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.
Pssst! Want some free money?
Hopefully that has got your attention.
This isn’t my money we’re talking about, but funds from a far better capitalised source: the Government.
That may sound surprising, but despite the well-publicised tax rises from the last two Budgets, the Government does give out money as well as taking it away.
I’m not talking about statutory benefits such as the State Pension or child benefit.
What I’m referring to are the incentives which the Government gives for people to save and invest.
All too often, people are either unaware of these incentives or end up missing out because they don’t take action soon enough.
Let’s take Individual Savings Accounts (ISAs) to start with.
As you may be aware, ISAs are accounts where you can enjoy the proceeds free of tax, whether that’s in the form of a cash ISA, stocks & shares ISA or Lifetime ISA (although these are being phased out).
You can save or invest up to £20,000 across all your adult ISAs each tax year and all interest, dividends, or capital gains within an ISA are tax-free.
The ISA deadline for the current tax year is rapidly approaching – it’s April 5th.
If you can afford to and it forms part of your financial plan, you really should take advantage of the opportunity to maximise tax-free ISAs as much as you can.
While the value of investments in stocks and shares ISAs can fall as well as rise, in the long-term – as I referred to last month – investing money has outperformed returns on cash.
Putting some of your investments in an ISA shelters them from tax and, if you do this regularly, the potential to see your money grow is compelling.
“But this isn’t free money,” you might argue, but tax-free makes a material difference to investment returns.
However, when it comes to pensions, there really is free money for our clients.
If you save in a workplace pension, your contributions are made from pre-tax income, thus saving you anything from 20% to 45% according to the size of your wage packet.
Still not free money?
OK, how about the fact that if you have a private pension – such as one which you’ve created from consolidating pensions from previous workplaces – and you put money into that from your post-tax income, the Government will add 20p to 45p in tax relief for every £1 you put in, depending on your tax rate.
While this is subject to various income and contribution limits, it is without doubt free money.
What’s more, the Government will also give free money to your children or grandchildren.
Any parent can set up a child’s pension for their child.
It doesn’t have to start with a huge lump sum or have vast amounts put into it.
Regular contributions – even small ones – can really add up over time and make a nest egg for later life.
What’s more, other family members – such as grandparents, aunts and uncles – and family friends can also contribute.
Currently a maximum of £2,880 can be paid into a child’s pension for any one tax year.
And – here’s where the free money comes in – the Government will pay 20% tax relief on those contributions, making it £3,600 a year before a single penny has been earned from investments.
Start early, contribute regularly and your child could potentially have a £1m pension pot by the time they can access it – at age 58 under current legislation.
Investing in a Junior ISA can also give your children a great start to their adult lives.
Junior ISA contributions don’t count towards your personal ISA allowance. Up to £9,000 a year can be put into a Junior ISA in any one tax year and your child gets to keep all interest, dividends, or capital gains tax-free when they turn 18.
There really is no time like the present to make a start on making a difference to your life or the lives of your children.
It worked for me – my daughters have house deposits as a result of Junior ISAs started when they were babes in arms.
They also have started pensions to capture the free money and harness the power of compound investment returns to unlock the financial independence that a £1m pension pot provides.
It’s also easy to do. Get in touch with a Fairstone adviser to find out how you can make the most of what is on offer and how that could fit into your financial life.
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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For many people approaching retirement, one of the most common questions is: “Will what I’ve saved actually be enough?”
A £250,000 pension pot may not sound like a life changing sum, but with careful planning it can go further than many expect.
The key isn’t just the size of the pot, but how it’s used, how income is taken, and how it fits alongside other retirement income such as the State Pension.
Under current pension rules, unless there are any previously protections most people can usually take up to 25% of their pension as tax‑free. This is called the pension commencement lump sum (PCLS).
For a £250,000 pot, that means:
How the remaining pension is used will largely determine the level of income, flexibility, and certainty available throughout retirement.
Being able to take up to 25% of a pension as tax‑free cash is one of the most well‑known benefits and features of pensions.
However, deciding whether to take the full amount and when isn’t straightforward.
I often speak with people approaching retirement who assume they should automatically take the maximum tax‑free lump sum simply because it’s available.
Whether this is the right decision depends on what the money will be used for and how it fits into the wider retirement plan.
