wealth succession

Financial planning can be a daunting and uncomfortable conversation for many, but thankfully attitudes towards talking about money are changing. Wealth succession should be an integral part of your financial plan as early as possible – because the right preparation now can have positive long-term impacts on future generations.
About Tudor Franklin IFA

Tudor Franklin was established by Richard Meats and Bharat Chudasama, with a vision for a professional financial planning and advice service that can provide clear value to our clients at any stage in their financial life. With over 25 years joint experience advising clients on such matters as investments, pensions, inheritance tax planning and protection, we pride ourselves on being professional and delivering advice in a clear and understandable way.
financial advice wealth wealth succession financial planning RETIRE invest pension PLAN inancial tax make income long term TIME ill money FUTURE RETIRE PLAN protect CRITICAL ill save year cost work THIS
About Tudor Franklin IFA

GOALS DON’T JUST HAPPEN, 
YOU HAVE TO PLAN FOR THEM  
How professional !inancial advice 
bene!its both you and your family
TIME TO RETIRE?
Planning your !inances 
to be sustainable for the 
long term is key
CRITICAL ILLNESS COVER,  
YOUR QUESTIONS ANSWERED
Protecting against the !inancial impact 
that a serious illness can cause 
WEALTH  
SUCCESSION
MAKING THE RIGHT PREPARATION 
FOR FUTURE GENERATIONS
MARCH/APRIL 2023
Welcome to our latest edition. In this issue, !inancial 
planning can be a daunting and uncomfortable 
conversation for many, but thankfully attitudes towards 
talking about money are changing. Wealth succession 
should be an integral part of your !inancial plan as 
early as possible – because the right preparation 
now can have positive long-term impacts on future 
generations. On page 08, before you start this process, 
we consider the questions you need to ask.
When it comes to managing your !inances, the 
wealth of resources now available can make it easy 
to try and go it alone. However, obtaining the right 
advice from a quali!ied professional !inancial adviser 
will ensure you are able to plan ahead by including 
expectations for items such as in!lation, market 
declines and your protection requirements, so you can 
stay on track. Read the full article on page 05.
Also in this issue, there are signs and targets that 
can signal that you are prepared to retire, but it can 
be di"icult to !igure out when you are truly ready to 
retire. We may think of retirement as being centred 
around a particular age or monetary amount. When 
we get to ‘X’ years old or have’Y’ amount of money, 
we can move on to our ‘golden years’. On page 12 we 
look at the main questions to ask yourself for a secure 
!inancial future.
People are increasingly becoming more concerned 
about the possibility of being a#ected by a critical 
illness such as cancer, stroke or heart attack. With 
rising rates of serious illnesses, people are becoming 
more aware of their need to be covered and 
secure proper protection against critical illnesses. 
In challenging times, the number one priority is to 
support those you love. Turn to page 11.
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
MARCH/APRIL  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, estate planning, or Will writing.
C O N T E N T S
04
FINANCIAL JARGON
7 out of 10 adults are puzzled by !inancial 
matters lingo
05
GOALS DON’T JUST HAPPEN, YOU 
HAVE TO PLAN FOR THEM
How professional !inancial advice 
bene!its both you and your family
 
06
RISING PRICES CAN WIPE YEARS OFF 
RETIREMENT POTS
How to protect your pension income 
against in!lationary pressures
07
GIVING RETIREMENT  
A SECOND THOUGHT?
Over a third of over-55s think they will 
work beyond their State Pension age
08
WEALTH SUCCESSION
Making the right preparation for future 
generations
10
SHOW ME THE MONEY
Britons not researching their investments 
because it’s ‘time consuming’ and 
‘complicated’
11
CRITICAL ILLNESS COVER, YOUR 
QUESTIONS ANSWERED
Protecting against the !inancial impact 
that a serious illness can cause 
12
TIME TO RETIRE?
Planning your !inances to be sustainable 
for the long term is key
LOOKING FOR A FRESH  
PERSPECTIVE ON WHAT’S POSSIBLE?
Financial planning may be complex, but it 
doesn’t have to be di!!icult. Whether it’s planning 
for your future, or growing and protecting your 
wealth, we’ll give you a fresh perspective on 
what’s possible. We hope you enjoy reading this 
issue and if you would like further information 
or want to arrange an appointment, please 
contact us.
07
C O N T E N T S
14
FINANCIAL SECURITY AND FREEDOM
Rising prices add almost 20% to ‘minimum’ 
cost of retirement
16
THINKING ABOUT DIVORCING?
Protecting your assets and preparing  
you for going forward on your own
17
COST OF LIVING CRISIS
Almost one in three over-55s’ mortgage 
repayment plans derailed
18
FINANCIAL BLISS!
Money and !inances are a common  
source of disagreement and stress
20
COST AVERAGING YOUR INVESTMENTS
Reducing the risk of investing in  
volatile markets
21
INSURANCE THAT WORKS  
WHILE YOU CAN’T
2.5 million Britons lose at least £23,126  
a year due to long-term illness
22
RETIREMENT PLANNING FOR  
EVERY LIFE STAGE
Alleviate any fear and uncertainty you might 
have about your !inancial future
24
OVERWHELMED BY YOUR PENSION? 
Almost half of UK consumers !ind pensions 
information daunting 
25
PROTECTING INCOME
7% of self-employed workers would choose to 
carry on working through illness or injury
26
FUTURE WEALTH
Ready to start investing for your  
grandchild’s future?
28
DRAWDOWN, ANNUITIES OR BOTH?
Make sure your retirement strategy meets 
your needs and goals
30
RETIREMENT PLANNING
Your wealth. Your legacy
08
17
22
10
7 OUT OF 10 ADULTS ARE PUZZLED BY FINANCIAL MATTERS LINGO
Being informed about financial matters is essential to making sound 
decisions and staying in control of your money. Unfortunately, many people 
feel confused by the jargon used in financial discussions and services.
A recent study of UK adults reveals that seven 
in ten feel puzzled by !inancial jargon, while three-
quarters don’t understand the concept of ‘the 
economy’[1]. Those aged 18$24 are the least likely 
age group to be confused by !inancial terms, 
with only 52% feeling puzzled compared to 69% 
across all age groups.
MOST AT A LOSS 
However, younger respondents admit to being 
the most at a loss when it comes to managing 
money. 58% of those aged 18$24 confess they are 
perplexed by this task, compared to only 23% of 
people aged 55 and over.
The study revealed that younger people are 
also less likely to have heard of !inancial products 
and terms, which could explain why those aged 
18$24 are the least confused by !inancial jargon. 
The survey also found that only 61% of 18$24s 
have heard of the term ‘pension’ compared to 
97% of respondents aged 55 and above.
FINANCIAL TERMINOLOGY 
In addition, only a quarter (25%) of 18$24s know 
about ‘contents insurance’ whereas almost all 
(92%) of those aged 55+ have heard this phrase. 
Furthermore, less than three-!ifths (57%) of 18$24s 
recognise the term ‘in!lation’.
The results suggest that although younger 
respondents may not be as confused by !inancial 
terminology as other age groups, they may 
lack understanding when it comes to some key 
!inancial products and money management skills.
LACK CONFIDENCE 
Despite having heard of some key investing 
terms, many people lack con!idence in 
understanding what they mean. Just 43% of 
those who have heard the term ‘gilt’ know its 
meaning and only 59% of those aware of an 
‘annuity’ feel con!ident in its de!inition. Similarly, 
61% of people who have heard of an ‘ESG fund’ 
are comfortable with its meaning.
Many people !ind !inancial matters 
confusing and it can be easy to avoid the 
things we don’t understand. However, once 
these matters become clear, it can lift a huge 
weight o!f our shoulders. W
Source data:
[1] The research was carried out by Ipsos 
UK on behalf of Aviva. Ipsos UK interviewed a 
representative quota sample of 2,379 adults 
aged 18+ in the United Kingdom using its online 
i:omnibus between 1!3 November 2022.
FINANCIAL JARGON
04  F INANCIAL PLANNING
READY TO TELL US ABOUT  
YOUR FINANCIAL AIMS?
Depending on your individual situation, !inancial 
planning doesn’t have to be complicated. We 
know you’ll have di!ferent priorities for your 
wealth at di!ferent points in your life. Whatever 
your !inancial aims, we have the expertise, 
products and services that can help you achieve 
them. To !ind out more, please speak to us.
INVESTMENT  05
HOW PROFESSIONAL FINANCIAL ADVICE BENEFITS BOTH YOU AND YOUR FAMILY
When it comes to managing your finances, the wealth of resources now 
available can make it easy to try and go it alone. However, obtaining the right 
advice from a qualified professional financial adviser will ensure you are able 
to plan ahead by including expectations for items such as inflation, market 
declines and your protection requirements, so you can stay on track.
Receiving professional advice is one of the 
main advantages of working with a !inancial 
adviser. Without obtaining this advice, there may 
be risks that you are disregarding. Emotional 
factors also have an in!luence on !inancial 
decisions and these can cloud our judgement, 
causing us to make illogical or irrational choices.
ACHIEVING YOUR GOALS
This includes con!irmation bias, when we seek out 
information that reinforces an existing belief, which 
can lead to overcon!idence in investment decisions. 
Your !inancial adviser will help provide objectivity and 
identify any possible risks you may not be aware of.
Having !inancial goals is also one of the main 
reasons to obtain advice. Whether it’s planning 
for retirement or another objective, having an 
experienced professional by your side can help 
you create and execute an investment plan 
tailored to achieving your individual goals.
SUCCESSFUL INVESTMENT PORTFOLIO
If you are planning for your retirement, you now 
have more choices than ever before. While this o#ers 
numerous opportunities, it also means that careful 
consideration and knowledge of pension allowances, 
tax-e"icient savings and other factors have become 
essential in order to ensure a comfortable retirement. 
Knowing what assets you hold and having 
a clear strategy is key to creating a successful 
investment portfolio, but these portfolios can 
become complicated over time. For example, 
you may have investments with several di#erent 
providers, overlapping funds or funds that don’t 
align with your goals any longer.
START MINIMISING TAXES
In such cases, it may be bene!icial to bring all 
of your investments together and simplify the 
portfolio. Your adviser will help you do this, as 
they will be able to construct a streamlined 
portfolio with a clear strategy suited to your 
speci!ic needs and risk tolerance.
When it comes to wealth building and 
preservation, tax planning is key. Investing within an 
Individual Savings Account (ISA) can be a way to 
start minimising taxes. However, there may be more 
complex strategies available that could further 
reduce the amount of taxes you have to pay. That’s 
where professional advice, if appropriate, will ensure 
you are able to maximise your tax savings by taking 
advantage of alternative sophisticated strategies.
PROVIDING INVALUABLE GUIDANCE 
In addition, to maximise potential returns within 
your risk appetite, it will be appropriate to look 
beyond domestic stocks. When managing your 
own portfolio, you may sometimes be guilty of 
su#ering from ‘home bias’, which involves over-
investing in local stocks at the cost of international 
ones. Your !inancial adviser will help you to use the 
full breadth of investment opportunities and make 
sure that you are getting the best potential returns.
If you have recently come into a large sum of 
money, it can be di"icult to know what to do with 
it. Your !inancial adviser can provide invaluable 
guidance in this situation and help you make 
the right decision. You’ll have many questions 
such as should the money be invested or used 
to pay o# your mortgage? Will there be 
tax implications? And is it best to invest 
all at once or over time? It’s important 
to remember that tax treatment 
varies according to individual 
circumstances and is subject  
to change.
