PRESERVING WEALTH FOR FUTURE GENERATIONS Starting estate planning early and implementing it in stages is desirable MONEY AND DIVORCE Untangling your finances and navigating the financial aspects of divorce PENSION DRAWDOWN Greater flexibility in accessing your pension funds INVESTMENT BONDS HOW BONDS’ STRUCTURE AND TAX ADVANTAGES CAN HELP YOU PASS ON WEALTH SEPTEMBER / OCTOBER 2023 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. SEPTEMBER / OCTOBER 2023 The content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results. The Financial Conduct Authority does not regulate tax advice, Inheritance Tax planning, estate planning, or Will writing. C O N T E N T S 04 KEY TRAITS FOR SUCCESSFUL WEALTH-BUILDING Developing an investment strategy tailored to your goals 05 PRESERVING WEALTH FOR FUTURE GENERATIONS Starting estate planning early and implementing it in stages is desirable 06 WILL YOU MAKE THE RIGHT DECISIONS AROUND YOUR PENSION POT? :K\GHƓQHGFRQWULEXWLRQ pensions are even more appealing IRUZHDOWKWUDQVIHU 07 BUILDING A RELIABLE INCOME STREAM FOR YOUR GOLDEN YEARS 0DNHVXUH\RXPD[LPLVH\RXUUHWLUHPHQW LQFRPHWKURXJKDQQXLW\VKRSSLQJ 08 INVESTMENT BONDS +RZERQGVōVWUXFWXUHDQGWD[ DGYDQWDJHVFDQKHOS\RXSDVV RQZHDOWK 10 MISSING OUT ON UNCLAIMED MONEY THAT COULD BE IN YOUR POCKET? eELOOLRQSHQVLRQWD[UHOLHI XQFODLPHGE\SHQVLRQVDYHUVRYHU DƓYH\HDUSHULRG 12 SAVING FOR THE NEXT GENERATION 7DNLQJSURDFWLYHVWHSVLQ VHFXULQJ\RXUFKLOGōVRUJUDQGFKLOGōV ƓQDQFLDOIXWXUH 13 MONEY AND DIVORCE 8QWDQJOLQJ\RXUƓQDQFHVDQG QDYLJDWLQJWKHƓQDQFLDODVSHFWV RIGLYRUFH 08 Welcome to our latest edition.,QWKLVLVVXHZHORRN DWLQYHVWPHQWERQGVDQGH[SODLQKRZWKH\RIIHUVHYHUDO EHQHƓWVWKDWVRPHLQYHVWRUVPD\EHPLVVLQJRXWRQZKLFK KDYHEHFRPHHYHQPRUHEHQHƓFLDOGXHWRUHFHQWFKDQJHV LQWD[UHJXODWLRQV7KLVIROORZVODVW1RYHPEHUōV%XGJHWDQG WKH&KDQFHOORUōVGHFLVLRQWRUHGXFHWKH&DSLWDO*DLQV7D[ &*7$OORZDQFHIURPeWReWKLV\HDUDQGWR eLQ$SULO7KLVLVOLNHO\WRLQFUHDVHWKHDSSHDO RILQYHVWPHQWERQGVIRUVRPHLQYHVWRUVZKRZDQWWR PLQLPLVH,QKHULWDQFH7D[,+7OLDELOLWLHVZKHQSDVVLQJRQ ZHDOWK5HDGWKHIXOODUWLFOHRQSDJH 7KH8.7UHDVXU\KDVEHHQUHFHLYLQJUHFRUGEUHDNLQJ ,QKHULWDQFH7D[,+7UHFHLSWV,+7UHFHLSWVDPRXQWHGWR DSSUR[LPDWHO\eELOOLRQ%ULWLVKSRXQGVLQ FRPSDUHGZLWKeELOOLRQLQWKHSUHYLRXVƓQDQFLDO\HDU DFFRUGLQJWR6WDWLVWD2QSDJHZHFRQVLGHUZK\,+7 FDQEHHPRWLRQDOO\FKDOOHQJLQJIRULQGLYLGXDOVDQGIDPLOLHV ZKRKDYHWRSD\LWRIWHQUHTXLULQJWKHVDOHRIFKHULVKHG IDPLO\DVVHWVWRVHWWOHWKHWD[ELOO7KDWōVZK\VWDUWLQJHVWDWH planning early and implementing it in stages is essential. 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It involves FRPSUHKHQVLYHO\HYDOXDWLQJ\RXUFXUUHQWDQGIXWXUHƓQDQFLDO state regularly to formulate and evolve a plan to help meet your ƓQDQFLDOJRDOV3OHDVHJHWLQWRXFKZLWKXVIRUPRUHLQIRUPDWLRQ DERXWKRZZHFDQKHOS\RXYLVXDOLVH\RXUƓQDQFLDOIXWXUH C O N T E N T S 14 COST OF CARE IN LATER LIFE &KRRVLQJWKHEHVWRSWLRQIRU\RXUVHOI or your loved ones 16 RETIREMENT CASH FLOW MODELLING $VVHVVLQJ\RXUFXUUHQWDQGSURMHFWHG ZHDOWKLQFRPHDQGH[SHQVHV 18 PREPARING THE NEXT GENERATION TO ENGAGE WITH THEIR FINANCES +RZWRKHOSZLWKPRQH\PDQDJHPHQW DQGƓQDQFLDOOLWHUDF\ 19 HOW TO REDUCE THE IMPACT OF INFLATION ON RETIREMENT INCOME 'XULQJSHULRGVRIHFRQRPLFXQFHUWDLQW\LWōV advisable to reassess your retirement plan 20 MACRO TRENDS IMPACTING WEDDINGS IN 2023 0DLQSUHVVXUHVDUHULVLQJFRVWVDQG XQH[SHFWHGH[SHQVHVIURPVXSSOLHUV 22 DO OUR LATER LIFE DREAMS REALLY BECOME RETIREMENT REALITY? 7DNLQJWKHQHFHVVDU\VWHSVWRZDUGVD IXOƓOOLQJUHWLUHPHQW 23 GAP IN KNOWLEDGE AND UPTAKE OF POWER OF ATTORNEY 3URWHFWLQJLQGLYLGXDOVDQGIDFLOLWDWLQJ VPRRWKHUGHFLVLRQPDNLQJSURFHVVHV 24 RETIREMENT CHALLENGES FACED BY WOMEN 1HDUO\KDOIRIZRPHQDJHGSODQWR FRQWLQXHZRUNLQJLQVRPHFDSDFLW\DIWHU UHDFKLQJWKH6WDWH3HQVLRQDJH 26 MILLIONS MAY HAVE TO RETHINK THEIR RETIREMENT PLANS More than one in ten have mortgage GHEWLQWKHƓQDOGHFDGHEHIRUHWKH\UHWLUH 27 HOW MUCH WILL I NEED TO LIVE ON IN RETIREMENT? 3ODQQLQJIRU\RXUOLIHDIWHUZRUNWRHQVXUH DƓQDQFLDOO\VHFXUHIXWXUH 28 PROFESSIONAL FINANCIAL ADVICE, WHERE’S THE VALUE? 0DNLQJPRUHLQIRUPHGGHFLVLRQVDERXW PRQH\OHDGVWREHWWHUƓQDQFLDOKHDOWK in the long run 29 HOW TO FIND OR TRACE A LOST PENSION 7RWDOYDOXHRIORVWSHQVLRQSRWV eELOOLRQLQ 30 PENSION DRAWDOWN *UHDWHUŴH[LELOLW\LQDFFHVVLQJ \RXUSHQVLRQIXQGV 12 14 16 23 27 DEVELOPING AN INVESTMENT STRATEGY TAILORED TO YOUR GOALS &RPPLWWLQJWRDƓQDQFLDOSODQLVFUXFLDOIRUEXLOGLQJZHDOWKDQGDFKLHYLQJORQJWHUPƓQDQFLDO goals. 