Building Your Own Financial Plan

Our latest financial advice magazine provides a wealth of information on building your own financial plan as well as top tips on your pension if you are about to retire, what's happening post lockdown with inflation, how your pension and goals may have changed post lockdown!
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 pensions retirement financial planning PENSION plan FINANCIAL RETIRE INCOME FINANCIAL plan tax TIME PENSION pot invest future work make people impact CHANGE year benefit pay save LIFE
About Tudor Franklin IFA

TOP PENSION TIPS IF 
YOU’RE ABOUT TO RETIRE
Understanding your options and 
putting a plan in place
WHAT’S HAPPENING  
WITH INFLATION?
Easing of lockdowns boosts consumer 
confidence and unleashes pent-up demand
TIME FOR PENSIONS TO CONTRIBUTE 
TOWARDS BUILDING A BETTER WORLD
One in four pension scheme members have never 
even heard of net zero
BUILD YOUR OWN  
FINANCIAL PLAN
Vision without action is merely a dream
SEPTEMBER/OCTOBER 2021
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/OCTOBER 2021
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.
C O N T E N T S
04
INHERITANCE TAX 
Minimising the impact on your estate
05
MAKING INHERITANCE  
GIFTS FROM SURPLUS INCOME 
Are you making use of this useful and  
much underutilised exemption?
06
TOP PENSION TIPS IF  
YOU’RE ABOUT TO RETIRE
Understanding your options and  
putting a plan in place 
08
BUILD YOUR OWN FINANCIAL PLAN
Vision without action is merely a dream
 
09
PREPARING FOR THE UNEXPECTED
Protection should be a core part  
of your financial plan
10
HOW TO TRACE MULTIPLE  
OLD PENSION POTS
Over time, pension schemes close,  
merge or become renamed
12
TIME FOR PENSIONS TO CONTRIBUTE 
TOWARDS BUILDING A BETTER WORLD
Landmark report from the United Nations on 
the state of climate science
13
COPING WITH LIFE-CHANGING EVENTS
Plan for tomorrow, live for today
Welcome to our latest edition. Inside we look 
at how, by having a financial plan in place early 
on, it can make it easier to manage your money 
further down the line. It’s never too early to make 
a financial plan. The sooner you work out your 
goals and start following a plan to achieve them, 
the more likely you are to succeed. On page 08 
there are three key questions to ask yourself when 
building your financial plan. Don’t forget: vision 
without action is merely a dream.
We spend our working lives building towards 
retirement. Choices we make today will have a big 
impact on the quality of our lives later on. On page 
06 we explain the changes made to UK pensions 
in 2015 and what they mean for your choices when 
it comes to funding your lifestyle in retirement. 
The decisions surrounding when, why, and how 
you decide to retire will be very personal, and will 
largely depend on your individual circumstances.
Understanding inflation is an important factor 
when it comes to your financial success. If you 
don’t factor inflation in when deciding where to put 
your money – whether that’s savings accounts or 
investing – you could find your wealth shrinks over 
the years. The easing of lockdowns has boosted 
consumer confidence and unleashed pent-up 
demand. On page 28 we look at the current causes 
of higher inflation.
Your pension is more than just a retirement fund; it 
can also contribute towards building a better world. 
As we have been witnessing in recent months 
and years, climate changes are occurring in every 
region and globally. A new landmark report from the 
United Nations on the state of climate science has 
highlighted modern society’s continued dependence 
on fossil fuels. Its e!ects are already apparent as 
record droughts, wildfires and floods continue to 
devastate communities worldwide. Turn to page 12.
A full list of the articles featured in this issue 
appears opposite. 
UNDERSTANDING EVERY  
ASPECT OF YOUR WEALTH
 Whether you are clear on your financial priorities or 
feel you need to be pointed in the right direction, we’ll 
work with you on your financial plans and help you to 
realise your wealth and lifestyle ambitions. We hope 
you enjoy the useful intel and articles in our latest 
issue, and if you require any further information or 
would like to start a conversation – please contact us.
C O N T E N T S
14
HOW HAS COVID-19  
AFFECTED RETIREMENT PLANS?
Attitudes and aspirations of this year’s retirees
16
PROPERTY WEALTH BOOST
Older homeowners receive £1.94 billion 
17
GENDER PENSION GAP
British women impacted at every stage of career
18
FINANCIAL FUTURES
Gen Xers expected to face significant 
challenges in retirement
19
INTERGENERATIONAL FINANCIAL PLANNING
COVID-19 increases desire for sustainable 
investing for half of UK adults
20
RETIREMENT PLANS  
BEING PUT IN JEOPARDY
Pandemic threatens pushing over-50s into 
pension poverty
22
WHAT WILL HAPPEN TO YOUR PENSION 
WHEN YOU DIE?
Providing an income or nest egg for your loved 
ones to enjoy, long after you are gone
24
KEEPING IT IN THE FAMILY
Two in three people accessing advice share 
same financial adviser as their parents
25
CORONAVIRUS ALTERS 
RETIREMENT PLANS
One in eight older workers extend  
their planned retirement age
26 
PLANNING FOR A BETTER FINANCIAL FUTURE
Have you made sure your plans are still on track?
28
WHAT’S HAPPENING WITH INFLATION?
Easing of lockdowns boosts consumer 
confidence and unleashes pent-up demand
03
04
INHERITANCE TAX
Inheritance Tax 
Minimising the impact of on your estate
The latest Inheritance Tax (IHT) statistics show an additional 4% was 
added to HM Revenue & Customs receipts compared to the previous 
year[1]. IHT is a tax payable when you die. Whether your beneficiaries have 
to pay it, and how much they’ll pay, is based on the value of your estate.
Your estate’s value is the value of 
the whole entirety of your assets. 
An asset is anything of value that 
is owned, for example: money, 
property, investments, businesses, possessions, 
payouts from life assurance not written under 
an appropriate trust, as well as any gifts made 
within seven years of your death. IHT is currently 
applied to estates worth more than £325,000, 
and will remain at this level until April 2026.
SURVIVING SPOUSE
When the value of your estate exceeds this limit, 
known as the ‘nil-rate band’, everything over the 
threshold is taxed at 40% (unless you’re leaving 
it to your surviving spouse, in which case no IHT 
needs to be paid).
For the 2021/22 tax year, there is also 
a ‘residence nil-rate band’ currently worth 
£175,000. If applicable to your particular situation, 
this is added to your nil-rate band of £325,000 
– so your estate could be worth up to £500,000 
before any IHT is payable. 
EMOTIONAL TIMES
This increased tax take suggests that the 
Chancellor’s freeze on the nil-rate band and 
residence nil-rate band at the last Budget 
is beginning to have the desired e!ect. It 
is achieving the ‘fiscal drag’ it set out to do, 
particularly given that asset prices have soared 
following the depths of the pandemic and could 
continue to do so given inflation is on the up.
As a result, many more people could end up 
having to pay IHT without realising they would 
fall into the tax charge. It is vitally important 
people start to have conversations with loved 
ones to fully understand an estate and the value 
of it. While it isn’t always the most pleasant 
conversation, it is better to have it now than 
during more emotional times such as following 
a death.
COMPLICATED TAX 
With the government looking for ways to plug 
the holes in the public finances created by 
the pandemic, IHT will always be in focus. IHT 
is a complicated tax and one that requires a 
necessary level of knowledge to ensure you’re 
planning in the most tax-e#cient way. 
So IHT planning should be considered but 
it’s important not to plan in isolation – it should 
be part of an overall strategy that encompasses 
your lifetime financial goals and assets, even 
though constituent parts may be executed 
separately and at di!erent times.  
Source data:
[1] National Statistics Inheritance Tax statistics: 
commentary from HM Revenue & Customs 
updated 29 July 2021.
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 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. THE 
FINANCIAL CONDUCT AUTHORITY DOES NOT 
REGULATE TAXATION & TRUST ADVICE.
PASSING ON YOUR  
WEALTH TO THE NEXT GENERATION
You have worked hard to build your wealth 
– we will help you pass it on to the next 
generation securely and e#ciently. If you’d like 
to find out more or to discuss your situation, 
please get in touch with us today – we look 
forward to hearing from you. 
05
Are you making use of this useful and much under-utilised exemption?
If you want to make inheritance gifts from surplus or excess income, there 
is a useful and much under-utilised exemption that allows gifts over and above 
the value of £3,000 per annum to be made without these gifts forming part of 
your estate if you die within seven years of making them.
The exemption comes under the 
heading of ‘Normal expenditure out 
of surplus income’. It is a particularly 
valuable way of gifting part of your 
estate to future generations on a regular basis.
If you want to make inheritance gifts from 
surplus or excess income, you need to show 
that you intend to make regular gifts that will not 
a!ect your normal standard of living, and that will 
come from income rather than capital.
This form of giving is most e!ective for those with 
higher incomes relative to their cost of living, who 
are either looking to clear their estate or just make 
gifts to loved ones – especially in order to distinguish 
these gifts from lifetime gifts of capital that have 
already been made or are being contemplated.
SO, WHAT ARE THE REQUIREMENTS?
1. 
 The gift must form part of your normal 
expenditure – this can mean either a pattern 
of regular gifts or the intention to make 
regular gifts. You therefore need to record 
when you are making a gift out of income, 
by writing a letter for instance.
2. The gift is made out of income.
3. 
 You are left with enough income to maintain 
your normal standard of living.
In order to assess whether you have su!cient 
income to utilise this exemption and to satisfy 
conditions 2 and 3, you will need to:
Consider how much net income you receive 
(for example, from employment, pensions, 
dividends, interest, rent) after tax.
Review what your normal expenditure amounts 
to – there is no actual legal definition of what 
‘normal expenditure’ amounts to but it is based 
on an individual’s particular circumstances. This 
may, of course, fluctuate from year to year.
CONDITIONS THAT MUST BE MET
It is important to consider the conditions that 
must be met for gifts to qualify. The conditions 
of ‘surplus’ and ‘normality’ are qualitative and, 
without methodical planning, can leave room for 
doubt about the tax e!ects. 
It’s therefore important to seek professional 
financial advice in advance to identify any 
ambiguity. Inadvertently making a gift of capital 
could be very costly and later give rise to a 40% 
Inheritance Tax charge on those funds should you 
die within seven years.
CARRYING FORWARD YOUR INCOME 
If appropriate, you could complete this process 
each tax year to review how much surplus 
income you have for that year. You can then 
increase or decrease the amount you gift 
accordingly. There are no hard and fast rules 
as to when income no longer retains its status 
as income. However, HM Revenue & Customs 
tends to take the approach of being able to carry 
forward income for a period of two years. 
It’s important to keep financial records that 
allow you to calculate and o!set expenditure 
against income. This will determine the amount 
available for gifting. Tracking the opening and 
closing balances on monthly bank statements is 
the usual starting point.