For some, taking tax‑free cash can serve a very clear purpose. This might include:
There are also situations where taking the full tax‑free amount may be less beneficial.
Leaving funds invested within a pension can allow them to continue growing in a tax‑efficient environment, potentially increasing the long‑term income the pension can provide.
For others, it may make sense to delay taking tax‑free cash, accessing it gradually over time or using it later in retirement when income needs change.
Tax is also an important consideration. While the lump sum itself is tax‑free, removing money from a pension reduces the amount available to generate future income and can affect how remaining withdrawals are taxed in later years.
The question isn’t just “how much can I take tax‑free?” but “what role will this money play?”
The timing and use of tax‑free cash should align with long‑term objectives rather than being seen as a default decision.
One option is to convert some or all of the pension into an annuity, which provides a guaranteed income for life.
At current rates, a healthy 65‑year‑old purchasing a single‑life, level annuity could receive around £14,000+ per year from the remaining £187,500 pension pot.
The final income depends on several important choices:
Annuities can provide reassurance and simplicity, but once purchased they offer limited flexibility and cannot be changed later.
Another approach is flexi access drawdown, where pension funds remain invested and income is taken as needed.
A commonly used planning assumption is a 4% withdrawal rate. Using this as an illustration:
The intention of this approach is to allow the pension to continue growing while supporting income over the long term, often planned for 30 years or more.
The ‘4% option’ isn’t a rule or guarantee. Outcomes are influenced by:
Drawdown offers flexibility and potential growth, but also exposes retirees to investment risk and requires regular ongoing reviews.
Many choose a blended approach, combining the strengths of both methods.
For example:
This strategy can help balance peace of mind with adaptability, particularly as spending needs often change throughout retirement.
The Retirement Living Standards are widely used as a national benchmark to help people understand what different lifestyles in retirement may cost.
They are based on independent research carried out by the Centre for Research in Social Policy at Loughborough University, involving detailed discussions with members of the public across the UK.
These figures represent estimated spending, not income, and they assume retirees own their home outright with no mortgage or rent to pay.
| 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 |
A £250,000 pension, when combined with the State Pension, can often support a minimum lifestyle.
Achieving a moderate or comfortable lifestyle usually requires additional pensions, savings, or other sources of income.
Two people with identical pension pots can have very different retirement outcomes.
The key factors in retirement outcomes include:
As an Independent financial adviser, I speak with many people as they approach retirement, and one common theme is how long they expect their savings to last.
With people now living well into their 90s and often beyond, retirement planning increasingly needs to account for three decades or more of income.
Flexibility, sustainability and tax efficiency therefore become just as important as the size of the pension pot itself.
A £250,000 pension pot should not be viewed in isolation. When combined with the State Pension and structured appropriately, it can play a vital role in supporting a secure retirement.
Understanding the options and how they align with personal circumstances is essential.
Pension and tax rules can change, and there are risks with every approach, which is why personalised financial advice is so valuable when approaching all retirement decisions.
For advice on how to approach your retirement, get in touch with one of our team 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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A £250,000 pension pot can support retirement when combined with the State Pension, particularly for those targeting a minimum lifestyle.
Achieving a moderate or comfortable lifestyle usually requires additional income from other pensions, savings or investments.
Most people can usually take up to 25% of their pension tax-free.
From a £250,000 pension pot, this would equate to £62,500, with the remaining £187,500 staying invested to provide retirement income.
Not necessarily. While taking the full tax-free lump sum can be useful for clearing debt or funding large expenses, leaving money invested in a pension may provide greater long-term income and tax efficiency.
The right decision depends on your overall retirement plan.
Income depends on how the pension is used.
An annuity could currently provide around £14,000 per year from £187,500, while drawdown might initially support around £7,500 per year based on a 4% withdrawal assumption.
These figures are illustrative and not guaranteed.
Drawdown carries investment risk, as income depends on market performance and withdrawals.
An annuity provides certainty and guaranteed income for life but offers less flexibility.
Many retirees use a combination of both to balance security and flexibility.
With careful planning, a £250,000 pension can last 30 years or more, particularly when combined with the State Pension.
Longevity, spending levels, investment returns, inflation and tax all play a role in determining sustainability.
