Show Me The Money

The latest edition of our magazine delivers a broad spectrum of financial advice including tip for a health pension, savings, dealing with the cost of living crisis, avoiding costly mistakes when investing and how to improve your financial health.
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.
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About Tudor Franklin IFA

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INFLATION EATING  
YOUR SAVINGS?
How to bene!it from tax reliefs 
in the current !inancial year
TIPS FOR A HEALTHY PENSION 
AS YOU APPROACH RETIREMENT
What really important retirement 
questions should you be asking?
RISING COST OF 
LIVING CRISIS 
3 tips to maintain your 
!inancial wellbeing
SHOW ME
THE MONEY
HOW TO INVEST YOUR MONEY  
AND AVOID COSTLY MISTAKES
JULY/AUGUST 2022
Welcome to our latest edition. It’s not surprising 
that the world of investing can seem complex, 
especially in the current global economic climate. 
Investors face an endless supply of market news, 
many investment choices and often-changing market 
conditions. There are a number of key principles that 
every investor should follow with the aim of building 
an e!ective long-term strategy designed to achieve 
their "inancial goals. On page 08 we look at ten 
principles that every investor needs to know.
As your income increases, the complexity of your 
"inances may too. Tax-e#iciency is a key consideration 
when investing because it can make such an 
enormous di!erence to your wealth and quality of life. 
However, the type of investment and tax-e#iciency 
you should be looking for depends on whether your 
priority is to save a lump sum for the future or to draw 
an income today. On page 11 we consider a number 
of allowances and reliefs available to UK taxpayers to 
help reduce your overall tax bill.
As you approach the last "ive years before your 
retirement, there will be a lot of things to consider. You’ll 
need to think about your "inances, your health, your 
housing situation and your plans for the future to live 
comfortably in retirement. There will also be lots of 
questions to ask and a number of things to review in 
order to ensure you have a comfortable and enjoyable 
retirement. Turn to page 12 to read the full article.
The rising cost of living is one of the most pressing 
issues facing many families today. The price of food, 
energy, fuel and other necessities has risen signi"icantly 
in recent months. This has made it di#icult to make 
ends meet and has put a strain on many household 
budgets. As many people feel the squeeze as the cost 
of essential items continues to increase, there are a few 
important things to consider to maintain your "inancial 
wellbeing. Read the article on page 05.
A full list of the articles featured in this issue  
appears opposite.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION 
LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS 
FROM, TAXATION ARE SUBJECT TO CHANGE.
THE VALUE OF INVESTMENTS MAY GO DOWN AS WELL AS UP, AND YOU MAY 
GET BACK LESS THAN YOU INVESTED.
INSIDE 
THIS ISSUE
JULY/AUGUST  2022
The content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety 
and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date 
it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their 
particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance 
Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you 
may get back less than you invested. Past performance is not a reliable indicator of future results. The Financial Conduct Authority does not regulate tax advice, estate planning, or Will writing.
CONTENTS
04
WEALTH VS HEALTH
More than half ignore medical advice 
and work despite poor health due to 
"inancial worries
05
RISING COST OF LIVING CRISIS 
3 tips to maintain your "inancial 
wellbeing
06
MANAGING THE IMPACT  
ON YOUR PENSION
Just two out of "ive have planned for 
in"lation in retirement
07
SELF!EMPLOYED VULNERABLE TO 
FINANCIAL SHOCKS 
New research highlights that 81% aren’t 
seeking "inancial advice
08
SHOW ME THE MONEY
How to invest your money and avoid 
costly mistakes
10
COST OF ‘SAVER INACTION’
Millions of savers think in"lation will leave 
them better o!
11
INFLATION EATING YOUR SAVINGS?
How to bene"it from tax reliefs in the 
current "inancial year
 12
TIPS FOR A HEALTHY PENSION AS 
YOU APPROACH RETIREMENT
What really important retirement 
questions should you be asking?
FOCUSING ON WHAT’S IMPORTANT AND 
GIVING YOU THE FREEDOM TO ENJOY LIFE
 Whatever your questions or your life goals, we’re 
here to give you the answers you need, allow 
you to focus on what’s important and give you 
the freedom to enjoy life, wherever it may take 
you. If you would like to discuss your concerns 
or requirements, please contact us. We hope you 
enjoy reading this issue.
CONTENTS
14
SIGNS YOU’RE REALLY READY TO RETIRE
No one-size-"its-all answer to this question
16
HOW TO REDUCE INHERITANCE  
TAX BY LEAVING A GIFT
Planning for your wealth preservation and  
the eventual transfer of that wealth
18
WHAT DOES INFLATION MEAN  
FOR ME AND MY MONEY?
How to protect and grow your wealth over time
19
RECESSION!PROOF YOUR FINANCES
10 practical steps to ensure your money is 
working hard for you
20
PENSION POVERTY AFTER DIVORCE
Ensuring an equal division of all the assets within 
the matrimonial pot
22
HOW MUCH WILL YOU NEED TO RETIRE? 
Quarter of savers approaching retirement at risk 
of not having an ‘adequate pension’
24
STARTING A FAMILY
What steps to take to prepare "inancially
25
HOW TO IMPROVE YOUR FINANCIAL HEALTH
General principles to help you attain  
speci"ic goals
26
MIDLIFERS SET TO BE IMPACTED TWICE BY 
THE COST OF LIVING
Financial planning essential to help balance 
priorities
04 PROTECTION
MORE THAN HALF IGNORE MEDICAL ADVICE AND WORK 
DESPITE POOR HEALTH DUE TO FINANCIAL WORRIES
When you are o"f work due to an illness or injury, worries about how you 
are going to pay your bills can make an already stressful situation worse. 
So much so that many people are "inding themselves in the very di""icult 
position of having to put the need to earn money over their health by 
continuing to go to work, even when advised not to by a doctor. 
TIME TO DISCUSS INSURANCE THAT 
WORKS WHILE YOU CAN’T?
Consider how you’d cover your usual monthly 
costs if you were ill or injured and couldn’t 
work for a while. Would you be able to carry 
on paying the bills using Statutory Sick Pay or 
your savings? If not, it’s worth thinking about 
insurance. To "ind out more, please contact us.
WEALTH VS HEALTH
Worse still, "inancial concerns mean 
some are avoiding seeing their GP 
altogether, even when concerned 
they may have a serious illness. Money worries 
see six in ten people go to work when they 
are ill, with one in three ignoring their doctor’s 
advice due to "inancial concerns, even when 
they are worried about serious illness, according 
to new research[1]. 
NO FINANCIAL PROTECTION IN PLACE 
Three in ten people have no "inancial protection if 
they were o! work should they fall ill or become 
injured, while 27% could "inancially only last for 
a month. The "indings highlight that sick and 
injured Britons are forcing themselves back into 
work, despite doctors’ advice, due to having no 
"inancial protection in place. 
Nearly a third (32%) admitted to not following 
their doctor’s advice because they couldn’t a!ord 
to take time o!, while 43% would put o! going to 
the doctors due to "inancial concerns – even if 
concerned they may have a serious illness.
NEGATIVE IMPACT ON MENTAL WELLBEING
The research also highlights that while nearly 
half (49%) say they would bene"it from a policy 
that would cover their income if o! work for 
an extended period, just 27% actually have any 
income protection cover in place, with 32% 
unaware of what such a policy is.
Money worries can have a negative impact on 
people’s mental wellbeing, with nearly two-thirds 
(64%) of those surveyed saying they fret about 
how they would cope "inancially if they needed 
to take four weeks or more o! work due to poor 
health.
SICK AND ON A REDUCED INCOME
Three in ten (30%) surveyed have nothing in 
place to support them "inancially should they be 
ill or injured, while 29% would rely on Statutory 
Sick Pay, which at £99.35 per week for up to 28 
weeks (tax year 2022/23), pays much less than 
many people need to cover the cost of living, 
which continues to rise.  
If on long-term sick pay and on a reduced 
income, many would use their existing savings 
(45%), make reduced payments (33%), borrow 
money from family or friends (25%), or use a 
credit card or loan (15%). However, during the 
pandemic a third (34%) of people had already 
dipped into their savings, meaning they may now 
have less to fall back on. 
LONGER!TERM FINANCIAL IMPACTS
As a result of this situation, more than half (55%) 
admit they could only survive for three months, 
while more than a quarter (27%) would struggle 
after just one month. The additional "inancial 
pressures of being o! sick for four weeks or more 
could push people to prioritise their household 
expenditures. The top "ive things that the 
people surveyed prioritise include utilities (67%), 
mortgage/rent (65%), food (56%), insurance i.e. car/
home/pet (15%) and internet/broadband (13%).
As well as the immediate impact of long-term 
sickness, many people are also concerned about 
the longer-term "inancial impacts, with almost half 
(49%) of those surveyed saying they worry about 
the impact on their ability to get credit in future. 
This is particularly an issue for the self-employed, 
where 43% worry about losing customers and 
just over a third (36%) worry that their business 
would have to fold. 
Source data:
[1] Survey conducted by Censuswide for 
Nationwide between 10!14 February of 2,003 
people who are self-employed or employed but 
receive Statutory Sick Pay when o" work through 
illness or injury.
///  N E A R LY  A  T H I R D  ( 32%) 
ADMIT TED  TO  NOT  FOLLOWING 
THEIR  DOC TOR’ S  ADVICE 
BEC AUSE  THEY  C OULDN ’ T 
A F FO R D  TO  TA K E  T I M E  O F F, 
WHILE  43% WOULD  PUT  OFF 
GOING  TO  THE  DOC TOR S  DUE 
TO  F I N A N C I A L  C O N C E R N S  !
EVEN  IF  C ONCERNED  THEY 
MAY  HAVE  A  SERIOUS  ILLNE SS .
FINANCIAL PLANNING  05
3 TIPS TO MAINTAIN YOUR FINANCIAL WELLBEING
The rising cost of living is one of the most pressing issues facing many 
families today. The price of food, energy, fuel and other necessities has risen 
signi"icantly in recent months. This has made it di#icult to make ends meet and 
has put a strain on many household budgets.