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W Source data: [1] Opinium conducted research for Standard Life among 8.DGXOWVDJHGEHWZHHQŊ0D\5HVXOWV KDYHEHHQZHLJKWHGWREHQDWLRQDOO\UHSUHVHQWDWLYH A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY $&&(66,%/(817,/$*()520$35,/81/(66 THE PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. WILL YOU MAKE THE RIGHT DECISIONS AROUND YOUR PENSION POT? RETIREMENT DO YOU WANT TO DISCUSS CREATING A RETIREMENT PLAN TO GIVE YOU THE CONFIDENCE TO ENJOY LATER LIFE? Retirement should be the golden age of your life. It’s ZKHQ\RXƓQDOO\UHOD[HQMR\QHZKREELHVWUDYHORU VSHQGWLPHZLWKORYHGRQHV%XWUHWLUHPHQWFDQRQO\ EHIXOO\HQMR\HGLI\RXKDYHƓQDQFLDOIUHHGRP7R GLVFXVV\RXURSWLRQVRUWRƓQGRXWPRUHSOHDVHJHWLQ WRXFKZLWKXV 06 RETIREMENT MAKE SURE YOU MAXIMISE YOUR RETIREMENT INCOME THROUGH ANNUITY SHOPPING :KHQLWFRPHVWRXVLQJ\RXUSHQVLRQSRWbuying an annuity is one option that provides a UHJXODUDQGJXDUDQWHHGUHWLUHPHQWLQFRPHIRUHLWKHU\RXUOLIHWLPHRUDƓ[HGWHUP+RZHYHULWōV important to note that purchasing an annuity is typically an irreversible decision. Do you knowWKDWVKRSSLQJDURXQGIRUDQ DQQXLW\FRXOGHDUQ\RXePRUHRYHU your retirement?[1]5HFHQWDQDO\VLVKDVVKHG OLJKWRQWKHEHQHƓWVRIH[SORULQJ\RXURSWLRQV UHJDUGLQJDQQXLWLHV7KHUHIRUHLWEHFRPHV FUXFLDOWRFDUHIXOO\FRQVLGHU\RXURSWLRQV VHOHFWWKHDSSURSULDWHW\SHRIDQQXLW\DQG VWULYHWRVHFXUHWKHEHVWSRVVLEOHGHDO VALUABLE TOOL FOR RETIREMENT PLANNING $QQXLWLHVDUHDYDOXDEOHWRROIRUUHWLUHPHQW SODQQLQJDVWKH\RIIHUDUHOLDEOHDQG SUHGLFWDEOHLQFRPHVWUHDPRIWHQODFNLQJLQ RWKHULQYHVWPHQWRSWLRQV)XUWKHUPRUHFHUWDLQ DQQXLWLHVFDQEHOLQNHGWRLQŴDWLRQUDWHV SURYLGLQJVWDELOLW\GXULQJSHULRGVRIHFRQRPLF YRODWLOLW\7KLVPDNHVDQQXLWLHVDWWUDFWLYHIRU individuals prioritising risk aversion in their pension savings strategy. 7KHSULPDU\GLIIHUHQFHEHWZHHQDQQXLWLHV DQGSHQVLRQGUDZGRZQSURGXFWVLVWKDW DQQXLWLHVUHTXLUHXVLQJWKHHQWLUHSHQVLRQ SRWWRSXUFKDVHDQLQVXUDQFHSURGXFW WKDWSURYLGHVDƓ[HGUHWLUHPHQWLQFRPH ,QFRQWUDVWSHQVLRQGUDZGRZQSURGXFWV DOORZŴH[LEOHLQFRPHZLWKGUDZDOVZLWKWKH UHPDLQLQJIXQGVLQYHVWHG BALANCE SECURITY AND FLEXIBILITY 8QOLNHSHQVLRQGUDZGRZQDUUDQJHPHQWV DQQXLWLHVGRQRWW\SLFDOO\SDVVGRZQDQ\ UHPDLQLQJIXQGVWREHQHƓFLDULHVDIWHUWKH KROGHUōVGHDWK+RZHYHULWLVSRVVLEOHWR EDODQFHVHFXULW\DQGŴH[LELOLW\E\SDUWLDOO\ FRPELQLQJDQQXLWLHVZLWKSHQVLRQGUDZGRZQ $FFRUGLQJWRWKHDQDO\VLVD\HDUROGZLWK DeSHQVLRQSRWFDQQRZSXUFKDVH DQDQQXLW\ZLWKDQDQQXDOLQFRPHRIe 7KLVUHSUHVHQWVDQLQFUHDVHRIeFRPSDUHG to the previous year. The surge in interest UDWHVKDVUHVXOWHGLQWKHKLJKHVWGHPDQGIRU annuities in years. IMPORTANCE OF SHOPPING AROUND 'DWDIXUWKHUHPSKDVLVHVWKHLPSRUWDQFHRI shopping around. It has revealed that the GLIIHUHQFHEHWZHHQWKHEHVWDQGZRUVWDQQXLW\ UDWHVDYDLODEOHFDQEHVXEVWDQWLDO)RUD \HDUROGZLWKDeSHQVLRQSRWUDWHV FDQGLIIHUE\DVPXFKDVWUDQVODWLQJWR DSRWHQWLDODQQXDOLQFRPHGLIIHUHQFHRIe RUDVWDJJHULQJeRYHUWKHDYHUDJH retirement period. 7KHUHFHQWIRFXVRQDQQXLWLHVFDQEH DWWULEXWHGWRULVLQJLQWHUHVWUDWHVZKLFKKDYHD WDQJLEOHLPSDFWRQWKHLQFRPHRIWKRVHZKR KDYHDOUHDG\SXUFKDVHGDQDQQXLW\+RZHYHU LWLVHVVHQWLDOWRXQGHUVWDQGWKDWZKLOHUHFRUG rates are advantageous, they should be FRQVLGHUHGSDUWRIDEURDGHUGLVFXVVLRQW Source data: [1] Research by Legal & General Retail as of 30/6/23 EDVHGRQDVWDQGDUGOLIHWLPHDQQXLW\ZLWKDUDWHRI IRUDVLQJOHOLIHZLWKDeNSUHPLXP\HDUVROGZLWK D\HDUJXDUDQWHHDQGDOHYHOEHQHƓWSDLGPRQWKO\LQ advance. Legal & General Retail estimates that an average \HDUROGZLWKDVWDQGDUGOHYHORIKHDOWKZLOOKDYHDOLIH expectancy of 90 years. A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY $&&(66,%/(817,/$*()520$35,/81/(66 THE PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. BUILDING A RELIABLE INCOME STREAM FOR YOUR GOLDEN YEARS LOOKING FOR A GUARANTEED INCOME THROUGHOUT YOUR LIFETIME? Annuities continue to be attractive for individuals seeking peace of mind and the assurance of a guaranteed income throughout their lifetime. If you are contemplating an DQQXLW\VSHDNWRXVDQGZHōOOH[SODLQKRZWRDVVHVVDOO your options. As the research suggests, shopping around is crucial in securing the best possible deal for your retirement income. 