Three women eating pizza in an exotic location

Embarking on a holiday is about more than simply sightseeing – it’s also your chance to experience new and tantalising local dishes from around the world.

An increasing number of people worldwide enjoy exploring exotic flavours during their time abroad. Acorn Tourism Consulting states that food tourism is one of the world’s largest and fastest-growing tourism markets today, with 95% of travellers seeking a positive food activity while on holiday.

If you’re a self-proclaimed foodie who savours any opportunity to sample local delicacies and immerse yourself in culinary delights, there are several destinations that promise to deliver on your desires. Continue reading to discover six potential locations for your next getaway.

1. Hanoi, Vietnam

If you’re seeking an array of south-east Asian street foods that use fresh and healthy ingredients, then Hanoi in Vietnam could be your ideal destination.

The city is a culinary haven, as each street corner is brimming with vibrant food stalls that promise to leave you satisfied.

For instance, a holiday to Hanoi wouldn’t be complete without tasting “bun cha”, a savoury combination of grilled pork and noodles, or “banh mi sandwiches”, baguettes loaded with marinated tofu and pickles.

Of course, this could also be the perfect chance to try Vietnam’s signature dish, “pho”, a warm noodle soup brimming with flavour.

2. Sevilla, Spain

Sevilla is a city steeped in history and tradition, and its culinary scene is certainly something to marvel at too.

Indeed, during a visit to Sevilla, you can wander through narrow cobblestone streets adorned with lush orange trees. While meandering, you’re guaranteed to pass plenty of eateries that exemplify Andalusian cuisine.

For example, you could visit one of the city’s many tapas bars, which would allow you to experience a wealth of Spanish flavours and delights, such as patatas bravas or fried calamari.

You could even indulge in some local specialities, such as the thinly sliced cured ham known as “jamon iberico”, or shrimps cooked in plenty of garlic, called “gambas al ajillo”.

3. Marrakesh, Morocco

If you are looking for a city that promises an exciting adventure as well as a new culinary experience, then Marrakesh in Morocco could be the perfect destination for you.

The bustling streets of the Red City’s walled medina contain more than tourist sites and exotic wares, as the alleyways are also home to a range of delicious Moroccan cuisines. 

You would certainly be missing out if you didn’t try several varieties of tagines while in Morocco, the slow-cooked stew that is loaded with spices and flavour.

If you have a sweet tooth then you’re also in luck, as there are several traditional Moroccan sweets, such as “baklava” and “maamoul”, that promise to leave you satiated.

To ensure you experience all the culinary delights Marrakesh has to offer, it may be worth visiting Le Trou au Mur, a restaurant that is famous for its grandmother-style Moroccan dishes, or the Royal Hotel Mansour, which is host to a number of must-visit dining spots.

4. Tokyo, Japan

While Tokyo is home to the world’s highest concentration of Michelin-starred restaurants that serve a wide range of foods, perhaps the best reason to visit the bustling metropolis is to sample its top-end sushi.

In many of Tokyo’s sushi bars, you’re guaranteed dinner and a show, as you can watch the masters at work crafting delicate rolls in an intimate setting.

Interestingly, sushi etiquette is unique in Japan, and many restaurants practise “sushi omakase”. In this style, the expert chefs select, prepare, and serve the sushi as they see fit, regardless of your interests.

However, you should see this as an honour, as you’ll be able to watch sushi masters practising an ancient culinary art.

In addition to the bustling streets and fascinating culture, it is worth visiting the Sushi Saito or Sukiyabashi Jiro restaurants in Tokyo. However, you may need to plan ahead if you do wish to visit these famous sushi bars, as they often have long waiting lists!

5. Texas, USA

It’s fair to say that in Texas, barbecue is much more than just something to eat: it’s a way of life. Indeed, unlike many people in the UK, Texans see barbecue as their opportunity to celebrate meat, smoke, and flavour, all of which are rooted in local culinary traditions.

If you’re considering a trip to the Lone Star State, a must-see culinary site is Franklin Barbecue in Austin. Here, you can sample a range of smoked meats, such as pulled pork, sausages, and, of course, brisket.

Though, just be aware that locals line up for hours to taste the meats on offer here, so you may need to arrive early!

6. Naples, Italy

Italian food is perhaps unparalleled, and while Naples could be the perfect destination for pasta fiends, pizza lovers should also consider the Mediterranean city as somewhat of a pilgrimage site.

