Competitors running down the hill at the 2019 cheese-rolling event at Cooper’s Hill, Gloucester.

The UK has a long history of sports and games, from jousting or local folk games to the emergence of modern sports like football and tennis in the 18th and 19th centuries.

On 30 September, National Sports Heritage Day celebrates sporting culture and aims to inspire people to be more active and try something new.

To mark the occasion, there will be special sporting events, efforts to raise awareness for local teams, and a chance to reminisce over old photographs.

While you may fondly remember the success of the 2012 London Olympics or the time your local football team played a blinder in a cup match, there are plenty of unusual sports and games that take place across the UK too.

Many of the quirky sporting traditions are now used to raise money for local charities and bring communities together. Here are six eccentric options you can watch, or even take part in!

1. World Tin Bath Championship

Every year in the middle of July, people take to Castletown Harbour on the Isle of Man to secure the coveted title of World Tin Bath Champion – and who wouldn’t want to win that? Surprisingly, it attracts entrants from all over the world!

The course is 400 metres and contestants must race to see who can cross the finish line first. But it’s not just about speed – going too fast could mean the tin bath sinks.

Going back to 1971, the charity event has become a family fun-day out with lots of novelty events taking place throughout the day. The “snake race” sees people racing around the harbour and there are attempts at human-powered flights to watch.

2. Caber toss

The Highland Games are iconic and have been part of Scotland’s culture for hundreds of years. You can find Highland Games across Scotland throughout the summer months. As well as competitions, you’ll usually find dancing, music and craft stalls.

One of the games is the caber toss. The caber is usually made from a larch tree and can be as tall as 6 metres and weigh around 70 kilograms. The competitors must toss it end over end. However, the aim isn’t to throw it as far as possible. Instead, the thrower aims to toss the caber directly in front of them in a 12 o’clock position.

It’s said the sport originated from lumberjacks tossing logs into streams to transport them, which turned into a competition among workers.

3. World Poohsticks Championship

Inspired by the game the characters play in A. A. Milne’s Winnie the Pooh, the Rotary Club of Oxford Spire organises the event every year. It’s a game you may see at other summer events across the country, and it’s also simple enough to play on a family day out.

To play, find a bridge that’s over water, and search for the perfect stick that will lead you to victory. Once all the competitors are armed with sticks, count down and toss them into the river – the stick that floats underneath the bridge fastest wins.

Around 1,000 people attend the event in Oxford each year to raise money for charity.

4. Bog snorkelling

Every August bank holiday, the small town of Llanwrtyd Wells in Wales hosts a bog snorkelling competition.

The contestants must navigate a course that’s around 100 metres long. It’s cold and dark, and while many opt to wear wetsuits, you will see some brave, or foolhardy, contestants in fancy dress or even just speedos. If the event doesn’t sound bizarre enough already, you’re also not allowed to use a recognised swimming stroke.

The current record was set in 2018 and is 1 minute 18.82 seconds – do you think you could beat that time? For people that really want a challenge, there’s a bog triathlon too.

5. Cheese rolling

The annual cheese roll at Cooper’s Hill in Gloucester has enjoyed global fame after videos were shared online.

The challenge sounds simple – chase a 9lb double Gloucester cheese wheel, and if you’re able to catch the cheese or cross the finish line first, you win. However, the steep hill and the fact that the cheese can reach speeds of up to more than 70 mph means it’s more difficult than it first appears.

The event was first written about in 1826 but the tradition is thought to be at least 600 years old. There are lots of theories about why the tradition started, from grazing rights to a ritual. Today, it attracts people from all over the world that want to take part in the quirky event.

With a 1:2 gradient, it’s not surprising that there have been plenty of injuries over the years as people race down the hill – this is definitely a competition you should enter with caution.

6. Pancake racing

Shrove Tuesday might be associated with tucking into pancakes to mark the start of Lent, but have you ever taken part in a pancake race?

Pancake racing events are often found in villages or towns as part of community events, and their origins go back to Olney, Buckinghamshire, in 1445. The Olney event is open to women over the age of 18 that have lived in the town for at least three months. To compete, they must wear a skirt, apron, and head covering.

As the name suggests, you have to run a race while carrying a frying pan with a pancake in it, stopping along the way to flip it – predictably, some pancakes make it to the finish line more intact than others!

An older couple using a laptop.

Being mortgage-free before you retire is a common goal. It can be difficult to secure a new mortgage deal once you pass retirement age and retiring debt-free means you can make the most of the next stage of your life.

