Having spent several months collating data from vast numbers of claims, it’s about that time of year when protection providers start to release their claims statistics.
This is significant as the providers like to shout about the support they have given to thousands of clients through pay outs on Life Insurance, Critical Illness Cover and Income Protection policies in the previous year.
This made me think about the common misconceptions people often have about “insurance”, especially when it comes to protecting their financial well-being by utilising one of the polices above.
Our advisers at Fairstone do a great job of navigating clients through such conversations to ensure that, should they need it, there is substantial financial support available through some of the darkest days people can go through.
During these conversations we often get similar concerns raised so I thought this would be a good opportunity to correct some common myths and misconceptions.
Clients have often had an insurance policy of some kind in the past, whether that’s mobile phone cover, car insurance or holiday insurance and it’s common to have had a negative experience claiming on such polices.
However, this is where the financial protection side differs. Clients are paid out in the vast majority of cases due to the outstanding advice they receive, alongside a policy which is tailored to their needs.
Examples below are taken from our top 3 providers on claims paid for Life and Critical Illness cover in 2025:
At Fairstone we ran an exercise in 2023 across our top six protection providers to see how well we supported our clients through quality advice.
The figures were encouraging.
In 2023 alone, we helped over 200 families through their toughest times with policies we had written based on our advice.
This meant that through high quality advice we provided on financial protection, Fairstone clients and their families benefited from over £18m of payouts.
When we looked back over five years, we had supported our clients with over £90m of protection claims.
It’s clear that there are people who do have to face life’s biggest challenges, proven by the fact that just three providers paid out over £2.4bn of life insurance and critical illness claims in 2025.
The statistics behind these figures also show that people of any age can be affected by a life-changing illness or death.
The youngest person to make a critical illness claim was only 21 with the average age being 50. The same provider even paid out £6.8m in critical illness claims for children.
Nobody knows what the future holds and financial protection can take some of the worry away should the worst happen.
There is often an assumption that protecting your family comes at a high cost.
This assumption is normally based on people not understanding what is covered or how the policy works, with people often not realising what it can take to protect their lifestyles.
The average age of a first-time buyer is 36. To cover a 36-year-old male for £250,000, for 25 years to pay out in the event of his death could cost as little as £7.75 per month – roughly the cost of a large coffee from one of our favourite coffee shops.
To cover a female for the same amount and term, for life insurance and critical illness cover, could cost as little as £47.90 per month.
Statistics have shown us that more people insure their pets than they do themselves, but if that person isn’t protected well and the worst was to happen, how do they ensure their pets are covered?
For more information about financial protection and how it can support you and your family get in touch with an adviser today. It could be the best decision you will ever make.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED AGAINST IT.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. A recommendation will be made only following a full assessment of your personal circumstances. Always seek professional advice before making financial decisions.
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Losing a loved one is never easy. Alongside the emotional impact, you are often faced with a long list of financial and administrative responsibilities, at a time when you are least ready to act.
It’s an issue receiving growing attention and many referring to it as ‘deathmin’ or ‘sadmin’.
Industry regulator the Financial Conduct Authority (FCA) recently announced a review into whether investment firms are doing enough to support bereaved customers, highlighting that many people continue to experience delays, confusion and poor communication following the death of a family member.
Hopefully this will see improvements across the process.
While no amount of planning can remove the pain of bereavement, putting the right arrangements in place can make life significantly easier for those left behind.
One of the most valuable gifts you can leave your family is organisation.
To help with this, here is a simple checklist of things to consider that can really help your family at a difficult time:
The Government also has some useful guidance for bereaved relatives which outlines the main responsibilities they face.
When someone dies, family members often have to navigate a range of financial matters, including investments, pensions, protection policies and inheritance tax considerations.
Working with a financial planner and solicitor can help ease the burden at what can be an overwhelming time.
As financial planners, we can help beneficiaries understand their options, liaise with providers and explain the implications of decisions before action is taken.
Ideally, if we can have these conversations with loved ones whilst they are still alive, it helps when the time comes.
They will be familiar with us, and this can help ease the process, as well as providing some valuable peace of mind that things will be taken care of.
We and other professionals are experienced at dealing with these issues sensitively and we always look to put the people before the paperwork.
Not all assets pass on in the same way. Here are some of the main assets which your beneficiaries may received – and how they receive them.
Life Insurance can provide valuable financial support to beneficiaries at a difficult time.
Depending on how a policy is arranged, the proceeds may be paid directly to a named beneficiary, into a trust, or to the deceased’s estate.
Policies written under trust can often be paid more quickly and may not form part of the estate for inheritance tax purposes.
In cases such as this, it is important to ensure policy trust deeds are in place and up to date.
ISAs can often retain valuable tax advantages for a surviving spouse or civil partner through Additional Permitted Subscription rules, but those benefits are not available to other beneficiaries.
The ISA funds pass to these beneficiaries without the tax efficiency associated with ISAs.
Pensions usually sit outside the Will and are typically distributed according to death benefit nominations and scheme trustee discretion. Keeping nominations up to date is therefore extremely important.
Usually, inherited pension funds can stay within a pension environment.
Theses can have different outcomes on death depending on ownership arrangements and the lives assured.
In the case of these assets, it is important where inheritance tax planning has been undertaken that beneficiaries understand how these assets are treated following death.
Understanding how these assets work can help beneficiaries make informed financial decisions during a difficult period.
Inheritance tax is already a major consideration for many families and proposed changes that bring pensions into scope for inheritance tax from April 2027 are likely to add further complexity to estate planning.
This makes reviewing existing arrangements and seeking professional advice more important than ever.
Whether you’re planning ahead for your family or facing the responsibility of administering an estate, our role is to provide guidance, support and reassurance when it’s needed most.
For more information on how we can help, get in touch with an adviser today.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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Bereavement planning involves organising your financial affairs, legal documents and estate so your loved ones can manage your affairs more easily after your death.
