Geopolitical tensions and threats of trade tariffs continued to impact global investment markets at the start of 2026. Read on to find out what factors may have affected your investments at the start of 2026.
Remember, that all investments can do down as well as up, and for most investors, investing with a long-term time frame makes sense. Past performance is not a reliable indicator of future performance, and you should consider your long-term goals when reviewing market movements.
On 2 January, the first day of trading in 2026, the FTSE 100 – an index of the largest 100 companies listed on the London Stock Exchange – hit a new high and exceeded 10,000 points for the first time, getting the year off to a good start for investors (The Guardian, 2 January 2026).
On 5 January, headlines about the US’s strike on Venezuela and the capture of the country’s president, Nicolás Maduro, affected markets.
Some investors sought “safe” assets, which led to gold rising by almost 2%, while defence stocks in Europe climbed (BBC, 5 January 2026). In addition, shares in US oil companies jumped, including Chevron (4.4%) and ExxonMobil (2%) (The Gurdian, 5 January 2026).
There was good news from UK retailer Next on 6 January. The company beat expectations over the Christmas period, with sales £51 million higher than anticipated (Yahoo Finance, 6 January 2026). The 2.8% boost in its stock value led to the firm becoming the top riser on the FTSE 100.
The UK’s FTSE 100 wasn’t the only index to perform well at the start of January. The German index DAX hit 25,000 points for the first time on 7 January (The Guardian, 7 January 2026).
However, rising geopolitical tensions between the US and Europe led to European markets opening in the red on 8 January and losses across the Asia-Pacific region earlier in the day (The Guardian, 8 January 2026). The fall occurred following meetings between the US and Denmark about the future of Greenland, over which US President Donald Trump has said he wants control.
News of a potential deal between mining giants Rio Tinto and Glencore sent ripples through the London stock market on 9 January (Reuters, 9 January 2026). Glencore, which would likely be acquired if a deal went through, saw shares increase by 8%. Meanwhile, Rio Tinto, the likely buyer, saw shares fall by 2.6%.
Trade tariffs and threats of them affected markets throughout 2025, and this trend looks set to continue into 2026.
On 13 January, Trump threatened countries doing business with Iran with a 25% tariff as Iranian authorities cracked down on nationwide protests. Among the top export destinations for Iranian goods are China, the UAE, and India.
The following week, Trump announced further plans to impose new 10% trade levies on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland from 1 February, which would rise to 25% on 1 June. The president said the tariffs would remain in place until the countries supported his goal to acquire Greenland.
The news led to markets falling in Europe when they opened, including the UK’s FTSE 100 (-0.48%), France’s CAC (-2.1%), and Germany’s DAX (-1.35%) (The Guardian, 19 January 2026). Among the sectors hit hardest were European car manufacturers, such as Mercedes-Benz (-6%), BMW (-4.8%), and Volkswagen (-3.5%).
In contrast, defence stocks, such as Germany’s Rheinmetall (3%), the UK’s BAE Systems (2%), and Italy’s Leonardo (3%), were up.
After days of uncertainty, Trump pledged not to use force to take control of Greenland on 21 January, and dropped the threat of tariffs, which calmed the markets.
Another market milestone occurred on 28 January. The Wall Street index the S&P 500 exceeded the 7,000 mark for the first time (The Guardian, 28 January 2026). The boost was driven by AI optimism and expectations of strong results from big technology companies.
In the 12 months to December 2025, UK inflation increased to 3.4%, which may affect the Bank of England’s decision on whether to lower interest rates in the coming months (Office for National Statistics, 21 January 2026).
Data from the Office for National Statistics shows the UK economy expanded by 0.3% in November, which was better than economists expected (Office for National Statistics, 15 January 2026). In addition, figures were revised upwards from -0.1% to 0.1% for September.
Insight from S&P Global’s Purchasing Managers’ Index (PMI) was also positive. UK factories grew at their fastest pace in 15 months in December (S&P Global, 23 January 2026). Rob Dobson, director at S&P Global Market Intelligence, said the delivery of the government’s Budget in November had helped to end uncertainty that was affecting businesses.