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.
While the 2025 Budget packed less of a punch than many had feared, it still brought in some important changes.
Subtle adjustments to tax thresholds, allowances and rules can still have a meaningful impact — and without proper planning, they can quietly erode your financial position.
Here we look at some of the key changes that will take effect from the start of the 2026/27 tax year and what they may mean for you.
One of the biggest measures confirmed in the Budget is that personal income tax thresholds will remain frozen at their current levels until at least April 2031.
For England, Wales and Northern Ireland this is as follows:
| Band name | Taxable income threshold | Tax rate |
| Personal allowance | £12,570 | 0% |
| Basic Rate | £12,571 to £50,269 | 20% |
| Higher Rate | £50,270 to £125,139 | 40% |
| Additional Rate | £125,140 and above | 45% |
The Scottish Government sets its own rates and thresholds which are currently as follows:
| Band name | Taxable income threshold | Tax rate |
| Personal allowance | £12,570 | 0% |
| Starter Rate | £12,571 to £15,397 | 19% |
| Scottish Basic Rate | £15,398 to £27,491 | 20% |
| Intermediate Rate | £27,492 to £43,662 | 21% |
| Higher Rate | £43,663 to £75,000 | 42% |
| Advanced Rate | £75,001 to £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
In the UK outside Scotland, this freeze effectively increases tax revenues over time without changing headline rates.
As earnings rise with inflation, more taxpayers will be pulled into paying tax and into higher bands – a phenomenon known as ‘fiscal drag’.
Even without a direct increase in tax rates, many of us can expect:
This “stealth tax” effect is one of the most significant long-term revenue raisers in the Budget.
In addition to the threshold freeze, the Government has confirmed changes to tax rates on certain types of passive income:
The tax on interest and property income is due to rise by two percentage points across bands:
For those with investments or planning disposals:
This change effectively narrows the gap between CGT and income tax, particularly for entrepreneurs and business owners.
The Budget did not change the headline pension tax allowances or the lifetime limit, but there are important developments.
From 6 April 2029, the National Insurance relief on salary-sacrifice pension contributions will be capped at £2,000 per employee each year; above that level contributions will attract NICs.
This affects higher earners and those making larger salary sacrifice pension contributions.
It makes reviewing pension funding strategies all the more important in the coming years.
While the nil-rate bands and residence nil-rate band remain at their current levels until at least April 2031, there are ongoing reforms to reliefs.
Agricultural and Business Property Reliefs are being revised and will include caps on relief eligibility.
The 2024 Budget announced that defined contribution pension funds will from part of your estate for Inheritance Tax from April 2027 — something to monitor closely in your estate planning discussions.
Given the above changes, it’s worth considering the following proactive steps before the 2026/27 tax year begins:
With thresholds frozen, small income increases can have a larger tax impact.
Assess whether opportunities exist to time income or gains more tax-efficiently.
Utilise ISAs and pension allowances to shelter income and growth from rising effective tax burdens.
Consider whether holding dividends and interest-bearing assets in tax-efficient structures could reduce exposure to the higher passive tax rates.
With reliefs and nil-rate bands frozen and evolving, earlier planning can help mitigate future tax liabilities.
While the headline tax rates didn’t see the dramatic overhaul some anticipated, the Autumn 2025 Budget delivered significant changes that will affect many taxpayers.
The prolonged freeze on income tax thresholds, increased taxes on passive income, and tighter pension relief mechanics mean that careful planning is more valuable than ever.
We’re here to help you navigate these changes. For tailored advice on how the 2026/27 tax changes affect your personal finances, speak to one of our advisers 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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The key changes include a continued freeze on income tax thresholds, higher dividend tax rates from April 2026, increased tax on savings and property income from April 2027, higher Capital Gains Tax on certain business disposals, and upcoming restrictions on National Insurance relief for pension salary sacrifice.
Fiscal drag occurs when tax thresholds remain frozen while wages rise with inflation.
As a result, more people pay income tax or move into higher tax bands, reducing take-home pay even though tax rates have not increased.
Yes. Even modest pay rises can push more of your income into higher tax bands.
Over time, this can significantly increase the amount of tax you pay without any change to headline tax rates.