CONTINUING TO MAKE REGULAR PAYMENTS 
It’s also helpful to record a Memorandum of Intent, 
declaring your future intention to make regular 
gifts of your excess income, which can be used 
to anticipate a challenge to their nature. The 
Inheritance Tax Form 403 provides a useful record-
keeping tool. Your executors will need to claim 
the exemption on your death, and therefore it is 
important to maintain thorough record keeping.
In certain situations it may be possible that 
a single gift could qualify so long as it can be 
proved upon death that there was an intention 
to continue with the payments. Such intention 
could be proved by the donor providing a 
signed letter to the recipient confirming their 
intention to continue to make regular payments.
WISHING TO RETAIN CONTROL  
OF YOUR CAPITAL
This is a particularly e!ective means of tax 
planning if an individual is not dependent upon 
such income to maintain their current standard of 
living but wishes to retain control of their capital. 
For example, a parent could pay the premiums 
on a life policy for their child, make payments 
into trust for the benefit of their children, or pay 
their children’s school or university fees.
The gift can be made out of general income or it 
could be made out of a nominated source such as 
property rental or specific investment income. 
THIS INFORMATION IS BASED ON OUR 
CURRENT UNDERSTANDING OF LEGISLATION. 
LEGISLATION AND TAX TREATMENT CAN CHANGE IN THE 
FUTURE. THE FINANCIAL CONDUCT AUTHORITY DOES NOT 
REGULATE INHERITANCE TAX PLANNING AND TRUSTS.
INHERITANCE TAX
IS YOUR WEALTH PROTECTED FOR  
YOU AND YOUR FAMILY?
Estate planning is essential to make sure 
your wealth is protected for you and your 
family. By structuring your assets in a tax-
e#cient way, you can make sure everyone 
is provided for in the future. To discuss your 
options or any estate planning concerns 
you may have, please contact us.
Making 
inheritance gifts 
from surplus income 
06
Understanding your options and putting a plan in place 
We spend our working lives building towards retirement. Choices we make 
today will have a big impact on the quality of our lives later on. If you only 
have a handful of years to go until you reach your retirement, it has never 
been more important to understand your options and put a plan in place – 
now could be a good time to re-evaluate your plans with us.
The changes made to UK pensions 
in 2015 mean that we all have more 
choices available on how to fund our 
lifestyle in retirement. But decisions 
surrounding when, why, and how you decide 
to retire will be very personal and will largely 
depend on your individual circumstances. 
These decisions will also be impacted by 
external factors such as the rising State Pension 
age, and the impact of the recent pandemic on 
the job market. When planning for your future, 
it’s important to know when you can access the 
money in your pension pot.
If your pension is not on track to give you 
the income you want in retirement, you need 
to look at how to boost it. It’s also worth 
remembering that taking your pension doesn’t 
mean you need to retire. 
TAKING STOCK OF YOUR RETIREMENT PLANS
Retirement is a time to reap the rewards 
of years of hard work and do more of the 
things that you love, whether that’s travelling 
the world or spending time with your 
grandchildren. But to make this a reality, you 
need to prepare as well as you can financially. 
This isn’t always easy, as pensions and 
retirement planning can be complex.
To help you ensure you’re on the right track, 
ask yourself the following questions. What type 
of pension/s do I have? Do I have more than one 
pension pot? If so, where are they? When and 
how can I access the funds in my pension pots? 
What is the value of my pension pots? What 
benefits will they provide me with? What about 
any other options or guarantees?
WILL YOU POTENTIALLY EXCEED THE 
PENSION LIFETIME ALLOWANCE? 
If you’re close to retirement, you may find you are 
approaching the Pension Lifetime Allowance (LTA) 
limit. The LTA is the most you can accrue overall 
within your pension plans without incurring an 
additional tax charge on the excess funds. The 
LTA test can take place at various times and all 
funds are tested at some point (for example, when 
your pension plan is accessed, if you die without 
having accessed it and/or on reaching age 75). 
The LTA has been cut over the years and is now 
£1,073,100 for the 2021/22 tax year.  
The LTA has also been frozen at £1,073,100 
until 2026, potentially exposing you to the charge 
for breaching the threshold. If you breach the 
threshold you face a 55% LTA charge on amounts 
taken above this ceiling if they are withdrawn 
as a lump sum (with no further income tax due 
beyond the 55%), or a 25% LTA charge when 
taken as income which includes placing the funds 
in a drawdown plan. In addition, any income 
withdrawn is then taxed at usual income tax rates.
If you think you are nearing the LTA, it’s 
important to monitor the value of your pensions, 
and especially the value of changes to any 
defined benefit (DB) pensions as these can be 
surprisingly large. DB pensions are valued for LTA 
purposes as 20 times the annual pension figure, 
plus the tax-free cash amount, whereas defined 
contribution (DC) pensions are tested against the 
LTA based on the fund value. There were, and are, 
protections that can help you avoid a tax charge 
by giving you a higher LTA. We can discuss 
whether this applies to your situation.
WHAT DOES YOUR CURRENT AND 
FORECASTED WEALTH LOOK LIKE?
As you get closer to retirement, it is important 
to assess your current and forecasted wealth, 
along with your income and expenditure, to 
create a picture of your finances for both now 
and in the future. 
Lifetime cash flow modelling will help ensure 
you don’t run out of money – or die with too 
much – by showing whether your current 
investment approach is either excessively 
risky or unduly cautious. Retirement cash flow 
TOP PENSION TIPS 
IF YOU’RE ABOUT  
TO RETIRE
RETIREMENT
 07
modelling can help to alleviate your concerns. 
Building your individual retirement cash flow plan 
involves assessing your current and forecasted 
wealth, along with your income and expenditure, 
using assumed rates of investment growth, inflation 
and interest rates, to build a picture of your finances 
both now and in the future.
If you have accumulated wealth, retirement 
cash flow modelling will help you manage your 
position and make sensible decisions over the 
years. However, cash flow planning is arguably 
even more beneficial if you have longer-term 
personal or business objectives, as you can see 
how much you need to save and the returns you 
need to meet those defined objectives.
TIME TO LOOK AT YOUR OPTIONS AVAILABLE 
WHEN ACCESSING YOUR PENSION?
Once you reach age 55, you can access your 
defined contribution (DC) pension pot. You can 
take some or all of it, to use as you need, or 
leave it so that it has the potential to continue to 
grow. It’s up to you how you take the benefits 
from your DC pension pot. You can take your 
benefits in a number of di!erent ways.
You can choose to buy a guaranteed income 
for life (an annuity). You can take some, or all, of 
your pension pot as a cash lump sum, or you 
can leave it invested. However you decide to 
take your benefits, you’ll normally be able to take 
25% of your pension pot tax-free. The rest will be 
subject to Income Tax.
It’s good to have choices when it comes to 
pensions and your retirement, but it’s also important 
to understand all your options and any impact your 
decision may have on your future security. How 
long your pension pot lasts will depend on the 
choices you make. We can help by discussing the 
options available to access your pension.
ANNUITIES
If you buy an annuity this will provide a guaranteed 
income for the rest of your life. With this option, 
the provider agrees to pay you an agreed regular 
sum until you die. With an annuity, you may receive 
more or less money than you put in depending on 
how long you live after your annuity has started.
FLEXI-ACCESS DRAWDOWN
By opting for flexi-access drawdown, you can leave 
your pension pot invested so that it has the potential 
to grow, or take lump sums or a regular income from 
it. Your pension pot will last until you’ve taken all your 
money out. The level of income you take and any 
investment growth will be key factors as to how long 
your pension pot will last.
TAKE SOME OR ALL OF IT IN CASH
If you take some or all of your pension pot as a 
cash lump sum, it’s up to you how long it lasts. 
Once you receive your money after tax, you’re 
completely responsible for it and can use it as 
you require – although remember that although 
25% of the amount you take is tax-free, you’ll pay 
Income Tax on the rest.
LEAVE IT ALL FOR NOW – DEFER YOUR PENSION
You could decide not to take your pension at your 
selected retirement date and leave it invested until 
you’re ready to take your benefits. This means 
your pension pot would have the potential to grow, 
although this is not guaranteed. It’s important to 
ensure you don’t lose any guarantees which only 
apply at your retirement date if you decide to leave 
your pension pot.
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. 
THE TAX IMPLICATIONS OF 
PENSION WITHDRAWALS WILL BE BASED 
ON YOUR INDIVIDUAL CIRCUMSTANCES, TAX 
LEGISLATION AND REGULATION WHICH ARE 
SUBJECT TO CHANGE IN THE FUTURE. YOU 
SHOULD SEEK ADVICE TO UNDERSTAND YOUR 
OPTIONS AT RETIREMENT.
RETIREMENT
/// If you have 
accumulated wealth, 
retirement cash flow 
modelling will help 
you manage your 
position and make 
sensible decisions 
over the years.
WOULD YOU LIKE US TO  
CARRY OUT A RETIREMENT  
PLAN REVIEW WITH YOU?
Even if retirement isn’t far away, there are 
ways to increase your retirement income. 
This applies both to your State Pension 
entitlement as well as to any personal or 
workplace pension pots you have. To find 
out what you can do, please contact us for 
more information. 
FINANCIAL PLANNING
Having a financial plan in place early on can make it easier to manage your 
money further down the line. It’s never too early to make a financial plan. The 
sooner you work out your goals and start following a plan to achieve them, the 
more likely you are to succeed.
Here are three key questions to ask yourself 
when building a financial plan.
1. WHAT ARE MY GOALS?
Building wealth takes time and a little e!ort. 
Like any activity, be it growing a business or 
learning a new skill, you need to decide early on 
what your long-term objectives are. It’s exactly 
the same when you are building wealth – it is 
important to set financial goals.
Without a goal, your e!orts can become 
disjointed and often confusing. Being able to keep 
track of your progress towards achieving a goal 
is only possible if you set one in the first place. 
Being able to measure progress is extremely 
rewarding and will help you maintain focus. 
Procrastination is something we all battle with 
from time to time. However, when you set goals 
in life, specific goals for what you want to achieve, 
it helps you understand that procrastination is 
dangerous. It is wasted time. It is another day you 
aren’t moving closer to that goal.
Setting financial goals is essential to financial 
success. Once you’ve set your goals you can 
then write and follow a roadmap to realise them. It 
helps you stay focused and confident that you’re 
on the right path.
Consider the SMART principle when setting 
your own goals:
Specific – Clearly define what each goal is and 
use details such as numbers where possible 
(quantify it).
Measurable – Think about a tangible way in 
which you can measure your progress.
Achievable – Are your ambitions realistic? With 
planning we are often capable of more than we 
realise but being pragmatic is important. Discussing 
your goals with us will help you to balance this.
Relevant – Are your goals in line with your own 
personal values? It is useful to chat this through 
with somebody else to clarify your values.
Timebound – Think about the timeframe you 
are working within and whether there is any 
flexibility needed.
