Last month, you read about how retirement is changing, with almost half of workers aged over 50 exploring phasing into retirement. There are plenty of reasons why more people are considering a gradual retirement, including the emotional and financial benefits this option could offer.
When thinking about retirement challenges, most people focus on having enough to live on for the rest of their lives. The emotional challenges may be overlooked.
Retirement is a significant milestone and can change your lifestyle completely. If you retire on a set date, you may go from a fixed routine to the freedom to spend your time however you wish within a single day. While that might sound like bliss and something you’ve been looking forward to, it’s not uncommon to struggle with it initially.
An October 2017 survey by the Centre for Ageing Better and the Calouste Gulbenkian Foundation found that 20% of UK adults who had retired within five years said they found the change difficult.
Those planning to retire within five years of the survey also reported concerns, including:
Age UK research from December 2024 further demonstrates the challenges some retirees face. It found that 7% of people aged over 65 – the equivalent of around 940,000 people – often feel lonely.
Phasing into retirement could help you retain your sense of purpose and social circle while benefiting from more free time to pursue your passions or simply enjoy a slower pace of life.
There are two key reasons why taking a gradual approach to retirement could be beneficial from a financial perspective.
First, if you’re still earning an income, you might not need to draw money from your pension or deplete other assets. As a result, you’ll have more to fund your lifestyle once you give up work completely.
In some cases, your salary will be lower when you’re phasing into retirement, so you might take an income from your pension to supplement it. While you’d be reducing the value of your pension, it’s likely to be at a slower rate than if you weren’t working at all.
Second, you may opt to continue contributing to your pension while you’re transitioning. Again, this could mean your pension is larger when you need to cover more of your expenses in the future.
It’s important to note that if you take a flexible income from your pension, the amount you can contribute tax-efficiently could fall to just £10,000 in the 2025/26 tax year under the Money Purchase Annual Allowance. If you plan to contribute to your pension as you phase into retirement, we can help you assess how to do so tax-efficiently.
Managing your finances if you’re gradually retiring can be complex. You might be juggling multiple incomes, and you’ll also need to consider how your decisions could affect your long-term security.
Working with your financial planner to create a cashflow model can provide clarity. It’s a useful tool that could help you assess the effect of your decisions, so you can feel confident about your finances.
For example, you might use a cashflow model to see if you have enough in your pension to halt contributions earlier than planned so you can phase into retirement. Or you could see how the value of your pension will change if you withdraw £20,000 annually for five years to supplement your salary before taking an annual income of £40,000 when you stop working.
While the results of a cashflow model cannot be guaranteed, it does provide useful insight to help you make informed decisions about retirement or other financial matters.
We can help you create a retirement plan that reflects your lifestyle goals, including phasing into retirement. Please get in touch to discuss the next chapter of your life.
Next month, read about some important financial considerations if you’re planning to phase into retirement, such as when to access your State Pension and how to manage tax liability.
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.
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.
The Financial Conduct Authority does not regulate cashflow modelling.
What’s the most important factor affecting the performance of your investments?
Your mind might jump to the ups and downs of the market, and they do have an effect. When share prices rise, so too will the value of your portfolio. However, the markets aren’t the starting point of a successful investment: your mindset is.
Your approach to investing could influence your success.
Tracking the markets can be enticing. They are constantly moving, with numerous factors influencing them. Headlines can make even slight adjustments seem dramatic.
It can seem logical to focus on these movements, but doing so overlooks the long-term perspective that benefits most investors. When you look at the market returns over decades, you’ll see that the ups and downs smooth out.
Instead, you're left with a general upward trend. Even when markets have fallen sharply, such as during the Covid-19 pandemic, they have, historically, recovered these losses over a long-term time frame.
Investors who focus on short-term market movements can find it more tempting to make adjustments to their portfolio as they try to time the market (buy low, sell high). As movements are impossible to consistently predict, they’re likely to make mistakes and could miss out on long-term gains as a result.
So, if you shouldn’t be keeping an eagle eye on market movements, how should you approach investing?
An important first step to take is to define why you’re investing. Your reason might affect your investment time frame and the level of risk that’s appropriate for you.