From 6 April 2026:
These increases apply to dividends held outside tax-efficient wrappers such as ISAs and pensions.
From April 2027, tax on savings interest and property income will increase by two percentage points across all income tax bands.
This means more savers and landlords may see higher tax bills, particularly with thresholds frozen.
No. Income and gains within ISAs remain free from income tax and Capital Gains Tax.
With rising taxes on dividends, interest and capital gains, ISAs become even more valuable as a tax-efficient wrapper.
However, it is important to note that the 2025 Budget did change the amount that people can put in a cash ISA.
From April 2027, the cash ISA limit for under-65s drops from £20,000 per tax year to £12,000 per tax year.
The £20,000 limit for stocks and shares ISAs remains unchanged, as does the £20,000 cash ISA limit for those aged 65 and over.
From 6 April 2026, the lower Capital Gains Tax rate for Business Asset Disposal Relief and Investors’ Relief will increase to 18%.
Consequently, this reduces the tax advantage for entrepreneurs and business owners when selling qualifying assets.
While pension allowances remain unchanged, from April 2029 National Insurance relief on salary sacrifice pension contributions will be capped at £2,000 per employee per year.
Contributions above this level will attract NICs, affecting higher earners.
Inheritance Tax nil-rate bands remain frozen until at least April 2031.
However, Business Property Relief and Agricultural Property Relief are being reformed with new caps, and from April 2027 defined contribution pension funds will form part of your estate for IHT purposes.
Key steps include reviewing your income structure, maximising pension and ISA allowances, planning dividend and interest income more carefully, and reviewing estate and succession plans well ahead of time.
Given the cumulative impact of frozen thresholds, higher passive income taxes and pension changes, tailored financial advice can help reduce tax exposure and protect long-term wealth.
As a result. early planning is particularly important.
The beginning of the year is a great time to start afresh – so why not try some New Year’s financial resolutions?
Each of the suggestions below could help you and your family to face the future with confidence – whatever may happen.
Taking action now could provide major benefits later down the line and provide valuable peace of mind in the meantime.
Whether you’re close to retirement or it’s decades away, it’s never a bad time to take a good look at where you stand when it comes to your pension.
If you have a workplace pension, look at how much you’re contributing and how that money is being invested.
While it’s tempting to think everything is sorted because you’re paying in every month, you may be surprised when you take a second look.
Are your pension investments performing well?
Is your pension fund being invested at the right risk level for you?
Could you afford to pay in a little more each month – and how could that help build your fund?
If you have paid into a number of different pension funds during your working life, take some time to track them down. The Government’s free pension tracing service can help with this.
Once you’ve got details of all your pension plans, you may wish to consolidate some or all of them into a single fund.
You need to think carefully about this – check our pension consolidation guide for more information – but consolidation can help cut fees and simplify pension management.
Talk to a financial adviser to get expert help on what could work best for you – and how to do it.
If you’re aged over 55 (or you turn 55 this year) then you can get access to up to 25% of your defined contribution pension as a tax-free lump sum.
This may be useful if you want to want to pay off your mortgage or have other debts you would like to settle.
However, you don’t have to take all the money in one lump and there are ways in which that tax-free cash can grow.
Check out our guide to pension lump sums to find out more.
As well as resolutions, people like making predictions at this time of year.
However, the reality is that most of us have no idea what could be around the corner.
Being prepared for what life could throw at you is a great way to start 2026.
Protection policies such as life insurance, critical illness insurance, income protection and mortgage protection can help take away financial worries in difficult and stressful circumstances.
Are your existing protection policies enough?
Check what cover you currently have in place and assess whether it’s enough for you and your family.
Then consider whether additional policies are needed to cover other eventualities – and enjoy greater peace of mind this year and other years to come.
Mortgages remain most people’s biggest financial consideration.
With interest rates starting to fall, the coming year is a good opportunity to take stock of where you are and whether you could get a better rate.
Talk to a mortgage adviser who will be able to survey the current market and provide expert insight into your next move.
As well as getting a better rate, you could find out ways to pay your mortgage off earlier.
One interesting section about November’s Budget was when the Chancellor talked about the power of investing.