Planning ahead helps reduce stress, avoids unnecessary delays and ensures your wishes are understood. It can also simplify the administration of your estate and minimise potential tax issues.
A good checklist should include an up-to-date Will, current pension death benefit nominations, details of financial accounts, insurance policies, important documents, adviser contact information, records of lifetime gifts and an “After I’m Gone” document.
Depending on how the policy is arranged, life insurance proceeds may be paid directly to beneficiaries, into a trust or to the estate. Policies written in trust can often be paid more quickly and may offer inheritance tax advantages.
A surviving spouse or civil partner may benefit from Additional Permitted Subscription (APS) rules, allowing them to retain certain tax advantages. Other beneficiaries inherit the assets but not the ISA’s tax-efficient status.
Inheritance tax rules can change over time, and proposed changes affecting pensions from April 2027 may impact many families. Regular reviews with a financial adviser can help ensure your estate planning remains effective.
A financial adviser can guide beneficiaries through pensions, investments, insurance policies, inheritance tax considerations and estate administration, helping them make informed decisions during a difficult time.
In my role, I’m fortunate to work alongside financial planners, mortgage advisers and protection specialists every day.
One question I’ve been asked repeatedly by friends, family and people outside the industry is: “How do I choose the right financial adviser?”
The more time I’ve spent in the industry, the more I’ve understood why people ask this question.
Choosing a financial adviser isn’t like buying a television or switching utility providers. You’re selecting someone who may play an important role in your financial life for many years, so trust matters enormously.
If you choose the right adviser, it’s often a relationship that lasts. The best advisers get to know you, your family and your long-term ambitions, providing support and guidance as your circumstances evolve over time.
While I’m not an adviser myself, I’ve spent many years working closely with professionals across the industry and seeing first-hand the qualities that clients value most. I’ve also seen how the best outcomes are often achieved when different specialists work together to support a client’s wider financial goals.
With that in mind, I wanted to share some of the key things I’ve learned and the questions I believe everyone should ask before choosing a financial adviser.
Whether you’re planning for retirement, investing for the future, buying a home, protecting your family, managing an inheritance or preparing to pass on wealth to the next generation, the right adviser can help you make informed decisions with confidence.
However, not all financial advice firms operate in the same way.
One thing I’ve noticed from speaking to clients and advisers over the years is that many people initially focus on investments.
However, advisers often tell me that the most important conversations tend to be about retirement goals, family priorities and long-term planning rather than investment products themselves.
A financial adviser helps individuals and families make informed decisions about their finances.
Depending on your circumstances, advice may cover:
Many people assume financial advice is only about investments. In reality, the most valuable advice often takes a broader view, bringing together all aspects of your financial life into a coordinated plan.
Before choosing an adviser, think about what you’re trying to achieve.
You may be:
The best advisers focus on understanding your goals before discussing products or solutions.
Good financial planning starts with understanding where you want to get to and creating a roadmap to help you get there.
Any firm or individual providing regulated financial advice in the UK should be authorised by the Financial Conduct Authority (FCA) or act as a representative of an authorised firm.
Before engaging an adviser, check the FCA Register and ensure you understand the services they are authorised to provide.
This simple step can help provide confidence that you’re dealing with a regulated professional operating within UK standards and requirements.
One of the most important questions consumers can ask is whether an adviser is independent or restricted.
Both types of adviser are regulated by the FCA, but the range of solutions they can consider may differ.
Understanding this distinction helps you determine whether the adviser can access the breadth of solutions you may require, particularly if your financial needs become more complex over time.
All practising financial advisers must meet minimum qualification standards.
However, some advisers and firms achieve Chartered status, which demonstrates a commitment to higher professional standards, ethical conduct and ongoing professional development.
While qualifications alone do not determine the quality of advice, many consumers view Chartered status as an additional indicator of professionalism and expertise.
Many people focus solely on the adviser sitting across the table from them.
One of the most common themes I’ve seen is that clients rarely have just one financial objective.
Someone might be planning for retirement while helping children onto the property ladder and reviewing inheritance plans for their own parents. This is often where access to different specialists can become particularly valuable.
Your financial life rarely exists in separate boxes.
A mortgage decision may affect your retirement plans. Protection arrangements may influence your wider financial strategy. Tax planning may impact investment decisions. Estate planning may shape how wealth is managed and passed on.
For this reason, it’s worth understanding not only the adviser you’re working with, but also the expertise available around them.
Financial planning often involves multiple disciplines.
A financial planner may help create your long-term strategy.
A mortgage adviser may help structure borrowing effectively.
A protection adviser may help safeguard your income, family or business.
An investment manager oversees and manages investment portfolios in line with your goals and attitude to risk.
Together, these specialists can help create a more comprehensive financial plan that considers all aspects of your financial life.
When specialists work together, clients can benefit from:
This can be particularly valuable for families, business owners, professionals and retirees with multiple financial priorities.
For most people, a mortgage will be one of the largest financial commitments they ever make.
Mortgage advice can help clients:
Mortgage decisions shouldn’t be made in isolation.
The amount you borrow, the term you select and the structure of your repayments can all affect:
This is why mortgage advice can be most effective when considered alongside broader financial planning.
Many people spend years building wealth but overlook the importance of protecting it.
Protection planning helps create financial resilience when life doesn’t go according to plan.
Protection advice may include:
Without appropriate protection in place, unexpected events can significantly affect financial plans.
Protection advice helps ensure that wealth-building strategies are supported by appropriate safeguards.
Investments are important, but they are only one component of financial planning.
The most effective advisers focus on helping clients achieve life goals rather than simply selecting investment products.
Transparency is essential.
You should always understand what you’re paying for and what services are included.
Trust is one of the most important factors when choosing a financial adviser.
In my experience, the advisers who build the strongest client relationships aren’t necessarily the ones who talk most about investments.
