pensions of significant value

Chancellor Jeremy Hunt’s first proper Budget of 2023, on Wednesday 15 March, brought some welcome but unexpected changes to pension tax. Britons can now expect significant changes that will affect their retirement savings.
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.
pensions retirement retirement planning financial advice PENSION invest retire TAX plan inancial
About Tudor Franklin IFA

pensions retirement retirement planning financial advice PENSION invest retire TAX plan inancial
EARLY BIRD  
INVESTORS  
Does the early bird  
get the ISA worm?
GIVING  
WHILE LIVING
What will your legacy 
look like?
PROFESSIONAL FINANCIAL  
ADVICE MATTERS
Making informed decisions about how 
best to allocate your resources
PENSIONS OF 
SIGNIFICANT 
VALUE
WELCOME BUT UNEXPECTED 
CHANGES TO PENSION TAX
MAY/JUNE 2023
Welcome to our latest edition. In this issue, Chancellor 
Jeremy Hunt’s !irst proper Budget 2023, on Wednesday 
15 March, brought some welcome but unexpected 
changes to pension tax. Britons can now expect 
signi!icant changes that will a"ect their retirement 
savings. On page 10 we consider how these changes 
could impact on your pension and secure your 
retirement plans. The most signi!icant change was the 
abolition of the pension Lifetime Allowance (LTA).
If you’re an investor looking to maximise your 
Individual Savings Accounts (ISA) returns, it’s worth 
considering investing your ISA allowance as soon as 
possible each year, as soon as it becomes available on 
6 April. Not only will this help ensure that your money 
is protected from taxes right o" the bat, but it also 
means that your investment has more time to grow 
in the market. This can result in a bigger ISA pot in the 
long run. Read the full article on page 06.
April brought a host of changes to the UK’s tax 
regime, with some thresholds for taxes such as 
additional rate Income Tax being lowered while others 
are increased, such as Corporation Tax. However, 
the Inheritance Tax (IHT) nil-rate band has remained 
stagnant at £325,000 since 2009, despite the 
meteoric rise in property prices over the same period. 
On page 11 we look at how this has resulted in an all-
time high of £6.1bn being collected in Inheritance Tax 
in 2021/22. 
Financial planning is a crucial step towards achieving 
!inancial freedom and security. According to a recent 
study, UK consumers who receive professional !inancial 
advice can expect to retire on average three years 
earlier than those who do not seek professional advice. 
Turn to page 13 to see the !indings.
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
MAY/JUNE 2023
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, Inheritance Tax planning, estate planning, or Will writing.
C O N T E N T S
04
MIND THE STATE PENSION GAP
Knowing how much you’ll receive is 
vital for planning your future !inances
05
STATE PENSION
How much has the 2023/24 State 
Pension increased by?
06
EARLY BIRD INVESTORS
Does the early bird get the ISA worm?
08
MORE PEOPLE CHOOSING  
SEMI!RETIREMENT FOR A  
VARIETY OF REASONS
Two in !ive over-55s plan to gradually 
phase out working life before State 
Pension age
10
PENSIONS OF SIGNIFICANT VALUE
Welcome but unexpected changes to 
pension tax
11
GIVING WHILE LIVING
What will your legacy look like?
12
SPRING BUDGET 2023
How the changes a"ect pensions 
and taxes
13
PROFESSIONAL FINANCIAL  
ADVICE MATTERS
Making informed decisions about how 
to best allocate your resources
14
FINANCIAL WELLBEING
More than 24.5 million people are 
!inancially disengaged
READY TO DISCUSS SAFEGUARDING  
AND EXPANDING YOUR WEALTH TO 
PROVIDE YOU WITH FINANCIAL STABILITY?
Our primary goal is to safeguard and expand your 
wealth to provide you with !inancial stability in the 
present as well as in the future. We understand 
that our clients have unique goals, visions and 
timeframes, which is why we o"er personalised 
services to meet their individual needs. If you 
would like to discuss your plans or want to 
arrange an appointment, please contact us.
06
C O N T E N T S
 16
SECURING AN INCOME STREAM  
FOR THE REST OF YOUR LIFE
Deciding what to do with your pension fund 
can be a complex decision
18
RELYING ON AN INHERITANCE FOR 
FUTURE FINANCIAL SECURITY
50% of British adults admit to having 
checked the value of their parents’ property
20
RETIREMENT MATTERS
Will you have enough funds to cover your 
desired lifestyle after you stop working?
21
PRINCIPLES OF GROWING YOUR MONEY
Investing could help you beat in!lation and 
build a nest egg for the future
24
WANT TO HELP GIVE THE YOUNGER 
GENERATION A BOOST?
One in twelve grandparents use property 
wealth to support grandchildren
26
PASSING ON ASSETS TAX!EFFICIENTLY
How to ensure that your wealth is preserved 
for future generations
28
COMBINING DRAWDOWN  
WITH AN ANNUITY
Enjoying a comfortable and sustainable 
retirement income that gives you the  
best of both worlds
29
THINK OF LIFE INSURANCE  
LIKE A SAFETY NET
Make sure your dependents have the money 
they need if you were no longer around
30
GENDER PENSION GAP
Gap in pension bene!its between  
men and women widens
32
BUILDING UP MORE TAX!FREE  
MONEY IN YOUR PENSION
Changes present signi!icant opportunities 
for various individuals
33
TIME TO GIVE ANNUITIES  
ANOTHER CHANCE?
Nearly one million pre-retirees  
considering annuities
34
I HAVE A WILL, SO WHY DO I NEED  
A LASTING POWER OF ATTORNEY?
Making decisions in relation to your  
!inancial a"airs, health and welfare
08
26
30
14
KNOWING HOW MUCH YOU’LL RECEIVE IS VITAL 
FOR PLANNING YOUR FUTURE FINANCES
The State Pension age is set to rise to 67 by 2028, followed by a subsequent 
rise to 68 between 2044 and 2046. However, there is currently a review being 
conducted to determine the appropriateness of the existing timetable.
This review will help to determine whether 
further adjustments to the State Pension age will 
be required in the future. As a result, it is likely 
that individuals’ retirement planning will need to 
be !lexible enough to accommodate potential 
future changes to the State Pension age.
ACCESSIBLE INFORMATION 
New research has revealed that one in seven (14%) 
of retirees received less money from the State 
Pension than they had expected[1]. This highlights 
the need for more accessible information on 
what individuals can expect to receive from the 
government during their later years. 
The study also revealed that a !ifth (20%) of 
retirees were unaware of how much they would 
receive from the State Pension before they 
retired, while one in ten (9%) found it challenging 
to determine what their payments would be. 
KNOWLEDGE GAP
The lack of awareness was observed not only 
among full-time workers but also part-time 
workers, with the knowledge gap being signi!icant 
between homeowners (38% unsure) and those 
living in rented accommodation or with family 
members (50% and 54%, respectively). 
The study also found that pre-retirees shared 
a similar level of uncertainty regarding their 
State Pension. Approximately three in ten (28%) 
respondents did not know their State Pension 
age, while 44% were unaware of the amount they 
could expect to receive from the State Pension 
upon retirement.
TRIPLE LOCK
Questions surrounding the ‘Triple Lock’ and the 
potential for the planned rise in State Pension age 
to 68 to be brought forward have added to the 
uncertainty surrounding the State Pension.
It’s essential to note that individuals need to 
claim their new State Pension as it is not granted 
automatically. Typically, an invitation letter 
would be sent no later than two months before 
reaching the State Pension age, explaining the 
steps to claim the pension bene!its. 
PENSION ENTITLEMENTS 
If someone is nearing the State Pension age and 
has not received an invitation letter, the individual 
could still submit a claim. In such cases, the 
quickest way to apply for the pension is online.
The constantly changing landscape can make 
it di#icult to keep up with the latest information 
and seek advice on the value of pension 
entitlements and the age at which people will 
qualify for payments. As the State Pension is a 
crucial source of retirement income for many 
people, knowing how much they will receive is 
vital for planning their future !inances. W
Source data:
[1] Boxclever conducted research among 
6,000 UK adults. Fieldwork was conducted 
6 Sept–16 October2022. Data was weighted 
post-!ieldwork to ensure the data remained 
nationally representative on key demographics. 
Comparisons to data from last year are taken 
from Boxclever research among 4,896 UK adults 
conducted between 16 and 23 July 2021.
MIND THE STATE  
PENSION GAP
FINDING PLANNING FOR YOUR  
RETIREMENT A DAUNTING TASK?
We understand that planning for retirement 
can be a daunting task, which is why we o"er 
our expertise to make the process as smooth 
and stress-free as possible. We’ll review your 
retirement plans and give you personalised 
advice on where to save and how to make 
your !inances more tax-e#icient. We take pride 
in doing the hard work needed to ensure that 
you’re in the best possible position when it 
comes to your pensions. For more information 
about your retirement options, please contact us.
04 RETIREMENT
HOW MUCH HAS THE 2023/24 STATE PENSION INCREASED BY?
If you are a UK resident planning for your retirement, it’s important to be 
aware of the State Pension changes that have taken effect in the new tax 
year. From April, the amount you can now receive as part of the UK State 
Pension has risen, which will be welcome news to those who have retired or 
are nearing retirement age.
Knowing what to expect from your future 
State Pension, and when you can expect to 
start receiving it, is an essential part of planning 
for retirement. This may involve making 
contributions to the National Insurance scheme, 
which can provide additional entitlements on top 
of the basic State Pension.
Unlike a private pension, the State Pension is a 
four-weekly payment made by the government to 
people who have reached the qualifying age and 
have paid enough National Insurance contributions.
In November last year, the government 
con!irmed that the State Pension would increase 
by 10.1% – in line with September’s Consumer 
Prices Index (CPI) measure of in!lation.
From April 2023, payments are:
    £203.85 a week (up from £185.15) for the full, 
new !lat-rate State Pension (for those who 
reached State Pension age after April 2016)
    £156.20 a week (up from £141.85) for the 
full, old basic State Pension (for those who 
reached State Pension age before April 2016)
HOW IS THE STATE PENSION AGE 
CHANGING?
In addition to the increase in the pension amount, 
there are also changes being considered to the 
State Pension age. This means that the age at 
which you can start receiving your pension may 
be adjusted in line with life expectancy changes.
The government says 12.4 million people 
currently receive the State Pension. Men and 
women born between 6 October 1954 and 5 April 
1960 start receiving theirs at the age of 66.
But for people born after this date, the State 
Pension age is gradually increasing to 67 by 2028 
and 68 by 2046. At a cost of £105 billion, the 
StatePension accounts for just under half the total 
amount the government spends on bene!its. W
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.
STATE PENSION
WANT TO EXPLORE YOUR OPTIONS  
FOR RETIREMENT SAVINGS?
The key to successful retirement planning is to 
start early and stay informed. By keeping up to 
date with State Pension changes and exploring 
your options for retirement savings, you can 
help ensure a !inancially stable and comfortable 
retirement. To get your retirement plans in motion, 
talk to us about your !inances. We look forward to 
hearing from you.
RETIREMENT  05
DOES THE EARLY BIRD GET THE ISA WORM?
If you’re an investor looking 
to maximise your Individual 
Savings Accounts (ISA) returns, 
it’s worth considering investing 
your ISA allowance as soon as 
possible each year, as soon as it 
becomes available on 6 April. Not 
only will this help ensure that 
your money is protected from 
taxes right off the bat, but it also 
means that your investment has 
more time to grow in the market. 