Data from the European Central Bank shows eurozone inflation dropped to 1.9% in the 12 months to December 2025, just below the bank’s 2% target (European Central Bank, 19 January 2026).
Eurozone GDP data beat forecasts as it increased by 0.3% in the final quarter of 2025 (European Commission, 30 January 2026).
S&P PMI data for the eurozone showed the pace of growth slowed in December, but the bloc still posted its strongest quarterly performance in two and a half years (Reuters, 6 January 2026). The economy has now grown for seven consecutive months, and S&P Global said the overall “picture looks good”.
European Commission president Ursula von der Leyen unveiled a landmark free trade agreement between India and the EU, dubbed the “mother of all deals” (BBC, 27 January 2026). The agreement is expected to double EU exports to India by 2032.
US inflation remained unchanged at 2.7% in the 12 months to December 2025 (CNN Business, 13 January 2026).
Figures released in January 2026 show the US trade deficit shrank in October, thanks to a jump in exports and a fall in imports (Bureau of Economic Analysis, 8 January 2026). According to the US Census Bureau, the deficit fell to $29.4 billion (£21.5 billion). That marks a fall of 39% when compared to a month earlier and is the lowest trade deficit recorded since 2009.
Updated official figures suggest many more jobs were lost in October than were first estimated (The Guardian, 9 January 206). Data now indicates that jobs fell by 173,000, compared to the initial estimate of 105,000. Job losses may suggest a lack of confidence among businesses.
US company Alphabet, the parent company of Google, reached a valuation of $4 trillion (£2.92 trillion) for the first time (Reuters, 12 January 2026). The news followed a report that Apple had chosen Google’s Gemini as the foundation for its AI model in the future, leading to a boost in its share price.
Japanese stocks made their strongest start to a year in several decades.
The Topix index and the Nikkei 225 increased by 3.8% and 4.3%, respectively, during the first two days of trading. According to Bloomberg (6 January 2026), that’s the strongest start to a new year since at least 1990. The rise is linked to a new prime minister, who, it is hoped, will embrace looser fiscal policy to stimulate the economy.
There was also good news for Chinese car company BYD. The firm officially overtook Tesla as the top seller of electric cars in the world (Yahoo Finance, 5 January 2026). In 2025, BYD delivered 2.26 million electric cars, up by 28% when compared to 2024 following aggressive expansion into the European market.
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The new tax year will start on 6 April 2026, and many of your important allowances and exemptions will reset. Checking whether you could use these valuable allowances before the end of the 2025/26 tax year on 5 April 2026 might help your money go further.
Before you make any decisions, ensure that you understand which allowances fit into your financial plan and suit your goals. If you have any questions, please contact us.
Read this guide to discover seven allowances and exemptions you may want to make the most of before the end of the current tax year, including:
Download your copy here: 7 key allowances you might want to use before the end of the 2025/26 tax year
Please get in touch if you’d like to speak to us about your allowances for the 2025/26 tax year and beyond.
Please note: This guide is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this guide. All contents are based on our understanding of HMRC legislation, which is subject to change.
The start of a new year can be the perfect time to check in on your finances, set goals for the year ahead, and create a plan for how to achieve them.
In fact, the Investment Association (6 January 2025) found that 43% of UK adults planned to set financial goals at the start of 2025.
This year, with the tax burden rising, new legislation being introduced, and inflation remaining high, getting a handle on your personal finances could be at the top of your agenda.
Indeed, economic uncertainty in both the UK and across the globe could be a key driver for building financial resilience. In 2025, figures reported by IFA Magazine (13 February 2025) showed that confidence in the UK economy had plummeted among high net worth individuals, falling from 84% since August 2024 to 48%.
Whether you want to boost your retirement savings or pass on wealth to the next generation, this guide reveals five valuable tips to help you manage your finances, build resilience, and grow your wealth in 2026.
Download your copy here: 5 tips to help you manage your wealth in 2026
Please get in touch if you’d like to speak to us about your plans for 2026 and beyond.
Please note: This guide is for general information only and does not constitute advice. The information is aimed at retail clients only.
In the Autumn Budget 2025, the chancellor announced that Inheritance Tax (IHT) thresholds would remain frozen for a further year, until 2031.