Rachel Reeves pointed out that someone who had invested £1,000 a year in an average stocks and shares ISA every year since 1999 would be £50,000 better off today than if they’d put the same money into a cash ISA.
While it’s important to say that the value of investments can go down as well as up, the difference in the example above is startling.
This is one of the reasons why if you are looking for a long-term return on your money, consider looking into investments.
Talk to a financial adviser who will be able to help you choose investments which match your financial goals and attitude to risk.
If you already have investments, it’s a good idea to check on their progress.
Are they performing in accordance with your goals?
Does the risk level match your outlook?
Are there ways you could be making your money work harder?
Getting a good grip on your investment management could pay dividends not just this year but in years to come.
Whether you have a cash ISA, a stocks and shares ISA or a mixture of both, you should try to maximise your annual £20,000 tax-free allowance.
This will ensure that as much of your savings and investments as possible is free from tax.
The 2025/26 tax year ends on April 5 in 2026 so make this a red letter day as you cannot roll over any of your ISA allowance into the next tax year.
The November Budget reduced the amount that under-65s can pay into a cash ISA from £20,000 to £12,000 from April 2027.
Take action now if cash savings are a priority.
Thinking of the future often means thinking of your descendants.
The start of the year is a good time to assess how you’re preparing your children (or grandchildren) for their financial future.
Their retirement may seem a long way away, but starting a child’s pension is one of the very best gifts you can give – and it can literally last a lifetime.
On a shorter timescale, Junior ISAs are a great way to set your child or grandchild up for the start of their adult lives.
Like children’s pensions, Junior ISA contributions are tax-free and can be made by other relatives and friends.
If your children or grandchildren are grown up but still starting out when it comes to property, you might want to consider opening the ‘Bank of Mum and Dad’.
Helping family out with home loans, deposits or mortgages is becoming more commonplace as house prices continue to rise.
However, it is a good idea to talk to a financial adviser before embarking on assistance since it will have implications for you as well as your offspring.
No-one likes to contemplate the end of their life, but thinking about what will happen when you’re no longer around is a vital aspect of financial planning.
Estate planning is name given to the process that works out how you would like your assets to be managed and passed on after your death.
With inheritance tax affecting more and more families, it is a good idea to plan now to maximise how much you could pass on to your loved ones.
Things like making a will and getting Lasting Power of Attorney can give you great peace of mind now as well as making your family’s lives easier when you are no longer around, especially at a time of stress and grief.
Talking to a financial adviser can help start the estate planning process while you will also need professional legal advice on things like wills and lasting power of attorney.
If you’ve never taken professional financial advice before, the start of a New Year is a great time to consider it.
A financial adviser can help you clarify your financial goals, provide a plan to help you reach them, monitor and review progress and make changes in line with your circumstances.
In a recent survey, 91% of people who paid for financial advice said it was either helpful or very helpful in helping them manage their money.
If you already benefit from financial advice, maybe 2026 is the year you share that benefit by recommending friends or family consider talking to an expert.
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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.
Early retirement is something which may sound extremely attractive as you enjoy the Christmas holidays and make the most of time off from work.
But just how feasible is retiring early, how much money do you need and how can you best approach it?
Here we take a look at early retirement, examine the practicalities of giving up work and the options available to people looking to wind down and enjoy life without the 7am alarm call.
As people live longer and traditional final salary pensions become increasingly rare, achieving early retirement depends on building a strong financial foundation.
That involves boosting savings, investing with a long-term perspective, and planning for healthcare, inflation, and potential market fluctuations.
With a well-thought-out plan and regular reviews to stay on track, early retirement can shift from a distant dream to a reachable goal.
Before working out how much money you might need, it helps to define what a comfortable retirement looks like for you.
Some people imagine travelling or pursuing hobbies, while others just want enough stability to keep their current lifestyle. The income needed for these goals varies a lot from person to person.
In the UK, the full new State Pension offers a basic income to those with sufficient qualifying National Insurance contributions.
However, for most people, this is only a part of their retirement income. Clarifying your retirement goals helps determine how much extra savings you need to build up before leaving work.
As well as what you want to do in retirement, the amount of money you need will depend on a number of factors.
This includes your planned expenditure, any debts you have such as a mortgage, whether you have a partner, how much they earn and whether you plan to leave money after your death.