This can result in a bigger ISA pot 
in the long run.
Of course, this strategy may not be right 
for everyone, and there are risks to investing in 
the market. It’s important to carefully consider 
your investment goals, risk tolerance and overall 
!inancial situation before making any investment 
decisions. However, for many investors, investing 
their ISA allowance early on can be a smart move 
that pays o" over time.
HIGHLY EFFICIENT WAY TO PROTECT 
INVESTMENTS FROM TAX
An Individual Savings Account (ISA) is a highly 
tax-e#icient way for people to protect their 
investments from tax. In the 2022/23 tax year, 
everyone in the UK had an annual Capital Gains 
allowance of £12,300, which was reduced to 
£6,000 in the Autumn Statement on  
17 November 2022. This will reduce further to 
£3,000 from April 2024. 
However, when you invest into an ISA, you 
can enjoy tax-e#icient returns and don’t need to 
declare any interest from an ISA or any income or 
capital gains made from it when completing your 
annual tax return.
MAKE SURE YOU USE  
YOUR FULL ISA ALLOWANCE
The maximum amount that can be invested 
into an ISA in the 2023/24 tax year is £20,000. 
This allowance hasn’t changed since April 2017 
when it was increased from £15,240 and is higher 
than the £7,000 maximum allowance o"ered in 
2008. However, any unused allowance will not 
carry over to the next tax year, meaning that 
it’s essential to make sure you use your full ISA 
allowance during the current tax year if possible.
Investing early can certainly o"er many 
bene!its, including an extra year of tax-sheltered 
growth. However, it’s important to be aware that 
investing outside of an ISA can come with tax 
risks. The halving of the dividend tax allowance 
this tax year means that you may end up paying 
tax on dividends earlier in the year if you hold 
investments outside of an ISA.
TAKE ADVANTAGE OF POUND COST 
AVERAGING
Starting an ISA early in the tax year provides 
many bene!its when investing, particularly when 
it comes to setting up regular monthly payments 
into a Stocks & Shares ISA. By doing so, you 
can take advantage of pound cost averaging, 
which is a process of drip-feeding money into 
an investment over time in order to reduce the 
impact of market ups and downs.
The idea behind pound cost averaging is that 
when you invest a !ixed sum every month, you’ll 
buy more units when an investment’s price falls, 
which can provide the potential for greater pro!its 
if they then rise. 
EARLY BIRD 
INVESTORS
06 INVESTMENT
ESTABLISHING A REGULAR  
INVESTMENT PLAN EARLY ON
Of course, the opposite can also be true – if prices 
rise, you’ll buy less. However, over time, pound cost 
averaging can help to smooth out the ups and 
downs in an investment’s value, reducing the risk 
of dramatic swings in your portfolio.
By establishing a regular investment plan early 
on, you’ll also be able to take advantage of the 
full tax year for your investments, allowing you to 
spread your investments across the entire year. 
This can help to reduce the risk of investing all of 
your money at a time when the market may be 
overvalued.
GOOD NEWS IS THAT YOU  
CAN TRANSFER YOUR ISA
Transferring an existing ISA could also be a 
practical option if you’re looking for a more 
competitive deal or want to consolidate your 
investments. The good news is that you can 
transfer your ISA at any point during the tax 
year, but it’s essential to take note of some things 
before you do. 
For instance, you need to transfer the whole 
ISA, so you cannot partially transfer your 
existing Stocks & Shares ISA for the current 
tax year. It’s wise to check with your current 
provider if they impose fees for transferring 
out. Taking this step can help you avoid 
unnecessary costs and ensure that you get the 
most out of your investment.
CONSISTENTLY MAX OUT YOUR ISA 
ALLOWANCE EACH YEAR
The old adage holds true when it comes to 
investing: time in the market is more important 
than timing the market. This means that the longer 
your money is invested, the more time it has to 
grow and potentially compound over time.
Investing in an ISA can be a great way 
to grow your savings pot beyond the limits 
of a tax-e#icient allowance. It’s important to 
consistently max out your ISA allowance each 
year, if a"ordable, and enjoy generous investment 
returns. Even if you don’t have a large lump sum 
to invest, you can still bene!it from regular, small 
contributions from the beginning of the new tax 
year. So start saving and investing today and see 
how far you can go! W
THIS ARTICLE DOES NOT CONSTITUTE TAX 
OR LEGAL ADVICE AND SHOULD NOT BE RELIED 
UPON AS SUCH. TAX TREATMENT DEPENDS ON 
THE INDIVIDUAL CIRCUMSTANCES OF EACH 
CLIENT AND MAY BE SUBJECT TO CHANGE IN THE 
FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL 
ADVICE.
THE VALUE OF YOUR INVESTMENTS (AND ANY 
INCOME FROM THEM) CAN GO DOWN AS WELL 
AS UP, SO YOU COULD GET BACK LESS THAN YOU 
INVESTED. PAST PERFORMANCE IS NOT A RELIABLE 
INDICATOR OF FUTURE PERFORMANCE.
READY TO PUT YOUR 2023/24 ISA 
ALLOWANCE TO WORK NOW?
If you’re considering using your ISA allowance this 
year, don’t wait until the last minute. Invest early 
and give yourself the best chance of maximising 
your returns. Whatever your investment goals, 
we’ll help you to grow your wealth in a way that’s 
right for you. So why wait? Let us help you make 
the most of your ISA allowance today. To !ind out 
more please contact us.
///  T R A N S F E R R I N G  A N  E X I ST I N G 
IS A  COULD  AL SO  BE  A  PRAC TIC AL 
OP TION  IF  YOU ’ RE  LOOKING  F OR 
A M O R E C O M P E T I T I V E D E A L O R 
WA N T  TO  C O N S O L I DAT E  YO U R 
INVE STMENT S .  THE  GOOD  NEW S 
IS  THAT  YOU  C AN  TRANSFER 
YO U R  I S A  AT  A N Y  P O I N T 
DURING  THE  TAX  YE AR ,  BUT  IT ’ S 
ES S E N T I A L  TO  TA K E  N OT E  O F 
SOME  THINGS  BEF ORE  YOU  DO. 
INVESTMENT 07
TWO IN FIVE OVER-55S PLAN TO GRADUALLY PHASE  
OUT WORKING LIFE BEFORE STATE PENSION AGE
Semi-retirement is an option to 
consider for individuals who may 
not be ready to fully retire, but still 
wish to reduce their work hours and 
gradually phase out working life. 
By choosing to semi-retire, you can 
maintain a good work-life balance 
while still earning an income. 
Many people choose to semi-retire as it allows 
them to enjoy their hobbies, travel and spend 
more time with their loved ones. This option also 
provides a smooth transition into retirement, 
enabling you to adjust and focus on what truly 
matters in life.
CHANGING ATTITUDES  
TOWARDS EMPLOYMENT
A recent study has identi!ied that more than two 
in !ive (44%) 55$64-year-olds plan to move into 
‘semi-retirement’ before they reach 65, allowing 
them to draw on their pension savings while 
continuing to work part-time[1].
The study investigated changing attitudes 
towards employment and retirement as a result 
of the Covid-19 outbreak. The !indings highlighted 
people’s shifting emotional and !inancial wellbeing 
as they deal with post-pandemic job insecurity.
CONTINUING TO WORK  
THROUGH RETIREMENT
More than nine in ten (91%) people said they 
were ‘much happier’ after reducing their working 
hours, implying that semi- or partial retirement 
– ‘part-tirement’ – could be the solution for more 
than half (55%) of workers who like the idea of 
continuing to work through retirement, giving 
them freedom in later life while remaining part of 
the workforce.
Retirement can account for up to a third of an 
individual’s life as life expectancy continues to 
rise and more individuals than ever are surviving 
to age 100 and beyond. Recent changes in 
government policy, such as the increase in the 
State Pension age to 67 in 2028, have caused 
people of all ages to reconsider their plans for 
work and retirement.
FLEXIBLE STRATEGY TO  
WORKING LATER IN LIFE 
Over three-quarters of 18$34-year-olds, or 59%, say 
they intend to semi-retire before the age of 65, 
rising to 61% of those aged 35$44. The !indings 
show that longer working lives are prompting 
younger people to consider a !lexible strategy to 
working later in life in order to keep their career.
According to recent ONS data, 48,000 over-
50s have lately returned to the workforce, as 
Chancellor Jeremy Hunt encourages people who 
MORE PEOPLE CHOOSING 
SEMI-RETIREMENT FOR A 
VARIETY OF REASONS
08 RETIREMENT
have retired or are considering retirement to 
pursue part-time or full-time work to help alleviate 
some of the UK’s labour shortage challenges.
HELP IMPROVE MENTAL AND  
PHYSICAL HEALTH 
But the study indicates that people prefer to work 
past the age of retirement, implying that the UK’s 
workplace participation problems would not just 
be solved by encouraging people to return to 
work. Four in !ive, or 80%, of those over the age 
of 65 said they enjoyed the notion of working 
into retirement, with at least two in !ive, or 41%, of 
other age groups, agreeing.
Continuing to work can help improve mental 
and physical health, which informs overall 
wellbeing, and it can also keep loneliness and 
isolation at bay. The urge to retire early is 
frequently motivated by persons seeking more 
independence while being physically strong and 
healthy enough to enjoy it.
SEMI!RETIREMENT CAN BE  
A WIN!WIN SITUATION
The study shows that semi-retirement can be 
a win-win situation for both employers and 
employees, as companies gain from preserving 
the skills and knowledge of skilled workers in the 
workforce, while workers can make decisions 
about maintaining a healthy lifestyle and income 
in retirement.
In a climate where longer working lives are 
becoming the norm, semi-retirement is a chance 
to experience the ‘best of both’, which can bene!it 
both employees and employers. Retaining 
connection to the workplace is an appealing 
option for many people who are still working 
towards their !inancial goals or are simply not 
ready to stop working. 
MAKE A BIG, POSITIVE  
DIFFERENCE IN THE LONG TERM
It also provides an opportunity for employers to 
continue to harness the knowledge and expertise 
of more experienced sta" for longer. As people 
live longer, investing time in ourselves and 
considering every option available in later life is 
the best way to ensure we have the retirement 
we aspire to. Starting to think and plan further 
ahead is a small step that can make a big, positive 
di"erence in the long term.
The study clearly identi!ies that semi-
retirement looks set to continue to be a popular 
option for many retirees, and for good reason. 
Whether you choose to work part-time for 
!inancial reasons or simply because you enjoy 
it, semi-retirement can be a great option for 
anyone looking to make the most of their 
retirement years. W
Source data:
[1] Research among 2,000 UK employees 
working in organisations with over 1,000 
employees was conducted independently on 
behalf of Aviva by Quadrangle in February 2020, 
August 2020, March 2021 and June 2022. Not 
all !igures add up to 100% as !igures have been 
rounded throughout the report.
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.
///  A R E C E N T S T U DY H A S 
IDENTIFIED  THAT  MORE  THAN 
TW O  I N  F I V E  O R  !!"  O F  ##$%! 
YE AR $OLDS  PLAN  TO  MO VE  INTO 
‘S E M I $R E T I R E M E N T ’  B E F O R E 
THEY  RE A CH  %# ,  ALLO WING  THEM 
TO  D R AW  O N  T H E I R  P E N S I O N 
SAV I N G S  W H I L E  C O N T I N U I N G  TO 
WO R K  PA R T$T I M E &'( .
