How the UK Pension tax-free lump sum works
For many people approaching retirement, the pension tax-free lump sum is one of the most attractive features of their pension savings. It allows you to take up to a quarter of your pension pot as a one-off payment without paying income tax – up to a current maximum of £268,275. While this can seem straightforward, the rules are more complex than they first appear and the consequences of taking the lump…
General Protection for New Families
Now that you have a new member of the family, you might be thinking of how best to protect them, should the worst happen to you. Think of insurance like a safety net. It could pay out if you were unable to provide for your family, if you were ill or passed away. One of the main insurances is Life Insurance – this will pay out a cash lump…
How Much Should I Contribute to my Pension?
There’s no universal answer—but there are useful benchmarks that can help guide decisions around pension contributions. What matters most is aligning your contributions with your personal circumstances, goals, and timeline, rather than relying on a one-size-fits-all percentage. For many, contribution levels need to increase over time, particularly if: You started saving later You’ve had gaps in employment You’re aiming for a more flexible retirement The encouraging part is that…
Pension Tax Relief
You’ll often pay Income Tax on money you receive. But if you put that money into a pension, the tax you would normally pay is usually added to your pension instead. This is called tax relief and means your savings are usually boosted by 20% or more, depending on your rate of Income Tax. It’s one of the best things about saving into a pension, as the government is effectively…
Investing Beats Cash
Investing has outperformed cash savings for a third consecutive year according to data from Moneyfacts, despite elevated cash ISA interest rates. The data underpins important considerations about the risk of holding too much cash ahead of the cut to the cash ISA allowance for under-65s – due to be implemented from April 2027. Moneyfacts found the average investment ISA fund saw growth of 11.22% between February 2025 and February 2026.…
Intergenerational Financial Planning
Intergenerational financial planning is about creating a structured approach to managing and transferring wealth across generations. For British families, this process is increasingly vital as economic pressures, complex family dynamics and evolving tax rules shape the financial landscape. By starting early and building a clear roadmap, families can secure their financial future, support loved ones, and navigate challenges like inheritance tax (IHT). This piece explores why intergenerational planning matters, how…
Investing Myths Holding You Back
Too many people still believe outdated myths about investing that prevent them from growing their wealth. Have you fallen for any? Myth 1: “Investing is too risky for me.” Truth: But is avoiding investing actually riskier in the long run? Inflation quietly erodes savings — smart investing balances risk and reward. Myth 2: “I need a lot of money to start.” Truth: What if you could start with…
Government Reversal
The Government has reversed plans to impose inheritance tax (IHT) on farms worth in excess of £1 million. The level of the Agricultural and Business Property Relief threshold will now be set at £2.5 million for individuals or up £5 million for married couples when it becomes law in April this year. Above this threshold, 50% relief (effective IHT rate of 20%) will still apply to qualifying assets. The Government asserts…
Preparing for Retirement
Retirement planning is the cornerstone of financial security in your later years. It’s a process that requires careful thought, consistent effort and adjustments over time to ensure your savings can support the lifestyle you envision. In the UK, the Pensions and Lifetime Savings Association (PLSA) estimates that a “moderate” retirement lifestyle requires approximately £31,700 per year. This figure provides a useful benchmark for planning, helping you calculate how much you need…
Organising your Finances for 2026 – Part 3 – Outgoings
As well as understanding your personal income and outgoings, and setting up pots for your financial security and future plans, you should also look to reduce your bills where possible. This could mean your monthly essential outgoings reduce, allowing you to have extra money each month which you could add to your savings, or use as discretionary spending. Firstly, check through your bank statement to see if there are…
