credits they are entitled 
to. There are a number of government schemes 
available which can help with things like childcare 
costs, housing costs and council tax. Make sure 
you are claiming everything you are entitled to 
by checking the government’s website.
Another way to ease the pressure on your 
!inances is to make sure you are getting the best 
deal on your essential bills. This includes things 
like your energy bills, your water bill and your 
broadband package. There are a number of 
comparison websites which can help you to !ind 
the best deals. It is also worth speaking to your 
current providers to see if they can o#er you a 
better deal. 
Source data:
[1] Opinium survey of 4,001 UK adults 
was conducted between 27!31 May 2022 for 
Legal & General.
HEADING OFF DIFFICULTIES 
LATER DOWN THE LINE
Life is becoming una#ordable for many people 
due to the cost-of-living crisis. Obtaining 
professional !inancial advice is invaluable, 
especially when navigating more complicated 
!inancial situations, such as retirement. Seeking 
the right help now could head o# di"iculties 
later down the line.
FINANCIAL PLANNING  07
DECIDING WHETHER TO WITHDRAW  
CASH FROM YOUR PENSION POT
Choosing what to do with your pension is a big decision. If you’ve been 
saving into a de!ined contribution pension (sometimes called ‘money 
purchase’) during your working life, from age 55 (age 57 in 2028) you need 
to decide what to do with the money you’ve saved towards your pension 
when you eventually decide to retire. 
CASH MAY 
NOT BE KING
///  B E FO R E  YO U  TA K E 
ANY  C A SH  OUT  OF  YOUR 
PENSION ,  YOU  NEED  TO 
CA LC U L AT E  H OW  M U C H 
MONEY  YOU  AC TUALLY 
NEED.  DO  YOU  NEED  A 
LU M P  S U M  O F  C A S H  A L L 
AT  O N C E ? I F  S O,  W H AT  A R E 
THE  TAX  IMPLIC ATIONS?
08 RETIREMENT
However, making the wrong decision 
could cost you heavily in the form of an 
unwanted tax bill, eventually running out 
of money in retirement and even a tax credits 
and bene!its overpayment.
So before you do anything, there are things you 
should consider. Note: this article doesn’t cover 
pension schemes where the pension you’ll be 
getting is worked out as a proportion of your pay. 
HOW MUCH MONEY DO  
YOU NEED TO RETIRE?
Before you take any cash out of your pension, you 
need to calculate how much money you actually 
need. Do you need a lump sum of cash all at once? 
If so, what are the tax implications? Or would you be 
better o# with a regular income stream? 
Remember that retirement could be 30 to 
40 years, or more. As well as what you’ll need to 
cover everyday living expenses, do you have any 
speci!ic plans for your retirement, such as regular 
holidays or enjoying a hobby? Or are you thinking 
of any big one-o# purchases or expenditure, like a 
new car or home improvements? Once you know 
how much money you need, you can start to look 
at your options.
WHAT ARE THE TAX IMPLICATIONS?
Taking cash out of your pension can have tax 
implications if you withdraw more than your tax-free 
element (typically 25% of your pension). You can 
leave the rest invested until you decide to make 
more withdrawals or set up a regular income. 
However, you need to make sure you 
understand those implications before you make 
any decisions. Otherwise, you could end up with 
a signi!icant  tax bill that you weren’t expecting.
WHAT ARE THE FEES?
When you retire and start taking money out of 
your pension, you may be charged fees by your 
pension provider. Some pension providers will 
charge a fee for each withdrawal you make, while 
others may charge a !lat rate or percentage of 
your pension pot. 
There may also be other charges, such as an 
administration fee. Taking money out of your 
pension will also reduce the amount of income 
you have in retirement, so it’s important to think 
carefully before you decide to take any money 
out of your pension pot.
HOW LONG WILL THE MONEY LAST?
Consider how long you’ll need the money to last. 
If you take a lump sum of cash, it’s likely that it 
won’t last as long as if you take an income. This is 
something to keep in mind when you’re making 
your decision.
WHAT IF YOU NEED MORE MONEY LATER?
If you take cash out of your pension now, it may 
not be there if you need it later on in life. This 
is something to consider if you think you may 
need more money down the line. Even if you’ve 
seen the value of your pensions fall that doesn’t 
necessarily mean that you’ll have to delay your 
retirement altogether. 
Could you take less from your pension savings 
until their value recovers, and use other savings 
instead to bridge the gap? And could you put o# 
any big purchases you’d planned?
WHAT ARE THE RISKS?
Taking cash out of your pension comes with risks. 
There’s the risk that you could outlive your money, 
or that the value of your pension could go down. 
You need to make sure that you understand all of 
these risks before you make a decision.
OPTIONS FOR USING YOUR DEFINED 
CONTRIBUTION PENSION IN RETIREMENT
   Keep your pension savings where they are – 
and take them later.
   Use your pension pot to buy a guaranteed 
income for life or for a !ixed term – also known 
as a ‘lifetime’ or ‘!ixed term annuity’. The income 
is taxable, but you can choose to take up to 25% 
(sometimes more with certain plans) of your pot 
as a one-o# tax-free lump sum at the start.
   Use your pension pot to provide a !lexible 
retirement income – also known as ‘pension 
drawdown’. You can take the amount you’re 
allowed to take as a tax-free lump sum 
(normally up to 25% of the pot), then use the 
rest to provide a regular taxable income.
   Take a number of lump sums – usually the !irst 
25% of each lump sum withdrawal from your pot 
will be tax-free. The rest will be taxed as income.
   Take your pension pot in one go – usually the 
!irst 25% will be tax-free and the rest is taxable.
   Mix your options – choose any combination of 
the above, using di#erent parts of your pot or 
separate pots. 
UNDERSTANDING THE DIFFERENT OPTIONS
This is a very complicated topic and choosing what 
to do with your pension is one of the most important 
decisions you’ll ever make and will impact on your 
future standard of living in retirement.
Worryingly, over a third (35%) of pension 
holders do not know about the di#erent options 
available to them for when the time comes to 
retire, according to research[1]. 
Source data:
[1] Online omnibus conducted by Opinium 
in June 2021 for LV – 4,000 representative UK 
adults surveyed nationally.
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). 
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.
TAX TREATMENT VARIES ACCORDING TO 
INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT 
TO CHANGE.
THINKING ABOUT ACCESSING  
YOUR PENSION POT?
These are just a few things to consider 
before taking cash from your pension pot. 
As you approach retirement, it’s essential to 
understand what your options are and obtain 
professional advice, otherwise you could end 
up making a decision that you regret later 
on. For more information or to review your 
options, please contact us.
RETIREMENT  09
ONE IN SIX OVER$55s HAVE NO PENSION SAVINGS YET
Despite the fact that the government has been trying to encourage people 
to save for their retirement through initiatives such as auto-enrolment, there 
are still too many Britons who have no pension savings at all. Research reveals 
that a !ifth (20%) of people still have no pension savings at all, and people nearing 
retirement aren’t doing much better[1].
Even prior to the cost-of-living crisis there 
have been a number of reasons why this 
might be the case. For some people, they 
simply may not be aware of the need to save for 
retirement. Others may not have enough spare 
income to put into a pension pot after covering 
their essential living costs.
MORE COMFORTABLE
However, the most common reason is people 
believe they will have plenty of time to start saving 
later on in life. But this is not the case. Even if you 
are in your 20s or 30s, it is never too early to start 
saving for retirement. The sooner you start, the 
more time your money will have to grow.
Findings also highlight the fact that one in 
six people (16%) who are within sight of their 
retirement still have no private pension savings, and 
consequently are missing out on the opportunity to 
make their life after work more comfortable. 
ALARMING NUMBER 
At least 17% of people in the UK aged 55 and over 
admit to having no pension savings (other than 
the State Pension), which is only slightly better 
than the average for Britons as a whole – 21% of 
whom say they have no private pensions.
What this research shows is that an alarming 
number of people are e#ectively ‘sleepwalking’ 
towards their retirement without adequate 
preparations. But, there are signs that as people 
grow older, they are becoming aware that a lack 
of pension savings is a problem – though perhaps 
not quickly enough. 
PENSION DEFICIT 
The issue is most visible among adults aged 
under 35. Nearly a quarter (24%) of this group 
claim to have no pension savings at all, despite 
being a generation to bene!it from auto-
enrolment into workplace pensions. After 35 this 
drops to one in !ive, and then to one in six for the 
over-55s. Clearly, people do start to save more as 
retirement draws nearer, even if they have missed 
out on the opportunity to save over many years.
Lack of pension savings is a particular issue for 
those not in full-time employment. Encouragingly, 
just 8% of respondents who worked full time said 
they had nothing in their pension. But among 
part-time workers this !igure was one in four 
(24%), indicating that part-timers face a potential 
pension de!icit when they retire. 
WORRYING STATISTIC 
The people worst a#ected tend to be those not 
currently working at all – whether because they 
are unemployed or because they are full-time 
parents. Nearly 60% of this group said they had 
no pension savings. Where this is because of 
full-time parenthood, the parent in question may 
be relying solely on their partner’s pension in 
later life. This is a risky strategy, both because that 
pension may not be enough for both of them, 
and because of the risk of relationship break-up.
Another worrying statistic highlights that one 
in !ive people simply don’t know how much they 
have in their pension savings. Curiously, this 
uncertainty grows rather than shrinks as people 
get older: while 14% of under-35s are unsure, this 
rises to 22% between the ages of 35 and 54, and 
then to 24% among the over-55s.
SUBSTANTIAL INCOME
It may be the case that many of those who think 
they have no pension savings are wrong, and that 
they do have pension pots from previous jobs 
(or even their current job) that they don’t know 
about. The !irst step for anyone who thinks they 
are pension-less is to contact the government’s 
Pension Tracing Service and search through their 
previous employers to see if they were ever a 
scheme member.
However, some people will reach the age of 
55 (the earliest age that someone can access 
pension pots) and !ind that they genuinely have 
no pension savings. But this isn’t a reason to give 
up and assume it’s too late. Although a person 
close to retirement has a lower chance of saving 
enough to provide a substantial income, pensions 
can help your money to go a lot further. 
Source data:
[1] Survey by Unbiased and Opinium of 2,000 
non-retired UK adults, conducted June-July 2020.
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). 
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.
READY TO DESIGN YOUR RETIREMENT?
There are a number of ways you can save 
for retirement, such as through a workplace 
pension or a personal pension. So if you 
haven’t started, now is the time to do so. It 
may seem like a long way o#, but the sooner 
you start saving, the better prepared you will 
be for your future. If you would like to discuss 
your situation or concerns you may have 
about a pension shortfall, please contact us.
ARE YOU SAVING  
ENOUGH FOR RETIREMENT? 
10  RETIREMENT
WHAT TO CONSIDER IF YOU HAVE MULTIPLE PENSION POTS
The employment landscape has evolved signi"icantly over the last few 
decades and changing jobs multiple times before retirement is now very much 
the norm. But did you know, there is an estimated £9.7 billion of unclaimed UK 
de!ined contribution pension funds?[1].
Over time, it is easy to lose touch 
with pension savings providers as 
we change jobs, move home and 
the companies we have worked for change 
ownership or close down. 
All these events over time may make it very 