Then, you can create an investment portfolio that reflects your goals, risk profile, and financial circumstances. Your financial planner can help assess what’s right for you.
Next, far from keeping an eye on the markets section of the newspaper, it’s time to be patient. Trusting your investment strategy and taking a long-term approach could lead to better outcomes and stronger returns.
It sounds simple, but embracing this mindset can be more difficult than you expect – it’s so easy to reach for your phone and check your portfolio’s performance or the news. While that might seem harmless, it can trigger an emotional response, from fear to excitement. These emotions mean you’re more tempted to change your investments and potentially miss out on long-term gains.
If you struggle to focus on the bigger picture when investing, you might benefit from:
These simple steps could help you develop some of the most important skills for successful investing: patience, discipline, and emotional control. Adopting a mindset that embraces these attributes could have a greater impact on your returns than short-term market movements.
Taking a long-term approach doesn’t mean you never look at your investment portfolio. Regular reviews are still important. However, look at the performance over years, rather than days or weeks.
Similarly, there might be times when it’s appropriate to make adjustments to your portfolio due to changes in your circumstances or long-term trends, not because of the latest headline.
If you’d like to work with us to review your current investment strategy or you’re interested in investing for the first time, please get in touch. We can help you create a portfolio that reflects your aspirations and circumstances.
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.
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.
October 2025 proved to be a positive month for many investors, with markets reaching record highs. Read on to find out more about what factors may have affected your portfolio’s performance.
Remember to take a long-term view when assessing your investments and consider your risk profile when making decisions.
The month started strongly with the FTSE 100 closing at a record high on 1 October, according to the Guardian. AstraZeneca was the biggest riser, making the pharmaceutical firm the most valuable company listed in London.
In the year to 1 October, the FTSE 100 was up almost 15% and could be on track for its strongest year since 2009, when the market recovered from the financial crisis.
It was a similar picture in the wider European and US markets.
On 2 October the Guardian reported, European shares hit a record high. The pan-European Stoxx 600 index increased by 0.7%, driven by gains in German and French companies. Wall Street also reached new heights when it opened, with the S&P 500 index up 0.3%.
Despite the promising start to the month, French stocks fell on 6 October. AA Stocks reported the market fell when new prime minister Sébastien Lecornu resigned after less than a month in office. The French index CAC 40 tumbled 1.8% as a result.
Signalling that investors may feel nervous, a BBC article noted the price of gold surpassed $4,000 an ounce (£3,005) for the first time on 8 October. Gold is often viewed as a “safe” asset, and its price has increased by 50% in the first nine months of 2025.
The Guardian noted soaring price of gold is good news for mining companies. Antofagasta, which operates gold mines in Chile, was the biggest riser on the FTSE 100 after jumping 2.7%.
Trade tariff threats and actual tariff measures have caused market volatility throughout 2025, and October was no different. According to the Independent, on 13 October, the US and China threatened to impose tariffs, which led to Asian stocks falling.
On 17 October, according to the Guardian, anxiety around US regional banks and credit concerns spooked the market. The US S&P 500 index was down 1.2%, and the ripple effect was felt in many other markets.
In the UK, the concerns sparked a sell-off that knocked nearly £11 billion off bank valuations. The FTSE 100 closed 0.87% down, with Barclays (-5.66%), NatWest (-2.88%), and HSBC (-2.5%) among the biggest losers.
There was a similar sell-off in Europe. The Stoxx 600 index (which includes UK banks) was down 2.4%, and around €37 billion was wiped off the value of the European banking sector.
The Asia-Pacific markets weren’t immune. China’s CSI 300 dropped 2.3% and Japan’s Nikkei fell 1%, although the dip in this region was partly attributed to investor caution over profits of AI shares.
The BBC reported Japanese markets quickly recovered on 21 October when Sanae Takaichi won a parliamentary vote to become the country’s first female prime minister. She is expected to push for looser fiscal policy.
The US announced new sanctions on Russia on 23 October, which pushed up the price of crude oil. This led to both BP and Shell shares rising by around 3.5% and the FTSE 100 reaching another record high, according to a Share Talk article.