07 08 INVESTMENT HOW BONDS’ STRUCTURE AND TAX ADVANTAGES CAN HELP YOU PASS ON WEALTH ,QYHVWPHQWERQGVRIIHUVHYHUDOEHQHILWV that some investors may be missing out on, and have become even more beneficial due to recent changes in tax regulations IROORZLQJWKH&KDQFHOORUōVGHFLVLRQ to reduce the Capital Gains Tax (CGT) $OORZDQFHIURPeWReWKLV \HDUDQGWReLQ$SULO MINIMISE INHERITANCE TAX 7KHVHFKDQJHVZLOOOLNHO\DSSHDOWRLQYHVWRUV ZKRZDQWWRPLQLPLVH,QKHULWDQFH7D[,+7 OLDELOLWLHVZKHQSDVVLQJRQZHDOWK7KH,+7QLO UDWHWKUHVKROGKDVUHPDLQHGDWeVLQFH $SULOZLWKQRLQGLFDWLRQVRIIXWXUH LQFUHDVHV$VDUHVXOWPRUHLQGLYLGXDOVDUH FRQVLGHULQJWUXVWVWRNHHSWKHLUPRQH\RXWVLGH their estates. ,QYHVWRUVZKRKDYHDOUHDG\XWLOLVHGWKHLU,6$ DOORZDQFHVDQGRWKHUWD[HIƓFLHQWZUDSSHUVRU WKRVHZKRKDYHUHFHLYHGVXEVWDQWLDOZLQGIDOO SD\PHQWVVXFKDVLQKHULWDQFHVFRXOGEHQHƓW IURPXVLQJLQYHVWPHQWERQGV,QYHVWPHQWERQGV SULPDULO\IDOOLQWRWZRFDWHJRULHVRQVKRUHDQG RIIVKRUH7KHNH\GLIIHUHQFHLVWKHLUWD[WUHDWPHQW ZKLFKFDQVLJQLƓFDQWO\LPSDFWUHWXUQV ONSHORE BONDS 2QVKRUHERQGVDUHVXEMHFWWR8.&RUSRUDWLRQ 7D[+RZHYHUWKLVWD[LVRIIVHWE\\RXU SURYLGHUZKLFKPHDQV\RXDVDQLQYHVWRUGR QRWKDYHWRZRUU\DERXWLWGLUHFWO\:KLOHWKLV PD\VHHPOLNHDQDGYDQWDJHLWōVLPSRUWDQW WRQRWHWKDWWKHWD[FRXOGORZHU\RXUUHWXUQ FRPSDUHGWRDQRIIVKRUHERQG OFFSHORE BONDS 2QWKHRWKHUKDQGRIIVKRUHERQGVDUHLVVXHG IURPRXWVLGHWKH8.7KHUHWXUQVIURPWKHVH ERQGVUROOXSJURVVRIWD[LQWKHIXQGVZLWK WKHH[FHSWLRQRI:LWKKROGLQJ7D[7KLVFDQ SRWHQWLDOO\RIIHUKLJKHUUHWXUQVFRPSDUHGWR onshore bonds, depending on your personal WD[VLWXDWLRQ UNDERSTANDING OF THE TAX RULES 'HVSLWHWKHVHDGYDQWDJHVWKHUHVHDUFK UHYHDOVWKDWRQO\DPLQRULW\RILQYHVWRUVIXOO\ XQGHUVWDQGLQYHVWPHQWERQGV+RZHYHU WKHUHLVSRWHQWLDOLQWHUHVWDPRQJFHUWDLQ GHPRJUDSKLFV)RUH[DPSOHPLOOLRQ RIQRQERQGLQYHVWRUVZRXOGFRQVLGHU LQYHVWLQJLQERQGV7KLVLQWHUHVWLVSDUWLFXODUO\ SUHYDOHQWDPRQJPDVVDIŴXHQWFRQVXPHUV WKRVHZLWKFKLOGUHQDJHGEHWZHHQWR DQGLQGLYLGXDOVZLWKDKRXVHKROGLQFRPHRI £100,000 and above. ,WLVZRUWKQRWLQJWKDWRQO\RI8.DGXOWV FODLPWRKDYHDFOHDUXQGHUVWDQGLQJRIWKHWD[ UXOHVUHJDUGLQJERQGV7KLVODFNRINQRZOHGJH FRXOGKLQGHULQYHVWRUVIURPIXOO\FDSLWDOLVLQJ RQWKHEHQHƓWVRIIHUHG NOT SUBJECT TO CAPITAL GAINS TAX 2QHRIWKHNH\DGYDQWDJHVRILQYHVWPHQW ERQGVLVWKDWWKH\DUHQRWVXEMHFWWR&*7 Onshore bonds are treated as having already SDLGWD[RQDQ\JDLQVZKHQFDOFXODWLQJ DFKDUJHDEOHJDLQ,QUHDOLW\WKHDFWXDOWD[ INVESTMENT BONDS 09 INVESTMENT GHGXFWHGLVOLNHO\WREHOHVVWKDQWKLVDPRXQW ,QDGGLWLRQLQYHVWPHQWERQGVFDQEH EHQHƓ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ƓFDQWO\UHGXFHDQ\WD[OLDELOLW\ZKLFK FDQEHDGYDQWDJHRXVIRULQGLYLGXDOVLQWKH DFFXPXODWLRQSKDVHDQGWKRVHSUHSDULQJIRU UHWLUHPHQW)RUH[DPSOHVRPHRQHPD\EHD KLJKHUUDWHWD[SD\HUZKLOHRZQLQJWKHERQG EXWFDQEHFRPHDEDVLFUDWHWD[SD\HUZKHQ HQFDVKLQJLW MAKE INFORMED INVESTMENT DECISIONS ,QYHVWPHQWERQGVDOVRRIIHURSWLRQVIRU DVVLJQLQJWKHPEHWZHHQVSRXVHV)URPD WD[SHUVSHFWLYHWKHDVVLJQPHQWLVJHQHUDOO\ WUHDWHGDVLIWKHQHZRZQHUKDGDOZD\V RZQHGWKHERQG7KLVFDQEHSDUWLFXODUO\ EHQHƓFLDOLIRQHVSRXVHLVDEDVLFUDWH WD[SD\HUDVWKH\PD\KDYHQRWD[WRSD\ XSRQHQFDVKPHQW Overall, investment bonds present QXPHURXVDGYDQWDJHVLQFOXGLQJWD[EHQHƓWV WKDWLQYHVWRUVVKRXOGFRQVLGHU+RZHYHULW LVFUXFLDOIRULQGLYLGXDOVWRIXOO\XQGHUVWDQG WKHVHEHQHƓWVDQGWKHWD[UXOHVDVVRFLDWHG ZLWKERQGVLQRUGHUWRPDNHLQIRUPHG LQYHVWPHQWGHFLVLRQVW Source data: >@/9 bUHVHDUFKŊ'RQōWIRUJHWWKHEHQHƓWRIERQGVŊ SXEOLVKHG0D\b 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. (67$7(3/$11,1*b,61275(*8/$7('%< THE FINANCIAL CONDUCT AUTHORITY. WANT TO LEARN MORE ABOUT UTILISING BONDS AS PART OF YOUR INVESTMENT PLAN? An investment bond gives you the potential for PHGLXPWRORQJWHUPJURZWKRQ\RXUPRQH\ RYHUILYHWRWHQ\HDUVRUPRUHDORQJZLWKIXQG management expertise. You also get access to DPL[WXUHRIIXQGVZKLFKDUHORRNHGDIWHUE\ professional investment managers. If you’d like to learn more about utilising bonds as part of your investment plan, please get in touch. 2))6+25(%21'6$5(,668(' FROM OUTSIDE THE UK. THE RETURNS FROM THESE BONDS 52//83*52662)7$;,17+( )81'6:,7+7+((;&(37,21 2):,7++2/',1*7$; 10 RETIREMENT £1.3 BILLION PENSION TAX RELIEF UNCLAIMED BY PENSION SAVERS OVER A FIVE-YEAR PERIOD $FFRUGLQJWRUHFHQWUHVHDUFKhigher rate and additional rate taxpayers in the UK leave millions of pounds of pension tax relief unclaimed yearly[1]. This amounts to a VWDJJHULQJWRWDORIeELOOLRQRYHUDƓYH\HDU period. This unclaimed money could be in your pocket instead. Pension tax relief is a government LQFHQWLYHWRHQFRXUDJHLQGLYLGXDOVWRVDYH IRUUHWLUHPHQW,WERRVWV\RXUSHQVLRQ FRQWULEXWLRQVEDVHGRQ\RXULQFRPHOHYHO WKHDPRXQWZKLFKLVEHLQJFRQWULEXWHGDQG