di!!icult to !ind your valuable pension savings. 
So that means potentially ending up with a 
number of di!ferent pension pots. If you’re one 
of the millions of people with multiple pensions, 
it may be appropriate to consider consolidating 
your de!ined contribution pension pots and 
bring them together. 
NUMBER OF DIFFERENT PENSIONS 
Even if you have not had many jobs, you could 
still have a number of di#erent pensions to keep 
track of. If appropriate, pension consolidation can 
simplify your !inances and make it easier to keep 
track of your retirement savings.
Having said this, not all pension types can or 
should be transferred. It’s important to obtain 
professional advice so you know and can 
compare the features and bene!its of the plan(s) 
you are thinking of transferring.
WHAT IS PENSION CONSOLIDATION?
Pension consolidation is the process of 
combining multiple pension pots into one single 
pot. This can be done with a pension transfer 
or by opening a new pension and transferring 
your other pensions into it. You may want to 
do this to make it easier to keep track of your 
retirement savings, or to try and get a better 
rate of return on your investment.
But there are a few things to consider before 
consolidating your pensions, such as any exit 
fees that may be charged, and whether or not 
you will lose any valuable bene!its such as 
guaranteed annuity rates.
CONSOLIDATING YOUR PENSIONS
REASONS WHY YOU MIGHT WANT TO 
CONSOLIDATE YOUR PENSIONS
Simplify your "inances: If you have multiple 
pension pots, it may be di"icult to keep track 
of them all. Consolidating your pensions into 
one pot could make it easier to manage your 
retirement savings.
Save on fees: If you have multiple pensions with 
di#erent providers, you may be paying multiple 
annual fees. Consolidating your pensions may 
help you save money on fees.
Get better investment options: Some pension 
providers o#er a limited number of investment 
options. By consolidating your pensions it could 
give you access to a wider range of investments.
REASONS WHY YOU MAY NOT WANT TO 
CONSOLIDATE YOUR PENSIONS
Loss of valuable bene"its: One key 
disadvantage is that you may lose out on 
valuable bene!its that are speci!ic to certain 
pension schemes. For example, some schemes 
may o#er better death bene!its than others, so 
consolidating your pensions into one pot could 
mean giving up this valuable protection.
Paying higher fees: Another potential downside 
is that some schemes may have higher charges 
than you are actually currently paying, which 
means you would end up paying higher fees. 
This is something that needs to be carefully 
considered before making any decisions.
More di#icult to access: It’s important to 
remember that once you consolidate your 
pensions, it may be more di"icult to access them 
early if you need the money for an emergency. 
This is something that should be taken into 
account when making any decisions about 
pension consolidation.
LOCATE YOUR PENSION FUNDS
If you think you might have lost a pension 
pot from a previous job, you can use the 
government’s Pension Tracing Service at www.
gov.uk/!ind-pension-contact-details.This enables 
people to locate  money previously saved for 
retirement, that is unclaimed. So, it is worth 
checking if you could have pension funds that 
have not been claimed. 
Finally, one thing you also need to bear in 
mind is that pension savings are big targets 
for fraudsters. If someone contacts you 
unexpectedly o#ering to help you transfer your 
pot, it’s likely to be a scam. If you’re concerned, 
contact the Financial Conduct Authority (FCA) to 
check they’re legitimate. 
Source data:
[1] https://www.pensionspolicyinstitute.org.uk/
media/2855/201810-bn110-lost-pensions-"inal.pdf
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). 
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.
BRINGING PENSIONS TOGETHER
NEED PROFESSIONAL ADVICE  
TO HELP MAKE YOUR DECISION?
You only have one retirement so you don’t 
want to make a costly mistake with your 
pensions that you could one day regret. 
Before you look to bring your pensions 
together, it’s essential to obtain professional 
advice. For more information about how we 
can assist you through this complex process, 
please contact us to discuss your situation. 
RETIREMENT  11
HOW TO PROTECT  
YOU AND YOUR 
FAMILY’S FUTURE
WHAT KIND OF PROTECTION INSURANCE DO YOU NEED?
There are various complex risks in life that we all face, such as serious illness, an accident 
or death. What would happen if something were to happen to you? Would your family be able to 
cope !inancially with the impact an unexpected event might have? 
12  PROTECTION
These are not easy questions to ask but it is 
important to consider what would happen 
if an unexpected event or accident took 
place, and how you could protect your family from 
the !inancial e#ects of serious illness or death.
BIG PART IN OUR LIVES
Deciding what your priorities are and 
understanding what options you have  
are key parts of the protection planning 
process. This helps you ensure that you  
have the !inancial protection most suitable for 
your circumstances.
Every family is di#erent, but they often play 
a big part in our lives. It’s important to think 
about how we can protect them against the 
unexpected as best we can.
PROTECTION FOR THE UNEXPECTED
LIFE INSURANCE
Death is an unpredictable event, so it’s important 
to make sure you have the right level of cover in 
place. The amount of life insurance you need will 
depend on your individual circumstances. There 
are many good reasons to take out a policy. For 
example, if you have dependents who rely on 
your income, then life insurance can provide 
!inancial security for them if you die.
There are di#erent types of life insurance 
available, so choosing the right policy for your 
needs is key. Term life insurance provides cover for 
a set period of time, while whole of life insurance 
covers you for your entire life. You can also choose 
between level term insurance, which pays out 
a !ixed amount if you die during the term of the 
policy, and decreasing term insurance, which pays 
out less as the policy progresses.
There is also a variation on the basic 
term assurance theme that is often worth 
considering as it can reduce the cost of cover. 
Family Income Bene!it is a policy with a sum 
assured that reduces uniformly over time but 
provides regular payments of capital on the 
death of the breadwinner (the life assured).
If you have any debt, such as a mortgage, then 
it’s also important to take out life insurance to 
make sure that this is paid o# if you die. This will 
give your loved ones peace of mind and prevent 
them from being burdened with debt.
INCOME PROTECTION INSURANCE
There are a number of reasons why income 
protection insurance should be a part of your 
protection planning. Firstly, it can help to protect 
your income if you are unable to work. This 
could be due to an illness, injury or disability that 
means you are unable to work. It can help to 
cover the costs of your everyday living, such as 
your mortgage or rent, bills and food.
If you do not have su"icient protection in place 
this may mean you have to rely on your savings, 
or on the help of family and friends. Income 
protection insurance is especially important if you 
are self-employed or have a family to support. If 
you are unable to work, your income protection 
policy will provide you with a replacement 
income so that you can continue to meet your 
!inancial obligations.
There are di#erent types of income protection 
insurance policies available, so you should 
obtain professional !inancial advice to ensure 
you can compare the di#erent options and fully 
understand the terms and conditions of the policy.
CRITICAL ILLNESS COVER
If you become seriously ill or are diagnosed with 
a speci!ied critical illness, even if you are still able 
to work, critical illness cover could provide you 
with a !inancial safety net. It can help to pay for 
treatment, to make adaptations to your home or 
lifestyle, provide an income for your family if you 
are unable to work or other costs associated with 
your illness. 
In some cases, it may even pay out a lump 
sum if you die as a result of your condition. 
The tax-free money from the policy could be 
used to help cover the cost of treatment, make 
adaptations to your home or lifestyle or provide 
an income for your family.
There is no guarantee that you will not 
experience a critical illness during your 
lifetime, so it is important to have this type 
of cover in place. It will give you the peace 
of mind of knowing that you and your family 
are !inancially protected if the worst were to 
happen. Critical illness cover is not a substitute 
for health insurance. 
INCOME PROTECTION INSURANCE PLANS 
HAVE NO CASH IN VALUE.
IF PREMIUMS ARE NOT MAINTAINED COVER 
WILL LAPSE.
NEED A HELPING HAND FOR  
YOU AND YOUR LOVED ONES?
Do your children, partner or other relatives 
depend on your income? Many families 
would have to cut their living costs in 
order to survive !inancially in the event of 
the main breadwinner falling ill or dying 
prematurely. If you are unclear on your 
protection requirements, we are here to 
explain your options. Please contact us for 
more information.
/// IF YOU BECOME 
SERIOUSLY ILL AND 
ARE DIAGNOSED WITH 
A SPECIFIED CRITICAL 
ILLNESS, EVEN IF YOU 
ARE STILL ABLE TO WORK, 
CRITICAL ILLNESS COVER 
COULD PROVIDE YOU WITH 
A FINANCIAL SAFETY NET.
PROTECTION  13
14  RETIREMENT
BRIDGING  
THE GENDER 
PENSIONS GAP
WOMEN LEFT WITH HALF THE 
PENSION POT, NO MATTER THE JOB
We’ve all heard about the gender pay gap, but very few 
discuss the gender pensions gap, despite the fact so many 
women experience it. Women’s pensions at retirement are 
half the size of men’s, regardless of the sector they work in, new 
research has highlighted[1]. 
RETIREMENT  15
The gender pension gap is the percentage 
di#erence in income between men’s and 
women’s pensions and it begins at the 
very start of a woman’s career.
LONG!TERM FINANCIAL IMPACT 
The research found that every single industry 
in the UK has a gender pensions gap, 
even those dominated by female workers. 
Considering women are likely to live four 
years[2] longer than men, this issue deepens 
as they need to have saved around 5% to 7% 
more at retirement age. 
Worryingly, more than a third (38%) of women 
who have taken a career break were not aware of 
the long-term !inancial impact it would have on 
their pension.
THREE KEY INDUSTRIES
According to the research, the gender pensions 
gap exists regardless of average pay across 
di#erent sectors, and ranges from a gap of 59% in 
the healthcare industry, to 13% in courier services. 
The healthcare (59%), construction (51%), 
real estate/property development (48%), 
pharmaceutical (46%), aerospace, defence 
and government services (46%), and senior 
care (45%) sectors were found to have the 
largest gender pensions gaps. Of these six 
sectors, three are key industries for female 
employment – healthcare, pharmaceuticals 
and senior care[3].
LOWER PENSIONS CONTRIBUTIONS
There are many reasons for the gender 
pensions gap, ranging from women holding 
fewer senior positions and being paid less, 
resulting in lower pensions contributions, to the 
fact they are more likely to take career breaks 
due to caring responsibilities. 
Of those that have taken a career break, 38% 
did not know the !inancial impact it had on their 
pension contributions[4].
GENDER CONFIDENCE GAP 
Another potential driver is a signi!icant gender 
con!idence gap when it comes to managing 
pension pots. More than a quarter (28%) of 
women said they had con!idence in their 
ability to make decisions about their pension, 
compared to almost half (48%) of men[5]. 
This lack of con!idence extends further to 
other !inancial decisions, with women less 
likely than men to feel con!ident managing 
their investments (22% of women versus 41% of 
men), and their savings (56% of women versus 
67% of men).
WHILE MANY FACTORS BEHIND THE GENDER 
PENSION GAP ARE OUT OF MOST PEOPLE’S 
CONTROL, THERE ARE SOME ACTIONS YOU 
CAN TAKE TO HELP REDUCE IT:
Contribute as much as you can to your 
pension - and start early. Compound interest 
remains hugely underrated and poorly 
understood by both some men and women.
Check the charges on your historic pension 
pots. If appropriate, see if consolidating your 
pots will bring them down.
Check how much your State Pension will 
be and when you’ll get it. If it’s not going to 
support your ideal lifestyle, plan how you’ll 
cover any shortfall.