They’re usually the ones who listen carefully, explain things clearly and take time to understand what matters most to their clients.
Alongside FCA authorisation and qualifications, it’s worth understanding how existing clients view the adviser or firm.
Independent reviews can provide useful insight into service quality, responsiveness and client experience.
Consider reviewing:
Reviews should not be the sole basis for your decision, but they can provide valuable context when assessing trust and service quality.
Before making a decision, consider asking:
1. Are you independent or restricted?
2. Are you a Chartered Financial Planner or Chartered Firm?
3. What qualifications do you hold?
4. Do you provide access to mortgage advice?
5. How do you assess protection needs?
6. What services do you provide beyond investment management?
7. How do you tailor advice to individual clients?
8. How do you get paid?
9. What do existing clients say about working with you?
10. How do the different specialists within your business work together?
The right adviser should help you feel informed, understood and confident about your financial future.
Many people find value in firms that:
Ultimately, the best financial advice is rarely about a single product or recommendation.
It’s about having the right people working together to help you achieve your goals.
Before working in financial services, I assumed financial advice was primarily about choosing investments.
What has surprised me most is how much time advisers spend helping clients think through major life decisions, retirement plans, family priorities and long-term goals.
Choosing a financial adviser isn’t simply about finding someone to manage investments.
If there’s one thing I’ve learned from working in the industry, it’s that the best financial advice relationships are rarely built around products.
They’re built around trust, communication and a shared understanding of what success looks like for the client.
By understanding the difference between independent and restricted advice, considering Chartered status, reviewing client feedback and evaluating the breadth of expertise available, you can make a more informed decision about who is best placed to help you achieve your financial goals.
The most effective financial plans are often built when financial planning, mortgage advice and protection expertise work together towards a common objective: helping you achieve the future you want.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
Chris Coulson is Marketing Director at Fairstone. Chris works closely with financial planners, mortgage advisers and protection specialists across the UK and regularly produces consumer education content on financial planning, retirement, wealth management and personal finance.
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An independent adviser can consider products and providers from across the market. A restricted adviser may be limited to specific providers, products or areas of advice. Both should be regulated by the FCA.
Many people value financial advice because it can help them create a structured plan, avoid costly mistakes and make informed decisions aligned to their goals.
All regulated advisers must meet minimum qualification requirements. Some advisers and firms also hold Chartered status, which demonstrates a commitment to higher professional standards and ongoing development.
A Chartered financial planner has achieved a recognised professional designation that reflects advanced qualifications, ethical standards and ongoing professional development.
You can search for advisers and firms using the FCA Register to confirm their regulatory status.
Costs vary depending on the services provided, complexity of advice and ongoing support requirements. Advisers should clearly explain all charges before you proceed.
Not always, but many people benefit from advice that considers both mortgage decisions and wider financial planning objectives together. Some financial advisers also have permission to advise on mortgages.
Protection planning can help safeguard your income, family and financial plans should unexpected events occur.
No-one likes to think about the worst happening.
But preparing just in case it does can be life-changing.
For example, how can you keep up repayments on a mortgage if you become ill, are unable to work or if your partner dies?
I was reminded of this at a recent mortgage industry event where we heard some frightening statistics about how underserved we are as a nation when it comes to financial protection.
Financial protection comes in many forms, but the most common ones are:
This is where money – usually a lump sum – is paid after the death of the person insured.
This is where money – usually a lump sum – is paid out in the event of the diagnosis of a pre-defined illness, typically more common conditions such as cancer, a stroke or a heart attack.
This is where money is paid out, usually monthly, to cover some of the salary lost due to someone being unable to work for a prolonged period of time.
People taking on a long-term debt such as a mortgage would be well placed to consider financial protection.
Talking to a financial adviser can help you decide which form of financial protection is best suited to your situation and financial goals
One aspect of financial protection which is often overlooked is how it can help when other members of your family suffer a misfortune.
For example, if you child is seriously ill, you may need time off work to support them through their treatment.
Does your contract that you have at work cover you for when you’re ill, and if one of your children is ill?
This kind of situation is not hypothetical – at the mortgage event, one member of the audience told how her niece became seriously ill and the family were worried how they would cope.
After checking the protection policy, they found there was enough cover for her brother-in-law to take time off to be in hospital with their daughter as she recovered.
The couple were thankful that they had been advised on the policy and couldn’t have been more grateful that it allowed finances and fear of losing their home to be something they didn’t have to worry about at all.
I’ve heard from other advisers about how they have helped clients during reviews to claim on their policies following serious illness suffered by their children.
In all these cases, the policies allowed financial burdens to be lifted and the real threat of not being able to pay the mortgage to be removed.
Putting this cover in place allowed people to keep their jobs with sabbaticals and ultimately be there for their kids during unthinkable times.
Think about your situation: are you protected financially?
Do you have a family that could benefit from a conversation with a professional of how to protect what matters most to you?
Do you have a policy that needs reviewed, perhaps since you have had children?
These topics are not always easy to talk about – no-one likes to consider worst case scenarios.
But being brave enough to have the chat could be one of the best decisions you ever make.
Talking to an adviser can help you look carefully at your situation, decide what needs to be done and how best to approach things.
It could be one of the most important conversations you ever have.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED AGAINST IT.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. A recommendation will be made only following a full assessment of your personal circumstances. Protection insurance is designed to provide financial support on death, illness or inability to work. It has no cash-in value and is not a savings or investment product. All policies are subject to terms, conditions, exclusions and limitations. Full details will be explained before any policy is taken out. For income protection and critical illness cover, payment of benefits is subject to meeting the policy conditions and insurer underwriting and claims criteria. Always seek professional advice before making financial decisions.
For many people over 55 who own their own home, equity release is still spoken about as “something you should never do”.
It is often misunderstood, occasionally feared, and sometimes dismissed outright based on decades-old information.