This is because the famous margherita was reportedly first made in Naples, and eating pizza here is much like a religious experience. To ensure you taste the best pizza possible, it may be worth visiting Di Matteo, one of the oldest establishments in the city.

Even if you aren’t the biggest pizza fan, there is certainly something for everyone in Naples. Indeed, you could try some classic pasta dishes, such as “spaghetti ale vongole”, a recipe that boasts baby clams in a white wine sauce, or “orecchiette alla Genovese”, a meaty pasta delight.

And, of course, no trip to Naples would be complete without a taste of creamy gelato ice cream after every meal.

A couple meeting with a mortgage adviser.

A lender rejecting your mortgage application can be stressful and time-consuming, and it might even mean you miss out on buying your dream home. A survey has found that most high net worth individuals aren’t securing their preferred mortgage. Read on to find out why and how a mortgage adviser could help you.

According to Mortgage Solutions, 90% of corporate executives, finance professionals and entrepreneurs with average earnings of more than £510,000 were rejected for a mortgage.

Between 2019 and 2024, 84% of high net worth applicants had to accept a mortgage with a lower loan-to-value (LTV) ratio. It could mean home buyers need to put down a significantly higher deposit or adjust their budget when searching the property market.

The average LTV reduction was 20%. On a £1 million property, this reduction would mean needing to find an additional £200,000 to access a 60% LTV mortgage instead of an 80% deal.

The challenges have put off almost two-thirds of individuals with a high income from buying a home, and 56% said it discouraged them from buying an investment property. If you’re worried about the obstacles you could face when applying for a mortgage, understanding the reasons lenders reject applications could be important.

Bonuses or income in foreign currency could lead to mortgage rejection

The main reason why high net worth clients face mortgage rejection is that their income may not be straightforward.

Lenders will carry out affordability checks to assess how likely you are to maintain your mortgage payments. They’ll consider your regular income when doing this. However, if your finances are complex, a lender may not consider all your sources of income.

For example, even if bonuses make up a significant proportion of your income, a lender may not include them – or only include a proportion of them – as part of their affordability tests.

Moreover, around a third of high net worth clients said their mortgage was rejected because they receive income in a foreign currency. So, if you’re working for an overseas business or are self-employed with clients around the world, it could present difficulties.

In addition, a fifth of high net worth clients questioned said the nature of their employment, such as being a partner of a firm, led to their mortgage application being rejected.

A lender rejecting you based on your role or not taking all your income into account can be frustrating. In these circumstances, working with a mortgage adviser may be useful.

Lenders will set their own criteria, and a rejection from one doesn’t mean your home ownership plans are out of reach.

A mortgage adviser can assess the market based on your circumstances and identify the lenders that are more likely to accept your application. This could be a lender that specialises in offering mortgages to those with complex incomes.

A mortgage adviser will also be on hand to offer guidance throughout the application process. They could spot potential errors in your application or highlight where further information may be needed to make the process smoother.

When you apply for a mortgage, a lender will often carry out a hard credit check, which will remain on your credit report for two years. Several hard credit checks close together could be a red flag for other lenders. So, working with a mortgage adviser from the outset could be valuable.

A third of applications were rejected due to the property

Lenders don’t just consider your wealth when assessing your mortgage application, but the property you want to purchase too. Around a third of high net worth clients surveyed said the property they wanted to borrow against led to rejection.

One of the key property reasons a lender may reject your application is that they believe the property’s valuation is below the amount you’ve agreed to pay. This poses a risk to lenders as if you default on the mortgage and the property is repossessed, the sale price may not cover the outstanding debt.

So, when you’re negotiating a price, keeping this in mind might be useful.

Among the other reasons a lender might reject your application based on the property are:

  • The leasehold is too short
  • The ground rent or service charges mean it doesn’t pass affordability checks
  • The property is located near commercial premises
  • The property is unusual or listed.

The good news is that there may be specialist lenders who may take a different view of the property and your application. Again, a mortgage adviser could help you assess which lender might be right for you.

Contact us to talk about your mortgage needs

If you’re worried about your mortgage application being rejected, we could help. We’ll take the time to listen to your needs and review the options with your circumstances in mind. Please contact us to arrange a meeting. 

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.

A father talking to his adult son.

Many people could be omitting a useful way to pass on assets when they die because they aren’t aware that pensions usually fall outside of their estate. It could also mean some have failed to name a beneficiary for their pension. Read on to find out what you need to know about pensions and why they could be a tax-efficient way to pass on wealth.