Planning for the rising cost of living can be 
a challenge, especially if your income isn’t 
keeping up with in"lation. As many people feel 
the squeeze as the cost of essential items continues 
to increase, there are a few important things to 
consider to maintain your "inancial wellbeing.
1. REVIEW SPENDING
The rising cost of living can be a real problem, 
especially if you’re not mindful of your 
spending. Going through your spending 
with the "inest tooth comb can help you "ind 
areas where you may be able to cut back, 
and save money in the long run. Keep an eye 
on your budget and make adjustments as 
necessary to ensure that you are aware of your 
outgoing costs and can adapt your spending 
accordingly. Being able to see exactly where 
your money’s going will help you to pin down 
where you can make savings and cuts. 
Ask yourself: What’s coming in and going 
out? Can I get something for cheaper? And 
(often the hardest of all): Do I really need that? 
Look at the money you have coming into 
your home – whether that’s just you or with 
someone else. You want to look at every single 
thing that’s going out (there may be a lot more 
than you think).
2. EMERGENCY SAVINGS
When it comes to "inancial security, one of the 
most important things you can do is to keep 
emergency savings aside for when you need 
them. Having a nest egg that you can tap into 
in times of need can help you weather a storm. 
One method is to create a dedicated savings 
account that you only use for this purpose. 
This way, you can easily access the funds when 
you need them but they remain out of reach 
for everyday spending.
Aim to build up enough to cover between 
three to six months’ expenses, or as much as 
you can a!ord. The best thing to do is make 
room for your savings in your budget as one of 
your outgoings. By doing so, it’ll help you see 
your savings as a must, rather than a must-
do-later. And if you can, set up an automated 
payment from your normal bank account 
straight into your savings account – that way 
you don’t even need to think about it.
3. PENSIONS AND INVESTMENTS 
As many people across the country are feeling 
the squeeze of a cost of living crisis, it’s more 
important than ever to make sure your "inances 
are in good shape. One way to do this is by 
making sure you don’t touch your pension or 
investments. While it may be tempting to dip 
into these savings to help make ends meet in 
the short term, it’s important to think about 
the long-term impact this could have on your 
retirement plans.
Drawing down on your pension or selling 
investments could leave you worse o"f in the 
long run, so it’s important to consider all of 
your options before making any decisions. 
Consolidating your old pensions into one could 
help you cut down on management fees and 
give you a better picture of how your "inances 
are looking. But before transferring your 
pensions it is essential to obtain professional 
"inancial advice. 
RISING COST  
OF LIVING CRISIS 
DON’T FORGET YOUR LONG!TERM 
FINANCIAL SECURITY
It’s important to think about the long term when 
it comes to your "inances. Making short-term 
decisions could jeopardise your long-term "inancial 
security. To discuss your situation or plans or for 
further information, please contact us.
/// WHEN IT COMES TO 
FINANCIAL SECURITY, ONE OF 
THE MOST IMPORTANT THINGS 
YOU CAN DO IS TO KEEP 
EMERGENCY SAVINGS ASIDE 
FOR WHEN YOU NEED IT. 
JUST TWO OUT OF FIVE HAVE PLANNED  
FOR INFLATION IN RETIREMENT
Retirement planning can be complex at the best of times, so it is easy to 
understand how some people can "ind it daunting to take into account factors 
like in"lation. The reality is that in"lation hurts everyone, but it can be especially 
harmful to retirees.
Whether it’s the price of food, fuel, 
energy or other goods and services 
that we purchase, in"lation is de"initely 
increasing. The current economic climate clearly 
illustrates just how important it is to consider 
the impact of in"lation on your future retirement 
income and take proactive steps to manage this.
 
REACHING HISTORIC HIGHS
Just two out of "ive (37%) over-55s have planned 
for the impact of in"lation on their spending power 
when they stop work, according to new research[1]. 
As the consumer price in"lation continues to 
reach historic highs, many over-55s who are either 
approaching retirement or have retired are facing 
an in"lation shock as they try to manage their 
retirement income. 
Indeed, 41% admitted they had not planned for 
in"lation or did not know whether they had. The 
other 22% say they just have not planned their 
retirement income at all. Interestingly, the current 
discussion around in"lation has impacted people’s 
approach to retirement, with 43% of those who are 
working full-time planning to factor this challenge in 
– up from 39% of those who have already retired.
RETIREMENT SPENDING POWER 
The current challenging economic situation is 
also encouraging a more thoughtful approach 
to retirement, with only 15% of the employed 
confessing to a lack of retirement planning 
compared to 23% of those who are already retired.
Among those who say they have planned 
for the impact of in"lation on their retirement 
spending power, more than a third (34%) say they 
can rely on the State Pension keeping pace with 
rising prices while 33% believe their company 
pension will rise in line with in"lation. 
INFLATION ROSE SHARPLY
As well as looking to the State Pension and 
company pensions, the 30% of those who have 
prepared for in"lation say they have anticipated 
the need for their income to rise each year and 
have approached their savings accordingly.
Around a quarter (26%) say they have 
considered how much spending they might 
need to cut if in"lation rose sharply.  The main 
reason for failing to take account of in"lation was 
its unpredictability – 31% say they did nothing 
because they could not forecast it, while 30% say 
they had been caught out by the recent increase 
in in"lation after years of stability.
 
EXPLORE DIFFERENT OPTIONS
The importance of future proo"ing your "inances 
is clearly moving up the agenda and when you 
compare retirees with those over-55s who are still 
working, you can see that the recent in"lation shock 
has encouraged people to plan more carefully. 
No one wants to "ind that as they age, they 
need to cut back more and more just to make 
ends meet. While saving as much as possible 
for retirement and careful planning is clearly 
important, it is also vital to consider all your 
assets and to explore di!erent options, whether 
it is boosting your tax-free savings, downsizing or 
accessing your housing equity. 
Source data:
[1] Key Advice 18 May 2022.
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.
CONCERNED ABOUT HOW  
INFLATION COULD AFFECT  
YOUR RETIREMENT PLANS?
Deciding when to retire is a potentially 
life-changing decision and can feel like a 
daunting leap. It’s never too early to start 
thinking about how you should plan to fund 
your retirement and take into account the 
impact of rising in"lation on those plans. To 
"ind out more, please contact us.
MANAGING THE IMPACT  
ON YOUR PENSION
06  RETIREMENT
NEW RESEARCH HIGHLIGHTS THAT 81% AREN’T SEEKING FINANCIAL ADVICE
As more and more people reject the traditional working structure in 
favour of becoming self-employed, some people could be at risk of "inancial 
insecurity as they lose out on employee bene"its that o"fer protection in the 
present, and "inancial planning for the future.
New research highlights this group’s 
vulnerability to "inancial shocks and the 
importance of expert "inancial advice to 
open up conversations to ensure that all aspects 
of protection are discussed, and that the right 
solutions are in place to help create "inancial 
peace of mind.  
FACING FINANCIAL HARDSHIP 
If you are self-employed, you may not 
have the same safety net as those who are 
employed by someone else. If you become 
sick or injured and are unable to work, you 
could face "inancial hardship without income 
protection insurance.
Income protection insurance could help 
replace your lost income if you are unable to 
work due to an illness or injury. It can give you 
peace of mind knowing that you will still be able 
to meet your "inancial obligations even if you are 
unable to work.
SEEKING FINANCIAL ADVICE 
Over half (57%) of self-employed workers in 
the UK rely on personal savings when they are 
not working, yet a massive 81% aren’t seeking 
"inancial advice according to new research[1]. 
Nearly two-thirds (64%) of those who are self-
employed in the UK revealed they are without 
a regular income, with just one in "ive (23%) 
receiving a monthly pay packet.
The research also found that almost half 
(48%) of self-employed people see their 
income "luctuate as a result of owning their 
own business, with a similar proportion (49%) 
putting this down to being a freelancer, 
contractor or consultant.
VULNERABILITY TO FINANCIAL SHOCKS 
As the cost of living rises and private rents and 
mortgages in the UK increase at the fastest 
rate in "ive years, a quarter (24%) of those 
surveyed said they only had enough money to 
cover such costs for three months if they were 
unable to work.
With the research highlighting the group’s 
vulnerability to "inancial shocks and the 
importance of expert "inancial advice, worryingly 
one-quarter (24%) say they hadn’t thought about 
seeking professional advice.
SECURE FINANCIAL PROTECTION 
Not being eligible for Statutory Sick Pay (SSP) 
can prove a real problem for the self-employed 
and their "inancial resilience – during the 
pandemic, a "ifth (21%) of all applications to the 
Test and Trace Support Payment scheme were 
from this group, according to a Freedom of 
Information request by The Community Union.
And while many have taken steps to 
secure "inancial protection for themselves 
and their families, 13% of self-employed 
workers in the UK still don’t have critical 
illness cover or life insurance.  
Source data:
[1] The research was carried out online by 
Opinium Research across a total of 2,002 UK
adults (booster sample of 502 self-employed 
workers and 1,015 renters). Fieldwork was
carried out between 21!27 October 2021.
NOT SURE WHAT YOU NEED?
When you’re self-employed or a contractor, 
you get the perk of being your own boss, but 
you wave goodbye to traditional employee 
bene"its like company sick pay. To discuss 
how we can help protect your future "inancial 
wellbeing and to discuss the options available 
to you, please contact us for more information.
SELF$EMPLOYED VULNERABLE 
TO FINANCIAL SHOCKS 
///  I F  YO U  A R E  S E L F"
EMPLOYED,  YOU  MAY 
NOT  HAVE  THE  S AME 
SA F E T Y  N E T  A S  T H O S E 
WHO  ARE  EMPLOYED  BY 
SO M EO N E  E L S E . 
FINANCIAL PLANNING  07
HOW TO INVEST YOUR MONEY  
AND AVOID COSTLY MISTAKES
It’s not surprising that the world 
of investing can seem complex, 
especially in the current global 
economic climate. Investors face 
an endless supply of market news, 
many investment choices and 
often-changing market conditions.  