However, in the world of rising living costs, longer retirements, and wealth locked in homes, equity release has evolved into a flexible, well-regulated financial option that deserves its place.
It is no longer a niche product for people “with no other choices”. For many, it is a strategic decision that enables later life to be enjoyed, not endured.
Equity release is a way for older homeowners to access some of the money tied up in their home without having to sell it or move out.
In simple terms: if you own your home and it has gone up in value over the years, equity release lets you “unlock” some of that value as cash.
You can take the money as a lump sum, smaller withdrawals over time, or a mix of both.
There are two main types of equity release: a lifetime mortgage and a Home Reversion Plan.
The lifetime mortgage is the most common form of equity release.
Lifetime mortgages usually have a fixed rate of interest applied for the life of the loan. The interest rolls up over the term of the mortgage and no monthly payments are made.
The loan is usually repaid when you no longer live in your home.
For most equity release plans (especially lifetime mortgages), that means the money is paid back when:
At that point, the property is typically sold, and the proceeds are used to repay the loan plus any interest that has built up over time. Anything left over goes to your estate or family.
There is a further equity release option available (but not as widely used) which is know as a Home Reversion Plan. This is where you sell a percentage of your home and in return you receive a lump sum.
You still get to stay in your property for the rest of your life or if you have to move into long-term care.
When the property is sold, the company receives their percentage and the balance is paid to the estate.
One of the strongest advantages of equity release is the ability to unlock tax-free cash without having to sell or downsize. Your home remains yours, and you retain the right to live in it for life, or until you move into long term care.
This stability can be priceless for people who have lived in their homes for most of their lives and class it as part of them and something they do not wish to give up.
Whether it’s supplementing pension income, clearing interest-only mortgages, helping children on to the property ladder, funding home improvements, or simply enjoying retirement with greater peace of mind, equity release can provide access to capital that would otherwise remain inaccessible.
Some Equity Release plans also offer flexible drawdown options, allowing homeowners to release funds only when needed—helping to control interest costs over time.
Unlike traditional borrowing, most lifetime mortgages do not require monthly repayments. Interest rolls up over time and is repaid when the property is sold, providing reassurance for those on fixed or limited incomes.
Importantly, many plans now allow voluntary ad hoc repayments, giving borrowers control if their circumstances change.
Equity release today is a far cry from the products of the 1980s and 1990s. Plans regulated by the Financial Conduct Authority and approved by the Equity Release Council come with strict safeguards, including:
These protections mean neither you nor your estate can ever owe more than the value of your home.
Equity release can be expensive over time and the longer you live, the more money you – or rather your family – will owe.
Equity release also reduces the money that you leave behind, meaning your family will inherit less money after you’re gone.
Also, if you are in receipt of state benefits, you lose may lose them if they are means-tested.
With most equity release plans (like a lifetime mortgage), you’re not making monthly payments. Instead, the interest gets added onto the loan, and then future interest is charged on that bigger amount.
Therefore in plain terms, you’re paying “interest on interest,” so the debt grows faster over time.
One of the lesser known—but increasingly relevant—uses of equity release is its role in inheritance tax planning.
Property wealth frequently pushes estates above the nil rate band thresholds, creating potential IHT liabilities for beneficiaries. By releasing equity during lifetime, homeowners may be able to:
When gifts are made and the individual survives seven years, they may fall outside the estate for IHT purposes, depending on circumstances.
Additionally, some people choose to use equity release to fund regular gifts from surplus income or to settle existing debts, which can further simplify estate planning.
While equity release is not a ‘one size fits all’ solution for inheritance tax, it can form part of a broader, well advised strategy that balances personal enjoyment with family legacy.
False! With a lifetime mortgage—the most common form of equity release—you retain ownership of your property. The lender places a charge on the home, similar to a standard mortgage.
While equity release can reduce the value of an estate, it does not automatically eliminate inheritance. Many homeowners choose to guarantee an amount of their property value, and some plans allow repayment over time to preserve equity.
Beyond finances, many families would rather see loved ones enjoying life now than inheriting wealth later.
Interest does roll up, but rates are fixed or capped for life, and modern products include drawdown, voluntary repayments, and reserve facilities that help manage long-term costs more effectively than ever before.
In reality, many equity release clients are financially comfortable homeowners who want to use their assets more efficiently. It is increasingly used as part of holistic retirement planning rather than a last resort.
Equity release is not right for everyone, and it should never be entered into lightly.
It requires expert advice, family discussions, and a clear understanding of long-term implications.
However, dismissing it based on outdated myths does a disservice to homeowners who could genuinely benefit.
As property wealth continues to outpace pension savings for many, equity release has become a legitimate and responsible financial planning tool—one that prioritises choice, dignity, and quality of life in later years.
In an era where living longer also means funding longer retirements, perhaps the real question is not “Why would anyone use equity release?” but “Why should homeowners be criticised for choosing to enjoy the wealth they have worked a lifetime to build?”
There are other ways to free up capital tied up in your home.
Moving from a larger house to a smaller, cheaper property will help to generate money and, depending on the home, could also result in lower energy bills.
However, you will need to take into consideration the costs associated with buying and selling a home as well as moving costs, etc.
You may also prefer to stay in the home which you have made your own.
Another potential option is a retirement interest-only mortgage.
This is a mortgage that is based on pension income. You do not repay capital on a monthly basis, only the interest element.
However, this is generally not used since most people do not want to have an extra monthly expense.
A professional financial adviser can help you assess whether Equity Release is right for your circumstances and your financial goals.
If you decide to go ahead with Equity Release, a financial adviser can help you to choose the product which best suits your situation.
They can also help you with other implications of taking out an Equity Release plan, including estate planning and potential Inheritance Tax liabilities.
Get in touch with one of our advisers today to find out more.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED AGAINST IT.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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Equity release can be a good idea for homeowners over 55 who want to access tax-free cash tied up in their property without having to move.