COMPLEX FINANCIAL MATTERS
Your adviser will be able to assist you with these 
decisions, ensuring that you get the best possible 
returns and maximise your wealth in the long term.
When it comes to complex !inancial matters, 
receiving professional !inancial advice is important. 
For instance, the introduction of the Lifetime 
Allowance means that investors must now be 
aware of how much they accumulate in their 
pension accounts, or risk facing an excess tax 
charge. With expert guidance, you can plan 
accordingly and make sure that your retirement 
goals are met without risking a substantial tax bill. W
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.
GOALS DON’T JUST HAPPEN,  
YOU HAVE TO PLAN FOR THEM
NEED A PERSONAL AND  
PROACTIVE APPROACH TO  
MANAGING YOUR WEALTH?
We can help you to understand how investments 
work and how market changes will a#ect them. 
We’ll also explain the associated risks and inform 
you on how proposed changes in legislation may 
a#ect your current and future tax strategies, so 
that you can make decisions with all the facts in 
mind. To tell us about your goals and how we can 
help you, please contact us.
HOW TO PROTECT YOUR PENSION INCOME AGAINST INFLATIONARY PRESSURES
For anyone feeling the effects of rising inflation rates, it’s important 
to ensure that your retirement fund isn’t significantly impacted. While 
this can be challenging in such an uncertain economic climate, there are 
measures you can take to ensure that your savings don’t suffer. 
Here are some tips to help you protect your 
pension income for the future.
POSTPONING RETIREMENT
Retiring later can have multiple advantages. It 
can be a !inancially wise decision to postpone 
retirement when in!lation is high. Postponing 
retirement also gives you more time to invest 
and contribute funds towards your pension 
pot, allowing you to enjoy a larger sum of 
money when you eventually retire. Additionally, 
individuals who choose to retire later can bene!it 
from longer periods of regular income which can 
be used for extra retirement savings to combat 
the impact of in!lation in retirement.
Furthermore, delaying retirement will allow you 
to better prepare for future !inancial commitments 
such as mortgage repayments and other cost 
of living outgoings. If appropriate, by postponing 
your retirement you can make sure that you have 
the !inancial security and peace of mind needed 
for a comfortable retirement. 
CONSIDER WHERE YOUR PENSION IS INVESTED
When in!lation rates are high, it’s important to 
take steps to ensure that your retirement savings 
aren’t adversely a#ected. Not only will this give 
you peace of mind about the future value of 
your pension pot, but it may also prove to be 
!inancially rewarding in the long run. One of the 
most e#ective ways to do so is by diversifying 
your investments and spreading out your money 
across di#erent asset classes. 
Having a diverse portfolio can help protect 
you from losses due to market volatility or 
in!lation and provide access to a broad range of 
investments while reducing risk. Keeping track of 
these !luctuations enables you to plan ahead and 
adjust your investment strategy as necessary.  
By taking all these factors into consideration, 
you can ensure that your retirement savings are 
secure even in a period of high in!lation. 
KEEP CONTRIBUTING
Despite in!lationary pressures, continuing to 
contribute to your pension pot can be a wise 
decision. Not only is your retirement fund likely 
to outperform cash savings, but it also allows 
you to take advantage of the tax relief top-up on 
contributions o#ered by the government. 
The amount of relief you receive is based 
on the rate of Income Tax that you pay. If you 
are in the highest rate Income Tax bracket you 
can claim additional relief through your self-
assessment tax return, enabling you to save even 
more for your retirement. However, depending 
on how your pension scheme works, if you don’t 
pay tax you might not receive tax relief.
ALREADY WITHDRAWING A PENSION
For those with a de!ined contribution pension 
who are already taking an income, it might 
be bene!icial to reduce the amount you are 
withdrawing in order to keep more of your pot 
invested. This strategy can help protect your 
retirement fund against volatile markets and 
rising in!lation levels as the fund manager will 
monitor the investment performance, making 
necessary adjustments.
Those with a de!ined bene!it pension need not 
worry about adjusting for in!lation as this is taken 
care of automatically. 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.
RISING PRICES CAN WIPE  
YEARS OFF RETIREMENT POTS
WHERE ARE YOU ON YOUR  
RETIREMENT JOURNEY?
Regularly revisiting your !inancial plan and 
retirement planning is essential in order to 
ensure your long-term security and prosperity. 
No matter what strategies you decide to 
implement going forward, we will provide 
valuable insights into making the right choices 
for your future. Please contact us to discuss your 
future plans. 
06  RETIREMENT
OVER A THIRD OF OVER-55s THINK THEY WILL 
WORK BEYOND THEIR STATE PENSION AGE
We are witnessing a surge in the number of people giving retirement a second 
thought due to inflation rates and the cost of living crisis. Not only are more 
individuals looking to work beyond their State Pension age, but some are 
returning to employment after retiring due to increasing financial pressures. 
Over 2.5 million people aged 55 and over will 
be impacted by the long-term e#ects of !inancial 
insecurity and think they will continue to work 
past their State Pension age. Additionally, half 
of those aged 55 and over don’t believe their 
pension is enough to fund their retirement, a new 
survey has revealed[1].
INCREASING COST OF LIVING
Nearly four in ten over-55s who are not retired 
anticipate having to work past their State Pension 
age due to the increasing cost of living. Financial 
concerns surrounding retirement funding are the top 
drivers behind working beyond State Pension age.
A quarter (23%) are uncertain of how long their 
retirement savings will last, and almost one-!ifth 
(18%) admit to not having made any preparations 
for when they stop working.
ABILITY TO REMAIN EMPLOYED
Nearly half (46%) of the millions of older workers 
expecting to work past their State Pension age 
are apprehensive that doing so will mean they 
can’t enjoy their later years. 
Health, too, is another major concern, with 
nearly half (45%) worrying their health will 
deteriorate as a result of having to continue 
working and more than a third (35%) concerned it 
will a#ect their ability to remain employed. 
HEAVY FINANCIAL STRAIN 
Worryingly, 16% are concerned about being 
treated di#erently or worse at work because of 
their age and the same number worried about 
not being able to spend enough time with their 
family due to work commitments. 
Looking ahead, the older workforce is 
expected to be crucial to the UK’s economic 
recovery as it will help ease severe labour 
shortages, yet this warning sign points to heavy 
!inancial strain many are facing.  W
Source data:
[1] Survey conducted by Opinium among 
2,000 UK adults between 21!25 October 2022.
A PENSION IS A LONG$TERM INVESTMENT 
NOT NORMALLY ACCESSIBLE UNTIL AGE 55 
(57 FROM APRIL 2028 UNLESS PLAN HAS A 
PROTECTED PENSION AGE). 
THE VALUE OF YOUR INVESTMENTS (AND ANY 
INCOME FROM THEM) CAN GO DOWN AS WELL 
AS UP WHICH WOULD HAVE AN IMPACT ON THE 
LEVEL OF PENSION BENEFITS AVAILABLE. 
YOUR PENSION INCOME COULD ALSO BE 
AFFECTED BY THE INTEREST RATES AT THE 
TIME YOU TAKE YOUR BENEFITS.
GIVING RETIREMENT  
A SECOND THOUGHT?
WILL YOU ENJOY THE  
RETIREMENT YOU DESERVE?
We all want to be in control of our retirement 
plans and feel con!ident we can stop working 
when we want to so that we can enjoy the 
retirement we deserve. If you are worried about 
how your current situation and the cost of living 
could impact on your retirement savings, we are 
here to talk through your options. To !ind out 
more, please speak to us.
///  NEARLY FOUR IN TEN 
OVER-55s WHO ARE NOT 
RETIRED ANTICIPATE 
HAVING TO WORK PAST 
THEIR STATE PENSION AGE 
DUE TO THE INCREASING 
COST OF L IV ING.
RETIREMENT 07
08  F INANCIAL PLANNING
MAKING THE RIGHT PREPARATION FOR FUTURE GENERATIONS
Financial planning can be a 
daunting and uncomfortable 
conversation for many, but 
thankfully attitudes towards 
talking about money are changing. 
Wealth succession should be an 
integral part of your financial plan 
as early as possible – because the 
right preparation now can have 
positive long-term impacts on 
future generations.
Despite the uncertain economic climate, 
families are doing their utmost to ensure they 
can leave behind a secure !inancial future for 
their children and grandchildren. According 
to predictions, the amount of wealth passed 
on in the next two decades could double, with 
estimates this !igure could be as high as  
£5.5 trillion by 2047[1]. 
Worryingly, an astounding £15bn inheritance 
still remains unclaimed due to people not 
informing their bene!iciaries about the existence 
of these funds[2]. With careful planning, you can 
ensure that your assets are passed on securely 
for generations to come.
When it comes to transferring wealth between 
generations, having an open dialogue is paramount 
for creating the best outcome for everyone. 
Before you start this process, consider the 
following questions:
   When do I want to transfer my wealth?
   How much wealth do I want to pass on?
   Whom do I want to pass my wealth on to?
   How do I want to transfer my wealth?
These four questions are closely interconnected 
– and with careful planning and discussion, you 
can ensure that your assets are handed down as 
simply and tax e"iciently as possible.
1. WHEN DO I WANT TO TRANSFER MY WEALTH?
Keeping your Will up to date is an important part 
of planning for the future. Not only does it ensure 
that your wishes are carried out, but having a Will 
that re!lects the current legal landscape where 
you hold assets can allow for greater !lexibility 
and potential advantages. 
Transferring assets during your lifetime may 
also bring bene!its and provide you with the 
opportunity to experience seeing your chosen 
bene!iciaries bene!it from your funds. It’s important 
to take professional advice to determine which 
option is best for you and your family.
It’s important to review your Will regularly, 
such as every two to three years or when 
there is a major change in your or your family’s 
circumstances. For example, marriage revokes 
any existing Will in England and Wales unless 
it was made in anticipation of that marriage. To 
protect legacies from in!lation, consider linking 
their value to in!lation so they maintain their ‘real’ 
value over time.
Using your Will to transfer wealth enables you 
to preserve your own standard of living and future 
security. On the other hand, giving gifts during 
your lifetime allows you to witness seeing your 
bene!iciaries experience the bene!its of your funds. 
Furthermore, if you are subject to UK taxes, 
it may also be more tax-e!!icient to act sooner 
rather than later. Ultimately, each person has 
di!ferent objectives and priorities when it 
comes to wealth succession; what’s important 
is striking the right balance between sharing 
your wealth with loved ones and ensuring that 
you have enough left to maintain your quality 
of life and prepare for whatever the future 
may bring.
Wealth planning involves considering various 
scenarios and ‘stress-testing’ the outcomes 
against assumptions such as potential 
investment returns, in!lation projections and long-
term care costs. This helps ensure that individuals 
are prepared for di#erent eventualities and can 
make better informed decisions about protecting 
their wealth.
WEALTH 
SUCCESSION
FINANCIAL PLANNING 09
2. HOW MUCH WEALTH DO  
YOU WANT TO PASS ON?
When making large gifts, cash!low ‘stress-
testing’ allows you to make informed decisions 
on how much you can a!ford to part with, 
despite the uncertainty of the future. Knowing 
this, it is vital to allow for both worst and 
best case scenarios within your gifting range 
when planning your wealth. When calculating 
how much wealth you want to pass on, it is 
important to consider a few factors. 