SHOW ME  
THE MONEY
There are a number of key principles that 
every investor should follow with the aim 
of building an e!ective long-term strategy 
designed to achieve their "inancial goals. 
HERE’S OUR RUNDOWN OF THE 10 PRINCIPLES 
THAT EVERY INVESTOR NEEDS TO KNOW:
1. SET INVESTMENT GOALS
   It’s important that you set yourself investment 
goals – this will help you stay focused and on 
track to achieving your "inancial objectives – 
with a well-structured plan in place, you can 
con"idently stay committed to it. 
   There are a number of factors to consider 
when setting your goals, such as your age, 
investment timeframe and risk tolerance.
2. PLAN ON LIVING A LONG TIME, AND 
SAVING MORE FOR IT
   People aged 65 years in the UK in 2020 
can expect to live on average a further 19.7 
years for males and 22.0 years for females, 
projected to rise to 21.9 years for males and 
24.1 years for females aged 65 years in 2045[1]. 
   Investors should start early, invest with 
discipline and have a plan for their future.
3. CASH IS RARELY KING, AND INFLATION 
EATS AWAY AT YOUR PURCHASING POWER
   Cash is a popular asset class, but it’s 
important to remember that it is not always 
king – in"lation can erode the purchasing 
power of your cash, making it a less attractive 
option in the long run.
///  T H E R E  A R E  A  N U M B E R  O F  K E Y 
PRINCIPLE S  THAT  EVERY  INVE STOR 
SHOULD  FOLLOW  WITH  THE  AIM  OF 
BUILDING  AN  EFFEC TIVE  LONG "TERM 
ST R AT EGY  D E S I G N E D  TO  AC H I E V E 
T H E I R  F I N A N C I A L  G OA L S . 
08 INVESTMENT
   When in"lation is taken into account, cash 
typically lags behind other asset classes such 
as stocks and bonds, which can mean that 
over time, cash will generally be worth less in 
terms of purchasing power.
4. START EARLY AND RE!INVEST INCOME # 
COMPOUNDING WORKS MIRACLES
   Compounding is often called the eighth 
wonder of the world – by starting to invest 
early and reinvesting your income, you can 
take advantage of compounding to build your 
wealth over time.
   The power of compounding is so great 
that delaying investing by even just a few 
years, or choosing not to reinvest income, 
can make an enormous di!erence to your 
eventual returns.
5. RETURNS AND RISKS GENERALLY GO HAND 
IN HAND, SO BE REALISTIC ABOUT YOUR 
OBJECTIVES AND WHAT YOU CAN ACHIEVE
   Of course, you always want to aim for the 
highest possible return while taking on the 
least amount of risk. But in reality, there is 
usually a trade-o"f involved – the higher the 
potential return, the higher the risk. And 
vice versa.
   Therefore, if you want to target a higher level 
of return, you have to be willing, and able, to 
tolerate larger swings in the value of your 
investments along the way.
6. VOLATILITY IS NORMAL, SO KEEP  
YOUR HEAD WHEN ALL ABOUT YOU ARE 
LOSING THEIRS
   Volatility is a normal part of the market, so don’t let 
it rattle you – keep your head when all about you 
are losing theirs, and remember that the best time 
to invest is often when others are panicking. 
   So don’t panic when the markets are down. 
Instead, stay calm and focused on your long-
term goals. 
7. TIMING THE MARKET IS DIFFICULT, 
STAYING INVESTED MATTERS
   It’s no secret that timing the stock market is 
di#icult. In fact, it’s often said that trying to 
time the market is a fool’s errand. By staying 
invested you ensure that you’re participating 
in the long-term growth of the market, which 
helps to mitigate the e!ects of volatility. 
   Staying invested in the market allows you to 
take advantage of opportunities as they arise. 
By staying invested, you’ll be in a position to 
buy when prices are low and sell when prices 
are high.
8. DIVERSIFICATION WORKS: DON’T PUT ALL 
YOUR EGGS IN ONE BASKET
   By spreading your money across di!erent 
investments, you can minimise your risk and 
maximise your chances of success.
   Over time, di!erent investments will tend to 
even out, so the aim is to grow your money 
even if some investments underperform due 
to market movements.
9. REVIEW YOUR PORTFOLIO
   Reviewing your investment portfolio allows 
you to monitor your progress and ensure that 
your investments are performing as expected, 
giving you the opportunity to make changes 
to your portfolio if necessary.
   It helps you stay disciplined and focused on 
your long-term goals.
10. IF IT SEEMS TOO GOOD TO BE  
TRUE, IT USUALLY WILL BE
   Promises of high returns with little or no risk are 
almost always too good to be true – there are a 
lot of scams out there, and many people looking 
to take advantage of unsuspecting investors.
   Before investing, consult with a "inancial 
professional to help you understand the 
risks involved.
Source data:
[1] The O#ice for National Statistics (ONS) – 
Past and projected period and cohort life tables: 
2020-based, UK, 1981 to 2070
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.
WHAT ARE YOUR LONG!TERM  
WEALTH PRIORITIES?
Whatever your long-term wealth priorities, our 
"irst investment will always be in understanding 
your priorities and building a personal 
relationship with you. To discuss your plans or 
for further information, please contact us.
INVE STMENT  09
MILLIONS OF SAVERS THINK INFLATION WILL LEAVE THEM BETTER OFF
Despite in"lation reaching its highest rate for many decades, some people 
in the UK are not aware of its impact on their "inances. More than half of all cash 
savers (52%) don’t know what impact in"lation will have on the real value of their 
cash savings over time. 
One in ten (13%) incorrectly believe 
in"lation will leave them better o! and 
13% think the real value of their savings 
would stay the same, according to new research[1].
IMPACT INFLATION COULD HAVE ON CASH
More than a quarter (26%) say they don’t know 
what impact in"lation could have on their cash
Millions of savers (64%, the equivalent of  
10.3 million) have taken no action on their savings, 
despite cash earning next to nothing in interest 
and in"lation rising steeply. 
In fact, half of all savers (54%) currently keep 
their money in cash over the long term.
OPTIONS TO MAKE MONEY WORK HARDER
The total cost of ‘saver inaction’ in such an 
environment could amount to £18 billion if this 
trend continues over the next "ive years[2]. Savers 
currently have £136 billion sitting in Cash Individual 
Savings Accounts (ISAs) with, on average, interest 
rates equating to 0.26% per year[3].
Many savers don’t realise in"lation is eating 
away at millions of pounds sitting in low-interest 
paying accounts. Whilst it is essential to keep 
some cash in the bank for an emergency fund, 
savers might want to consider other options to 
make their money work harder.
3 WAYS OF PROTECTING YOUR SAVINGS 
FROM INFLATION
TIP 1: WORK OUT HOW MUCH TO PUT ASIDE 
AS AN EASY!ACCESS EMERGENCY FUND
As a rule of thumb, aim to cover your essential 
expenses for between three to six months, 
or what you can a!ord. For example, bills like 
energy, your mortgage, rent, travel and food 
costs, so should the unexpected happen, you’ll 
be prepared. And you’ll know exactly how much 
money you need to keep in cash (which can be 
impacted by in"lation), so you can start saving 
any extra income in more in"lation-proof ways.
TIP 2: GET THE BEST INTEREST  
RATE YOU CAN ON YOUR SAVINGS
Make sure that any cash savings you have are 
receiving the highest interest rate possible. These days 
you can switch savings accounts and ISAs relatively 
easily. But if you do "ind a higher rate, remember 
that they can quickly go down. For example, it’s 
common for Cash ISAs to o!er high rates for the 
"irst year. Those rates can then drop dramatically 
after the "irst year. So always set a reminder to 
keep an eye on any new savings rates you "ind.
TIP 3: THINK ABOUT INVESTING  
YOUR MONEY OR TOPPING UP YOUR 
PENSION TO BEAT INFLATION
It’s important to be aware of the long-term 
impact on pension contributions, alongside the 
compounding e"fects of investing. Consider 
topping up your pension, or investing in 
a Stocks & Shares ISA. It’s understandable 
you may feel unsure about the future at this 
moment in time, but the key thing to remember 
is that investing is for the long term. 
With time on your side, you can balance out 
the ups and downs of market volatility and 
economic uncertainty. And once you have an 
emergency fund in place, investing your money 
is one of the best ways to beat in"lation. By 
investing your money, you can grow your wealth 
while preserving the value of your money.  
Source data:
[1] Opinium survey of 2,001 UK adults in the UK 
conducted between 4!8 February. The 10.3 million 
savers refers speci$ically to Cash ISA savers.
[2] This is based on 10,303,247 Cash ISA savers 
with median savings of £7,231 stalling their investment 
decision. The total savings amount is projected over 
$ive years at a Cash ISA rate of 0.26%, allowing for 
a 6%, 7% and 8% rate of in$lation per annum. This 
results in an erosion of value of £18 billion, £21 billion 
and £23 billion over a $ive-year period.
[3] As at January 2022, average interest rate for 
instant access Cash ISAs: https://www.which.co.uk/
news/2022/01/a-month-on-from-the-base-rate-rise-
have-savings-rates-improved/
INVESTORS DO NOT PAY ANY PERSONAL TAX 
ON INCOME OR GAINS.
TAX TREATMENT VARIES ACCORDING TO 
INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT 
TO CHANGE.
STOCKS AND SHARES ISAS INVEST IN 
CORPORATE BONDS; STOCKS AND SHARES AND 
OTHER ASSETS THAT FLUCTUATE IN VALUE.
INFORMATION IS BASED ON OUR CURRENT 
UNDERSTANDING OF TAXATION LEGISLATION 
AND REGULATIONS. 
TRULY UNDERSTANDING  
YOUR VISION
Financial planning is a journey that spans 
your entire lifetime and it centres around 
where you are now, where you want to be 
and your values. Your "inancial plan is the 
roadmap that gets you there, and it can only 
be created once we truly understand your 
vision. For more information about how we 
can help you, please contact us.