Your goals are personal and unique to you. 
Perhaps you want to set up your own business 
and follow a lifelong passion, or maybe you want 
financial security and to ensure you can pass a 
legacy on to your loved ones.
Once you’ve defined your goals and you’re 
clear on your current situation, it’s a good time 
to work out if you have enough to achieve your 
goals or if there’s a gap. This isn’t an easy task as 
there are often many variables to consider, such 
as inflation, tax and growth rates.
2. WHERE AM I NOW?
Cash flow planning is a concept borrowed from 
business and every business owner or finance 
director will be familiar with the term. These same 
principles can be applied to your personal financial 
planning. As we’ve mentioned, the starting point is 
to identify each one of your personal goals. 
Cash flow planning is most e!ective when all 
likely future needs are taken into account too. 
Just focusing on immediate needs may seem 
more practical but focusing on one goal at a time 
can limit future options. 
Make a list or a spreadsheet of what you have, 
specifying where and how much; this could include 
any assets such as property, cash balances, 
investments, pensions, protection policies and any 
debts such as mortgage, credit cards or loans. Look 
at your income and expenditure levels.
Remember, the future is somewhere you 
have never been before. Cash flow planning 
guides and updates you on your journey. If there 
are delays on the way it can find another path. 
Combined with our professional advice, we can 
help you arrive at your destination more smoothly.
3. WHAT DO I NEED TO DO NEXT?
As we’ve seen with the coronavirus (COVID-19) 
pandemic, things can change very quickly. It 
goes without saying that your financial plans 
should not be static objects, and that you should 
review your plans over time and on a regular 
basis to ensure that you remain on track towards 
your goals. You also need to adapt your financial 
plans as your circumstances change.
Reviewing your arrangements regularly is a 
vital way of ensuring you meet your financial 
goals and ensures that all your plans are up to 
date in light of changes to your circumstances 
and the wider financial landscape.
Reviews can also prompt you to consider some of 
those things that sometimes get left undone – such 
as your Will, which might still need to be arranged 
or updated. Or perhaps there is a Lasting Power 
of Attorney that has not been progressed or a life 
assurance policy that should be placed under an 
appropriate trust. As we’ve all recently experienced, 
life has a habit of springing unpleasant surprises 
on us when least expected. 
LET’S GET STARTED
Financial planning is the key to improving 
your financial wellness. Your personal plan is a 
roadmap to your financial success. You’ll see 
exactly what you need to do now to make a 
significant di!erence for your future. Please 
get in touch to find out how we can help you 
reach your financial goals – we look forward 
to hearing from you.
Build your own 
financial plan
Vision without action  
is merely a dream
08
09
FINANCIAL PLANNING
Protection should be a core part of your financial plan
When you think of financial planning, pensions and savings will spring to 
mind. But, whilst often overlooked, protection should be a core part of your 
financial plan.
If you are worried illness or injury could leave 
you without enough to pay bills, there are 
solutions to help protect your income. While 
some people could rely on state benefits as a 
safety net if they experienced a sudden loss of 
income, for many the drop in income would be 
too severe to maintain their standard of living.
BEING ABLE TO KEEP PAYING THE BILLS
In many situations, families rely on both partners’ 
income to pay the monthly bills and don’t think 
about the impact losing one income could have 
on their standard of living. Even though people 
recognise the need to take out life insurance to 
pay o! their mortgage if they die, some may not 
think about how their family could continue to pay 
their outgoings if they became ill or were injured 
and unable to work for a long period of time.
If something were to happen to you, would you 
and your family be able to keep paying the bills? 
The coronavirus (COVID-19) outbreak has made 
many of us think more carefully about protecting 
ourselves and our family from financial di#culties. 
However, this isn’t just about having savings and 
investments to provide for the long term – it’s 
also about ensuring you and your loved ones are 
provided for should the worst happen.
SUFFICIENT SAVINGS TO MANAGE FINANCIALLY
Have you calculated how much you and your 
family would need if you found yourself unable 
to work? This should also take account of your 
savings and any other income you might have. 
Using a Budget Planner will enable you to work 
out what you’re spending each month, from 
household bills to general living costs. Having 
a good idea of your overall budget will make it 
easier to make changes.
Not everyone will have su#cient savings to 
manage financially for long periods of illness – 
particularly if this money is earmarked for other 
plans like retirement or helping children with their 
education. That’s where insurance protection 
comes in, and there are a variety of options that 
could help to cover specific costs, or replace 
income, should you find yourself unable to work.
INCOME PROTECTION
Income Protection insurance can provide a 
regular replacement income if someone is 
unable to work because of an illness or injury. 
Typically, a policy pays out after they’ve been 
o! work for six months (often called a ‘deferred’ 
or ‘waiting period’) and can pay a percentage of 
their salary until either they return to work, reach 
State Pension Age or die while claiming. 
CRITICAL ILLNESS COVER
Critical Illness Cover is a type of insurance that 
pays out a tax-free lump sum if someone is 
diagnosed with, or undergoes surgery for, a 
critical illness that meets the policy definition 
during the policy term and they survive a 
specified number of days. It’s designed to help 
support you and your family financially while you 
deal with your diagnosis – so you can focus on 
your recovery without worrying about how the 
bills will be paid.
LIFE INSURANCE COVER
Life Insurance Cover pays out a lump sum if 
someone passes away during the policy term. 
If you’re diagnosed with a terminal illness 
and are not expected to live longer than 12 
months, some policies will provide the sum prior 
to death. It’s there to provide financial support 
for your loved ones after you’re gone, whether 
that means helping to pay o! the mortgage or 
maintaining their standard of living.
PRIVATE MEDICAL INSURANCE COVER
Private Medical Insurance Cover is a type of 
cover that pays your private healthcare costs 
if someone has a treatable condition. Whether 
it’s overnight care, outpatient treatment, 
diagnostic tests, scans or aftercare, you receive 
the specialist private treatment you need, in 
comfortable surroundings, when you need it. The 
cover is available at a range of di!erent levels 
of cover at various premiums designed to meet 
your specific needs. 
Preparing for the unexpected
TIME TO SAFEGUARD  
YOUR FINANCIAL FUTURE?
The possibility of passing away 
prematurely, getting a serious illness or 
sustaining an injury isn’t something we like 
to think about, but being prepared can help 
you to avoid money worries for both you 
and your family. To find out more, please 
contact us.
/// The coronavirus 
(COVID-19) outbreak has 
made many of us think more 
carefully about protecting 
ourselves and our family 
from financial di!culties.
RETIREMENT
HOW TO TRACE  
MULTIPLE OLD 
PENSION POTS
Over time, pension schemes close, merge or become renamed
Changed job? Moved house? It’s 
not always easy to keep track of a 
pension, especially if you’ve been 
in more than one scheme or have 
changed employers throughout your 
career. Over time, pension schemes 
close, merge or become renamed. 
So even if you remember the name 
of your scheme, it could now be 
called something else.
10
RETIREMENT
With more of us changing jobs 
regularly throughout our working 
lives, it has become harder to keep 
track of old company pensions. 
This is particularly the case for people who have 
moved home and whose pension providers no 
longer have their correct contact details. 
With the disappearance of the job-for-life and 
with more people moving jobs several times 
throughout their working life and accruing multiple 
pension pots along the way, it can be all too easy 
to lose track of the pension funds built up.
So how can you go about tracing any 
pension schemes you have paid into at some 
point in the past?
GET IN TOUCH WITH FORMER EMPLOYERS
If your forgotten pension scheme was run by a 
company you worked for, you should contact 
them first. In some cases, individuals may not 
have been aware they were actually paying 
into a pension, especially if no monthly salary 
deductions were being made.
Most pension schemes must send you a 
statement each year. These statements include an 
estimate of the retirement income that the pension 
pot might give you when you reach retirement.
First, check to see if you have any old 
paperwork that might have the name of your 
employer or pension scheme. This will give you 
a good starting point. If you’re no longer getting 
these statements – perhaps because you’ve 
changed your address – to track down the 
pension you can contact the pension provider, 
your former employer if it was a workplace 
pension, or The Pension Tracing Service.
CONTACT PENSION PROVIDERS
Even if your pension was linked to your job, it 
may have been run on your employer’s behalf 
by a pension company. In this case, you should 
get in touch with the provider rather than your 
previous employer.
The same applies if you set up your own 
personal or stakeholder pension, for example. 
The Pensions Advisory Service, which is 
sponsored by the Department for Work 
and Pensions, can also help you look for a 
personal pension.
You’ll need to provide information about the 
name of your old employer or pension provider, 
and potentially further information such as the 
dates you worked at the company and your 
National Insurance number.
If you know which provider your pension was 
with, your first step is to contact them. However 
you contact them, you should provide as 
many of the following details as possible: your 
plan number, your date of birth, your National 
Insurance number and the date your pension 
was set up.
By asking the following questions, you’ll get a 
thorough overview of your pension pot:
Q:   What is the current value of my pension pot?
Q:   Have I nominated a recipient for any  
death benefits?
Q:   How much has been contributed into my 
pension pot?
Q:   What charges do I pay for the management 
of my pension pot?
Q:   How much income is the pension pot likely to 
pay out at my chosen retirement date?
Q:   How is my pension pot being invested and 
what options are there for making changes?
Q:   What are the charges if I wanted to transfer 
the pension pot to another provider?
Q:   What are the death benefits – in other words, 
how much money would be paid from the 
pension if I died?
USE THE PENSION TRACING SERVICE
An alternative way of tracking down a lost workplace 
or personal pension is by using the Pension Tracing 
Service. This is a free government scheme which 
can be accessed via the government website. 
Again, you will need to provide as much information 
as possible about yourself and the dates you were a 
member of any scheme.
You can phone the Pension Tracing Service on 
0800 731 0193 or submit a tracing request form 
to the Pension Service via the GOV.UK website.
STICK TO OFFICIAL SERVICES
Be warned though, from time to time, businesses 
are set up to o!er similar tracking services to 
people who have lost pensions. Although they 
are not necessarily doing anything illegal and 
often o!er assistance for free, they may try to 
give the impression that they are o#cial services.
In fact, they could be trying to obtain the 
personal information of people who have 
substantial pension savings so they can 
persuade these individuals to make investments 
or pay for financial advice, for example.
To reduce the risk of losing track of a pension 
in future, ensure you let providers know 
whenever you change your home address or 
any other details, such as your email address. 
A PENSION IS A LONG-TERM INVESTMENT NOT 
NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM 
APRIL 2028 UNLESS THE 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. 
THE TAX IMPLICATIONS OF PENSION 
WITHDRAWALS WILL BE BASED ON YOUR 
INDIVIDUAL CIRCUMSTANCES, TAX LEGISLATION 
AND REGULATION WHICH ARE SUBJECT TO CHANGE 
IN THE FUTURE. YOU SHOULD SEEK ADVICE TO 
UNDERSTAND YOUR OPTIONS AT RETIREMENT.