However, high property prices, longer mortgage terms, and other factors mean that millions of people in the UK could retire with outstanding mortgage debt.

If you’re not sure if you’ll pay off your mortgage before you want to retire, there are options.

12% of retirees had outstanding mortgage debt when they retired

Retiring with a mortgage may be more common than you think. According to an LV= survey, around 12% of people that have already retired did so with a mortgage.

The average amount remaining on a mortgage at retirement is £43,000, but 11% had more than £100,000 outstanding.

As house prices have increased significantly over the last few decades, and many people are choosing to pay their mortgage over a longer period, it’s an issue that is likely to affect even more people in the future.

Among those that haven’t retired yet, a third don’t think they’ll have paid their mortgage by the age of 65. And 9% aren’t sure they will ever be able to pay off their mortgage.

It may be something you’re worried about, but there are options available.

If retirement is still several years away, you may be able to pay off or reduce the amount you owe on your mortgage.

With a repayment mortgage, you pay a proportion of what you owe each month. So, assuming you’ve kept up with repayments, when you reach the end of the term, you will own the house outright. Check how long your mortgage term is to understand when you could be debt-free if you maintained current repayments.

If you can, overpaying your mortgage can help you pay off the debt sooner. The overpayment will go to reducing the debt rather than paying off interest.

Some mortgages will charge a fee if you overpay above a certain amount, so you should check the terms of your deal first.

If you don’t think you’ll be able to pay off your mortgage before you retire, here are five options to weigh up.

5 useful options if you’re nearing retirement with a mortgage

1. Continue to repay your mortgage in retirement

A mortgage that extends beyond retirement age can be difficult to secure, but not impossible.

Many lenders will now consider applications from people in their 70s or even 80s. However, you will still need to meet eligibility criteria, including passing affordability checks. This means you’d need to prove you can keep up with repayments.

If you have a reliable income in retirement, such as from a defined benefit pension, this may be an option.

A mortgage broker can help you understand the criteria used by different lenders and which are suitable for older borrowers.

2. Delay retirement

According to the LV= survey, half of people that aren’t sure if they’ll be mortgage-free before they retire plan to continue working in some way.

This flexible approach to retirement could mean you’re able to enjoy the work-life balance you want while still receiving an income.

Some people may plan to continue working full-time until their mortgage is fully paid, while others may choose to work part-time or move into a less demanding position.

Understanding your budget and priorities can help you assess if this is the right decision for you.

3. Downsize

Almost a quarter of people that don’t think they’ll pay off their mortgage before retirement plan to downsize.

Selling your current home and purchasing a cheaper property can mean you’re able to retire debt-free. You may even have some extra cash to put towards your retirement.

While the property market is slowing down, prices are still at a record high. According to the Halifax House Price Index, the average house price in May 2022 was almost £290,000. So, you may be able to sell your home for more than you expect. However, you’re likely to need to set aside a larger budget to purchase your next home too.

4. Use your pension tax-free lump sum

If you have a defined contribution pension, you can usually access your savings from age 55, rising to 57 in 2028. You can often take out up to 25% of your pension tax-free. This could be a useful way to clear your mortgage debt as you retire.

However, you should think carefully before you do this. How would removing a lump sum from your pension affect your retirement income for the rest of your life?

While you may retire mortgage-free, it could mean you struggle financially as your income from your pension may not meet your needs.

If you’re considering this option, speaking to a financial planner can help you understand the long-term consequences.

5. Take out a lifetime mortgage

A lifetime mortgage could mean you’re able to retire and stay in your home without having to make mortgage repayments. However, there are drawbacks that you need to carefully consider.

This type of mortgage allows you to take some of the equity you’ve built up and receive a lump sum, which, in turn, you can use to pay off your outstanding debt.

You don’t have to make repayments with a lifetime mortgage. Instead, the interest is rolled up. The debt would be paid when you pass away or move into long-term care, typically through the sale of your home.

A lifetime mortgage can affect the wealth you leave behind, and it may also affect means-tested benefits you may be entitled to.

Get in touch if you have any questions

If you have questions about your mortgage or the steps you can take if you’re nearing retirement with mortgage debt, please contact us. We can answer questions you may have about the different options.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Equity Release will reduce the value of your estate and can affect your eligibility for means-tested benefits.

A happy mother and daughter sit at a desk working on a laptop together.

The day that you send your child or grandchild off to university can bring up mixed feelings. There’s pride and joy at their accomplishment, but also fear and worry as they venture out into the world on their own for the first time.