First, the amount of assets you want to 
transfer should be enough to cover future costs 
such as taxes or estate planning services. You 
should also factor in in!lation and other potential 
investments that could increase the value of 
your assets over time. 
Additionally, you need to think about the 
lifestyles and needs of your bene!iciaries and 
consider how much money will be required for 
their future needs. It is important to consider all 
of these factors when determining how much 
wealth you want to transfer, as this can have a 
signi!icant impact on your legacy. 
Ultimately, it is essential to have a thorough 
understanding of your goals and !inancial 
situation when calculating wealth-passing 
decisions. By taking the time to consider all 
of these elements, you can ensure that your 
hard-earned wealth is passed on in a way that 
honours your wishes and provides for your 
bene!iciaries.
3. WHOM DO YOU WANT TO  
PASS YOUR WEALTH ON TO?
With regards to deciding how to share your 
wealth, the choice is yours. Should you have 
young grandchildren, a trust structure could be 
bene!icial in covering their long-term costs such as 
education, university fees or property purchases. 
You can keep some control by being a trustee 
yourself, especially if one of your bene!iciaries has 
special needs, as this helps ensure the trust deed 
works for their long-term interests. In addition, 
you may want to bene!it charities close to your 
heart. Ultimately, the decision is an entirely 
personal one and should take into account 
timing and other factors that matter most to you.
4. HOW DO YOU WANT TO  
TRANSFER YOUR WEALTH?
When it comes to transferring your wealth, there 
are a lot of important considerations. It’s essential 
to understand the di#erent options you have and 
ensure that your plans meet your !inancial goals. 
Before making the decision to gift during your 
lifetime, it pays to take a step back and assess 
whether you are able to a#ord it. 
If yes, there are further considerations regarding 
when and how. Steps 1 to 3 can help determine 
whether an absolute transfer or trust structure is 
most suitable; while trusts add complexity, they 
may be the best way of achieving your goals. 
Ultimately, timing and a#ordability must  
be kept top of mind in this process. W
Source data:
[1] fwu-report-"inal-version-20-april-2022.pdf 
(mandg.com)
[2] https://www.independent.co.uk/money/
spend-save/inheritance-will-investment-pension-
assets-life-insurance-a8927966.html
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?
Succession planning will help you to ensure 
that the wealth you have amassed during your 
lifetime is passed on to future generations in 
the way you would wish. If you think this could 
a!fect you, or if you are at all unsure, talk to 
us for more information. We look forward to 
hearing from you.
///  WITH REGA RDS TO 
DECIDING HOW TO SHARE 
YOU R W EA LTH,  THE CHOICE 
IS  YOURS.  SHOULD YOU HAVE 
YOU NG GRA N DCHILDREN,  A 
TRUST STRUCTURE COULD BE 
BENEFICIAL  IN COVERING THEIR 
LONG-TERM COSTS SUCH AS 
EDUCATION,  UNIVERSITY FEES 
OR PROPERTY PURCHASES. 
BRITONS NOT RESEARCHING THEIR INVESTMENTS BECAUSE 
IT’S ‘TIME CONSUMING’ AND ‘COMPLICATED’
A new survey conducted by the Financial Services Compensation Scheme 
(FSCS) and the Financial Conduct Authority (FCA) reveals that 44% of UK 
adults who hold investments of between £100 and £50,000 wish they had 
spent more time researching their investment before making a decision[1]. 
However, this task is commonly neglected due to its perceived complexity – 
it ranked much lower than other tasks like choosing a holiday, buying a house 
and checking social media.
The !indings also highlighted the risk of 
investing in ‘opportunities’ with limited time 
frames. Scammers often use this tactic as a way 
to pressure victims into an ill-advised decision, 
so consumers should assess all investment 
opportunities carefully by visiting the FCA Warning 
List to check if the investment !irm is unauthorised.
Another alarming discovery was that 22% 
of respondents said they hadn’t checked or 
didn’t know if their investment was protected 
by Financial Services Compensation Scheme 
(FSCS). This means that investors could be making 
investments without any chance of compensation 
if something were to happen to their provider.
Additional !indings from the study include:
   11% of Britons who have made a !inancial 
investment said they do it because their 
friends are investing, with 26% !inding it ‘fun’
   14% chose investments because they were 
promoted by a celebrity or in!luencer on 
social media
   Those aged 18$24 who have made a !inancial 
investment were more likely to invest while 
watching TV/Net!lix (13%), at the pub (11%) or 
coming back from a night out (7%) compared 
to those over 25
The FSCS cannot provide protection against 
being scammed. Investors need to take time in 
doing research and be vigilant when it comes to 
fraudsters, as they will always !ind new ways to 
target people.
PERFORM RELEVANT CHECKS  
BEFORE INVESTING
   Familiarise yourself with the warning signs of 
a scam. These include, but are not limited to, 
unexpected or unsolicited contact, pressure to 
make a decision within a set time window  
and unrealistic returns
   Check the FCA Warning List to  
determine if the !irm you’re dealing  
with is authorised by the FCA
   Verify the person you’re dealing  
with is who they say they are  
through the FCA Register
   Con!irm that your investment is  
eligible for FSCS protection using 
 the new Investment  
Protection Checker
SHOW ME 
THE MONEY
WANT TO MAKE THE MOST  
OF YOUR MONEY, AND NOT  
GET SCAMMED?
Ultimately, the best way to make the most of 
your money is to seek professional !inancial 
advice from an FCA Registered adviser. We’ll 
build a personalised investment plan for you. 
You’ll stay !irmly in control of your investments, 
with support and guidance from our highly 
experienced investment experts. 
10  INVESTMENT
Source data:
[1] FSCS and the FCA commissioned 
research from OnePoll to gain insight into 
attitudes towards investments and what 
people are looking for. 
Between 10!23 December 
2021, OnePoll surveyed 
2,000 UK adults, 740 of 
whom had at least one 
investment. The "indings 
highlighted in the release 
are based upon 
this research.
PROTECTING AGAINST THE FINANCIAL IMPACT 
THAT A SERIOUS ILLNESS CAN CAUSE 
People are increasingly becoming more concerned about the possibility 
of being affected by a critical illness such as cancer, stroke or heart attack, 
according to new research findings[1]. This is reflected in the fact that searches 
for ‘critical illness insurance’ have skyrocketed, with, on average, 6,800 people 
searching for ‘critical illness cover’ every month, mostly asked on Google.
With rising rates of serious illnesses like 
cancer (one in two chance of getting it at 
some point in one’s lifetime, according to NHS 
estimates), people are becoming more aware 
of their need to be covered and secure proper 
protection against critical illnesses.
In challenging times, the number one priority 
is to support those you love. The data is clearly 
highlighting that increasingly people want to !ind 
out more about how to protect their loved ones, 
especially if they become ill or seriously injured.
Answers to some of the most frequently asked 
questions around critical illness cover:
Q: WHAT IS CRITICAL ILLNESS COVER
A: Critical illness cover provides a tax-free 
lump sum of money – or income – if you 
become seriously ill from a speci!ied condition 
or su!fer from a life-altering injury. This type 
of insurance usually covers very serious and 
long-term conditions such as heart attack, 
Parkinson’s disease or cancer. By investing 
in critical illness cover, you can take comfort 
in the knowledge that your family will be 
provided with !inancial support should they 
face a major health setback.
Q: HOW MUCH CRITICAL ILLNESS  
COVER DO I NEED?
A: The cost and amount of critical illness insurance 
can vary depending on a number of factors, 
including age, health, smoking status, policy 
length, coverage amount and the kinds of illnesses 
included in the policy. Generally speaking, the more 
expensive and comprehensive the cover is, the 
higher likelihood there is of making a claim on it. 
Therefore, purchasing a policy at an earlier age and 
maintaining a healthy lifestyle can result in lower 
premiums.
Q: DO I NEED CRITICAL ILLNESS COVER?
A: Finding the right critical illness insurance 
policy is especially important for those with 
families to protect. 
Before deciding on any policy, it’s important to 
ask yourself a few key questions such as:
   What would happen if my family lost my 
income due to an illness?
   What !inancial changes would need to be 
made if I could no longer work because of 
an illness?
   Do we have any savings or other assets 
that can support us !inancially? Are we 
comfortable using them?
By answering these questions, you will be 
able to better understand your family’s current 
and future !inancial context and choose a policy 
accordingly.
Q: WHAT DOES CRITICAL ILLNESS 
INSURANCE COVER?
A: Critical illness insurance can be a great way 
to help protect yourself and your family in the 
event of an unexpected illness. Insurers o!fer a 
variety of policies that cover di!ferent illnesses, 
with some even o!fering coverage for less 
serious or earlier stage illnesses. Additionally, 
many insurers o!fer multiple levels of payout 
depending on the severity of the illness, 
ensuring full coverage if you are faced with a 
really serious health condition.
Furthermore, almost all policies also  
provide cover for children against certain 
illnesses. This protection can provide your 
family with !inancial support in di!!icult times, 
such as when extra costs may be required 
for private treatment or lost income during 
periods of caregiving.
Q: WHAT ILLNESSES ARE COVERED BY 
CRITICAL ILLNESS INSURANCE?
A: When it comes to critical illness insurance, 
most policies will cover cancers, heart attacks and 
strokes as a minimum. Depending on the insurer, 
you may be able to get coverage for more than 
50 additional illnesses such as organ transplants, 
blindness and deafness. It is important to obtain 
professional advice to make sure you obtain the 
right policy that provides the best coverage for 
your and your family’s speci!ic needs.
Q: WHAT CANCERS ARE COVERED BY 
CRITICAL ILLNESS INSURANCE?
A: There are over 100 di#erent types of cancer, 
and some may be excluded from critical illness 
cover. Before recommending a policy, we’ll 
explain the details of your cover to ensure you 
understand what illnesses you are covered for.
Even if you don’t have dependents or family 
members who rely on you !inancially, critical 
illness insurance can still be bene!icial. It can 
provide !inancial relief when you’re unable to 
work due to an illness but still need to keep up 
with household bills.
Q: DO I NEED CRITICAL ILLNESS  
COVER AS A RENTER?
A: Even if you rent your home, critical illness 
insurance is essential for those who have 
dependents relying on them !inancially. A tax-free 
cash payout from a critical illness policy can 
provide much needed support in the event of an 
illness or injury during the policy period. W
Source data:
[1] Data Collection from Semrush and Google 
Trends in September 2022 – LifeSearch 02.10.22
CRITICAL ILLNESS COVER,  
YOUR QUESTIONS ANSWERED
DO YOU NEED CRITICAL ILLNESS  
OR SERIOUS ILLNESS COVER?
Critical illness insurance provides a helping 
hand for you and your loved ones when it is 
needed. For support when you need it most for 
you and your loved ones, please contact us for 
more information. Don’t leave it to chance.
PROTECTION 11
PLANNING YOUR FINANCES TO BE SUSTAINABLE FOR THE LONG TERM IS KEY
There are signs and targets that can signal that you are prepared to retire, 
but it can be difficult to figure out when you are truly ready to retire. We may 
think of retirement as being centred around a particular age or monetary 
amount. When we get to ‘X’ years old or have ‘Y’ amount of money, we can 
move on to our ‘golden years’. 
The turbulent times we’re living through have 
given many people pause for thought to consider 
their work-life balance and think more seriously 
about what makes them happy. While happiness 
for many increases in retirement, others !ind their 
!inances take the strain when they retire early 
and money worries are one of the biggest factors 
resulting in people returning to work. If you aspire 
to retire early, it’s vital you plan your !inances to 
be sustainable for the long term.