All this is not easy to figure out. However, Pensions UK has developed a tool called the Retirement Living Standards. This shows the cost of living at retirement across three different living standards: minimum, moderate and comfortable.
Breaking down spending in categories including house, food, transport and holidays, the tool comes up with figures for costs for a single person in retirement and for a couple in retirement.
The figures are updated every year to take into account the general rate of inflation and price rises in those key categories.
As of December 2025, it estimates the following annual cost of retirement living as follows:
| Minimum | Moderate | Comfortable | |
| One person | £13,400 | £31,700 | £43,900 |
| Two people | £21,600 | £43,900 | £60,600 |
While this is useful as a general guide, it will not take into account your particular circumstances such as any debts you have or the size of your pension pot.
A financial adviser can help you understand how much money you may need in retirement by producing a more personalised forecast.
They can also use cashflow modelling to show you different approaches to saving towards retirement could affect how much money you end up with.
Cashflow modelling can also show different scenarios to account for factors like inflation levels and varying investment returns.
Time is one of the most influential factors in building a pension pot which could allow you to retire early.
The sooner you start making contributions, the longer savings can benefit from compound growth.
Even small, regular contributions in your 20s or 30s can grow substantially over time, offering greater flexibility in later life.
Life commitments such as mortgages, childcare costs, or education fees often delay pension contributions.
However, reviewing your finances as your income increases can help you benefit from higher earning years and make up any shortfall as you approach retirement.
Getting expert financial advice can help you to select which pension investments best match your attitude to risk.
A financial adviser will also give you regular updates on how your investments are performing and will monitor the market to see whether you can improve that performance.
Retirement income usually comes from a mix of the State Pension, workplace pensions, and private savings.
Many people also utilise Individual Savings Accounts (ISAs), investments, or property income to top up these sources.
Having diverse income streams provides flexibility in how funds are withdrawn and helps manage taxes and lifestyle needs over time.
While pensions grow in a tax-efficient manner, withdrawals are usually taxed as income. In contrast, proceeds from ISAs can be withdrawn tax-free.
Understanding how these sources work together helps you organise your finances in a way that supports your objectives.
If you have a defined benefit pension which you’re looking to finance your retirement, you will need to choose how to access the money.
You could choose to withdraw money from the pot as and when you need to — this is known as pension drawdown.
You could choose to use some or all of your pension pot to buy an annuity. A lifetime annuity is an income which will be paid to you for the rest of your life, regardless of how long you live.
Instead of a lifetime annuity, you might want to buy a fixed-term annuity. This provides income for a specific period of time such as 5, 10 or 20 years. At the end of the term, a lump sum is often paid out.
Fixed-term annuities are becoming more popular for people to finance the ‘gap’ between taking retirement and receiving your State Pension.
Taking professional advice can be highly beneficial when it comes to choosing how to fund your retirement.
Your financial adviser can advise on which financing route would work best for you and can help guide you through the variety of options available when it comes to annuities.
And if you are intending to pursue the drawdown route, a financial adviser can help you on investment decisions and the most tax-efficient way to take money from your pension pot.
Planning for early retirement often involves balancing ambition with practicality.
You will need to consider carefully how long your savings may need to last, especially as life expectancy continues to rise in the UK.
Retiring at 55 could mean funding up to 30 years of living costs – and potentially even more.
Even with careful saving, unforeseen events such as market fluctuations or personal circumstances can greatly affect outcomes.
Your financial adviser can monitor your progress and keep you updated on pension and taxation rules to help you adapt to changing conditions.
An adviser can also act as a useful ‘sounding board’ for your ideas about your retirement and provide much-needed peace of mind and confidence about the financial decisions which shape the rest of your life.
Achieving financial independence before State Pension age requires time and discipline.
Knowing what income you will depend on and how long it needs to last can help set realistic goals for the future.
If early retirement is on your mind, speak to a financial adviser today to explore whether it’s achievable for you — and the steps you can take to make it happen.
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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It may not sound very festive, but pensions for children or grandchildren are some of the best Christmas gifts you can ever give them.
Not only can starting a pension for your offspring give them a great financial start in life, but also it is a tax-efficient way to pass on wealth.
With inheritance tax already hitting a growing number of families, this could be something your children and grandchildren will thank you for in future.
