It’s common to be juggling different goals with various time frames, which can be difficult to balance.
Over the next few months, you can read tips on managing short-, medium-, and long-term financial goals, and how a financial plan could help you bring them together on our blog. This month, read on to find out why short-term goals are just as important as your long-term ones, and how you might make the most of your money.
Typically, short-term goals are defined as those occurring within the next two years. They might include going on holiday, buying a car, or paying for a wedding.
Alongside saving for retirement or paying off your mortgage, your short-term goals might feel less important. However, they’re just as valuable for your overall wellbeing and play an important role in your financial plan.
When you’re working towards a short-term goal, holding the money in cash is often appropriate. This is because if you invest your money, it could be exposed to short-term market volatility, which could affect your ability to reach your goals.
While the value of your savings in real terms is lower if the interest paid is lower than the rate of inflation, the effect of this over the short term is less severe than if you were saving for a long-term goal.
As well as goals you’re working towards in the next two years, you might also want to include an emergency fund to cover unexpected expenses as part of your cash savings. This fund could provide you with peace of mind and financial security should something happen, such as your roof leaking or an inability to work due to illness.
As you want to be able to access the money quickly in the event of an emergency, a cash account often makes sense.
Even when you’re working towards short-term goals, there may be ways you can make your money work harder. Here are three options you might want to consider when holding cash.
1. Savings account
A savings account is a common place to hold cash for short-term goals.
The money you deposit will earn interest. It’s worth looking at different accounts as the interest offered can vary significantly, and some may offer higher introductory rates or attractive incentives, such as a one-off bonus. Even a small difference in the interest rate could boost your savings.
It could be useful to automate payments to your savings account, so it’s part of your regular budget. Viewing savings as essential may help you stay on track and mean you’re less likely to spend the money on something else.
2. Cash ISA
A Cash ISA is similar to a traditional savings account – your deposited money earns interest. However, ISAs offer a tax-efficient way to save and could be valuable if you might otherwise pay tax on the interest earned.
The Personal Savings Allowance (PSA) is the amount you could earn in interest before tax may be due. The allowance depends on the rate of Income Tax you pay. In 2026/27, the PSA is:
You might be surprised by how easy it is to exceed the PSA. For example, if your savings account paid interest of 4.5%, you’d only need to deposit £11,111 before you could start paying tax on the interest.
The good news is that interest earned from money held in a Cash ISA is not liable for Income Tax.
So, if you might pay tax on your savings, a Cash ISA may provide a way to reduce or eliminate the potential bill.
In 2025/26, you can deposit up to £20,000 into ISAs, and you may place the full amount into a Cash ISA if you choose. From 6 April 2027, if you are under the age of 65, your total ISA allowance will remain at £20,000; however, the Cash ISA limit will fall to £12,000.
Remember, tax liability and tax-efficient strategies should consider your personal circumstances, and allowances and exemptions are subject to change.
3. Premium Bonds
Finally, Premium Bonds might be an option for your cash savings.
Premium Bonds are issued by NS&I, so they’re backed and guaranteed by the Treasury. Rather than paying interest on savings, bonds are entered into a monthly prize draw. As of April 2026, each bond has a roughly 23,000-to-1 chance of winning, with prizes ranging from £25 to £1 million.
While the opportunity to win big is exciting, keep in mind that Premium Bonds do not pay interest, so the value of your savings could fall due to the effects of inflation if you don’t win.
The maximum you can hold in Premium Bonds is £50,000.
Transfers from a Premium Bonds account can take several days, so this option might not be suitable as your emergency fund.
National Savings & Investments (NS&I) are not regulated by The Financial Conduct Authority.
If you’d like to talk to us about your goals and how you might use your money to reach them, please get in touch.
Next month, read our blog to discover how you might manage your money when you’re working towards medium-term goals.
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.
Managing your pension doesn’t stop once you retire and start to draw an income from it. In fact, your pension still needs careful attention in retirement – just as much as when you were contributing – to ensure you don’t deplete it too quickly.
Research suggests that many retirees aren’t taking professional advice and are potentially making financial decisions they’ll regret in the future.
According to the Financial Conduct Authority (FCA) (22 September 2025), in 2024/25, less than a third of people accessing their pension for the first time took regulated financial advice.