6 QUESTIONS TO ASK YOURSELF FOR A 
SECURE FINANCIAL FUTURE
1.WHAT IMPACT COULD INFLATION  
HAVE ON MY RETIREMENT PLANS?
In!lation is a major factor when planning 
for retirement because it can reduce the 
purchasing power of your money over time. If 
the amount you receive in retirement is based 
on a !ixed income, it will not be able to keep up 
with future in!lationary rises, meaning that you 
may likely be unable to a!ford the same lifestyle 
that you enjoyed before retirement. 
Therefore, it is essential to plan for retirement 
by ensuring that your savings and investments 
are able to grow in real terms, above the 
rate of in!lation. This can be done through a 
combination of investing in assets that aim to 
provide returns above the rate of in!lation, as 
well as ensuring that your retirement income is 
not linked to a !ixed amount but instead grows 
with in!lation over time. 
2. WHAT IS MY RETIREMENT TIMELINE?
When it comes to planning for your retirement, 
it’s best to get a plan in place far ahead of your 
intended retirement date. That way, you can 
take the time to gain a full understanding of 
your !inancial situation and identify any issues 
or opportunities for improvement. Ideally, you 
should start saving for retirement in your 20s 
and 30s, even if you don’t plan to retire for many 
years. This will help you build your savings over 
time and ensure that you have enough money to 
sustain yourself during retirement. 
Of course, if you !ind yourself nearing retirement 
without a plan already in place, don’t fret, we are here 
to help. With our expertise and experience, we can 
work with you to optimise your retirement plans no 
matter how close you may be to retirement. 
When considering your retirement timeline, 
there are several factors to consider: your age, 
income level and lifestyle, all of which will have an 
e#ect on your retirement plans. 
3. COULD RETIREMENT CASH FLOW 
MODELLING HELP ME?
Retirement cash !low modelling is very useful 
in making assessments about your future 
retirement requirements. It enables you to 
consider all of your potential sources of income 
TIME TO RETIRE?
12  RETIREMENT
in retirement and how they can best be used to 
satisfy your expenditure needs. 
This means considering a number of factors 
such as your underlying investments, tax and, 
most importantly, how well your di#erent income 
streams are protected against in!lation. Another 
bene!it of using cash !low modelling is that you 
can easily change those assumptions if your 
circumstances change, factoring in di#erent 
investment returns, tax rates and in!lation. This 
allows you to assess how much you need to have 
accumulated prior to your retirement.
4. WOULD AN ANNUITY BE BENEFICIAL?
Retirement is an important milestone in 
life, and it’s essential to make sure you have 
enough money to ensure a comfortable 
lifestyle afterwards. One of the options 
available to those retiring is an annuity. With 
fewer employers now o!fering the guarantee 
of a !inal salary pension, annuities could be 
an appropriate option to consider for some 
retirees. An annuity provides a regular income 
for the rest of your life, and can make sure  
you have enough money to last you 
throughout retirement. 
But in order to decide whether an annuity 
is right for you, it’s important to look at the 
di!ferent types of annuities available, consider 
the tax implications and other factors such 
as in!lation. An annuity could be bene!icial for 
those who have no capacity for their income to 
fall in the future, and those with reduced health.
5. AM I SITTING ON TOO MUCH CASH?
Even during periods of high in!lation, investments 
that are in real assets can provide a hedge 
against the erosion of wealth. Cash holdings are 
ill-advised in this situation as the current interest 
rates barely meet in!lation and its real value is 
guaranteed to decrease. Investing in assets is one 
of the best ways to safeguard your retirement 
savings against the e#ects of in!lation. 
In!lation can erode the value of your 
savings over time. By investing in real assets, 
you can help to ensure that your retirement 
savings remain secure even in a rising in!lation 
environment. Investing in assets can provide you 
with the opportunity to create a sustainable and 
secure retirement plan that is protected from the 
e#ects of in!lation. Ultimately, investing in real 
assets is an important part of any comprehensive 
retirement savings strategy.
6. WHAT IS MY ATTITUDE TO  
INVESTMENT RISK?
When making investment decisions, you 
need to establish the level of risk that you are 
comfortable with. This will vary from person to 
person, so it is important to obtain professional 
advice to help you assess your risk tolerance. 
Understanding your attitude to investment 
risk is an important factor when planning for 
retirement. Taking the time to learn about 
how you respond to di!ferent kinds of market 
volatility and levels of risk will help you create a 
more informative and e!fective retirement plan. 
Knowing what kind of investor you are – 
conservative, balanced or aggressive – will enable 
you to make informed decisions about where 
to invest your money and how much risk you 
are comfortable taking on. It can also help you 
avoid some of the common pitfalls associated 
with retirement planning, such as being too 
conservative or overly aggressive in your 
approach. This will help you to save and invest 
more e#ectively, allowing you to make the most 
of your retirement savings. 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.
DO YOU NEED HELP WITH  
YOUR RETIREMENT PLANS?
We understand that everyone’s retirement plans 
are di!ferent. That’s why we’re here to help you 
make sense of your future, whatever that looks 
like. To get your retirement plans in motion, talk 
to us about your !inances. We look forward to 
hearing from you.
///  WHEN IT  COMES TO PLANNING FOR 
YOUR RETIREMENT,  IT ’S  BEST TO GET 
A PLAN IN PLACE FAR AHEAD OF YOUR 
INTENDED RETIREMENT DATE.  THAT WAY, 
YOU CAN TAKE THE T IME TO GAIN A FULL 
UNDERSTANDING OF YOUR FINANCIAL 
SITUATION AND IDENTIFY ANY ISSUES OR 
OPPORTUNITIES FOR IMPROVEMENT.
RETIREMENT 13
RISING PRICES ADD ALMOST 20% TO ‘MINIMUM’ COST OF RETIREMENT
Despite the slow economic recovery, many retirees trying to maintain a 
basic standard of living have seen the cost of their lifestyle increase by nearly 
20% over the past year, according to a new report[1].
The !indings were based on research which 
outlined three di#erent levels of expenditure 
needed for retirement: Minimum, Modest and 
Comfortable lifestyles. For those on a Minimum 
level, the increases in food and energy costs have 
had the most dramatic e#ect, with prices rising 
higher than in other categories.
EXPECTATIONS FOR RETIREMENT 
The Retirement Living Standards, independent 
research by the Centre for Research in Social Policy 
at Loughborough University, describes the cost 
of three di#erent baskets of goods and services, 
established by what the public considers realistic 
and relevant expectations for retirement living. 
These baskets comprise six categories: 
household bills, food and drink, transport, 
holidays and leisure, clothing, and social and 
cultural participation.
FOOD AND ENERGY 
According to the latest !igures, the research 
identi!ied those on a Minimum lifestyle 
are potentially at greatest risk due to the 
heightened increases in food and energy costs, 
which form a higher proportion of their budget 
than other categories. 
The cost of a Minimum lifestyle has increased 
by 18% for a single person and by 19% for a 
couple. To make sure retirees can still a#ord 
a basic standard of living, it’s important that 
the government continues to follow the State 
Pension triple lock, which was announced in the 
last Autumn Statement. 
MORE FINANCIAL SECURITY 
This commitment means that the State Pension 
will rise by 10.1% to £10,600 per year, which 
should be achievable for a single person if they 
supplement the State Pension with income from 
a workplace pension saved through automatic 
enrolment during their working life.
For those looking for a more comfortable 
retirement, the Moderate level increased 12% to 
£23,300 for a single retiree and by 11% to £34,000 
for a couple. This level provides more !inancial 
security and more !lexibility, including a bigger 
budget for weekly food shopping and occasional 
eating out. 
NEW STATE PENSION 
To achieve this level, a couple sharing costs with 
each in receipt of the full new State Pension 
would need to accumulate a retirement pot 
of £121,000 each, based on an annuity rate of 
£6,200 per £100,000.
At the Comfortable Retirement Living Standard, 
retirees can expect to have more luxuries like 
regular beauty treatments, theatre trips and three 
weeks’ holiday in Europe a year. A couple could 
spend £238 per week on food shopping. 
STRAIN ON HOUSEHOLDS 
At this level, the cost of living increased 11% to 
£37,300 for one person and 10% to £54,500 for 
a two-person household. The report highlights 
that to achieve this level, a couple sharing costs 
with each in receipt of the full new State Pension 
would need to accumulate a retirement pot of 
£328,000 each, based on an annuity rate of 
£6,200 per £100,000.
The cost of living has been on the rise, placing a 
greater strain on households in the UK. This year 
has been particularly di"icult for living standards 
FINANCIAL 
SECURITY AND 
FREEDOM
14  RETIREMENT
across the board. In particular, domestic fuel costs 
have risen a staggering 130%, in!licting further 
strain on incomes for those in retirement. 
MODERATE AND COMFORTABLE 
The cost of food and fuel has risen signi!icantly 
over the year, eating up around a third of the 
budget at minimum income standard levels. This 
can mean that people struggle to participate 
in social activities, which is why all budgets 
include some expenditure on social and cultural 
participation, accounting for a !ifth of the budget 
at minimum income standard levels and a larger 
proportion in moderate and comfortable budgets.
At higher incomes, car ownership takes up 
around 10% of the budget due to an increase in 
second-hand car prices and petrol/diesel costs.
OWN PERSONAL REQUIREMENTS
Finally, annuity rates may change, which 
a!fects how much money one needs 
for retirement – £6,200 per £100,000 is 
illustrative; research will help individuals 
identify their own personal requirements.
Retirement planning is an essential part of 
!inancial planning, as it provides individuals 
with the ability to prepare for their later 
years. By having a plan in place, retirees can 
ensure that they have enough money saved 
up to support themselves and maintain their 
standard of living when they no longer have a 
steady income from work. W
Source data:
[1] Pensions and Lifetime Savings Association 
"igures quoted are for the UK, excluding London. 
The pot size calculation assumed an annuity of 
£6,200 per £100,000 and is illustrative. Annuity 
rates change frequently and vary according to 
product type, saver age and other circumstances 
(e.g. location, health etc.)12/01/23.
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 15
WANT TO TAKE THE NEXT  
STEP TOWARDS YOUR  
DREAM RETIREMENT?
It’s never too late to start saving for your 
future and to make sure you don’t !ind yourself 
facing an uncertain life once you have stopped 
working. Retirement planning is an essential 
step towards achieving !inancial security 
and freedom in your later years. Planning for 
retirement now will ensure you don’t have to 
worry about money in the future. 
PROTECTING YOUR ASSETS AND PREPARING YOU 
FOR GOING FORWARD ON YOUR OWN
Divorce involves many loose ends, both emotional and financial. It can 
generate high levels of uncertainty and financial stress, as it impacts on all 
areas of your life, from living arrangements to assets and pensions. That’s 
why financial planning through a divorce is essential to help protect your 
assets and prepare you for going forward on your own.
Making the right !inancial decisions during 
your divorce can be di"icult. You may be worried 
about your future and how you will support 
yourself and your family. Divorce is a di"icult 
time emotionally and !inancially. It is important to 
obtain professional !inancial advice to help you 
through this challenging period.
This will help protect your interests, ensuring 
that you receive a fair outcome and your future 
is secure. It will also enable you to have a clear 
understanding of your current !inancial situation. 
