Your magazine from Radiant Financial Group - for your brighter future
Big tax changes for 2024/25:
Abolishing the Lifetime Allowance for pensions
Taxing Times
The £26 billion lost pension maze
Succession planning a family affair
Radiant Asset Management 2 year anniversary
Growing demand for mortgages for older borrowers
Increasing the selling power of your home
Improved health, wellbeing, and mindfulness
Iam delighted to welcome you to the first edition of our Client Magazine, Horizons. The purpose of this publication is to provide you with informative and topical articles on areas affecting your financial future, as well as some interesting pieces on health and well-being.
We will be publishing this magazine on a quarterly basis, and we would very much appreciate your views on the current edition and would welcome input from you on areas you would like us to cover in future editions.
The only constant in financial planning is change! This edition covers updates on some significant changes in pensions legislation that could impact all our clients. In addition, the tax regime in the UK continues to confuse most people and is constantly shifting. There is no doubt that there could be some further complexities later this tax year, as a change in government seems (at least at this stage) inevitable.
The time to take financial advice is always now. And yet under 20% of the UK population currently has a Financial Adviser. At Radiant we pride ourselves in working with multiple generations of families and businesses, proving that it is never too early to start planning your financial future with a qualified, caring adviser.
We are also celebrating some great milestones as a Group. Our Discretionary Fund Management Business celebrates 2 years of trading, with outstanding investment performance and amazing client feedback. Our expanding geography as a Group now enables us to truly offer a local service on a national basis, with offices in every Region of the UK, which will shortly expand further. And as a Group we continue our commitment to the environment as a Carbon Positive Organisation, as well as keeping a keen eye on further improving our social and governance policies.
Simon Cogman-Hellier EditorWe hope we set the standard and show that businesses can be successful whilst adding positively to the environment.
Radiant Group stands and falls by the quality of the advice and service that we provide to our clients. We continually receive positive and warming feedback from our clients, but it is always great to receive more communication from you. I would welcome your views on the Radiant Group, both positive and constructive, as we strive to extend our range of advice and improve on our services. Please email us your feedback to hello@ radiantfinancial.co.uk, your input will be listened to and valued. I do sincerely hope that this magazine will be an interesting and useful read for you. We look forward to continuing to provide you with the very best in advice, information and service.
Radiant Financial Planning, part of the Radiant Financial group is a specialist provider of financial advice, tax planning, employee benefits and business consultancy services.
Our clients include large and small businesses, entrepreneurs, owner-managers, senior executives and individuals.
Our approach extends beyond traditional financial advice. Our team of experienced planners and consultants will help you to make life changing decisions, empowering you to take control of your financial future, both personally and in your business.
As we navigate life’s journey, retirement presents both a dream and a challenge. It’s the stage where we finally enjoy the fruits of our labour, a time for relaxation, exploration and personal growth. But the question that often looms is how can we ensure a steady income stream that keeps pace with our aspirations and maintains our lifestyle? Enter the world of annuities.
Annuities in recent years have often been overlooked in the retirement planning conversation. But current heightened interest rates have increased demand for annuities, offering unparalleled peace of mind, knowing that your basic needs will be covered, irrespective of how the financial markets perform.
Securing the best possible deal
Shopping around could boost your retirement income by as much as 20%. To put it in perspective, simply by exploring your options, you could increase your retirement earnings by nearly £6,000. Recent analysis reveals that a 66-year-old with a £100,000 pension pot can now purchase an annuity yielding an annual income of £7,000 – an increase of £174 compared to last year[1]
The analysis highlights a striking difference between the best and worst annuities available. For a 66-year-old with a £100,000 pension pot, rates can vary by up to 3.6% – equating to a potential annual income discrepancy of £254 or £5,945 over an average retirement period[2] .
Shopping around could boost your retirement income by as much as 20%.
Alternatively, an increasing annuity starts with a lower initial income, but your payments increase annually in line with inflation or a predetermined rate, such as 3% or 5%.
Your marital status is another significant factor in selecting an annuity. If you opt for a single-life annuity, it will only pay out during your lifetime. In contrast, a jointlife annuity provides a full payout to you during your life and, after your death, it typically pays 50% of that amount to your partner until their demise.
They offer a steady, guaranteed income throughout your retirement years or for a specific period. But given the irreversible nature of purchasing an annuity, it’s imperative to thoroughly explore your choices, select the most suitable type and secure the best possible deal.
Annuities provide a practical means of converting your accumulated pension savings into a lifelong source of income. Comparing rates across various providers is essential once you determine your required income level. This process, known as the ‘open market option’, allows you to bypass your provider’s offer and potentially secure a higher rate with another provider.
Securing the right annuity for your needs can seem daunting, given the variety of options available. This one-time, typically irreversible decision is vital, and understanding the different types of annuities can greatly facilitate the process.
When choosing an annuity, you can select a conventional level-income annuity, which ensures consistent payments throughout your life. Alternatively, an increasing annuity starts with a lower initial income, but your payments increase annually in line with inflation or a predetermined rate, such as 3% or 5%. It’s essential to carefully consider the options’ costs and benefits to make the most suitable choice.