ACCESSING PENSION BENEFITS EARLY MAY 
IMPACT ON LEVELS OF RETIREMENT INCOME AND 
YOUR ENTITLEMENT TO CERTAIN MEANS-TESTED 
BENEFITS AND IS NOT SUITABLE FOR EVERYONE. 
YOU SHOULD SEEK ADVICE TO UNDERSTAND YOUR 
OPTIONS AT RETIREMENT.
READY TO START A CONVERSATION 
ABOUT BUILDING A SUCCESSFUL 
FINANCIAL FUTURE?
We’ll help you navigate through the 
complexities of today’s financial world. The 
choices available can often be bewildering, 
which is why we are here. Our goal is to 
work with you to build a successful financial 
future, where you can live a happy, secure 
and prosperous life. To find out more, please 
contact us.
/// With the disappearance of the job-for-life and 
with more people moving jobs several times 
throughout their working life and accruing multiple 
pension pots along the way, it can be all too easy to 
lose track of the pension funds built up.
11
RETIREMENT
New landmark report from the United Nations on the state of climate science
As we have been witnessing in recent years and months, climate changes 
are occurring in every region and globally. A new landmark report from the 
United Nations on the state of climate science has highlighted modern society’s 
continued dependence on fossil fuels, which is warming the world at a pace 
that is unprecedented in the past 2,000 years. Its e!ects are already apparent 
as record droughts, wildfires and floods devastate communities worldwide.
Put simply, net zero refers to the balance 
between the amount of greenhouse gas 
produced and the amount removed from 
the atmosphere. We reach net zero when 
the amount we add is no more than the amount 
taken away. The UK became the world’s first major 
economy to set a target of being net zero by 2050.
GREENHOUSE GAS 
The Intergovernmental Panel on Climate Change 
report published on 9 August emphasises there 
is still time to act, but it must happen immediately. 
Limiting climate change demands strong and 
sustained reductions in greenhouse gas emissions 
from human activities such as burning fossil fuels.
One of the main areas where change can make 
a significant di!erence to all of our futures is how 
and where our pension money is invested. But the 
facts are, if money is invested in a standard, default 
pension, it could be doing more harm than good.  
CLIMATE CHANGE
Your pension is more than just a retirement fund, it 
can also contribute towards building a better world. 
However, one in four pension scheme members 
have never even heard of net zero, while three in 
ten can’t explain or understand the connection with 
their pension pots and climate change. 
According to new research[1], almost nine in 
ten Defined Contribution (DC) scheme members 
were not aware of the importance of having their 
pension scheme aligned with a net zero goal. But, 
encouragingly, members were overwhelmingly in 
favour of their pensions moving towards net zero 
when the term was explained.
COLLECTIVE POWER 
The survey also uncovered that one in four (25%) 
have never heard of the term ‘net zero’ and a 
further three in ten (31%) have heard of it but could 
not say what it means. In fact, 70% of DC members 
prefer remaining invested and using their collective 
power to engage with companies to align their 
businesses with global climate change e!orts, or 
prepare them to thrive in a low-carbon economy.
Two-thirds (64%) of all members have become 
more concerned about the impact of human 
actions on the planet following the COVID-19 crisis. 
Rather than deprioritising environmental issues 
in favour of immediate concerns, the pandemic 
has thrust them into sharper focus as members 
explicitly linked them with their current situation.
PERFORMANCE IMPACT
Millennials are the strongest supporters of 
engagement, with 79% of them supporting 
providers’ stewardship activities. Their attitude 
also helps to explain their change of heart towards 
outright divestment. While still the most radical 
cohort of the three generations on this issue, half 
of Millennial members would consider divesting if it 
had no performance impact, while only two in five 
of them would divest no matter what.
Baby Boomers are twice as likely as Millennials 
to want to keep pensions as diversified as possible, 
even if that meant investing in fossil fuels, but the 
proportion has dropped from 30% to 25% over 
the past 18 months. The research also shows that 
more than a fifth of ‘Boomers’ (22%) are now happy 
to divest into a greener pension regardless of 
performance. This follows increased coverage of 
climate in the mainstream media and real concern 
about the impact of climate change on their 
children and grandchildren.
YOUNGER VIEWS 
Millennial men are the most likely to want a 
net zero pension irrespective of the impact on 
financial performance. The proportion who feel 
this way (40%) is double that of the group showing 
the least interest, female Baby Boomers (20%).
As Baby Boomers move steadily into their 
retirement years, the balance of power will shift as 
Gen X starts to hold the largest share of pension 
assets. Younger views will be an important factor 
in shaping the direction of travel over the next ten 
years. This new cohort can no longer be assumed 
to be simply chasing maximum financial returns 
regardless of the impact on the planet. 
Source data:
[1] Survey conducted in April 2021, based on a 
population of 3,056 adults currently contributing to 
a workplace pension. Legal & General Investment 
Management published 14 June 2021.
A PENSION IS A LONG-TERM INVESTMENT NOT 
NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM 
APRIL 2028 UNLESS YOU HAVE A PLAN WITH 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. 
THE TAX IMPLICATIONS OF PENSION 
WITHDRAWALS WILL BE BASED ON YOUR 
INDIVIDUAL CIRCUMSTANCES, TAX LEGISLATION 
AND REGULATION WHICH ARE SUBJECT TO CHANGE 
IN THE FUTURE. YOU SHOULD SEEK ADVICE TO 
UNDERSTAND YOUR OPTIONS AT RETIREMENT.
Time for pensions to contribute 
towards building a better world
WHAT GOOD COULD  
YOUR MONEY DO?
Humanity has its work cut out to create 
solutions to the many complex problems of 
the 21st century. We help you assess the risks 
– and opportunities – posed by companies’ 
and countries’ performance in critical 
areas, such as climate change, executive 
remuneration, and diversity and inclusion. 
Please speak to us for further information – 
we look forward to hearing from you.
12
FINANCIAL PLANNING
Plan for tomorrow, live for today
Change is the only constant in life. It inevitably involves twists and turns, with 
some that are expected while others may be entirely unplanned. When this 
happens, it’s important to feel secure with the knowledge that you have the 
right contingency plan in place.
None of us can predict exactly what a 
life-changing event will be or when it 
will occur, and many of them will take 
you by surprise, whether good or bad. Here, we 
consider some major life events you may wish to 
discuss with us.
DIVORCE AND MANAGING FINANCES
Managing your finances after divorce can 
sometimes feel like an impossible task, 
especially if the amount of money coming into 
your household is much less than when you 
were married. For some people, divorce can 
mean financial devastation or hardship. 
You may lose half of what you have saved 
over the course of your adult life, and go into 
debt paying lawyer’s fees and other expenses. 
Yet as messy and painful as divorce can be, it is 
often both necessary and ultimately a good thing 
– and it is possible to recover both financially 
and emotionally after a divorce.
When you’re facing a divorce, you need to 
know where you stand financially. We can help 
you plan for a sound financial future, to give 
you security and peace of mind, allowing you to 
move forward with your life.
THINKING ABOUT FINANCIAL  
PLANNING FOR LONG-TERM CARE
More people in the UK are living for longer, 
which is good news. However, this longevity 
brings certain challenges, such as how we will 
fund any long-term care that may be needed 
in the future. If you are one of the many people 
faced with helping a parent or another loved 
one find long-term care, then you are probably 
grappling with a lot of questions. 
Among them: How can I bring this up in a way 
that won’t upset them? How are they, or how 
are we, going to pay for this? What type of living 
situation is best? 
Ageing comes with many joys and challenges. 
We can discuss with you the options to help cover 
your loved ones’ care needs now and in the future.
DEALING WITH YOUR  
FINANCES IN WIDOWHOOD
Coping with the death of a loved one can be 
extremely hard. You may be dealing with lots 
of di!erent emotions, finding it hard to process 
them and having di#culties moving on. Losing 
your loved one, whether expected or sudden, 
can prove almost too much to bear.
But it’s surprising how uninformed some 
spouses can be about each other’s financial 
lives. Even in marriages that consciously attempt 
to integrate finances ( joint bank accounts, both 
names on the mortgage), a lot of financial activity 
is specific to one spouse, for example, a credit 
card, retirement planning, an ownership interest 
in a business, investments, a car with only one 
name on the finance agreement.
After the death of a spouse, your financial 
situation will likely be a major concern. We will 
take the time to understand your needs and 
recommend solutions personally tailored to you.
WHAT TO DO AND NOT  
DO WITH AN INHERITANCE
Losing someone you care about is one of 
the hardest experiences in life. Receiving an 
inheritance probably means coping with the 
death of a loved and cherished member of your 
family or a friend. The emotion associated with 
bereavement often makes taking decisions 
about both their estate, and what you stand to 
inherit, di#cult.
Most estates are settled within six to nine 
months in the UK, but it depends on the 
complexity of the estate. If it isn’t handled 
appropriately, the pressure of the proceeds 
can be stressful, upset your relationships and 
complicate your finances. 
During this di#cult time we can help you 
to consider your options, assess any tax 
implications and decide how this inheritance 
could be used to provide you with financial 
security in the years ahead.
THE IMPORTANCE OF FINANCIAL PLANNING
Financial planning helps you determine 
your short and long-term financial goals 
and create a balanced plan to meet those 
goals. The coronavirus (COVID-19) pandemic 
has demonstrated unequivocally that such 
unforeseen and unplanned-for events can wreak 
havoc on our personal finances.
Establishing clarity around your finances is 
arguably one of the most critical things you 
can do for your overall financial success. It is 
important to understand your financial needs 
and then create a financial plan to meet them. 
Tax planning, prudent spending and careful 
budgeting will help you keep more of your 
hard-earned cash. 
We know you’ll have di!erent priorities 
for your wealth at di!erent points in your life. 
Whatever your financial aims, we can help you 
achieve them for both you and your family. 
TIME TO BRING CLARITY  
TO YOUR FINANCIAL AFFAIRS?
Everybody experiences life-changing events 
at some point, whether directly or through a 
loved one. To discuss how we can help you, 
please contact us.
Coping with 
life-changing 
events
13
RETIREMENT
How has COVID-19  
a!ected retirement plans?
Attitudes and aspirations of this year’s retirees
The coronavirus (COVID-19) 
pandemic has impacted on every 
aspect of our lives, a!ecting 
individuals’ financial situation and, 
for many, their plans for retirement. 
If you are approaching retirement 
in the next 12 months, your plans 
should be under continuous review.
We take a look at new research 
which has highlighted the 
attitudes and aspirations of this 
year’s retirees[1].
 
SHIFTING ATTITUDES
The pandemic has shifted attitudes and 
priorities across almost all aspects of people’s 
lives, but specifically, the timing of retirement 
is one thing that has changed for many. The 
research uncovered that 37% of people have 
brought forward their retirement date in the past 
12 months. The opportunity to work from home 
and escape the daily commute has freed up 
time to enjoy other things. 