WKHW\SHRISHQVLRQVFKHPH\RXKDYH7KH WZRPDLQPHWKRGVRIUHFHLYLQJWD[UHOLHIDUH UHOLHIDWVRXUFHDQGQHWSD\ BOOST YOUR RETIREMENT SAVINGS 8QGHUVWDQGLQJKRZSHQVLRQWD[ UHOLHIZRUNVLVLPSRUWDQWDQGVHHNLQJ SURIHVVLRQDOƓQDQFLDODGYLFHHQVXUHV \RXFODLPHYHU\WKLQJ\RXōUHHQWLWOHGWR 'HSHQGLQJRQ\RXUWD[EUDFNHW\RXPD\ EHHOLJLEOHIRURUHYHQWD[ UHOLHIRQ\RXUSHQVLRQFRQWULEXWLRQV7DNLQJ DGYDQWDJHRIWKLVUHOLHIFDQVLJQLƓFDQWO\ boost your retirement savings. ,I\RXDUHDKLJKHUUDWHRUDGGLWLRQDO UDWHWD[SD\HUUHYLHZLQJ\RXUSHQVLRQ FRQWULEXWLRQVDQGHQVXULQJ\RXPD[LPLVH \RXUWD[UHOLHIEHQHƓWVLVHVVHQWLDO'RLQJVR FDQVHFXUHDPRUHFRPIRUWDEOHUHWLUHPHQW DQGPDNHWKHPRVWRIWKHPRQH\WKDW VKRXOGULJKWIXOO\EH\RXUV,WōVLPSRUWDQW WRQRWHWKDWLQFRPHUDWHVYDU\LQGLIIHUHQW SDUWVRIWKH8.VRWKHVSHFLƓFUXOHVPD\ GLIIHUGHSHQGLQJRQZKHUH\RXOLYH TAX BENEFITS UPFRONT 7KHPDLQUHDVRQZK\eELOOLRQLVOHIW XQFODLPHGLQWD[UHOLHILVWKDWKLJKHUUDWH DQGDGGLWLRQDOUDWHWD[SD\HUVRIWHQQHHG WRFODLPWKHDGGLWLRQDOWD[UHOLHIPDQXDOO\ 7KHSURFHVVFDQYDU\GHSHQGLQJRQWKH W\SHRISHQVLRQSODQRUWKHVHWXSRI\RXU HPSOR\HUōVSHQVLRQVFKHPH ,I\RXōUHLQDŌQHWSD\ōDUUDQJHPHQW\RXōOO DXWRPDWLFDOO\UHFHLYHWD[UHOLHIEHFDXVH\RXU SHQVLRQSD\PHQWLVGHGXFWHGIURP\RXU VDODU\EHIRUHWD[HVDUHDSSOLHG7KLVPHDQV \RXUHFHLYHWKHWD[EHQHƓWVXSIURQW UNCLAIMED TAX RELIEF 2QWKHRWKHUKDQGLI\RXōUHLQDŌUHOLHIDWVRXUFHō DUUDQJHPHQWVXFKDVDSHUVRQDOSHQVLRQSODQ RUVRPHZRUNSODFHSHQVLRQSODQV\RXUSHQVLRQ SD\PHQWLVGHGXFWHGIURP\RXUVDODU\DIWHU WD[HV,QWKLVFDVH\RXUSHQVLRQSURYLGHUZLOODGG EDVLFUDWHWD[UHOLHIWR\RXUSD\PHQWDQG FODLPLWEDFNIURPWKHJRYHUQPHQW +RZHYHUDQ\KLJKHUUDWHRUDGGLWLRQDO UDWHUHOLHIPXVWEHFODLPHGE\\RXGLUHFWO\ IURPWKHJRYHUQPHQW7KHUHLVVRPXFK XQFODLPHGWD[UHOLHIEHFDXVHPDQ\KLJKHU DQGDGGLWLRQDOUDWHWD[SD\HUVDUHXQDZDUH WKH\QHHGWRFODLPWKHH[WUDRUWD[ UHOLHIRQWRSRIWKHEDVLFUDWHUHOLHI MISSING OUT ON UNCLAIMED MONEY THAT COULD BE IN YOUR POCKET? 11 THERE ARE SEVERAL OPTIONS TO CLAIM BACK TAX RELIEF IF YOU’RE A HIGHER OR ADDITIONAL RATE TAXPAYER. HERE’S WHAT YOU NEED TO KNOW: Determine your pension arrangement: )LUVWO\ƓQGLQJRXWZKDWNLQGRIDUUDQJHPHQW \RXōUHDSDUWRILVLPSRUWDQW<RXGRQōWQHHG WRWDNHDQ\DFWLRQLI\RXōUHLQDQHWSD\ DUUDQJHPHQW+RZHYHULI\RXōUHSDUWRIDUHOLHI DWVRXUFHDUUDQJHPHQWIROORZWKHVWHSVEHORZ Complete a self-assessment tax return: 7RFODLPH[WUDWD[UHOLHI\RXFDQFRPSOHWHD VHOIDVVHVVPHQWWD[UHWXUQ7KLVFDQEHGRQH RQOLQHDQGWKHGHDGOLQHIRURQOLQHWD[UHWXUQV LVW\SLFDOO\-DQXDU\HDFK\HDU$OWHUQDWLYHO\ \RXFDQFRQWDFWWKHJRYHUQPHQWGLUHFWO\WR FODLPWKHWD[UHOLHI Be aware of deadlines: ,I\RXFKRRVHWRVXEPLW DSDSHUUHWXUQWKHGHDGOLQHZLOOEHHDUOLHU XVXDOO\2FWREHU,WōVLPSRUWDQWWRNHHSWUDFNRI these deadlines and set reminders to ensure you VXEPLW\RXUFODLPRQWLPH Receive your tax relief: 2QFH\RXKDYH FODLPHGWKHWD[UHOLHI\RXZLOOHLWKHUUHFHLYHLW DVDUHEDWHDWWKHHQGRIWKH\HDURUWKURXJK DQDGMXVWPHQWWR\RXUWD[FRGH7KHVSHFLƓF PHWKRGRIUHFHLYLQJWKHUHOLHIPD\GHSHQG RQ\RXULQGLYLGXDOFLUFXPVWDQFHV $GGLWLRQDOO\VXSSRVH\RXGLGQōWXVH \RXUIXOOSHQVLRQFRQWULEXWLRQDOORZDQFH RYHUWKHSUHYLRXVWKUHHWD[\HDUV<RXFDQ FRPELQHWKLVXQFODLPHGWD[UHOLHIWRPDNH DRQHRIIODUJHSHQVLRQFRQWULEXWLRQ 7RPHHWWKHFULWHULD\RXPXVWKDYH FRQWULEXWHGOHVVWKDQeWR\RXU SHQVLRQODVW\HDULQFOXGLQJWD[UHOLHI EHHQDPHPEHURIDSHQVLRQVFKHPHIRU WKHSDVWWKUHH\HDUVDQG15(QRQUHOHYDQW HDUQLQJVZRXOGQHHGWREHVXIILFLHQWWR FRYHUWKHFRQWULEXWLRQ <RXFDQXVH\RXUXQXVHGDOORZDQFHWR PDNHDODUJHUFRQWULEXWLRQWKLV\HDU7KH DQQXDOSHQVLRQDOORZDQFHXQWLO$SULO ZDVeSHU\HDU7KHDQQXDOSHQVLRQ DOORZDQFHLQFUHDVHGWReLQ-XO\WKLV \HDUIROORZLQJWKH6SULQJEXGJHWFKDQJHVW Source data: >@6WDQGDUG/LIHŊ0LOOLRQVXQFODLPHGSHQVLRQ WD[UHOLHIŊSXEOLVKHG A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY $&&(66,%/(817,/$*()520$35,/81/(66 THE PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. YOUR OWN PERSONAL CIRCUMSTANCES, INCLUDING WHERE YOU LIVE IN THE UK, WILL HAVE AN IMPACT ON THE TAX YOU PAY. LAWS AND TAX RULES MAY CHANGE IN THE FUTURE. RETIREMENT WILL YOUR PLANS REMAIN ON TRACK THROUGHOUT YOUR RETIREMENT JOURNEY? :KDWGR\RXUUHWLUHPHQWSODQVORRNOLNH":HōOOJXLGH you through the various options to ensure your plans remain on track throughout your retirement journey. To ƓQGRXWPRUHFRQWDFWXVŊZHORRNIRUZDUGWRKHDULQJ from you. 81'(567$1',1*+2:3(16,217$; 5(/,():25.6,6,03257$17$1' 6((.,1*352)(66,21$/),1$1&,$/ $'9,&((1685(6<28&/$,0 (9(5<7+,1*<28ō5((17,7/('72 TAKING PROACTIVE STEPS IN SECURING YOUR CHILD’S OR GRANDCHILD’S FINANCIAL FUTURE 0DQ\SDUHQWVDQGJUDQGSDUHQWVVHWDVLGHPRQH\IRUWKHQH[WJHQHUDWLRQWRKHOSZLWKWKHLU