This includes knowing what assets and debts you 
have, as well as what income and expenses you 
have each month.
FUTURE FINANCES
You’ll need to be realistic about your future 
income and expenses. That means putting a 
realistic budget in place so that you can make 
informed decisions about your future !inances.
Don’t overlook any tax implications based 
on any !inancial decisions you make. This is 
especially important if you are considering selling 
assets or transferring property.
DIVIDING PENSIONS 
One of the most important assets to consider 
is your pension. Pensions are often overlooked 
in divorce settlements, but they can be worth a 
signi!icant amount of money. It is important to get 
professional advice to make sure that pensions are 
taken into account in any settlement.
There are several options for dividing pensions 
in a divorce, and the best option will depend on 
your individual circumstances. You may be able 
to keep your pension in its current form, or you 
may need to transfer some or all of it to your 
ex-partner.
DIVORCE SETTLEMENT
Whatever you do, make sure that you obtain 
professional advice before making any decisions 
about your pension. It is one of the most 
important !inancial assets you have, and you 
need to make sure that it is taken care of in your 
divorce settlement.
With careful planning and communication, you 
can make the transition as smooth as possible 
to help you move on with your life and make a 
fresh start.
Here are some tips to help you make the 
right !inancial decisions during your divorce:
1. Get organised. Gather all of your !inancial 
documents, including tax returns, bank statements 
and investment records. This will help you and 
your lawyer understand your !inancial situation 
and make the best decisions for your future.
2. Make a budget. Once you have all of your 
!inancial information gathered, sit down and 
create a budget. Be honest with yourself about 
your  income and expenses. This will help you 
make informed decisions about your !inances 
going forward.
3. Understand your rights. Speak with a lawyer 
to understand your rights and responsibilities 
during the divorce process. This will help you 
make decisions that are in your best interests.
4. Communicate with your spouse. If you have 
children, it is important to communicate with your 
spouse about !inancial matters. This can be di"icult, 
but it is important to try to reach an agreement on 
child support and other !inancial issues.
5. Obtain professional !inancial advice. This 
will help ensure that you are making sound 
decisions with your !inances during this di"icult 
time. There are many factors to consider when 
going through a divorce. The advice will help 
you understand the !inancial implications of the 
decisions you make, and provide guidance on 
how best to protect your interests. W
DIVORCE SETTLEMENTS ARE NOT REGULATED 
BY THE FINANCIAL CONDUCT AUTHORITY.
THINKING ABOUT 
DIVORCING?
16  PROTECTION
NEED HELP MAKING THE  
RIGHT FINANCIAL DECISIONS  
DURING A DIVORCE?
Making the right !inancial decisions during 
a divorce can be di!!icult, especially when it 
comes to pensions. If you have any questions 
about your pension or other !inancial assets 
during a divorce, please contact us.
FINANCIAL PLANNING 17
ALMOST ONE IN THREE OVER-55s’ MORTGAGE REPAYMENT PLANS DERAILED
The cost of living crisis is a concerning and long-term problem for those 
trying to pay off their mortgage, especially over-55s who are already having 
difficulty saving enough for retirement.
Higher mortgage rates and rising costs of 
living are making it harder for some mortgagors 
to a#ord their mortgage repayments. This could 
lead to some households defaulting on their 
mortgage or having to cut back sharply on 
their spending, posing a signi!icant risk to their 
!inancial stability.
DERAILED MORTGAGE PLANS
More than 3.3 million over-55s in the UK still have 
mortgages to repay and the cost of living crisis 
is making it more di"icult for them. According to 
new research, 30% of this cohort feel that their 
ability to repay these loans is hindered due to 
the current climate, equating to around 879,000 
people with potentially derailed mortgage plans[1].
Of those who have yet to pay o# their 
mortgage, 16% say they plan to do so ahead of 
retiring but are concerned that it may be harder 
due to the cost of living crisis while 13% suggest 
it will take longer and 1% worry about their 
investments not performing as expected.
INCOME DURING RETIREMENT 
Those who have already paid o# their mortgage, 
amounting to 40% of over-55s in Britain, are 
not exempt from !inancial worries either. The 
research identi!ied that 4% admitted borrowing 
could be a necessity in order for them to secure 
an adequate income during retirement and 
maintain a healthy standard of living.
The research also highlights that the 
proportion of people planning to pay o# their 
mortgage before they retire has risen to 19%, but 
it is likely some have chosen to delay leaving 
work in order to do so. Additionally, there has 
been a 5% increase in those who say they will still 
be able to satisfy their repayment goals despite 
the di"icult climate, although it could prove more 
challenging for them.
LONG!TERM CHALLENGE 
The research identi!ied that almost 900,000 
in the over-55s age group will !ind it tougher to 
service their borrowings, with the rising cost of 
utilities and groceries taking a larger portion of 
their income. For those already living frugally, 
pressure could soon become intolerable.
The cost of living crisis has been an increasingly 
long-term challenge for those looking to pay o# 
their mortgage, especially for over-55s. This age 
group is already struggling to save enough money 
for retirement and this situation can put them into 
further !inancial di"iculty. It is important to be aware of 
the potential issues that could arise as a result of the 
cost of living crisis and how to prepare for them. W
Source data:
[1] https://www.keyadvice.co.uk/about/press-
release/almost-one-in-three-over-55s-with-a-
mortgage-admit
COST OF LIVING CRISIS
TIME TO DISCUSS HOW  
TO ACHIEVE YOUR  
FINANCIAL FREEDOM?
A carefully designed !inancial plan can give 
you the freedom to do even more of the things 
you want – and maybe even others you never 
thought possible. To !ind out more and discuss 
your options, please contact us.
MONEY AND FINANCES ARE OFTEN A COMMON 
SOURCE OF DISAGREEMENT AND STRESS
When you get married, or cohabit, you are not just blending your 
hearts and lives together, you are also combining your finances. So 
it is important that you take the time to discuss and plan how you 
will manage your combined resources in order to ensure financial 
security for both of you.
FINANCIAL BLISS!
18  F INANCIAL PLANNING
But it’s not uncommon for money to cause 
major problems in a relationship. In a recent 
survey, 27% of couples claimed money has caused 
them issues, an increase likely related to the cost 
of living crisis[1]. Interestingly, the older generation 
seemed to have fewer arguments about money, 
with only 12% of them saying it has caused an 
issue compared to 35% of 35$44-year-olds.
NO ONE!SIZE!FITS!ALL APPROACH
When it comes to managing !inances as a couple 
there is no one-size-!its-all approach, especially 
in these trying times when prices are constantly 
rising. 38% of couples prefer having some mix-
and-match accounts with money in both joint 
and separate accounts, 29% opt for pooling both 
incomes into a single account, and 27% keep 
things completely separate.
Openness and honesty are meant to be key 
components in any successful relationship; 
however the !igures revealed that 26% of 
35$44-year-olds had lied to their partner 
about money while only 12% of those over 65 
confessed the same.
SET REALISTIC EXPECTATIONS
The good news is that, overall, 47% described 
talking about !inances with their partner as 
being natural and part of daily conversation. 
11%, mainly among 35$44-year-olds, !ind it 
awkward while 10%, also mostly coming from 
this demographic group said they would avoid 
doing so altogether.
Building a secure !inancial future with your 
partner starts with planning. Honesty is the best 
policy when it comes to !inances; couples should 
have clear, open conversations about their 
!inancial issues, hopes and aspirations. Doing this 
will help set realistic expectations, address any 
potential problems, develop a budget that works 
for both of them and create an overall stronger 
!inancial plan.
MAKE INFORMED DECISIONS 
Agreeing on one or two shared goals as a couple can 
provide you with an additional source of motivation 
to stay on track. Once you know your goals, you’ll be 
able to make informed decisions about how much 
money to save and where to invest it. 
For example, if you have a goal of moving 
into a bigger property in three years’ time, then 
it might be wise to put that amount into a cash 
savings account in order to minimise risk. For 
longer-term goals (10+ years away), investments 
in the stock market may provide more growth 
potential in the long run and improve your 
chances of hitting your targets faster.
ADVANTAGE OF TAX BENEFITS 
Appropriate tax planning will ensure more of your 
money goes towards your future. Consider taking 
advantage of the tax bene!its available through 
Individual Savings Accounts (ISAs). Each partner 
can currently contribute up to £20,000 (for tax 
year 2022/23), enabling you to shield the money 
from Income and Capital Gains taxes. 
You may also bene!it from the Capital 
Gains Tax exemption, which lets both partners 
realise up to £12,300  (for tax year 2022/23) 
in investment gains without paying anything. 
However, the threshold for paying Capital Gains 
Tax has been reduced to £6,000 for the 2023/24 
tax year and will be cut again to £3,000 in the 
2024/25 tax year.
WORST!CASE SCENARIO
For married or civil partnerships couples, 
this exemption could be further doubled as 
investments can be transferred between partners 
tax-free. Additionally, every person has their own 
personal savings allowance where they don’t 
have to pay tax on interest earned up to a certain 
amount, so you should take advantage of this.
Considering the ‘worst-case scenario’ can be a 
tough conversation to have, but it’s one that you 
and your partner should have in order to ensure 
that you are both !inancially secure. Taking out 
the right insurance policies and drawing up a Will 
may not make for the most romantic dates, but 
they are important steps to protect yourselves 
!inancially. By doing these two things, you can 
rest assured knowing that your wishes will be 
followed, even if one of you passes away or 
su#ers from an illness. W
Source data:
[1] RBC Brewin Dolphin survey as at 
30 June 2022.
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.
FINANCIAL PLANNING 19
READY TO DISCUSS YOUR 
FINANCIAL SITUATION TO MAKE  
SURE YOUR MONEY IS BEING  
MANAGED RESPONSIBLY?
When you are in a relationship, it is important 
to arrange your !inances as a couple. As we’ve 
seen, couples often face !inancial challenges 
such as making ends meet, planning for 
retirement and saving for future goals. By taking 
the time to discuss your !inancial situation, you 
can make sure your money is being managed 
responsibly and that you are on the same page 
!inancially. To discuss how we can help, please 
contact us.
///  W H E N  I T  C O M E S  TO  M A N A G I N G  F I N A N C E S  A S  A 
COUPLE  THERE  IS  NO  ONE !SIZE !FIT S !A L L  A P P R O A C H , 
ES P E C I A L LY  I N  T H ES E  T R Y I N G  T I M ES  W H E N  P R I C ES  A R E 
CONS TANTLY  RISING .  "#$  O F C O U P L E S P R E F E R H AV I N G 
SOME  MIX  AND  MATCH  A CCOUNT S  WITH  MONEY  IN  BOTH 
JOINT  AND  SEPARATE  A CCOUNT S ,
REDUCING THE RISK OF INVESTING IN VOLATILE MARKETS
Cost averaging, or pound cost averaging, is an investment approach that 
involves dividing up the total amount to be invested into equal amounts and 
investing these at regular intervals over a period of time. 
This strategy has become increasingly popular 
due to its ability to reduce the risk of investing in 
volatile markets, as well as its simplicity. So let’s 
consider some of the reasons why investors may 
choose to take this approach.
MAXIMISE RETURNS 
By investing equal amounts, it enables you to 
build up your investment portfolio over time. 
Making regular monthly payments of £1,000 into 
an investment fund is a less daunting and more 
manageable approach than investing a single 
lump sum of £500,000 or more.