WILL YOU ENJOY FINANCIAL  
STABILITY DURING YOUR  
GOLDEN YEARS?
Planning and saving for retirement is essential 
if you want to enjoy !inancial stability during 
your golden years. It’s important to start early 
to take advantage of compound interest and 
give yourself the largest possible nest egg. To 
discuss your retirement plans, please contact us 
for more information.
RETIREMENT 09
WELCOME BUT UNEXPECTED CHANGES TO PENSION TAX
Chancellor Jeremy Hunt’s first proper Budget 2023, on Wednesday 15 March, 
brought some welcome but unexpected changes to pension tax. The changes 
are designed to alleviate the impact of strict pension rules, which are believed 
by Mr Hunt to have had a negative impact on the country’s labour market.
Britons can now expect signi!icant changes 
that will a"ect their retirement savings. But 
to fully understand how these changes 
could impact on your pension and secure 
your retirement plans, it is essential to obtain 
professional !inancial advice.
EXCEEDING THE ALLOWANCE
The most signi!icant change was the abolition of 
the pension Lifetime Allowance (LTA) charge. As 
of 6 April 2023, the LTA for registered pension 
schemes has been completely removed, with 
total abolition set for April 2024. The LTA was 
previously the maximum amount of savings an 
individual could make in a registered pension 
scheme without incurring a tax penalty.
The standard LTA for the 2022/23 tax year 
was set at £1,073,100, which meant those with 
pensions exceeding this amount would face a 
tax charge. However, with the abolition of the 
LTA, individuals can now contribute as much as 
they like to their pension schemes without fear 
of being penalised for exceeding the allowance.
TAX!FREE LUMP SUM
This is particularly good news for those with 
pensions of signi!icant value, as the value 
their pension funds can grow to will no longer 
be capped. It is also worth noting that the 
government tax relief on pension contributions 
will still be available, which means individuals 
can continue to bene!it from this incentive.
Additionally, under the previous LTA rules, an 
individual could withdraw up to 25% of their 
pension savings as a tax-free lump sum, but 
that has now changed. The tax-free lump sum 
that can be drawn at age 55, moving to 57 
from 2028, is now capped at £268,275 (unless 
protection is in place).
UK’S PENSION SYSTEM
To ensure that your retirement plans are not 
impacted by these changes, it is essential 
to obtain professional !inancial advice and 
discuss what is the best course of action for 
your situation.
The removal of the LTA charge marks a 
signi!icant change to the UK’s pension system, 
and it remains to be seen how this will impact 
pension savings and retirement planning in the 
years to come.
ATTRACTIVE INVESTMENT OPTION 
The tax-relievable annual pension contribution 
limit has also increased from £40,000 to 
£60,000, unless tapering applies, which is good 
news for most people.
Pensions have always been an attractive 
investment option with tax-relievable 
contributions, tax-free returns, and in most cases 
no Inheritance Tax. The removal of the LTA tax 
regime and the opportunity to rebuild pension 
bene!its with an increased allowance are 
excellent news for long-term !inancial wellbeing.
BURDEN OF INCOME TAX 
While Individual Savings Accounts (ISAs) have 
remained unchanged, they still are an essential part 
of a tax-e#icient savings and investment strategy. 
This strategy removes the burden of Income Tax 
and Capital Gains Tax (CGT). With the current 
reduction in the CGT allowance to only £6,000, ISAs 
and pensions become even more critical.
In summary, the Chancellor’s budget was 
constrained, but the message is clear – it’s time 
to take advantage of the saving incentives. W
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.
PENSIONS OF 
SIGNIFICANT VALUE
ARE YOUR EXISTING PENSION  
PLANS SUFFICIENT TO PROVIDE YOU  
WITH A COMFORTABLE RETIREMENT?
If you’re feeling unsure about how the recent 
changes in pension tax rules might have 
impacted your retirement plans, we’re here to 
help. We can o!fer expert advice and guidance 
on your retirement planning, whether you’re 
in the middle of building your pension pot or 
preparing for retirement. To learn more about 
how we can help you, please don’t hesitate to 
get in touch.
10  RETIREMENT
ESTATE PLANNING 11
WHAT WILL YOUR LEGACY LOOK LIKE?
April brought a host of changes to the UK’s tax regime, with some 
thresholds for taxes such as additional rate Income Tax being lowered while 
others, such as Corporation Tax, are increased. 
However, the Inheritance Tax (IHT) nil-rate 
band has remained stagnant at £325,000 since 
2009, despite the meteoric rise in property prices 
over the same period. This has resulted in an all-
time high of £6.1bn being collected in Inheritance 
Tax in 2021/22. 
FREEZING OF THE NIL!RATE BAND
Chancellor Jeremy Hunt announced in the 
Autumn Statement on 17 November 2022 that 
the government had frozen the IHT thresholds 
for two more years. As the threshold was already 
frozen until April 2026, it means that the threshold 
is now frozen until April 2028.
If you own a home worth over £1 million, there 
is a risk that your loved ones may face a costly IHT 
bill upon inheritance, due to the freezing of the 
nil-rate band. While there is an additional residence 
nil-rate band (RNRB) of £175,000 that can apply 
when passing on the property you lived in, married 
couples or those in registered civil partnerships 
can transfer the allowance, enabling most couples 
to pass on up to £1 million tax-free, assuming they 
pass on their home to their direct descendants.
WEALTH TO FUTURE GENERATIONS 
However, if your total estate exceeds £2 million, 
the RNRB will be tapered. For every £2 by which 
your individual estate exceeds £2 million, the 
RNRB will be decreased by £1. Professional 
!inancial advice can help homeowners plan to 
mitigate the impact of IHT. 
Downsizing is a popular method to manage 
IHT, but this presents the challenge of passing 
on the sale balance to your loved ones. Planning 
for the transfer of wealth to future generations 
can be an uncomfortable topic for many families. 
However, proper estate planning can ensure a 
smooth and stress-free transition of family wealth 
to loved ones. 
FEELING FINANCIALLY SQUEEZED 
It’s understandable that many people are feeling 
!inancially squeezed in the current climate, and as 
a result, we are likely to see a rise in ‘giving while 
living’. This refers to the practice of lifetime gifting 
to loved ones, particularly adult children who 
may be struggling to make ends meet during the 
ongoing cost of living crisis. 
However, it’s important to note that the 
extended freeze on thresholds will mean that 
many people will now need to seek professional 
!inancial advice more than ever to protect their 
wealth and ensure that it is passed on according 
to their wishes, without being caught out by 
unforeseen taxes in the future. W
Source data:
[1] https://www.gov.uk/government/statistics/
hmrc-tax-and-nics-receipts-for-the-uk/hmrc-tax-
receipts-and-national-insurance-contributions-for-
the-uk-new-annual-bulletin#inheritance-tax
THIS ARTICLE DOES NOT CONSTITUTE 
TAX OR LEGAL ADVICE AND SHOULD 
NOT BE RELIED UPON AS SUCH. TAX 
TREATMENT DEPENDS ON THE INDIVIDUAL 
CIRCUMSTANCES OF EACH CLIENT AND MAY 
BE SUBJECT TO CHANGE IN THE FUTURE. FOR 
GUIDANCE, SEEK PROFESSIONAL ADVICE.
INHERITANCE TAX AND ESTATE PLANNING 
ARE NOT REGULATED BY THE FINANCIAL 
CONDUCT AUTHORITY.
GIVING WHILE LIVING
NEED ADVICE TO SECURE YOUR  
FAMILY’S FINANCIAL FUTURE?
We understand the importance of addressing these 
issues in a calm and objective manner. We can 
assist you in creating a comprehensive succession 
plan that maximises the amount of wealth passed 
down to future generations while minimising tax 
implications. Let us help you secure your family’s 
!inancial future with careful estate planning. To !ind 
out more, please speak to us.
HOW THE CHANGES AFFECT PENSIONS AND TAXES
The Spring Budget 2023 was delivered by Chancellor of the Exchequer, Jeremy 
Hunt, on March 15. Among key changes announced were those made to 
pensions, aimed at making it easier for individuals to save for their retirement 
and encouraging retirees to return to work. 
The 2023/24 tax year started on 6 April, 
and with it come some signi!icant changes to 
pensions and taxes. We’ve provided a summary 
of the key measures.
CAPITAL GAINS TAX (CGT)
The Capital Gains Tax (CGT) exemption has 
reduced from £12,300 to £6,000. This reduction 
means that any gains above the exemption 
amount will be taxed at either 10% for basic 
rate taxpayers or 20% for higher rate taxpayers. 
The rates are even higher for gains on second 
properties, with 18% and 28% for basic rate and 
higher rate taxpayers, respectively.
The change means that a higher rate taxpayer 
making a capital gain of £20,000 in the 2023/24 
tax year could face a CGT bill of £2,800, with 
this rising to £3,400 in 2024/25. This represents 
a signi!icant increase from the £1,540 bill for the 
2022/23 tax year.
It’s important to keep in mind that the CGT 
exemption cannot be carried over from one 
tax year to the next, so it’s essential to make full 
use of the exemption each year. By investing 
in an Individual Savings Account (ISA), it o"ers 
the opportunity to reduce your CGT liability as 
any gains made within an ISA are exempt from 
CGT. By being proactive and taking advantage 
of any available tax allowances, you can help 
to prevent unexpected tax bills and ensure that 
you are maximising your investment returns.
ANNUAL DIVIDEND ALLOWANCE
The annual dividend allowance has been 
reduced from £2,000 to £1,000, with a further 
reduction to £500 to be implemented in 2024/25. 
This means that dividend income exceeding the 
allowance will be taxed at rates of 8.75%, 33.75% 
and 39.35% for basic, higher and additional rate 
taxpayers respectively. 
For instance, a higher rate taxpayer receiving 
£5,000 in dividend income could pay over £1,350 
in dividend tax by 2023/24, up from £1,012.50 
in 2022/23, which is set to increase to £1,518.75 
in 2024/25. One way to avoid dividend tax is by 
investing in an ISA or contributing to a pension 
fund, which o"er tax-free dividends. If appropriate, 
maximising these tax-e#icient options is a 
popular strategy when mitigating dividend tax.
PENSION LIFETIME ALLOWANCE CHARGE
The pension Lifetime Allowance (LTA) charge has 
been abolished, which means there will no longer 
be a tax charge on the amount of money that 
can be built up in pensions tax e#iciently over an 
individual’s lifetime. From 6 April 2023, the LTA 
charge has been completely removed, with total 
abolition set for April 2024. 
Previously, any excess over £1,073,100 in 
pensions incurred a tax charge when the 
individual drew their pension bene!its assuming 
no protection was in place. Despite the removal 
of the LTA charge, the pension tax-free lump sum 
has been capped at £268,275 (unless protection 
is in place). 
So, while people can now build a larger pension 
pot without incurring a LTA tax charge, the tax-free 
lump sum will not increase along with it. This 
change may impact an individual’s decision to 
begin drawing money from their pension, also 
known as ‘crystallising’ their pension.
PENSION ANNUAL ALLOWANCE
The pension Annual Allowance has increased 
from £40,000 to £60,000. This means that 
individuals can pay up to £60,000 or 100% 
of their UK relevant earnings (whichever 
is lower) into pensions every tax year and 
receive tax relief. 
However, those with high adjusted incomes 
above £260,000 per year (previously £240,000) 
may have a lower Annual Allowance due to 
the Annual Allowance taper. This taper reduces 
the annual allowance by £1 for every £2 of 
adjusted income that exceeds the threshold, to a 
minimum !loor of £10,000 (up from £4,000).