Upcoming changes will also see unused pensions included in an estate for IHT purposes for the first time from April 2027.
These measures could see estates facing a larger IHT liability, or coming into the scope of IHT when they may previously have been exempt.
Research has suggested that families concerned about being caught in the IHT net are taking steps to mitigate their bills. According to MoneyAge (6 October 2025), 23% of people are planning to give away money to reduce their IHT bill, with 8% saying they would even give away their home.
While gifting can help to lower your IHT liability, it’s not always a simple or straightforward solution.
Read on to discover five things you need to know before you consider gifting as part of your financial strategy.
The Financial Conduct Authority does not regulate estate planning, tax planning, or trusts.
There are a number of rules surrounding IHT, and having a grasp of them can help you decide whether gifting could be a beneficial option.
The current nil-rate band, the amount you can pass on free from IHT, is set at £325,000 (now frozen until 2031). This means that anything above £325,000 will be taxed at 40%.
However, the residence nil-rate band offers an extra allowance of £175,000 if you leave your main residence to your children or grandchildren (this can include those you’ve adopted or fostered, or stepchildren).
Together, these two thresholds mean that you could have an estate worth £500,000 free from IHT.
In most cases, anything you leave to your spouse or civil partner, even above the threshold, is free from IHT.
You can also transfer your allowances to your spouse or civil partner when you die, or they can do the same for you. This means that, in some cases, a couple could have a £1 million estate they can leave without generating an IHT bill.
Gifting is a popular way to reduce the value of an estate to bring it below these thresholds.
However, it’s not as simple as just giving your money away, and the government has introduced rules to prevent people from simply offloading their wealth to avoid IHT.
1. Gifts aren’t automatically exempt from Inheritance Tax
You can gift up to £3,000 annually free from IHT, and you can also make smaller one-off gifts of up to £250 per person. Gifts of any amount to your spouse or civil partner are also IHT-free.
Gifts above £3,000 are usually known as potentially exempt transfers (PETs), which means they only become fully exempt from IHT after seven years.
In some cases, PETs can be eligible for taper relief over the seven years, with the level of IHT applied dropping incrementally until it reaches 0%.
Remember that taper relief only applies to gifts in excess of the nil-rate band. It follows that, if no tax is payable on the transfer because it does not exceed the nil-rate band (after cumulation), there can be no relief.
Taper relief does not reduce the value transferred; it reduces the tax payable as a consequence of that transfer.
Another option is to make regular gifts, as opposed to lump sums, out of your everyday income. These can be tax-free if they meet three specific criteria.
Talk to us to find out if making any of these gifts could help to lower your IHT liability.
2. Gifting could potentially affect your long-term finances
You need to give careful consideration to how much you’re gifting, so that your generosity doesn’t leave you short in later years.
The rising cost of living means you may need to factor in an increased income to cover your everyday expenditure and household bills.
Health and care costs are another significant later-life consideration. It’s impossible to know if you’ll need care, or to what extent, but care costs in particular can really whittle away your wealth.
According to the UK Care Guide (1 October 2025), the average cost of a live-in home carer ranges from £650 to £1,500 per week, while average care home fees range from £27,000 to £39,000 per year, with costs rising further if you need nursing care.
It’s always a good idea to talk to your financial planner before gifting, to ensure your strategy is robust enough to withstand inflation and potential care costs.
3. There could be challenges associated with gifting certain assets
While gifting your home may seem both extremely generous and a logical way to mitigate IHT, there can be some complications you need to navigate.
If you plan to continue living in your home, this will be considered a “gift with reservation of benefit” and will still count as part of your estate for IHT purposes.
However, if you pay full market rent (not just a nominal amount), this can remove the property from your estate, but you need to be willing and able to make rental payments.
4. Is the gift right for your loved ones?
While gifting is a generous gesture, it’s always worth checking that it won’t backfire. For example, if you gift them your property, as well as the issues outlined earlier, they could face a Capital Gains Tax (CGT) bill if it isn’t their main residence and they sell it.
Doing some due diligence before making any gifts can ensure they’re beneficial for the intended recipient.