COST OF ‘SAVER INACTION’
///  M I L L I O N S  O F  S AV E R S  (64%,  T H E 
EQ U I VA L E N T  O F  10. 3  M I L L I O N ) 
HAVE  TAKEN  NO  AC TION  ON  THEIR 
SAV I N G S ,  D E S P I T E  C A S H  E A R N I N G 
NEXT  TO  NOTHING  IN  INTERE ST 
A N D  I N F L AT I O N  R I S I N G  ST E E P LY. 
10  SAVINGS
HOW TO BENEFIT FROM TAX RELIEFS IN THE CURRENT FINANCIAL YEAR
As your income increases, the complexity of your "inances may too.  
Tax-e#iciency is a key consideration when investing because it can make such  
an enormous di!erence to your wealth and quality of life. 
However, the type of investment and tax-
e#iciency you should be looking for depends 
"irstly on whether your priority is to save a 
lump sum for the future or to draw an income today.  
There are a number of allowances and reliefs 
available to UK taxpayers on their savings and 
investments. It is important to make use of these, 
as they can help to reduce your overall tax bill.
MAXIMISE YOUR ISA ALLOWANCE
If you’re looking to save money on your taxes, 
if you’re a UK resident one way to do so is by 
contributing to an Individual Savings Account (ISA). 
With an ISA, you can shelter up to £20,000 of your 
income from taxation in the 2022/23 tax year.
STOCKS & SHARES ISA
If you’re looking to maximise your ISA allowance in 
this current tax year, you could consider opening 
a Stocks & Shares ISA. With a Stocks & Shares ISA, 
you can invest in a wide range of assets, including 
shares, corporate and government bonds, unit 
trusts, investment trusts, exchange-traded funds, 
individual stocks and shares and OEICs (Open 
Ended Investment Companies). Not only will your 
investment grow tax-e#iciently, you’ll also bene"it 
from the potential for capital gains.
CASH ISA
Another option is to open a Cash ISA. With a 
Cash ISA, you can earn interest on your savings 
without having to pay any tax on the interest 
earned. This makes it an ideal way to boost your 
savings while minimising your tax liability. A Cash 
ISA is available to anyone aged 16 or over, while 
an ISA invested in any combination of cash and 
shares is available to those over the age of 18.
LIFETIME ISA (LISA)
If you’re looking to save for retirement or to buy 
your "irst home, you may also want to consider 
opening a Lifetime ISA (LISA), which is available 
for people aged between 18 and 40. With a 
Lifetime ISA, you can save up to £4,000 in the 
current tax year, which counts towards your 
annual ISA allowance. The government will add 
a 25% bonus to savings held in a LISA, up to a 
maximum of £1,000 per year, and this does not 
count towards your ISA allowance. 
You need to bear in mind that the money you 
put into a LISA each year forms part of your 
overall £20,000 ISA allowance — so if you put 
£4,000 in a LISA during the tax year, you’ll be 
able to put £16,000 into other ISAs.
JUNIOR ISA (JISA) 
Finally, if you have children, you may want to 
consider opening a Junior ISA (JISA) for them. The 
Junior ISA is available to UK residents aged under 
the age of 18 who do not have a child trust fund 
account (a child trust fund can be transferred into 
a Junior ISA to enable future subscriptions to be 
made to the Junior ISA – or the child trust fund 
can be kept and up to £9,000pa can be paid into 
it instead of the Junior ISA). Under-18s, or their 
parents, can put up to £9,000 in a Junior ISA each 
tax year. The money saved in a Junior ISA will grow 
tax-e#iciently and can be used for a wide range of 
purposes, including education and training costs.
If unused, your ISA allowance cannot be 
carried from one tax year to the next.
CONSIDER PUTTING MORE INTO A PENSION
Under the current rules for tax year 2022/23, the 
maximum gross contributions that are eligible 
for tax relief each tax year are the lower of your 
gross earned income and £40,000. That includes 
employer and employee combined contributions 
and if this Annual Allowance is exceeded, a 
tax charge applies on the excess unless it can 
be covered by using carry forward. Very high 
earners may have a lower Annual Allowance.
Increasing your pension contributions is a very 
e!ective way of saving for retirement. By putting 
more into your pension, you will be able to build 
up a larger pot of money which can provide you 
with a comfortable retirement income.
MAKING THE MOST  
OF RETIREMENT PROSPECTS
It is also worth considering increasing your 
pension contributions if you have recently had 
a pay rise or come into some extra money. By 
doing this, you will ensure that you are making 
the most of your "inances and making the most 
of your retirement prospects. You can also carry 
forward unused annual allowances from the 
previous three tax years, subject to certain rules, 
providing further scope for making contributions.
If you earn over £100,000, making pension 
contributions can be highly advantageous. Your 
personal allowance is reduced by £1 for every 
£2 of income above £100,000; this means your 
allowance is zero if your income is £125,140 
or above. However, if you make a pension 
contribution this comes o! your income "igure 
for this purpose and so if the gross contribution 
is enough to reduce your total income below 
£125,140, you are able to o!set or remove the 
reduction in your personal allowance. 
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.
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.
INVESTORS DO NOT PAY ANY PERSONAL TAX 
ON INCOME OR GAINS. TAX TREATMENT VARIES 
ACCORDING TO INDIVIDUAL CIRCUMSTANCES 
AND IS SUBJECT TO CHANGE.
STOCKS AND SHARES ISAS INVEST IN 
CORPORATE BONDS; STOCKS AND SHARES AND 
OTHER ASSETS THAT FLUCTUATE IN VALUE.
INFLATION EATING YOUR SAVINGS?
COULD YOU SAVE A SIGNIFICANT 
AMOUNT OF MONEY IN TAXES?
Making use of these allowances and reliefs 
could save you a signi"icant amount of 
money in taxes every year. Speak to us to 
see how you can make the most of them — 
to "ind out more, please contact us.
SAVINGS  11
12  RETIREMENT
TIPS FOR A 
HEALTHY 
PENSION AS 
YOU APPROACH 
RETIREMENT
WHAT REALLY IMPORTANT RETIREMENT 
QUESTIONS SHOULD YOU BE ASKING?
As you approach the last "ive years 
before your retirement, there will 
be a lot of things to consider. You’ll 
need to think about your "inances, 
your health, your housing situation 
and your plans for the future to live 
comfortably in retirement.
There will be lots of questions to ask: 
How much money will I need to have 
saved? What will my income sources be 
in retirement? What kind of lifestyle do I want 
in retirement? What will my health care needs 
be in retirement? What are my long-term 
care needs in retirement? What are my estate 
planning needs in retirement? What are my 
tax considerations in retirement?
There are also a number of things to review 
in order to ensure you have a comfortable and 
enjoyable retirement.
THINGS YOU MIGHT WANT TO CONSIDER AS 
YOUR RETIREMENT APPROACHES. HERE ARE 
JUST A FEW:
TRACK DOWN YOUR PENSIONS
There are a number of ways you can track down a 
pension in the UK. But the most straightforward  
is to use the government’s Pension Tracing  
Service to help you "ind lost pensions – visit:  
https://www.gov.uk/"ind-pension-contact-details
The most important thing is to keep good records 
and to know where your pension money is invested. 
If you have moved jobs or changed address, update 
your records with your current contact details. This 
will help ensure that you receive any correspondence 
relating to your pension.
WHEN CAN YOU ACCESS YOUR PENSION/S?
The earliest you can currently access your UK 
pension is age 55 (this will be changing to age 57 
in 2028 unless your pension plan has a protected 
lower pension age). However, this does not mean 
you automatically receive your pension at this age 
– it simply means that you can start to take bene"its 
if you wish. The exact amount and how often you 
receive your pension payments will depend on the 
rules of the speci"ic scheme you’re in.
For workplace and personal pensions, there’s 
no set retirement age, so it’s down to the rules 
of the individual scheme. Some schemes may 
require you to retire at a certain age, while others 
may give you the "lexibility to carry on working 
for as long as you want. The decision of when 
to take your pension is a personal one, and will 
depend on your individual circumstances. 
WHAT’S YOUR PENSION’S VALUE?
There are many bene"its to checking your 
UK pension’s value regularly as you approach 
RETIREMENT  13
retirement. By doing so, you can ensure that your 
pension remains on track to providing you with 
the income you will eventually want in retirement.
By keeping track of your pension’s value, you 
can be sure that you are making the most of your 
investment and are keeping an eye on any changes 
in the value of your retirement fund. This is important 
because it will help you identify what adjustments, if 
any, need to be made to your retirement plans.
GET A STATE PENSION FORECAST
A State Pension forecast gives you an estimate  
of the amount of money you will receive from the 
government once you reach retirement  
age. You can obtain your forecast online  
through the government’s website, visit:  
https://www.gov.uk/check-state-pension. When 
requesting your forecast, you will need to provide 
personal information, such as your date of birth 
and National Insurance number. 
Once you have received your forecast, it is 
important to keep in mind that the amount stated 
is only an estimate. The actual amount you receive 
may be higher or lower than what is indicated on 
your forecast, depending on a number of factors.
FIND OUT THE VALUE OF  
YOUR OTHER INVESTMENTS
You need to obtain an accurate estimate of the 
value of your other investments when planning 
for retirement. These will play a role in how 
much money you’ll need to withdraw from your 
retirement accounts each year. If you have a 
large investment portfolio, you may be able to 
withdraw less each year, which could help stretch 
your retirement savings further.
The value of your other investments is likely 
to impact on how much income you’ll need to 
generate from them in order to meet your retirement 
expenses. If you have a more modest portfolio, you 
may need to withdraw more each year in order to 
cover your costs. Knowing the value will enable you 
to determine whether you’re on track to reaching 
your retirement goals. If your portfolio is worth 
less than you had hoped, you may need to make 
adjustments to your savings and investment strategy 
in order to realign your retirement plans.
HOW WILL YOU ACCESS YOUR PENSION?
If you have a UK De"ined Contribution pension, 
you may be able to take some or all of your 
pension bene"its as a lump sum from age 55 (age 
57 in 2028 unless your plan has a protected lower 
pension age). This is known as ‘crystallising’ your 
pension. You can take up to one-quarter of your 
pension pot as a tax-free lump sum. The remaining 
balance can be used to provide an income for life 
or to draw on "lexibly as required. 