MONEY PURCHASE ANNUAL ALLOWANCE
The Money Purchase Annual Allowance (MPAA) 
increased from £4,000 to £10,000. The MPAA 
comes into play when savers !irst access De!ined 
Contribution (DC) pensions !lexibly, and replaces 
their standard annual allowance. 
This means that individuals who access their 
DC pensions !lexibly for the !irst time can now 
pay up to £10,000 per year into their pension 
without having to worry about reducing their 
tax relief. W
THIS ARTICLE DOES NOT CONSTITUTE 
TAX OR LEGAL ADVICE AND SHOULD 
NOT BE RELIED UPON AS SUCH. TAX 
TREATMENT DEPENDS ON THE INDIVIDUAL 
CIRCUMSTANCES OF EACH CLIENT AND MAY 
BE SUBJECT TO CHANGE IN THE FUTURE. FOR 
GUIDANCE, SEEK PROFESSIONAL ADVICE.
THE VALUE OF YOUR INVESTMENTS CAN 
GO DOWN AS WELL AS UP, SO YOU COULD 
GET BACK LESS THAN YOU INVESTED. PAST 
PERFORMANCE IS NOT A RELIABLE INDICATOR 
OF FUTURE PERFORMANCE.
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.
SPRING BUDGET 2023
ARE YOU LOOKING TO SECURE  
YOUR FINANCIAL FUTURE?
We’ll work closely with you to understand your 
unique !inancial situation and help you create a 
personalised plan to achieve your future goals. 
By navigating the complexities of the !inancial 
world, you can secure a prosperous future for 
you and your loved ones. Contact us today to 
learn more.
12  SPRING BUDGET 2023
MAKING INFORMED DECISIONS ABOUT HOW TO BEST ALLOCATE YOUR RESOURCES
Financial planning is a crucial step towards achieving financial freedom and 
security. By taking the time to thoroughly evaluate your needs and personal 
goals, you’ll be able to make informed decisions about how to best allocate 
your resources. 
With a comprehensive professional !inancial 
plan in hand, you’ll have the con!idence and 
peace of mind to pursue your short-term goals 
and work towards your long-term future. With 
professional guidance, you’ll be inspired to realise 
that you have far more resources at your disposal 
than you ever imagined.
BETTER EQUIPPED 
According to a recent study, UK consumers who 
receive professional !inancial advice can expect 
to retire on average three years earlier than 
those who do not seek professional advice, with 
advised consumers planning for retirement at 
age 66 as opposed to non-advised consumers 
who expect to retire at 69[1]. 
This underlines the positive impact that 
professional !inancial advice can have on 
retirement preparations, with those who seek 
advice feeling better equipped for their later 
years. The study identi!ied that twice as many 
people who seek !inancial advice create a 
detailed spending plan in retirement compared to 
those who don’t take advice, with 45% of advised 
people falling under this category as opposed to 
18% of non-advised consumers. 
ENJOYING RETIREMENT
Financially advised consumers expect to fund 
their retirement for a longer period, with an 
average of 23 years, compared to 17 years for 
non-advised people before pertinent cutbacks 
must be made. In addition, the study reveals 
that !inancial planning tends to be bene!icial for 
people already in retirement. 
Almost all (96%) of wealthy retirees who did a 
great deal of !inancial planning or just planned 
their !inances slightly say they’re enjoying their 
retirement, dropping to 72% among those who 
have done no !inancial planning. 
MORE PRONOUNCED
Regrets for non-advised retirees are more 
pronounced, with the majority stating that they 
require more money in retirement compared 
to their original estimates, and that they wished 
they had planned more thoroughly, compared to 
advised people. 
Despite having a higher household income, 
23% of wealthier pensioners, with an income of 
between £40,000 and £49,999, wished they had 
planned more thoroughly, indicating that the value 
of advice remains consistent regardless of income.
SIGNIFICANT VARIATION 
Planning for retirement can be overwhelming, 
leading to several considerations, making 
!inancial advice crucial for people to feel more 
con!ident and prepared about their future. The 
research results underscore the signi!icant 
variation between the retirement plans and 
experiences of those who have taken advantage 
of !inancial advice and those who haven’t. 
The research !indings demonstrate the value 
of professional !inancial advice in terms of the 
retirement age and the enjoyment of one’s retired 
life. So start planning today, and take the !irst step 
towards a brighter tomorrow. W
Source data:
[1] Boxclever conducted research for 
Standard Life among 6,000 UK adults. 
Fieldwork was conducted between 
6 Sept–16 October 2022. Data was 
weighted post-!ieldwork to ensure the data 
remained nationally representative on key 
demographics. Comparisons to data from last 
year are taken from Boxclever research among 
4,896 UK adults conducted between 
16"23 July 2021.
PROFESSIONAL FINANCIAL 
ADVICE MATTERS
ANY CONCERNS ABOUT YOUR  
FINANCIAL FUTURE OR WOULD YOU  
LIKE TO FIND OUT MORE?
Financial planning can certainly feel 
complicated at !irst glance, but with the right 
guidance, it can be a smooth and stress-free 
process. At every step of your !inancial planning 
journey, we’re dedicated to providing you with 
the knowledge, resources and support you 
need to make informed decisions about your 
!inances. If you have any concerns about your 
!inancial future or would like to !ind out more, 
please contact us.
FINANCIAL PLANNING 13
MORE THAN 24.5 MILLION PEOPLE ARE FINANCIALLY DISENGAGED
Do you often review your finances? Or are you one of those people who 
just hope for the best? Although managing finances may not be the most 
exciting activity, keeping track of your financial wellbeing can make a significant 
difference to your life, both in the present and in the future. Taking control of 
your finances will enable you to meet your financial goals and improve your 
overall financial health.
Worryingly more than 24.5 million people 
(46%) feel !inancially disengaged, according to 
new research[1]. The study also shows that one in 
20 adults – the equivalent of 2.4 million people 
– were previously !inancially engaged before 
changing their behaviour[2]. 
FINANCIAL UNCERTAINTY
Key reasons for this change include feeling 
!inancially secure enough to be less diligent with 
managing their money (20%), or because other 
areas of their life have become busier (18%). 
However, almost a !ifth (17%) couldn’t state a reason.
But previous periods of !inancial uncertainty, 
such as recessions, were stated as the key driver 
for people becoming !inancially engaged (27%), 
so the current cost of living crisis could mean 
people keep a closer eye on their money.
RETIREMENT PLANNING
Almost two-thirds of respondents (62%) said they 
regularly check their household budget and their 
spending, while 73% shop around for the best deal, or 
use discount codes and vouchers (64%). On average, 
pre-retirees (those aged 55+ who are still in work) 
are more !inancially engaged than the rest of the 
population (62% compared to the UK average of 54%). 
But many are still inactive when it comes to their 
retirement planning, suggesting people might not 
know where to start. More than a third (34%) do not 
currently check their workplace pension while 28% 
do not currently review their personal pension. 
MONEY HABITS
Separate research shows one in !ive people still 
reach midlife without having engaged with their 
retirement at all[1]. Taking small steps to improve 
your money habits can have a huge impact on 
your life. It can also help you feel more in control 
of your !inancial situation. 
Against a landscape of rising costs and record 
levels of in!lation, it can be easy to bury your head in 
the sand. However, as the research shows, periods of 
!inancial di#iculty can be one of the leading reasons 
people take charge of their !inances. 
RETIREMENT FINANCES 
While it’s positive that pre-retirees, in particular, 
are more !inancially engaged than the average 
person, it is concerning that they aren’t engaging 
in vital steps to prepare for retirement, such as 
checking their pension. 
This is the !irst step of the decumulation 
phase; however, some people could be leaving 
themselves at risk of not knowing their full 
!inancial picture or how to actively manage 
their retirement !inances when they get there. 
The decumulation phase is an important 
aspect of retirement planning that many 
people overlook. 
INCOME STREAMS
During this phase, we convert our assets into 
income streams that will fund our retirement. 
With advances in healthcare and an increase in 
life expectancy, it’s becoming more important 
than ever to plan for a longer retirement. 
Investment can play a crucial role during the 
decumulation phase. 
It’s important to continue making our money 
work hard even after we retire, so that we can 
meet our !inancial needs and maintain our 
standard of living. A well-diversi!ied investment 
portfolio that balances risk and return can help us 
achieve our retirement goals.
GREATER CONFIDENCE 
To enjoy the decumulation phase with greater 
con!idence and peace of mind, it’s important 
to have a realistic projection of income !lows 
and expenses. This means creating a budget 
that takes into account expected income from 
sources such as Social Security, pensions and 
investment income, as well as our estimated 
expenses for healthcare, housing and other 
living expenses.
Preparing for retirement can be a daunting 
task, but by following a few simple tips, you can 
make sure you’re on track to living out your 
golden years in comfort and security. 
FINANCIAL WELLBEING
14  FINANCIAL PLANNING
HERE ARE THE TOP FOUR THINGS YOU CAN 
DO TO PREPARE FOR RETIREMENT:
1. PREPARE A BUDGET
One of the most important things you can 
do is to create a realistic budget that will help 
you track your expenses and income. This will 
allow you to identify any areas where you can 
cut back and save more money for retirement. 
By tracking your spending and income, you 
can create a plan that helps you save for a 
comfortable retirement.
2. CONSIDER PENSION  
DECUMULATION OPTIONS
As you approach retirement age, it’s essential 
to explore the various ways you can convert 
your pension savings into a retirement 
income. There are several options available, 
such as annuities, income drawdown and 
immediate vesting personal pensions. 
Seeking professional !inancial advice will 
help you understand your options better 
and make informed decisions about how to 
access your pension.
3. REVIEW ASSET ALLOCATION
As retirement approaches, it’s essential to reduce 
exposure to higher-risk assets such as equities. 
By reviewing your asset allocation, you can adjust 
your investments to make sure you have a well-
diversi!ied portfolio that is designed to provide 
steady income for your retirement years.
4. REVIEW YOUR PLAN REGULARLY
Regularly reviewing your progress is crucial 
to ensure you are ready for retirement and 
make the necessary adjustments if needed. 
Changes in your income, expenses or the 
!inancial climate may require you to adjust 
your plan.
By following these four tips, you can set 
yourself on a path to !inancial security for your 
retirement years.. W
Source data:
[1] Research was carried out online by Opinium 
Research amongst 4,000 UK adults aged 18+ 
between 14"20 October 2022. 1,856 participants 
indicated that they were !inancially disengaged 
in the survey. 1856/4000=46%, which equates to 
24,541,000 UK adults.
[2] 181 participants indicated that they were 
!inancially disengaged in the survey. 181/4000=5%, 
which equates to 2,390,000 UK adults.
[3] Opinium survey of 4,009 UK adults aged 
between 40 and 60 years old in the UK was 
conducted between 28 December–6 January 2021.
THE VALUE OF YOUR INVESTMENTS CAN GO DOWN 
AS WELL AS UP AND YOU MAY GET BACK LESS THAN 
YOU INVESTED.
THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL 
CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE 
IN FUTURE.
A PENSION IS A LONG TERM INVESTMENT. THE FUND 
VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR 
EVENTUAL INCOME MAY DEPEND ON THE SIZE OF THE 
FUND AT RETIREMENT, FUTURE INTEREST RATES AND 
TAX LEGISLATION.