5. Could there be a more tax-efficient way to pass on your wealth?
Gifting isn’t always the most tax-efficient way to pass on your wealth, either. In some cases, putting some of your wealth into a trust can be an option to remove it from your estate.
You could also take out a life insurance policy, which is then written in trust. The policy would then pay directly to the trustees, rather than your estate, and can be used to pay an IHT bill.
Trusts can be inflexible and you may not be able to change your mind about any decisions you make. Assets in trust could also be taxable. Trusts are extremely complex, and we’d always urge you to take financial advice before proceeding.
This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change. Tax can change and is based upon individual circumstances.
Love is in the air with Valentine’s Day just around the corner. Amid planning romantic gestures, thinking about combining your financial plan with your partner’s could be valuable.
Talking about finances might seem too practical for a day that’s about celebrating love. Yet, it could support your relationship. Here are two reasons why you might want to create a single financial plan with your partner.
If you’re planning to spend the future with someone, you want to ensure you’re both on the same page about your life goals. A financial plan can help you set out what these goals are and the steps you might take to achieve them.
Mismatched goals could mean you not only miss out on achieving them, but also place pressure on your relationship.
If your priority is saving for retirement while your partner focuses on spending now, it may lead to money arguments because you have conflicting goals. A financial plan can help you have important conversations about what you’re working towards.
According to a MoneyWeek article (26 August 2025), almost three-quarters of savers say they plan to rely on their partner’s pension to help fund retirement.
If these couples haven’t spoken about how they’ll create an income in retirement, they could face a shortfall and potentially financial insecurity later in life.
In contrast, if they’ve spoken about how they’ll combine their pension savings, they could approach the milestone with greater confidence.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Many tax allowances are for individuals. As a result, by planning together, you could reduce your combined tax bill.
For example, interest earned on savings held outside of a tax-efficient wrapper, like an ISA, could be liable for Income Tax. If you’ve used your ISA allowance, which is £20,000 in 2025/26, you could place a portion of your savings into your partner’s ISA to minimise the amount of tax you pay.
Similarly, you could pay into your partner’s pension so the contributions benefit from tax relief, if you’ve already used your own pension annual allowance.
It’s important to keep in mind what would happen if the relationship broke down after you’d placed assets in your partner’s name. You might decide it’s not the right option for you, even if it could reduce your tax bill.
If you’re married or in a civil partnership, planning together could come with other tax benefits as well.
For example, if you or your partner earns below the Personal Allowance (£12,570 in 2025/26), you may be able to transfer some of the unused Personal Allowance amount to reduce the amount of Income Tax you pay as a couple overall.
Additionally, when you’re creating an estate plan, you can pass on assets to your spouse or civil partner without being liable for Inheritance Tax (IHT). Unused IHT allowances can also be passed to your spouse or civil partner to increase the amount they can leave to loved ones before IHT might be due.
Creating a financial plan with your partner could help improve your tax position now and in the future. However, it’s important to note that taxation can be complex, so seeking professional advice can help you understand what steps may be appropriate for you.
The Financial Conduct Authority does not regulate tax planning.
Combining your financial plan with your partner’s doesn’t mean that you have to merge every aspect of your finances. You can create a balance that’s right for you.
Some couples prefer to share all assets, while others are more comfortable if some assets remain theirs. You might even decide to keep hold of all your individual assets and use a financial plan to ensure you’re both working towards the same future.
A financial plan can be tailored to you and adjusted as your goals and relationship change.
Whether you want to combine finances completely or keep some assets separate, we can help you and your partner create a financial plan that suits your relationship. Please contact us to arrange a meeting.
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A third of people don’t know how much they need to contribute to their pensions every year to create a comfortable retirement, according to a MoneyAge article (11 November 2025).
Striking the right balance with pension contributions is important. Contribute too little, and you could leave yourself short in retirement. If you contribute as much as possible to your pension now, you might miss other goals or place pressure on your day-to-day budget.
So, asking “how much should I be paying into my pension each year?” is sensible.
You might have read answers to this question that apply a general rule to everybody, such as a certain percentage of your income or a target amount you should have at a particular age.