The Guardian reported the positive news continued on 24 October. The FTSE 100 broke the record set the previous day and exceeded 9,600 points for the first time. On the back of an inflation report, the US indices – the S&P 500 and the Nasdaq – also broke records.
In addition, Shanghai’s SSE Composite Index increased by 0.7% and reached its highest level in more than a decade. The boost was linked to Beijing stating it would focus on chips and AI to achieve technological self-reliance, which led to stocks in this sector rising.
In October 025, the Office for National Statistics (ONS) reported in the 12 months to September 2025, inflation was 3.8% – stubbornly remaining above the Bank of England’s 2% target.
The International Monetary Fund increased its 2025 UK inflation forecast to 3.4% (up from 3.1% in April), saying the UK was set to have the highest in the G7.
Official figures estimate UK GDP increased by just 0.1% in August. The report suggested there was no service growth, which may reflect business caution ahead of the upcoming Budget.
Data from the ONS shows the government borrowed £99.8 billion between April and September 2025. This is the largest sum borrowed since 2020 and is £7.2 billion more than the Office of Budget Responsibility forecast in March 2025. The news will add further pressure to the chancellor ahead of the Budget, which will take place on 26 November 2025.
Trade data released in October 2025 was also poor. According to the Guardian, the trade deficit widened with exports to the US and EU falling by around £700 million and £800 million respectively in August 2025.
Readings from a Purchasing Managers’ Index (PMI) suggest that businesses may be taking a cautious approach in the lead-up to the Budget.
The S&P Global PMI found that sluggish demand led to a reading of 50.8 in September in the service sector. While the figure remains above the 50 mark that indicates growth, it’s a marked drop from the 54.2 recorded in August.
Reuters reported the manufacturing sector shrank at the fastest pace in five months as factories were affected by subdued domestic demand and falling export orders. The reading of 46.2, which indicates contraction, was also linked to a cyberattack on Jaguar Land Rover that halted production and disrupted supply chains.
In August, the euro area hit the European Central Bank’s inflation target of 2%. However, the Financial Times reported it increased to 2.2% in September.
S&P Global’s PMI, which tracks business activity, was positive. According to the Guardian, the eurozone private sector delivered a reading of 52.2 after rising at the fastest pace in 17 months. Businesses also recorded the strongest increase in new orders in two and a half years.
The EU’s two largest economies, Germany and France, reported sharply contrasting performances. Germany’s output growth reached a 29-month high. In contrast, France posted 14 consecutive months of decline amid political uncertainty.
While the PMI data suggests businesses are confident, unemployment figures released by Eurostat indicate many firms are being cautious. Across the eurozone, unemployment increased by 0.1% to 6.3% in August, according to Eurostat.
Highlighting the far-reaching impact of US trade tariffs, Switzerland cut its 2026 economic growth forecast to 0.9% against the 1.2% predicted in June 2025. The Swiss government noted that exports have been affected by tariffs, creating a ripple effect across the broader economy.
According to the BBC, inflation in the US in the 12 months to September 2025 was 3%. The figure is slightly lower than expected and could add to the pressure the Federal Reserve is already facing from the US president to cut interest rates.
S&P Global’s PMI data for the US service sector fell to 54.2 in September but remained in growth territory.
However, a survey conducted by recruitment firm Challenger, Gray & Christmas and reported by Bloomberg suggests that business uncertainty may be causing firms to halt hiring plans. In the nine months to the end of September 2025, 205,000 fewer jobs were created when compared to the same period in 2024.
According to Reuters, Takaichi, Japan’s new prime minister, could be welcome news for investors. She is expected to embrace government spending, lower interest rates, and adopt a looser approach to monetary policy than her predecessor. It’s hoped that this will encourage businesses to invest and support economic growth.
According to the Guardian, while China’s GDP growth of 4.8% year-on-year between July and September 2025 might seem high compared to other economies, it’s the slowest pace recorded in a year. In addition, hopes that the economy could reduce the impact of tariffs by moving away from exports to domestic consumption were tempered when retail figures remained weak.
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.
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.
In life, the finest wisdom often comes from the most unexpected places.
So, you may be surprised to learn that Jane Austen – one of the most revered romance authors of all time and a paragon of women’s literature – has anything to teach you about the modern world of finance.