It has provided a glimpse into what retirement 
might look like and many like what they see. Some 
may have found themselves forced into an early 
retirement due to a change in work circumstances 
or redundancy. However, others were doing the 
opposite, with 12% deciding to delay retiring.
When you choose to retire is important, as 
the timing of it can limit or increase your earning 
potential prior to retiring. If you are considering 
changing your retirement date, it is important to 
discuss with us your updated plans so we can 
help you understand any impact this may have.
FLEXIBLE RETIREMENT
Traditionally, when we think of retirement we 
think of the departure from working life. Although 
people often look forward to giving up work as 
part of their retirement plans, others have no 
intention of doing so fully.
Whether it be a financial or emotional driver, 
the growing trend of working in retirement is 
clear from the research. Just 44% see retirement 
as giving up work completely.
The rise in flexible working as a result of 
COVID-19 has also been a contributing factor, 
making stepping back rather than stepping 
away much more achievable than ever before, 
with 22% planning a more flexible retirement by 
simply reducing their hours.
FINANCIAL IMPACT
Unsurprisingly, travelling remains a key 
aspiration. However, research shows that 30% 
of people have had to reconsider their travel or 
holiday plans in retirement.
As a result of COVID-19, uncertainty around safety 
and travel restrictions has led to more and more 
people choosing a ‘staycation’ or investing in a UK-
based holiday home rather than heading overseas.
Whether you’re swapping the Côte d’Azur for 
the Cornish coast or simply delaying your travel 
plans, it’s important to consider the financial 
impact, if any, that changing your original plans 
may have.
CROSS-COUNTRY MOVES
Lockdown living forced many of us to reassess what 
is important, with 51% worrying about not being able 
to do the things they want to in retirement.
14
RETIREMENT
As mentioned, travelling is one concern. 
However, for 43% of people, not being able to 
spend time with family and friends has been 
a worry. For the peace of mind that another 
national lockdown won’t hinder the opportunity 
to visit loved ones, there has also been a trend 
in cross-country moves to be nearer to children 
and grandchildren.
A move in retirement may not have been on 
the cards prior to the pandemic; however, this 
may now have become a priority for many.
REVIEWING YOUR PLAN
In times of uncertainty, making a plan can seem 
like a waste of time. However, it’s important to 
think ahead to retirement and review your plans 
for the future, and even more so as we face up 
to the protracted coronavirus crisis. 
It’s concerning to see some individuals 
accessing pension funds earlier than planned, with 
others thinking about this option. While this may 
alleviate short-term financial pressures, it leaves 
less of a retirement fund to provide an income 
throughout what can be decades of retirement. 
It’s important not to rush into making life-
changing retirement decisions without first 
seeking professional financial advice. 
Source data:
[1] Research by Standard Life Aberdeen, carried out 
in February 2021 by 3Gem - 1000 adults, aged 
55+ and still working.
15
HOW RESILIENT ARE YOUR  
FUTURE FINANCIAL PLANS?
There’s a whole lot to think about when you’re 
planning for retirement. Talk to us today about 
your future financial plan and we’ll help you 
make sure it is a resilient one. To discuss your 
requirements, please contact us.
/// In times of uncertainty, making a plan 
can seem like a waste of time. However, 
it’s important to think ahead to retirement 
and review your plans for the future, 
and even more so as we face up to the 
protracted coronavirus crisis. 
/// Traditionally, when we 
think of retirement we 
think of the departure from 
working life. Although 
people often look forward 
to giving up work as part 
of their retirement plans, 
others have no intention of 
doing so fully.
PROPERTY
Property wealth boost
Older homeowners receive £1.94 billion 
Older homeowners received a £1.94 billion property wealth boost in the first 
half of 2021, data shows[1]. More than half of the proceeds of equity release 
(52%) were used to clear mortgages (45%) and manage unsecured debts (7%),  
while 23% was used to help family and friends – notably for help with house 
deposits as buyers rushed to beat the end of the Stamp Duty holiday.
These ‘big ticket’ expenses saw an average 
of £74,894 in borrowing being repaid and 
£72,520 being gifted. Over half of people 
who used their equity to support wider 
family and friends used it to provide a house deposit 
(52%) or an early inheritance (59%) – some of which 
was no doubt also put towards property purchase.
INVALUABLE SOURCE OF CASH
Equity release can be an invaluable source of 
cash for some over-55s. It enables homeowners 
to unlock the value locked up in their home as 
a tax-free lump sum without having to sell it, 
downsize or relocate. 
Your home must have a minimum value of  
£70,000 and be your permanent main residence 
in the UK, which you live in for more than six 
months of the year. With equity release you 
don’t have to make monthly payments, unless 
you choose to. It’s usually repaid when the last 
borrower moves into long-term care or dies.
WHAT TYPES OF EQUITY  
RELEASE PLANS ARE THERE?
There are two main types of equity release:
Lifetime Mortgage: This is the most common 
type of equity release. You borrow money 
secured against your home. The mortgage 
is usually repaid from the sale of your home 
when you die or move permanently into 
residential care.
Home Reversion Plan: You raise money by 
selling all or part of your home while continuing 
to live in it until you die or move into permanent 
residential care.
TOTAL VALUE RELEASED 
The data revealed an increase in the amount 
of money used for property purchases – 
around 7% of the total value released went 
towards buying homes, with the average 
customer taking out £115,068 to boost their 
buying power.
Around 71% of people took out drawdown 
plans in the first half of the year, taking an initial 
average amount of £56,744 and reserving 
another £666.4 million for future use.
 
DOUBLE DIGIT GAINS
The data reflects the whole market and 
shows that every region apart from Northern 
Ireland saw the value of property wealth 
released increase. London recorded 
the biggest increase at 74% while Wales 
recorded a 42.1% rise and another seven 
regions saw double digit gains.
Wales recorded the biggest rise in plan 
sales at 24.1%, followed by London on 22.6%, 
and a total of seven out of the 12 regions saw 
increases in plan sales.
The strength of the housing market in the 
South East and London meant those regions 
accounted for just over £1 billion of all equity 
released – more than half the total across the 
UK during the six months – despite accounting 
for only 34% of plans sold. 
Source data:
[1] Key Market monitor Equity release performance in 
the UK Half year 2021
THINK CAREFULLY BEFORE SECURING 
OTHER DEBTS AGAINST YOUR HOME. YOUR 
MORTGAGE IS SECURED ON YOUR HOME, WHICH 
YOU COULD LOSE IF YOU DO NOT KEEP UP YOUR 
MORTGAGE PAYMENTS. 
EQUITY RELEASE MAY INVOLVE A HOME 
REVERSION PLAN OR LIFETIME MORTGAGE WHICH 
IS SECURED AGAINST YOUR PROPERTY. TO 
UNDERSTAND THE FEATURES AND RISKS, ASK FOR A 
PERSONALISED ILLUSTRATION.
EQUITY RELEASE REQUIRES PAYING OFF ANY 
OUTSTANDING MORTGAGE. EQUITY RELEASED, PLUS 
ACCRUED INTEREST, TO BE REPAID UPON DEATH OR 
MOVING INTO LONG-TERM CARE. EQUITY RELEASE 
WILL AFFECT THE AMOUNT OF INHERITANCE YOU 
CAN LEAVE AND MAY AFFECT YOUR ENTITLEMENT TO 
MEANS-TESTED BENEFITS NOW OR IN THE FUTURE.
CHECK THAT THIS MORTGAGE WILL MEET YOUR 
NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME 
OR YOU WANT YOUR FAMILY TO INHERIT IT. 
IF YOU ARE IN ANY DOUBT, SEEK PROFESSIONAL 
FINANCIAL ADVICE.
16
WHAT WOULD YOU  
LIKE TO PLAN FOR?
When you have a clear picture of what matters 
to you most, you become more confident in 
what you want to achieve. It’s also important 
that you receive expert professional and 
personalised advice about all the options and 
income sources available. To find out more, 
please contact us for more information.
GENDER PENSION GAP
17
The staggering impact of the gender pension gap has been revealed in 
research which shows that women have lower pension pot sizes in every age 
bracket, with the situation significantly deteriorating as they approach retirement[1].
PENSION POT SIZES 
The research highlights that there is always 
a di!erence in pension pot sizes between 
genders[2], even at the start of men’s and women’s 
careers. This initial gap (17%) remains largely 
unchanged until men and women reach their 
thirties, but doubles to 34% by the time they are in 
their forties. The gap increases to 51% in the fifties 
age bracket, and then to 56% at retirement.
The analysis also reveals that the di!erence 
in size of pot has a significant influence on the 
choices being made at retirement. 92% of women 
choose to take their pension in cash compared to 
86% of men, while only 7% of women consider a 
drawdown compared to 12% of men.
INVESTMENT EARNINGS 
The issue is compounded by the fact that even 
in sectors where women are more heavily 
represented in the workforce, the pension gap 
remains just as stark. For example, in the Senior 
Care sector, the research shows that 85% of 
pension scheme members are women, yet 
the average woman’s pot size is 47% smaller 
than the average man’s (£8,040 current male 
average pot size).
Defined Contribution (DC) pensions have 
grown substantially in recent years, with the 
introduction of auto-enrolment. DC pensions are a 
retirement plan in which the employer, employee 
or both make contributions on a regular basis. 
Individual accounts are set up for participants and 
benefits are based on the amounts credited to 
these accounts plus any investment earnings on 
the money in the account. 
CAREER PROGRESSION
However, much like the gender pay gap in 
wages, the gender pension gap is fast becoming 
an issue. This analysis reveals the extent of the 
gender pension gap in the UK – a gap that exists 
right from the very beginning of a woman’s career 
and accelerates as she approaches retirement. 
The decision to take a career break to raise 
a family has a clear impact, though there are a 
number of other factors at play here, including 
lower pay relative to male peers at all stages of a 
woman’s career, a lack of pension contributions 
when she is away from the workplace, and the 
potential impact that raising a family has on a 
woman’s career progression. 
FINANCIAL STRUGGLES 
The research shows women are also more likely 
to face financial struggles following a divorce 
from their partner and are significantly more 
likely to waive their rights to a partner’s pension 
as part of their divorce. This is particularly true for 
older women, with one in four divorces occurring 
after the age of 50.
Changing social and workplace attitudes 
should help begin to level the playing field 
in terms of responsibilities, helped by the 
increasing acceptance of more flexible working 
patterns. The gender pay and pension gap is a 
complex issue that will take time to solve. 
Source data:
[1] Research and data analysis from approximately 
4 million Legal & General (L&G) pension scheme 
members 28 Jul 2021.
[2] The analysis is based on LGIM’s proprietary data 
on c.4 million Defined Contribution members as at 6 April 
2021, but does not take into account any other pension 
provision the customers may have elsewhere.