However, the reality is that there isn’t a simple answer that can be applied to everyone. A range of factors, from your current age to your desired retirement lifestyle, will affect how much you need in retirement.
Here’s a step-by-step guide on how to calculate what you may want to add to your pension.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
If you’re already contributing to a pension, or have in the past, gather your statements so you can understand your current position. The savings you’ve already made will act as a foundation for your future contributions.
Don’t forget to check for lost pensions. According to Pensions UK (24 October 2024), as much as £31.1 billion is sitting in unclaimed pension pots across the UK. Take some time to check if you’ve got any gaps – you might find a lost pot that could boost your retirement.
In addition to your pension, you may have other assets you plan to use to fund retirement, such as savings or investments held outside a pension, which you may want to include in this step.
When you want to retire will have a direct effect on how much you’ll need to save. If you hope to retire early, keep in mind that you’ll need to create an income for longer, and you may not receive any State Pension until you’ve been retired for some time.
The State Pension Age is 66, rising to 67 by 2028. Meanwhile, you cannot usually access your personal pensions until age 55, rising to 57 in 2028.
To accurately set a pension target, you need to understand what kind of lifestyle you hope to enjoy in retirement. If you’re envisioning plenty of luxury holidays, a new car every few years, and trips with friends, you’ll need to save more than if you’re happy with a more moderate lifestyle.
With a lifestyle set out, you can start to consider how much you’ll need as a regular income to maintain it. Remember to factor in unexpected costs and the effect inflation is likely to have on your cost of living.
With an estimated required annual income, you can work out how much you’ll need in your pension by considering how long you’ll spend in retirement.
It’s wise to look beyond the average life expectancy, as doing so could leave you facing financial difficulty if you live for longer. The Office for National Statistics life expectancy calculator (14 February 2025) suggests a woman aged 65 has an average life expectancy of 88. However, there’s also a 1 in 4 chance she’ll celebrate her 94th birthday.
The good news is you don’t need to contribute the total amount you need to secure your desired lifestyle.
First, your pension contributions benefit from tax relief at your marginal rate of Income Tax.
Assuming you don’t exceed the pension Annual Allowance (£60,000 in 2025/26 or 100% of your annual income, whichever is lower), you’d only need to contribute £80 to increase your pension by £100 as a basic-rate taxpayer. If you’re a higher- or additional-rate taxpayer, the amount you’d need to contribute would fall to £60 and £55 respectively.
Second, your pension is usually invested with the aim of delivering long-term growth.
As you’ll often be investing through a pension for decades, the compounding effect of investment returns can help your pension grow significantly over time.
However, it’s important to note that investment returns cannot be guaranteed and the value of your investments may fluctuate over time.
With all this information, you can work backwards to calculate how much you’d need to add to your pension each year to achieve your desired lifestyle.
Using a cashflow model as part of your financial plan can help you bring all this data together and visualise how your wealth might change. For example, you might model how your pension would grow if you increased your contributions by 2% compared to 4%.
You can also model other scenarios, such as the age you’ll retire and changing your income needs.
Regular pension reviews can help make sure you’re on track. The outcomes of a cashflow model cannot be guaranteed, but it can be useful when you’re trying to answer the question “how much should I contribute to my pension?” and others like it.
The Financial Conduct Authority does not regulate cashflow modelling.
Calculating how much you should contribute to your pension each year is just one part of your retirement plan. You might also need to know how the money will be invested when it’s in your pension, or how to access the savings when you’re ready to create an income.
We can work with you to create a complete retirement plan to prepare for the next chapter of your life.
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
As 2026 begins, it’s a good time to think about what you want to achieve in the coming months. A tailored financial plan can help you set realistic goals.
Creating goals on your own can be challenging, especially if they bring together several different parts of your financial plan or have a long-term time frame. If you’re overly ambitious, it can be disheartening if you don’t reach the target you’ve set. On the other hand, if you’re too cautious, you could miss out on opportunities.
Here are seven ways a financial plan could support your goals in 2026.
A valuable aspect of a financial plan is understanding your current financial position. To assess what’s possible, you first need to know where you are.