ƓQDQFLDOQHHGV7KHULVLQJFRVWRIHGXFDWLRQKRXVLQJDQGOLIHLQJHQHUDOKDVFUHDWHGFRQFHUQV DERXWƓQDQFLDOVWDELOLW\IRUIXWXUHJHQHUDWLRQV Increasingly, parents and grandparentsZDQW WRHQVXUHWKHLUFKLOGUHQDQGJUDQGFKLOGUHQ KDYHWKHƓQDQFLDOUHVRXUFHVWRQDYLJDWH WKHVHFKDOOHQJHVVXFFHVVIXOO\$GGLWLRQDOO\ DJUHDWHUDZDUHQHVVRIWKHLPSRUWDQFHRI ƓQDQFLDOSODQQLQJDQGZHDOWKDFFXPXODWLRQKDV SURPSWHGPDQ\LQGLYLGXDOVWRWDNHSURDFWLYH VWHSVLQVHFXULQJWKHLUFKLOGUHQōVƓQDQFLDOIXWXUHV INVESTING STRATEGICALLY 6WDUWLQJHDUO\DQGLQYHVWLQJVWUDWHJLFDOO\ZLOO HQDEOH\RXWRSURYLGHDVROLGIRXQGDWLRQIRU \RXUFKLOGōVRUJUDQGFKLOGōVHFRQRPLFZHOOEHLQJ 7KHGHVLUHWRJLYHWKHQH[WJHQHUDWLRQDKHDG VWDUWLQOLIHDQGHPSRZHUWKHPWRRYHUFRPHDQ\ ƓQDQFLDOKXUGOHVLVDGULYLQJIRUFHEHKLQGZK\ PDQ\SDUHQWVDQGJUDQGSDUHQWVIRFXVRQVHWWLQJ DVLGHPRQH\IRUFKLOGUHQDQGJUDQGFKLOGUHQ :KHQFRQVLGHULQJWKHWD[LPSOLFDWLRQVDQG KRZWRDUUDQJH\RXUDIIDLUVEHVWWD[HIƓFLHQW VWUXFWXUHVOLNH-XQLRU,6$V-,6$VRUEDUHWUXVWV FDQEHZRUWKH[SORULQJ PASSING ASSETS TO YOUNG PEOPLE $EDUHWUXVWLVFRPPRQO\XVHGWRSDVVDVVHWVWR young people. 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THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE. SAVING FOR THE NEXT GENERATION INVESTMENT READY TO BUILD YOUR CHILD OR GRANDCHILD’S FINANCIAL FUTURE WITH SMART ADVICE? Investing early for your children or grandchildren can give them a significant financial headstart. As the costs of private education, university, getting RQWKHSURSHUW\ODGGHUDQGZHGGLQJVFRQWLQXHWR JURZWRILQGRXWPRUHDERXWLQYHVWLQJIRU\RXU children or grandchildren, please speak to us. 12 UNTANGLING YOUR FINANCES AND NAVIGATING THE FINANCIAL ASPECTS OF DIVORCE 'LYRUFHLVDFRPSOH[SURFHVVWKDWRIWHQFRPHVZLWKYDULRXVƓQDQFLDOFRQVLGHUDWLRQVDQGSUHSDULQJIRUDGLYRUFHLVXQGRXEWHGO\ FKDOOHQJLQJHVSHFLDOO\ZKHQLWLQYROYHVXQWDQJOLQJ\RXUƓQDQFHV7KHHPRWLRQDOVWUDLQFDQPDNHLWGLIƓFXOWWRPDNHFOHDUKHDGHG decisions, and the long-term consequences may not be immediately apparent. 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YOUR OWN PERSONAL CIRCUMSTANCES, INCLUDING WHERE YOU LIVE IN THE UK, WILL HAVE AN IMPACT ON THE TAX YOU PAY. LAWS AND TAX RULES MAY CHANGE IN THE FUTURE. SEEK PROFESSIONAL ADVICE. MONEY AND DIVORCE FINANCIAL PLANNING NEED PROFESSIONAL ADVICE TO TAKE THE FIRST STEP TOWARDS A SECURE FINANCIAL FUTURE? 5HJDUGOHVVRI\RXUVSHFLILFQHHGVZHDUH committed to providing the support and guidance you require during this challenging time. We understand the complexities of divorce and finances and are here to help you make informed decisions. Contact us today to schedule DFRQVXOWDWLRQDQGWDNHWKHILUVWVWHSWRZDUGVD secure financial future. 13 /21*7(50&$5( 14 CHOOSING THE BEST OPTION FOR YOURSELF OR YOUR LOVED ONES 7KHFRVWVRIFDUHLQODWHUOLIH can vary greatly and depend on a multitude of factors. 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COST OF CARE IN LATER LIFE Research available resources: Look into WKHRSWLRQVDQGUHVRXUFHVDYDLODEOHIRU KRPHEDVHGFDUH7KLVPD\LQFOXGHKRPH KHDOWKFDUHDJHQFLHVFRPPXQLW\VXSSRUW VHUYLFHVDQGJRYHUQPHQWSURJUDPPHV 5HVHDUFKWKHW\SHVRIFDUHSURYLGHUVWKHLU TXDOLƓFDWLRQVDQGWKHLUVHUYLFHV Create a care plan: Develop a FRPSUHKHQVLYHFDUHSODQWKDWRXWOLQHVWKH VSHFLƓFVHUYLFHVQHHGHGDQGWKHIUHTXHQF\RI FDUHUHTXLUHG,QFOXGHGHWDLOVRQPHGLFDWLRQ management, therapy, meal preparation DQGRWKHUVSHFLƓFQHHGV&RQVXOWZLWKD KHDOWKFDUHSURIHVVLRQDOVXFKDV\RXU*3RUD FDUHFRRUGLQDWRUWRDVVLVW\RXLQFUHDWLQJDQ HIIHFWLYHSODQ %XGJHWLQJDQGƓQDQFLDOSODQQLQJ 'HWHUPLQHWKHƓQDQFLDOLPSOLFDWLRQVRI KRPHEDVHGFDUH&RQVLGHUWKHFRVWV DVVRFLDWHGZLWKKLULQJFDUHJLYHUVSXUFKDVLQJ PHGLFDOHTXLSPHQWPRGLI\LQJWKHKRPH IRUDFFHVVLELOLW\DQGDQ\RQJRLQJPHGLFDO H[SHQVHV5HYLHZ\RXUƓQDQFLDOVLWXDWLRQDQG H[SORUHRSWLRQVOLNHORQJWHUPFDUHLQVXUDQFH RUYHWHUDQVōEHQHƓWV Seek professional advice:&RQVXOWZLWK DSURIHVVLRQDOƓQDQFLDODGYLVHUZKRFDQ SURYLGHJXLGDQFHRQƓQDQFLDOSODQQLQJ DQGORQJWHUPFDUHRSWLRQV7KH\FDQKHOS \RXXQGHUVWDQGWKHFRVWVH[SORUHSRWHQWLDO IXQGLQJVRXUFHVDQGFUHDWHDVXVWDLQDEOH ƓQDQFLDOSODQ Communicate with family members: 'LVFXVV \RXULQWHQWLRQVDQGSODQVZLWK\RXUIDPLO\RU FORVHIULHQGV,QYROYHWKHPLQWKHGHFLVLRQ PDNLQJSURFHVVDQGHQVXUHHYHU\RQHLVRQ the same page. 