Pound cost averaging investing also means 
you take advantage of price !luctuations in the 
market. By regularly making investments, you 
can potentially buy assets at lower prices when 
they decline or sell them at higher prices when 
they rise. This helps to maximise returns while still 
mitigating some of the risk associated with large 
lump sums being invested all at once. 
MARKET FLUCTUATIONS 
Pound cost averaging also makes it easier to 
keep to a consistent investment plan, as the 
amount to be invested and the intervals between 
investments are predetermined.
This ensures you don’t become swayed by 
market !luctuations or fall prey to impulsivity, which 
can lead to poor decisions. Additionally, pound 
cost averaging eliminates the need for frequent 
monitoring of your portfolio since investments are 
made automatically at regular intervals. 
DISCIPLINED APPROACH 
This strategy allows investors to maintain 
a disciplined approach and build up their 
holdings over the years without needing large 
amounts of capital upfront. 
Pound cost averaging can also reduce 
transaction costs since fewer assets need to 
be bought in order to reach the desired total 
investment amount when compared with 
investing all at once. 
EFFECTIVE STRATEGY 
Ultimately, pound cost averaging is an e!fective 
strategy for appropriate investors who want to 
reduce the risk of investing in volatile markets, 
but at the same time still take advantage of 
price !luctuations. 
By dividing up the total investment into equal 
amounts and investing at regular intervals 
over time, this approach can help to maximise 
returns while minimising volatility. Being able 
to simplify the investment process and reduce 
transaction costs makes pound cost averaging 
an e#ective way for investors to manage their 
portfolios e"iciently. W
THE VALUE OF YOUR INVESTMENTS CAN 
GO DOWN AS WELL AS UP AND YOU MAY GET 
BACK LESS THAN YOU INVESTED
COST AVERAGING 
YOUR INVESTMENTS
20  INVESTMENT
LOOKING FOR A TAILORED  
SOLUTION TO HELP YOU  
ACHIEVE YOUR FINANCIAL GOALS?
Investing in appropriate assets for your 
investment goals is an e!fective way to build 
your wealth over the long term. It also provides 
several key bene!its, such as compounding 
returns, diversi!ication of risk and tax-e!!iciency. 
To talk about your investment goals, please 
contact us.
2.5 MILLION BRITONS LOSE AT LEAST £23,126 A YEAR DUE TO LONG-TERM ILLNESS
Losing your job due to an illness or injury could have serious financial 
consequences for you and your family. Rent, mortgage payments and other living 
costs may no longer be covered, leading to a lifestyle that’s difficult to maintain.
New data has revealed the true cost of living 
with long-term illness for those a#ected in the 
UK[1]. According to the !igures, an estimated  
2.5 million people have been unable to work 
due to a long-term sickness and will lose at least 
£23,126 a year on average as a result. 
STAND TO LOSE EVEN MORE 
This takes into account 28 weeks Statutory 
Sick Pay (SSP), amounting to £2,781.80, and 24 
weeks Employment and Support Allowance 
(ESA) totalling £1,848 if eligible and able to 
return back to work in future. Those not 
eligible for ESA stand to lose even more – up 
to £24,974 per year. These !igures are for those 
not eligible for income protection insurance.
Worryingly, the research has also revealed 
that a quarter of those who are out of work 
due to illness have been diagnosed with a 
mental illness or phobia, with the majority 
being female.
DEPRESSION AND ANXIETY 
Worryingly, women make up 53% of those on long-
term sick leave in the UK and mental illnesses such 
as phobias, panic disorders, depression and anxiety 
are the most common causes for these workers 
being unable to return back into the workforce.
These numbers highlight just how essential it is 
for individuals a#ected by long-term illness or injury 
to have critical illness insurance, which provides 
additional !inancial protection during di"icult times.
TOO SICK TO WORK
Income protection insurance covers a substantial 
portion of your income during any periods 
that you’re o# work due to sickness or injury. It 
protects your savings, !inancial plans and loved 
ones when you’re too sick to work. 
The default sickness cover in the UK is 
Statutory Sick Pay (SSP), which isn’t much. You 
might already receive an arrangement through 
your employer, but there’ll most likely be an 
expiry date on their support. W
Source data:
[1] Data split by sex and main health condition 
– total number of those out of work due to 
long-term sickness taken from June-August 2022 
– LifeSearch 15/12/22.
INSURANCE THAT WORKS 
WHILE YOU CAN’T
LOOKING FOR PEACE OF MIND IF  
YOU’RE UNABLE TO WORK BECAUSE  
OF AN ACCIDENT OR ILL!HEALTH?
Income protection insurance can be such an 
important source of security. It provides peace 
of mind and o!fers protection in times of need. 
Don’t let a sudden change in circumstances 
a!fect your lifestyle, make sure you’re protected. 
To !ind out more, speak to us today.
PROTECTION 21
ALLEVIATE ANY FEAR AND UNCERTAINTY YOU MIGHT 
HAVE ABOUT YOUR FINANCIAL FUTURE
No matter what stage of life you’re in, it’s never too early or late to start 
planning for your retirement. By taking a personalised approach, you can 
develop a retirement plan that will work for you throughout your life.
At every stage of our life it can be di"icult to 
take time to think about our future when there 
are so many other things competing for our 
attention, but it’s important to be prepared and 
make sure that you’re planning ahead for the 
retirement you deserve.
PLANNING FOR RETIREMENT IN YOUR 20S
It’s never too early to start planning for 
retirement. Though retirement may seem a long 
way o#, the earlier you start saving and investing, 
the more time the compounding e#ect on your 
money has to work. Putting money away now 
can make a huge di#erence to your retirement 
funds when the time comes.
HERE’S WHY YOU SHOULD START PLANNING 
FOR RETIREMENT IN YOUR 20S:
   It enables you to bene"it from the power of 
compounding: Regularly investing amounts 
of money can grow into a large sum over time 
thanks to compounding.
   You can a#ord higher-risk investments: As 
retirement may be years away, making higher-
risk investments such as stocks and shares 
in your 20s can help boost returns without 
putting too much at risk.
   It encourages good "inancial habits: 
Taking steps to plan for retirement now will 
highlight how to manage your !inances 
better and make smart decisions about 
investments and pensions.
   You could get help from employers: Many 
workplace pension schemes o#er employer 
contributions, which is free money that goes 
straight into your pension pot.
PLANNING FOR RETIREMENT IN YOUR 30S
It can be more di"icult to save for retirement in 
your 30s, when you may have greater !inancial 
commitments such as a family or a mortgage. 
But it’s important to stay focused on your 
retirement goals, because the decisions you 
make now could have an impact on your later 
years.
HERE ARE SOME TIPS FOR SAVING FOR 
RETIREMENT IN YOUR 30S:
   Minimise debt: Pay down any outstanding 
debts as soon as possible. This will free up 
more money for retirement savings.
   Optimise asset allocation: As you still have 
plenty of time until retirement, consider 
investing in growth assets such as equities.
   Save regularly and often: Try to make regular 
contributions into a pension account or tax-
e"icient investment vehicle such as a Stocks & 
Shares ISA.
   Take advantage of employer contribution 
schemes: Many employers o#er generous 
contribution schemes which can boost your 
savings pot signi!icantly over time.
PLANNING FOR RETIREMENT IN YOUR 40S
Your 40s are an ideal time to reassess your 
retirement plans and make sure that you’re 
on track. 
RETIREMENT 
PLANNING FOR  
EVERY LIFE STAGE
22  RETIREMENT
///  I T ’ S  N E V E R  TO O  E A R LY 
TO  S TA R T  P L A N N I N G  F O R 
RETIREMENT.  THOUGH 
RETIREMENT  MAY  SEEM 
A LO N G WAY O F F,  T H E 
EA R L I E R  YO U  S TA R T  S AV I N G 
AND  INVE S TING ,  THE  MORE 
TIME  THE  COMP OUNDING 
EFFE C T  ON  YOUR  MONEY 
H A S  TO  W O R K . 
HERE ARE SOME TIPS TO HELP GET YOUR 
RETIREMENT PLAN ON TRACK:
   Calculate how much you need to retire 
comfortably: Seek professional !inancial 
advice to determine how much money you 
need for retirement.
   Consolidate pension accounts: If you have 
multiple pension accounts across di!ferent 
employers, if appropriate, consolidating 
them could make it easier to manage 
them and provide more clarity about your 
pension savings.
   Increase contributions: Consider increasing 
your contributions where possible as the 
higher salary typically seen in the 40s may 
a#ord this opportunity.
   Explore other options: Consider other 
tax-e"icient methods of saving, such as 
transferring part of your salary into an ISA or 
investing in property, depending on what is 
available to you.
PLANNING FOR RETIREMENT IN YOUR 50S
Your 50s are a time to increase your pension 
contributions, review your retirement plans and 
make sure that you’re on track. 
Here are some tips on how to do this:
   Make additional contributions: Consider 
making additional lump sum pension 
contributions, remembering to stay within the 
annual or lifetime allowance limits, with any 
excess liable for further tax charges.
   Review asset allocation: The closer you 
get to retirement, the more risk-averse your 
investment approach should be, so consider 
reducing exposure to higher-risk assets such 
as equities and seek professional !inancial 
advice for tailored advice.
   Take advantage of tax allowances: 
Familiarise yourself with current pension 
allowances and explore any carry forward 
rules available if applicable.
   Speak to a "inancial professional: Consult 
a !inancial professional who can provide you 
with personalised advice tailored to your 
individual needs and requirements.
PLANNING FOR RETIREMENT IN YOUR 60S
In your 60s it’s time to prepare for the 
decumulation phase, an important time when it 
comes to your retirement planning. 
Here are some tips to help get your 
retirement plan on track:
   Prepare a budget: Calculate your expenditure 
levels to help plan for the long term.
   Consider pension decumulation options: 
Explore the various ways you can convert 
your pension savings into retirement income 
and seek professional !inancial advice.
   Review asset allocation: As retirement is 
approaching, reduce exposure to higher-risk 
assets such as equities.
   Review your plan regularly: Regularly 
reviewing your progress will help you prepare 
for retirement and make the necessary 
adjustments if needed.
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 23
HOW MUCH INCOME WILL  
YOU NEED IN RETIREMENT?
There’s a good chance you pay into a personal 
or workplace pension plan each month, but 
do you know how much money you’ll need to 
fund your life after work? Let us help us you 
picture what kind of lifestyle you could have in 
retirement. To !ind out more, speak to us today.
ALMOST HALF OF UK CONSUMERS FIND PENSIONS INFORMATION DAUNTING 
In an era where the cost of living is threatening to undermine consumer 
confidence, it’s no surprise that almost half of UK consumers find 
pensions information overwhelming. It can be difficult for individuals to 
make informed decisions about their retirement planning when faced 
with such a daunting task. 
New research has revealed that half (50%) of 
consumers feel overwhelmed by pension and 
retirement information, and more than two in !ive 
(41%) do not know what to do next once they 
receive it[1].
CONSUMER CONFIDENCE 
In the past year, households have  
been a!fected by high in!lation, rising  
interest rates and volatile markets. This has 
taken its toll on consumer con!idence and  
self-belief, with only 59% feeling con!ident 
when making !inancial decisions, down from 
63% in 2022. In response to this uncertainty, 
more people are turning to outside sources 
for help. 
Today, 83% of people view obtaining advice 
from !inancial professionals as an important 
source of support, compared to 73% last year. 