It can provide financial flexibility in retirement, but it’s important to consider the long-term impact on your estate, inheritance, and overall financial plan before proceeding.
Yes, equity release is considered safe when taken through a plan regulated by the Financial Conduct Authority and approved by the Equity Release Council.
These plans include safeguards such as the No Negative Equity Guarantee and the right to remain in your home for life.
Yes. With a lifetime mortgage—the most common form of equity release—you remain the legal owner of your home.
The lender places a charge on the property, similar to a traditional mortgage, but ownership stays with you.
The amount you can release depends on factors such as your age, property value, and health.
Typically, the older you are, the more you can borrow. Most providers offer between 20% and 60% of your property’s value.
Yes, equity release can reduce the value of your estate, which may impact how much you leave to your beneficiaries.
However, some plans allow you to ring-fence a portion of your property’s value for inheritance or make voluntary repayments to preserve equity.
In some cases, yes. By releasing equity and gifting money during your lifetime, you may reduce the overall value of your estate.
If you live for seven years after making a gift, it may fall outside your estate for inheritance tax purposes, depending on your circumstances.
The main risks include:
This is why professional financial advice is essential before proceeding.
Most lifetime mortgages do not require mandatory monthly repayments. Instead, interest is added to the loan and repaid when the property is sold.
However, many modern plans allow optional repayments to help manage the balance.
When the last homeowner passes away or moves into long-term care, the property is usually sold and the loan—plus any accrued interest—is repaid. Any remaining value is passed on to your beneficiaries.
Yes, alternatives include downsizing, using savings or investments, or considering a retirement interest-only mortgage.
The best option depends on your personal circumstances and financial goals.
Yes. Equity release is a significant financial decision, and speaking to a qualified adviser ensures you understand the benefits, risks, and alternatives.
A professional can help tailor a solution that aligns with your long-term plans.
How long do you think you’ll live for?
Without being too morbid about it, this is an important question for all of us.
It’s also a factor in financial calculations such as annuities.
Yet there is another aspect to life expectancy which people often miss: how many years of healthy life do you think you’ll have?
This is arguably just as important as overall life expectancy – and should have an equal influence on how you plan for your later years.
The Office for National Statistics classifies Healthy Life Expectancy (HLE) as the number of years people are expected to spend in “good” general health.
This figure may well make you see life rather differently.
In the UK, men can expect to spend an average of 60.7 years in “good” health with women faring slightly better at 60.9 years.
In some cases, the prospects are worse.
For example, while in some areas of London and the South East people have a healthy life expectancy of almost 70, in Blackpool, men have an average HLE of just under 51.
This means that well before the State pension age, you could be living a life which is limited by poor health.
So, apart from potentially depressing you, what is my point in sharing these statistics?
It all goes back to the basic principles of financial planning which underpin everything we do here at Fairstone.
We work with you to help your money grow so that you can achieve your financial goals, whether that is retiring early, travelling around the world, putting funds aside for your loved ones or something else.
Whatever it is you are building wealth for, it is important to always bear in mind that the process of wealth accumulation is a means to an end, not an end in itself.
Wealth is important for what you can use it to do, not for what it is – it’s a tool, not a trophy.
It can be challenging for many people to switch their mindset from being a saver to being a spender.
Shifting from accumulating wealth to using it can take some getting used to.
One of our advisers told me how a client at a recent meeting was anxious and worried, despite having assets well into seven figures.
Try how he might, he could not contemplate using some of the wealth he had accumulated over the decades, fearful he might not be left with enough.
This ‘fear of tomorrow’ is more common than you might think.
However, with changes to the inheritance tax regime coming in April next year, people who hold on to all their assets ‘just in case’ could end up giving 40% of them to the Government rather than their loved ones.
And returning to the theme which I started with, there is a danger that if you continually put off that dream holiday you’ve always promised yourself or that round-the-world adventure you’ve planned for decades with your other half, you may end up not being well enough to enjoy it.
Spending money on yourself and your family while you are healthy is one of the great joys of life so make sure you don’t miss out on it.
Don’t let doing something ‘one day’ not happen on any day.
None of us know what is round the corner.
However, working with a financial adviser can help you plan for a whole series of eventualities – good and bad.
Creating a robust financial plan that’s flexible enough to change with your circumstances can help you face the future with confidence, whatever that may bring.
They can help you balance your current needs with what you want to leave when you’re no longer around.
And if you need some ‘permission’ that spending some of what you have accumulated is the right thing to do, just ask your adviser.
They will be able to give you an honest and informed opinion on your personal financial situation – and how using some of what you have accumulated will affect it.
Fairstone has expert advisers who can help you at every important stage of life, from buying your first home to planning your estate.
Get in touch with a Fairstone adviser to find out more.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
At times, it seemed like this winter was going to last forever, but Spring is here at last.
As well as warmer weather and lighter nights, this time of year often brings a desire to move house.
Spring is traditionally the season where the housing market ramps up and, notwithstanding the impact of recent geopolitical upheavals, this year looks set to be no exception.
For many of us, buying a home is the biggest financial commitment we will make in our lives.
It is a major life event, but too often the temptation is to treat a house purchase as a stand-alone occasion rather than part of an overall financial life plan.
The other danger which we face is that we get emotionally involved in the process.
We really, REALLY want that house.
It’s got everything we could want and we’re already picturing ourselves living there.
When you get wrapped up in a house buying journey, it’s all too easy to disregard everything else in the pursuit of your dream home.
This is where working with financial adviser is worth its weight in gold.
Your financial adviser will sit down with you and put together a comprehensive financial plan:
A properly thought through and well-executed plan will help you to address the three crucial aspects of house buying which most people forget:
You don’t want to pay so much for your house that you’re left with very little to live on in retirement.
In an age of 30-year and even 35-year mortgages when the average age of a first-time buyer in the UK is 34, you could well end up still paying for your home when you’re past State pension age.