Born in Hampshire in 1775, one of eight children, nobody expected the unassuming Jane to become a novelist – or that her works would endure for centuries, let alone that her face would end up on the £10 note.
But like Austen’s wonderful works of fiction, some financial concepts stand the test of time, remaining relevant no matter how trends change and markets move.
Read this guide to discover what you could learn from Mansfield Park, Pride and Prejudice, and other novels from the celebrated author.
Download your copy here: 5 enduring money lessons you can discover in Jane Austen’s novels
If you have any questions about the topics covered in this guide or your financial plan, please get in touch.
Please note: This guide is for general information only and does not constitute advice. The information is aimed at retail clients only.
Having a stable income when you retire could give you the independence to enjoy a meaningful and fulfilling life after work. Indeed, a July 2023 survey by Legal & General found that 94% of UK adults said that financial security was their most important retirement dream.
Your State Pension, along with other savings and investments, could provide the stability you need to support the retirement lifestyle you want.
However, there is a worrying lack of understanding about the State Pension among UK adults.
The Retirement Voice report published in April 2025 by Standard Life revealed that:
So, this useful guide explains the essential things you need to know about the State Pension, from when and how you can claim it to how the income it provides will increase during your retirement.
Download your copy here: Everything you need to know about the State Pension
If you have any questions about your State Pension entitlement and how it could supplement other sources of income in retirement, please get in touch.
Please note: This guide is for general information only and does not constitute advice. The information is aimed at retail clients only.
There were ups and downs for investors during September 2025, with disappointing economic data dampening the market at times. However, some positive outcomes also emerged. Read on to find out what might have influenced your investment portfolio’s recent performance.
The price of gold reached a record high of $3,508.50 (£2,600) an ounce on 2 September. Gold is often viewed as a “safe” asset, so the rising value could signal that investors are feeling nervous about the outlook for the equity market.
As gold prices rose, markets in the UK, Europe, and the US declined.
On 2 September, the FTSE 100 fell 0.43%. Among the biggest losers were retailers Marks & Spencer (-3.6%) and Sainsbury’s (-2.5%), and housebuilders Taylor Wimpey (-3.4%) and Barratt Redrow (-2.5%).
Similarly, key indices fell in Europe and the US, including Germany’s DAX (-1%), Spain’s IBEX (-0.9%), Italy’s FTSE MIB (-0.9%), and the US’s S&P 500 (-1.2%).
Shares in airlines tumbled on 4 September after Jet2 told investors it expected earnings this year to be on the lower end of forecasts. The announcement sent the company’s shares down 14% and had a knock-on effect on other airlines, including easyJet (-4.2%) and IAG (-2.3%).
Rising tensions between Russia and Europe led to defence company BAE Systems’ share price rising 2.9% on 11 September. The jump made the company the biggest riser on the FTSE 100, which gained 0.37%.
On 11 September, hopes that the US Federal Reserve would cut interest rates lifted the major Wall Street indices, including the Dow Jones (0.5%) and S&P 500 (0.25%).
Then, on 24 September, after President Donald Trump said that Nato aircraft should shoot down Russian aircraft entering its airspace, European defence stocks jumped. The two biggest risers on the FTSE 100 were Babcock International (1.9%) and BAE Systems (1.5%). Other companies whose share prices increased included France’s Thales (1.7%), Germany’s Rheinmetall (1.4%), and Italy’s Leonardo (2.8%).
After signs that the US trade war had eased in August, Trump unveiled new tariffs on 26 September.
From 1 October, medicines and pharmaceutical goods will face a 100% tariff when entering the US. Unsurprisingly, this caused shares in firms within this sector to fall, including AstraZeneca (-1.4%). The US will also impose tariffs of between 25% and 50% on other goods, including heavy-duty trucks and kitchen cabinets.
Official data for July showed GDP was unchanged from the previous month.
The inflation rate for the 12 months to August was 3.8%, prompting the Bank of England to keep interest rates static.
UK borrowing costs reached a 27-year high in September due to higher interest rates on national debt. The additional cost ate into the headroom available in the November Budget, placing pressure on the chancellor, who reportedly needs to plug a £50 billion gap in the public finances.