A PENSION IS A LONG TERM INVESTMENT. THE FUND 
VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR 
EVENTUAL INCOME MAY DEPEND ON THE SIZE OF THE 
FUND AT RETIREMENT, FUTURE INTEREST RATES AND 
TAX LEGISLATION.
TIME TO START THINKING ABOUT  
YOUR RETIREMENT OPTIONS?
By planning ahead and taking the necessary 
steps, we can ensure that we have a comfortable 
retirement and enjoy the fruits of our labour. To 
tell us about your retirement goals and how we 
can help you, please contact us.
FINANCIAL PLANNING 15
///  A L MO S T TW O-THI R D S O F 
RESPONDENTS !62% "  SAID 
THEY REGULARLY CHECK THEIR 
HOUSEHOLD BUDGET AND THEIR 
SPENDING,  WHILE 73% SHOP 
AROUND FOR THE BEST DEAL, 
OR USE DISCOUNT CODES AND 
VOUCHERS !64% " . 
DECIDING WHAT TO DO WITH YOUR PENSION 
FUND CAN BE A COMPLEX DECISION
Are you approaching retirement 
age and have a pension fund that 
you need to decide what to do with? 
There are several options available to 
you, but one option is to buy a lifetime 
annuity. An annuity is a financial 
product that converts your pension 
fund into an annual pension.
If you’ve contributed to a de!ined 
contribution pension scheme during your 
working life, you may have a sizeable pension fund 
built up by the time you retire. Buying a lifetime 
annuity is one way you can use that pension fund 
to secure an income stream for the rest of your life.
COMPLEX DECISION
It’s important to remember that the !irst 25% of 
your pension pot can be taken tax-free, subject 
to no protection in place and not exceeding 
£1,073,100, but you’ll be charged Income Tax on 
any additional money you take. Furthermore, 
you may need to consider the impact on your 
eligibility for state bene!its or care services.
Overall, deciding what to do with your pension 
fund can be a complex decision. It’s important 
to consider all options available to you and seek 
professional !inancial advice to make the most 
suitable decision for your individual circumstances.
APPROACHING RETIREMENT 
Nearly one million (990,000) pre-retirees, those 
aged over 55 and still in work, are considering 
annuities for the !irst time in preparation for their 
retirement, according to new research[1].
One in six people approaching retirement but 
still working (16%) are looking at annuities due 
to improved rates against the backdrop of rising 
living costs. This is in addition to the 828,000 
(14%) of working over-55s who had always 
planned to buy an annuity in retirement[2].
PRE!RETIREES 
Aside from the improvement in rates (18%), 
people considering an annuity are drawn by the 
stability of a guaranteed income making it easier 
to plan their !inances (78%) and the assurances 
the product o"ers in a volatile market (36%). 
But there is still a lack of awareness around 
annuities. Of the one in !ive pre-retirees who 
SECURING AN  
INCOME STREAM  
FOR THE REST  
OF YOUR LIFE
16  RETIREMENT
wouldn’t consider an annuity (20%), 16% said it 
was because they believe they o"er a bad deal.
GUARANTEED INCOME
An additional two out of !ive pre-retirees (44%) 
described wanting a guaranteed income for the 
rest of their lives but only half that number want 
or are considering an annuity, despite this being 
exactly what it is designed to achieve.
There’s no hard and fast rule when it comes 
to deciding how to fund your retirement. What 
might work well now, may not be suitable for you 
in 10, 15 or 20 years’ time so it’s really important 
to remain actively engaged with it throughout 
later life. If an annuity has been purchased there 
will be no option for alteration in later life.  
FINANCIAL PRESSURES 
Despite annuities becoming more popular, 
the research shows there’s still a lack of 
understanding about what an annuity is and 
what it can o!fer. This means people risk 
having an ‘either/or’ approach to funding their 
retirement, when in fact a blended approach 
might be more suitable.
It’s important people are aware of all the 
options they have and whether a combination 
of these may present the best outcome. Having 
this knowledge will ensure people can reclaim 
their retirement at a time when they might be 
feeling lost due to !inancial pressures outside 
their control.W
Source data:
[1] This is based on Legal & General’s own data. 
The YOY data was calculated in the 12 months 
ending in October 2022.
Research was carried out online by Opinium 
Research amongst 2,003 UK adults aged 55+ who 
are still in work between the 8"17 November 2022. 
Pre-retirees relates to those aged 55+ who are still 
in work. According to ONS statistics, there are over 
6,000,000 UK adults aged 55+ who still work. 16% 
of working adults aged 55+ who had not previously 
considered an annuity are now considering one 
because of interest rates and cost of living. This 
equates to 990,000 UK adults.
[2] According to ONS statistics, there are over 
6,000,000 UK adults aged 55+ who still work. 
14% planned to buy an annuity, which equates to 
828,000 UK 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.
READY TO DISCUSS HOW YOU  
CAN MAKE SURE YOU RETIRE  
ON YOUR TERMS?
Will your !inances be able to support the 
lifestyle you want? What happens if you outlive 
your savings? The good news is that you don’t 
have to face these questions alone. We can help 
you prepare your pension and wider !inances so 
that you can retire on your terms. So don’t wait 
until it’s too late. Please contact us to discuss 
your future plans. 
RETIREMENT 17
50% OF BRITISH ADULTS ADMIT TO HAVING CHECKED 
THE VALUE OF THEIR PARENTS’ PROPERTY
RELYING ON AN 
INHERITANCE FOR FUTURE 
FINANCIAL SECURITY
18  INHERITANCE TAX
With house value data now easily available to access online, it’s interesting to 
see that so many are using this, not just to get an idea of what their own home 
may be worth, but to get an idea of the sort of amount they may get in terms 
of parental inheritance in the future. 
Some Britons impacted by the cost of 
living say that they are relying on a property 
inheritance from their parents for their !inancial 
future, and to be able to buy a home, according 
to new research[1]. The !igures show that more 
than four in ten (43%) are relying on inheritance 
from home-owning parents during increasingly 
challenging economic times. 
FUTURE FINANCIAL SECURITY
In fact, half (50%) of British adults whose parents 
own a property admit they have checked the 
value of their parents’ property. But despite 
basing their future !inancial security on their 
inheritance, only 30% say they have actually 
spoken with their parents about how much they 
are likely to inherit.
Among those whose parents own a property, 
the average amount they expect to receive is 
£195,687, with the largest portion (£182,621) of this 
money coming from property inheritance alone. 
According to the research, many are making lofty 
plans with inheritance they’ve not yet received. 
RECEIVING AN INHERITANCE
Almost six in ten (58%) expect to be able to move 
house, upgrade their home or pay o" some or 
all of their mortgage as a result of receiving their 
inheritance. Of those, 36% are renting until they 
inherit, at which point they will buy to get on the 
property ladder, whilst 29% have gone as far as 
to purchase a home on the basis they will be 
receiving an inheritance in the future to help pay 
their mortgage.
CHECKING THE VALUE
Although some claimed the primary reason for 
checking the value of their parents’ home was 
for their parents’ bene!it, with 36% saying it was 
to provide !inancial advice, a third (33%) admit 
the reason they checked the value was to get an 
estimate of their inheritance, and 27% check out 
of pure curiosity.  
Beyond checking the value of the home, 
many even admit to making plans for the home 
they expect to inherit whilst their parents still 
live there. Amongst those expecting to inherit 
a home, nearly half (44%) have designs on how 
they would change it and, incredibly, one in seven 
(14%) have already started to make changes. 
EMBARRASSING OR AWKWARD
Despite the fact most whose parents own a 
home are expecting to inherit it (68%), fewer than 
a third (30%) have asked them how much they 
are likely to receive. The primary reason given 
for not asking is they believe it is not any of their 
business (30%) whilst others opt not to simply 
because it is too awkward (13%). 
Of the 12% who checked the value of their 
parents’ home in secret, 30% admitted this was 
because it would be embarrassing or awkward to 
admit they had checked, and 25% because they 
didn’t want to look money-grabbing or for their 
parents to get the wrong idea.
HELP FINANCIAL PLANNING
Discussing the topic of inheritance is often seen 
as taboo, with a quarter (25%) of respondents 
agreeing that it is not acceptable to talk to 
anyone about inheritance. However, 43% believe 
it is acceptable to talk to your parents about 
inheritance, but only 19% believe it is acceptable 
to talk to your children about inheritance, 
suggesting that, whilst children may be keen to 
discuss inheritance with their parents to help 
!inancial planning, parents would prefer not to 
discuss it.
Perhaps explaining why so many are wary 
of discussing the topic, 30% say they have 
fallen out with family members in the past 
over inheritance discussions, and 51% think 
inheritance could be the cause of family 
arguments in the future. Currently, 41% with 
home-owning parents say they have never 
discussed inheritance with family W
Source data:
[1] https://www.zoopla.co.uk/press/releases/
half-of-brits-admit-they-have-checked-what-their-
parents-home-is-worth-with-over-four-in-ten-
admitting-they-are-relying-on-an-in/
THIS ARTICLE DOES NOT CONSTITUTE 
TAX OR LEGAL ADVICE AND SHOULD 
NOT BE RELIED UPON AS SUCH. TAX 
TREATMENT DEPENDS ON THE INDIVIDUAL 
CIRCUMSTANCES OF EACH CLIENT AND MAY 
BE SUBJECT TO CHANGE IN THE FUTURE. FOR 
GUIDANCE, SEEK PROFESSIONAL ADVICE.
INHERITANCE TAX AND ESTATE PLANNING 
ARE NOT REGULATED BY THE FINANCIAL 
CONDUCT AUTHORITY.
DEATH AND TAXES, TWO OF  
THE WORLD’S CERTAINTIES. HAVE  
YOU PLANNED FOR THESE EVENTS?
The earlier you begin your estate planning, the 
greater the opportunity to ensure that as much of 
your money as possible goes to your bene!iciaries. 
So why wait? Start planning your estate today 
and secure a better future for your loved ones. If 
you think this could a"ect you, or if you are at all 
unsure, talk to us for more information. We look 
forward to hearing from you.
INHERITANCE TAX 19
WILL YOU HAVE ENOUGH FUNDS TO COVER YOUR DESIRED 
LIFESTYLE AFTER YOU STOP WORKING?
Pensions may not be the most exciting thing to think about, but they are an 
essential part of planning for your long-term future. In fact, your pension has 
the potential to be one of your most valuable assets, even more than your 
property. It’s something that could make a significant difference to your lifestyle 
in later life.
When it comes to retirement planning, it’s 
best to start thinking ahead at least two years 
before you plan to stop working. To prepare 
for this next chapter in your life, our handy 
checklist can guide you through the important 
choices you’ll need to make to ensure you’re fully 
prepared for a comfortable retirement.
UNIQUE CHALLENGES
Although retirement planning may seem familiar 
and straightforward, the truth is that today’s 
savers face unique challenges that previous 
generations did not encounter. While the basic 
concept of working, saving and retiring remains 
constant, there are new factors at play that can 
complicate one’s retirement savings e"orts. 
Planning for your retirement means carefully 
considering whether you will have enough funds 
to cover your desired lifestyle after you stop 
working. While you might be eligible for the State 
Pension, this might not be enough to sustain 
your retirement goals. 
ADDITIONAL SAVINGS
Additionally, you may want to retire earlier than the 
State Pension age, which requires additional savings 
planning to ensure you can a"ord the retirement 
lifestyle you envisioned. Careful planning and 
forward-thinking can ensure that you’ll have the 
!inancial security to enjoy your retirement without 
worrying about money matters.