There’s also the issue of their financial security, with the National Student Money Survey estimating the individual cost of going to university for the average student is £57,000.

Providing your loved one with a few pieces of key advice ahead of university can help them to deal with any financial issues they may encounter. It can also help to relieve any money-related stress and allow them to better focus on their studies.

So, here are seven lessons to share with your children before they head off this autumn.

1. Why students need to understand how their tuition and maintenance loans work

Your child or grandchild can normally apply for two key loans each academic year, one for tuition and another for general maintenance.

Tuition loans cover course fees and are paid directly to the university, so they aren’t something you or your child need to worry about in the short term.

Maintenance loans are meant to provide for the basic living expenses of students. In England, they are paid in three instalments across the academic year, typically at the start of each term.

For the 2022/23 academic year, students living away from home can receive maintenance loans of up to £9,706 (£12,667 in London). The exact figure is determined by means-testing that is largely based on parental income.

The government website provides a full breakdown of how maintenance loans are assessed.

Additional support can be found through scholarships, grants, bursaries, and hardship funds. These usually depend on a student’s personal circumstances, and they can typically find out more information through their respective university.

Understanding how much they will be paid and when it will arrive is essential for budgeting for the academic year. Maintenance loans don’t stretch very far and will mostly cover rent and utilities.

It may be advisable to pay essential bills in lump sums at the start of each term, even if monthly payments are an option. This can reduce the risk of overspending on non-essential items and leaving key bills unpaid.

2. The pros and cons of overdrafts and credit cards

Student overdraft facilities and credit cards offer plenty of positives for students trying to make ends meet.

Student credit cards can be a useful tool in emergencies, but your child or grandchild may end up paying high interest rates and monthly fees that can be difficult to manage on a student budget.

Overdraft facilities, while often interest-free for students, can leave them with large debts. This could place extra financial pressure on them after graduation.

Understanding the potential pitfalls associated with credit facilities can be a helpful money lesson.

Talk to your child or grandchild about how interest on debt can accrue over time. It may also be instructive to explain how making only the minimum payment could mean it will take years to pay off debt.

Money Saving Expert shares a useful example. Assuming the minimum payment is 1% plus interest or £5, whichever is higher, it would take 27 years to pay off £3,000 of credit card debt. The total interest paid would add up to almost £4,000. This assumes no further spending is made on the credit card and that the interest rate is 17.9%.

3. Why they should be wary of buy now, pay later and other instalment-based options

According to Bloomberg, buy now, pay later (BNPL) apps such as Klarna are one of the fastest growing payment options among Generation Z.

They typically offer a range of alternatives to traditional purchases, such as:

  • Buy now, pay 30 days later
  • Pay in three instalments
  • Longer-term payment plans for larger purchases.

BNPL can be highly beneficial in reducing short-term cashflow issues for students and could help spread the cost of big-ticket items such as a new laptop.

However, BNPL is still a largely unregulated market and doesn’t provide consumers with the same protection as other borrowing options.

Talk to your child or grandchild about how apps like Klarna run the risk of damaging your child’s credit score, and how they could encourage them to spend beyond their means.

4. The advantages of group plans, discounts, and other potential saving opportunities

Collective planning can be a vital part of a student’s financial arsenal. Communicating with housemates and reaching mutually beneficial agreements can spread some of the additional costs outside of rent and utilities.

So, encourage your child or grandchild to find ways of partnering with others to reduce their total expenses.

For example, making essential household purchases (toiletries, cleaning supplies, and food staples) from a communal pot can reduce the total cost. Students can even look at planning weekly meals together to reduce waste and make every penny count.

If you have a family phone plan for your household then you might be able to help reduce any mobile phone charges, especially if devices need replacing in the future.

Similarly, TV or music subscriptions can be collective agreements, whether that’s shared family streaming services or an agreement among housemates.

Students also have a wide range of discounts available to them, from supermarket savings to the 16–25 rail card. You can help your child or grandchild seek out these savings.

5. The importance of factoring in insurance

Students should carefully consider what kind of insurance they’ll need while they are away from home. It is advisable for all students to look at contents insurance.

A study by Endsleigh Insurance estimates that students travel to university with more than £2,000 worth of hi-tech gadgets. So, contents insurance can provide a valuable safety net in the event of theft or damage.

You may be able to add this cover to your own home insurance policy. Teaching your child or grandchild about the benefits of insurance can be a valuable money lesson, so make sure you chat through their needs and whether they have the right cover in place.