In addition, an FTAdviser article (5 March 2026) noted that a previous survey found that many retirees will deplete their pension by their late seventies if they maintain their current withdrawal rate, leaving the average person with a nine-year shortfall. 1 in 7 already regret how much they’ve withdrawn.
Pension Freedoms were introduced in 2015 and changed how you could access your defined contribution pension.
With a defined contribution pension, you and your employer both contribute to a pot, which is usually invested. When you retire, you use this pot to create an income. Under Pension Freedoms, you have several options, which can provide retirees with the flexibility to create an income that suits them.
However, you’re also responsible for ensuring your pension provides an income for the rest of your life. As a result, there’s a risk that you could spend too much too soon, or that a poor financial decision has a long-lasting impact.
1. Consider your life expectancy
The research reported by the FTAdviser suggests the average person could deplete their pension nine years before the average life expectancy, which could leave them in a financially vulnerable position.
According to the Office for National Statistics, the average 65-year-old woman has a life expectancy of 88. For men of the same age, it’s 85.
Yet, using the average figure when assessing your pension withdrawals could still leave a gap, as many people exceed this. For example, 1 in 4 65-year-old women will celebrate their 95th birthday, and 1 in 4 65-year-old men will reach 92.
2. Calculate the effects of inflation
One of the challenges of retirement planning is that you need to consider how your expenses will change over several decades. One of the factors that will affect your outgoings is inflation.
The Bank of England inflation calculator shows that an annual retirement income of £30,000 in 2015 would need to have grown to more than £41,000 by the end of 2025 simply to maintain your spending power.
As retirements are likely to span several decades, failing to factor in inflation when creating a withdrawal strategy could leave you struggling financially day to day or at risk of depleting your pension too soon.
3. Understand your guaranteed income
Having a guaranteed income that could cover your essential outgoings could offer peace of mind.
Most retirees will receive a reliable income for life from the government once they reach the State Pension Age. In addition, you may use your pension to purchase an annuity, which would provide a regular income for the rest of your life.
The amount you receive from an annuity will depend on the rates you are offered, which may be affected by your personal circumstances and external factors. You might also select an annuity where the income rises in line with inflation to preserve your spending power or provide an income for your partner if you pass away first.
You can use some or all of your pension to purchase an annuity to suit your needs. The decision is often irreversible, so it’s important to assess if an annuity is right for you first.
4. Assess your drawdown strategy
One way you might access your pension is known as flexi-access drawdown. This allows you to withdraw money from your pension and adjust the amount to suit your needs.
For many retirees, their income needs will change. So, this option can be valuable, and it’s important to calculate what your sustainable spending rate is to avoid running out of money.
Working with your financial planner to create a cashflow model could help you visualise how long your pension would last, depending on different withdrawal rates, including if your income needs rise and fall. It’s important to note that while a cashflow model can be useful when making financial decisions, the outcome isn’t guaranteed.
5. Make potential risks part of your retirement plan
You can’t always prevent events from affecting your finances, but you might be able to take steps so you’re in a better position to manage them.
For example, maintaining an emergency fund in retirement could help you cover unexpected costs, such as property repairs, or you might draw income from it during a period of market volatility if your pension remains invested.
In addition, you might also need to be aware of investment risk.
If you choose to leave all or a portion of your money in your pension, as you would if you use flexi-access drawdown, it will typically remain invested. During periods of volatility, the value of your pension might fall or rise as a result. If you continued to withdraw money from your pension at the same rate during a period of downturn, you might deplete your pension faster than expected.
Being aware of investment performance and scheduling regular reviews with your financial planner could help you manage investment risk and highlight where you might benefits from adjusting your withdrawals.
6. Schedule regular reviews with your financial planner
Finally, scheduling regular reviews with your financial planner could provide you with an opportunity to ask questions and assess whether your withdrawals remain sustainable. By checking your pension throughout retirement, you might be in a better position to spot potential risks to your financial security.
If you’d like to arrange a meeting to talk about your pension and retirement, please get in touch.
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 Financial Conduct Authority does not regulate cashflow modelling.