Another option worth considering is a guaranteed income period. Under this plan, payments continue until the end of a chosen period (usually five or ten years), even if you pass away prematurely. In such a scenario, the income would be paid to your beneficiaries or estate, offering them financial security.
An enhanced annuity may be the right option for those with certain lifestyle conditions or medical history. Whether you smoke, are overweight, have type 2 diabetes, or have suffered from cancer, heart disease or other life-threatening conditions, you may be eligible for an enhanced annuity, which results in higher payouts.
The rates are increased to reflect the potential impact of these conditions on your lifespan. Even conditions like excess weight or high blood pressure could qualify you for an enhanced annuity.
Annuities provide a practical means of converting your accumulated pension savings into a lifelong source of income.
David
BrennanChief Investment Officer for
Arecent study has identified an alarming discrepancy in financial confidence between genders. It shows that women are 33% more likely to confess to a lack of understanding about their pension operations[1]
This gap in comprehension could be a potential reason why some women seem less inclined to engage with pivotal financial products that promise better future outcomes.
For instance, the study reports that women are 38% less likely to possess Stocks & Shares Individual
Savings Account (ISA) and 32% less likely to own a private pension.
For instance, the study reports that women are 38% less likely to possess Stocks & Shares Individual Savings Account (ISA) and 32% less likely to own a private pension.
This reluctance towards financial engagement, coupled with other factors such as the persistent gender pay gap, could leave young British women (aged 22 to 32) with a mere £12,873 per year by their retirement in the 2060s.
Almost a third more in their retirement funds
Contrastingly, young men are predicted to have almost a third more in their retirement funds, garnering an average annual income of £19,803. Current savings trends suggest that young women can expect an average of £644,701 in their workplace pension pot (equivalent to £195,636 adjusted for inflation)
when they reach State Pension age. This amount translates into an annual retirement income of approximately £42,421.
Although this might seem like a substantial income today, inflation adjustments predict that by the 2060s, this sum will shrink to a mere £12,873. Further contributing to the gender pensions gap is the significant gender pay gap. The research identified that by the age of 27, women earn £10,000 less than their male counterparts.
Compounding factors of the gender pension gap
This research doesn’t factor in other elements that could negatively impact women’s pension savings. These include lower representation in senior leadership roles, more frequent career breaks for childcare and a wider pension gap in reality. Current projections estimate that young women will have £300k less in their pension pots than their male peers by the time they hit State Pension age.
Current projections estimate that young women will have £300k less in their pension pots than their male peers by the time they hit State Pension age.
This staggering figure underlines the persistent gender pension gap. The report explains that the reasons behind this are manifold, including lower pay for women, fewer women in senior leadership positions and consequently smaller pensions. But the gender pension gap isn’t just about pay. Women are also more likely to work part-time or reduced hours, take career breaks for childcare, serve as unpaid carers or require medical leave, such as during the menopause.
The various responsibilities and challenges that women typically face can significantly hinder their ability to accumulate savings comparable to men. One of the key factors is the societal expectation for women to serve as primary caregivers. Whether it’s for children, the elderly or other family members, this role often necessitates taking time off from work or even quitting jobs, leading to gaps in their income and, consequently, their savings.
Furthermore, women are generally paid less than men, a stark reality reflected in the gender pay gap that persists globally. This income disparity means that women have fewer resources to allocate towards savings, putting them at a significant disadvantage.
In addition to these systemic obstacles, the research has highlighted another critical issue – women’s self-perception of their financial capacities. Some women tend to identify themselves as having lower confidence in savings and investments.
This can be attributed to various factors, but this lack of confidence can be a psychological barrier, preventing many women from actively participating in financial planning and decisionmaking, further widening the savings gap between men and women.
The various responsibilities and challenges that women typically face can significantly hinder their ability to accumulate savings comparable to men.
In the realm of financial wellbeing, an old adage rings particularly true: ‘Prevention is better than cure.’ An effective financial plan acts as your protective shield, specially designed to weather any economic storm that may come your way. It offers comfort and control, ensuring that you are steering the ship of your finances, not vice versa.
However, the key lies in establishing this plan early enough to counteract the short-term risks associated with market volatility. So, what constitutes a sound financial plan, and how can it help you navigate the unpredictable financial waters?
Risk management is a cornerstone of a sound financial plan
Market fluctuations are beyond our control and prediction. Therefore, understanding risk and its potential impact on our plans becomes crucial. But how does one translate this theoretical concept into practical application?
Financial planning dissects the complex notion of risk into three manageable components:
Risk appetite: Also known as ‘attitude to risk’, this term refers to the level of risk you are willing to accept as an investor. It’s an emotional response to risky situations, gauged through quantitative questions and qualitative discussions.
Capacity for loss: This is a numerical evaluation of your ability to withstand short-term investment losses while still achieving your long-term goals.