IMPORTANT THINGS TO KEEP IN MIND AS 
YOUR RETIREMENT APPROACHES:
Locate your pensions: It’s crucial to determine 
how much income you’ll receive from all your 
pensions to properly plan your retirement. If 
you’ve misplaced any pensions over the years, 
you can use the UK government’s pension 
tracking service to locate them.
Check your pension’s value: Keep track of your 
pension’s value regularly as retirement nears, 
ensuring that you’re aware of how much money 
you’ll have during your retirement phase.
When you can take your pension: With a de!ined 
contribution pension, you can start taking money 
out from the age of 55, moving to 57 in 2028. 
However, it’s important to keep in mind that the 
earlier you start taking money out, the longer your 
pension will need to last. For those with a de!ined 
bene!it pension, you can usually begin taking it 
from the age of 60 or 65. However, if you have a 
de!ined bene!it pension, you might be able to start 
receiving an income from it from the age of 55. 
You may be able to take money out before this if 
you’re retiring early because of ill health.
Get a State Pension forecast: While it may not 
be your primary retirement income, it’s worth 
checking to ensure that you qualify for the full 
amount. You can quickly do this online through 
the government’s website.
Determine the worth of your other investments: 
If you have additional investments or savings, such 
as Individual Savings Accounts (ISAs), it’s important to 
check their worth as you approach your retirement 
age because they could supplement your pension.
Understand how to access your pension: 
There are various ways to access your pension, 
including buying an annuity for guaranteed 
income, taking lump sums, or combining both. 
Your decision depends on your circumstances 
and what outcomes you expect.
Review your pension’s investment strategy: Take 
the time to analyse your investment approach as 
you approach your targeted retirement age and 
see if it still adheres to your risk tolerance. You could 
discuss potential strategies to reduce your exposure 
to higher risk investments over time with your 
!inancial advisor if you’re planning to receive a lump 
sum or purchase an annuity.
Seek professional "inancial advice: Accessing 
your pension is a critical decision that could 
impact your income and retirement signi!icantly. 
That’s why it’s essential to seek professional 
!inancial advice before making any decisions. W
THIS ARTICLE DOES NOT CONSTITUTE 
TAX OR LEGAL ADVICE AND SHOULD 
NOT BE RELIED UPON AS SUCH. TAX 
TREATMENT DEPENDS ON THE INDIVIDUAL 
CIRCUMSTANCES OF EACH CLIENT AND MAY 
BE SUBJECT TO CHANGE IN THE FUTURE. FOR 
GUIDANCE, SEEK PROFESSIONAL ADVICE.
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.
RETIREMENT MATTERS
HAVE YOU IDENTIFIED YOUR  
RETIREMENT GOALS AND DO YOU 
UNDERSTAND YOUR INCOME NEEDS?
Planning for retirement is not just about saving 
money. It’s also about envisioning your future 
and understanding your lifestyle priorities. 
By identifying your retirement goals and 
understanding your income needs, we can help 
you create a retirement plan that provides for 
your desired lifestyle and ensures your long-
term !inancial stability. Don’t leave it to chance. 
Please contact us for more information.
20  RETIREMENT
INVESTMENT 21
INVESTING COULD HELP YOU BEAT INFLATION 
AND BUILD A NEST EGG FOR THE FUTURE
Investing can be an intimidating and complex topic, but it doesn’t have to be 
with professional financial advice. Understanding the basic truths of investing 
will help you make better decisions, regardless of how much money you may 
or may not have. 
By understanding these principles, you’ll be 
one step closer to achieving your long-term goals. 
START INVESTING EARLY
Investing early is one essential way to build wealth. 
Instead of waiting until you have a large amount of 
savings or cash !low to invest, the earlier you start 
investing, the better. This is because of the power 
of compounding.
Compounding is the magical snowball e"ect 
that occurs when the pounds you earn through 
investing generate even more returns. Essentially, 
not only does the original amount you invest grow, 
but also any interest, dividends and capital gains 
that you accumulate.
And the best part? The longer you are 
invested, the more time there is for your 
investment returns to compound. So, don’t wait 
until you have a large sum of money – start 
investing early and take advantage of the 
powerful force of compounding. It can help 
you reach your !inancial goals more quickly 
and achieve the !inancial freedom you’ve been 
dreaming of.
INVESTING IS OFTEN JUST AS  
IMPORTANT AS STARTING EARLY
Investing regularly is a key strategy that can 
help you build more wealth over time and 
achieve this goal. By making investing a priority 
throughout the year – not just around certain 
deadlines – you can give yourself the best 
chance to succeed.
A disciplined approach to investing can help 
you weather all types of market conditions. 
Whether the market is rising, falling or staying 
!lat, investing regularly can help you stay on 
track. With a !ixed pound amount invested on 
a regular basis, you can buy more investment 
units when prices are low and fewer units 
when prices are high. This approach can 
potentially reduce the average cost of your 
investment over the long term.
Investing small amounts of money on a 
regular basis can also help you smooth out 
returns over time and reduce the overall 
volatility of your portfolio. By avoiding big 
market swings and focusing on the long term, 
you can build a sustainable investing plan that 
supports your !inancial goals. So, are you ready 
to make investing a priority? Start investing 
regularly today and enjoy the bene!its of a more 
disciplined and ful!illing approach to growing 
your wealth.
DIVERSIFICATION IS A KEY ELEMENT OF 
YOUR INVESTMENT STRATEGY
When it comes to investing, diversi!ication is 
key to managing risk and generating consistent 
returns. By spreading your investments across 
PRINCIPLES OF 
GROWING YOUR MONEY
di"erent asset classes, sectors and markets, you 
reduce the impact of any one investment on 
your overall portfolio.
Historically, diversi!ication has proven to be 
one of the most e"ective strategies for reducing 
volatility and achieving long-term investment 
success. By constructing a well-diversi!ied 
portfolio that includes stocks, bonds, property 
and other assets, you can help ensure that your 
returns are more stable and less subject to 
market ups and downs.
Even in times of market turmoil, a diversi!ied 
portfolio can help you weather the storm and 
stay committed to your long-term investment 
plan. Rather than reacting emotionally to short-
term market !luctuations, a diversi!ied portfolio 
allows you to stay focused on your goals and the 
bigger picture.
So if you’re looking for a solid investment 
strategy that can help you achieve your !inancial 
goals, diversi!ication should be at the top of your 
list. With the help of professional !inancial advice, 
you can construct a well-diversi!ied portfolio that’s 
tailored to your unique needs and risk tolerance.
IT’S TIME IN THE MARKET THAT MATTERS, 
NOT TIMING THE MARKET
When it comes to investing, being patient and 
consistent is key. The idea of ‘timing the market’ 
– or trying to predict when prices will go up or 
down, so you can buy at a low price and sell at a 
high one – is enticing. But in reality, this strategy 
rarely works out successfully for investors and 
even if you manage to get out of the market at the 
right time, you are likely to miss out on signi!icant 
gains when it rebounds. 
Missing just a few of the market’s strongest 
days can have a signi!icant impact on your overall 
investment returns, so it’s essential to stay invested 
and ride out the market’s ups and downs. By 
consistently investing over long periods of time, 
you are able to bene!it from compounding returns 
and give your investments more chance to grow. 
It also makes sense psychologically; since stock 
markets tend to !luctuate wildly in short periods 
but trend upwards over longer ones, staying 
invested for the long run can be less stressful. The 
longer you stay in the market, the more able you 
will be to ride out economic downturns without 
having to make desperate decisions that may 
not pan out. So, as an investor, it’s essential to 
remember – time in the market is more important 
than timing the market. 
MARKETS GO THROUGH UP AND DOWN 
CYCLES, BUT THEY HAVE TRENDED HIGHER 
OVER THE LONG TERM
It’s no secret that markets are subject to cycles 
of ups and downs. While it can be stressful to see 
your investments drop in value, it’s essential to 
keep a long-term perspective. Even when markets 
experience signi!icant dips, such as during times of 
economic uncertainty or global crises, history has 
shown that markets have always recovered and 
continued to trend higher over time. 
Rather than panicking over short-term 
!luctuations, it’s wise to focus on your long-term 
investment goals and have con!idence that the 
markets will eventually rebound.
MARKETS ARE UNPREDICTABLE, SO FOCUS 
ON WHAT YOU CAN CONTROL
It’s easy to get caught up in the daily 
!luctuations of the market and allow fear or 
greed to in!luence your investment decisions. 
However, keeping emotions in check is crucial 
if you want to achieve long-term investing 
success. One way to do this is by creating a 
well-diversi!ied portfolio that aligns with your 
risk tolerance and !inancial goals. This can help 
to mitigate risk and reduce the impact of market 
volatility on your portfolio.
Staying invested is also important during 
market downturns. While it may be tempting 
to sell o" your investments and avoid potential 
losses, timing the market is a di#icult game. 
You may end up missing out on market gains 
if you try to time the market, and you’ll need to 
be right twice – when to sell and when to buy 
back in. By staying invested, you give yourself 
the opportunity to bene!it from the market’s 
eventual recovery.
Keep your focus on your !inancial goals, rather 
than on short-term market movements. This 
can help you avoid making knee-jerk reactions 
to market volatility and stay on track with your 
investing plan. By having a clear understanding 
of your !inancial goals and your time horizon, you 
can make investment decisions that are aligned 
with your long-term objectives. Remember, 
investing is a journey, not a destination. Stay 
focused, stay disciplined, and the results will come 
over time.
VOLATILITY DECREASES THE  
LONGER YOU’RE INVESTED
Investing is a dynamic process, and it’s 
essential to understand the relationship 
between risk and return. While all investments 
carry some degree of risk, if you’re looking to 
earn a higher return, you must be willing to 
take on more risk or volatility. On the other 
hand, if you have a low tolerance for risk, you 
may have to forego some returns to ensure 
your investments are more secure.
It’s important to note that the volatility in your 
portfolio tends to decrease over time, particularly 
if you’ve invested in a well-diversi!ied portfolio. 
As you remain invested for longer periods, your 
portfolio becomes less susceptible to market 
!luctuations, and this reduces the risk of potential 
losses. Therefore, it’s necessary to be patient and 
stay invested for the long term, even when things 
get rough.
Ultimately, understanding the relationship 
between risk and return is critical to successful 
investing. While there are no guarantees, the key 
to success is to embrace the right amount of risk 
while building a well-diversi!ied portfolio.
22  INVE STMENT
THE MORE FREQUENTLY YOU  
CHECK YOUR PORTFOLIO, THE MORE 
VOLATILE IT WILL FEEL
It’s natural to want to keep an eye on your 
investments, but checking it too often could lead 
you to unnecessary stress. As tempting as it may 
be to obsessively track the dips and spikes, it’s 
important to remember that investing is a long-
term game.
The more often you check, the more you’re 
exposing yourself to the daily volatility of the 
market. Even if your investments have the 
potential to grow, they may experience temporary 
losses in the short term, causing you to panic and 
make rash decisions.
Instead, focus on your long-term investing goals 
and review your portfolio less frequently. This 
approach can help you stay on track and avoid 
reactions that could jeopardise your chances of 
achieving your !inancial objectives.
Remember, investing is a marathon, not a sprint. 
So set it, and forget it – at least until it’s time for 
your next portfolio review. Be patient and have 
faith in your investments. Over time, they have the 
potential to grow and provide you with the returns 
you desire.