A PENSION IS A LONG-TERM INVESTMENT NOT 
NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM 
APRIL 2028). THE VALUE OF YOUR INVESTMENTS (AND 
ANY INCOME FROM THEM) CAN GO DOWN AS WELL 
AS UP WHICH WOULD HAVE AN IMPACT ON THE LEVEL 
OF PENSION BENEFITS AVAILABLE. YOUR PENSION 
INCOME COULD ALSO BE AFFECTED BY THE INTEREST 
RATES AT THE TIME YOU TAKE YOUR BENEFITS. 
THE TAX IMPLICATIONS OF PENSION 
WITHDRAWALS WILL BE BASED ON YOUR 
INDIVIDUAL CIRCUMSTANCES, TAX LEGISLATION 
AND REGULATION WHICH ARE SUBJECT TO CHANGE 
IN THE FUTURE. YOU SHOULD SEEK ADVICE TO 
UNDERSTAND YOUR OPTIONS AT RETIREMENT.
IT’S NEVER TOO SOON TO  
START THINKING ABOUT THE 
RETIREMENT YOU WANT
Whether you’re saving for retirement or 
planning your life now that you’ve retired, 
receiving professional financial advice can be 
hugely important in order to maximise your 
savings and avoid costly mistakes. To discuss 
how we could help you, please contact us for 
further information.
/// The research 
highlights that there 
is always a di#erence 
in pension pot sizes 
between genders[2], even 
at the start of men’s and 
women’s careers.
Gender pension gap
British women impacted at every stage of career
RETIREMENT
Financial futures
Gen Xers expected to face significant challenges in retirement
With many Gen Xers (those born between 1965 and 1980) having entered 
the job market too late to benefit from final salary pensions, yet too early 
to benefit from schemes such as auto-enrolment, this group is expected 
to face significant challenges in retirement if policymakers fail to respond 
urgently.
There are currently 14 million Gen Xers 
in the UK – 1 in 5 of the total population. 
With the ongoing COVID-19 pandemic 
putting additional strain on finances, 
the case for policy action becomes urgent.
NO PENSION PROVISION 
Research by the International Longevity Centre 
UK (ILC)[1] finds that self-employed Gen X workers 
are five times more likely to have no pension 
provision than other workers due to a lack of 
access to traditional pension schemes.
The report on the impact of longevity, finds 
that self-employed Gen Xers (those born 
between 1965 and 1980) are at high risk of facing 
inadequate income in retirement. This is in part 
due to self-employed Gen Xers being more likely 
to face periods of low or insecure pay, alongside 
a more general lack of incentives to save. 
IMPACTED BY COVID-19
While the adoption of auto-enrolment into 
pension schemes, for example, has been highly 
successful in supporting many employees to 
start saving, there haven’t been similar initiatives 
to support the self-employed, and people in 
this group can’t rely on contributions from an 
employer to top up their pension pots.
Self-employment, including in the gig economy, 
is on the rise among Gen X workers. While overall, 
19% of Gen Xers say they struggle to save for 
retirement due to insecure earnings, this is more 
than double for those who are self-employed – 44%. 
The research, based on a nationally representative 
YouGov survey of 6,035 people, identified self-
employed Gen X workers have been further 
impacted by COVID-19, with 39% reporting spending 
their savings or saving less due to the pandemic.
FLEXIBILITY DURING HARD TIMES
In the report, ILC call for policymakers urgently 
to o!er an equivalent to auto-enrolment to the 
self-employed – but in a way that o!ers more 
flexibility during hard times – by giving this 
group the option to save into a Sidecar Savings 
Scheme (as well as a traditional pension). 
This would enable savers to pre-commit to 
regularly put money into an accessible savings 
account, and once these savings have reached an 
agreed target – which ensures they have su#cient 
savings for a ‘rainy day’ – to automatically transfer 
any additional payments into a pension.
VARIABLE OR INSECURE PAY
Many Generation Xers don’t have adequate 
pension savings in place and, sadly, this financial 
vulnerability is exacerbated if they are also 
self-employed. Many people who are self-
employed are likely to face periods when they 
are on variable or insecure pay, but there is also 
a worrying lack of incentive for them to save for 
their financial futures.
With self-employment and the gig economy 
on the rise, it’s vital that saving for retirement is 
encouraged and more easily facilitated for these 
workers and we would welcome any moves by 
policymakers to introduce an equivalent auto-
enrolment scheme for the self-employed, which 
we know has worked so well for employees. 
Source data:
[1] The findings are ILC calculations based on nationally 
representative YouGov survey responses of 6,035 UK 
adults aged 40-55 (collected online between 13-24 
November 2020). The survey was carried out online. The 
figures have been weighted and are representative of all 
UK adults aged 40-55.
18
WHAT WILL YOUR  
RETIREMENT LOOK LIKE?
Retirement might seem a long way o!. And 
if that’s the case, then great, because you’re 
in the best position to start planning for what 
should be the longest holiday of your life. 
Speak to us for more information or to discuss 
your requirements – we look forward to hearing 
from you. 
/// Research by the 
International Longevity 
Centre UK (ILC)[1] finds that 
self-employed Gen X workers 
are five times more likely to 
have no pension provision 
than other workers due to a 
lack of access to traditional 
pension schemes.
FINANCIAL PLANNING
19
Intergenerational financial planning
COVID-19 increases desire for sustainable investing for half of UK adults
The coronavirus (COVID-19) pandemic has prompted a desire to move 
into ethical and sustainable investing for more than half (51%) of advised 
UK adults, according to a new report[1]. And while the trend is common 
across the generations, it’s Millennials who are leading the charge. 
The report found that 61% now care 
more about the environment and 
the planet than they did before the 
pandemic. More than a quarter (26%) 
of respondents admit they are more concerned 
than they’ve ever been. And one in five (21%) 
say they are more worried now that they have 
children/grandchildren. 
SUSTAINABLE COMPANIES AND FUNDS
The pandemic has undoubtedly fuelled investor 
demand for sustainable investing and this is 
trickling down amongst generations: 60% of 
Millennials, 44% of Gen X and 35% of Baby 
Boomers confirmed that COVID-19 has increased 
their appetite for sustainable investments. And 
many investors go further. 45% confirmed that 
since the pandemic they now only want to invest 
in sustainable companies and funds. 
Despite the desire for ethical and sustainable 
investing, more than a third (36%) of UK adults 
admit they actually have no idea what their 
current investments – including workplace and 
private pensions – are invested in, as they have 
little to no control. 
REFRAMED FINANCIAL PRIORITIES
For many, the pandemic has shifted their financial 
priorities, prompting more to seek professional 
financial advice. One in two (53%) respondents 
said they had either already sought advice – or 
were planning to because of the pandemic. And 
just over one in five (21%) were seeking advice 
to begin their investment journey, potentially 
fuelled by individuals who had built up savings 
not having the traditional outlets for spending 
their income. 
With £5.5 trillion in personal wealth due to be 
passed to the next generation by 2047, the role 
intergenerational planning advice played, prior to 
the pandemic, was already a significant one[2]. Yet 
the COVID-19 pandemic has reframed financial 
priorities. Not just for those later in life with 
Inheritance Tax liabilities but for all generations.
PLANET, ENVIRONMENT AND SOCIETY
Once perhaps viewed as a fad, sustainable 
investing is becoming normalised, making 
it a fundamental building block within 
intergenerational financial planning. It also 
enables parents to leave their children more 
than just a financial legacy in terms of the planet, 
environment and society.
Two in five advised investors surveyed 
confirmed they expect to increase the amount 
they invest in Environmental, Social and 
Governance (ESG) investments over the next 
five years. 
Source data:
[1] Second chapter of Prudential UK’s Family Wealth 
Unlocked report. Research was carried by Opinium among 
a UK representative sample of 1,000 advised families. The 
study was completed in November 2020. 
[2] Kings Court Trust’s Inheritance Economy Research 
Papers: Passing on the Pounds and Wealth Transfer in the 
UK. Research conducted by The Centre for Economics and 
Business Research.
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 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.
LOOKING FOR AUTHENTICITY IN 
SUSTAINABILITY AND INVESTMENT?
As attitudes continue to change, investors 
are increasingly looking to make a positive 
contribution to society and the environment 
through their personal finances, driving 
us towards a cleaner, healthier and more 
equitable future. ESG considerations regarding 
the investment approach aim to help investors 
do just that. To find out more – speak to us to 
review your options. 
RETIREMENT
Retirement plans  
being put in jeopardy
Pandemic threatens pushing over-50s into pension poverty
More than half (53%) of people in 
their 50s fear running out of money 
in retirement, as they have been the 
most likely to face job and income 
losses of any age group during the 
coronavirus (COVID-19) pandemic 
(23%), according to a new report[1].
FINANCES IMPACTED 
The number of those over age 55 dipping into 
their pension early has increased this year, 
as some have struggled to pay for essentials 
during the pandemic. The report reveals that 
one in three people in their 50s (37%) have seen 
their finances impacted during the pandemic, 
more than any other age group. Faced with job 
losses and their pension contributions falling or 
stopping altogether, 13% now believe they will 
never be able to a!ord to give up work.
To tide them over, an increasing number 
of over-55s have been taking advantage of 
pension freedoms and accessing their retirement 
savings early. In the first three months of 2021 
alone, 383,000 people withdrew money from 
their pension – a 10% jump on the same period 
last year.
COMPANY SCHEME
As well as putting their retirement plans in 
jeopardy, some people may face an unexpected 
Income Tax bill if they continue saving into a 
pension after they have withdrawn money from 
a pension. This could happen for anyone made 
redundant who then re-joins the workforce and 
is enrolled into the company scheme.
Current rules state that savers can put 
£40,000 into their pension each year (including 
employee and employer contributions) and 
receive tax relief on these savings. Basic rate 
taxpayers receive 20% pension tax relief and 
higher rate taxpayers 40% pension tax relief.
LIVING COSTS 
However, once someone accesses their 
pension, no matter how small the amount they 
take out, Money Purchase Annual Allowance 
(MPAA) rules mean the amount they can save in 
a year and still obtain tax relief falls significantly 
to just £4,000 per year. Anything they pay in over 
this limit will attract a bill from the taxman.
The later middle-aged have not enjoyed the 
‘o!setting’ benefits of the pandemic – such as 
a cut on commuting costs and reduced leisure 
activity costs – that other age groups have, with 
only one in six (16%) reporting a decrease in 
living costs compared to a quarter (25%) of those 
in their 20s.
At the same time, one in five workers (17%) in 
their 50s are self-employed, compared to only 
12% of 25-49-year-olds.
20
RETIREMENT
CHALLENGING TIME 
With less job security, a lower income on 
average and well-publicised issues accessing 
government support, COVID-19 has made it a 
challenging time to be self-employed. More than 
half of people who work for themselves have 
seen their finances su!er, compared to 25% of 
permanent employees.