Investment time horizon: This aspect pertains to the duration you intend to remain invested before accessing your wealth.
The longer your time horizon, the better your capacity to endure short-term return volatility.
A comprehensive risk assessment at the beginning of your financial planning journey ensures that all components of your plan align with your risk profile. With a clear understanding of your risk tolerance, shortterm market volatility should not significantly derail your long-term strategy.
Tax allowance utilisation is a vital part of financial planning
Choosing the right mix of assets for your investments is just one piece of the equation. A good financial plan also capitalises on the various tax allowances available, commonly called ‘tax wrappers’. These include pensions including Self-Invested Personal Pensions (SIPPs), Individual Savings Accounts (ISAs), General Investment Accounts (GIAs) and Offshore Bonds.
Each of these accounts offers unique tax advantages and access constraints. For instance, pensions are long-term investments that can afford a riskier asset portfolio until you near retirement. ISAs can be used for both short-term and long-term savings, with the time horizon and purpose of saving dictating the appropriate risk profile. While General Investment Accounts come with limited tax allowances, they play a crucial role if you aim for your savings to outpace inflation.
Understanding riskadjusted outcomes
Your risk appetite and investment time horizon play pivotal roles. The key lies in aligning your financial strategy
with your unique circumstances. Maximising the long-term potential return for your comfort level of risk is crucial. We can ensure your investments align with your risk tolerance.
Cash flow modelling provides your future at a glance
Cash flow modelling might sound complex, but it’s a way to visualise your financial future. What are your dreams and aspirations? When do you want to achieve them? Whether it’s retirement, buying a second property, funding education, planning a wedding, or even a dream holiday, each goal carries a financial implication.
With cash flow modelling, you can explore various scenarios and determine how to reach your goals. What if you retire earlier? Or later? What if you transition to part-time work? What if you can’t work for an extended period?
Once you know what you’ll need and when, the next step is to figure out how to achieve it. Do you have current savings or investments? How are they structured?
Chris Lomas Sales Director of Radiant Financial Planning
How many workplace pensions have you been a part of? Do you have any personal pensions? Are they invested appropriately for your objectives, life stage and risk tolerance?
If something sounds too good to be true, it probably is
Investment scams are a rising concern, promising potential investors the allure of making a significant amount of money swiftly and effortlessly. These scams often involve minimal to no risk investments in various areas such as financial markets, property, cryptocurrencies, and precious metals and coins.
These schemes often masquerade as legitimate investments, with convincing websites, glowing testimonials and persuasive marketing material.
However, it’s crucial to remember that if something sounds too good to be true, it probably is.
One of the most notorious forms of investment fraud is the Ponzi Scheme. This method involves collecting money from new investors to pay off earlier ones. Eventually, the scheme crumbles when the debts exceed the incoming funds, leaving many investors penniless.
‘Proven’ investment strategies
Additionally, some scams start with offering complimentary investing seminars or training sessions. These free offerings usually serve as bait, leading to substantial charges for additional lessons or coaching that claim to enhance your chances of success.
The scammers may assert that their programme provides you with an easy-to-use system, complete with a team of experts who handle everything on your behalf. They may also give you the opportunity to learn about ‘proven’ investment strategies.
These schemes often masquerade as legitimate investments, with convincing websites, glowing testimonials and persuasive marketing material. However, it’s crucial to remember that if something sounds too good to be true, it probably is.
In today’s digital age, investment scams have evolved into intricate webs of deceit. Some are so convincingly crafted that even seasoned investors fall prey to them. Scammers employ various tactics, such as cloning legitimate firms’ websites or luring potential victims into unregulated investments, promising returns far superior to savings accounts.
The introduction of pension freedoms in April 2015 has made individuals aged 55 and over particularly susceptible to these
scams. These individuals can now access lump sum payments from their pension pots, making them attractive targets for scammers.
All investment scams share one common trait – they promise high returns with minimal risk. If an opportunity appears too good to be true, it likely is. Stay vigilant and be aware of the warning signs that may indicate a scam:
• Unsolicited contact via phone call, text, email or door-todoor visit.
• The firm refused to allow a callback.
• Pressure to make quick decisions.
• Only mobile numbers or PO box addresses are provided as contact details.
• Promises of high returns with low risk.
To avoid falling victim to a scam, adhere to the following precautions:
• Dismiss any unsolicited calls, emails, texts or visitors. Legitimate investment companies will not cold call you or contact you unexpectedly.
• Verify the legitimacy of a company by checking the FCA register or the FCA warning list.
• If considering an investment opportunity, seek professional financial advice from an FCAregulated firm.
• Always pay full attention to fraud warnings when making a payment: they are there for your safety.
Fraudsters are going to great lengths to market fake investment products, often impersonating known brands and appearing perfectly professional. With the prospect of high returns and financial protection, many people are losing most of their savings to this scam.
Robert Taylor Group Compliance Director
Health and fitness regimes have become more critical in our fast-paced, highstress world. They are not just about maintaining a desirable weight or achieving aesthetic goals but about fostering overall wellbeing, enhancing productivity, and improving quality of life.