Deciding how you’d like your assets to be managed later in life and after you pass away may be intimidating. However, a cashflow model could help you answer both financial and emotional questions, so you’re in a better position to tackle your estate plan.
According to a survey conducted by Aegon (5 March 2026), 1 in 3 UK adults has done nothing to prepare for death. Even among adults who have taken steps to prepare, many haven’t completed the full process. For example, while 38% said they’d written a will, only 18% had organised their core financial documents, such as pension information, insurance details, or account records.
While it may seem that estate planning is something you can put off until later, being proactive can be valuable. Not only could it offer peace of mind, but a longer time frame could present opportunities to pass on gifts during your lifetime and make tax-efficient decisions.
Cashflow modelling is a powerful tool that allows you to input information about your current finances and then use assumptions to project how the value of your assets might change. You may incorporate variables like expected investment returns, planned outgoings, or when you hope to start using your pension to create an income.
The output of cashflow modelling might help you make more informed decisions.
For example, when you’re planning for retirement, you might model several different scenarios to understand how your retirement age may affect your income. Or you could use it to calculate what a sustainable income throughout retirement would be for you.
It’s important to note that the output of a cashflow model cannot be guaranteed and will be based on the information you input and the assumptions made.
However, a cashflow model could be valuable when you’re making important decisions, including those relating to your estate plan. Here are five reasons why you might benefit from using a cashflow model when you’re thinking about how to use or pass on your assets in the future.
1. Assess the impact of gifting during your lifetime
For many people, gifting to loved ones during their lifetime is a goal. You might want to help adult children get on the property ladder, boost their income, or cover the cost of a grandchild’s school fees.
However, you may be worried about how it’ll affect your financial security in the long term. A cashflow model could help you visualise the potential impact of gifting to understand if it’s an option you want to consider.
2. Decide how to pass on your estate
The value of your estate may affect how you choose to divide your assets. As a result, a cashflow model can be a useful tool when thinking about inheritances.
Understanding the value of your assets could be useful for your beneficiaries too, as their expected inheritance might influence their financial decisions.
3. Highlight when you might benefit from Inheritance Tax planning
Inheritance Tax (IHT) is a tax on your estate after you pass away if its value exceeds certain thresholds. As the value of your assets is likely to change during your lifetime, it can be difficult to assess whether IHT is something you might need to consider. In addition, allowances and exemptions will be dependent on your personal circumstances, so seeking tailored advice may be useful.
A cashflow model could highlight if your estate may be liable for IHT and potentially help you find ways to reduce the bill.
4. Support creating a care plan
Planning for care costs can be challenging. However, it may be an important part of your long-term plan.
As people live longer lives, the number of individuals who require support is expected to rise. Indeed, according to research from the Joseph Rowntree Foundation (22 August 2024), the number of people who could benefit from support with daily activities will rise from 1.7 million in 2015 to 3 million in 2040.
A cashflow model could help you assess how you’d pay for care costs should you need support later in life.
5. Test “what if” scenarios
One challenge when making decisions is understanding the long-term impact. A cashflow model could allow you to test “what if” scenarios and assess the impact they might have on your assets.
For instance, you may use a cashflow model to answer questions like:
Being able to visualise the effect of these decisions on your wealth might give you the confidence to move your plans forward or identify potential gaps before you act.
If you’d like to create an estate plan or review an existing one, please contact us.
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 Financial Conduct Authority does not regulate estate planning, tax planning or cashflow modelling.
Conflict in the Middle East caused market volatility throughout March 2026. Find out what other factors may have affected your investments.
While the ongoing uncertainty may feel unsettling for investors, remember that your strategy reflects your long-term goals and considers periods of volatility. Investment returns cannot be guaranteed, and the value of your assets may fall as well as rise.
On Saturday, 28 February, the US and Israel began strikes on Iran, which led to markets falling when they opened on Monday 2 March.
The FTSE 100 recorded its biggest loss since November 2025 when it fell 1.2%, with airlines, luxury goods makers, and banks particularly affected. In contrast, defence stocks increased, including the UK's BAE Systems, which was up 7% at the start of trading.
It was a similar picture in Europe. The main indices in France, Germany, Italy, and Spain were down 2.2% or more. When markets opened in the US, the Dow Jones Industrial Average and the wider S&P 500 both dropped 1%.