The effect of Trump’s trade war was also visible in the figures released in September. According to the Office for National Statistics, the trade deficit widened by £400 million to £10.3 billion in the three months to July 2025.
Data from S&P Global’s Purchasing Managers’ Index (PMI), an economic indicator, painted a weak picture for the manufacturing sector. The PMI reading was 47 in August (readings above 50 indicate growth). This was the 11th consecutive month the PMI remained below 50.
However, the PMI data wasn’t all negative. The service sector hit a 16-month high in August 2025 with a reading of 54.2. Encouragingly, sales to the EU and US rose, which could suggest long-term growth.
Technology investors welcomed the news that US tech giant Nvidia pledged to invest £2 billion in UK firms, which could boost the sector.
Inflation across the eurozone was 2.1% in the 12 months to August 2025, only slightly above the European Central Bank’s (ECB) target of 2%. Cyprus recorded the lowest inflation rate at 0%, while Romania had the highest rate at 8.5%.
The ECB raised its eurozone growth forecast for this year to 1.25%, up from 0.9% in June. However, it tempered this rise with a slightly lower forecast of 1% for 2026.
The bloc also received other positive news. HCOB’s eurozone manufacturing PMI was 50.7 in August, a 14-month high. Meanwhile, unemployment dipped to a record low of 6.2% in July, according to data from Eurostat.
The European Commission’s economic sentiment tracker improved in September, suggesting greater confidence in the outlook after the EU struck a trade deal with the US.
This month also saw an interesting initial public offering for investors. Swedish fintech company Klarna is set to debut on the New York Stock Exchange with a value of more than $14 billion (£10.9 billion).
US inflation continued to be above the Federal Reserve’s 2% target at 2.9% in the 12 months to August 2025. This was partly due to businesses passing on the cost of tariffs to consumers.
The data led to the Federal Reserve cutting the interest rate by 25 basis points, and economists expect further cuts before year-end.
Job data from the Bureau of Labor Statistics may suggest that businesses aren’t feeling confident enough to hire new employees. The US economy added only 22,000 new jobs in August, well below the expected 75,000.
Alphabet, Google’s parent company, reached a new high on 15 September after shares increased by almost 4%, pushing its value to $3 trillion (£2.2 trillion) for the first time.
News was less positive for Tesla. The company’s share of the US electric vehicle market fell to 38%, down from more than 80% at its peak, amid rising competition.
The effects of Trump’s trade war were evident in official figures from China.
Chinese export growth slowed to a six-month low in August. Exports increased by 4.4% year-on-year, down from 7.2% in the previous month. Shipments to the US fell 33%, and a 22.2% rise in exports to Southeast Asian nations wasn’t enough to offset the decline.
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.
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.
High street toy shop The Entertainer revealed that it has transferred 100% ownership of the family-owned business to an employee trust. As a business owner, if you’re considering exit strategies, an Employee Ownership Trust (EOT) could be an option worth exploring.
An EOT is a government-backed structure that allows business owners to sell a controlling stake of their company to a trust for the benefit of all employees. As a result, the employees get a share of the profits and a say in how the firm is run.
As the business owner, you can choose to remain involved in the company if desired. You might choose to be a director, minority shareholder, or continue working full-time within the business until you’re ready to move on.
EOTs have been promoted by the government since 2012. Yet, they might be an option you overlook as a business owner, and you might miss out on certain tax advantages as a result.
Typically, Capital Gains Tax (CGT) is payable when you sell shares in your business. However, if you sell them to an EOT, no CGT will be due. This makes it a tax-efficient way to exit your business.
An EOT could also be a valuable option if you don’t have a family successor to leave your business to, but you still wish to create a lasting legacy.
You might appreciate that your business will continue running even after you step away, and that your employees will remain in their roles.
According to an August 2025 article from the BBC, one of the reasons Gary Grant, founder of The Entertainer, chose the EOT route was because his children had other plans. He believes the move will preserve the family’s legacy while retaining the family feel of the business.
If an EOT sounds like an exit strategy you want to explore, there are some drawbacks to consider first.