Staying healthy and fit is a priority for many successful people. It boosts productivity and enhances mental clarity, resilience, and overall well-being. This article delves into the health and fitness routines of some of the world’s most successful individuals, offering insights into their diet plans, workout routines, and mindfulness practices.
Mark Zuckerberg: Consistent Exercise Routine
Meta and Facebook founder Mark Zuckerberg believes in the
power of consistency regarding exercise. He makes it a point to work out at least three times a week, often first thing in the morning, focusing on running and weight training to boost his energy levels for the day.
Tim Cook: Early Bird Workouts
Apple CEO Tim Cook is known for his early morning workouts. Waking up at 3:45 AM, Cook starts his day with a visit to the gym, believing that physical exercise aids in maintaining his demanding schedule and high-stress job.
Jeff Bezos: High-Intensity Workouts
Amazon founder Jeff Bezos opts for high-intensity workout sessions, focusing on strength training. He believes maintaining his physical health helps him make better decisions and improves his sleep quality.
Oprah Winfrey: Portion Control
Media mogul Oprah Winfrey follows a portion-controlled diet plan. She believes in eating everything she loves but in moderation. Her diet primarily consists of lean proteins, fruits, vegetables, and complex carbohydrates.
Elon Musk: Frequent Small Meals
Tesla and SpaceX CEO Elon Musk prefers having frequent small meals throughout the day. His diet includes a lot of vegetables and proteins to keep his energy levels up.
Arianna Huffington: Unplugging and Meditation
Arianna Huffington, co-founder of the Huffington Post, emphasises the importance of unplugging from digital devices and meditating. She believes regular meditation helps reduce stress, improve focus, and promote overall well-being.
Bill Gates: Quiet Reflection
Microsoft founder Bill Gates sets aside time for quiet reflection and reading. This practice allows him to think deeply, learn continuously, and maintain his mental health.
Apple CEO Tim Cook is known for his early morning workouts. Waking up at 3:45 AM, Cook starts his day with a visit to the gym
Incorporating regular exercise, a balanced diet, and mindfulness practices into your routine can significantly enhance your productivity, decisionmaking skills, and overall quality of life. By adopting a consistent fitness routine and a balanced diet, you invest in your health, paving the way for a healthier, happier, and more fulfilling life.
Unclaimed pensions thousands of pounds your
Navigating the world of pensions can be challenging, particularly when you’ve participated in various schemes or shifted jobs throughout your working life. Pension plans may close, merge or change names as time progresses, adding to the complexity. It might have been rebranded even if you recall your scheme’s original name.
In our varied careers, it’s common to accumulate multiple pensions from different jobs. It’s easy for some of these to slip through the cracks, especially when moving house and changing addresses. Ensuring you know all your pension schemes is essential to maximise your retirement benefits. Asserting your claim over your pension is crucial – the earlier you locate a misplaced one, the more beneficial it will be.
With £26 billion in lost pensions in 2022 worth an average of £9,500[1], it’s well worth seeing if some belong to you. If you suspect you have a lost pension, your first port of call should be your previous pension provider. The government’s Pension Tracing Service is available if their identity eludes you. This service provides current contact details for your pension scheme, helping you keep track of your retirement funds.
Reflect on every job you’ve held since leaving education. Each employment stint possibly came with a workplace pension. Look for old pension statements. These documents will provide valuable information about your past pension schemes.
Contacting your previous pension provider
Knowing your old pension provider simplifies the task. Contact them armed with as much information as possible to facilitate the reunion with your pension savings. Essential details include your plan number (if available), date of birth and National Insurance number.
The government’s free Pension Tracing Service can assist if you suspect a missing pension but lack any supporting information. Visit their gov.uk website or phone them at 0345 600 2537. If you remember your old employer’s name or the pension company, the service will provide up-to-date contact details.
It’s worth noting that the Pension Tracing Service provides only the pension administrator’s contact details. It won’t disclose whether you have a pension or its value. You will need to contact the pension administrator directly to confirm your pension status and worth.
Recognising potential pitfalls
Remember, possessing pension paperwork doesn’t necessarily equate to a pension entitlement. You may have received a refund of your contributions upon leaving an employer, or certain older workplace pensions require a minimum membership period before entitlement.
Scammers also look to exploit the subject of pension transfers with offers to access your pension early, which may be called ‘pension liberation’ or a ‘pension loan’, as the scammers often claim you can borrow money from your pension fund. If someone accepts the offer, their pension funds will typically be transferred into a scheme set up by the scam, often based abroad.
if
Tony Riley Regional Sales Manager
assets or cash without contributing to your estate’s overall
In the unfortunate event of one’s passing, there’s a possibility that HM Revenue & Customs (HMRC) may levy an Inheritance Tax (IHT) bill on the deceased’s estate. The estate’s total value determines the sum due after deducting any debts and applying all possible thresholds. Two thresholds that come into play are the nil rate band (NRB) and the residence nil rate band (RNRB).