HEADLINES OFTEN FOCUS ON THE 
SENSATIONAL, SHORT!TERM AND 
NEGATIVE # NONE OF WHICH SHOULD 
MATTER TO INVESTORS
It’s important not to get caught up in the 
sensationalism of the news and instead 
focus on your long-term investment goals, 
disregarding economic, !inancial or political 
events that can give you a reason not to invest. 
This means ignoring the short-term noise and 
maintaining a diversi!ied investment strategy 
that can weather various market conditions.
When unforeseen events do occur, it’s 
important to remember that investing is for the 
long term. Don’t make any sudden changes to 
your portfolio or investment strategy based on a 
single event or headline – this can ultimately lead 
to harming your investments.
By staying focused on your long-term 
!inancial goals and maintaining a disciplined 
approach to investing, you can navigate 
markets in good times and bad, and ultimately 
achieve greater success in your overall 
!inancial strategy. W
THIS ARTICLE DOES NOT CONSTITUTE 
TAX OR LEGAL ADVICE AND SHOULD 
NOT BE RELIED UPON AS SUCH. TAX 
TREATMENT DEPENDS ON THE INDIVIDUAL 
CIRCUMSTANCES OF EACH CLIENT AND MAY 
BE SUBJECT TO CHANGE IN THE FUTURE. FOR 
GUIDANCE, SEEK PROFESSIONAL ADVICE.
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.
LOOKING FOR GUIDANCE  
TO NAVIGATE THE WORLD  
OF INVESTMENTS?
Investing your money could be an e!fective way 
to reach your long-term goals and aspirations. 
By investing your money, you could potentially 
earn a higher return than if you were to simply 
save it in a low-interest savings account. This 
means that over time, your money could 
grow substantially, giving you a better chance 
of achieving your !inancial goals. For more 
information please contact us.
///  I N V ES TI N G I S A DYNAMIC 
PROCESS,  AND IT ’S  ESSENTIAL TO 
UNDERSTAND THE RELATIONSHIP 
BETWEEN RISK AND RETURN. 
WHILE ALL  INVESTMENTS 
CARRY SOME DEGREE OF R ISK, 
IF  YOU’RE LOOKING TO EARN A 
HIGHER RETURN,  YOU MUST BE 
WILLING TO TAKE ON MORE RISK 
OR VOLATILITY.
INVESTMENT 23
ONE IN TWELVE GRANDPARENTS USE PROPERTY 
WEALTH TO SUPPORT GRANDCHILDREN
There’s no denying that grandparents have a wealth of knowledge and life 
experience to offer their grandchildren, but increasingly, they’re also able to 
provide much-needed financial support. With housing prices remaining sky-
high, many homeowners are turning to the value in their homes as a way to 
give their grandchildren a living inheritance. 
This could take the form of a substantial 
monetary gift towards a !irst home or the 
regular !inancial support necessary to meet 
the ever-rising costs of living. For those who 
cannot a"ord to give money, extended family 
members are also helping out, whether that 
means providing unpaid childcare or letting adult 
children move in to help them save up for their 
own home. 
FINANCIAL SUPPORT  
TO THEIR GRANDCHILDREN 
A recent study found 79% of grandparents 
have provided !inancial support to their 
grandchildren and identi!ied that this type of 
support is becoming more common, with 8% of 
grandparents using their property wealth to fund 
this help[1].
Interestingly, younger grandparents are 
more likely to use their property wealth to fund 
!inancial support for their grandchildren. This 
suggests that attitudes towards using homes to 
support family members are changing.
HELPING WITH DAY!TO!DAY COSTS
There are many reasons why grandparents 
choose to give !inancial gifts to their 
grandchildren. Some grandparents provide help 
with day-to-day costs, while others give one-o" 
gifts for big-ticket expenses, such as holidays or 
wedding celebrations.
Notably, grandparents in London are the most 
likely to use property wealth to provide !inancial 
support to their grandchildren. This is likely due 
to the region’s higher-than-average property 
values.
IMPORTANT PART OF FINANCIAL PLANNING
Overall, the study highlights the important 
role that grandparents play in supporting their 
families both emotionally and !inancially. Whether 
through regular !inancial help or one-o" gifts, 
grandparents are making a big di"erence in their 
grandchildren’s lives.
The survey revealed that younger 
grandparents (aged 50$64) are twice as likely to 
use property wealth to gift to their grandchildren 
than those aged 65$74. This suggests that 
the younger generation of grandparents are 
beginning to view their homes as an important 
part of their !inancial planning.
‘BANK OF MUM AND DAD’
Grandparents are o"ering !inancial support to 
grandchildren for a range of reasons, including 
helping during times of crisis (13%), contributing 
to one-o" expenses such as holidays (17%) or 
weddings (5%), and providing support for rent or 
getting onto the property ladder (5%).
Previous research found that over half (56%) of 
those under 35 received a !inancial gift from the 
Bank of Mum and Dad to help them get onto the 
housing ladder. Grandparents are increasingly 
accessing their own property wealth to provide 
this type of support.
MAKING A BIG DIFFERENCE
According to the ONS, London’s average house 
prices are the most expensive of any region 
in the UK, at £543,099 on average. Financial 
support from grandparents can make a big 
di"erence in the lives of their grandchildren. 
If you’re considering giving money to  
your grandchildren, it’s important to consider 
your own !inancial situation !irst. Make 
sure that you can a!ford to give without 
compromising your own !inancial stability. 
You’ll also want to think about how best to 
structure your gifts: will you give a lump sum, 
contribute to a university savings plan or give 
a monthly allowance? W
Source data:
[1] https://group.legalandgeneral.com/en/
newsroom/press-releases/one-in-12-grandparents-
use-property-wealth-to-support-grandchildren
WANT TO HELP GIVE  
THE YOUNGER  
GENERATION A BOOST?
CONSIDERING PROVIDING  
FINANCIAL SUPPORT  
TO GRANDCHILDREN?
Ultimately, there are many ways that 
grandparents can provide !inancial support to 
their grandchildren. Whether it’s through a one-
time gift or ongoing contributions, this kind of 
support can be a true head-start for youngsters 
as they grow into adulthood. If you would like to 
discuss your options, please contact us.
24  ESTATE PLANNING
ESTATE PLANNING 25
///  R EGI O N AL LY,  LONDON 
GRANDPARENTS WERE FOUND 
TO BE THE MOS T L I K E LY TO USE 
THEIR PROPERTY WEALTH TO 
GIFT TO THEIR GRANDCHILDREN 
!15% " ,  W HI C H MAY BE D UE TO THE 
REGION’S  HIGHER THAN AVERAGE 
PROPERTY VALUES.  ACCORDING 
TO THE ONS,  LOND ON’S AVERAG E 
HOUSE PRICES ARE THE MOST 
EXPENSIVE OF ANY REGION IN THE 
UK AT £543,099 ON AVERAGE.
HOW TO ENSURE THAT YOUR WEALTH IS  
PRESERVED FOR FUTURE GENERATIONS
Are you concerned about the impact of Inheritance Tax (IHT) on your estate? 
It’s natural to want to leave behind a legacy for your loved ones, but without 
the right plan in place, a significant portion of your wealth could be subject to 
Inheritance Tax. With IHT affecting more and more families, it’s crucial to be 
proactive and plan accordingly.
Fortunately, there are steps you can take to 
reduce the impact of IHT on your estate. For 
example, you may want to consider setting up 
trusts, gifting assets while you’re still alive or 
investing in pensions which don’t usually form 
part of your estate on death.
It’s worth noting that IHT rules can be 
complicated, and the best course of action will 
depend on your speci!ic circumstances. Getting 
professional !inancial advice can be bene!icial to 
ensure that the plan you put in place is e"ective 
and complies with all relevant regulations.
MAKE A WILL
Setting up a Will is one of the most important 
things you can do to ensure your wishes 
are carried out and your estate is distributed 
according to your wishes. Not having a Will 
means that your estate will be subject to the 
intestacy laws, which may not re!lect your wishes 
and could result in an unnecessary IHT liability.
By making a Will, you can specify who should 
inherit your assets and in what proportions. This 
not only ensures that your wishes are carried out, 
but it can also help to reduce the amount of IHT 
payable on your estate. For example, you can 
pass assets to a surviving spouse or registered 
civil partner free from IHT.
It’s worth noting that even if you already have 
a Will in place, it’s important to review it regularly 
to ensure that it re!lects your current wishes and 
any changes to your circumstances. By taking 
the time to make a Will, you can ensure that your 
wealth ultimately bene!its the people and causes 
that matter most to you.
TAKE ADVANTAGE OF THE  
RESIDENCE NIL!RATE (RNRB) BAND
One way to reduce your IHT liability is to take 
advantage of the RNRB. This is an allowance 
that applies to each individual, on top of the 
existing IHT threshold of £325,000. The RNRB 
allows you to pass on up to an additional 
£175,000 of your estate IHT-free, but there are 
conditions that must be met.
To qualify for the RNRB, you must leave your home 
to a direct descendant, such as a child or grandchild. 
This could be done by leaving the property to them 
in your Will or by using a trust structure. The property 
doesn’t have to be the main home, as long as it has 
been your residence at some point.
The RNRB will gradually reduce, or taper away, 
for an estate worth more than £2 million, even 
if a home is left to direct descendants, and will 
reduce by £1 for every £2 that the estate is worth 
more than the £2 million taper threshold.
If you’re considering taking advantage of the 
RNRB, it’s essential to seek professional advice 
to ensure that you’re meeting all the necessary 
requirements and that you’re leaving your estate 
in the most tax-e#icient way.
MAKE FULL USE OF YOUR PENSION FUNDS
Taking a strategic approach to how you use your 
money can help to reduce a potential IHT liability. 
One option to consider is making full use of your 
pension funds, which don’t usually count towards 
your estate and can be passed on IHT-free to 
your bene!iciaries.
If you die before the age of 75 and have 
money in your pension fund, your bene!iciaries 
can usually receive the remaining funds as a tax-
free lump sum, up to £1,073,100 unless protection 
applies. If you die after the age of 75, the funds 
can still be paid to your bene!iciaries, but they 
will be treated as earned income and subject to 
Income Tax at their marginal rate.
In light of this it may be worth considering 
the withdrawal of funds from accounts included 
in the estate for IHT assessment purposes !irst, 
and using pension funds as an additional source 
of income later in life. This way, you can reduce 
the IHT liability on your estate and ensure that 
your bene!iciaries receive the most signi!icant 
possible inheritance.
You need to ensure that you’re making the 
most of all the available options and that you’re 
complying with all relevant regulations. With 
careful planning, you can enjoy !inancial security 
in your retirement while leaving behind a 
stronger legacy for your loved ones.
USE YOUR FULL ANNUAL GIFT ALLOWANCE
Using your annual gift allowance is an e"ective 
way to reduce your IHT liability while also 
bene!iting your loved ones. Each tax year, you’re 
allowed to give away up to £3,000 in assets or 
cash as a gift which are exempt from IHT.
This annual allowance can be used for any 
purpose, such as helping to fund a family member’s 
education, contributing to a loved one’s pension 
or providing assistance with buying a home. It’s 
entirely up to you whom the money goes to, as 
long as the gift doesn’t exceed £3,000 per tax year.
If you haven’t used your full annual gift 
allowance in the previous tax year, you’re allowed 
to carry it forward and use it in addition to the 
current year’s allowance. This means that you 
could potentially give away up to £6,000 tax-free 
to your loved ones.