An EOT can be complex to set up, and certain conditions must be met to qualify for a tax break.
In addition, you’ll usually be paid from future profits over several years, so it may take longer to receive your proceeds compared with other exit options, such as selling your business to another person or company.
As a result, you might want to consider what your financial needs will be when you exit the business.
A financial plan could help you with this. By setting out your plans once you exit the business, you can calculate what is “enough” and what other assets you could use to generate an income to support your lifestyle. We can help you have confidence in your long-term security.
We can also work with you to create a long-term plan for using the money you receive from your business in a way that aligns with your goals, whether that’s investing for long-term growth or gifting assets to your loved ones now.
As a business owner, your finances might be complex, but we can help you develop a tailored financial plan that reflects your goals, including referring you to a specialist if you want to explore EOTs.
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.
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.
Retiring should be a milestone you look forward to. It’s a chance to spend your time how you want and do the things you’ve been putting off because work has been in the way. Yet, sadly, research shows UK adults associate spending their retirement savings with negative words, and it could prevent them from enjoying the next chapter of their life.
According to an August 2025 article from Money Marketing, UK adults associate anxiety (26%), fear (18%), and guilt (15%) with spending their pension and other assets they’ve built up for retirement.
Positive emotions, such as excitement (15%), security (17%), and relief (10%), were less commonly associated with depleting assets in retirement.
Anxiety could hold back your retirement plans, even if you have enough to tick off items on your bucket list and live comfortably.
Working with your financial planner to create a cashflow model could help you turn anxiety into excitement.
For most retirees, their pension provides their main source of income once they give up work. You’re also likely to benefit from the State Pension and have other assets you might want to draw on, such as savings, investments, or property.
Bringing together the value of all these assets and then calculating what that means for your income and financial security throughout your retirement can seem like a daunting task. This is where a cashflow model can be valuable.
A cashflow model is a powerful tool that lets you see how your wealth might change over your lifetime depending on the decisions you make and factors outside of your control.
You start by adding information about your finances now, such as the value of each asset and your expenditure.
With this foundation, the cashflow model can project how your wealth might change. So, you could see how the value of your pension will change during your working life if it delivers average annual returns of 5%. Or how your outgoings might rise to account for an annual inflation rate of 3%.
It can be particularly useful when you’re planning for retirement, as it can demonstrate if you have “enough” based on your plans, like when you want to retire and your expected income.
It’s important to note that the outcomes of a cashflow model cannot be guaranteed, but it can provide useful information so you’re able to make informed decisions. To ensure your cashflow model continues to reflect your circumstances and long-term goals, it’s also essential that you update it regularly with your financial planner.
It’s understandable why people feel anxiety and fear about spending their retirement savings. After all, if you spend too much too soon, you could find yourself in a financially vulnerable position.
The cashflow model can project how your wealth might change. For instance, you could see:
Not only can a cashflow model help you understand the potential effect of your decisions, but it can also be useful when assessing how outside factors might affect your finances.
For example, you might change the assumptions the cashflow model uses to see how:
A cashflow model can help you identify potential gaps in your retirement finances and take steps to bridge them. It could help you feel more positive about taking a step back from work and spending your pension.
Interestingly, the Money Marketing article noted that 15% of UK adults feel guilty about spending their retirement savings.
If you find it difficult to spend money on yourself, a financial plan could help you identify what your priorities are and give you the confidence to pursue them.
For some people, supporting loved ones will be a priority and help ease any feelings of guilt. Again, a cashflow model can be useful.
If you want to gift assets to your loved ones during your lifetime, you can input this into your cashflow model to see how it might affect your long-term financial security. For example, if you want to gift a house deposit to your grandchild, you can use a cashflow model to assess the effect of gifting a lump sum now.
You might also be thinking about what legacy you’ll leave behind for loved ones, and how it could provide financial support when you’re gone. A cashflow model could help you calculate the value of your estate in the future, so you’re able to create an effective estate plan.
If you’d like to review or create a cashflow plan, please contact us.
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.
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.
The Financial Conduct Authority does not regulate cashflow modelling or estate planning.