6. The benefits of a part-time job

Ultimately, there may come a point where your child or grandchild needs to make up an income shortfall. If you’re financially able to assist your child, it will enable them to focus completely on their studies.

However, for many households, students will need part-time jobs to make up the difference. Having a conversation with your loved ones about potential job opportunities, before they head off to university, may help them make an informed decision.

Sharing valuable hindsight from your own life experiences and pointing them in the direction of useful information can help them select the most appropriate part-time job for their studies and goals.

7. How to carefully plan and budget

Finally, unforeseen emergencies can hit at any time. As a relative, you’ll feel the urge to bail your child out if this occurs, but it would be smart to advise them to keep a “rainy day” fund set aside.

Work out what their outgoings are likely to be every week or month and create a spreadsheet to help them keep on top of their expenses. Learning to budget will be one of the key financial lessons they will learn while at university.

Get in touch

If you have a child or grandchild heading off to university and you’d like advice on how to manage the costs, we can help. Whether you want to cover some of the essential costs or start saving for younger children, putting a plan in place can give you peace of mind.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

A father holding his daughter’s hand as they walk.

As a trustee, you may be unsure about what your responsibilities are and the steps you need to take. If you’re acting as a trustee, here are some of the essential things you need to know.

Being a trustee means that you’re taking responsibility for money or assets that someone, known as the “settlor”, has placed in a trust for someone else, known as the “beneficiary”. You may have to make decisions about how the assets are used or when they are distributed.

There are many reasons why someone may set up a trust. It can be an efficient way to pass on wealth, create a family legacy, or give assets to those who cannot manage them themselves, such as children. Perhaps you’re also thinking about setting up a trust to pass on or protect your own wealth.

So, if you’re acting as a trustee, here are seven essential things you need to know.

1. The decisions you make must be in the best interests of the beneficiary

As a trustee, you must act in the best interests of the beneficiary. This means you must consider their needs, as well as the trust agreement, when you’re deciding how to use or distribute the assets.

If you don’t act in the beneficiary’s best interests, you could be taken to court and face penalties. As a result, it’s a good idea to keep records of your decisions and notes of the reasons why, if necessary.

It’s important to note that you won’t be liable if the value of the assets falls, as long as you acted in the best interests of the beneficiary. So, if you invested the assets in a risk-appropriate way and the value of the investments fell, you would not face penalties.

2. You won’t benefit from the trust yourself

Unless the trust specifically makes provisions for you, you won’t benefit from the trust yourself. This means you cannot take an income from the trust for the work you’re doing.

However, you can claim some expenses. You must incur these costs through your responsibilities of managing the trust. Again, you should ensure you keep clear records of any expenses you want to claim.

3. You should read the trust agreement carefully

How much freedom you have when making decisions will depend on the type of trust and the trust agreement the settlor has written.

If you’re managing a discretionary trust, you will usually be able to use your own judgement when deciding how and when to use the assets. In other cases, the settlor may have left instructions or imposed restrictions that you’ll need to follow.

The trust agreement will set out what you can and can’t do, so it’s something you should read carefully and refer back to when making decisions.

4. You may be responsible for paying tax the trust is liable for

Some trusts are liable for tax, and as a trustee, you’ll need to understand what tax is due and ensure it’s paid.

Depending on the assets held in a trust and their value, a trust could be liable for Income Tax, Dividend Tax, and Capital Gains Tax, as well as others. However, there may be allowances you can use to reduce the tax bill.

Understanding the tax liability can be complex but it’s a crucial step if you’re to avoid unexpected bills. We can help answer your questions.

5. You may need to register the trust

From 1 September 2022, many trusts in the UK will need to be registered with the Trust Registration Service. As a trustee, this will be your responsibility.

All “express trusts” in the UK, whether or not they are liable for tax, must be registered unless they’re on the exclusion list.

An express trust is created by a settlor, including those created in a will, rather than those created through a court decision or the law. As a result, it’s likely you will need to register the trust you’re responsible for.

6. You will be responsible for keeping track of records

Keeping track of records is an important part of a trustee’s role, from showing any tax liability to how you’ve distributed assets. This evidence can be invaluable if there are ever any disputes with the beneficiary and for tax purposes.

You should keep the necessary records for at least six years, but it’s a good idea to keep them as long as possible.

7. You can ask for advice

Managing a trust can be overwhelming and a lot of responsibility. Remember, you don’t have to do it all alone and you can seek advice when you need to.