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Take action today for a more comfortable IXWXUH7RWHOOXVDERXW\RXUVLWXDWLRQRUIRUDGYLFHGRQōW hesitate to contact us. ,)<28ō5(,1$3$571(56+,3 (;$0,1(<2853(16,216 $1'6$9,1*672*(7+(5 72237,0,6(<285 5(7,5(0(173/$1 RETIREMENT 26 MORE THAN ONE IN TEN HAVE MORTGAGE DEBT IN THE FINAL DECADE BEFORE THEY RETIRE 7ZRWKLUGVRI%ULWRQVDGPLWWRKDYLQJGHEWWKDWLVZHLJKLQJWKHPGRZQDFFRUGLQJWRDUHFHQW study[1]$GGLWLRQDOO\QHDUO\RQHLQWHQDGXOWVLQWKH8.DUHXQVXUHDERXWWKHDPRXQWWKH\RZHLQ RXWVWDQGLQJGHEWVULVLQJWRPRUHWKDQRQHLQVL[DPRQJWKRVHDJHGDQGRYHU Credit or store card debt is the most FRPPRQIRUPRIGHEWDFFRXQWLQJIRU RIUHVSRQGHQWVIROORZHGE\SHUVRQDO ORDQVRYHUGUDIWVDQGXQSDLG KRXVHKROGRUXWLOLW\ELOOV6XUSULVLQJO\ PRUHWKDQRQHLQWHQLQGLYLGXDOVDJHG DQGDERYHKDYHPRUWJDJHGHEWLQWKH ƓQDOGHFDGHEHIRUHUHWLUHPHQW IMPACTING RETIREMENT PLANS AND FINANCIAL SECURITY +DYLQJGHEWFDQVLJQLƓFDQWO\LPSDFW UHWLUHPHQWSODQVDQGƓQDQFLDOVHFXULW\ OHDGLQJWRLQFUHDVHGVWUHVVDQGUHGXFHG LQFRPHLQUHWLUHPHQW7DNLQJSURDFWLYH PHDVXUHVWRUHGXFHGHEWEHIRUHHQWHULQJ UHWLUHPHQWLVHVVHQWLDO7KHVHDFWLRQVLQFOXGH FRQVROLGDWLQJGHEWSD\LQJRIIKLJKLQWHUHVW ORDQVUHGXFLQJXQQHFHVVDU\H[SHQVHVDQG ZRUNLQJZLWKƓQDQFLDODGYLVHUVWRFUHDWHD FRPSUHKHQVLYHUHWLUHPHQWSODQ FUNDS TO COVER UNFORESEEN EXPENSES &RPSDULQJUHVXOWVIURPWR WKHVXUYH\IRXQGWKDWGHEWKDVLQFUHDVHG DPRQJRI\HDUROGV+RZHYHU respondents have also tried to address their GHEWVLWXDWLRQZLWKFXWWLQJEDFNRQQRQ HVVHQWLDOVSHQGLQJZRUNLQJRYHUWLPH RUJHWWLQJDVHFRQGMREDQGVHHNLQJ DGYLFHIURPGHEWVHUYLFHVRUKHOSOLQHV )XUWKHUPRUHXQH[SHFWHGELOOVKDYHSRVHG FKDOOHQJHVIRUPDQ\LQGLYLGXDOVZLWKRI %ULWRQVSD\LQJDQXQH[SHFWHGQHFHVVDU\ELOO RIeRUPRUHLQWKHSDVWPRQWKV:KLOH RI8.DGXOWVFODLPWRKDYHHPHUJHQF\ VDYLQJVRQO\XVHGWKHVHIXQGVWRFRYHU XQIRUHVHHQH[SHQVHV IMPORTANCE OF MANAGING DEBT EFFECTIVELY ,QVWHDGUHOLHGRQFUHGLWFDUGV VRXJKWKHOSIURPIDPLO\RUIULHQGVDQG WRRNRXWORDQVRUXVHGWKHLURYHUGUDIW $GGLWLRQDOO\UHVRUWHGWRSD\GD\ORDQV DQGDQRWKHUFDVKHGLQWKHLUSHQVLRQVWR PDQDJHXQH[SHFWHGFRVWV 7KHVHƓQGLQJVKLJKOLJKWWKHLPSRUWDQFH RIPDQDJLQJGHEWHIIHFWLYHO\DQGSODQQLQJ DKHDGWRHQVXUHDVHFXUHƓQDQFLDOIXWXUHW Source data: >@7KHUHVHDUFKZDVFRQGXFWHGE\&HQVXVZLGHEHWZHHQ Ŋ$SULORIJHQHUDOFRQVXPHUVDJHG QDWLRQDOUHSUHVHQWDWLYHVDPSOH&HQVXVZLGHDELGH by and employ members of the Market Research Society ZKLFKLVEDVHGRQWKH(620$5SULQFLSOHVbb MILLIONS MAY HAVE TO RETHINK THEIR RETIREMENT PLANS LOOKING FOR FINANCIAL ADVICE TAILORED TO YOUR NEEDS AND GOALS? 1DYLJDWLQJWKHZRUOGRIƓQDQFHFDQEHGDXQWLQJZLWK QXPHURXVRSWLRQVDQGGHFLVLRQVWRPDNH7KDWōVZKHUH ZHFRPHLQ:HRIIHUSHUVRQDOLVHGƓQDQFLDOSODQQLQJ and advice tailored to your needs and goals. To learn PRUHDERXWKRZZHFDQKHOS\RXSOHDVHGRQōWKHVLWDWH to contact us. RETIREMENT 27 PLANNING FOR YOUR LIFE AFTER WORK TO ENSURE A FINANCIALLY SECURE FUTURE 5HWLUHPHQWSODQQLQJLVDQLPSRUWDQWVWHSWRHQVXUHDƓQDQFLDOO\VHFXUHIXWXUH:KHQ FDOFXODWLQJKRZPXFK\RXōOOQHHGWROLYHRQLQUHWLUHPHQWWKHUHDUHYDULRXVIDFWRUVWRFRQVLGHU Everyone’s circumstances are different. While the general rule of thumb suggests DLPLQJIRUDURXQGWZRWKLUGVRI\RXUƓQDOVDODU\ DWUHWLUHPHQWDIWHUWD[HVLWōVFUXFLDOWRFRQVLGHU \RXUUHTXLUHPHQWVDQGGHVLUHGOLIHVW\OH6RPH individuals may need more or less depending RQKRXVLQJFRVWVKHDOWKFDUHH[SHQVHVWUDYHO SODQVDQGRWKHUOLIHVW\OHFKRLFHV ,WōVHVVHQWLDOWRDVVHVV\RXUVLWXDWLRQ DQGREWDLQSURIHVVLRQDOƓQDQFLDODGYLFHWR GHWHUPLQHWKHDSSURSULDWHDPRXQWWRIXQG \RXUGHVLUHGUHWLUHPHQWOLIHVW\OH HERE ARE FIVE KEY QUESTIONS TO ASK YOURSELF WHEN PLANNING FOR YOUR RETIREMENT 1. WHAT DOES MY IDEAL RETIREMENT LOOK LIKE? &RQVLGHUZKDW\RXZDQWWRGRLQUHWLUHPHQW DQGKRZ\RXHQYLVLRQVSHQGLQJ\RXUWLPH Whether travelling, pursuing hobbies RUVSHQGLQJWLPHZLWKORYHGRQHV XQGHUVWDQGLQJ\RXUUHWLUHPHQWJRDOVZLOO KHOS\RXSODQDFFRUGLQJO\ 2. HOW MUCH WILL IT COST? (YDOXDWH\RXUH[SHFWHGH[SHQVHVLQUHWLUHPHQW E\FDWHJRULVLQJWKHPLQWRHVVHQWLDOVDQG QRQHVVHQWLDOV(VVHQWLDOVLQFOXGHKRXVLQJ FRVWVXWLOLW\ELOOVLQVXUDQFHDQGHYHU\GD\OLYLQJ H[SHQVHV1RQHVVHQWLDOVPD\LQFOXGHOHLVXUH DFWLYLWLHVWUDYHODQGHQWHUWDLQPHQW 3. WHAT SIZE PENSION DO I NEED? 2QFH\RXHVWLPDWH\RXUUHTXLUHGUHWLUHPHQW LQFRPH\RXPXVWGHWHUPLQHKRZPXFKVDYLQJV \RXōOOQHHGWRJHQHUDWHWKDWLQFRPH7KLV FDOFXODWLRQFRQVLGHUVOLIHH[SHFWDQF\LQYHVWPHQW JURZWKWD[LPSOLFDWLRQVDQGLQŴDWLRQ2EWDLQLQJ SURIHVVLRQDOƓQDQFLDODGYLFHZLOODVVLVW\RXLQ GHWHUPLQLQJWKHDSSURSULDWHSHQVLRQVL]HIRU your retirement goals. 4. ARE MY EXISTING SAVINGS ENOUGH? $VVHVV\RXUFXUUHQWVDYLQJVDQGLQYHVWPHQWVWR GHWHUPLQHZKHWKHUWKH\DUHVXIƓFLHQWWRPHHW \RXUUHWLUHPHQWJRDOV,IWKHUHLVDVKRUWIDOO FRQVLGHUVWUDWHJLHVWRERRVW\RXUSHQVLRQ VDYLQJVVXFKDVLQFUHDVLQJFRQWULEXWLRQVRU H[WHQGLQJ\RXUZRUNLQJ\HDUV$GGLWLRQDOO\ HYDOXDWHRWKHUSRWHQWLDOVRXUFHVRIUHWLUHPHQW LQFRPHVXFKDV,QGLYLGXDO6DYLQJV$FFRXQWV (ISAs) or the State Pension. 