On 26 November, the chancellor, Rachel Reeves, will deliver the government’s Autumn Budget, setting out fiscal plans for the year ahead and beyond. There’s speculation that some of the announcements could affect homeowners, including changes to Stamp Duty.
According to a September 2025 article from the BBC, the National Institute of Economic and Social Research estimates the chancellor will need to plug a £50 billion gap in public finances.
While the chancellor has played down this figure, it has led to expectations that taxes will increase or public spending will be cut. One such tax that headlines suggest could be mentioned in the Budget is Stamp Duty.
In England and Northern Ireland, Stamp Duty is a type of tax you pay when you purchase land or property.
In 2025/26, the Stamp Duty rates are:
| Property or transfer value | Stamp Duty rate |
| Up to £125,000 | 0% |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Usually, if you own another residential property, you’ll pay an additional 5% on the rate above.
If you’re buying your first home, you may benefit from a relief. This could mean you don’t need to pay Stamp Duty (if you’re buying a property for £300,000 or less) or you pay Stamp Duty at a reduced rate (if the property is worth between £300,001 and £500,000).
There are similar taxes in Wales and Scotland, though the thresholds and rates are different. As these taxes are set by the Welsh and Scottish governments, an announcement in the Budget about Stamp Duty may not affect homebuyers in these areas.
Stamp Duty has been criticised as inefficient in the past.
As homemovers face a large, one-off cost, Stamp Duty can be a deterrent for moving, which may lead to people staying in homes longer than they otherwise would. For example, empty nesters might put off downsizing because they don’t want to pay Stamp Duty. Not only does this affect the family that decides not to move, but it can also mean there isn’t as much choice on the property market overall.
It seems that movers expect there to be changes in the Budget and are worried about the uncertainty.
According to research published by the Intermediary in October 2025, 1 in 5 homeowners have said they are putting plans to sell on hold ahead of the November Budget.
It’s important to note that reported changes to property taxes are just speculation at this stage. We won’t know exactly what changes, if any, will be implemented until 26 November.
However, here are three options Rachel Reeves may be weighing up.
1. Increasing Stamp Duty rates
If Reeves is looking to raise taxes, one simple option might be to increase the existing Stamp Duty rates. However, this could have a damaging effect on mobility, and lead to property sales falling, which could cut government tax receipts and make it harder for first-time buyers.
2. Introducing an annual property tax
One proposal suggests scrapping Stamp Duty and replacing it with an annual property tax. This would likely be a tax paid by homeowners in properties valued above a certain threshold, reportedly £500,000, and could potentially replace both Stamp Duty and Council Tax.
While this would be welcome news for some homemovers, it’s likely to disproportionately affect buyers in London and the south-east, where property prices are higher.
3. Creating a “mansion tax”
There’s also talk of a possible “mansion tax” for homes valued at more than £1.5 million. Under this proposal, homeowners would lose private residence relief on their main home and would pay Capital Gains Tax (CGT) on any increase in the property’s value when they dispose of it.
It could result in large bills, as higher-rate taxpayers pay CGT at a rate of 24% in 2025/26.
Choosing the right mortgage option for you could cut your costs over the long term. So, if you’re planning to move home in the coming months and need to take out a new mortgage, contact us to find out how we could help.
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.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Increasingly, UK savers are losing track of their pensions. In October 2024, research by Pensions UK found that the total value of lost pension pots had risen by 60% since 2018.
Losing track of your pensions can be costly. Across the 3.3 million pension pots considered lost, the average fund value is £9,470 – rising to £13,620 for those aged 55 to 75.
By consolidating multiple workplace and private pensions into fewer schemes – or even just one – you could make it easier to track and manage your retirement savings. Additionally, bringing multiple pots together may help you grow your funds more efficiently and reduce your administration fees.
Generally, you can consolidate any defined contribution (DC) schemes (Personal Pensions), regardless of whether they are workplace or private pensions. However, pension consolidation may not always be appropriate, with a variety of fees, rules, and the potential loss of benefits to consider.
Read on to discover three reasons why pension consolidation could boost your retirement income, and when consolidation might not be appropriate.
By bringing more of your pension pots together under one provider with a single set of rules, features, and benefits, you may be able to simplify your pension management.