While we’re right to be worried about the lasting 
impact of this pandemic on all age groups, those in 
their 50s need to act urgently to get their savings 
back on track before retirement, having been 
forced to use their existing savings just to get by. 
Source data:
[1] Scottish Widows Retirement Report, the research 
included general questions on pensions and retirement 
planning and was carried out online by YouGov Plc across 
a total of 5,059 adults aged 18+. Data was weighted to 
be representative of the GB population. Fieldwork was 
carried out between 23 March and 3 April 2021 through 
a 15-minute online survey. 5,059 interviews were carried 
out. The sampling criteria were based on four key metrics: 
age, gender, region and social grade.
A PENSION IS A LONG-TERM INVESTMENT NOT 
NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM 
APRIL 2028). THE VALUE OF YOUR INVESTMENTS (AND 
ANY INCOME FROM THEM) CAN GO DOWN AS WELL 
AS UP WHICH WOULD HAVE AN IMPACT ON THE LEVEL 
OF PENSION BENEFITS AVAILABLE. YOUR PENSION 
INCOME COULD ALSO BE AFFECTED BY THE INTEREST 
RATES AT THE TIME YOU TAKE YOUR BENEFITS. 
THE TAX IMPLICATIONS OF PENSION 
WITHDRAWALS WILL BE BASED ON YOUR 
INDIVIDUAL CIRCUMSTANCES, TAX LEGISLATION 
AND REGULATION WHICH ARE SUBJECT TO CHANGE 
IN THE FUTURE. YOU SHOULD SEEK ADVICE TO 
UNDERSTAND YOUR OPTIONS AT RETIREMENT.
ACCESSING PENSION BENEFITS EARLY MAY 
IMPACT ON LEVELS OF RETIREMENT INCOME AND 
YOUR ENTITLEMENT TO CERTAIN MEANS-TESTED 
BENEFITS AND IS NOT SUITABLE FOR EVERYONE. 
YOU SHOULD SEEK ADVICE TO UNDERSTAND YOUR 
OPTIONS AT RETIREMENT.
21
WHAT STAGE OF  
RETIREMENT ARE YOU AT? 
We all have our own idea of the life we’d 
like to lead after we’ve left the 9 to 5 behind. 
Whatever your vision, we’re here to talk you 
through your options. To find out more, please 
contact us.
/// As well as putting 
their retirement plans 
in jeopardy, some people 
may face an unexpected 
Income Tax bill if they continue 
saving into a pension after they 
have withdrawn money from a 
pension. 
/// The number of those over 
55 dipping into their pension 
early has increased this year, as 
some have struggled to pay for 
essentials during the pandemic. 
PROTECTION
What will happen to your 
pension when you die?
Providing an income or nest egg for your loved ones to enjoy, long after you are gone
The way that you decide to take your pension will a#ect what you can do 
with it when you pass away. While it’s not always easy to talk about, the 
way you eventually pass on your pension has the biggest impact on other 
people, so it will help talking to your spouse, children or other people close 
to you when you’re deciding how you take your pension savings.
PENSION DEATH BENEFITS
The type of benefits that can be paid (lump sum 
and/or income options) will depend on the scheme 
rules and the type of arrangement the benefits are 
being paid from. If you have the option to nominate 
whom you want to benefit, this may have an impact 
on the type of death benefits that can be paid.
NOMINATE A BENEFICIARY
You can let your pension provider know whom 
you would want to leave your pension to in the 
event of your death (the nominee) by completing a 
nomination or expression of wish form. While this 
is not binding, it will be taken into account when 
paying death benefits. 
It’s therefore really important to keep this 
information up to date as your wishes and 
circumstances change. Contact your provider and 
ask for a nomination or expression of wish form to 
nominate who should inherit your pension.
ANNUITY DEATH BENEFITS
Rather than have your money die with you, you 
may have selected a guarantee period or a 
joint life option, or both, when you set up your 
annuity. This means an ongoing income will be 
paid to your loved ones for either a set period of 
time – or for the rest of their lives.
FLEXI-ACCESS DRAWDOWN BENEFITS
If you die before age 75 with your money in 
flexi-access drawdown, your spouse, partner, 
dependant or nominated beneficiary can stay in 
the flexi-access drawdown plan and take income 
tax-free and take the remaining value as a lump 
sum tax-free. They could also buy an annuity, 
where income would be paid tax-free.
If you die after age 75 with your money in flexi-
access drawdown, your beneficiary can stay in 
the flexi-access drawdown plan and take income 
subject to tax at their marginal rate. They could 
also take the pension as a lump sum, which will 
be subject to Income Tax at their marginal rate or 
buy an annuity, where income is subject to tax at 
their marginal rate. 
SERIOUS ILL HEALTH
If you’re under the age of 75 and become 
seriously ill (you’re expected to have less than 
12 months to live) you may be able to take your 
whole pension fund as a tax-free lump sum. If 
you’re over the age of 75 in this circumstance 
you may take any remaining pension as a cash 
lump sum, which will be added to your income 
and taxed accordingly.
WHAT HAPPENS TO YOUR STATE PENSION?
When you die, your husband, wife or registered 
civil partner may be entitled to receive some of 
your State Pension entitlements depending on 
individual circumstances. They need to be over 
State Pension age to claim extra payments.
What they receive and how they claim 
will depend on whether they reached State 
Pension age before or after 6 April 2016. 
They will not get it if they remarry or form a 
new registered civil partnership before they 
reach State Pension age. 
If they reached State Pension age on or after  
6 April 2016 they’ll receive the ‘new State 
Pension’ and they may be able to inherit an extra 
payment on top of their pension. 
A PENSION IS A LONG-TERM INVESTMENT NOT 
NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM 
APRIL 2028). THE VALUE OF YOUR INVESTMENTS 
(AND ANY INCOME FROM THEM) CAN GO DOWN 
AS WELL AS UP WHICH WOULD HAVE AN IMPACT 
ON THE LEVEL OF PENSION BENEFITS AVAILABLE. 
YOUR PENSION INCOME COULD ALSO BE 
AFFECTED BY THE INTEREST RATES AT THE TIME 
YOU TAKE YOUR BENEFITS. 
THE TAX IMPLICATIONS OF 
PENSION WITHDRAWALS WILL BE BASED ON 
YOUR INDIVIDUAL CIRCUMSTANCES, TAX 
LEGISLATION AND REGULATION WHICH ARE 
SUBJECT TO CHANGE IN THE FUTURE. YOU 
SHOULD SEEK ADVICE TO UNDERSTAND YOUR 
OPTIONS AT RETIREMENT.
ACCESSING PENSION BENEFITS EARLY MAY 
IMPACT ON LEVELS OF RETIREMENT INCOME AND 
YOUR ENTITLEMENT TO CERTAIN MEANS-TESTED 
BENEFITS AND IS NOT SUITABLE FOR EVERYONE. 
YOU SHOULD SEEK ADVICE TO UNDERSTAND YOUR 
OPTIONS AT RETIREMENT.
22
GETTING READY TO RETIRE?
Professional financial advice can help you 
manage your money before and during 
retirement. To find out more and discuss your 
options – please contact us.
PROTECTION
23
/// You can let your pension provider 
know whom you would want to leave 
your pension to in the event of your 
death (the nominee) by completing a 
nomination or expression of wish form. 
While this is not binding, it will be taken 
into account when paying death benefits. 
FINANCIAL PLANNING
Keeping it in the family
Two in three people accessing advice share same financial adviser as their parents
Never before has there been such a 
big di#erence between the wealth 
of the UK’s older and younger 
generations. The coming years will 
see trillions’ worth of investable 
assets and housing wealth move 
primarily from the Baby Boomer 
generation to their children, the 
Millennial generation.
As families up and down the country 
seek professional financial advice 
to support them with wealth transfer 
and future planning during the 
coronavirus (COVID-19) pandemic, according to 
a new report[1], two-thirds (67%) of people whose 
parents have an adviser also use them.
TALKING OPENLY 
Two-fifths (43%) of respondents said they would 
feel more relaxed about using the same adviser 
as their parents, while a third (34%) said they 
would trust them, and they’d feel relieved. 
But while many families share the same 
professional adviser, the research also highlights 
33% of people whose parents have a financial 
adviser do not also use them. Almost half (47%) 
admitted to ‘talking openly to each other about 
finances’, with only 7% revealing they ‘don’t trust 
their family members’. 
KEY SCENARIOS 
The research highlighted an unexpected 
windfall (24%), receiving an inheritance (24%) 
and preparing for retirement (23%) are the key 
scenarios most likely to prompt people to seek 
advice from a professional financial adviser.
Families are also becoming increasingly aware 
of their legacy and wealth transfer. It appears 
the COVID-19 pandemic has been a contributing 
factor in bringing families together to talk more 
openly about their futures, consider their financial 
goals and begin planning accordingly.
HUGELY ENCOURAGING 
The report highlighted how, especially for the 
younger generations, the need for financial 
support and guidance is most pronounced. It 
is hugely encouraging that many people are 
seeking the services of the same professional 
financial adviser as another family member at 
some stage during their life. 
And, with around 86% of those seeking advice 
actively doing so in the last five years, it seems the 
value of advice is increasingly being understood. 
Source data:
[1] Family Wealth Unlocked report from Prudential 
UK. Research was carried by Opinium among a UK 
representative sample of 1,000 advised families. The 
survey was completed in November 2020. 
24
LOOKING FOR ADVICE  
TAILORED TO YOUR CURRENT  
SITUATION AND FUTURE HOPES?
We’ll make sure your money is working as 
hard as you are. The services we o!er are 
built around your specific needs, with advice 
tailored to your current situation and future 
hopes. To find out more, speak to us to 
review your options. 
/// Two-fifths (43%) of respondents 
said they would feel more relaxed 
about using the same adviser as 
their parents, while a third (34%) 
said they would trust them, and 
they’d feel relieved. 
RETIREMENT
Coronavirus alters  
retirement plans
One in eight older workers extend their planned retirement age
The coronavirus (COVID-19) crisis has disrupted many people’s working 
lives in ways we couldn’t have imagined. It’s been deeply worrying to see 
some people now planning to retire earlier than they intended – including 
many who have been on furlough. 
That’s fine where it’s a positive choice, 
but for some it won’t be and will leave 
them poorer or in financial di#culty 
in later life. We know that once out of 
work, over-50s struggle more than any other 
group to get back into employment.
NEW WORKING PRACTICES 
Analysis has highlighted that one in eight 
older workers (13%) have already changed 
their planned retirement age as a result of the 
coronavirus (COVID-19) pandemic, with 8% now 
planning to retire later than they had previously 
intended[1].
Some people are now looking to work for 
longer to make up for a fall in their wealth, while 
others want to do so because new working 
practices make staying in work easier or more 
appealing. 5% are planning to retire earlier than 
they had previously intended – with this being 
more common among wealthier households 
and those on furlough. 