As the Middle East is a major oil-exporting region, conflict there led to prices rising. Deutsche Bank stated Brent crude was up 8.4%, though it added it was only the 38th largest oil spike since 1990.
The volatility continued on 3 March, with the FTSE 100 recording the biggest daily loss in 11 months when it fell 2.75%. Germany’s DAX (-3.6%), France’s CAC 40 (-3.5%), and Italy’s FTSE MIB (-3.9%) also suffered losses.
Asia-Pacific markets weren’t immune to the effects of the war in Iran either. Japan’s Nikkei index fell 3.6%, and South Korea’s KOSPI was down 12% on 4 March due to concerns about shipping through the Strait of Hormuz, a key sea passage for trade, particularly for oil.
On 11 March, the International Energy Agency proposed the largest release of oil reserves in history to bring crude prices down. The news led to Asian shares climbing, with the main indices in Japan and South Korea rising by 1.4%.
However, energy fears continued to influence European markets. On 16 March, the FTSE 100 was down by 1.9%, and the index’s 2026 gains were wiped out on 20 March.
Markets briefly rallied on 23 March following news that negotiations would take place between the US and Iran. However, there were conflicting reports that led to confusion. Despite this, US markets improved, with the Dow Jones up 2%, and construction equipment firm Caterpillar leading the way with a 4.4% rise.
The Office for National Statistics said the UK economy stagnated in January 2026. The data suggests the economy was weakening even before the effects of the conflict in the Middle East were felt. Furthermore, inflation in the 12 months to February 2026 was 3%, stubbornly sticking above the Bank of England’s (BoE) 2% target.
The British Chambers of Commerce commented that the UK is stuck in a “low-growth pattern”, after the 2026 GDP forecast was downgraded from 1.2% to 1%. The organisation said the revised estimate reflects weak productivity, subdued investment, and cautious consumer spending.
At the start of March 2026, Chancellor Rachel Reeves delivered the government’s Spring Statement. In it, she said inflation would fall faster than expected, economic growth would pick up in 2027 and 2028, and there was headroom in the budget.
However, the calculations were made before the conflict in the Middle East began, which is expected to affect the economic outlook.
For instance, rising energy prices could influence inflation. Indeed, the Office for Budget Responsibility estimated the Iran war would add 1% to UK inflation this year. In turn, high inflation may lead to the BoE increasing interest rates, which would place pressure on consumers and businesses.
Data from S&P Global’s Purchasing Managers’ Index (PMI) was positive for the manufacturing and service sectors.
In February 2026, the manufacturing PMI continued to grow, recording a reading of 51.7 – a figure above 50 indicates growth – and a rise in business both at home and abroad. The service sector fell slightly compared to the previous month to 53.9, but still shows growth.
In contrast, the construction sector fell to 44.5 in February, which marked 14 consecutive months of contraction.
Across the eurozone, the annual inflation rate was 1.9% in February 2026, up from 1.7% a month earlier, and very close to the European Central Bank’s (ECB) 2% target.
The ECB opted to hold interest rates in March, but warned that uncertainty could lead to higher inflation and pose risks to economic growth, which might lead to higher interest rates in the coming months.
The European Commission consumer confidence survey highlights this fear among consumers, with the reading falling amid worries that the Iran war could drive up energy costs.
The S&P flash report on output in the eurozone fell to 50.5 in March, down from 51.9 in February. The reading represents a 10-month low, and it is close to the 50 mark, which signals stagnation.
As expected, inflation in the 12 months to February 2026 remained stable at 2.4%.
However, data from the Bureau of Labor Statistics was less positive. The US economy lost 92,000 jobs in February, which could be a sign that the market is cooling, and the ongoing conflict might lead to businesses taking a more cautious approach in the coming months.
A consumer sentiment survey carried out by the University of Michigan indicates that the Iran war is already influencing how confident people feel about their financial future. The reading fell from 56.6 in February to 55.5 in March.
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.
Next year, a significant change to how pensions are treated when calculating Inheritance Tax (IHT) could mean more families become liable for the tax. Here’s what you need to know to understand if your estate could be affected and how you might mitigate a potential bill.