The NRB currently stands at £325,000, while the RNRB is set at £175,000 in the tax year 2024/25. It should be noted that the RNRB is applicable only if the deceased’s home, or an amount equivalent to it if downsizing provisions apply, is left to a direct descendant. Any amount exceeding these thresholds is subject to the standard rate of 40% IHT. However, if at least 10%
of the estate is left to charity, this rate drops to 36%.
With IHT becoming an increasing worry for some people, the goal often becomes the efficient transfer of assets to the next generation, which may include gifting as a
strategy to minimise IHT. While you’re still alive in the UK, an annual ‘gift allowance’ of £3,000 is at your disposal. This is referred to as your ‘annual exemption’. Essentially, this allows you to distribute assets or cash up to the total value of £3,000 within a tax year without contributing to your estate’s overall value for IHT purposes.
Any portion of the annual exemption not utilised within the tax year can be extended into the following tax year. However, it’s important to note that it can only be used in the subsequent tax year and cannot be carried over further. Certain gifts do not count towards this annual exemption; therefore, no IHT is due on them. Gifts that exceed the £3,000 allowance within any tax year may be subject to IHT. But what else can you give that would be tax-free? Gifts valued at less than £250 are exempt from this rule. You can bestow as many gifts of up to £250 to as many individuals as you like. However, this doesn’t apply to anyone who has already received a gift that utilises your entire £3,000 annual exemption. None of these gifts will be subject to IHT.
Wedding gifts also have their own set of rules. If the gift is to be effective for IHT purposes, it must be given before the wedding, not after. Furthermore, the wedding must indeed take place. Here are the specifics: if the gift is given to a child and is worth £5,000 or less; given to a grandchild or great-grandchild and is worth £2,500 or less; or given to another relative or friend and is worth £1,000 or less.
Gifts intended to assist with the living costs of an ex-spouse, an elderly dependent or a child under 18 or in full-time education might also be exempt from IHT.
Additionally, if your income is sufficient to maintain your usual standard of living, you can make gifts from your surplus income. This could include regularly contributing to your child’s savings account or covering a life insurance premium for your spouse or registered civil partner.
When gifts exceeding the annual allowances are made outright to an individual or an Absolute/Bare Trust, these are termed ‘Potentially Exempt Transfers’ or PETs. Often, PETs are made to assist a child in buying a property. To ensure that the gift is not included in your estate for IHT purposes, you must survive for seven years after making the gift. If the PET exceeds the NRB (£325,000), there’s a gradual tapering on the excess in the event of the gift failing; the longer you survive post-gifting, the greater the tapering.
If you settle money into a discretionary trust, such gifts are known as ‘Chargeable Lifetime Transfers’ or CLTs. Grandparents who want to pass money down to their grandchildren commonly make these, particularly when their children already possess a large estate.
Determining the order in which gifts are liable for IHT
Complications may arise if an individual has made both PETs and CLTs before their passing. This is due to the fact that the order of these gifts can result in a calculation of 14 years’ worth of gifts when determining the IHT position. Additionally, their order is crucial when determining which gifts are liable for IHT. According to HMRC rules, gifts are assessed starting from the oldest and progressing towards the date of death. Furthermore, any CLTs made within seven years preceding any ‘failed PETs’ must also be considered.
Navigating the planning and timing landscape of IHT
Planning and timing are key when navigating the complex landscape of IHT. If a person makes a PET but unfortunately passes away within six years and 11 months, the PET is considered unsuccessful. From this ‘failed PET’ date, HMRC will look back an additional seven years and incorporate any CLTs into their
Gifts that exceed the £3,000 allowance within any tax year may be subject to IHT. But what else can you give that would be tax-free?
calculations. Therefore, if you’re considering transferring money into a trust or gifting it outright, it’s highly recommended you discuss this with us first.
It’s also important to meticulously keep track of any gifts you’ve made. This record will prove invaluable to the executors of your estate should you pass away. It’s worth noting that gifts made from regular income, where expenditure is categorised as normal expenditure, are not classified as gifts by HMRC.
You’ve made some gifts and hope to survive for seven years. While this is an option, you can also insure against the IHT payable on your estate should you pass away within seven years of making your gift, and the liability for the tax would then fall on the recipient of the gift. This can be achieved by taking out a ‘gift inter vivos’ insurance policy or a ‘whole of life’ policy.
With a ‘gift inter vivos’ insurance policy, this life insurance can cover the IHT due on a gift if the donor passes away within seven years, with the sum assured gradually decreasing in line with the tapering of IHT due on the gift. Consideration should also be given to the overall value of your estate. While a ‘gift inter vivos’ plan may cover the IHT due on a gift over seven years, simple life assurance cover should also be considered as a further IHT mitigation strategy.
To cover the potential IHT that your estate may be liable
for upon your death, you could secure a ‘whole of life’ policy’ that provides lifelong coverage. Whichever option is chosen, it’s recommended that these policies are written in an appropriate trust, ensuring that any benefits paid out if you pass away and a claim is made on the policy are not included in the value of your estate for IHT purposes.