However, there are some things you should 
bear in mind before taking this step. Taking all 
of your pension bene"its as a lump sum will 
mean that you will have less money to live on in 
retirement. This is because the lump sum above 
the 25% tax-free amount will be subject to Income 
Tax. Taking your pension fund as a lump sum 
does not a!ect your State Pension, but it can a!ect 
certain means-tested state bene"its.
MAKE A RETIREMENT BUDGET
It’s no secret that retirement can be expensive, 
especially with the e!ects of rising in"lation. In 
addition to the obvious costs, like housing and 
healthcare, there are a myriad of other expenses 
that can quickly add up. From travel and leisure 
to groceries and utilities, retirees have plenty of 
bills to pay. That’s why it’s so important to create 
a retirement budget. By understanding where 
your money is going, you can identify potential 
areas of improvement.
A retirement budget doesn’t have to be 
complicated. But it should include all of your 
expected sources of income, as well as all of your 
anticipated expenses. Once you have a clear 
picture of your cash "low, you can start making 
adjustments to ensure you can look forward to 
enjoying your retirement years. 
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). THE VALUE OF 
YOUR INVESTMENTS (AND ANY INCOME FROM 
THEM) CAN GO DOWN AS WELL AS UP WHICH 
WOULD HAVE AN IMPACT ON THE LEVEL 
OF PENSION BENEFITS AVAILABLE. YOUR 
PENSION INCOME COULD ALSO BE AFFECTED 
BY THE INTEREST RATES AT THE TIME YOU 
TAKE YOUR BENEFITS. 
THE TAX IMPLICATIONS OF PENSION 
WITHDRAWALS WILL BE BASED ON 
YOUR INDIVIDUAL CIRCUMSTANCES, TAX 
LEGISLATION AND REGULATION WHICH ARE 
SUBJECT TO CHANGE IN THE FUTURE. YOU 
SHOULD SEEK ADVICE TO UNDERSTAND YOUR 
OPTIONS AT RETIREMENT.
READY TO DISCUSS YOUR  
RETIREMENT PLANS?
 Before making any decisions about your 
retirement plans, it’s important to seek 
professional "inancial advice. This will help you 
understand all of your options and make the 
best decision for your individual circumstances. 
For more information or to discuss your 
requirements, please contact us.
/// IT’S NO SECRET THAT 
RETIREMENT CAN BE 
EXPENSIVE, ESPECIALLY 
WITH THE EFFECTS OF RISING 
INFLATION. IN ADDITION TO 
THE OBVIOUS COSTS, LIKE 
HOUSING AND HEALTHCARE, 
THERE ARE A MYRIAD OF 
OTHER EXPENSES THAT CAN 
QUICKLY ADD UP.
14 RETIREMENT
NO ONE$SIZE$FITS$ALL ANSWER TO THIS QUESTION
When is the right time to retire? There’s no one-size-"its-all answer to this 
question – it depends on your personal circumstances. However, there are a few 
things to consider that may help you decide when the right time for you is. 
SIGNS YOU’RE 
REALLY READY 
TO RETIRE
///  YO U  M AY  H AV E 
HEARD  THAT  C A SH  IS 
KING  BUT  WHEN  IT 
CO M E S  TO  R E T I R E M E N T 
PLANNING  IS  THIS 
REALLY  TRUE ? IF 
YO U ’ R E  S I T T I N G  O N 
TO O  M U C H  C A S H  FO R 
YO U R  R E T I R E M E N T 
P L A N N I N G  P U R P O S E S , 
IT  C OULD  BE  IMPAC TED 
BY  T H E  E F F EC T S  O F 
RISING  INFLATION .
RETIREMENT  15
For example, think about your "inancial 
situation. Do you have enough saved 
up to support yourself in retirement? If 
not, you may need to work longer to ensure a 
comfortable retirement. 
Your health is another important factor to 
consider. If you’re in good health, you may be 
able to enjoy a longer retirement. However, if you 
have health problems, you may want to retire 
sooner so that you can enjoy your retirement 
while you’re still healthy enough to do so. 
You should also consider your personal 
preferences. Do you enjoy your job? If not, 
you may be ready to retire sooner. On the 
other hand, if you love your job, you may 
want to keep working even after you reach 
retirement age. 
There’s no wrong answer when it comes to 
deciding when to retire. It’s a personal decision 
that depends on your unique circumstances. 
However, considering factors like your "inancial 
situation, health and personal preferences can 
help you decide when the right time for you is.
WHAT IMPACT COULD INFLATION  
HAVE ON YOUR RETIREMENT PLANS?
When it comes to retirement planning, in"lation 
is one of the most important factors to consider. 
After all, if prices are rising faster than your 
investment returns, you could end up struggling 
to make ends meet in retirement. If you have 
a "ixed income in retirement, rising prices can 
quickly start to eat into your savings. This is 
because your income won’t keep pace with 
in"lation, meaning you’ll have less purchasing 
power over time.
In"lation can also cause your living expenses 
to go up, and this can lead to a reduction in your 
standard of living. Clearly, too, high in"lation can 
make it harder to save enough for retirement 
because you’ll need to invest more money to 
keep up with rising prices and it can impact on 
your future retirement lifestyle.
WHAT IS YOUR RETIREMENT TIMELINE?
Your retirement timeline is the amount of time 
from now until you retire. This can be di"ferent 
for everyone, depending on when you plan 
to retire and how much money you have 
invested. If you are close to retirement, it is 
important to start thinking about your timeline 
so that you can make the most of your time 
and money. There are a few things to consider 
when creating your retirement timeline, such 
as: When do you want to retire? How much 
money do you need to save? What kind of 
lifestyle do you want in retirement?
Answering these questions will help you create 
a retirement timeline that works for you. It is 
important to remember that retirement planning 
is an ongoing process, so you may need to adjust 
your timeline as you get closer to retirement. If 
you are still early in your career, you may not 
have given much thought to your retirement 
timeline. However, it is never too early to start 
planning for the future. By creating a retirement 
timeline now, you can ensure that you are on 
track to meet your goals.
COULD RETIREMENT CASH FLOW 
MODELLING HELP YOU?
You may be wondering if you have enough 
money to last through your retirement years. 
One way to "ind out is to create a retirement 
cash "low model. A retirement cash "low model 
shows how much income you can expect to 
receive from various sources, such as state 
bene"its, pensions and investments. It also takes 
into account your estimated expenses, such as 
healthcare and housing costs. Creating a cash 
"low model will help you understand whether 
your current retirement savings are on track to 
meet your needs. 
It can also give you a better idea of how much 
you may need to invest in order to maintain your 
desired lifestyle in retirement. You can use it to 
test di!erent scenarios and make adjustments 
to your retirement plans as needed. This will give 
you a clearer picture of your "inancial future and 
help you make more informed decisions about 
your retirement plans.
ARE YOU SITTING ON  
TOO MUCH CASH SAVINGS?
You may have heard that cash is king but when 
it comes to retirement planning is this really 
true? If you’re sitting on too much cash for 
your retirement planning purposes, it could 
be impacted by the e"fects of rising in"lation. 
While in"lation can be mild in some years, 
over time it can have a signi"icant impact 
on the purchasing power of your money 
as we’ve seen over recent months. As such, 
it’s important to consider how in"lation may 
impact on your retirement plans and make 
adjustments accordingly.
One way to help o"fset the e"fects of 
in"lation is to invest in assets that have the 
potential to appreciate in value over time and 
grow along with the cost of living. By investing 
in a diversi"ied portfolio and including assets 
that can keep pace with in"lation, you can help 
ensure that your retirement savings will last as 
long as you need them.
WHAT IS YOUR ATTITUDE  
TO INVESTMENT RISK?
When it comes to investing, there is always some 
element of risk involved, so it’s important to 
understand your own attitude towards risk before 
making any investment decisions. Some people 
are more comfortable with higher levels of risk, 
knowing they could potentially make higher returns. 
Others prefer to remain more cautious, even if that 
means sacri"icing some potential upside.
There is no right or wrong answer when 
it comes to investment risk. It’s all about 
understanding your own tolerance for 
risk and making investment decisions 
accordingly. Once you have a better 
understanding of your own risk pro"ile, you’ll 
be in a better position to make informed 
investment decisions with a view to ensuring 
that the income derived from that portfolio 
can at least keep pace with in"lation. 
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.
LET US KEEP YOUR  
RETIREMENT GOALS ON TRACK
When it comes to your retirement, in"lation is 
one of the biggest factors you have to consider. 
There is no ‘one solution’ but forward planning 
with expert professional "inancial advice can 
ensure you make the most of your hard-earned 
money. To "ind out more or to discuss your 
situation, please contact us.
16 INHERITANCE TAX
PLANNING FOR YOUR WEALTH PRESERVATION 
AND THE EVENTUAL TRANSFER OF THAT WEALTH
HOW TO REDUCE 
INHERITANCE TAX BY 
LEAVING A GIFT
INHERITANCE TAX  17
When you’ve worked hard and invested carefully to build your wealth, 
you want to look after it. That’s why it’s important to plan for your wealth 
preservation and the eventual transfer of that wealth.
If you’re considering making a gift to someone, 
there are a few things you need to know about 
Inheritance Tax. Gifts can be a great way to 
reduce the amount of Inheritance Tax that your 
family will have to pay when you die, but there 
are some rules that you need to follow.
MAKE USE OF THE ANNUAL EXEMPTION 
Inheritance Tax is a tax that is levied on the estate 
of a person who has died. The estate is the value of 
all the property and assets that the person owned 
at the time of their death (with some exceptions 
for certain business assets and pension funds). 
Inheritance Tax is charged at 40% (tax year 2022/23 
– a UK tax year runs from 6 April to the following 
5 April) on anything above the Inheritance Tax 
threshold, which is currently £325,000.