A financial plan might involve reviewing your assets and budget so you’re in a better position to identify where changes could be made.
For example, if your goal is to retire in 10 years, you may benefit from increasing your pension contributions. By understanding where your money is going, you might find that you could reduce your day-to-day spending or divert some of your savings to your pension.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
While managing your finances often conjures thoughts of figures and calculations, what’s really at the centre is your goals.
Working with a financial planner can create a space to explore what matters to you. Some goals might already be clearly defined, such as supporting children when they want to get on the property ladder or retiring by a set date.
However, other goals might become apparent through discussions with your financial planner, such as being in a position to overcome a financial shock or achieve peace of mind.
Once your goals are set out, it’s time to consider what you’ll need to achieve them.
If you set a vague goal, such as “retire comfortably”, it can be difficult to assess if you’re on track.
A financial plan can help you get to grips with the numbers. So, your goal might become “to secure a retirement income of £40,000 a year”. You can then take it a step further to calculate what the size of your pension pot will need to be at retirement, and how you might need to alter current contributions.
Most people don’t have just one financial goal. It’s common to have several, often competing, priorities.
You might be paying off your mortgage, saving for retirement, putting money aside for your children, and hoping to go on holiday at the same time. A financial plan can bring together these different goals, so you’re able to strike the right balance between short- and long-term objectives.
One challenge of creating an effective financial plan is that you’ll usually need to consider how your finances will change over decades. It can be difficult to assess how the decisions you make today could have a positive or negative impact in the future.
A cashflow model is a tool that allows you to visualise how your wealth might change in different scenarios. For instance, you might use the model to see how adding different amounts to your investment portfolio each month will change your ability to reach your goals.
The Financial Conduct Authority does not regulate cashflow modelling.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
It’s not just the factors you can control that will affect the outcome of your financial plan. Sometimes, external influences, like the rate of inflation or stock market performance, might have an impact.
While you can’t know for sure what outside factors will occur, you can use a cashflow model to test different scenarios. For example, when investing, you might model several different average annual rates of return to assess what they’d mean for your goals.
This allows you to consider how your finances would cope in different scenarios, and you may be able to take steps to help ensure your goals stay on track.
Every year, thousands of people make and break a new year’s resolution. According to a YouGov poll (17 December 2025), only 38% of people who made resolutions at the start of 2025 had kept all of them.
Working with a financial planner means you’ll have regular meetings and someone who can hold you accountable. With a clear strategy to follow, you’ll know when you’re straying from the path that could turn your goals into reality. As a result, you might be less likely to break the commitments you’ve made.
If your goals have changed or you’d like a review to understand whether you’re on track, please get in touch to arrange a meeting.
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Language is powerful. The words you use to describe different scenarios can change how you perceive events, and the language used for retirement could lead to a pessimistic outlook.
Writing in an article for Saga (21 October 2025), lexicographer Susie Dent explains that in English, “retire” has its roots in a Latin word meaning “to withdraw”. This can conjure images of people withdrawing from the world once they give up work. You might envision retirees staying at home, with the pace of life slowing down.
Yet, for many people, that’s far from their ideal retirement. In other languages, “retirement” has a more optimistic root that could resonate with modern retirees.
Dent notes that in Spain, retirement is “jubilación”, a cousin of “jubilation”. It’s a translation that’s more likely to encapsulate the hopes many workers have as they prepare to retire.
Similarly, in Japan, post-retirement is known as “dai-ni no jinsei”, or “second life”, which encourages people to think of new beginnings rather than endings.
Other languages, including Arabic and Italian, use honorifics for retirees to signal their experience. It’s a small change in language that marks retirement as an achievement, rather than something that’s happened because you’ve aged.
This upbeat language around retirement could embolden retirees to seize the next chapter of their lives. Rather than images of retirees putting their feet up with a newspaper, this language shift could mean you’re more likely to think of retirees pursuing hobbies, keeping active, and visiting new destinations.
Whatever you want your retirement to look like, an optimistic mindset as you near the milestone could help you get more out of your next stage of life.
Dent suggests that English needs a new word for retirement that is “full of the spirit of a second life”. While you wait for the Oxford English Dictionary to reflect modern retirement, there are things you might do to change the narrative and how you think about stepping away from work.