According to a survey carried out by PensionBee, 62% of people are unaware that their pension won’t usually form part of their estate when they die. As your pension may be one of your largest assets, the oversight could mean a significant proportion of your wealth isn’t passed on according to your wishes.

If your estate could be liable for Inheritance Tax (IHT) considering how to use your pension to leave wealth to your loved ones could be valuable.

Your will won’t usually cover your pension

Writing a will to set out who you’d like to receive your assets when you pass away is an important step when creating an estate plan. However, it’s important to note that pensions are not usually covered by your will.

Instead, an expression of wish is used to tell your pension provider who you’d like to receive your pension savings when you die. What you write will be a key influence when pension trustees are deciding who to release your pension savings to, but they may also consider other factors, such as whether you have any dependents.

You can name more than one beneficiary in an expression of wish and specify what proportion of your savings you’d like each person to receive.

If you have more than one pension, you’ll need to complete an expression of wish for each one.

You can often complete an expression of wish by logging into your online account and filling in a form in a matter of minutes. Just like with a will, it’s important to review your expression of wish regularly and following major life events to ensure it continues to reflect your estate plan.

Completing an expression of wish gives you a chance to state who you’d like to benefit from your pension and it could reduce how much IHT your estate pays.

Passing on wealth through a pension could reduce your estate’s Inheritance Tax bill

IHT is a tax paid on your estate when you pass away if its total value exceeds certain thresholds. As pensions typically sit outside of your estate, they may be a useful way to pass on wealth without increasing a potential IHT bill.

Yet, according to the PensionBee survey, 52% of people said they weren’t aware pensions are typically exempt from IHT. Around 6 in 10 over-55s said they hadn’t considered using their pension to reduce the size of their estate.

You may want to consider IHT as part of your estate plan if the value of your estate exceeds the nil-rate band. For the 2024/25 tax year, the nil-rate band is £325,000 and it’s frozen at this level until April 2028.

You may also be able to use the residence nil-rate band if you leave your main home to direct descendants. This allowance is £175,000 in 2024/25 and, again, is frozen until 2028.

You can pass on unused allowances to your spouse or civil partner. So, when you’re planning as a couple, you may be able to pass on up to £1 million before IHT is due.

If your estate exceeds these thresholds, the standard rate of IHT is 40% and it could substantially reduce the inheritance your loved ones receive.

There are often steps you can take to reduce a potential IHT bill, but you usually need to be proactive. One option might be to consider using your pension, because if you pass away:

  • Before the age of 75, the beneficiary who receives your pension won’t usually need to pay tax.
  • After the age of 75, your beneficiary may need to pay Income Tax. The tax rate will depend on their other taxable income and how they access the money. However, it could be much lower than the standard rate of IHT.

Tax rules around inherited pensions can be complex. Seeking professional advice could help you and your beneficiaries understand the tax bill they might face.

So, your pension could be a useful tool when you’re considering your estate plan. With the potential IHT benefits in mind, you might choose to:

  • Increase your pension contributions during your working life or continue to contribute after you’ve retired (up to age 75 and based on your earnings) to pass on more wealth tax-efficiently to your loved ones.
  • Deplete other assets to fund your retirement to reduce the value of your estate and preserve your pension to pass on to beneficiaries.

If you’re thinking about using your pension to effectively pass on wealth you might need to consider factors such as the Annual Allowance, which limits how much you can contribute tax-efficiently to your pension each tax year, or the effect it could have on your income now.

We could help you make it part of your overall plan, so you can understand the potential implications and what’s right for you.

Contact us to talk about your estate plan

An estate plan could help ensure your assets are passed on according to your wishes, provide you with security later in life, and potentially reduce an IHT bill. If you haven’t considered these important issues yet, please get in touch. We can work with you to create an estate plan that’s tailored to you.

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 or Inheritance Tax planning.

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. 

A woman reading a letter.

The gains you can make before potentially paying Capital Gains Tax (CGT) have halved for the 2024/25 tax year. If you plan to dispose of assets, the change could affect you. Read on to find out when you could be liable for CGT and some steps you might take to manage a bill.

CGT is a tax on the profit you make when you sell certain assets that have increased in value. CGT could be due when disposing of a range of assets, including:

  • Shares that aren’t held in a tax-efficient wrapper
  • Property that isn’t your main home
  • Personal possessions that are worth £6,000 or more, excluding your car. 

The amount of profit you can make during the year before CGT is due has fallen significantly over the last couple of years.