There are some gifts that are exempt from 
Inheritance Tax, such as gifts to your spouse 
or registered civil partner, or gifts to charities. 
However, you can also reduce the amount of 
Inheritance Tax that your family may have to pay 
by making use of the annual exemption and also 
carrying forward any unused annual exemption 
from the previous year.
AVOID PAYING INHERITANCE TAX
If you’re thinking about making a gift, there 
are a few things you need to bear in mind. 
Firstly, you need to make sure that the gift is 
genuine and that you’re not just trying to avoid 
paying Inheritance Tax. Secondly, you need to 
consider whether the person you’re giving the 
gift to can a"ford to pay any Inheritance Tax 
that might be due on it (which would apply if 
the cumulative gift exceeds your nil-rate band). 
And "inally, you need to think about what will 
happen to the asset after you die.
You can make exempt gifts of up to £250 as 
long as each gift goes to a di!erent person and 
each person has had no more than £250 from 
you in gifts in that tax year. This will commonly 
include birthday and Christmas gifts.
MONEY OR ITEMS OF PROPERTY 
A wedding gift from a parent to their child of up 
to £5,000, from grandparent to grandchild of up 
to £2,500, or up to £1,000 to someone else, is 
also exempt.
In addition, each tax year you have what’s known 
as an ‘annual exemption’. Under this you can give 
away money or items of property to the value of 
£3,000. This can all go to one person or be shared 
between several people. And if you didn’t use that 
exemption in the previous tax year, you can use it in 
the current tax year and give away £6,000.
MAKING REGULAR PAYMENTS 
Known as ‘normal expenditure out of excess income’, 
you’re able to make regular payments from income 
you don’t need to maintain your normal standard of 
living. For example, if you wanted to pay a loved one’s 
rent or mortgage, or make regular payments into a 
savings account for your grandchild.
There isn’t a limit on how much you can give 
away and, like the exempt gifts above, the amount 
you gift will leave your estate straight away. But 
you must be able to a!ord the payments after 
your regular living costs and without having to cut 
back. Plus the payments need to come from your 
normal monthly income.
WORKING OUT IF THERE’S TAX TO PAY
If you wanted, you could combine regular 
payments with your annual exemption in the 
same tax year so that one person can receive 
even more. It’s important to consider carefully 
how much you can a"ford – although you may 
not need the money now, your circumstances 
in the future could change.
Keeping a record of the gifts you give is 
essential. It helps you show which are exempt 
and which may have to be included as part of 
your estate. And in the event of your death, 
it will also help those responsible for the 
administration of your estate when it comes 
to claiming any allowances and working out if 
there’s tax to pay.
NON!EXEMPT GIFTS
If you wish to make larger gifts that fall outside 
the above exemptions, those gifts won’t fall out 
of your estate for Inheritance Tax purposes for 
seven years. 
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.
///  T H E R E  A R E  S O M E  G I F T S 
THAT  ARE  EXEMPT  FROM 
INHERITANCE  TAX ,  SUCH 
AS  G I FT S  TO  YO U R  S P O U S E 
OR  REGISTERED  CIVIL 
PA RT N E R ,  O R  G I F T S  TO 
C H A R I T I E S . 
READY TO DISCUSS HOW TO  
PROTECT AND PASS ON YOUR WEALTH?
We are living in an unprecedented age of 
personal wealth. Many of today’s baby boomer 
generation are far wealthier than any before, 
built on the back of generous pensions, secure 
high paid jobs and soaring property values. But 
for many of the next generation, future "inancial 
security and goals may be increasingly reliant 
on receiving a sizeable inheritance. To discuss 
how to protect and pass on your wealth, please 
contact us.
18 FINANCIAL PLANNING
HOW TO PROTECT AND GROW YOUR WEALTH OVER TIME
In"lation is one of the most important factors that savers and investors must take into account 
when making decisions about their money. Although in"lation can eat away at the purchasing power 
of your savings, it can also create opportunities for pro"it if you invest in assets that are expected to 
increase in value faster than prices overall.
IS YOUR MONEY WORKING  
AS HARD AS IT SHOULD BE?
We take a personal and proactive approach to 
managing your wealth. Once we’ve understood 
your requirements, including your timeframes, 
the amount of risk that you are comfortable 
with and how much loss you can bear, we’ll 
tailor an investment portfolio to meet these 
objectives. To "ind out more, please contact us.
WHAT DOES INFLATION MEAN 
FOR ME AND MY MONEY?
In"lation is thus a crucial factor to consider 
when making any decisions about your 
money. By understanding how it works and its 
potential impact on your "inances, you can make 
more informed choices about how to protect and 
grow your wealth over time.
YEARS OF VERY LOW AND STEADY INFLATION
After years of very low and steady in"lation, 
prices are currently moving higher rapidly. In 
the UK, this is most obvious in the rising cost of 
energy, fuel and food. And because of the crisis in 
Ukraine, it doesn’t look like in"lationary pressures 
will ease any time soon. 
Oil and gas prices are likely to remain higher 
for much longer as sanctions against Russia, one 
of the world’s largest oil and gas exporters, take 
e!ect. Food prices are likely to continue to rise too 
because Russia and Ukraine are big grain suppliers.
MORE OPPORTUNITY TO GROW IN VALUE 
For savers, or those in retirement, it’s important 
to manage savings to help mitigate the impact 
of in"lation. To do this, your money needs to 
grow in value. Which is where investments can 
be so valuable as they give your money more 
opportunity to grow in value over the longer 
term than cash savings, and importantly to keep 
pace with, or even beat in"lation.
Another way to protect your portfolio from 
in"lation is to invest in assets that generate 
income. For example, bonds and dividend-paying 
stocks can provide you with a steady stream of 
income that can help o!set the e!ects of in"lation.
TAKE ADVANTAGE OF  
INFLATIONARY TRENDS
Finally, you can also take advantage of in"lationary 
trends by investing in assets that are likely to bene"it 
from rising prices. For example, commodities like oil 
and gas, as we have seen over recent months, tend 
to do well when in"lation is on the rise.
No matter what strategy you use, it’s 
important to stay diversi"ied and to monitor your 
investment portfolio closely. By doing so, you’ll be 
better positioned to weather any potential storms 
that may arise due to in"lation. 
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.
///  A F T E R  Y E A R S  O F 
VERY  LOW  AND  STEADY 
INFLATION ,  PRICE S  ARE 
CURRENTLY  MOVING 
HIGHER  RAPIDLY.  IN 
THE  UK ,  THIS  IS  MOST 
OBVIOUS  IN  THE  RISING 
C O ST  O F  E N E RGY, 
FUEL  AND  FOOD.  AND 
IT  DOE SN ’ T  LOOK 
LIKE  INFLATIONARY 
PRE SSURE S  WILL  EA SE 
ANY  TIME  S OON  BEC AUSE 
OF  THE  CRISIS  IN 
U K R A I N E . 
FINANCIAL PLANNING  19
10 PRACTICAL STEPS TO ENSURE YOUR 
MONEY IS WORKING HARD FOR YOU
In these uncertain times, it’s more important than ever to make sure your 
"inances are in order. The Bank of England believes that a painful squeeze 
on our living standards, driven primarily by soaring energy prices, is set to 
intensify and will push the UK economy into recession later this year.[1]
SECURE YOUR FINANCIAL FUTURE
Following these tips will help you secure your 
"inancial future and protect yourself from the 
e!ects of rising in"lation and the cost of living 
crisis. If you would like to "ind out more or to 
discuss your situation, please contact us.
RECESSION$PROOF 
YOUR FINANCES
Making your "inances recession-proof 
is all about taking practical steps to 
ensure your money is working hard 
for you. It is vital to be completely honest with 
yourself about your "inancial situation. 
By conducting a thorough audit of your 
"inances and gaining a comprehensive 
understanding of all your incomes and 
outgoings, this will show you exactly where your 
cash is going and, most importantly, help you 
identify problematic spending behaviour.
HERE ARE 10 TIPS TO HELP YOU RECESSION!
PROOF YOUR FINANCES:
1. Make a budget and stick to it This will help 
you keep track of your spending and ensure that 
you’re not overspending.
2. Save, save, save! Try to put away as much 
money as you can into a savings account so that 
you have a cushion in case of tough times.
3. Invest in yourself Take the time to learn new 
skills or improve upon existing ones. This will 
make you more valuable in the job market if you 
need to make a job or career change.
4. Remove any unnecessary payments Look at 
your bank account and remove any pain-free direct 
debits. Consider if you’re currently paying for things 
you don’t really need, for example, subscriptions.
5. Time to switch Look at energy tari!s, home 
insurance, car insurance, broadband, TV package, 
mobile tari! – now might be a good time to switch.
6. Stay disciplined with your debt Make sure 
you’re making all of your payments on time and 
in full. This will help you avoid costly late fees and 
keep your credit in good shape.
7. Pay o$ high interest Prioritise any high-
interest debt, such as credit card debt, freeing 
up more money in your budget to cover other 
expenses if your income decreases.
8. Have an emergency fund This is a must in 
case you lose your job or have any unexpected 
expenses. Try to save up at least between three 
to six months’ worth of living expenses so that 
your expenditure is covered.
9. Diversify your Income Don’t put all your eggs 
in one basket. Having multiple streams of income 
can really help. If one income source starts to 
dwindle – or gets eliminated completely – this will 
provide other sources to fall back on.
10. Diversify your investments In addition 
to diversifying your income, it’s also important 
to diversify your investments. Review your 
investment portfolio and make sure your 
investments are spread across di!erent industries 
and even di!erent types of asset classes. 
Source data:
[1] https://www.bankofengland.co.uk/monetary-
policy-report/2022/may-2022
///  BY  C O N D U C T I N G  A  T H O RO U G H 
AU D I T  O F  YO U R  F I N A N C E S  A N D 
GA I N I N G  A  C O M P R E H E N S I V E 
UNDER STANDING  OF  ALL  YOUR 
INC OME S  AND  OUTGOINGS ,  THIS 
WILL  SHOW  YOU  EXAC TLY  WHERE 
YO U R  C A S H  I S  G O I N G  A N D,  M O ST 
IMPORTANTLY,  HELP  YOU  IDENTIF Y 
PROBLEMATIC  SPENDING  BEHAVIOUR .