Put a bit more into your pension whenever 
you get a pay rise.

Talk through your pension planning with 
your partner. Make sure you know about 
each other’s saving plans, contribution limits 
and that you are both on the same page.
Keep a regular eye on your pension to make 
sure you’re in full control of it and saving for 
your ideal future.
Source data:
[1] The analysis is based on LGIM’s proprietary 
data on c.4.5 million de"ined contribution 
members as at 1 April 2022 but does not take 
into account any other pension provision the 
customers may have elsewhere.
[2] ONS: Life expectancy at birth in the UK: 82.9 
years for women vs 79 years for men; O#ice for 
National Statistics, 2018 – 2020. Average four years.
[3] According to the ratio of female members 
across the Legal & General book of business.
[4] Legal & General Insight Lab survey of 2,135 
workplace members was conducted between 
4!26 July 2022.
[5] Opinium survey of 2,001 UK adults was 
conducted between 4!8 February 2022.
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). 
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. 
NEED ADVICE TO CLOSE THE  
GENDER PAY GAP IN YOUR PENSION?
Women often have disrupted work patterns, 
career gaps and work part-time – this can 
impact their ability to save consistently for 
retirement without savings gaps. If you are 
concerned about your retirement plans and 
would like to review your pension options, 
please contact us . We look forward to 
hearing from you. 
/// THERE ARE MANY 
REASONS FOR THE GENDER 
PENSIONS GAP, RANGING 
FROM WOMEN HOLDING 
FEWER SENIOR POSITIONS 
AND BEING PAID LESS, 
RESULTING IN LOWER 
PENSIONS CONTRIBUTIONS, 
TO THE FACT THEY ARE 
MORE LIKELY TO TAKE 
CAREER BREAKS DUE TO 
CARING RESPONSIBILITIES. 
16  RETIREMENT
But the cost-of-living crisis is now a#ecting 
some pensioners drastically, with more 
older people starting to return to work 
amid the ongoing crisis, new research has 
highlighted[1]. The !indings identi!ied economic 
activity levels among the over-50s are now at 
their highest since the pandemic began.
IMPACTING PENSIONS 
Analysis of o"icial statistics appears to show the 
!irst signs of a return to the long-term trend of 
more economically active people over the age 
of 50 – a decades-long trend which, it said, was 
reversed by the pandemic.
Spiralling in!lation and turbulent !inancial 
markets impacting pension funds are causing 
some people to unretire and !ind work again. 
There has been an increase in economic activity 
(those in work or looking for work) of 116,000 
among the over-50s in the past year. More than 
half of the increase is being driven by men over 
the age of 65.
RETIRING COMFORTABLY 
In some ways, the pandemic forced the hands 
of many and gave them an opportunity to trial 
retirement. An early retirement can often seem 
like a dream when you’re stuck in the thick of 
the daily grind but, for many, giving up work 
abruptly can also result in a loss of structure, 
social connections and purpose, which can leave 
people feeling lost at times.
The current economic climate means that 
some people who thought they could retire 
comfortably during the pandemic are now 
having to unretire and !ind work again to bring 
in some extra income and top up their pensions 
while they still can. 
Source data:
[1] Analysis by www.restless.co.uk – Economic 
activity levels amongst people over the age 
of 50 hit their peak of just over 11 million 
just before the pandemic in the three-month 
period from December 2019 – February 2020. 
Since then, we have seen a decades-long 
trend reverse, with economic activity levels of 
workers aged over 50 falling by as much as 
223,000 during the pandemic.
UNRETIREMENT
MORE OVER$50s RETURNING TO WORK AMID COST$OF$LIVING CRISIS
Older workers have been leaving the jobs market in their droves over the 
past two years, partly due to many re-evaluating what they want from their lives 
and careers during the course of the COVID$19 pandemic, and also due to the 
devastating impact the pandemic had on the prospects for many older jobseekers, 
who felt they had no choice but to leave the workforce. 
WANT TO DISCUSS HOW TO MAKE  
YOUR MONEY WORK FOR YOU?
If you’re getting ready to retire, or maybe 
you’ve already retired, now may be a good 
time to think about professional !inancial 
advice. It can take some of the worries out 
of retirement planning and ensure your 
money will go further. So if you have any 
concerns about your retirement, we can help 
make your money work for you. To talk to 
us, please contact us – we look forward to 
hearing from you.
FINANCIAL PLANNING  17
As the cost-of-living crisis continues to 
exacerbate pressure on households 
across the UK, what this research shows 
are some of the measures that consumers are 
having to take just to keep their cars on the road.
PURCHASING CHEAPER ITEMS 
While you could make an active decision to 
purchase cheaper items at the supermarket, 
when it comes to fuel, options are limited, 
meaning cutbacks have to be made in other 
areas on households that are already stretched in 
many cases.
Instead, consumers are cutting back in other 
areas to continue to do essential trips like drive to 
work, run errands and visit the supermarket. The 
research highlights how habits at the pump have 
changed in response to the cost-of-living crisis.
DEMAND FOR ENERGY 
More than a third (34%) of consumers now need 
to stop !illing up at an exact value and 26% rarely 
!ill their tanks to the brim as they can’t a#ord 
to do so. Almost a quarter (23%) are using their 
savings to put fuel in their cars and 22% are using 
credit cards.
Fuel prices have increased sharply because 
the price for crude oil, which is used to make 
petrol and diesel, has gone up. Crude oil was 
cheaper at the beginning of the COVID$19 
pandemic, because many businesses temporarily 
closed and demand for energy collapsed.
FUEL MORE EXPENSIVE
As life returned to normal, the demand for energy 
increased. But suppliers have struggled to keep 
up and prices have risen. Another problem is 
that the oil used to make petrol is paid for in US 
dollars. The pound has been weak against the 
dollar, making fuel even more expensive.
Despite fuel prices dipping slightly in recent 
weeks, the !indings show the extent to which 
consumers are still having to cut back to ensure 
they can a#ord to get from A to B, with more 
than eight in ten (83%) more concerned about 
their !inances than they were a year ago. 
DRIVERS FORCED TO CUT BACK IN THE 
FOLLOWING WAYS:

46% are eating out less

35% are either spending less on their food 
shopping or have switched supermarket to 
save money

34% now have to stop !illing up at a speci!ic 
value as they know exactly what they can 
a#ord

31% are cutting down on the volume 
and quality of food they buy from the 
supermarket

26% now rarely !ill their fuel tanks to the brim 
as they cannot a#ord it

25% have cut back on gym memberships 
and subscription services

24% are reducing spend on school trips, 
days out and weekends away

23% are using their savings to pay for fuel

22% need to use their credit card to cover 
the cost of fuel

21% have stopped putting money aside in 
either a savings account or pension pot
STAYING MUCH CLOSER TO HOME
The research found that 28% of consumers 
also had to change their staycation plans 
during the summer months and stayed much 
closer to home, thanks to the high cost of 
fuel. Furthermore, and with one eye on the 
expectation that the cost-of-living crisis will 
only get worse, 18% said they decided to go on 
holiday this summer, as it could be their last one 
for many years. 
Source data:
Fieldwork was undertaken between 21!22 
July 2022 for Nationwide Building Society.  The 
survey was carried out online by Censuswide. 
Censuswide abides by and employs members of 
the Market Research Society, which is based on 
the ESOMAR principles. 
COST$OF$LIVING CRISIS
BRITONS CUTTING BACK ON FOOD AND 
ENTERTAINMENT TO KEEP CARS ON THE ROAD
Soaring petrol costs pushed in"lation to its highest level for 40 years. New 
research has uncovered the impact of these high fuel prices on consumers as more 
than a third (35%) are spending less on food to keep their car on the road[1]. 
NAVIGATING THE  
COST!OF!LIVING CRISIS
Whether you need retirement and pensions 
advice, support with estate planning, would 
like to invest for children or achieve other 
goals, or have concerns about dealing with 
the cost-of-living crisis, we’re here to help. To 
!ind out more, please contact us.
18  RETIREMENT
FUNDING THE 
LIFESTYLE  
YOU WANT
GET YOUR RETIREMENT PLANS IN MOTION
One of the most common concerns among those approaching retirement is 
whether they will have enough money to last them. A new study[1] shows that only 
25% of retirees feel very con!ident they’ve saved enough for retirement. 
RETIREMENT  19
As food prices continue to soar and petrol 
costs reach an all-time high in the UK, 
the rising cost of living is without doubt 
having an impact on many people’s !inancial 
plans, both short and long term. 
If you’re approaching retirement or have already 
started taking money from your pension or other 
retirement savings, you wouldn’t be alone in feeling 
a little anxious about the e#ect the cost-of-living 
crisis might have on your lifestyle in retirement.
While it’s impossible to predict the future with 
complete certainty, there are a few things you 
can do to feel more con!ident about spending 
your money in retirement.
ADD UP ALL YOUR SOURCES OF INCOME
Your main source of retirement income may 
well be your pension plan. But when it comes 
to planning your !inances in retirement, it’s 
important to think beyond this. Consider other 
potential sources such as Individual Savings 
Accounts (ISAs) and other investments, as well 
as any rental income you receive from rental 
properties you let.
And don’t forget the State Pension, which is 
currently £185.15 a week (£9,628 a year) for a single 
person with a full entitlement. Although the State 
Pension’s annual increase is currently below in!lation, 
every little helps and the total of all your savings and 
income might add up to more than you think.
WATCH OUT FOR UNNECESSARY TAX BILLS
Paying too much tax in retirement is a common 
pitfall for some retirees, and one that could be 
potentially avoided with having the right plans 
in place.
If you’re already taking or plan to take income 
from multiple sources, you need to consider how 
that will be taxed. When and how you take your 
money can make a big di#erence to how much 
tax you pay and how long it will last. Taking money 
little and often could make all the di#erence when 
it comes to reducing your tax bill.
When it comes to your pension savings, you 
can typically take 25% tax-free from age 55 (age 
57 in 2028), either in one go or spread out over 
a longer period. After this, any money you take 
from your pension savings, as well as your State 
Pension, is taxable just like any other income. 
That means you’ll need to pay income tax on 
anything over your tax-free cash limit and any 
annual personal Income Tax allowance you get.
It’s likely that the more money you take, the 
more tax you’ll have to pay, although how much will 
depend on which tax band your income falls into. 
So if you take all of your pension savings at once, 
or in big lump sums, you could be paying more 
tax than you need to. But by taking your pension 
savings over a number of years and taking just 
enough to stay in the lowest tax band you can, you 
could keep more of your money overall.
MAKE THE MOST OF YOUR INDIVIDUAL 
SAVINGS ACCOUNT (ISA)
Another way to avoid an unnecessary tax bill is 
to make the most of your ISA savings. You don’t 
pay tax on any investment growth or interest you 
earn, or on the proceeds you take from an ISA. So 
it’s a very tax-e"icient way to save.
You could consider using any ISA savings 
you have !irst and delay accessing your pension 
savings, giving them more time to stay invested 
and potentially grow in value. Remember though, 
the value of all investments can go down as well 
as up, and you may get back less than you paid in.
Or, if you’ve already started taking an income 
from your pension, you could use your ISA savings 
to supplement that income. This could allow you 
to take smaller payments from your pension and 
avoid overpaying Income Tax on them.
Getting to grips with tax implications can be a 
bit overwhelming as there’s a lot to consider. Tax 
rules and legislation can change, and personal 
circumstances and where you live in the UK also 
have an impact on your tax treatment. On top of that, 
tax varies for other sources of income like property, 
state bene!its, or even your salary if you’re planning 
on working in some capacity for a little longer.
KEEP TRACK OF YOUR INVESTMENTS
Where your money is invested could have 
the biggest impact on how long it will last in 
retirement. It’s important to regularly review your 
investments to make sure they remain on track 
and remain aligned with your plans and attitude 
to investment risk.
For example, your pension savings may be 
invested in fairly high-risk funds that have the 
potential to grow signi!icantly in value, but also 
are more likely to be impacted, particularly during 
periods of market volatility. Moving to lower-risk 
investments means that you’re less likely to see big 
ups and downs in the value of your pension savings.
However, if you’re relying on your pension 
savings to provide you with a comfortable income 
for the rest of your life, you also need to make 
sure that your investments will provide enough 
growth potential. This is particularly important in 
the current climate where your money faces the 
double challenge of rising in!lation and potentially 
having to last for many years. 
Source data:
[1] Class of 2022 UK retirement report 
consumer research of 2,000 UK adults for abrdn 
who were either planning to retire in the next 12 
months, or who had retired in the 12 months prior. 
Research was conducted by Censuswide in late 
November / early December 2021.
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). 
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.
TAX TREATMENT VARIES ACCORDING TO 
INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT 
TO CHANGE.
WANT TO REVIEW YOUR  
RETIREMENT PLANS?
If you have speci!ic questions about funding 
your retirement lifestyle, or if you’re feeling 
anxious about spending money in retirement, 
speak to us to discuss your options.
20  FINANCIAL PLANNING
The survey shows that families are 
becoming more comfortable talking 
about money, and that children are 
becoming more interested in learning about 
personal !inance.
VALUE OF MONEY 
There are many reasons why families might 
choose to have these conversations with 
their children. For one, it can help teach them 
the value of money and how to manage it 
responsibly. It can also help them understand the 
family’s !inancial situation and make informed 