The Annual Exempt Amount has fallen to £3,000 in 2024/25

According to research from the University of Warwick, less than 3% of UK adults paid CGT in the decade to 2020. In fact, in any given year, just 0.5% of adults were liable for CGT. Yet, the total amount paid through CGT tripled between 2010 and 2020 to £65 billion.

The government has substantially reduced the amount of profit you can make before CGT is due, so the number of people paying the tax could soar over the coming years.

In 2022/23, the amount you could make before CGT was due, known as the “Annual Exempt Amount”, was £12,300. This was reduced to £6,000 in 2023/24, and from 6 April 2024, it is reduced further to just £3,000.

If your total profits during the tax year exceed the Annual Exempt Amount, your CGT bill will depend on which tax band(s) the taxable gains fall into when added to your other income. In 2024/25, if you’re a:

  • Higher- or additional-rate taxpayer, your CGT rate will be 20% (24% on gains from residential property)
  • Basic-rate taxpayer, you may benefit from a lower CGT rate of 10% (18% on gains on residential property) if the taxable amount falls within the basic-rate Income Tax band.

So, if you have assets to sell, considering how to mitigate a potential bill could be valuable.

6 practical ways you could reduce your Capital Gains Tax bill

1. Time the sale of your assets

The Annual Exempt Amount cannot be carried forward to a new tax year if you don’t use it. Timing the disposal of your assets could help you make use of the allowance to minimise your bill. For instance, you might hold off selling an asset until a new tax year starts if you’ve already exceeded the Annual Exempt Amount in the current year.

2. Pass assets to your spouse or civil partner

The Annual Exempt Amount is an individual allowance, and you can pass assets to your spouse or civil partner without tax implications. So, if you’ve used your Annual Exempt Amount, transferring an asset to your partner before you dispose of it to use their allowance might be an option you want to consider.

3. Use your ISA to invest tax-efficiently

An ISA is a tax-efficient wrapper for saving or investing. Returns and profits made on investments held in an ISA are not liable for CGT. So, if you want to invest, choosing an ISA may help you mitigate a tax bill.

If you already hold investments outside of an ISA, you could sell the investments and immediately buy them back within your ISA. This strategy of moving your investments to a tax-efficient account is known as “Bed and ISA”.

In the 2024/25 tax year, you can add up to £20,000 to ISAs.

4. Use a pension for long-term investments

Like ISAs, pensions offer a tax-efficient way to invest – investments held in a pension are not liable for CGT.

In the 2024/25 tax year, the pension Annual Allowance is £60,000 for most people. This is the maximum amount you can pay into your pension during the tax year while still benefiting from tax relief. However, you can only claim tax relief on up to 100% of your annual earnings.

If you’ve already taken an income from your pension or are a high earner, your Annual Allowance could be as low as £10,000. If you’re not sure what your Annual Allowance is, please contact us.

The Annual Allowance can be carried forward for up to three tax years. So, if you’ve used all your Annual Allowance in 2024/25, you may want to review your pension contribution in previous tax years.

Before you boost your pension, considering your investment goals and time frame might be essential. You cannot usually access the money in your pension until you’re 55, rising to 57 in 2028, so it isn’t the right option for everyone.

5. Manage your taxable income

As mentioned above, basic-rate taxpayers may benefit from a lower rate of CGT if the gains fall within the basic-rate tax band. As a result, managing your taxable income to stay below Income Tax thresholds once expected profits are included could slash a CGT bill.

6. Deduct losses from your gains

It is possible to deduct losses from the profits you make. You must report the losses to HMRC by including them on your tax return. When you report a loss, the amount is deducted from the gains you make in the same tax year.

If your total taxable gain is still above the tax-free allowance, you can deduct unused losses from previous tax years. If the losses reduce your gain to the tax-free allowance, you can carry forward the remaining losses to a future tax year.

Contact us to talk about your tax liability

Whether you’d like to understand how you could reduce a potential CGT bill or you want to review your financial plan with tax efficiency in mind, please contact us. We could help you identify ways to cut your tax bill in 2024/25 and beyond.

Please note:

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

Please do not act based on anything you might read in this 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.

The Financial Conduct Authority does not regulate tax planning.

Two women shaking hands.

As a business owner, deciding how to extract profits from your firm could be a crucial decision. It may affect your tax liability and that of your company. Read on to understand three essential ways you could take money from your business and potential tax implications you might want to weigh up before deciding which is the right route for you.