Factoring this into your calculations when weighing up the purchase of a home is something which many people neglect to do.
Planning to repay your mortgage before retirement is important.
Financial advisers can help with this, by supporting your plan from day one and throughout the term of the mortgage, potentially saving £1,000s in interest and supporting plans for saving.
The purchase of a home is the biggest debt you are likely to take on in your life.
Advisers have a duty to ensure you can cope with that debt and that your family won’t have to face taking on that debt should the worst happen.
Part of your plan should be to protect your home and your family income.
If you get ill, sick pay is a lot less generous than most people think it is.
With the global economy far from predictable, unemployment is a fact of life these days.
How will you keep up your mortgage payments if you are made redundant?
Your financial adviser will help you to tackle all three of these issues – and plenty more besides.
For example, by working with fellow professionals such as mortgage advisers (which we also have at Fairstone), they can help you get the best deal on the loan for your property.
And a few years down the line, they can do the same again to ensure your remortgage keeps you on a sound financial footing.
They can also review your protection policies as life events such as the birth of a child happen, to make sure these products are always appropriate for you and your families’ needs.
Importantly, a financial adviser will keep the other parts of your plan on track, rather than just give you a good mortgage deal.
So they will help you with things like saving for your children or grandchildren, paying for school or university fees, investing for your retirement and planning your estate.
These financial events very often overlap with your home buying journey so someone who knows how it all fits together – and can show you how with the use of tools like cashflow modelling – could prove invaluable.
And they are always there as a voice of calm reassurance and wise counsel when you’re unsure if you’re doing the right thing with your finances.
To borrow the title of a well-known TV programme, most people think buying a home is all about location, location, location.
In reality, it’s all about plan, plan, plan.
Buying a house isn’t just a transaction, it’s a key part of your financial life.
Wouldn’t it be much more of a home, sweet home if you knew it was part of your comprehensive financial plan?
Fairstone is home to a wide range of financial advisers, mortgage advisers and financial planning experts, ready to help you out on everything from property purchases to planning your retirement.
Get in touch with a Fairstone adviser to find out more.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
It’s that time of year when all our amazing superwomen get the spotlight: Mother’s Day.
We know that for a lot of mums, it’s a constant juggling act – trying to manage childcare, possibly pursuing a career, the day-to-day of managing a household, family logistics, trying to plan for the long-term, looking after their physical and mental wellbeing and the emotional labour of it all, all at once – and with a smile and probably a lack of sleep if the children are young.
There’s a huge invisible workload as well as the visible one and can take its toll.
Eeven superwomen need a financial plan.
Motherhood can change everything, including finances.
A child’s arrival often means a huge shift in priorities.
It might suddenly feel that that long-term planning is now more urgent, financial resilience is now essential and the question tends to shift from “will I be okay?” to “will they be okay?”.
Mother’s Day is the perfect time to reflect, not just on the emotional side of motherhood but the financial foundations supporting it.
There are a few areas we can look at to help bring clarity to family finances and future planning, which in turn can help reduce the toll that motherhood can sometimes take.
There are a couple of potential quick wins that could help when it comes to managing the increase in day-to-day expenditure that comes with having children.
You may be entitled to 30 hours of free childcare a week if you live in England and have a child between 9 months and 4 years old.
It’s important to note that certain factors (such as employment and earnings) play a part in eligibility, so this won’t be for everyone but it’s definitely worth checking if this is something you can claim for).
If you live in the UK and have a child under 16 (or under 20 in approved education/training), you may be able to claim a tax-free child benefit payment every 4 weeks.
You can find out more about what qualifies for approved education/training on the Gov.uk website.
A High Income Child Benefit Tax Charge may apply if you or your partner earn over £60,000 but this could still be worthwhile.
In addition to these benefits, there are also some helpful savings vehicles that you could consider for your children, as well as important considerations in terms of dealing with a financial emergency.
These can be used to save for children under the age of 18.
Limits are currently set at £9,000 per year for the 2025/26 tax year and any gains and income are tax-free.
These can be opened either as Cash ISAs, Stocks and Shares ISAs, or both.
You can find out more about Junior ISAs in our recent article.
One way to help achieve a level of financial resilience is to work towards ensuring an easily accessible savings pot.
This should have at least 3-6 months’ worth of essential expenditure, not earmarked for anything other than an emergency fund.
This pot helps provide a buffer to be able to cover anything that might crop up unexpectedly, such as redundancy or unexpected bills.
Motherhood is a beautiful thing and being able to take time out to care for children is incredibly special.
Sadly, for a lot of mothers, this can also mean extended periods of time where personal and employer contributions into pensions aren’t being made.
This can then have significant effects on retirement savings in the long-term.
In addition, 35 years of qualifying National Insurance contributions or credits are required in order to be entitled to receive the full State pension at State Pension Age.
These NI contributions can also be significantly affected during this time.
When children are young, retirement can feel like a distant concept. However, the earlier planning begins, the more flexibility it creates later.
An important point in terms of retirement is that, according to the Office of National Statistics, women statistically live longer than men in the UK.
Inevitably, this means that retirement funds may need to stretch further than anticipated – and also be more resilient.
Some of the key considerations when it comes to retirement for mothers include:
Seeking financial advice can be instrumental in planning for the future and helping ensure that your retirement looks the way you want it to.
The clarity and peace-of-mind that this can create can be unmatched.
For many families, one of the biggest financial risks to a household is loss of income due to illness or death.
Financial protection planning is quite often put onto the back burner as it’s seen as not being ‘today’s problem’, but if either of these eventualities ever occurs, protection planning can be the difference between being able to continue looking after your family as normal or struggling to make ends meet.
Another important point to note here is that even unpaid caregiving has financial value and so protecting this is crucial.
By this, I mean that if one parent spends more time looking after the children, either by not working, or working less hours, replacing this childcare if something happened could be incredibly costly.
This pays out an income if you are unable to work due to illness or injury.