5. AM I ENTITLED TO STATE BENEFITS? ,I\RXKDYHPDGH\HDUVRI1DWLRQDO ,QVXUDQFH1,FRQWULEXWLRQVWKURXJKZRUNRU E\FODLPLQJFHUWDLQEHQHƓWV\RXDUHHQWLWOHG WRFODLPD6WDWH3HQVLRQIURPDJH7KHIXOO QHZ6WDWH3HQVLRQLVQRZeDZHHNWD[ \HDU$QGLI\RXUHDFKHGWKH6WDWH 3HQVLRQDJHEHIRUH$SULODQGDUHRQWKH ROGHUEDVLF6WDWH3HQVLRQ\RXZLOOQRZUHFHLYH eWD[\HDUb+RZHYHULWōV important to note that this amount may not be VXIƓFLHQWWRIXQGDFRPIRUWDEOHUHWLUHPHQWDQG PD\IDOOEHORZWKHHVVHQWLDOLQFRPHOHYHOIRU many individuals. W A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY $&&(66,%/(817,/$*()520$35,/81/(66 THE PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. YOUR OWN PERSONAL CIRCUMSTANCES, INCLUDING WHERE YOU LIVE IN THE UK, WILL HAVE AN IMPACT ON THE TAX YOU PAY. LAWS AND TAX RULES MAY CHANGE IN THE FUTURE. HOW MUCH WILL I NEED TO LIVE ON IN RETIREMENT? WANT TO PLAN YOUR RETIREMENT INCOME STEP BY STEP? Retirement planning can be complex. By taking proactive steps and making informed decisions, you FDQZRUNWRZDUGVDƓQDQFLDOO\VHFXUHDQGIXOƓOOLQJ UHWLUHPHQW3OHDVHJHWLQWRXFKZLWKXVWRƓQGRXWKRZ ZHFDQKHOS\RXSXWLQSODFHWKHULJKWUHWLUHPHQWSODQV for your future. FINANCIAL PLANNING 28 MAKING MORE INFORMED DECISIONS ABOUT MONEY LEADS TO BETTER FINANCIAL HEALTH IN THE LONG RUN :HUHDGLO\WUXVWPHGLFDOSURIHVVLRQDOVZLWKRXUKHDOWKDQGOHJDOSURIHVVLRQDOVZLWKFRPSOH[ OHJDOPDWWHUV<HWVRPHSHRSOHKHVLWDWHZKHQVHHNLQJDGYLFHRQƓQDQFLDOPDWWHUV7KLVPLJKWEH DWWULEXWHGWRDIHZGLIIHUHQWIDFWRUV )LUVWO\ƓQDQFHFDQIHHOLQFUHGLEO\SHUVRQDO DQGSULYDWHOHDGLQJWRGLVFRPIRUWDWWKH WKRXJKWRIGLVFXVVLQJLWRSHQO\7KHUHōVDOVR DFRPPRQSHUFHSWLRQWKDWƓQDQFLDODGYLFHLV RQO\IRUWKHZHDOWK\ZKLFKLVQōWQHFHVVDULO\WUXH INFORMED DECISIONS ABOUT OUR MONEY 6HFRQGO\WKHSHUFHLYHGFRVWRIƓQDQFLDO DGYLFHFDQDOVRGHWHUVRPHSHRSOH+RZHYHU FRQVLGHULQJLWDVDQLQYHVWPHQWLQ\RXU ƓQDQFLDOKHDOWKLVHVVHQWLDO7KHLQVLJKWVDQG JXLGDQFH\RXJDLQZLOOKHOS\RXPDNHLQIRUPHG GHFLVLRQVVDYLQJ\RXPRQH\LQWKHORQJUXQ )LQDQFLDOSURIHVVLRQDOVDUHKLJKO\WUDLQHGDQG TXDOLƓHGH[SHUWVOLNHGRFWRUVDQGVROLFLWRUV 7KH\FDQSURYLGHYDOXDEOHLQVLJKWVDQGDGYLFH WDLORUHGWR\RXUXQLTXHFLUFXPVWDQFHVDQG JRDOV%\RYHUFRPLQJDQ\KHVLWDWLRQVLQIRUPHG GHFLVLRQVFDQEHPDGHDERXWRXUPRQH\ SRWHQWLDOO\OHDGLQJWREHWWHUƓQDQFLDOKHDOWKLQ the long run. PROVIDING EMOTIONAL SUPPORT 7KHUHDUHQXPHURXVEHQHƓWVWRVHHNLQJ SURIHVVLRQDOƓQDQFLDODGYLFH7KHVHUDQJH IURPGHYHORSLQJDKROLVWLFSHUVRQDOƓQDQFLDO SODQDQGUHJXODUO\UHYLHZLQJSURJUHVV WRZDUGVƓQDQFLDOJRDOVWRLQYHVWPHQW GLYHUVLƓFDWLRQSURDFWLYHUHWLUHPHQWSODQQLQJ DQGUHEDODQFLQJSRUWIROLRV )LQDQFLDOSURIHVVLRQDOVDOVRZRUNZLWKFOLHQWV WRFUHDWHSHUVRQDOLVHGLQYHVWPHQWSODQVDQGFDQ KHOSLGHQWLI\RSSRUWXQLWLHVWRKHOSJURZZHDOWK They assist in managing money and mapping RXWSODQVIRUWKHIXWXUHLQFOXGLQJUHWLUHPHQW Importantly, they provide emotional support, HVSHFLDOO\GXULQJFKDOOHQJLQJHFRQRPLF FRQGLWLRQVZKLFKFOLHQWVKLJKO\YDOXH FEEL MORE CONFIDENT ABOUT YOUR FINANCES $UHFHQWVWXG\KLJKOLJKWVWKDWSHDFHRIPLQG DQGUHDVVXUDQFHDUHWKHPDLQEHQHƓWVRI VHHNLQJSURIHVVLRQDODGYLFH[1]. This emotional VXSSRUWKHOSVFOLHQWVIHHOPRUHFRQƓGHQWDERXW WKHLUƓQDQFHVSDUWLFXODUO\GXULQJGLIƓFXOWWLPHV VXFKDVWKHFXUUHQWFRVWRIOLYLQJFULVLV 7KHVWXG\DOVRIRXQGWKDWULVLQJFRVWVKDYH IRUFHGPDQ\8.KRXVHKROGVWRƓQGDQH[WUD eDPRQWKRQDYHUDJHFRPSDUHGWRODVW \HDU7KLVKDVFDXVHGVLJQLƓFDQWFRQFHUQZLWK QHDUO\KDOIVD\LQJWKH\ōUHLQFUHGLEO\ DSSUHKHQVLYHDERXWFRVWV EXPERTISE HELPS MITIGATE CONCERNS +RZHYHUWKLVFRQFHUQLVPXFKOHVVSURQRXQFHG DPRQJWKRVHZLWKDFFHVVWRSURIHVVLRQDO ƓQDQFLDODGYLFHZLWKRQO\RIDGYLVHG FOLHQWVH[SUHVVLQJFRQFHUQ *LYHQWKHFXUUHQWƓQDQFLDOFOLPDWHPDUNHGE\ KLJKLQŴDWLRQDQGULVLQJLQWHUHVWUDWHVƓQDQFLDO SURIHVVLRQDOVDUHFUXFLDOLQSURYLGLQJJXLGDQFH DQGUHDVVXUDQFH7KHLUH[SHUWLVHZLOODOVRKHOS PLWLJDWHFRQFHUQVUHODWHGWRLQŴDWLRQPDUNHW YRODWLOLW\DQGWKHLPSDFWRILQWHUHVWUDWHVRQ mortgage payments. W Source data: [1] Surveys by Opinium commissioned by Royal London EHWZHHQ0DUFKZLWKƓQDQFLDODGYLVHUVDQG QDWLRQDOO\UHSUHVHQWDWLYH8.DGXOWVEHWZHHQ February and 6 March 2023. PROFESSIONAL FINANCIAL ADVICE, WHERE’S THE VALUE? READY FOR EXPERT ADVICE TO SECURE YOUR FINANCIAL FUTURE? 