Many business owners will use a combination of the three options below to extract profit from their business to fund their day-to-day expenses and create long-term financial security.

1. Taking a salary

An obvious way to access profit from your business is to pay yourself a salary.

Paying yourself a salary from your business could help ensure you have a regular income to cover day-to-day expenses. A reliable income source could also make some situations more straightforward, such as applying for a mortgage. So, you might want to consider your short- and medium-term plans when deciding your salary.

In addition, you may also factor in how your salary could affect your tax liability. Your salary could be liable for Income Tax in the same way as other employees.

For the 2024/25 tax year, the Income Tax bands and rates are:

Income Tax allowances and rates are different in Scotland

Being mindful of the Income Tax thresholds might help you to manage your finances and avoid an unexpected bill.

As well as Income Tax, there could be other taxes and allowances you factor in. For instance, moving into a higher tax bracket could reduce your Personal Savings Allowance and lead to you paying tax on the interest your savings earn. In addition, high earners could be affected by the Tapered Annual Allowance, which reduces the amount you can tax-efficiently contribute to your pension.

If you would like to talk about the implications of your Income Tax bracket when setting your salary, please contact us.

2. Supplementing your income with dividends

Dividends could be a tax-efficient way to boost your salary. They provide a way to distribute company profits among its shareholders. So, when your business is doing well, dividends could supplement your other sources of income.

In 2024/25, the Dividend Allowance means you can take dividends up to £500 before tax is due. This allowance has fallen in recent years – it was £2,000 in 2022/23. So, if you’re a business owner who uses dividends to extract profits and haven’t reviewed your tax liability recently it could be a worthwhile task.

Dividends could prove valuable even if you exceed the Dividend Allowance due to the tax rate likely being lower than the rate of Income Tax.

The rate of tax you pay will depend on which Income Tax band(s) the dividends that exceed the allowance fall within once your other income is considered. For 2024/25, the Dividend Tax rates are:

  • Basic rate: 8.75%
  • Higher rate: 33.75%
  • Additional rate: 39.35%

It’s not possible to carry forward your Dividend Allowance if you don’t use it in the current tax year. So, making dividends a regular part of your income could be useful.

3. Making pension contributions

Making pension contributions could help secure your long-term finances. This is because a pension is a tax-efficient way to save for your retirement – the investment returns held in a pension aren’t liable for Capital Gains Tax.

In addition, your contributions benefit from tax relief at the highest rate of Income Tax you pay. So, if you’re a basic-rate taxpayer who wants to top-up your pension by £1,000, you’d only need to deposit £800.

Usually, your pension provider will automatically claim tax relief at the basic rate on your behalf. However, if you’re a higher- or additional-rate taxpayer, you’ll need to complete a self-assessment tax return to claim the full amount you’re eligible for.

As well as contributions from your salary, you can set up employer contributions from your business to support your retirement goals.

In 2024/25, the pension Annual Allowance is £60,000. This is the maximum you can pay into your pension while retaining tax relief. However, you can only claim tax relief on 100% of your annual earnings. All contributions count towards your Annual Allowance, including employer contributions and those made by other third parties.

Remember, you can’t usually access your pension until you’re 55 (rising to 57 in 2028). So, if you’re using pension contributions to extract profits from your business you may want to consider when you’ll want to access the money and your long-term plans.

Extracting profits tax-efficiently could reduce your business’s Corporation Tax bill

As well as your personal finances, you may want to incorporate your business’s tax liability when deciding how to extract profits.

Corporation Tax is paid on the profits you make, and some outgoings are allowable expenses that could be deducted during your calculations. Allowable expenses may cover employee salaries, including your own, and pension contributions. In addition, employer pension contributions are deducted before employer National Insurance is calculated.

If your company makes more than £250,000 profit during a tax year, you’ll usually pay the main rate of Corporation Tax, which is 25% in 2024/25. If your company made a profit of £50,000 or less, then you’ll pay the “small profits rate”, which is 19% in 2024/25.

You may be entitled to “marginal relief” if your profits are between £50,000 and £250,000. The relief provides a gradual increase in the Corporation Tax rate between the small profits rate and the main rate.

Keeping these thresholds in mind when you’re extracting profits from your business could help you make decisions that are tax-efficient for both you and your company.

Contact us to talk about your personal finances

As a business owner, your personal finances might be more complex. We could offer support and create a tax-efficient financial plan that reflects your circumstances and long-term goals, including your business exit strategy. Please contact us to arrange a meeting to discuss how we can help you.