WORSENING FINANCIAL SITUATION
Almost a third of older workers report that their 
financial situation has worsened as a result of 
the pandemic, with those who were, in any case, 
struggling financially much more likely than those 
who are better o! to report a worsening in their 
financial situation. 
This suggests that COVID-19 has widened 
financial inequalities within the older population. 
It is also notable that many more older workers 
are worried about their future financial situation 
than are those who are already retired.
WEATHER INCOME SHOCKS
A significant minority of older people working 
immediately before the pandemic are now 
retired – 6% of those aged between 66 and 
70 and 11% of those aged 71 and older. While 
some may have been planning to retire around 
this time anyway, this is not true of all. 
Not all older individuals have wealth to help 
them weather income shocks. Among those 
whose income has fallen since the outbreak 
of the pandemic, 23% have household net 
financial wealth of less than £500 per person. 
In response to their falling incomes, 5% have 
drawn on pension savings, 4% have borrowed 
from a bank and 5% have borrowed from 
family or friends.
FUTURE FINANCIAL SITUATION
Fluctuations in stock markets will have impacted 
the growing minority of older people who hold 
some wealth in equities. Around 34% of older 
workers and 41% of retirees hold wealth directly 
in risky assets, while 54% of older workers have 
defined contribution pensions. Wealth will be 
permanently reduced if individuals draw on it 
before asset prices recover.
As would be expected, concerns are 
strongly related to wealth, with just over half 
(52%) of the poorest fifth of the population 
worried about their future financial situation, 
compared with only just over one in ten of 
those in the wealthiest fifth. 
Source data:
[1] Findings from two new briefing notes published by 
the Institute for Fiscal Studies (IFS), funded by the Centre 
for Ageing Better (on older adults’ work activities and 
expectations) and by UK Research and Innovation (on the 
financial consequences of the crisis for older adults). The 
analysis draws on new data from the English Longitudinal 
Study of Ageing (ELSA) COVID-19 study. This specially 
conducted survey, made possible with funding from UK 
Research and Innovation, the US National Institute of 
Aging and a consortium of UK government departments, 
interviewed adults in their 50s and older in June to July 2020. 
25
WANT TO UNDERSTAND  
YOUR OPTIONS FOR RETIREMENT?
Whatever situation you find yourself in, we help 
you to understand your options for retirement 
and later life and look at how to plan for your 
future cash flow needs. To find out more, 
please contact us.
FINANCIAL PLANNING
Planning for a 
better financial future
Have you made sure your plans are still on track?
It’s been nearly two years since the first novel coronavirus (COVID-19) 
case was detected. The economic impact of the pandemic has not been 
equally distributed amongst all adults and, where inequalities existed 
before the pandemic, these may have been widened or closed. 
The pandemic has caused a drop in 
household income for around a third of 
all UK adults according to a Financial 
Conduct Authority (FCA) survey[1].
But what lessons can be learnt about how 
attitudes towards our personal finances may 
need to change? You might want to start thinking 
about even the smallest changes you could 
make to put yourself in a better financial situation 
in the future.
DO I HAVE AN EMERGENCY  
FUND I CAN ACCESS QUICKLY?
While the pandemic is surely not an everyday 
occurrence, it could happen again and therefore 
it makes sense to have an emergency fund to 
cover essential spending for at least three to six 
months that can be accessed quickly. 
If you have money set aside for emergencies, 
you’re far less likely to experience financial 
di#culties or have to borrow at a high interest 
rate if things go wrong or your circumstances 
change. The impact of COVID-19 surprised 
everyone, and it’s definitely been a very 
challenging time financially for many families.
If you already have an emergency fund in 
place and you’re able to still contribute, you 
might consider continuing to put money into it to 
give yourself a financial cushion in light of these 
uncertain times.
But if you don’t have an emergency fund to 
fall back on, now is the time to start building one. 
Knowing you’ve got some money tucked away 
might help you sleep better at night too.
DO I HAVE LIFE INSURANCE COVER 
ALONGSIDE MY DEATH IN SERVICE?
In the future, what if your employer releases 
you as part of the lay-o!s forced by something 
like the COVID-19 pandemic? If you have death 
in service benefit from your employer, it’s 
understandable to question whether you really 
need a separate life insurance policy.
However, it’s generally a good idea to have life 
insurance cover alongside your death in service 
benefit. For example, even if you have a generous 
employer, the payout from the death in service 
cover may not be enough to pay o! your mortgage 
in its entirety. And even if it does, it may leave your 
loved ones with only a small amount left over to 
cover the various other costs they will have to deal 
with after you have passed away, from your funeral 
to getting by without your regular income.
There’s also the fact that very few of us stay 
in the same job for our entire working lives. So 
while you may have a generous scheme in place 
currently, you could move to a new job with 
a better salary but which has smaller death in 
service protection, or even no cover at all.
Having a dedicated life insurance policy 
protects you against that variance, ensuring that 
your loved ones are financially protected in all 
eventualities should you pass away. Any death in 
service payout can then be viewed as a bonus.
AM I COVERED FOR LOSS  
OF INCOME IF I’M UNABLE TO WORK?
Regardless of your age, health, level of financial 
independence or homeowner status, you 
are most likely to have some form of regular 
financial outgoings.
You might need income protection insurance 
if you are self-employed, are employed but your 
employer o!ers limited sickness benefits, have 
limited savings, have dependants or people 
relying on your income or you are single and 
responsible for all household expenses
Income protection insurance provides a monthly 
replacement income, tax-free, if you are forced to 
stop work for a specified medical reason. It can pay 
out for stress-related or mental health illnesses, as 
well as physical or sudden health conditions such 
as back pain, cancer or a stroke. 
Income protection gives you the peace of 
mind that your bills will be paid if you are o! work 
due to illness or injury. Typically you are covered 
until retirement or returning to work, depending 
on the policy taken out. 
Most people in the UK are eligible for up to 28 
weeks’ statutory sick pay, funded by the government, 
if they are too ill to work. But this is currently only 
£96.35 a week (tax year 2021/22), which is why some 
form of personal insurance could be needed. 
Source data:
[1] https://www.fca.org.uk/insight/gender-personal-
finances-and-covid-19#:~:text=The%20pandemic%20
has%20caused%20a,changes%20in%20their%20
financial%20situation.
26
ARE YOUR PLANS ON TRACK  
FOR THE FUTURE YOU WANT?
You have meaningful goals. We can help you 
achieve them. No matter what you want to 
accomplish, our focus starts and ends with 
you. We’ll work with you to provide ongoing, 
comprehensive planning and advice to help 
you succeed. Speak to us today and make sure 
your plans are on track for the future you want.
FINANCIAL PLANNING
27
/// If you have money set aside for 
emergencies, you’re far less likely 
to experience financial di!culties 
or have to borrow at a high interest 
rate if things go wrong or your 
circumstances change. The impact 
of COVID-19 surprised everyone, 
and it’s definitely been a very 
challenging time financially 
for many families.
Published by Goldmine Media Limited
Rivers Lodge, West Common, Harpenden, Hertfordshire, AL5 2JD. 
Content copyright protected by Goldmine Media Limited 2021. Unauthorised duplication or distribution is strictly forbidden. 
INFLATION
Easing of lockdowns boosts consumer confidence and unleashes pent-up demand
Understanding inflation is an important factor when it comes to your 
financial success. If you don’t factor inflation in when deciding where to put 
your money – whether that’s savings accounts or investing – you could find 
your wealth shrinks over the years.
The current causes of higher inflation 
are largely COVID-related. The easing 
of lockdowns has boosted consumer 
confidence and unleashed pent-
up demand. At the same time, bottlenecks 
in production and distribution are squeezing 
supplies – from building materials to foodstu!s. 
This supply and demand imbalance has forced 
up some prices.
The rate of inflation is the change in prices 
for goods and services over time. On 18 August, 
the O#ce for National Statistics reported the 
Consumer Prices Index measure of inflation saw a 
surprise slowdown in the year to July, down to the 
Bank of England’s target of 2% from 2.5% in June.
GROWING REALISATION
A sustained period of low inflation may have 
blunted some people’s concerns about inflation. 
But there’s now a growing realisation that high 
inflation could be around the corner, which 
reduces your purchasing power and what you 
could buy with your savings over time.
Some investors and savers may underestimate 
the damaging e!ects of inflation on their 
wealth. Keeping money in the bank typically 
earns interest, but if the interest rate is lower 
than inflation, money or purchasing power is 
e!ectively being lost.
PENSION SAVERS
People on fixed incomes – such as those whose 
pensions aren’t inflation-linked or workers on 
a static wage – are especially vulnerable to 
the e!ects of inflation. As living costs rise, your 
money doesn’t go so far.
Pension savers need to think about what their 
savings might be worth during retirement – often 
a long time into the future. Inflation can make the 
di!erence between an enjoyable retirement and 
a frugal, worrisome one.
ABOVE-INFLATION RETURNS
That’s why you should consider mitigating the 
e!ects of inflation by investing at least some of 
your money in assets that aim to o!er above-
inflation returns.
Arguably, we can expect inflation to settle 
back to lower levels once the post-pandemic 
surge in demand has been sated and supply 
chains are smoothed out. But even so, with the 
global economy poised for a strong rebound, 
most central banks are keen to get back to 
‘normal’ monetary conditions. So rock-bottom 
interest rates can’t last forever.
GOOD INVESTMENT
Bonds and other assets that pay a fixed income 
and/or a fixed investment return are especially 
vulnerable to inflation. Bonds become less 
valuable as inflation and interest rates rise, 
reflected in falling bond prices and rising yields.
Conversely, shares are generally a good 
investment during periods of modest inflation. 
A company’s fortunes typically track consumer 
demand and economic growth. If demand is strong, 
companies can raise prices, boosting the profits from 
which they pay dividends to their shareholders.
TRACK RECORD 
Besides shares, there are other assets with 
a track record of doing well during times of 
moderate inflation. These include infrastructure 
assets, where income streams increase as 
demand grows and the assets mature.
Likewise, gold and other commodities can be 
useful stores of value to hedge against inflation. 
So the good news is that it is possible to get an 
inflation-beating return on your savings, as there 
are di!erent investment opportunities. However, 
these involve taking on a little more risk than with 
a cash savings account. 
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 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. THE 
FINANCIAL CONDUCT AUTHORITY DOES NOT 
REGULATE TAXATION & TRUST ADVICE.
TIME TO DISCUSS MITIGATING THE 
IMPACT OF INFLATION ON YOUR 
FINANCIAL PLANS?
Inflation doesn’t just a!ect our everyday 
expenses, but could also impact our savings, 
investments and pensions. To discuss how we 
can help you plan to mitigate the impact of 
inflation on your financial plans, please contact 
us – we look forward to hearing from you.
What’s happening with inflation?