Currently, pensions are usually outside your estate for IHT purposes. As a result, your pension might provide a tax-efficient way to pass on wealth to your loved ones.
This will change on 6 April 2027, when most unused pension funds and pension death benefits will be included in IHT calculations.
According to HMRC (25 November 2025), the changes mean around 10,500 estates will become liable for IHT where previously they would not have been. In addition, it’s estimated that around 213,000 estates will now face a higher IHT bill.
Even if you have an existing estate plan in place that considers IHT liability, it may be worthwhile reviewing it in light of the changes.
Please note, this information is based on our current understanding of HMRC rules and expected regime change. How IHT rules affect your will be based on your personal circumstances, and they could be subject to change in the future.
To understand whether you’ll be affected by the IHT changes, you need to start with when you pay IHT.
Roughly 1 in 20 estates are liable for IHT, and if the total value of your estate, which includes property, savings, investments, and personal possessions, is under certain thresholds, no IHT will be due.
In 2026/27, the nil-rate band is £325,000. If the value of your estate is below this threshold, it won’t be liable for IHT.
In addition, the residence nil-rate band is £175,000 in 2026/27. Most estates can use this allowance if they leave their main home to a direct descendant.
However, the residence nil-rate band may taper if your entire estate is worth more than £2 million. For every £2 that the value of your estate exceeds the £2 million threshold, the residence nil-rate band will reduce by £1. As a result, the allowance will be completely withdrawn if the value of your estate is more than £2.35 million
If you’re married or in a civil partnership, you can pass on your entire estate to your partner without the assets being liable for IHT, and you can also pass on unused allowances. As a result, a couple planning together may be able to pass on up to £1 million before IHT is due.
While the threshold may seem high, once you factor in large assets, such as your pension or property, it may be easier to exceed it than you expect.
Furthermore, the IHT thresholds are frozen until at least April 2031. So, if the value of your assets rises, your estate might be pushed past the IHT threshold without you realising.
The good news is that there are often steps you can take to mitigate an IHT bill, including when the rules change and your pension is added to the calculations.
1. Spend your pension
Perhaps the simplest way to avoid paying IHT on your pension is to spend it. After working hard to save for this chapter of your life, you could find you’re in a position to make some indulgent purchases, from exotic holidays to golfing equipment.
Remember that your pension might need to provide an income for the rest of your life, and it’s not uncommon for a retirement to span several decades. So, it’s important to balance spending now with long-term financial security, which a financial plan may help you achieve.
2. Purchase an annuity
If you have a defined contribution pension, you can access it in several ways. One option that could be effective from an IHT perspective is purchasing an annuity.
An annuity is a financial product you buy that then provides an income for the rest of your life. In some cases, the income provided may increase in line with inflation or a portion may continue to be paid to your partner if you passed away first.
You can use all or part of your pension to purchase an annuity. As the money is taken out of your pension, it’s effectively removed from your estate, which might reduce IHT liability. However, there is a risk that you’d pass away before getting the money back through the income.
Buying an annuity is often an irreversible decision, so it’s important to weigh up all your options when accessing your pension.
3. Pass on pension wealth to loved ones during your lifetime
If passing on wealth to loved ones is important to you, you could do so during your lifetime.
Gifting wealth from a pension could support your beneficiaries and potentially reduce an IHT bill by reducing the value of your estate.
However, not all of your gifts are considered immediately outside of your estate when calculating IHT. In some cases, gifts may be included in the calculations for up to seven years after they are given; these are known as “potentially exempt transfers”.
Some gifts are immediately outside of your estate for IHT purposes, making them useful if you want to mitigate an IHT bill. In 2026/27, they include:
Another factor to consider is how you’ll be taxed when withdrawing money from your pension. If your total income exceeds the Personal Allowance (£12,570 in 2026/27), withdrawals may be subject to Income Tax.
As a result, large withdrawals for gifts could be taxed and potentially push you into a higher tax band.
Again, it’s important to consider your long-term financial security. Gifting too much could leave you in a financially vulnerable position later in life. Making gifts part of your wider financial plan could give you confidence in your finances now and in the future.
There are other ways you might reduce or mitigate a potential IHT bill, such as passing on wealth through a trust or leaving a portion of your estate to charity.