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 tax planning.

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. 

A person paying in a cafe using a contactless card.

If you’re concerned about running out of money during retirement, you’re not alone. In fact, it’s one of the top financial concerns in the UK. Being proactive and working with a financial planner to create a retirement plan could offer you peace of mind. Read on to find out why.

In an Aegon survey, 7 in 10 financial advisers said their clients’ number one concern was outliving their savings. The good news is that by seeking the support of a finance professional, you can understand what income is sustainable for you and the lifestyle it might afford.

High inflation is playing a role in fears of running out of money

When you retire, you may have a pension pot that you could use to create an income. However, as you may be responsible for managing withdrawals, you might worry about taking too much too soon.

It can be difficult to know what a sustainable income is. After all, you don’t know exactly how long your pension will need to provide an income for, or what unexpected expenses you could face. 

Recent economic circumstances have also highlighted how factors outside of your control could affect the income you need to maintain your lifestyle.

The effects of the Covid-19 pandemic and the war in Ukraine led to prices rising. Many countries have experienced a period of high inflation as a result. In the UK, inflation peaked at 11.1% in October 2022 – the highest rate recorded in 40 years.

Inflation has since fallen, but is still above the Bank of England’s target of 2%. According to the Office for National Statistics, in the 12 months to February 2024, inflation was 3.4%.

As the cost of goods and services increased, some retirees may have taken a higher income from their pension to meet their outgoings. Some could be on track to deplete their assets quicker than expected as a result, which may fuel concerns about running out of money.

Given the circumstances, it’s not surprising that the Aegon survey found that 64% of financial advisers also said inflation was a major concern for their clients.

With so many different factors to consider when deciding how to create a sustainable income from your pension, it can feel overwhelming. Financial planning that’s tailored to you could offer you the reassurance you need to feel confident about your finances and the decisions you make.

A tailored financial plan could address your fears

As you might expect, creating a bespoke financial plan involves assessing your assets, but also includes understanding your goals and fears to give you confidence about the future.

Cashflow modelling could be a valuable financial planning tool if you’re worried about running out of money in retirement.

Based on data like the value of your assets and outgoings, it can create a visual representation of your wealth and how it could change during your lifetime. It will also include some assumptions, like the returns your investments are expected to generate and the rising cost of living.

After inputting the data, you can change information to model how your decisions might affect your financial security. For example, you could create a visualisation of how your assets may change if you took an annual income of £35,000 from your pension, and then see how your financial security would change if you increased it to £40,000.

Cashflow modelling may also be used to answer questions that you’re worried about, such as:

  • Would a period of high inflation mean I’d run out of money during my lifetime?
  • Could my pension provide a reliable income if I lived to 100?
  • Would I have enough to cover the cost of care if it’s needed later in life?
  • Could I sustainably increase my income each year to reflect the rising cost of living?

Cashflow modelling isn’t just useful for understanding what level of income is sustainable either. It can factor in one-off outgoings so you can review their impact on your financial resilience.

For instance, the Aegon survey suggests travelling or living overseas is an aspiration for many. So, you might want to model what would happen if you withdrew a lump sum to fund a bucket list trip, or whether you could afford to buy a holiday home.

Similarly, many people want to lend financial support to the next generation. As a result, you may want to incorporate gifting assets during your lifetime to help your family reach milestones, like getting on the property ladder or pursuing further education.

We could help you create a long-term retirement plan

A retirement plan could help you enjoy the next stage of your life and feel confident about your finances. Please get in touch to arrange a meeting to talk about how you might create a sustainable income using your pension and other assets.

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 cashflow planning.

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. 

How do you grow your wealth when you’re investing? Choosing the “right” investments is just one of the ingredients needed for success. Indeed, your mindset and behaviours could have a much larger effect on the outcomes of your investments than you might think.

Your approach to investing could influence the decisions you make when you start building your portfolio, such as how much risk you take. It could also play a role in how you respond to market movements, which may have a knock-on effect on the long-term returns of your portfolio.

So, as well as considering which investments could help you reach your goals, you might also want to review your behaviours and the impact they could have.

This useful guide explains how some behaviours, such as being patient or staying calm during market volatility, could have a positive effect on your wealth.

Download ‘7 valuable behaviours for successful investing’ now to read more about the behaviours that might lead to improved investment outcomes.

If you have any questions about your investment portfolio or how investing could fit into your wider financial plan, please contact us to arrange a meeting.