The areas of gifting, protection and trust in financial planning are intricate and multifaceted. They involve understanding numerous elements such as tax implications, legal regulations and individual family dynamics. Given the complexity of these areas, it’s critical to obtain professional advice to help you navigate the intricacies of these financial planning areas, ensuring that your decisions align with your overall financial goals and family needs. Doing so will allow you to develop the most effective strategy tailored specifically for you and your family.
David BrennanChief Investment Officer for Radiant Financial Planning and Senior Financial Planner
Protecting you and your family’s financial future
Securing your family’s financial future is a multifaceted responsibility beyond merely accumulating savings and making long-term investments. It encompasses the creation of a comprehensive plan that ensures the wellbeing of your loved ones, even in the face of unexpected adversities.
A recent report has revealed that a significant number of UK residents are ill-prepared to meet their monthly expenditure if they were to become incapacitated due to illness or disability[1] . An alarming lack of financial safety provisions exists for circumstances such as sickness, accidents or deteriorating health conditions. The study reveals that eight out of ten homeowners servicing a monthly mortgage do not have income protection insurance.
Furthermore, two-thirds lack cover against critical illnesses, thereby jeopardising their financial stability if a long-term illness prevents them from working. Although the statistics for those who have secured their family homes in case of premature death are somewhat reassuring –with 63% having life cover – it is still concerning that many do not have a policy that would replace their income in case of incapacity due to illness or disability.
Although the statistics for those who have secured their family homes in case of premature death are somewhat reassuring –with 63% having life cover – it is still concerning that many do not have a policy that would replace their income in case of incapacity due to illness or disability.
Statistically, men are approximately six times more likely, and women 12 times more likely, to be unable to work due to illness than they are to die prematurely[2]. This fact underscores the vital importance of income protection insurance. Such a policy provides the comforting assurance of a replacement income through
monthly payouts to cover bills and other lifestyle essentials. But, not only homeowners with financial obligations need to maintain a roof over their heads.
Tenants, too, must meet their rent payments and can be equally vulnerable without proper insurance cover. Yet, the figures here paint an even more disturbing picture. Less than onethird (29%) of renters have life cover, and a mere 6% have income protection.
Often, the decision to apply for a protection product is spurred by a significant life event like marriage or buying a house. However, as soaring property prices push home purchases later into life, and more individuals opt to cohabit rather than wed[3], discussions about income protection insurance are being overlooked or postponed.
Given the number of people in the UK already finding it hard to make ends meet, the prospect of a family member losing their income during a cost of living crisis is daunting. The desire to safeguard oneself and one’s family financially against tough times is instinctive, but many families leave themselves financially vulnerable. Raising awareness about the benefits of insurance and its potential to bolster people’s financial resilience is crucial.
While it’s heartening that many homeowners have life insurance, statistically, it’s far more likely that someone will need time off work due to illness or injury during their working life than they are to die prematurely. People must realise the importance of having cover beyond just life insurance.
Although lenders no longer require life insurance for a mortgage, buying a home remains a significant trigger for purchasing protection insurance. It’s a straightforward way to ensure the family home is secured if the primary income earner dies, but we must consider risks beyond just premature death.
As the cost of living continues, families across the UK are becoming increasingly vigilant about their expenses. The need to safeguard their monthly bills is more pressing than ever. Many individuals’ greatest sense of security comes from having their income and expenses covered. This comfort often outweighs the reassurance provided by life or mortgage cover. Some people require their entire mortgage amount to be insured, while others want to ensure their monthly rent and essential bills are taken care of.
Critical illness and income protection have become invaluable in an era where many employers fall short of providing adequate sick pay for extended periods of absence from work. These forms of insurance give individuals and families the peace of mind that they can meet their financial obligations even when health issues arise.
Seeking professional financial advice can help individuals tailor their insurance coverage to meet their unique needs. This approach allows families to establish protection that delivers reassurance and safeguards against many potential life events.
secure, regardless of what life throws at you. From everyday bills to essential living costs, comprehensive protection can make a significant difference during ill health or injury.
Knowing that your bills can still be paid, even in the face of serious illness or injury, provides an immeasurable sense of relief. It’s not just about the financial aspect; it’s the peace of mind of knowing you’re protected during challenging times. This peace of mind can significantly aid stress management and recovery.
As household priorities shift over the years, reviewing protection policies to see if they can better support any life events or job changes is essential. Any changes to work, family planning or relationship status could mean that an existing income protection plan may no longer be fit for purpose.
Many people would not think of this despite being at risk of losing their home if they experienced a financial shock.
Protection insurance isn’t just about covering your mortgage. It’s about ensuring that your lifestyle and financial commitments are Source data: [1] Royal London/Cicero/amo to undertake a nationally representative survey of 3,000
Tony Riley Regional Sales Managerin the UK. Fieldwork was conducted in September 2023. [2] Pacific Life Re, June 2021, based on 30-year-old non-smokers with the retirement
of 65. [3] ONS data reveals that ‘the opposite-sex cohabiting couple’ was the fastest-growing family type over the last ten years.