This pays out a lump sum in the event of death.
Joint policies can also be taken out between spouses and can also be held in trust.
This means the beneficiary of the payment does not have to wait for lengthy probate, which can have financial and emotional consequences at an already difficult time.
Life insurance policies can be in the form of term assurance (term-specific and may be aligned to a liability such as a mortgage or other debt) or on a Whole of Life basis.
This is similar to life insurance but pays out an income rather than a lump sum on death.
It can be critical for ensuring children are able to be looked after if something happened to you or your partner.
This is a lump sum paid out in the event of serious illness.
The definitions of what is included vary between insurers and this is where a financial adviser can help.
Protection simply ensures that difficult circumstances do not become financial crises.
Estate planning is often postponed but is one of the most critical steps parents can take.
As simple as it sounds, getting a Will in place, or ensuring it is up-to-date helps to:
Reviewing beneficiary nominations on pensions and life policies are also important to review and update, as these typically sit outside of a will.
As mentioned, since women are statistically more likely to outlive male partners, reviewing ownership of assets, tax planning strategies and long-term care considerations can provide the assurance that your legacy is protected.
Financial planning for mothers is not just about spreadsheets and products, it’s about confidence.
Confidence that:
Motherhood often involves putting others first. A financial plan that is robust and unique to you can ensure that doing so does not come at the expense of your own long-term wellbeing.
As Mother’s Day approaches, it may be worth asking not just what you are doing for your family today, but how you are supporting the woman who is holding it all together.
An expert financial adviser can help you create a robust yet flexible financial plan to help guide you through motherhood and beyond.
Get in touch with one of our advisers today to find out more.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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Financial planning for mothers ensures family security, protects against income loss, supports retirement goals and helps create long-term financial resilience.
Taking career breaks or reducing hours can reduce pension contributions and National Insurance credits, potentially lowering retirement income.
Parents may be eligible for Child Benefit, childcare support and National Insurance credits. Eligibility can be checked via Gov.uk.
Families often consider income protection, life insurance, family income benefit and critical illness cover to protect against loss of income.
Ideally, families should aim for 3–6 months of essential expenses in an easily accessible emergency.
Yes. A Will ensures assets are distributed correctly and guardianship arrangements are in place for minor children.
When you’re planning your perfect retirement, not many people want to think about preparing for potential care home costs.
The same is true for people who are already retired. Some 93% of over-75s have made no specific provision to cover the cost of their care, according to one survey.
Many people put off considering care costs – for themselves, a family member or a friend – because they find it too daunting or worrying.
However, thinking about these things now could prove invaluable for the future.
Here we look at some of the most common topics associated with care costs – and how consulting a financial adviser can help with the process.
If you are seeking support for care home costs or other care costs, there is a two stage assessment process.
First a Health Assessment is carried out to identify your wellbeing needs. This is called an NHS Continuing Healthcare assessment.
The second stage is a financial assessment to gauge the level of assets available to you.
NHS Continuing Healthcare provides full funding but only applies in very limited circumstances and only when your assets are below £23,250.
In most cases, it is sensible to assume that you will not quality for full funding, but you should still go through the process as you may qualify for nursing funding from the NHS which can help towards care costs.
Assuming you do not qualify for NHS Continuing Healthcare, you will then need to self-fund the care costs, until your assets fall below £23,250.
Local Authority financial support can begin when your assets fall below £23,250.
Pensions are not included in the £23,250 asset level, as they are seen to produce an income instead.
Your house may also be excluded, should your spouse remain in the home, or if a relative over 60 lives in the property.
If you are paying for care (which can be the occasionally help around the home), you may qualify for Attendance Allowance.
This is available as a weekly benefit regardless of means. They may also help provide respite or occasional hours of care.
Yes, you may need to sell your home to fund care home costs.
As mentioned above, the value of your home is excluded should your spouse remain in the home, or a relative over 60 lives in the property. Otherwise, it may need to be sold.
In my experience, renting the property often doesn’t result in the income needed to cover care costs, so do bear this in mind when deciding how to fund your care.
There are generally two options to consider when using your assets to pay for care:
Previously, some insurers provided products for pre-funding care, but unfortunately these are no longer available.
Once your assets (excluding pensions) are below £23,250, the local authority can get involved.
It’s a bad idea to deliberately reduce your assets to qualify for local authority funding. Having money available provides choice.
Think about using cashflow planning to assess affordability and provide financial understanding and security.
When considering how much to withdraw from your pension – and when – make sure you stage those withdrawals at sustainable levels.
You should consider earmarking specific funds for care costs as part of your retirement planning while maintaining quality of life (and enjoyment) in the early years.
If it sounds too good to be true then it normally is – gifting property to children or into trust can leave you vulnerable and not achieve what you want it to in terms of your care planning.
Getting expert financial advice – particularly at an early stage – can provide valuable peace of mind for you and your family when it comes to care costs.
At Fairstone, we have a number of financial planners (including myself) who are accredited with the Society of Later Life Advisers (SOLLA), who specialise in this type of work and would be delighted to provide assistance.
All SOLLA accredited advisers must attain the Society’s Later Life Adviser Accreditation and adhere to a strict Code of Practice.
The SOLLA Later Life Adviser Accreditation is widely regarded as the gold standard in later life financial advice.
To discuss planning your potential future care needs, get in touch with an adviser today.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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In England, local authority funding typically begins when assets fall below £23,250 (excluding certain pensions and property exemptions).
Eligibility is limited and based on primary health needs.
Most people do not qualify, but it is still important to complete the assessment.
Not always. Your home may be excluded if a spouse or qualifying relative remains living there.
A care annuity (also called an immediate needs annuity) is a financial product that converts a lump sum into a guaranteed, tax-free income paid directly to a care provider.
Deliberately reducing assets to qualify for funding may be treated as deprivation of assets and can be challenged by the local authority.