Let’s take a look at the benefits of pensions for children and how you can go about setting them up.
One of the greatest weapons in any investor’s armoury is time. The effect of compound growth means that the more time money is invested – providing returns remain positive – the more it will grow.
Setting up a pension while your children are still young means that even small contributions have many decades to grow.
Think of a child’s pension as the acorn from which an oak tree can grow.
Putting money into a pension also means you won’t have to worry about your children frittering funds away before they’re mature enough to value financial security.
Under current legislation, your child or grandchild won’t get access to their pension fund until they’re at least 58.
There are several tax advantages to starting a pension for your child.
Firstly, like an adult pension, contributions to a child’s pension get a 20% boost from the Government in the form of tax relief, even though your child or grandchild is unlikely to be paying tax. This is something which Junior ISA accounts or cash savings accounts don’t give.
Secondly, making regular contributions to a child’s pension can count as a regular gift from income.
This means that the money may be free from inheritance tax (IHT) and it will also reduce the size of your estate for IHT calculations, while passing on wealth to your descendants.
Thirdly, any growth generated by the pension will not be liable for income tax or Capital Gains Tax.
When your child comes to draw down on the pension, current tax legislation means that 25% of the pension can be taken tax-free. The remaining 75% may attract income tax, under relevant regulations.
You can start a pension for a child from their birth.
It is important to note that only a parent or legal guardian can set up a child pension.
However, once a child pension is set up, anyone can contribute, including grandparents, godparents, family members or friends.
The parent or legal guardian looks after the child pension until the child turns 18, at which point they are responsible for it.
As mentioned above, they will only be able to access the pension once they reach the age of 58, under current legislation. This age may rise in the future.
Under current legislation, a maximum of £2,880 can be paid into a child’s pension for the 2025/26 tax year. Adding to the 20% tax relief, this becomes £3,600 a year.
As an illustration of the power of compound growth, if you invested just £2,880 for one year for your child at the age of 8, by the time they were able to take the money out at the age of 58, the money would have grown to more than £26,500 (assuming an annual return of 4%).
Add in regular contributions and you can easily see how relatively small amounts of money can potentially grow into a sizeable pension pot. However, it is important to point out that this is dependent on investments producing a positive return.
While your child will have control of their pension once they hit 18, you and others can still put money into that pension.
Again, making regular gifts from income into the pension can help reduce inheritance tax burdens while passing on wealth to your child.
There are a number of different pensions available to start up for your child and it can be daunting trying to work out which is best for them – and for you.
That’s one of the reasons why it is a very good idea to take expert financial advice before deciding on:
An independent financial adviser will also help you to look at other aspects of your family finances, including ensuring that your own future is financially secure, as well as that of your child or grandchild.
The idea of your child or grandchild one day having a pension may seem like decades away while they’re excitedly unwrapping their Christmas presents.
However, setting up a pension now could ensure not only they have a brighter future but their own children and grandchildren could do too.
Talk to us today to find out more about putting in place a true gift for life, not just for Christmas.
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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At first glance, cashflow modelling doesn’t sound like the most exciting thing in the world.
But what if I told you that I’ve seen clients so shocked and pleasantly surprised when I’ve taken them through a cashflow modelling exercise that they’ve taken the print-out straight to the pub to show their friends?
Used correctly, cash flow modelling can provide you with the roadmap to get to your desired financial destination – or maybe even somewhere you never thought you could get to.
It can, literally, change your life.
How? Let me explain.
Put very simply, cash flow modelling is a form of software which allows you to map out how much money you could have over time.
You input figures such as your salary, the current value of any assets you have, what investments you have, the value of your house, etc.
You can then use that information to model what will happen to your money under a wide variety of different scenarios.
With each scenario, the software will show you in number and graph form how much (or how little) money you will have every year for however many years you specify.
Because the software is so adaptable and allows for so many variables, cash flow modelling can be used for almost any kind of personal financial forecast.
For example, you can see what effect a rise or a fall in inflation will have, what difference a 3% increase in annual investment returns will have on your assets and how much your pension could increase if you invest another £100 a month.
Cashflow modelling is particularly good at demonstrating the difference between potential returns at different investment risk levels because the software has market data dating back to 1990.