Please get in touch to talk about your objectives and how we could help you create an estate plan that’s tailored to your needs.
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 Financial Conduct Authority does not regulate Inheritance Tax planning or trusts.
More than half of UK pension savers are also building up retirement savings outside their pension, according to a MoneyAge article (22 December 2025). As pensions provide some useful benefits when saving for retirement, these savers could be missing out.
The survey found that people saving for retirement outside a pension were using a mix of cash savings, Stocks and Shares ISA, buy-to-let property, and other investments with the aim of building long-term wealth.
For some people, these options could be appropriate for their financial circumstances and retirement goals. However, they might also have overlooked the benefits of using a pension.
1. Your employer will contribute to your pension
If you’re an employee aged over 22 earning more than £10,000 a year, your employer must auto-enrol you into a pension. If you don’t opt out, your employer will need to contribute to your pension on your behalf at a minimum rate of 3% of your pensionable earnings, though they may contribute a higher percentage.
Should you choose not to save through a workplace pension, you’ll miss out on this additional money that could support you in retirement.
2. Pension contributions benefit from tax relief
To encourage workers to save for retirement, the government offers tax relief on pension contributions. In effect, this means some of the money you’ve paid in Income Tax is added to your retirement savings.
Pension tax relief is provided at your marginal tax rate. Usually, the basic rate is automatically added by your pension provider, and you can use a Self Assessment tax return to claim the remaining amount if you’re a higher- or additional-rate taxpayer.
In 2026/27, the amount you can contribute to a pension without facing a charge is usually £60,000 (the Annual Allowance) or 100% of your annual earnings, whichever is lower. If you’ve already taken an income from your pension or you’re a high earner, your pension Annual Allowance could be as low as £10,000.
It’s important to note that tax relief and other allowances may be dependent on your personanal circumstances and are subject to change.
3. Your pension is usually invested
The MoneyAge article notes that people are twice as likely to save for retirement in cash (43%) outside a pension compared to a Stocks and Shares ISA (21%).
While cash can be tempting to avoid exposure to investment risk, the interest from a savings account could be lower than investment returns. As many people save for retirement over a long-term time frame, low-yielding cash accounts could mean they retire with significantly smaller pots than they would have if they had invested.
Normally, the money you deposit into a pension will be invested with the aim of delivering long-term growth. While returns cannot be guaranteed and values may fall as well as rise, investing might provide an opportunity for growth that outpaces inflation or cash interest.
4. Investments held in a pension aren’t liable for Capital Gains Tax
When investments aren’t held in a tax-efficient wrapper, such as a pension, the gains you make when you dispose of them could be liable for Capital Gains Tax (CGT). As a result, a pension could be an effective way to invest for your retirement.
Again, tax liability may be affected by your personal circumstances and the tax regime may be subject to change in the future.
There are times when using a pension to save for retirement might not be the most appropriate option.
For example, if your financial circumstances could mean you need access to the money in the short or medium term, a pension would lock it away. As a result, you might feel more comfortable holding the money outside of a pension.
Alternatively, you can’t usually access your pension savings until you turn 55 (rising to 57 in 2028). So, if you’re hoping to retire sooner than that, you might need to establish savings outside of a pension to bridge the gap, however any structure outside of your pension would not attract tax relief.
Many people in retirement will draw from multiple sources to create an income stream that suits their needs and financial situation. Contributing to a pension doesn’t mean you can’t build retirement wealth elsewhere or vice versa.
If you’re unsure about your options for saving for retirement, please get in touch. We can assess if a pension might be right for you, as well as explore the alternatives.
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.
Workplace pensions are regulated by The Pensions Regulator.
Planning your finances without clear goals is like setting off in your car without a destination – you might be able to keep moving, but you can’t be sure you’re heading in the right direction.
That’s why goal-setting is at the heart of effective financial planning. However, not all goals are created equal.
You can probably call to mind a time you set a resolution or objective with every intention of keeping it, only to give up after a few weeks. This probably had little to do with your self-discipline and commitment, and a lot to do with how you structured your goals.
Did you have a laser focus on what you wanted to achieve and why? Or were you working towards vague, overly ambitious intentions that you were only too glad to abandon?