decisions about their own future.
It’s clear that more and more families are !inding 
value in talking about money with their children. 
And that’s a good thing for everyone involved.
UNCOMFORTABLE CONVERSATION
As a nation we have historically seen money as 
an uncomfortable conversation, but times are  
changing. Talking about money matters openly 
when growing up can help children and young 
adults prepare themselves for dealing with 
!inances once they leave home or start work. 
Younger adults are signi!icantly more likely 
to have talked about money matters with their 
parents when growing up compared to the 
generations that went before them.
SAVINGS HABITS
Three in four (76%) 18$24-year-olds spoke to their 
parents about money matters when they were 
growing up. This compares to just 43% of those 
65 or over, 52% of 55$64-year-olds and 58% of 
45$54-year-olds.
Parents who talk to their children about money 
could make them more likely to be aware of 
considerations around day-to-day spending, as 
well as the need for longer-term savings habits.
LOWER INCOMES
The research also reveals that those in lower 
income households are least likely to have talked 
about money with their parents when growing 
up. Just over half (54%) of those in households 
with an annual income of less than £20,000 
talked about money with their parents as a child. 
This compares to 62% of people in households 
that earn between £40,000 to £59,000.
Those who now have an annual household 
income of over £100,000 a year are most likely 
to have spoken with their parents about money 
as a child (68%). 
Source data:
[1] Royal London commissioned research 
agency Cicero/amo to undertake a nationally 
representative survey (by age, gender and 
region) of 3,042 adults in the UK. Fieldwork was 
conducted between 13!24 May 2022.
IT’S GOOD TO TALK
MORE YOUNG ADULTS ARE MORE ENGAGED ABOUT 
MONEY WITH THEIR PARENTS THAN PAST GENERATIONS
When it comes to conversations about money, more and more families in 
Britain are opening up, new research reveals[1]. This is a signi!icant increase 
from previous years, when such conversations were considered taboo.
CREATING WEALTH FOR  
FUTURE GENERATIONS
When your children have a clear picture of 
what matters to them most, they become more 
con!ident in what they want to achieve. With 
that con!idence comes a sense of certainty 
about their future plans. To discuss how we 
can assist with their future goals and help them 
create future wealth, please get in touch.
Striving to improve investment practices, and 
robust transparency standards across the 
investment chain, are an essential part of 
ensuring schemes can act as responsible stewards 
on behalf of millions of UK pensions savers. 
NET ZERO COMMITMENTS
Choosing to go green on our pension investments 
could have a far greater impact on the environment 
than we may have thought. The positive news is that 
almost three quarters (74%) of pension schemes 
already have net zero plans in place, or will do within 
the next two years, a new survey has found[1]. 
This latest survey shows that pension 
schemes are making progress towards net zero 
commitments. With new Taskforce on Climate-
related Financial Disclosures (TCFD) requirements 
coming into force, the number of schemes making 
such commitments is expected to grow further still.
IDENTIFYING SUITABLE PERFORMANCE 
The news comes as climate change and 
Environmental, Social and Governance (ESG) 
stewardship continue to rise in importance and 
have become a central part of pension schemes’ 
investment strategy, with identifying suitable 
performance measures and devising frameworks 
to report on them also rising in importance.
The survey found two-thirds (63%) of schemes 
have started working on their TCFD report, with 
over half (55%) saying they are within the scope 
of the reporting deadline and so plan to publish 
one this year. 
CLIMATE TRANSITION PLANS
More than a quarter (28%) have gone a stage further 
and said that they have already published their TCFD 
report, despite it not being a mandatory requirement.
In terms of stewardship, two-thirds (68%) see 
their key priority as investors as being climate 
transition plans. Over half (56%) see these being net 
zero targets, while around a third (37%) see board 
diversity and human rights (35%) as key priorities.
MAJOR RISK TO PORTFOLIOS
In terms of non-climate related ESG factors, 
diversity and inclusion (51%) and human rights 
(49%) are seen to be the most important. 
These are also the areas that most see their 
organisations focusing on in the next 18 months.
There are a number of reasons for this increase, 
including regulatory pressure and public concern 
about climate change. However, the most 
important factor is likely to be !inancial: more 
and more investors are recognising that climate 
change presents a major risk to their portfolios.
REVIEWING INVESTMENT STRATEGIES
As a result of this increase in awareness, many 
pension schemes are now reviewing their 
investment strategies. Some are divesting from 
fossil fuel companies, while others are investing in 
green infrastructure and renewable energy.
The survey shows that pension schemes are 
taking climate change seriously. This is a positive 
development, as it means that more and more 
people will have a retirement income that is not 
put at risk by the threat of climate change. 
Source data:
[1] Research was conducted by the Pensions 
and Lifetime Savings Association (PLSA) among its 
members between 20/04/2022 and 16/05/2022. A 
total of 91 members responded to the survey.
THE VALUE OF YOUR INVESTMENTS CAN 
GO DOWN AS WELL AS UP AND YOU MAY GET 
BACK LESS THAN YOU INVESTED.
A HEALTHIER APPROACH 
TO RETIREMENT WEALTH
PENSION SCHEMES HAVE A CRITICAL ROLE TO PLAY 
IN THE TRANSITION TO A NET ZERO ECONOMY
Pension schemes have a critical role to play in the transition to a net zero 
economy, with many schemes already assessing the impact of their investments in 
the context of the goals of the Paris Agreement. 
HOW GREEN IS YOUR PENSION?
Although we might like to think that our 
pension contributions are simply locked away 
for us to use once we retire, the reality is that 
this money is being invested. Greening your 
pension might be the single most e#ective 
action you can take to reduce your carbon 
footprint. For more information or to discuss 
your retirement plans, please speak to us. 
RETIREMENT  21
22  WELLBEING
While the UK’s personal wealth has 
bounced back to its highest levels 
since before the pandemic began, 
our happiness and health have plummeted. 
The ongoing impact of the COVID$19 pandemic, 
combined with the cost-of-living crisis and the war 
in Ukraine, is having a devastating e#ect on the 
overall wellbeing of many people living in the UK.
NEGATIVE IMPACT 
The !igures show that over half of all Britons 
(51%) think the COVID pandemic had a 
negative impact on their access to healthcare, 
rising to 57% of women and 62% of those aged 
55 and over. Added to this, almost one in two 
people (45%) believe the pandemic has had a 
negative impact on their mental health (10% 
’very negative’), rising to 50% of women and 
younger people.
But it is not just COVID that has impacted on 
mental health, the rising cost-of-living crisis has 
also been a major factor. 28% of adults stated it 
was the number one cause of their mental health 
issues. The !igures also highlight that 28% of 
Britons now feel happier than last year, but 46% 
of Britons said they still felt less happy.
BIGGEST CHALLENGES 
Over a quarter (28%) had saved money in the 
last year, averaging £276 per month. One in ten 
(10%) of all people have paid o!f some debts in 
the last 12 months, averaging £491 per month. 
However, 11% have taken out new debts in the 
form of credit cards, loans etc, averaging £403 
per month.
The cost-of-living crisis is one of the biggest 
challenges facing many families in the UK 
today. The rising cost of everyday essentials, 
such as food and housing, is putting enormous 
pressure on household budgets.
SO WHAT CAN BE DONE TO HELP SOMEONE 
AFFECTED BY THE COST!OF!LIVING CRISIS?
There is certainly no magic wand that will 
end the cost-of-living crisis. But there are 
some cost-free strategies that could make 
a worthwhile di!ference to your household 
budget’s bottom line. 
Here are some practical suggestions:
Check your entitlement to bene!its and tax 
credits. There may be !inancial help available 
that you are not aware of.