If you want to retire from work but not from life, here are five ways you can make this milestone a celebration that suits you.
1. Focus on the freedom you’re gaining
Rather than seeing retirement as a withdrawal, think about what’s next. Retirement could present you with endless opportunities to fill your time with the things you enjoy doing.
Suddenly having the freedom to use your time as you wish can feel overwhelming. Listing what you’re most looking forward to can help you focus on the positive instead of what you might be losing.
2. Set meaningful goals
For decades, your goals might have focused on work. Perhaps you pursued a promotion or developed a skill that could advance your career. Without these goals, you might feel lost.
The good news is that you can set meaningful goals in retirement.
Some people find that volunteering or mentoring can give their retirement purpose, and they dedicate a certain number of hours a week to this goal. Others take pleasure in building new skills. Perhaps you’ve always wanted to learn woodworking or attend history lectures at your local university; now’s your time to make these goals a priority.
3. Create a social circle
Social connections are essential for wellbeing and are something you might lose when you leave the workplace.
Building a social circle, whether by meeting with family or attending groups to meet new people, could make your retirement happier. Indeed, a Harvard University study has tracked what makes people happy for more than 80 years and highlighted the importance of a social life.
Speaking to Forbes (15 August 2025), Dr Robert Waldinger, director of the Study of Adult Development, notes that close relationships and social connections are crucial for wellbeing as people age. Having supportive and nurturing relationships acts as a buffer against life stresses and protects overall health.
So, the view that retiring means “withdrawing” could be harmful. Instead, a retirement that’s filled with people who share your interests and who you enjoy spending time with could support your wellbeing.
4. Give your days some structure
Spending more time at home without the commitments of work can lead to some people feeling unmotivated or listless. Giving some structure to your days can be valuable and help you get more out of your time.
The structure doesn’t need to be rigid or account for every hour of the day – one of the joys of retirement is the freedom it offers. However, adding regular outings or tasks to your diary can prevent the days from blurring together.
5. Prepare your finances for retirement
Money worries can hold back your retirement plans and mean you’re not able to focus on getting the most out of the next chapter of your life.
A survey carried out by the Financial Conduct Authority (16 May 2025) found that 3.8 million retirees worry they don’t have enough money to last their retirement. In addition, 22% of non-retirees felt unprepared for retirement, and 31% had not thought about how they will manage financially once they stop working.
Preparing your finances before you retire could help you feel confident and embrace everything retirement has to offer. If you’d like to talk about your retirement plan and how to manage your finances, please get in touch.
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
After a year filled with uncertainty and rising trade tensions, markets were calmer in December 2025. Find out what may have affected the performance of your portfolio at the end of the year.
Markets were downbeat at the start of the month. Most European markets were in the red on 1 December, including Germany’s DAX (-1.2%), France’s CAC 40 (-0.55%), and the UK’s FTSE 100 (-0.13%).
The Bank of England (BoE) carried out stress tests on 2 December, which all major banks involved passed. This led to bank stocks rising, including Lloyds (1%), Barclays (0.95%), and HSBC (0.7%).
American technology firm Oracle Corporation missed its revenue forecast and hiked expenditure plans by $15 billion (£11.3 billion). This led to the company’s shares dropping by 15.7% when trading started on 11 December – knocking almost £100 billion off the company’s market capitalisation.
The news dragged down other AI stocks as well, including Nvidia, which became the biggest faller on the Dow Jones Industrial Average index after it tumbled 2.7%.
Despite the concerns about AI, the Dow Jones Industrial Average hit a record high after rising 0.95% on 11 December following news that US interest rates had fallen.
On 17 December, the FTSE 100 was up 1.6% following a bigger-than-expected drop in inflation, leading gains in European markets.
With Christmas nearing, festive optimism swept through London. On 19 December, the FTSE 100 closed at an almost record high, with leading firms including Rolls-Royce (2.7%) and precious metal producers Endeavour Mining (3.1%) and Fresnillo (2.8%). However, housebuilders and retailers suffered falls.