Pension providers or information on pension 
provider websites (76%), pension provider 
literature (72%) and employers (69%) have 
also all seen an increase in people who !ind 
them helpful for retirement decisions.
SOUND FINANCIAL DECISIONS
People primarily require information about their 
pension and retirement planning in order to 
make sound !inancial decisions. 
   This includes understanding how much 
money their pension will provide upon 
retirement (47%)
   The amount of money currently in their 
pension pot (46%)
   Ensuring enough funds are being 
contributed (32%)
SOURCE FOR GUIDANCE
Pension provider websites have become a 
popular source for guidance, with 41% of people 
visiting them at least once a year. Other sources 
include asking friends and family (39%) or sur!ing 
the internet for advice (39%). Those who have 
workplace pensions often look to their employer 
(33%) or colleagues (29%) for guidance.
Planning for retirement is essential to ensure 
that your !inancial future is secure. That’s why 
it’s really encouraging to see from the research 
that 93% of those with lower incomes who have 
taken control of their !inances report enjoying 
retirement, compared to just 66% of those 
without a retirement plan. Worryingly, however, 
despite this, 72% are doing nothing to prepare for 
later life. W
Source data:
[1] Boxclever survey conducted among 6,000 
UK adults in order to gain insight into the nation’s 
attitude to "inancial advice. Fieldwork for the 
study was conducted between 6 September and 
16 October 2022. The data was weighted post-
"ieldwork to ensure results remained representative 
of the nation across key demographics. For 
comparison, Boxclever also surveyed 4,896 UK 
adults during 16- 23 July 2021.
OVERWHELMED BY 
YOUR PENSION? 
24  RETIREMENT
WANT TO FIND OUT HOW  
TO PLAN AHEAD FOR THE  
RETIREMENT YOU WANT?
Whether you’re years from retirement or it’s just 
around the corner, it’s important to consider 
the lifestyle you’ll want when you stop working. 
There’s a lot to think about. And we can help. 
For more information about your retirement 
options, please contact us.
17% OF SELF-EMPLOYED WORKERS WOULD 
CHOOSE TO CARRY ON WORKING THROUGH 
ILLNESS OR INJURY
Many adults understand the need for financial resilience and taking out 
insurance to protect their incomes in case of sickness or accident. However, 
too many self-employed people do not have any cover to help them should 
they be unable to work and are increasingly likely to choose to carry on 
working despite illness or injury. 
New research has identi!ied that 17% of self-
employed individuals stated they would need 
to continue working if they su#ered from illness 
or injury[1]. Despite this admirable e#ort, it is 
important that those who are ill or injured take 
time o# for recovery in order to ensure a safe and 
sustainable working environment. 
HEALTH COMPLICATIONS
Taking time o# to rest and recover after an illness 
or injury can be bene!icial in the long run, as it 
allows workers to return to work with renewed 
energy, and improved concentration and 
productivity levels. It also helps to reduce the risk 
of further health complications or accidents due 
to fatigue or strain. 
Millions of self-employed individuals would be 
forced to keep working in the event of an illness 
or injury, according to the research. The !indings 
show 60% of self-employed workers would draw 
from their savings if they were unable to work 
for two months, and only 6% of self-employed 
workers surveyed have purchased an income 
protection product themselves.
FUNDS COULD DRY UP
The data shows that many self-employed 
individuals rely on their savings without 
considering how quickly these funds could dry 
up, potentially leaving them unable to pay their 
rent or mortgage after a couple of months. One 
in !ive self-employed workers said they would rely 
on their partner’s income or savings if they were 
unable to work.
Worryingly, 19% would struggle to pay their 
mortgage or rent if unable to work for two 
months due to illness or injury, and 11% would 
resort to taking out a loan, using an overdraft or 
credit cards.
MOST SUITABLE POLICIES
Protection and !inancial resilience are an integral 
part of personal !inancial planning, so it’s 
important to obtain professional advice before 
selecting the most suitable policies. For many, this 
can be an overwhelming concept to tackle when 
establishing a personal !inancial plan. 
Taking the time to understand the various 
components involved in building a resilient !inancial 
future is informative and essential for those 
looking to protect their assets and wealth. From 
understanding the basics of insurance policies to 
tax regulations and retirement planning. W  
Source data:
[1] LV= surveyed 4,000 nationally representative UK 
adults via an online omnibus conducted by Opinium 
between 16 August and 1 September 2022.
PROTECTING INCOME
PROTECTION 25
ARE YOU AND YOUR LOVED  
ONES PROTECTED AGAINST  
LIFE’S ‘WHAT!IFS’?
Protection is about more than simply buying 
an insurance policy, it’s about ensuring you are 
supported !inancially if you are no longer able 
to work or become ill. If you have any concerns 
or would like to !ind out more, please contact us.
///  TA K I N G  T I M E  O F F  TO  R E S T  A N D 
RE CO VER  AF TER  AN  ILLNE S S  OR 
INJUR Y  C AN  BE  BENEFICIAL  IN 
THE  LONG  R UN ,  A S  IT  ALLO W S 
WO R K E R S  TO  R E T U R N  TO  WO R K 
WITH  RENEWED  ENER GY,  AND 
IMPR O VED  CONCENTRATION  AND 
P R O D U C T I V I T Y  L E V E L S . 
READY TO START INVESTING FOR YOUR GRANDCHILD’S FUTURE?
Investing in the future of your grandchildren is a great way to help them 
prepare for their financial needs in life. By setting aside money now, you 
can provide them with added security and increased opportunities in 
the years to come. Investing for grandchildren can be used to help fund 
college tuition, make a down payment on their first car or home, or even 
start a retirement fund.
The earlier you invest, the more time your funds 
have to grow and compound over time. This 
means that a relatively small contribution today 
could lead to much larger returns over the long 
run. Furthermore, it’s important that you consider 
professional advice when making decisions about 
investing for your grandkids. This will enable you 
to take advantage of all available tax deductions 
and legal rules that could make your investment 
even more bene!icial to your grandchildren.
HELPING A GRANDCHILD PREPARE FOR 
THEIR FINANCIAL NEEDS IN LIFE
By investing for your grandchild’s future, you can 
provide peace of mind knowing that you are 
helping them prepare for their !inancial needs 
in life. Not only will this give them the chance 
to pursue their dreams and goals, but it also 
allows you to create a lasting legacy that will be 
remembered for years to come.  
Investing now may help ensure a bright future 
for your grandchildren. In addition, investing is 
an e#ective way to pass down wealth from one 
generation to the next. This can help reduce 
Inheritance Taxes due on large estates and 
enable families to retain more of their assets into 
the future.
NO TAX IS DUE ON ANY GIFTS YOU GIVE IF YOU 
LIVE FOR SEVEN YEARS AFTER GIVING THEM
As well as providing your grandchildren 
with !inancial support, investing can also be 
an e#ective way of reducing an Inheritance 
Tax liability. Gifting out of surplus income is 
a strategy for reducing an Inheritance Tax 
liability when investing for grandchildren. This 
involves gifting money from any excess income 
generated over and above what you need to 
cover your day-to-day living expenses. 
No tax is due on any gifts you give if you live for 
seven years after giving them – unless the gift is 
part of a trust. This is known as the seven year rule. 
If you die within seven years of giving a gift and 
there’s Inheritance Tax to pay on it, the amount of 
tax due after your death depends on when you 
gave it. When making gifts out of surplus income, 
it’s important to ensure that the money is treated 
as a gift and not used as an investment.
JUST ONE WAY TO REDUCE YOUR INHERITANCE 
TAX LIABILITY WHEN INVESTING 
HM Revenue & Customs (HMRC) has very 
speci!ic guidelines on what constitutes a ‘gift’, 
FUTURE WEALTH
26  INVESTMENT
so professional advice should be sought before 
gifting any money to your grandchildren. We 
can help you create an e#ective Inheritance Tax 
mitigation strategy for investing for grandchildren 
that meets all relevant legal requirements. 
Gifting out of surplus income is just one way 
to reduce your Inheritance Tax liability when 
investing for your grandchildren; there are other 
options available too. It’s essential that professional 
advice is sought in order to !ind the best approach 
for your individual circumstances.
PUTTING MONEY INTO A PENSION  
COULD BE AN IDEAL SOLUTION
If you’re looking to build long-term wealth for your 
grandchildren, putting money into a pension is 
an ideal solution. However, there are some limits 
that you should know before taking this route. The 
earliest your grandchild can access the money in 
their pension is age 58. Therefore, it’s important to 
think about how much time you have to allow the 
investments to grow and compound interest over 
the years until they reach adulthood. 
You can open a Junior Self-Invested Personal 
Pension as soon as your grandchild is born. It’s 
protected from Income Tax and is usually exempt 
from Inheritance Tax, too. You can pay in a 
maximum of £3,600 a year (tax year 2022/23) and 
the government will top it up by 20%, up to £720 a 
year – so that maximum contribution will actually 
only cost you £2,880. 
If you start investing in a Junior Self-Invested 
Personal Pension at birth, then by age 58 a child 
or grandchild will have had 58 years of growth 
potential if contributions are made regularly. This 
should help build signi!icant capital which can 
then be used as desired once mature enough to 
do so. 
A HIGHLY TAX!EFFICIENT WAY TO  
SAVE OR INVEST FOR THE FUTURE
Junior ISAs (JISAs) are another option. A Junior 
ISA is an Individual Savings Account that can be 
opened by anyone on behalf of a child under the 
age of 18, when they can gain full access to it. A 
Junior ISA is tax-e"icient way to save or invest as it 
is free from any Income Tax, tax on dividends and 
Capital Gains Tax on the proceeds.
The Junior ISA subscription limit is currently 
£9,000 for the tax year 2022/23. This means that 
if you start investing in a Junior ISA when your 
grandchild is young, by the time they turn 18 they 
could have had considerable growth in the funds 
you have contributed towards them. It also allows 
you to make sure that any money that you have 
saved for them is in a secure environment, with 
professional money management. 
A children’s savings account also provides an 
easy and convenient way to start investing in 
your grandchild’s future. These accounts come 
with various features that make them ideal for 
long-term investments, such as tax-free growth on 
earnings and no contribution limits. 
MATURITY NEEDED TO RESPONSIBLY 
HANDLE ANY MONEY 
Additionally, you have the !lexibility to choose 
how much money you want to invest and when 
you want to add or withdraw funds from the 
account. With these advantages, children’s savings 
accounts provide a secure and practical option for 
diversifying a child’s portfolio.
When investing for your grandchildren, 
professional advice should be sought to 
ensure that all legal requirements are met. It is 
important to consider the legal ownership of the 
money and when your grandchild will become 
eligible to access it. Consideration should also 
be given as to whether your grandchild will have 
the necessary skills, knowledge and maturity 
needed to responsibly handle any money they 
may receive. 
SAFEGUARD YOUR  
GRANDCHILDREN’S FINANCIAL SECURITY
Parents or guardians should take advice in 
order to make informed decisions about what 
is best for their child’s long-term !inancial 
future. By taking our professional guidance 
you can ensure that you are making the best 
decisions possible when investing on behalf of 
your grandchildren.Taking the time to make it 
part of your annual review will give you peace 
of mind knowing that you are taking steps 
towards building a solid !inancial foundation for 
your grandchildren. 
With professional guidance, you can tailor 
an investment strategy speci!ically for them. 
Investing in their future today can have long-
term bene!its as they grow into adulthood. 
Start planning now and make sure your 
grandchildren’s future is secure. 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.