2 0  RETIREMENT
ENSURING AN EQUAL DIVISION OF ALL THE  
ASSETS WITHIN THE MATRIMONIAL POT
The breakdown of a marriage is often referred to one of the most 
traumatic and stressful events anyone can go through. Divorce can also 
be a costly experience, often including legal fees, a new home, a new car and 
new childcare costs. So, it’s perhaps predictable that so many need to rely on 
savings or credit cards for support during this time.
PENSION POVERTY 
AFTER DIVORCE
RETIREMENT  21
HOW CAN WE HELP  
WITH YOUR PENSION?
If you’re going through a divorce, one of the 
many things you’ll need to think about is your 
pension. What will happen to it? Who will get 
what? These are important questions to ask, 
because pensions can be a signi"icant asset 
in a divorce settlement. If you would like to 
discuss your options, please contact us.
When dealing with "inances on 
divorce, the starting point is an equal 
division of all the assets within the 
matrimonial pot. It’s critical that, as part of the 
separation process, couples take time to think 
about and discuss one of their single most 
valuable assets, their pension. 
RELEVANT FACTOR IN ANY DIVORCE
It’s common that one party will have signi"icant 
pension provision, and the other party may have 
little or none. Clearly, this could be a relevant 
factor in any divorce.
Figures[1] show that in 2020 there were 103,592 
divorces granted in England and Wales, but with 
a new law that came into force on 6 April 2022 
making it much easier for couples to get divorced 
through a ‘no fault’ plea[2], this "igure is likely to 
increase in the coming years.
IMPACT OF DIVORCE ON FINANCES  
Thinking about family "inances may be the 
last thing couples want to do at this di#icult 
time. However, it’s important to understand 
the impact that divorce will have on "inances, 
including pensions.
The UK currently holds £15.2 trillion pounds in 
household wealth[3]. Private pensions represent 
the biggest single component of this wealth – at 
around 42% of the total (£6.4 trillion). Agreeing 
a fair separation of this pension wealth at a time 
of divorce will be critical to the future "inancial 
wellbeing of both parties.
AVERAGE AGE REACHES AN ALL!TIME HIGH  
As a result of divorce, as many as nearly one in 
"ive (19%) say they will be, or are, signi"icantly 
worse o! in retirement. The average age for 
getting divorced has reached an all-time high 
of 47 years and 5 months for men and 44 years 
and 9 months for women[4], so it’s fair to assume 
that the levels of wealth accumulated in couples’ 
pension pots may also be fairly high.
The research suggests that one in seven (15%) 
of divorced people didn’t realise their pension 
could be impacted by getting divorced and more 
than a third (34%) made no claim on their former 
partner’s pension and it was not included as an 
asset in the settlement when they did divorce. 
SIGNIFICANTLY WORSE OFF IN RETIREMENT
Worryingly, almost one in twelve (8%) divorcees 
say they didn’t have their own pension savings as 
they were relying on their partner to "inance their 
retirement. As a result of divorce, as many as one 
in "ive (19%) say they will be, or are, signi"icantly 
worse o! in retirement. It’s critical that, as part 
of the separation process, couples take time to 
think about and discuss one of their single most 
valuable assets, their pension.
To supplement their income following a 
divorce, a third of divorcees (32%) said they 
dipped into their savings; one in "ive (20%) used 
credit cards for everyday living expenses; a 
similar number (18%) borrowed from friends or 
family; and just over one in seven (15%) regularly 
sold clothing/toys/other household items just to 
make ends meet.
FUTURE RETIREMENT INCOME AT RISK
One in eight (12%) respondents admitted to 
having to go out to work, having not worked 
before their divorce, or get a second job (10%). 
Worryingly, one in eight (12%) also cut back, or 
cancelled, their pension contributions – putting 
their future retirement income further at risk.
There are several options available to the 
Family Court when dealing with pensions at 
divorce – pension sharing, earmarking and 
o!setting against other assets[5]. It can often be a 
very complex issue so, as well as hiring a family 
lawyer, couples should consult a professional 
"inancial adviser to walk them through the 
pension valuation and "inancial process. 
Source data:
The research was conducted by Censuswide 
between 07/04/2022!13/04/2022, with 1,008 
respondents who have been through a divorce in 
the UK. Respondents are referred to as divorcees 
or divorced people throughout.
[1] Divorces in England and Wales – O#ice for 
National Statistics (ons.gov.uk)
[2] New divorce laws will come into force from 
6 April 2022 (gov.uk)
[3] Total wealth: Wealth in Great Britain 
(ons.gov.uk)
[4] Divorces in England and Wales – O#ice for 
National Statistics (ons.gov.uk)
[5] Aviva Adviser: Pension and Divorce 
(avivab2b.co.uk)
///  T H E  U K  C U R R E N T LY 
HOLDS  £15. 2  TRILLION 
POUNDS  IN  HOUSEHOLD 
WEALTH [3]. P R I VAT E  P E N S I O N S 
REPRE SENTS  THE  BIGGE ST 
SINGLE  C OMPONENT  OF  THIS 
WEALTH  !  AT  AROUND  42% OF 
THE  TOTAL  (£6.4 TRILLION ) .
22 RETIREMENT
QUARTER OF SAVERS APPROACHING 
RETIREMENT AT RISK OF NOT HAVING 
AN ‘ADEQUATE PENSION’
HOW MUCH 
WILL YOU NEED 
TO RETIRE? 
RETIREMENT  23
One of the biggest mistakes you can make is not saving enough for your 
retirement. This can leave you struggling to make ends meet in your later 
years, and may even force you to rely on others for "inancial support. It’s never 
too early to start saving, and the sooner you start, the better o"f you’ll be. 
TIME TO START THINKING  
ABOUT YOUR RETIREMENT?
No matter what your situation is, it is important 
to start thinking about retirement saving as 
soon as possible. The sooner you start, the 
more time you will have to reach your goals. To 
discuss your options, please contact us.
The question of whether or not you are 
saving enough for your retirement is a 
di#icult one to answer. It depends on a 
number of di!erent factors, including your age, 
your current income, your anticipated expenses 
in retirement and the amount of time you have 
left to save.
COST!OF!LIVING CRISIS
According to a new survey, just over a quarter 
of savers surveyed (26%) who have a workplace 
pension think that their current amount of 
pension saving will not be enough to get by on 
when it comes time to retire[1].
With UK households feeling the pinch o! the 
back of the cost-of-living crisis, the war in Ukraine 
and two years of COVID$19 restrictions, savers have 
reported that they have long-term concerns as to 
their "inancial health when they stop working.
LOW!INCOME HOUSEHOLDS 
In the survey, those aged between 35 and 54 (29%) 
were most concerned that they wouldn’t have 
enough to live o!, compared to those aged over 55 
(20%). Just under a third of women were concerned 
(31%), compared to one in "ive men (21%).
Furthermore, 35% of those in low-income 
households, whose total income is up to £14k, 
and 31% with an income of £14k – £28k stated 
their concerns. This "igure drops to just one in "ive 
(20%) for those in households with an income of 
over £48k.
MINIMUM STANDARD OF LIVING
One in "ive people surveyed (21%) who have a 
pension say that they save into a pension to 
ensure that they have a minimum standard of 
living in retirement – a pension that meets all their 
basic needs.
The "indings show that a majority of 
people save to get either a moderate (41%) or 
comfortable (33%) Retirement Living Standard. 
However, far fewer people think their current 
pension saving will achieve this, with slightly over 
a quarter (27%) saying moderate and just 14% 
comfortable.
REACHING YOUR FUTURE GOALS 
There are some key questions that will help give 
you a sense of whether you’re saving enough 
for retirement. These include: How much have 
I saved so far? How much will I need to save? 
What is my expected rate of return? What 
sources of income will I have in retirement? 
Keep in mind that these are just general 
guidelines. The best way to know if you’re on 
track for retirement is to obtain professional 
"inancial advice to develop a personalised 
retirement plan and make sure you’re on track to 
reaching your goals. 
Source data:
[1] The research was conducted on behalf of 
the PLSA by Yonder Data Solutions from 10/01/22 
to 11/01/22 with a nationally representative sample 
of 2,093 adults.
A PENSION IS A LONG$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.
///  W I T H  U K  H O U S E H O L D S  F E E L I N G  T H E 
PINCH  OFF  THE  B ACK  OF  THE  C OST"OF"
LIVING  CRISIS ,  WAR  IN  UKRAINE  AND 
T WO  Y E A R S  O F  C OV I D "19 R E ST R I C T I O N S , 
SAV E R S  H AV E  R E P O RT E D  T H AT  T H E Y 
HAVE  LONG "TERM  C ONCERNS  A S  TO 
THEIR  FINANCIAL  HEALTH  WHEN  THEY 
STO P  WO R K I N G .
24 FINANCIAL PLANNING
WHAT STEPS TO TAKE TO PREPARE FINANCIALLY
Having a baby is one of the most exciting, life-changing events that you’ll 
ever experience. But along with the joy and happiness that comes with 
starting a family, there is also the reality of the added costs.
TIME TO DISCUSS PREPARING 
FINANCIALLY FOR YOUR NEW BABY?
When it comes to making the sorts of plans 
we’ve mentioned above, the help of an expert 
can be invaluable. Preparing "inancially for 
your new baby doesn’t have to be di#icult or 
overwhelming. By following these simple tips, 
you can ease the "inancial burden and focus on 
enjoying this special time with your new bundle 
of joy. To discuss how we could help, please 
contact us for more information.
STARTING A FAMILY
On average in 2021, the total cost of raising 
a child to the age of 18 now stands at 
£160,692 for a couple and £193,801 for a 
lone parent[1]. These numbers aren’t small, which 
is why it is important to consider your "inancial 
planning options before starting a family.