The truth is that setting goals you’ll actually stick to, and that move you closer to where you want to be, is a skill like any other.
Thankfully, there’s a ready-made goal-setting framework that could transform your approach to financial planning. If you want to turn vague intentions into clear plans, consider following the five steps of SMART goal-setting – specific, measurable, achievable, relevant, and time-bound.
Download your copy here: SMART goals: 5 steps to effective financial planning
If you’d like to know more about how we can help you plan to achieve the goals that matter to you, 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.
All information is correct at the time of writing (March 2026) and is subj
The amount of Capital Gains Tax (CGT) investors collectively pay is set to soar over the next six years.
According to a Telegraph article (11 December 2025), the Office for Budget Responsibility (OBR) has adjusted its estimate for how much will be raised through taxes, including CGT.
The OBR now predicts revenue from CGT will reach £114 billion between the 2025/26 tax year and 2029/30 – an increase of £6 billion on its previous forecast. Indeed, by 2030, the levy is expected to double in just six years, generating £30 billion annually for the government.
Investments that aren’t held in a tax-efficient wrapper may be liable for CGT when they are disposed of. However, you should note your personal circumstances may affect your tax liability and tax rules may be subject to change in the future.
Read on to find out the CGT essentials investors need to know.
CGT is a tax on the profits you make when you dispose of certain assets, including:
It’s important that investors and others disposing of assets are aware of the CGT rules to avoid an unexpected bill.
The rate of CGT you’ll pay will depend on your tax band and any other income you’ve received during the tax year.
In 2026/27, the CGT rates are:
As an investor, there are allowances and other ways to improve tax efficiency that could be useful when managing your CGT liability.
You should also note before investing, that returns cannot be guaranteed and you may not get back the full amount you invested.
Each tax year, you have a tax-free allowance known as the “Annual Exempt Amount”. In 2026/27, this is £3,000 for individuals. The portion of your gains that falls below this threshold will not be liable for CGT.
You cannot carry forward your unused Annual Exempt Amount to a new tax year.
As a result, you might want to consider spreading the disposal of your assets across several years to use the Annual Exempt Amount to reduce your tax bill.
In addition, you can pass assets to your spouse or civil partner without CGT being due. As the Annual Exempt Amount is an individual allowance, doing this and planning as a couple could mean you can make up to £6,000 in gains each tax year before tax is due.
As an investor, there are tax wrappers you could use to improve your tax efficiency and potentially reduce a CGT bill.
Investments held in a Stocks and Shares ISA aren’t subject to CGT. In 2026/27, you can place up to £20,000 into ISAs during the tax year.
Similarly, investments held in your pension aren’t subject to CGT, and you may also be able to claim tax relief on your contributions for a further boost.
However, pensions are a long-term investment, and you can’t usually access the money held in one until you’re 55 (rising to 57 in 2028). As a result, a pension may not be suitable if you plan to use the money before you retire or if you don’t have other assets you can draw on in an emergency.
We may be able to help make tax efficiency part of your financial plan by identifying allowances and strategies that suit your needs. If you have any questions about CGT or other taxes that affect your personal finances, please get in touch.
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 Financial Conduct Authority does not regulate tax planning.
Financial shocks can have a devastating effect on your short- and long-term finances. While you can’t remove the unexpected from your life, it is possible to be prepared, and a cashflow model could help you identify how.
A cashflow model is a powerful tool that financial planners can use to show how your wealth might change over the long term in various scenarios.
To start, you’ll input essential information, such as the value of your assets, your income, and how you use your money each month. Then you can make certain assumptions, such as the rate of inflation, potential investment returns, or your expected retirement date, to see how your wealth might change over the years.
It’s important to note that the results of a cashflow model cannot be guaranteed, as they rely on the data added and assumptions that might prove inaccurate. However, they can provide a valuable way to visualise your long-term wealth and assess the effect of your decisions.
One of the reasons cashflow modelling is useful is that once it’s set up, you can adjust the assumptions to model different scenarios.
If you’re concerned about financial shocks, you can effectively use it to stress-test your finances and as an early warning system. Identifying potential gaps sooner could mean you’re in a position to close them.
As a result, cashflow modelling could help you manage worrisome “what if?” questions.