Try to cut back on non-essential spending. 
Take a close look at your budget and see 
where you can make savings.

Shop around for the best deals on essentials 
such as food, utility bills and insurance.

If you are struggling to pay your bills, 
speak to your creditors and try to agree a 
repayment plan.

Seek advice from organisations such as 
Citizens Advice or StepChange if you are 
struggling with debt.
SEEK AVAILABLE SUPPORT
Households will barely need reminding about 
the bills that have gone up in recent months. 
According to a recent report from the Financial 
Conduct Authority (FCA)[2], many !inancially 
struggling households are failing to seek available 
support due to lack of understanding or feelings 
of embarrassment.
And for retired people, the impact of these 
rising costs is signi!icant as most are on a !ixed 
income and have little opportunity to change 
their !inancial situation.  
Source data:
[1] The Health, Wealth and Happiness Index 
was compiled and updated by the Centre for 
Economics and Business Research (Cebr) for 
LifeSearch in April 2022. The Index is based on 
a modelling process taking into account a range 
of data sources covering health, wealth and 
happiness and monitoring changes over time. 
The consumer insights research was carried out 
by Opinium Research between 21!25 January 
2022 among 2,000 UK adults alongside bespoke 
research among 502 ethnic minorities in the UK, 
weighted to be nationally representative, between 
21!26 January 2022. Additional questions on 
impacts on mental health over the last two 
years and how worse o$ "inancially consumers 
expect to be in the next year were carried out 
by Opinium Research between 22!26 April 2022 
among 2,000 UK adults.
[2] https://www.fca.org.uk/news/press-
releases/fca-tells-lenders-support-consumers-
struggling-cost-living
HEALTH, WEALTH AND 
HAPPINESS OF A NATION
OVERALL WELLBEING STILL NOT CLOSE TO BEING 
BACK TO LEVELS SEEN PRE$COVID
While there may be a sense that after two long years the worst of the 
pandemic is behind us, the nation’s health, wealth and happiness are still not close 
to being back to levels seen pre-COVID. In fact, our happiness is at a record low, 
mental health issues remain high and the energy crisis, in!lation and the con!lict in 
Ukraine point at another chapter of uncertainty, according to new !igures[1].
CONTACT THE COMPANY 
IN QUESTION AND EXPLAIN  
YOUR SITUATION
Struggling to make ends meet when it comes 
to the everyday cost of living is nothing new for 
vast swathes of the population. If you are falling 
behind with household bills or repayments 
on debts, it’s crucial to contact the company 
in question and explain your situation. It may 
agree to reduce your payments for an agreed 
period of time, and/or set up a payment plan. 
The power of compounding returns over 
decades is potentially enormous if you 
save consistently and invest in the !inancial 
markets. You can start small but get started.
If you are contemplating investing and looking 
to take your !irst steps, we’ve provided ten tips to 
get you started.
1. HAVE A PLAN
To start o# with, it’s important to have a plan for 
your investments. This means having an idea of 
what you’re trying to achieve and how you’re going 
to get there. Are you looking to invest for a speci!ic 
goal? Are you looking to achieve investment 
growth, income or both? Ultimately without a plan, 
it’s easy to get o# track and make decisions that 
aren’t in line with your investment goals.
2. START SMALL
You don’t need a large sum to start investing. 
In fact, drip-feeding what you can a#ord each 
month – or gradually whittling away a lump sum 
– could be bene!icial during times of stock market 
turmoil and economic uncertainty.
Your money buys more shares at a cheaper price 
when the market falls, and fewer shares at a higher 
price when the market rises. This averages out the 
price at which you buy investments and, over time, 
could help to smooth portfolio performance.
3. USE YOUR TAX ALLOWANCES
Remember your Individual Savings Account 
(ISA) allowance, which renews annually on 6 
April. This currently amounts to £20,000 for the 
2022/23 tax year. Investments inside an ISA grow 
tax-e"iciently, which means more of your money 
goes towards achieving your future goals.
4. BE PATIENT
Investing is a long-term process, that’s why it’s 
important to be patient. Don’t try to time the 
market or make decisions based on short-term 
!luctuations. Instead, focus on your overall 
investment goals and stick to your plan.
5. DIVERSIFY
As the saying goes, ‘Don’t put all your eggs in one 
basket.’ When you diversify, you spread your risk 
across di#erent investments and sectors, which 
can help you weather the ups and downs of 
investment markets.
6. REVIEW YOUR PORTFOLIO
Your investment portfolio should be reviewed on 
a regular basis. This will help you make sure that 
your investments are still in line with your goals 
and that you’re not taking on too much risk with 
where your money is allocated .
7. STAY DISCIPLINED
Investing can be emotional, which is why you 
need to stay disciplined. Don’t let greed or fear 
in!luence your decisions. Instead, keep focused 
on your goals and stick to your plan.
8. HAVE A TIME HORIZON
When you’re investing, it’s important to have 
a time horizon in mind. This is the amount of 
time you’re willing to wait for your investments 
to grow. For example, if you’re investing for 
retirement, you’ll likely have a longer time horizon 
than someone who’s investing to fund a child’s 
further eduction.
9. BE PREPARED FOR BUMPS IN THE ROAD
Investing isn’t always smooth sailing.  
There will be times, as we’ve seen in recent 
years, when the market is down or your 
investments don’t perform as well as you’d 
like. It’s important to be prepared for these 
bumps in the road and have a plan for how 
you’ll handle them.
10. SEEK PROFESSIONAL ADVICE
If you’re not sure where to start or how to 
create a diversi!ied portfolio, seek professional 
advice. We’re here to provide you with the 
guidance you need to make smart investment 
decisions and take your !irst steps. 
THE VALUE OF INVESTMENTS AND INCOME 
FROM THEM MAY GO DOWN. YOU MAY NOT 
GET BACK THE ORIGINAL AMOUNT INVESTED. 
PAST PERFORMANCE IS NOT A RELIABLE 
INDICATOR OF FUTURE PERFORMANCE.
TEN TIPS FOR  
FIRST$TIME INVESTORS
READY TO GET STARTED ON YOUR INVESTMENT JOURNEY?
Investing can help you grow your money faster than simply saving, but it can 
also be a little daunting knowing where to begin. You may think the volatile global 
stock markets may not be the ideal starting point for new investors, but it’s always a 
good time to begin investing.
PROFESSIONAL EXPERT  
INVESTMENT ADVICE AT YOUR SERVICE
Investing can be complicated. It can be hard 
to know where to begin if you don’t have 
much experience. We are here to help you 
understand how to invest, make the most of 
your money and achieve your !inancial goals. If 
you are ready to start your investment journey 
or want discuss any existing investments goal, 
please get in touch. 
INVE STMENT  23
24  RETIREMENT
WHEN 
SHOULD 
I STOP 
WORKING?
HOW TO TELL WHETHER 
YOU’RE READY TO RETIRE
Do you have enough income to retire? Are you 
prepared for the life changes retirement will bring? Is 
this the right time to sell your business? Is your timing 
right or will your savings and investments be at risk 
from volatile market conditions?
The best time to retire will depend on a 
variety of factors, including your health, 
your !inancial situation and your personal 
preferences. If you’re in good health and you 
have a solid !inancial foundation, you may be 
able to enjoy a long and active retirement. On the 
other hand, if your health is declining or you’re 
struggling to make ends meet, retiring sooner 
may be the best option.
SPENDING POWER EACH YEAR
Ultimately, the decision of when to retire is a 
personal one. It’s important to do some soul-
searching and research before making a !inal 
decision. Once you’ve decided when the right 
time for you is, be sure to plan carefully to make 
the most of your retirement years.
Some people may now need to think about 
the impact that in!lation could have on their 
retirement income, and to consider whether they 
can a#ord to retire yet. Rising in!lation can wipe 
years of retirement income o# pension pots as 
savers must increase the amount they withdraw 
to maintain the same spending power each year.
IMPACT ON RETIREMENT PLANS
In!lation can have a signi!icant impact on 
your retirement plans. If in!lation is high, the 
purchasing power of your savings will decrease 
over time. This means that you will need to save 
more money in order to maintain your standard 
of living in retirement.
To o#set the impact of in!lation, you may need 
to adjust your retirement plans. For example, you 