THE VALUE OF YOUR INVESTMENTS CAN GO 
DOWN AS WELL AS UP AND YOU MAY GET BACK 
LESS THAN YOU INVESTED.
INVESTMENT 27
CREATE LASTING FINANCIAL  
SECURITY FOR THE NEXT  
GENERATION IN YOUR FAMILY
Investing for your grandchildren will prepare 
them for their future !inancial needs. With 
our guidance you can create lasting !inancial 
security for the next generation in your family. 
Doing so can be both rewarding and bene!icial 
for everyone involved. Start investing today and 
watch the investments grow for generations to 
come. For more information, please contact us .
///  I F  YO U  S TA R T  I N V E S T I N G  AT  B I R T H ,  T H E N 
BY  A G E  %#  T H E Y W I L L H AV E H A D %#  Y E A R S O F 
GR O W TH  P OTENTIAL  IF  CONTRIBUTIONS  ARE 
MADE  RE GULARLY.  THIS  SHOULD  HELP  BUILD 
SIGNIFIC ANT  C APITAL  WHICH  C AN  THEN  BE  U SED 
A S  D E S I R E D  O N C E  M AT U R E  E N O U G H  TO  D O  S O. 
MAKE SURE YOUR RETIREMENT STRATEGY MEETS YOUR NEEDS AND GOALS
It’s important to make a well-informed decision when it comes to deciding 
what to do with your pension pot: drawdown, annuity or a combination of 
both. Making the right choice will affect your retirement for many years. 
Drawdown gives you freedom and 
!lexibility, allowing you to choose your annual 
income, whereas annuities provide steady 
income and security. For those who want 
both, they can purchase an annuity with part 
of their pension whilst keeping the rest in a 
drawdown agreement – giving them the best 
of both worlds.
The decision of whether to use drawdown or 
annuities can be a complex one, and professional 
advice is essential. Depending on your 
circumstances, either option may be suitable, 
with some preferring the security of knowing 
their income will remain stable for life, while 
others !ind the greater !lexibility of drawdown 
more conducive to their retirement plans.
ANNUITIES
Annuities provide guaranteed lifetime income, 
but they also carry risk; if you die shortly after 
taking out an annuity it means that you won’t 
bene!it from the full value that you paid for 
upfront. This can make them unsuitable for 
those with shorter life expectancies compared 
to those who are expected to live longer. The 
current rates available on annuities may be 
attractive when compared to those in the recent 
past, and this can be an incentive for those 
previously deterred by low returns.
The bene!its of an annuity include long-term 
security, since the income is guaranteed for 
life and cannot be a#ected by !luctuations in 
investment returns or other market factors. Plus, 
some policies guarantee indexation which means 
that the pension will rise with in!lation over time. 
This helps to ensure that retirees have su"icient 
funds to maintain their lifestyle going forward. 
However, there are also downsides to consider 
when deciding whether an annuity is right 
for you. Annuity rates tend to be lower when 
interest rates fall, so you may get less than you 
had hoped for when taking your pension. Plus, 
the income is !ixed and cannot be adjusted, so 
if your circumstances change in retirement and 
you require more funds it may not be possible to 
increase the amount you are receiving. 
Ultimately, professional advice should always 
be sought with an annuity purchase as there can 
be a number of factors that need to be taken 
into consideration before making a decision. It 
is important to fully understand the terms of 
the policy and make sure that it is suitable for 
your individual situation before committing to 
anything long-term.
DRAWDOWN
In contrast to annuities, drawdown can provide 
more !lexibility and control over how your 
money is managed in retirement. Drawdown 
is an increasingly popular option for retirees to 
receive an income during their retirement. This 
method of taking an income allows individuals to 
access their pension fund in a tax-e"icient way, as 
withdrawals are only taxable when they exceed 
the Personal Allowance 
The main advantage of drawdown for retirees 
is that it o#ers more !lexibility than other options 
such as annuities or lump sum payments. 
Retirees can take out whatever amount they 
require, when they need it, and don’t have to 
commit to !ixed payments over time, allowing 
them the freedom to make their own decisions 
on how they wish to use their pension savings. 
Another bene!it is that any money left in the 
drawdown pot will not be liable for Inheritance 
Tax. This is bene!icial for those who wish to leave 
a legacy for their bene!iciaries, as the remaining 
investment can pass directly to them without 
being taxed. 
On the other hand, choosing drawdown does 
come with some risks. Retirees should consider 
that markets can potentially be volatile and there 
may be no guaranteed income from investments. 
Withdrawing too much capital can also leave you 
exposed should you live longer than anticipated.
It’s important that individuals have an 
understanding of how they plan to invest their 
DRAWDOWN, 
ANNUITIES OR BOTH?
28  RETIREMENT
pension savings and how any losses or gains 
might a#ect them in future years. Additionally, if 
retirees take too much out of their drawdown pot 
then they could face hefty tax bills.  
Overall, it’s important that professional advice 
is taken before deciding upon a retirement 
strategy. While drawdown can o#er more 
!lexibility than other options, it’s important to 
weigh up all the pros and cons before making 
a decision. Ultimately, the right strategy should 
be tailored to the individual’s needs and 
circumstances. 
COMBINATION OF DRAWDOWN AND 
ANNUITIES
For some people, a combination of drawdown 
and annuities may provide the best balance 
between security of income and control over 
withdrawals – we can help to determine which 
option is most suitable for you. Ultimately, it’s 
important to understand all aspects of both 
drawdown and annuities, including the pros and 
cons of each, before making a decision. 
Making sound !inancial decisions requires due 
diligence and taking into account all relevant 
factors so that your retirement goals are met 
in the most e"icient way possible. Therefore 
it is important to consider both drawdown 
and annuities when planning for retirement, 
and professional advice is key to making an 
informed decision. With the right knowledge and 
professional advice, you will be able to make a 
decision as to which option is most suitable for 
your particular circumstances.  
By taking into account all relevant factors, you 
can make sure your retirement strategy meets 
your needs and goals. 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.
THE VALUE OF YOUR INVESTMENTS CAN 
GO DOWN AS WELL AS UP AND YOU MAY GET 
BACK LESS THAN YOU INVESTED.
FOR ISA’S INVESTORS DO NOT PAY ANY 
PERSONAL TAX ON INCOME OR GAINS BUT 
ISAS DO PAY UNRECOVERABLE TAX ON 
INCOME FROM STOCKS AND SHARES RECEIVED 
BY THE ISA MANAGER . TAX TREATMENT VARIES 
ACCORDING TO INDIVIDUAL CIRCUMSTANCES 
AND IS SUBJECT TO CHANGE.
RETIREMENT 29
ARE YOU CONFIDENT OF  
MAINTAINING A GOOD STANDARD  
OF LIVING IN RETIREMENT?
As we all live longer and enjoy unprecedented 
freedom to decide our own retirement options, 
it has never been more important to have 
clarity over what you want to do and how much 
money you’ll need to achieve that. 
Through our retirement !inancial planning 
services, we can help you position your !inances 
so that you are con!ident of maintaining a 
good standard of living and have the income 
to realise your life goals, whatever they may be. 
For more information, please contact us.
///  I T ’ S  I M P O R TA N T  T H AT 
INDIVIDU AL S  HAVE  AN 
UNDERS TANDING  OF  HO W 
THEY  PLAN  TO  INVE S T 
THEIR  PENSION  S AVINGS 
AND  HO W  ANY  LOS SE S  OR 
GAINS  MIGHT  AFFE C T  THEM 
I N  F U T U R E  Y E A R S . 
Published by Goldmine Media Limited
Basepoint Innovation Centre, 110 Butter!ield, Great Marlings, Luton, Bedfordshire LU2 8DL
Articles are copyright protected by Goldmine Media Limited 2023. Unauthorised duplication or distribution is strictly forbidden.
YOUR WEALTH. YOUR LEGACY
It goes without saying that there’s no time like the present to kick-start your 
retirement planning. The earlier you start, the better. You’ll then be able to set 
about realistic goal setting and, importantly, diversification of your investments. 
Working hard to save for your retirement is an important endeavour.
Maximising your annual pension allowance 
is key to achieving a more tax-e"icient retirement 
income. The current annual allowance allows 
you to contribute up to £40,000 a year or your 
annual income (tax year 2022/23), whichever is 
lower, to your pension and still bene!it from full 
tax relief at your marginal rate of Income Tax.
ANNUAL SELF!ASSESSMENT 
For example, if you are a basic rate taxpayer and 
contribute £100 (gross) into your pension, it will 
only cost you £80 (net). Your pension provider 
will claim the di#erence as tax relief – 20% basic 
rate tax relief – and add it to your pension pot. 
If you’re paying higher rates then you can also 
claim higher rate tax relief by completing the 
annual self-assessment form.
Planning ahead for the year is key when it comes 
to retirement and avoiding the emergency tax trap. If 
you take several large sums from your pension over 
a few months, this could push you into a higher rate 
tax bracket and subject you to emergency tax as HM 
Revenue & Customs may assume you’re planning 
on taking this income every month.
STAY WITHIN TAX THRESHOLDS
Rather than taking lump sums, it may be more 
appropriate to spread out the amount from your 
pension over the next few months or years in 
order to maintain a clear plan and ensure that 
you are paying the correct amount of tax. This 
way, you can enjoy the money from your pension 
without any surprise taxes down the line.
When it comes to retirement, withdrawing what 
you need is essential in order to stay within tax 
thresholds. The bene!it of pension drawdown  
means that you can vary your retirement 
 income from year to year, keeping it  
within an acceptable threshold. 
MISSING VALUABLE ENTITLEMENTS
Additionally, it’s worth thinking about other 
assets you have available. For example, if you 
have su"icient savings in your Individual Savings 
Account (ISA) then this can be withdrawn as tax-
free income without a#ecting your tax bracket. 
Utilising both pensions and ISAs together can be 
very useful during retirement.
It’s important to understand your pension and 
the 25% tax-free cash that you may be eligible 
for. Some pension savers with older company 
pension schemes may have more protected 
cash available than the headline rate, yet many 
of them often forget they are eligible for these 
bene!its. Don’t assume that your pension has the 
same bene!its as others – an adviser can help 
you clarify your situation and make sure you 
aren’t missing out on valuable entitlements.
RIGHT CHOICE FOR YOU
Additionally, you need to be aware of your pension 
Lifetime Allowance, currently set at £1,073,100 for 
the 2022/23 tax year. You can save more than this 
into a pension, but you may be charged additional 
tax. The amount of tax you pay depends on how 
you draw the money out and can result in 55% 
extra tax if you take it as a lump sum or 25% plus 
Income Tax when taken as an income.
Taking bene!its from a de!ined bene!it pension 
scheme before age 65 may also be subject to 
an additional cost, but it could still be the right 
choice for you. You will receive a lower pension, 
but for a longer period. This could potentially 
put you in a lower tax bracket or bring bene!its 
below the lifetime allowance. Before making this 
decision, weigh up what other savings you have 
access to, such as ISAs and investments. 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.
RETIREMENT PLANNING
HOW WILL YOU AFFORD THE  
STANDARD OF RETIREMENT  
YOU WANT?
By maximising your annual pension allowance, 
you could increase your salary and enjoy a 
more comfortable retirement in the future. If 
you would like to discuss your options we can 
provide a plan to ensure your drawdown strategy 
is conducted in a tax-e"icient way. Please contact 
us to !ind out more.
30  RETIREMENT