The total cost of raising a child, the report 
highlights, is the highest it has been since calculations 
started in 2012. Since 2012, the total cost has risen by 
13% for couples and 25% for lone parents. The rise 
in the last year has been particularly large – 3.6% for 
couples and 3.3% for lone parents.
Fortunately, there are ways to ease the 
"inancial burden and protect your new family. 
CREATE A BUDGET
One of the best ways to prepare for the added 
expenses of having a baby is to create a budget. 
Track your income and spending so you have 
a clear idea of where your money is going each 
month. Then, start setting aside money each month 
to cover the anticipated costs of having your baby.
If your income is likely to change after the 
arrival of your baby (for example, if you reduce 
or stop working) then it may also be a good idea 
to consider cutting some costs. It can be helpful 
to sort your expenses into essential and non-
essential items so you can "ind ways to save.
EMERGENCY FUND
Building an emergency fund is a savings account 
that you can easily access and use in case of 
unforeseen circumstances. This could help you 
weather a "inancial storm that comes your way 
and keep you from going into debt. Aim to save at 
least three to six months’ worth of living expenses, 
or what you can a!ord, so you have a cushion in 
case of an unexpected "inancial emergency. 
Remember, this is a pool of money that should 
only be used during times of "inancial need, for 
example, resulting from a job loss or unexpected 
expenses such as major home or car repairs, 
illness, etc, that can cause real "inancial hardship.
FAMILY PROTECTION
This is all about having a "inancial safety net in 
place so that your family can remain "inancially 
secure should the unthinkable happen. Family 
protection will typically include life insurance, 
critical illness cover and income protection.
It is also essential to make a Will that shares 
your wishes after death. You will need to appoint 
executors and trustees to administer your estate 
and ensure it is shared in the way you intended 
it to be. You can also determine who will be your 
child’s guardian, should you die before they 
become adults.
FINANCIAL FOUNDATION
All parents want to give their child the best 
possible start in life. As a new parent, one of your 
key priorities is undoubtedly ensuring that your 
child has everything they need to lead a happy 
and successful life. Part of this involves setting 
aside money for their future – whether it be for 
their education, purchasing a "irst property or 
simply establishing a solid "inancial foundation. 
It can also teach them valuable lessons about 
managing their "inances. 
When it comes to saving and investing, the 
sooner you begin, the more time the money 
has to grow. Options may include: Bank/
building society accounts, Junior Individual 
Savings Accounts(JISAs) and a Junior Self-
Invested Personal Pension (JSIPP). No matter 
how you choose to save or invest for your 
child’s future, the important thing is that you 
start now. 
THE VALUE OF INVESTMENTS CAN FALL AS 
WELL AS RISE AND YOU COULD GET BACK LESS 
THAN YOU INVEST. IF YOU’RE NOT SURE ABOUT 
INVESTING, SEEK PROFESSIONAL ADVICE.
Source data:
[1] https://cpag.org.uk/policy-and-campaigns/
report/cost-child-2021
///O N E  O F  T H E  B E ST  WAY S 
TO  P R E PA R E  FO R  T H E  A D D E D 
EXPENSE S  OF  HAVING  A  BABY 
IS  TO  CREATE  A  BUDGET.  TRACK 
YO U R  I N C O M E  A N D  S P E N D I N G 
SO  YO U  H AV E  A  C L E A R  I D E A  O F 
WHERE  YOUR  MONEY  IS  GOING 
EACH  MONTH .
FINANCIAL PLANNING  25
GENERAL PRINCIPLES TO HELP YOU ATTAIN SPECIFIC GOALS
The cost of living crisis is putting immense pressure on many 
households across the country. In order to make ends meet, some people 
are cutting back on their spending and looking for ways to save money. One 
of the best ways to save money is to set goals.
NEED HELP IMPROVING YOUR  
OVERALL FINANCIAL WELLBEING?
By taking the time to set "inancial goals, you can 
improve your overall "inancial wellbeing and 
put yourself on the path to success. To "ind out 
more, please contact us for more information.
HOW TO IMPROVE YOUR 
FINANCIAL HEALTH
Setting "inancial goals can help you stay on 
track with your spending and make sure 
that your money is going towards what is 
most important to you. When you have a goal in 
mind, it is easier to resist temptation and make 
wise choices with your money.
ACHIEVING FINANCIAL STABILITY
Being "inancially stable has been identi"ied as 
the top goal or dream by almost seven in ten 
people, according to new research[1]. Over half say 
setting goals makes them feel motivated to work 
towards them. 
The "indings show nine in ten of us are 
working towards some kind of goal or aspiration, 
with the majority (70%) working to achieve 
"inancial stability. This was followed by becoming 
a homeowner (40%) and then to be successful in 
their job (37%).
POWER TO ACHIEVE GOALS 
Almost three-quarters of people felt that they 
had the power to achieve their goals in their 
own hands; however, one in ten felt this was 
completely down to luck. Just over half of 
people (52%) said "inancial barriers were the 
biggest obstacle to achieving their goals, 
leading some to put their plans on hold. 
In fact, 28% of respondents said that 
they had done this because they had less 
disposable income to put towards their plans. 
This was followed by having low motivation 
(23%) and not wanting to take risks during 
uncertain times (19%).
ORGANISED AND IN CONTROL 
For some people, the act of setting the goal was 
inspiring in itself. Over half (51%) said they felt 
motivated by having the challenge. Over two-"ifths 
(41%) said they felt organised and in control of their 
life while chasing a dream. 
However, for others there are di!erent emotions, 
such as anxiety or worry experienced by almost 
a third (29%) when tackling a new challenge. 
Thinking about what hasn’t been achieved was a 
cause of upset for over one in ten (15%).
If you’re not sure where to start with setting 
"inancial goals, there are a few key things to 
keep in mind:
1. Be realistic – it’s important to set goals that are 
achievable and realistic, based on your current 
"inancial situation.
2. Set speci"ic targets – rather than setting 
vague goals such as ‘saving more money for 
retirement’, try to be as speci"ic as possible with 
your targets, for example, ‘save an additional 
£500 monthly for my retirement’.
3. Make a plan – once you’ve identi"ied your 
goals, take some time to develop a plan of action 
for how you’re going to achieve them.
4. Review and adjust – as your circumstances 
change, it’s important to review your goals and 
make any necessary adjustments along the way.
ACHIEVING A GOAL OR ASPIRATION
The vast majority of us are working towards 
achieving a goal or aspiration, whether it’s to do 
with our personal, "inancial or professional lives. 
Having a goal to work towards can be extremely 
motivating, as it gives us that boost to keep going 
in the face of di#iculties and obstacles. 
Achieving our ambitions rarely, if ever, happens 
overnight but don’t be downhearted, as making 
regular small steps towards a goal really can 
grow into huge strides. A great "irst step is to seek 
the help of a professional "inancial adviser who 
can create the right path to "inancial freedom, 
whatever life throws at us. 
Source data:
[1] The research was carried out online by 
Research Without Barriers – RWB, between 
18 February 2022 and 22 February 2022, from a 
sample comprising 1,001 UK adults.
///A L M O ST  T H R E E "Q UA RT E R S 
OF  PEOPLE  FELT  THAT 
THEY  HAD  THE  POWER  TO 
AC H I E V E  T H E I R  G OA L S 
I N  T H E I R  OW N  H A N D S ; 
HOWEVER ,  ONE  IN  TEN  FELT 
THIS  WA S  C OMPLETELY 
D OW N  TO  LU C K . 
FINANCIAL PLANNING ESSENTIAL TO HELP 
BALANCE PRIORITIES
As the cost of living crisis continues to rise, midlifers are set to be impacted 
particularly hard. This is because many midlifers are still paying o"f mortgages 
and other debts, while also trying to support their families. This means that 
they often have less disposable income than younger people.
In addition, midlifers are more likely to face 
redundancy or early retirement, which can 
make it even harder to make ends meet. And, 
with life expectancy increasing, midlifers are also 
likely to need to pay for more health care and 
other costs in their later years.
FINANCIAL RESPONSIBILITY COULD RISE
According to new analysis, the "inancial 
responsibility of people in midlife (40 to 60 
years old) could rise signi"icantly in 2022[1]. 
Midlifers who provide "inancial support to adult 
loved ones (17%) could be impacted twice by 
the cost of living crisis, due to increases in their 
own household bills and those of the adult loved 
ones they support.
Households are likely to see their income 
a!ected by a minimum of £1,200 this year due 
to tax rises and soaring energy bills[2], which 
could see midlifer households’ essential bills 
increase by at least 10% (from £12,457 a year 
to £13,657[3]). This is on top of the £3,577 that 
midlifers already provide in "inancial support to 
their adult loved ones.
STEEPEST LEVELS OF SUPPORT
The e!ect could be a particular problem for 
people aged 40 to 44 years old, who face the 
steepest levels of support. Despite the fact that 
their household income is at its highest point 
(£38,956 on average), their outgoings (£13,491) 
and non-mortgage debt (£19,149) combined with 
their "inancial support for loved ones (£4,195) are 
the highest of any other group in midlife.
People in midlife who provide "inancial 
support for their loved ones are often called 
upon to help with the cost of monthly 
essentials, so are likely to su"fer from the rising 
cost of living twice. As the data shows, this is 
particularly true for people in their early forties, 
who have high outgoings and tend to provide 
a greater degree of "inancial support. 
Source data:
[1] Opinium survey of 4,009 UK adults aged 
between 40 and 60 years old in the UK was 
conducted between 28 December and 
6 January 2021.
[2] Year of the Squeeze, Resolution Foundation.
[3] Average essential outgoings for midlifers 
were £12,457; an increase of £1,200 as predicted 
by the Resolution Foundation could see them 
increase by 10% to £13,657.
IT’S GOOD TO TALK
The cost of living crisis is putting a signi"icant 
strain on many household budgets, and is 
leaving some midlifers struggling to make 
ends meet. All of this means that you need to 
be especially careful about how you manage 
your "inances. To discuss your situation or to 
"ind out more, please contact us.
MIDLIFERS SET TO BE IMPACTED 
TWICE BY THE COST OF LIVING
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26  COST OF LIVING