may need to save more money so that you can 
maintain your standard of living in retirement. 
Additionally, you may need to invest in assets 
that are less vulnerable to the e#ects of in!lation. 
Bonds are one type of investment that can 
help protect your portfolio from in!lation risk. In 
general, they can o#er relative stability, but you 
need to take your age and risk tolerance into 
consideration.
POTENTIAL EFFECTS OF INFLATION
While in!lation can have a signi!icant impact on 
your retirement plans, there are steps you can 
take to o#set its e#ects. By saving more money 
and investing in assets that are less vulnerable 
to in!lation, you can help ensure that your 
retirement plans remain on track. Additionally, by 
RETIREMENT  25
being aware of the potential e#ects of in!lation, 
you can make adjustments to your plans as 
needed to account for its impact.
As you get closer to retirement, it’s important 
to start thinking about how in!lation could impact 
your plans. While in!lation can be a good thing if 
it leads to higher wages and increased economic 
activity, it can also be a problem if prices start 
rising faster than your income, as we’ve seen this 
year with in!lation reaching a new 40-year high 
amid a cost-of-living squeeze.
THERE ARE SOME GENERAL PRINCIPLES 
THAT CAN HELP GUIDE YOUR THINKING ON 
THIS IMPORTANT TOPIC: 
The !irst principle is that it’s never too early to 
start planning for retirement. The sooner you 
start saving and investing for retirement, the 
more time your money has to grow. This is due 
to the power of compounding – which essentially 
means that your money earns interest on itself 
over time.
The second principle is that retirement 
planning is not a one-time event. Your retirement 
timeline will likely change as life circumstances 
change. For example, you may need to adjust 
your timeline if you have children or other family 
members who depend on you !inancially.
The third principle is that retirement is not 
an all-or-nothing proposition. You don’t have to 
retire completely in order to enjoy a comfortable 
lifestyle in retirement. Many people choose to 
work part-time or pursue other interests during 
retirement instead of (or in addition to) simply 
sitting around and doing nothing.
TIME TO UTILISE CASH FLOW MODELLING?
Planning for retirement is a complex task, made 
even more di"icult by the fact that most of us 
don’t have a crystal ball to predict the future. This 
is where retirement cash !low modelling can be 
incredibly useful. This can help you estimate your 
future income and expenses in retirement and 
give you a better idea of how much money you’ll 
need to have saved in order to maintain your 
current lifestyle.
By creating a model of your expected income 
and expenses, you can better plan for your 
retirement and make sure that you have enough 
money to cover your costs. This type of modelling 
can also help you to identify any potential shortfall 
in your retirement savings, so that you can make 
adjustments to your plans accordingly. 
If you are nearing retirement or are already 
retired, cash !low modelling can help you: 
understand how much income you will need in 
retirement; work out how long your retirement 
savings will last; determine the best way to use 
your retirement savings to generate an income in 
retirement; and !ind out how di#erent life events 
(such as taking a career break or downsizing your 
home) could impact your retirement cash !low. 
WOULD AN ANNUITY BE BENEFICIAL?
Annuities can be a good way to combat rising 
in!lation. Increasing annuities guarantee a stream 
of income that can o#er protection against the 
cost of living. However, it is important to choose 
an annuity that has a high enough rate of return 
to outpace in!lation, as otherwise you may end 
up losing purchasing power over time. 
Some annuities o#er built-in protection against 
in!lation. For example, some annuities o#er cost-
of-living adjustments that increase payments to 
keep pace with in!lation. This can help retirees 
maintain their purchasing power and keep up 
with the rising costs of living. While annuities 
are not the only solution for combating rising 
in!lation, they can be a helpful tool for retirees. 
Ultimately, whether or not an annuity is a 
good way to combat in!lation depends on your 
individual circumstances. If you are concerned 
about preserving your purchasing power in 
retirement, an annuity can be a helpful tool. 
However, you should obtain professional !inancial 
advice to weigh the costs and risks associated 
with an annuity before making a decision.
ARE YOU SITTING ON TOO MUCH CASH?
If you’re sitting on too much cash right now, with 
in!lation on the rise, that cash could be losing 
value, so you may want to rethink your strategy. 
In!lation is a natural occurrence that happens 
when the prices of goods and services start to 
increase. This can erode the purchasing power of 
your money, which means that you’ll need more 
money to buy the same items.
There are a few ways to combat in!lation and 
ensure that your money keeps its value. One 
option is to invest in assets that may appreciate in 
value, such as stocks and shares or property. No 
matter what strategy you choose, it’s important to 
be aware of the impact that in!lation can have on 
your !inances. By being proactive, you can ensure 
that your money keeps its value over time.
WHAT IS YOUR ATTITUDE TO RISK?
When pension planning, your attitude to risk will 
play a big role in how your portfolio is structured. 
If you’re willing to take on more risk, you may be 
rewarded with higher returns. But if you’re not 
comfortable with risk, you may want to focus on 
preserving your capital.
Once you have a better idea of your risk 
tolerance, you can start to allocate your assets 
accordingly. For example, if you’re okay with 
some volatility, you may want to put some of 
your money into stocks and shares. But if you’re 
not comfortable with any volatility, you may want 
to keep your money in cash and bonds.
No matter how much risk you’re willing to 
take on, it’s important to remember that all 
investments come with some risk. There’s no 
such thing as a completely risk-free investment. 
But by understanding your risk tolerance, you 
can make sure that your portfolio is structured in 
a way that meets your needs. 
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). 
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. 
ARE YOU READY FOR RETIREMENT?
Retirement is inevitable, but knowing exactly 
when to do so is often unclear. No matter 
when you actually begin your retirement, 
you’ll bene!it from planning your post-work 
life as early as possible. If you would like to 
review your retirement plans, we’re here to 
listen. We look forward to hearing from you.
26  FINANCIAL PLANNING
This is particularly true for those on lower 
incomes, who are often unable to access 
employer-sponsored pension schemes. 
The situation is made worse by the fact that the 
State Pension is not enough to live on, and many 
people may not be eligible for it.
ADDRESSING THE  
RETIREMENT INCOME CRISIS
The government has introduced a number 
of measures to try to address the retirement 
income crisis, but these have so far failed 
to make a signi!icant impact. The situation 
is only likely to worsen in the future, unless 
action is taken.
The average earner in their thirties is 
on track to see their pension pot reduce 
by £15,000 by the time they retire due to 
wage stagnation. The !indings from a recent 
Retirement Report[1] has revealed that the 
average earners in their 30s who were auto-
enrolled in a company pension scheme in 
2012 will have potentially contributed £7,000 
less by 2024.
COPING WITH THE FINANCIAL PRESSURES
These ‘lost contributions’ result in an 
overall £15,000 reduction to the individual’s 
total pension pot at retirement due to lost 
compound interest. The survey found that 
four out of !ive adults (81%) are concerned 
about making ends meet in the current cost 
of living climate, with three-quarters (76%) 
saying they need to take action to cope with 
the !inancial pressures. 
The study revealed that over a third (35%) plan 
to cut back on non-essential leisure and holiday 
spending, while others are being forced to 
make harder decisions, such as cutting back on 
essentials like food and utilities (16%).
SUSTAINING A DECENT  
LIVING IN RETIREMENT
UK pension contribution rates over the past few 
decades have been chronically low compared to 
European countries and, for the average saver, 
a joint employee-employer contribution rate of 
8% will not be enough to sustain a decent living 
in retirement, leaving people with less retirement 
income over and above the basic safety net of 
the State Pensions and retirement bene!its.
Over half (57%) of those surveyed said 
they were concerned about their !inances 