Speaking to a legal professional about what decisions you can make can put your mind at ease. When you’re making financial decisions, a financial professional can also give you confidence that you’re making decisions that are appropriate for the beneficiary.

If you’re a trustee and have questions about your role or would like to set up a trust yourself, please contact us.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate trusts or estate planning.

A grandfather using a laptop with his adult son and grandchild.

If you have an estate plan, you shouldn’t simply forget about it. Instead, regular reviews can help ensure it continues to reflect your wishes and circumstances.

Sometimes you may have a specific reason to review your estate plan.

Life milestones can often cause you to reflect on the steps you’ve previously taken. Experiences like getting married or divorced, or welcoming children or grandchildren into your family may mean you need to make changes to your estate plan.

However, it’s advisable that you schedule regular reviews, not just after major life events like these.

Over time, your wishes or circumstances can gradually change; a plan that met your needs five years ago, may not be suitable now.

So, if you’re ready to review your estate plan, these five questions can help you assess if it needs updating.

1. Have your assets or the value of your estate changed?

A good place to start is taking stock of what your estate consists of.

Your estate refers to all your assets. It could include cash savings, investment, property, and other items. Since you made an estate plan, you may have acquired new assets or disposed of others.

As well as taking stock of your assets, you should review the estate’s value – you may be surprised by how it’s changed.

According to the Land Registry, between May 2017 and May 2022, the value of the average property in the UK increased by more than £60,000. In contrast, you may have depleted other assets to fund your lifestyle.

This step is important for several reasons. Understanding your estate is necessary for effectively distributing it, and if your estate has changed, you may want to update your wishes.

The value of your estate will also affect your Inheritance Tax (IHT) liability.

2. Do you need to consider Inheritance Tax?

If the total value of your estate exceeds certain thresholds, your estate could be liable for IHT. With a standard rate of 40%, it can significantly reduce what you leave behind for loved ones.

For the 2022/23 tax year, you can pass on up to £325,000 without IHT being due. This is known as the “nil-rate band”.

If you leave some types of property, including your main home, to children or grandchildren, you can also take advantage of the residence nil-rate band. This is £175,000 for the 2022/23 tax year.

So, you can often leave up to £500,000 without needing to consider IHT.

If you’re married or in a civil partnership, you can pass on unused allowances. So, as a couple, you may be able to pass on up to £1 million without a IHT liability.

If the value of your estate exceeds these thresholds, there are often steps you can take to reduce an IHT bill, but you need to be proactive. If you think your estate could be liable for IHT, please contact us.

3. Does your will still reflect your wishes?

A will is the only way to ensure that your wishes are carried out when you pass away. As a result, a regular review of your will is vital.

If you decide your will needs updating, you have two options.

The first is to write a new will. This should clearly state that it revokes all previous wills and you should destroy all copies of your old will.

The second is through a codicil, which makes an official alteration to an existing will. A codicil can be useful if you want to make minor changes to your will, such as changing the executor or adding a grandchild as a beneficiary.

4. Do you have a plan for your later years?

While estate planning often focuses on what you’ll leave behind for loved ones, ensuring your long-term security is just as important.

If you don’t already have a Lasting Power of Attorney (LPA) in place, it’s a step you should consider.

An LPA gives someone you trust the ability to make decisions on your behalf if you can’t. An LPA can either cover health or financial decisions. While losing mental capacity isn’t something anyone wants to think about, naming an LPA can ensure a loved one can provide support if it does happen.

You should also consider potential care costs. If you needed care later in life, do you have a fund to pay for it? And how would care costs affect other parts of your estate plan?

Setting out a plan now means you can think about what your wishes would be, and set aside provisions accordingly.

5. Have allowances or reliefs changed since you made your estate plan?

The government may make changes to allowances and even introduce or remove reliefs.

Ensuring your estate plan reflects the current rules means you can pass on as much wealth as possible to your loved ones. If you overlook this step, you could miss out on opportunities.

It can be difficult to keep up to date with tax changes and understand which ones make sense for you. Working with an estate planner means you can have confidence in the steps you take and know that your plan will accurately reflect the current rules.

Please contact us to review your estate plan

If you’d like an expert to review your estate plan, please contact us. We’ll work with you to craft a plan that matches your needs, goals, and estate.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing.

An older couple walking through a park.

For months, you’ve probably heard about the cost of living crisis and how it means your budget needs to stretch further. However, if you collect the State Pension, the high rate of inflation could mean it increases by a record amount in the 2023/24 tax year.