No. Attendance Allowance is not means-tested and may be available regardless of income or savings.
Financial planning as a couple doesn’t sound like the most romantic thing in the month of Valentine’s Day.
However, taking time to talk about shared financial goals does not just make practical sense – it can actually enhance your relationship.
Here we outline why financial planning could be the key to your shared future happiness as a couple.
“Not enough” would seem to be the answer.
Recent research from Opinium found that one in four people (26%) in long-term relationships (lasting two or more years) manage their lives together but not their finances.
It also found that:
Not only do people not talk about their finances to their partner – sometimes they actively cover them up.
Research from Co-op Legal Services found that one in three married people aged over 65 hide money from their spouse.
One in seven of those who admitted hiding money said they had £50,000 or more stashed away on the quiet.
Aside from the obvious reason that concealing important things from your partner is rarely a good idea, there are several practical areas where not communicating with each other about finance can create problems.
And conversely, talking things over about money matters can really reap dividends.
If you’re setting up home together, not only should you plan how you’re going to pay for where you live, but mortgage lenders will insist that you do.
Aside from the demands of lender application forms, talking about your mortgage with your partner is crucial in a number of ways.
For example, what size deposit can you afford and how should you finance it?
A larger deposit often means you can get a better mortgage deal but it’s important that both parties feel they have equal stakes in the property – even if one party is putting in more money than the other.
It’s also good to talk about how long you want the mortgage to last.
For example, if there is an age difference in the relationship, one party might be close to retirement by the time the house is paid for while the other has several years of working life left.
Such practical considerations naturally lead to more discussions about life goals and what kind of future you’re looking at together.
This can bring you as a couple closer together – or if it doesn’t, at least you know how the other person in the relationship feels.
If you’ve discussed getting a home together and the mortgage you need to pay for it, talking about how you’ll protect each other – and the rest of your family – if the worst should happen is an obvious next step.
Life insurance policies are generally cheaper the earlier in life that you take them out, so ensuring you and your partner are covered in the event of a death is a very good idea.
Talking about how much cover is needed and nominating the person to whom money should be paid is important to make sure your loved ones are covered – and it can bring real peace of mind to your relationship.
Protection isn’t just about what could happen in a worst case scenario.
Talking about how you would cope financially in the event of a serious illness, accident or unemployment will help you decide whether one or both of you should take out cover to protect against such occurrences.
Financial conversations shouldn’t just be about the nasty things in life.
Talking about how you will plan for your children’s future is really important and can give your offspring a great start in life and a comfort for their later years.
For example, you might want to start a Junior ISA for your child so that they have a valuable nest egg available to them once they hit 18.
You could also consider starting a child’s pension which other members of the family could contribute to and which could give them security for their later years.
Both of these products have implications for tax and for personal allowances – another reason to get together and discuss plans before carrying them out.
This is also the case for things like childcare allowances and vouchers, maternity pay and other family-related schemes.
This means it’s crucial that you both know where you stand when it comes to your finances in order to get the best deal for your family.
As the Opinium survey found, talking about retirement and sharing details of pension savings is an area many shy away from.
However, a couple considering retirement are so much better equipped for that phase of life if they put their heads together and plan as one.
Let’s take a very obvious thing: how much money do you need to have an enjoyable retirement?
The Retirement Living Standards have been developed by Pensions UK to help people picture what kind of lifestyle they could have in retirement and the costs involved.
There are a number of assumptions involved in their calculations – including people owning their own home, taxation levels and no social care costs – but the basic figures illustrate why two heads are better than one in retirement.
At each level of income – minimum, moderate and comfortable – the amount needed per person is considerably less for couples than it is for single people:
| Lifestyle level | Single person | Couple |
| Minimum | £13,400 a year | £21,600 a year |
| Moderate | £31,700 a year | £43,900 a year |
| Comfortable | £43,900 a year | £60,600 a year |
In addition to planning how you’ll finance your retirement, it’s also a good idea to talk about what each of you wants from this phase of your life.
For example, you might both want to go on a dream holiday or even buy a holiday home.
One of you might want to continue doing some part-time work while the other is content to put their feet up.
All of these decisions have consequences for your retirement finances and for things like how much of your pension pot you want to take as a tax-free lump sum or whether one or both of you should buy an annuity to give you guaranteed income for the remainder of your life.
Planning together will make such decisions easier to come by and will help you visualise and secure your lives in retirement.
What happens after you’ve gone is something that can be difficult for people to address.
Talking with your partner about the issue can put practical plans in place and provide real peace of mind for both of you.
As with all of these stages in life, bringing in an expert adviser can provide a neutral voice and independent advice on the best way forward.
Getting expert advice on putting a will in place and planning what happens with your estate can:
It’s particularly important for couples to co-ordinate on this process because of factors such as transferrable allowances and inheritance tax nil rate bands.
The worlds of romance and finance may seem to be very far apart.
Yet couples who don’t engage with each other when it comes to money matters can make life difficult for themselves and their loved ones.
Conversely, planning the future together can actually bring you closer together and demonstrate the real commitment you have for each other.
Expert, independent financial advice can help you to map out and achieve a future which you both want.
From setting up home to what happens after you’ve gone, we can assist at every stage with practical, actionable insights.
To find your perfect financial advice partner, get in touch today.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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Couples financial planning involves partners working together to manage money, set shared goals and plan for life events such as buying a home, raising children, retirement and estate planning.
Open financial conversations build trust, reduce misunderstandings and help couples make better long-term decisions about savings, investments and protection.
There is no one-size-fits-all answer. Some couples combine finances fully, others partially, and some keep them separate. The key is transparency and agreement on shared goals.
The earlier the better. Major life events such as moving in together, buying a home, having children or planning retirement are ideal times to start.
A financial adviser provides impartial guidance, helps align goals, identifies risks and creates a tailored financial plan covering mortgages, protection, pensions and estate planning.