in retirement, while a similar number (50%) 
revealed they don’t feel they are preparing 
adequately for retirement.
INVESTMENT RETURNS ARE IMPORTANT 
Almost a !ifth (18%) said their pension savings 
are invested in cash or cash-like assets, or low-
risk assets such as UK Government bonds; or 
that they are planning to invest their pension in 
such assets.
This means, according to the report, the 
average person between 35 and 54 years old – 
an age when investment returns are important 
– who holds half of their £36,200 pension savings 
fully in cash could be exposed to a reduction of 
over £1,300 in a single year in real terms, and 
over £2,100 in two years. 
Source data:
[1] The survey for Scottish Widows included 
general questions on pensions and retirement 
planning and was carried out online by YouGov 
Plc: across a total of 5,025 adults aged 18+, 
weighted to be representative of the GB 
population, and separately for 1,002 adults aged 
18+ to better understand the retirement prospects 
of minority ethnic groups. Fieldwork was carried 
out between 8!15 March 2022 for the nationally 
representative survey, and between 8!30 March 
2022 for the survey focused on minority ethnic 
groups, through a 15-minute online survey. 
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). 
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.
TAX TREATMENT VARIES ACCORDING TO 
INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT 
TO CHANGE.
NEVER TOO EARLY 
TO PLAN AHEAD
PENSION SAVERS STRUGGLING TO SAVE ENOUGH 
FOR THEIR LATER YEARS
There is no doubt that the UK is facing a retirement income crisis. With wage 
stagnation and rising living costs, many people are struggling to save enough for 
their later years.
CURRENT RETIREMENT  
PLANS ON TRACK?
There’s a whole lot to think about when you’re 
planning for retirement. From thinking about 
when to retire to what to do with di#erent 
pension pots, planning for retirement can be 
both exciting and daunting. If you would like to 
review your current retirement plans to make 
sure you are on track, please contact us.
New research suggests there is a growing 
tendency among the older generation to 
use the wealth held in their property to help 
younger generations become !irst-time buyers[1]. 
The research looked at spending and saving levels, 
as well as attitudes towards funding retirement.
MORTGAGE!FREE
Homeowners, particularly those who are mortgage-
free, are planning to use investments, as well as 
their property, to help other family members move 
onto the property ladder. The !indings show that the 
average age at which people pay their mortgage o# 
is 51. After this, property and other wealth tends to 
start being spread through the generations. 
Of respondents, 14% say they have already 
helped their children to become !irst-time buyers, 
with a further 19% saying they will ‘de!initely or 
probably’ do this. Previously when surveyed in 
2016[2], more respondents (19%) said they had 
already helped their children to become !irst-
time buyers, yet fewer (13%) were ‘de!initely or 
probably intending to’ compared to now.
FIRST!TIME BUYERS
The research also shows an increase in the 
number of people ready to help other family 
members, not just their own children. In 2022, 5% 
say they have already helped their grandchildren 
become !irst-time buyers, with a further 20% 
saying they are de!initely or probably going to.
This proportion has shifted upwards in the last 
six years. In 2016, 3% had already helped their 
grandchildren to get onto the property ladder 
and 14% intended to.
YOUNGER GENERATIONS 
The same pattern emerges when it comes to 
helping members of the wider family to buy a 
home. In 2022, 3% say they have already helped 
with this, and a further 9% intend to, compared 
with 2% and 3% respectively in 2016.
The amount of money older relatives are 
giving to younger generations has also increased, 
with the typical total amount given now standing 
at £31,398.63, 25% higher than in 2016.
RELEASING CAPITAL 
There is also a noticeable shift towards using 
property wealth over other sources of income 
to provide help to other family members hoping 
to buy a home. In the latest research, the use of 
!inancial help sourced through property wealth 
has more than doubled compared with six years 
ago, with 40% using property assets in a number 
of ways, led by downsizing and equity release.
In 2016, most !inancial help was sourced 
through using savings and investments to provide 
money for a deposit (71%), or to buy a property 
outright (10%). A further 3% cashed in pensions 
or used pension savings to enable this. Property 
wealth was used to help other family members in 
17% of cases, mostly by releasing capital through 
downsizing or equity release. 
Source data:
[1] Aviva research conducted for Aviva by 
Censuswide April 2022. 1,507 general consumers 
aged 45+.
[2] Aviva Real Retirement Report conducted for 
Aviva by ICM Unlimited April 2016. 1,506 general 
consumers aged 45+.
EQUITY RELEASE WILL REDUCE THE VALUE 
OF YOUR ESTATE AND CAN AFFECT YOUR 
ELIGIBILITY FOR MEANS TESTED BENEFITS.
BANK OF GRANDMA 
AND GRANDAD 
OLDER GENERATION USING THE WEALTH HELD IN THEIR 
PROPERTY TO HELP YOUNGER GENERATIONS
It’s no secret that many younger people tend to encounter di#iculties when 
seeking to enter the housing market for the "irst time. The degree to which 
existing homeowners are now prepared to use their own wealth to help their other 
family members onto the property ladder has increased notably over the last six years. 
HELPING YOUNGER FAMILY  
MEMBERS BUY A HOME
It is becoming increasingly accepted that 
wealth held in property should be considered 
part of someone’s total assets, and can be 
used for a variety of purposes – including to 
help younger family members buy a home 
like their parents and grandparents did. 
Understanding the features and risks of equity 
release is complicated and you should always 
obtain professional advice.
FINANCIAL PLANNING  27
28  RETIREMENT
The key reason behind this low con!idence 
is the inability to a#ord savings on an 
ongoing basis, followed by worry about 
paying o# existing debts.
FUTURE CRISIS 
Low-paid workers are least likely to be  
saving at these levels, with fewer than 5% 
saving at a rate which would provide an 
adequate standard of living in retirement. 
Low savings levels are a long-standing 
issue; however, the cost-of-living crisis is 
exacerbating the problem. 
The UK’s lowest-paid workers have been 
hardest impacted during the crisis, often 
struggling to make ends meet. As a result, 
many are unable to prioritise saving for 
retirement, and today’s cost-of-living crisis risks 
storing up a future crisis where millions are 
unable to a!ford even the basics in retirement.
SAVING BEHAVIOUR
Just as low pay has impacted female workers 
most, the gender pensions gap remains an 
issue. The report found that 23% of male 
workers met the ‘whole career’ Living Pension 
cash benchmark, compared to 15% of female 
workers, and that this is driven principally by 
di!fering levels of pay rather than di!fering 
saving behaviour. 
The Living Pension benchmarks are 
based on a previous feasibility study by the 
Resolution Foundation, which proposed a 
‘whole career’ benchmark of 11.2% of pay, or 
£2,100 per year for someone working full-time 
at the living wage.
HUGE VARIATIONS 
The report also highlighted that there are 
huge variations in whether workers are 
meeting the Living Pension benchmarks by 
sector. 55% of workers in the !inance industry 
save at or above the ‘whole career’ cash LP 
benchmark, compared to only 2% of workers 
in hospitality. 
These di!ferences persist even if they 
account for variations between sectors in 
workers’ pay levels, occupation and whether 
they are full-time. This suggests that sector 
di!ferences in pension saving are driven either 
by employers’ behaviour or their approach to 
the overall renumeration package. 
Source data:
[1] https://www.livingwage.org.uk/sites/default/
"iles/Living%20Pensions%20Report.pdf
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). 
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.
MIND THE 
RETIREMENT GAP
FOUR OUT OF FIVE WORKERS NOT SAVING AT LEVELS WHICH ARE 
LIKELY TO DELIVER AN ACCEPTABLE STANDARD OF LIVING IN OLD AGE
Four in "ive workers (16 million people) are not saving at levels which are likely 
to deliver an acceptable standard of living in retirement, according to new 
research[1] – these numbers exclude De!ined Bene!it pension savings.
WHAT IF I COULD HAVE THE  
RETIREMENT I REALLY WANT?
Planning so that you can enjoy today, whilst 
making sure there is plenty saved for the 
future, can be a tricky balance to get right. 
If you would like advice and support with 
retirement planning, please get in touch.