The State Pension benefits from something known as the “triple lock”. This means that the amount you receive increases each tax year by one of the three measures below, whichever is higher:

  • Average wage growth year-on-year for the May to July period
  • Inflation as measured using the Consumer Price Index (CPI) in the year to September
  • 2.5%.

So, the State Pension increases by at least 2.5% each tax year. It’s designed to help preserve the spending power of pensioners as the cost of goods and services can change dramatically during your retirement.

The exception to the pension triple lock was the 2022/23 tax year. Under the triple lock, the State Pension would have increased by average wage growth, which was 8.8%. However, it was temporarily suspended, as the government said the Covid-19 pandemic and furlough had skewed the data. 

While there have been some concerns that the government would suspend the triple lock again, as inflation is much higher than normal, it has been reinstated.

The largest triple lock increase to date was 5.2%

The government introduced the triple lock in the 2011/12 tax year, and, so far, the highest annual increase is 5.2%. The table below shows how the State Pension has increased each tax year.

The rise for the 2023/24 tax year is likely to be based on September’s inflation rate, and it could be significantly higher than the previous rises.

Several factors mean that inflation is at its highest level in 40 years. The lingering effects of the pandemic and lockdowns mean that some materials and goods are in short supply, which is pushing prices up. Coupled with this, the war in Ukraine is also affecting the global economy, especially food and energy prices.

This led to inflation of 10.1% in the 12 months to July 2022, according to the Office for National Statistics. The Bank of England (BoE) has said it expects inflation to hit 13%.

So, there’s a real chance that the September inflation rate, and triple lock increase, will be in double digits. For pensioners, that could mean a record boost to the income they receive from the State Pension.

How much you receive from the State Pension depends on your National Insurance record. Assuming you have 35 qualifying years of National Insurance contributions (NICs), you’re entitled to the full State Pension, which is £185.15 a week (£9,627.80 a year) in 2022/23.

As a result, a 10% increase to the State Pension would see an annual boost of more than £950 for those receiving the full amount.

If you have fewer than 35 years on your NICs record, you will receive a proportion of the State Pension. You will still benefit from the triple lock increase each tax year.

Bear in mind that you’ll usually need at least 10 qualifying years on your NICs record to get any State Pension.

How the triple lock helps you maintain your lifestyle in retirement

The triple lock is one of the key reasons why the State Pension is an important part of your retirement plan.

Even when inflation is relatively low, it affects your spending power. Over the decades you could spend in retirement, this adds up. An income that afforded you a comfortable lifestyle at the start of retirement may not stretch as far in your later years.

Let’s say you retired in 2001 with an income of £20,000 a year. Over the next 20 years, inflation averaged 2.1%, according to the BoE’s inflation calculator. To simply maintain your spending power, you’d need an income of more than £30,000 by 2021.

Now imagine the effect that higher rates of inflation, like those we’re experiencing now, could have on your outgoings.

If you don’t consider inflation when planning for your retirement, you could face challenges in your later years.

The triple lock means you have a reliable base income that will increase each tax year.

You should also consider how inflation may affect your other sources of income and what steps you can take to maintain your spending power.

Investing a proportion of your wealth can mean the value of your assets continues to grow throughout retirement. It may allow you to take a greater income in the future, although investment returns cannot be guaranteed.

Alternatively, you may choose to purchase an annuity, which would deliver an income for the rest of your life. The income paid by some annuities will rise each year in line with inflation.  

There are often many options you can weigh up to make inflation part of your long-term retirement plan. If you have questions about the steps you could take or would like to review your current plan, please contact us.

Please note: This blog is for general information only and does not constitute advice. 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 results.

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. 

Buy-to-let properties can provide an additional income stream and help you to support your goals. As a result, becoming a landlord is something you may have thought about.

For example, you may want to purchase a buy-to-let property to diversify your assets or provide children with an inheritance. One of the most common reasons is to fund retirement.

However, it’s also common to have concerns about buy-to-let. You may worry about understanding the regulations and tax requirements if you become a landlord.

If you’re thinking about investing in a property, there are some important things to consider first. This guide explains some of the essential things you need to know, including:

  • How a buy-to-let mortgage works
  • What taxes you may need to consider as a landlord
  • How to reduce tax liability
  • What to consider when you’re choosing a buy-to-let property
  • And more…

Download your copy of ‘Your complete guide to buy-to-let’ to learn more.

If you have any questions about the contents of the guide or would like to discuss your buy-to-let plans, please contact us.