UK inflation slowed to 3.2% in the 12 months to November 2025, according to the Office for National Statistics. The news led the BoE’s Monetary Policy Committee to vote to cut the base interest rate from 4% to 3.75%, with further cuts anticipated in 2026.
The headline GDP figure was weak in the UK. The economy unexpectedly shrank by 0.1% in October, according to official data.
In addition, UK unemployment hit a four-year high of 5.1% in the three months to October. This could signal a weakening economy.
However, forecasts suggest the economy could pick up in 2026. The Organisation for Economic Co-operation and Development (OECD) expects the UK to be the third fastest-growing economy among G7 members in 2026, falling behind only the US and Canada.
This view is supported by a return to growth in the manufacturing sector.
According to S&P Global’s Purchasing Managers’ Index, manufacturing grew for the first time in a year. The reading came ahead of the Budget, when uncertainty was likely to have been playing on the minds of businesses, so the improvement is particularly encouraging.
Sadly, it’s a different picture for retail.
The Confederation of British Industry (CBI) reported that retail volumes fell at an accelerated pace in December despite the festive season, and firms don’t expect any relief in the opening months of 2026.
The European Central Bank (ECB) opted to hold its interest rates in December as it noted that it’s on track for inflation to settle around its 2% target.
The ECB also raised its growth forecast for the economic bloc, driven by rising domestic demand. The bank now expects GDP to rise by 1.4% in 2025 and 1.2% in 2026.
An industrial recovery is likely to play a crucial role in the higher GDP forecasts. According to Eurostat data, industrial output increased by 0.8% in October as businesses benefited from trade uncertainty fading and falling energy costs.
However, not every part of the region is as optimistic.
The German Ifo Institute’s business climate index fell in December, despite analysts predicting a rise. The gloomy outlook is linked to two years of economic contraction in manufacturing, confidence in the service sector falling, and unhappy retailers facing lower-than-expected sales in the lead-up to Christmas.
US inflation unexpectedly fell to 2.7% in the 12 months to November 2025. Experts had predicted inflation would be 3.1%.
While falling inflation is good news for struggling families, rising unemployment could suggest further difficulties ahead. The unemployment rate hit 4.6%, amid apprehension about the strength of the US economy.
However, job growth was higher than anticipated in November. A total of 64,000 jobs were added, against the predicted 40,000.
The economic news led to the Federal Reserve cutting the base interest rate by a quarter of a percentage point. The base rate is now at its lowest point since 2022.
President Donald Trump permitted technology giant Nvidia to ship H200 chips to China in exchange for a 25% surcharge for the US. The move could allow Nvidia to win back billions of dollars in lost revenue, which led to its shares rising by 2.3% on 9 December.
While good news for Nvidia, the move has been criticised for being an “economic and national security failure” by some Democratic senators.
The International Monetary Fund (IMF) raised its growth forecast for China. The organisation now expects the country’s economy to grow by 5% in 2025 and 4.5% in 2026, thanks to lower-than-expected tariffs on Chinese exports.
However, the IMF also urged China to fix “significant” imbalances in its economy, primarily by shifting from export-led growth to domestic consumption.
The positive news from the IMF was supported by official trade data.
China’s trade surplus hit $1 trillion (£0.74 trillion) for the first time in November 2025, as the economy appeared to shrug off concerns about the impact of trade with the US. Exports grew by 5.9% year-on-year in November following a 1.1% contraction in October.
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
There is perhaps no better time than the festive season to sit down and enjoy a favourite board game with your loved ones.
But as many families know, a friendly game can quickly get competitive. Sometimes this even leads to heated arguments over who gets to be the banker or who suddenly “forgot” to follow the rules.
If this sounds familiar, it might be worth reframing some of the more heated moments as opportunities for learning.
Many of the world’s most popular board games contain valuable lessons about money, risk, and financial decision-making. These skills could help your family manage their finances more effectively, both now and in the future.
For instance, Risk teaches players how to balance diversification and growth, while The Game of Life helps them understand how to align money with what matters most.
Download your copy here: The money lessons your family could learn from board games this Christmas
Please get in touch if you’d like to speak to us about your financial plan.
Please note: This guide is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