This means that it can account for and illustrate the effects of market volatility and market shocks such as the dotcom boom and bust of the early 2000s and the financial crisis of 2008.
It’s also useful at every stage of your financial journey, from first starting a pension to accumulating wealth, through drawdown of your pension pot and even into planning for potential care costs later in life.
The best way to show what cash-flow modelling can do? A real example.
Imagine turning £18,000 into £60,000 overnight.
Meet my client. She earns £160,000. Her partner earns £42,000.
Their question: Are we being tax-efficient – and how do we afford nursery fees without wrecking cash flow (their child is about to go nursery)?
They’ve got £50,000 in the bank and £250,000 in pensions. The pensions are invested cautiously (risk level 4/10) and modelled back to 1990.
We tested two changes:
Sacrificing £60,000 of salary drops her taxable income to £100,000 – the threshold where free childcare vouchers kicks back in.
Before: £160,000 salary → £95,786 net
Partner: £42,000 → £33,759 net
Joint: £130,346 net
Less £93,000 annual spend (including £10,000 nursery) → £37,346 left
After the change: joint net income falls to £102,317 – a drop of £28,029.
But £60,000 lands in her pension overnight.
And childcare costs of £10,000 disappear, cutting annual spending to £83,000 from £93,000.
Net drop in net income – £18,000.
Effectively, they’ve swapped £18,000 of lost disposable income for £60,000 of long-term wealth.
They’ll repeat it for three years – £180,000 total into pensions for a net cost today of around £54,000.
There are plenty of moving parts, but we assume any surplus income (above spending and pension contribution) sits in cash which, to be clear, wouldn’t be our recommendation.
Then we ran two forecasts:
Baseline: No pension contributions, cautious portfolio (risk 4/10), nursery fees paid from post-tax income. We also assume they will need to withdrawal £6,000 a month from their portfolio from age 60 to fund their lifestyle in retirement.
Revised: £60,000 p.a. pension contributions, higher-growth portfolio (risk 8/10), claiming childcare vouchers and allowances. We also assume they will need to withdrawal £6,000 a month from their portfolio from age 60 to fund their lifestyle in retirement.
The cashflow modelling graphs tell the story (amounts in red indicate a shortfall in funds):
Baseline scenario:
Revised scenario:
Two key decisions – sacrificing an amount of income into your pension over the next three years while it remains the most tax-efficient time to do so and increasing your risk profile – can have a powerful impact.
While it is important to stress that investments can go down in value as well as increase and that cashflow modelling produces forecasts rather than definite outcomes, the potential scenarios from those different decisions are very clear to see.
Talking about money in theory is never as impactful as talking about money in practice.
Not only does cash flow modelling look at your potential future real-life money situation, it gives you the facts and figures in black and white.
It is often said that seeing is believing and in that respect, cashflow modelling is the best way in which you can see your future money situation.
When you can visualise your life on a screen, it feels tangible and, in many cases, it feels achievable.
Clients come away after a cashflow modelling exercise with a real sense of security, of knowing that they’re doing the right thing to achieve their financial goals.
Sometimes it can unlock some really life-changing decisions and give people the confidence and peace of mind to put those decisions into action.
It’s also important to point out that cash flow modelling isn’t just for the future: it can help people today as well as tomorrow.
For example, after going through a cashflow modelling exercise with one client, I was able to say to them “actually, you’re saving too much money at the moment. You can afford to go on that exotic holiday this year that you’ve always thought you couldn’t”.
Cashflow modelling can help people in the here and now, let them enjoy their lives more and not put things off.
It would be a mistake to think cashflow modelling is only useful if you’re near retirement and want to see how long your pension pot will last.
For example, it can be tremendously helpful for people in their 20s or 30s who are wondering whether they can afford to start a family and, if so, how large a family that could be.
Equally, if you have retired but want to know how to make your money go further, cashflow modelling will be able to show you the likely outcomes of different scenarios.
Far from being a dry technical tool, cashflow modelling is one of the most powerful and insightful weapons in the financial adviser’s armoury.
While it’s not a crystal ball, it’s definitely a roadmap – and one which you would do well to consult.
To find out how cashflow modelling can help map out your future, 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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