This article does not constitute tax or legal advice and should not be relied upon as such.
In the ever-evolving landscape of retirement planning, a significant shift is on the horizon that could potentially impact when you can access your pension funds. The normal minimum pension age (NMPA), or the age at which you can start withdrawing from your pension savings, is currently set at 55.
There are a few exceptions to this rule – for instance, in cases of ill health or if you have a lower protected pension age. However, this standard generally applies across the board.
From the 6 April 2028, the NMPA will rise to 57. Depending on your birth date, this shift could affect you in various ways. If your birthday falls after the 5 April 1973, it’s advisable to reassess any pre-existing plans to see whether this change could impact them.
For instance, you might need to factor in an additional couple of years of saving, which could alter the retirement income available to you when the time comes. On the other hand, if you hadn’t planned on touching your pension savings until you turned 57, there’s no need for any immediate action.
Regularly review your retirement plans
Although the change is still four years away, regularly reviewing your retirement plans is a
beneficial habit to cultivate. This is especially true as you approach the age at which you wish to start withdrawing your pension savings.
Born between 6 April 1971 and 6 April 1973?
If your birthday falls between these dates, you have two choices. Think carefully about which option best aligns with your circumstances. Access your pension savings before the window closes
If you’d prefer not to wait until 57 to start withdrawing your pension savings, you’ll need to begin accessing your funds after you turn 55 but before 6 April 2028. Accessing your pension savings doesn’t necessarily mean withdrawing large or regular amounts. You have the freedom to determine the withdrawal size that suits your needs. However, seeking professional financial advice is crucial if you choose to access your savings during this window.
Also, remember that leaving your pension savings invested for longer could allow them to grow. Furthermore, for most people, withdrawing taxable money from your plan could reduce the amount you can contribute to your plan. This is known as the ‘money purchase annual allowance’.
Wait until you turn 57
Alternatively, you can choose
to wait. If you weren’t planning on accessing your pension savings before age 57, there’s no need for action. You can access your pension savings from age 57 onwards at a time that suits you. Just remember, if you don’t withdraw anything before 6 April 2028, you’ll lose the opportunity to access your pension before age 57.
Born on or before 6 April 1971?
If you were born on or before 6 April 1971, rest easy. The upcoming change won’t affect you or your retirement plans, as you’ll already be 57 by the time it takes effect.
Reviewing your retirement date is crucial if you’re on your journey towards retirement but haven’t reached the finish line yet. Surprisingly, your plan might still indicate your 55th birthday as the day of retirement, even if current regulations prevent you from accessing your funds at that age. This discrepancy could affect your financial plans, making examining and adjusting your retirement date critical.
It’s worth noting that your retirement date isn’t rigid. You’re free to alter it whenever you feel the need. However, the date you select can significantly impact your pension plan and, subsequently, your financial stability during retirement.
If your retirement date is pegged at your 55th birthday, and you don’t plan to access your funds until you’re 65, there’s a clear misalignment between your investment strategy and your actual retirement plans. This discrepancy could affect your pension savings’ value when it’s time for withdrawal.
A mismatch between your retirement date and actual retirement plans can lead to unplanned financial outcomes. For instance, if your investments shift towards lower-risk areas prematurely due to an inaccurately set retirement date, you may miss out on potential growth in your pension pot’s value. Conversely, if your retirement date is later than when you plan to retire, your investments may remain in highrisk areas for too long, exposing your savings to unnecessary market volatility.
Adrian Tomaino Regional Sales Manager
How
Gaining a clearer understanding of how the new pension tax framework will work
The United Kingdom has made a significant policy change for the 2024/25 tax year that will profoundly impact pension savers. Following last year’s Autumn Statement, the government announced its decision to abolish the Lifetime Allowance (LTA) for pensions, which took effect on 6 April 2024.
The policy change has been delivered in two stages
The LTA is the total amount of money you can build up in your pension pot throughout your life without incurring an extra tax charge. For the 2023/24 tax year, the LTA was set at £1,073,1002. This policy change has been delivered in two stages.
The first stage involved removing the LTA tax charge, and the second stage involved completely abolishing the LTA itself. With the abolition of the LTA, new allowances have taken its place from 6 April 2024.
These are the Lump Sum Allowance (LSA) and the Lump Sum and Death Benefit Allowance (LSDBA). The LSA limits the tax-free lump sum that can be taken at retirement, while the LSDBA limits the tax-free lump sum that can be paid on death. Each allowance will apply to each person independently and not per scheme.
Designed to control the tax-free cash given to an individual
The LSA, a fixed cumulative
limit of £268,275, equivalent to 25% of the previous LTA, is designed to control the tax-free cash given to an individual. This allowance is applicable to Pension Commencement Lump Sums (PCLS) and the tax-free portion of Uncrystallised Funds Pension Lump Sums (UFPLS). In the past, this tax-free cash was evaluated against the LTA.