EXCELLENT WAY TO MARK SPECIAL OCCASIONS
In addition to the annual gift allowance, there are 
other gift allowances that you can take advantage 
PASSING ON ASSETS  
TAX-EFFICIENTLY
26 ESTATE PLANNING
of to reduce a potential IHT liability. One option 
is to give smaller gifts of up to £250 to di"erent 
people each year. This is an excellent way to mark 
special occasions like birthdays or holidays and 
can help to reduce the value of your estate.
Another option is to give wedding gifts of up to 
£5,000 to your children, £2,500 to a grandchild 
or great-grandchild or £1,000 to any other person. 
This can be a great way to help them start their 
new lives as a married couple while also reducing 
the amount of IHT payable on your estate.
SEVEN!YEAR RULE CAN  
BE A USEFUL STRATEGY
The seven-year rule can be a useful strategy for 
reducing your Inheritance Tax liability if you have 
larger sums of wealth that you want to pass on 
to your loved ones. Under this rule, gifts that you 
make will be free of Inheritance Tax provided that 
you live for at least seven years from the date 
you make them.
This strategy can be useful for making more 
substantial gifts, such as large cash sums to your 
loved ones. However, there are some exceptions 
to the seven-year rule, such as gifts given as part 
of your normal expenditure or wedding gifts, 
which are free of IHT immediately. 
It’s essential to understand the rules around 
making gifts and to ensure that you’re complying 
with all relevant regulations. With careful 
planning, you can use the seven-year rule to 
reduce your Inheritance Tax liability.
SUPPORTING A CHARITY  
CLOSE TO YOUR HEART
Leaving money to a worthy cause is not only 
a good way to support a charity close to 
your heart, but it can also help to reduce an 
IHT liability. If you’re willing to donate at least 
10% of your estate to a registered charity, the 
government will reduce your IHT rate from 40% 
to 36%.
This is known as the reduced rate of IHT, and 
it’s available to anyone who leaves a charitable 
donation as part of their estate. The part of your 
estate that you donate to a registered charity is 
also exempt from IHT.
Leaving a charitable legacy can also help 
to reduce the burden on your loved ones and 
ensure that your wealth bene!its society for 
years to come. It’s essential to ensure that you’re 
donating to a registered charity and that you’re 
complying with all relevant rules and regulations.
PROVIDING THE DESIRED  
PROTECTION FOR YOUR WEALTH
Setting up a trust can be an e"ective way to start 
IHT planning while still retaining control. As a 
trustee, you can determine who will bene!it from 
the trust and when they will receive the money. 
Trusts can also be used to hold funds in suitable 
investments until they are distributed at a later date.
However, it’s essential to understand the 
complex rules involved in setting up and 
managing trusts and ensure that all relevant 
regulations are complied with. Professional 
!inancial advice is essential for creating a trust 
that meets your needs and provides the desired 
protection for your wealth.
Setting up a trust can help you start planning 
for IHT while ensuring that your funds are 
managed responsibly, passed on e"ectively and 
used to protect your wealth, leaving behind a 
legacy for generations to come.
LIFE INSURANCE THAT IS WRITTEN IN AN 
APPROPRIATE TRUST
Taking out life insurance that is written in an 
appropriate trust can be a way to cover the cost 
of an IHT bill that may be due on your estate.
In most cases, it’s better to begin Inheritance 
Tax planning as early as possible in order to 
ensure that your estate is adequately protected. 
Investing in other options like trusts or leaving 
money to a registered charity may also provide 
bene!its and reduce liability W
THIS ARTICLE DOES NOT CONSTITUTE 
TAX OR LEGAL ADVICE AND SHOULD 
NOT BE RELIED UPON AS SUCH. TAX 
TREATMENT DEPENDS ON THE INDIVIDUAL 
CIRCUMSTANCES OF EACH CLIENT AND MAY 
BE SUBJECT TO CHANGE IN THE FUTURE. FOR 
GUIDANCE, SEEK PROFESSIONAL ADVICE.
INHERITANCE TAX, WILL WRITING AND 
TRUSTS ARE NOT REGULATED BY THE 
FINANCIAL CONDUCT AUTHORITY.
NEED TO FIND THE MOST  
APPROPRIATE WAYS TO REDUCE  
A POTENTIAL IHT LIABILITY?
Professional !inancial advice can help you 
navigate these complex rules and !ind the 
most appropriate ways to reduce a potential 
IHT liability. By taking steps now to mitigate 
the impact of IHT, you’re not only securing a 
stronger legacy for your loved ones, but also 
protecting your wealth and !inancial future. To 
discuss how we can help, please contact us.
ESTATE PLANNING 27
28 RETIREMENT
ENJOYING A COMFORTABLE AND SUSTAINABLE RETIREMENT 
INCOME THAT GIVES YOU THE BEST OF BOTH WORLDS
If you’re considering combining drawdown with an annuity, it’s important 
to obtain professional financial advice to ensure you make the most of both 
options. Choosing the most suitable investment and calculating the amount of 
money you can realistically afford to withdraw from your pension each year is a 
complex matter, and it pays to be well informed. 
A recent study has shown that millions of 
people in the UK are concerned about stock 
market volatility and the possibility of running 
out of money during their retirement[1]. The 
study found that 58% of working adults do not 
know how to ensure their pension fund lasts 
throughout retirement, whilst 66% of UK adults 
dislike the idea of !inancial uncertainty. 
PENSION FLUCTUATES
Of those with a de!ined contribution (DC) 
pension, 54% revealed that they get anxious 
when the value of their pension !luctuates. 
Meanwhile, 37% of workers expressed a 
preference for both a set income and a pot of 
money to draw from during their retirement. 
According to the research, only 15% of 
retired people said they would take a medium 
or higher risk on their investment portfolios. 
Also, workers aged 55$64 were found to be 
particularly interested in the option of receiving 
both a set income and having a pot of money 
to draw from.
RETIREMENT PORTFOLIO 
An e"ective solution to address the concerns 
of retirees regarding stock market volatility and 
their fear of running out of money in retirement 
is to opt for a blended retirement portfolio that 
combines a !ixed term annuity with a smoothed 
investment fund. 
With the right blend of annuity and 
drawdown products, you may be able to enjoy a 
comfortable and sustainable retirement income 
that gives you the best of both worlds. A !ixed 
term annuity can provide a stable income that 
covers your basic needs and is guaranteed to last 
for a selected period of three to twenty-!ive years. 
INVESTMENT GROWTH 
The rest of the retirement fund can be invested 
in a smoothed investment fund, which o"ers the 
potential for lower-volatility growth over time. This 
strategy could be appropriate for retirees who are 
looking to secure their !inancial future and ensure 
they live comfortably in their golden years.
A blended annuity and drawdown portfolio is 
an e"ective way of achieving a balance between 
controlling a retirement portfolio to bene!it from 
future investment growth and mitigating the 
potential impacts of market volatility. 
CONCEPT OF BLENDING 
While this concept of blending annuity and 
drawdown solutions is not novel, recent changes 
in interest rates and stock market performance 
have reinforced the importance of considering 
annuities to support a reliable retirement income. 
However, constructing such a portfolio 
requires the expertise of a highly skilled 
professional !inancial adviser. With the right 
advice, retirees can rest assured that their 
blended portfolio will be tailored to meet their 
individual investment goals and mitigate their 
concerns about market volatility. W
Source data:
[1] LV= surveyed 4,000 nationally representative 
UK adults via an online omnibus conducted 
by Opinium in Sept 2022 and December 2022.
UK population stats from ONS. Total UK adult 
population is 53.2m UK adults (aged 18+).
THIS ARTICLE DOES NOT CONSTITUTE 
TAX OR LEGAL ADVICE AND SHOULD 
NOT BE RELIED UPON AS SUCH. TAX 
TREATMENT DEPENDS ON THE INDIVIDUAL 
CIRCUMSTANCES OF EACH CLIENT AND MAY 
BE SUBJECT TO CHANGE IN THE FUTURE. FOR 
GUIDANCE, SEEK PROFESSIONAL ADVICE.
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.
COMBINING DRAWDOWN 
WITH AN ANNUITY
DO YOU WANT TO ENSURE A  
COMFORTABLE RETIREMENT THAT  
MEETS YOUR INDIVIDUAL NEEDS?
We’ll work closely with you to create a fully 
customised retirement plan that is tailored to 
your unique situation and goals. Don’t settle 
for uncertainty when it comes to your future 
– contact us today to start planning for the 
retirement of your dreams.
///  AN E F F EC TI V E S O LUTION TO 
ADDRESS THE CONCERNS OF 
RETIREES REGARDING STOCK 
MARKET VOLATILITY AND THEIR 
FEAR OF RUNNING OUT OF MONEY 
IN RETIREMENT IS  TO OPT FOR A 
BLENDED RETIREMENT PORTFOLIO 
THAT COMBINES A FIXED TERM 
ANNUITY WITH A SMOOTHED 
INVESTMENT FUND. 
MAKE SURE YOUR DEPENDENTS HAVE THE MONEY 
THEY NEED IF YOU WERE NO LONGER AROUND
When it comes to ensuring that your family is taken care of in the event 
of your premature death, life insurance is invaluable. It’s important to 
recognise how life insurance can help protect your financial interests and 
those of your loved ones. 
Life insurance provides a cash payment, 
known as a death bene!it, which may be used 
to cover costs such as paying o" a mortgage 
or other debts and funeral expenses. It can 
also provide a !inancial cushion to help your 
family maintain their lifestyle after you’re gone. 
Ultimately, it provides peace of mind knowing 
that loved ones will be !inancially supported.
DIFFERENT FACTORS
The cost of life insurance can vary due to 
di"erent factors and will typically include the 
amount of coverage, policy type, age and health. 
The higher the coverage amount, the higher 
the monthly premiums. The policy type can 
also impact the cost, as term life insurance only 
covers a speci!ic time frame while whole-of-life 
insurance does not have an expiry date. 
Age can be a key factor, with older 
individuals often having higher premiums. 
Health also plays a signi!icant role in 
determining premiums, with healthier 
individuals generally having lower premiums as 
they pose less of a risk to the insurer. 
HEALTH CONDITIONS 
Insurers may review medical records, ask for 
basic health information, or require a medical 
exam to assess an individual’s risk and consider 
an individual’s family health history when 
calculating the cost of life insurance. 
If an individual’s family has a history of 
health conditions such as heart attacks, strokes 
or diabetes, they may be deemed as more 
vulnerable to these conditions and thus end up 
paying higher premiums. 
INDIVIDUAL’S LIFESTYLE 
Habits and lifestyle can also impact premiums, 
with insurers wanting to know about habits 
such as alcohol consumption or smoking. 
Occupational hazards also come into play, with 
some occupations deemed as more dangerous 
than others, such as those in construction, the 
armed forces or emergency services. 
Finally, insurers may ask about hobbies outside 
of work, especially those that are deemed as 
dangerous or pose a risk to the individual’s 
health, such as rock climbing or extreme sports. 
The insurer assesses an individual’s lifestyle and 
hobbies to determine the risk of future claims 
under the policy .W
THINK OF LIFE INSURANCE 
LIKE A SAFETY NET
NOT SURE HOW MUCH  
COVER YOU NEED?
Sustaining the future of your loved ones 
after you are gone is essential. What if the 
unthinkable happened to you? Life insurance 
is there to ensure the life you’ve built together 
goes on. With the rising costs of living and less 
disposable income for many, life insurance 
could be more important than ever. For more 
information, please contact us .
PROTECTION 29