Imagine you’re the main income earner for your household and you’re worried that your family wouldn’t be able to cope if you were unable to work.
You can use a cashflow model to stress-test your finances and show how long they would last without an income. For example, you might assess how quickly your emergency fund would be depleted.
Armed with this information, you might be able to address potential weak spots in your finances.
In this case, if you found your emergency fund would only cover essential bills for two months, you might start by saving more to build it up. In addition, you may consider taking out appropriate financial protection that would provide an income if you couldn’t work due to an accident or illness, to further improve your financial resilience.
Please note that financial protection plans typically have no cash in value at any time, cover will cease at the end of the term, and you’ll need to pay premiums to maintain the cover. Cover is also subject to terms and conditions and may have exclusions.
There are many other types of financial shocks where a cashflow model could be useful too, from a period of downturn leading to falling investment values to a large, unexpected household bill, such as needing to replace your home’s roof.
If you experience a financial shock that you hadn’t previously considered, a cashflow model could still be useful.
It can be difficult to assess the long-term effect of a shock. By adding it to your cashflow model, you may be able to understand whether your goals remain on track and whether any adjustments are necessary.
Imagine you’d previously planned to retire at 65 and calculated that you’d have enough to take a sustainable income that would afford you the lifestyle you’ve been looking forward to.
However, ill health means you now need to bring forward your retirement by three years. This might not be something you’ve considered before. You’re now unsure whether you’ll be financially secure later in life or if you need to reduce your outgoings in retirement.
Updating your cashflow model following this life event could enable you to assess the long-term effects. It could give you the confidence to make decisions, even when life is unpredictable.
If you’d like to understand if you’re vulnerable to financial shocks and how you might improve your resilience to them, please get in touch.
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 Financial Conduct Authority does not regulate cashflow modelling.
When you’re establishing a business, it can be easy to neglect your personal finances. You might feel that you don’t have the time, or you simply plan to use your business to support long-term goals. Yet being proactive and working with a financial planner could be beneficial.
Here are five reasons to work with a financial planner as a business owner.
Some of your goals are likely to be related to your business and its success. Yet you likely have many others that aren’t related to your company, which you could be neglecting if you don’t review your personal finances.
If you have children, you might want to create a nest egg to support them when they study at university or to act as a deposit when they buy a home. Or perhaps you’d like to travel extensively when you retire and will need a pot to draw from.
A financial plan will focus on your personal goals, so you might take steps towards them alongside running your business.
You might already work with an accountant to manage your business’s finances and identify tax breaks. A financial planner could do the same for your personal finances.
For example, if you’re investing for a long-term goal, have you used your ISA Annual Allowance to reduce your Capital Gains Tax bill? Are you claiming back all the tax relief you’re entitled to when contributing to a pension?
A tailored financial plan could help you make use of appropriate tax allowances so your money goes further.
Please note that tax rules and allowances are subject to change, and your personal circumstances may affect your liability.
Life is full of unexpected events, and business can be unpredictable too.
A financial plan will usually include identifying potential weaknesses in your finances, so you’re able to take steps to protect yourself from financial shocks. For instance, you might consider how you’d cope if you faced a large, unexpected expense or serious illness.
By preparing for these financial shocks, you can feel more confident in your overall finances, which could be beneficial for your business as well. You might want to provide a cash injection to your firm, and understanding your personal finances could mean you’re able to weigh up the options with confidence.
Even if you hope to remain in your business for many more years, it’s worth thinking about how and when you’d like to exit. Your exit plan isn’t set in stone, but as your decision could affect tax liability, timelines, and profit, reviewing your options could be useful.
Your personal finances might influence your decision. Indeed, a survey reported in IFA Magazine (12 January 2026) found that 19% of business owners plan to pass their companies on to family members due to Inheritance Tax.
Right now, your focus might be on the success of your business, but eventually, you might want to step away from it. If you do, having a clear financial plan that reflects your aspirations could make the transition easier.
A long-term financial plan could also be useful when you’re negotiating a sale price for your firm, as you’ll understand how much you need to live the lifestyle you want.
Arrange a meeting with one of our team to discuss how we could work together to review your personal finances and create a plan that could support your goals.
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 Financial Conduct Authority does not regulate tax planning or estate planning.