According to an August 2022 study from Standard Life, the average person in the UK changes jobs every five years. As a result, people often accumulate multiple workplace pensions throughout their working life – making it easy to lose track over the years.
With fewer pension providers, policy details, and fund values to keep track of, you can reduce the administrative burden of managing multiple pensions. This helps you maintain a clear view of your total retirement funds and monitor how well your investments are performing, while reducing the risk of losing money in forgotten pots.
With a greater understanding of how much you currently have, you can more easily determine how much you need to grow your funds to achieve your retirement goals.
Generally, investment options vary from one pension to another. While some older pensions may be limited to investment funds managed by the provider, others could offer a wider choice and more flexibility for you to decide where your pension is invested.
Some schemes may perform better than others, delivering a higher rate of return on your pension savings. Additionally, having a larger pot may present more investment opportunities, with some requiring a minimum investment size.
Plus, since your investment returns compound over time, consolidating your pensions could enable them to grow more quickly.
Indeed, by moving more of your funds into a pension that offers potentially higher returns, you could accelerate your pension’s growth. According to HM Treasury in May 2025, the average earner could boost their retirement savings by £6,000 through consolidating their funds.
When you have several pension pots, you could unnecessarily pay duplicate fees. Each scheme generally comes with varying administrative charges, ranging from less than 0.5% to more than 1% of your fund. Typically, older pensions are likely to have higher fees.
While individual fees may sometimes appear nominal, the amount you’re charged is likely to grow as time passes and your fund value increases. Considering you could be paying such fees across multiple schemes and over several years, the total charges paid over your lifetime can be significant.
However, some schemes may also charge an exit fee. For pensions set up before 31 March 2017, you could be charged up to 10% of your fund. If you set up your scheme after this date, or are aged 55 or over, exit fees are capped at 1%.
As a result, consolidating your pension pots can boost your retirement savings by reducing your costs. However, choosing which plan to transfer your funds into requires careful consideration.
Consolidation isn’t appropriate for everyone. In some cases, partial consolidation can be a good option, whereby you bring some of your funds together while leaving other pots separate. For some people, consolidation might not be necessary at all.
Smaller pension pots
If you have pots worth less than £10,000 and plan to withdraw from them before retirement, it could be worth leaving them separate from your other funds because of the “small pots exemption”.
As of 2025/26, you can generally draw down up to three of these pots in your lifetime without triggering the Money Purchase Annual Allowance (MPAA). This allowance permanently reduces the amount you can pay into your pension tax-efficiently from £60,000 to £10,000 a year.
Defined benefit schemes
If you have a defined benefit (DB) pension (Final Salary Scheme), consolidation is unlikely to be a sensible option. Unlike DC schemes, DB pensions generally offer a guaranteed retirement income based on your salary and years of service with your employer.It is unlikely to be in your interest to consider moving a final salary scheme.
In fact, you may be required to seek advice from a qualified financial adviser before transferring funds out of a DB scheme that contains over £30,000.
Your current workplace pension
If you and your employer are still contributing to a workplace pension, it may be worth keeping that scheme open. By closing it to consolidate with other funds, you’ll likely surrender your employer contributions, which may prove significant over time.
Protecting scheme benefits
In some cases, your pension schemes may offer valuable guarantees or benefits that are more common with older schemes, such as:
If it’s not possible to consolidate your other pensions into your preferred scheme – for example, if your employer is contributing to a different pot – it might be worth leaving your funds where they are.
While pension consolidation may deliver a range of administrative and financial benefits, creating a strategy for bringing multiple pots together can be complex.
There are a variety of rules, fees, benefits, investment opportunities, and personal factors to consider before consolidating. In fact, in September 2025 IFA Magazine reported that poorly informed pension transfers made in the year to 30 June 2025 may have cost savers £1.7 billion.
By seeking guidance from a qualified financial planner, you could help determine the most effective consolidation strategy for your needs and circumstances. Get in touch to learn more about how we can support you in boosting your retirement funds.
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.
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 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.
Workplace pensions are regulated by The Pensions Regulator.
The Financial Conduct Authority does not regulate tax planning.