6RLI\RXōYHHYHUKHVLWDWHGWRVHHNSURIHVVLRQDOƓQDQFLDO advice, it might be time to reconsider. Remember, the JRDOLVWRVHFXUH\RXUƓQDQFLDOIXWXUHDQGVHHNLQJ advice could be a step in the right direction. For more LQIRUPDWLRQGRQōWKHVLWDWHWRJHWLQWRXFKZLWKXV RETIREMENT 29 TOTAL VALUE OF LOST PENSION POTS £26.6 BILLION IN 2022 7UDFNLQJGRZQDORVWSHQVLRQSRWFDQEHGDXQWLQJHVSHFLDOO\LI\RXōYHVZLWFKHGMREVPXOWLSOH WLPHVWKURXJKRXW\RXUFDUHHU7KHJRRGQHZVLVWKDWUHVRXUFHVDQGVWUDWHJLHVDUHDYDLODEOHWRKHOS simplify the process. According to researchRQHLQVL[ 8.DGXOWVKDYHDWWHPSWHGWRWUDFHRUƓQG DSHQVLRQWKDWKDVEHHQORVWRUIRUJRWWHQ ZLWKRQO\RQHLQWHQPDQDJLQJWRGR VRVXFFHVVIXOO\[1]$PLGVWWKHFXUUHQWFRVWRI OLYLQJFULVLVWKHVHORVWSHQVLRQVFRXOGEHD OLIHOLQHIRUPDQ\IDFLQJƓQDQFLDOKDUGVKLSV THE AVERAGE LOST PENSION TOTAL FOUND WAS £6,351 $PRQJWKRVHZKRKDYHPDQDJHGWRƓQG WKHLUORVWSHQVLRQWKHDYHUDJHWRWDOZDV e0RVWUHVSRQGHQWVGLVFRYHUHG SHQVLRQVZRUWKEHWZHHQeDQGe +RZHYHUQHDUO\RQHLQWHQWUDFHG SHQVLRQVZRUWKRYHUe 'HVSLWHWKHVXEVWDQWLDODPRXQWRI PRQH\DWVWDNHZRUU\LQJO\RQHLQWHQ LQGLYLGXDOVNQRZWKH\KDYHDPLVVLQJSHQVLRQ EXWKDYH\HWWRWU\WRWUDFHLW STARTING THE SEARCH JOURNEY SOONER RATHER THAN LATER 7KHORVWSHQVLRQVFKDOOHQJHLQWKH8.KDV HVFDODWHGVLJQLƓFDQWO\LQUHFHQW\HDUV SDUWLFXODUO\H[DFHUEDWHGE\WKHSDQGHPLF ZKLFKOHGWRPDQ\SHRSOHFKDQJLQJMREV 7KH3HQVLRQ3ROLF\,QVWLWXWHHVWLPDWHV WKHWRWDOYDOXHRIORVWSHQVLRQSRWVDWD VWDJJHULQJeELOOLRQLQ[2]. Given the SRWHQWLDOEHQHƓWVVWDUWLQJWKHVHDUFKMRXUQH\ VRRQHUUDWKHUWKDQODWHULVFUXFLDO HERE ARE SOME TIPS FOR FINDING A LOST PENSION KEEP YOUR INFORMATION UPDATED :LWKWKHLQWURGXFWLRQRIDXWRHQUROPHQW in 2012, around ten million people have VWDUWHGVDYLQJIRUWKHLUIXWXUHVWKURXJK HPSOR\HUVSRQVRUHGSHQVLRQV(DFKQHZMRE SRWHQWLDOO\PHDQVDQHZSHQVLRQVFKHPH 0DNHVXUHWRXSGDWHDOORI\RXUSHQVLRQVZLWK DQ\FKDQJHVRIDGGUHVV RETAIN DETAILS .HHSDUHFRUGRIDOOWKHSHQVLRQVFKHPHV \RXōYHEHHQHQUROOHGLQ USE THE GOVERNMENT’S TRACING SERVICE 7KLVLVDIUHHVHUYLFHGHVLJQHGWRKHOSLI \RXFDQōWƓQGWKHGHWDLOVRIDQROGSHQVLRQ VFKHPH<RXFDQFDOOWKHWUDFLQJVHUYLFHRQ 0800 731 0193. RESEARCH YOUR OPTIONS 2QFH\RXKDYHIRXQGDQ\PLVVLQJSHQVLRQV H[SORUH\RXUQH[WVWHSVLQFOXGLQJFRQVROLGDWLRQ ZKLFKEULQJVWKHPWRJHWKHULQRQHSODFH +RZHYHUEHFDUHIXODVWKHUHPD\EH YDOXDEOHEHQHƓWVDWWDFKHGWR\RXUSHQVLRQV ZKLFK\RXPD\ORVHLI\RXFRQVROLGDWH $OZD\VGRXEOHFKHFNDQGVHHNSURIHVVLRQDO ƓQDQFLDODGYLFHWRHQVXUH\RXPDNHWKH ULJKWGHFLVLRQW Source data: [1] Research conducted by Opinium among 2,001 UK DGXOWVEHWZHHQŊ2FWREHU >@KWWSVZZZSHQVLRQVSROLF\LQVWLWXWHRUJXNVSRQVRU UHVHDUFKUHVHDUFKUHSRUWVEULHƓQJQRWH ORVWSHQVLRQVZKDWVWKHVFDOHDQGLPSDFW 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 $&&(66,%/(817,/$*()520$35,/81/(66 THE PLAN HAS A PROTECTED PENSION AGE). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. HOW TO FIND OR TRACE A LOST PENSION READY TO TRACK DOWN YOUR OLD PENSIONS? Understanding the value of your pension savings is crucial for retirement planning. If you have multiple pensions, it can be challenging to keep track of all of them. For more information about your retirement options, don’t hesitate WRFRQWDFWXVZHōOOH[SODLQKRZZHFDQKHOS GREATER FLEXIBILITY IN ACCESSING YOUR PENSION FUNDS 3HQVLRQGUDZGRZQLVDŴH[LEOHZD\RIWDNLQJLQFRPHIURP\RXUSHQVLRQ introduced after WKHSHQVLRQIUHHGRPUXOHVLQ$SULO%HIRUHWKDWWKHJRYHUQPHQWOLPLWHGKRZPXFKLQFRPH \RXFRXOGWDNHIURP\RXUSHQVLRQXQOHVV\RXKDGRWKHUVRXUFHVRILQFRPHDQGDQQXLWLHVZHUH commonly used to provide a guaranteed income for life. 1RZDGD\V\RXKDYHPRUHŴH[LELOLW\ in DFFHVVLQJ\RXUSHQVLRQIXQGVDOORZLQJ \RXWRWDNHDVPXFKRUDVOLWWOHDV\RXZDQW +RZHYHU\RXPXVWEHDZDUHRISRWHQWLDO WD[FRQVHTXHQFHVLI\RXZLWKGUDZWKHHQWLUH DPRXQWDWRQFH6RPHLQGLYLGXDOVSUHIHU WRLQYHVWWKHLUSHQVLRQIXQGVIRUSRWHQWLDOO\ KLJKHUJURZWKUDWHVUDWKHUWKDQRSWLQJIRU DQQXLWLHVRUDFRPELQDWLRQRIERWKRSWLRQV SPECIFIC TAX IMPLICATIONS TO CONSIDER ,WōVHVVHQWLDOWRVHHNSURIHVVLRQDODGYLFH ZHOOEHIRUHUHWLUHPHQWWRHQVXUHWKDW\RX KDYHDFOHDUXQGHUVWDQGLQJRI\RXULQFRPH UHTXLUHPHQWVDQGKRZPXFK\RXQHHGWR have invested to meet these needs. 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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. YOUR OWN PERSONAL CIRCUMSTANCES, INCLUDING WHERE YOU LIVE IN THE UK, WILL HAVE AN IMPACT ON THE TAX YOU PAY. LAWS AND TAX RULES MAY CHANGE IN THE FUTURE. PENSION DRAWDOWN RETIREMENT Published by Goldmine Media Limited Goldmine Media Limited, 124 City Road, London EC1V 2NX. Articles are copyright protected by Goldmine Media Limited 2023. Unauthorised duplication or distribution is strictly forbidden. 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