An initial plan was to include tax-free segments of trivial commutation, winding-up, and small lump sums within this allowance. However, this idea has been withdrawn due to apprehensions about administrative complications. Despite this, individuals must retain some part of their lump sum allowance to facilitate the payment of trivial and winding-up lump sums.
The LSDBA is set at a fixed cumulative limit of £1,073,100, mirroring the previous LTA. This allowance applies to the tax-free elements of lump sums that can be disbursed during an individual’s lifetime or upon death. The allowance encompasses PCLS, taxfree portions of UFPLS, as well as tax-free parts of serious ill-health lump sums and death benefits.
Specific to lump sums and do not apply to pensions
It’s crucial to remember that these newly introduced allowances are specific to lump sums and do not apply to pensions. This marks a notable
shift from the former LTA approach, where both crystallised pensions and lump sums were scrutinised. The introduction of “relevant benefit crystallisation events” signifies instances when lump sums tested against these allowances are disbursed. Importantly, there will be no evaluations based on age.
Individuals with valid LTA protection and/or lump sum protections for both allowances will maintain their rights to the higher protected amounts. Eligible individuals will have until April 5, 2025, to apply for Fixed Protection 2016 and Individual Protection 2016.
When they are taken, the benefits are tested against the LSA and LSDBA. Any benefits exceeding these allowances will not be taxfree. Instead, they will be subject to tax at the individual’s marginal Income Tax rate.
Removing the LTA and its associated tax charge is a significant shift in the UK’s pension landscape. It means that savers will not have to worry about exceeding their total pension savings limit. However, introducing the LSA and LSDBA introduces new considerations for pension savers. Benefits must be carefully managed to avoid exceeding these new allowances and incurring a tax charge.
If no benefit crystallisation events (BCEs) occurred between
6 April 2006 and 6 April 2024, the individual’s LSA and LSDBA will be the standard LSA and LSDBA. The overseas transfer allowance applies to pension savers who move their pension overseas. If the allowance is exceeded, an overseas transfer charge will apply.
The abolition of the LTA represents a significant change in the UK’s pension landscape. While it removes a key constraint for pension savers, introducing new allowances adds complexity.
Pension savers must stay informed about these changes and consider how they might impact their retirement planning.
Chris Lomas Sales Director of Radiant Financial Planning
Capital Gains Tax (CGT) is a tax levied on the profit earned from selling or disposing of certain assets. This includes but is not limited to, land and property—such as second homes and investment properties—as well as art, antiques, and shares (those held outside of an Individual Savings Account or ISA).
The tax is calculated based on the difference between an item’s purchase price and its selling price, accounting for any allowable expenses that can reduce the tax owed. As of 6 April 2024, CGT’s Annual Exemption Allowance (AEA) has been reduced to £3,000, marking the threshold before CGT is payable on capital gains.
For higher and additional rate income taxpayers, CGT rates stand at 20% for most assets, while basic rate taxpayers are subject to a 10% rate. Notably, this year’s Spring Budget introduced a significant change for residential property gains, with the higher CGT rate being reduced from 28% to 24% for disposals made on or after 6 April 2024. This adjustment comes at a time when asset prices and inflation are on the rise, posing potential challenges for individuals holding investments or assets outside of tax-advantaged accounts.
Several strategies can be employed to minimise liability when navigating the landscape of CGT. One approach involves the strategic disposal of assets to utilise each year’s allowance effectively. Delaying sales to optimise the use of allowances can also be beneficial, though this carries the risk of less favourable
terms or a less advantageous tax environment in the future.
Additionally, the disposal of assets that are experiencing losses may offset taxable capital gains, offering another avenue for reducing CGT liability.
Married couples and registered civil partners can utilise two sets of CGT exemptions. By transferring assets to a spouse prior to sale—a process known as ‘interspousal transfer’—couples can potentially reduce their CGT liability or even qualify for a lower tax rate. This strategy highlights the importance of maximising Individual Savings Account (ISA) allowances, where gains and income are shielded from tax.
Despite the focus on ISAs and pensions for their tax-efficient benefits, individuals with assets in taxable environments should consider utilising their annual CGT allowances. Doing so can help mitigate the accumulation of future CGT liabilities, often referred to as ‘pregnant gains’.
With the changes introduced in the 2024/25 tax year, an estimated additional 260,000 individuals and trusts may find themselves liable for CGT, underscoring the need for careful planning and consideration of available tax strategies.
Private Residence Relief (PRR) on main homes remains unaffected by these changes, as do ISAs, which offer a valuable shield against capital gains and income tax. As investors navigate the evolving tax landscape, understanding and applying these principles can play a crucial role in managing financial assets effectively.
Capital Gains Tax (CGT) is a tax levied on the profit earned from selling or disposing of certain assets.
Chris Lomas Sales Director of Radiant Financial Planning
Significant life changes, such as getting married, having a baby and buying a property, are key times to consider protecting your family’s future. Life insurance assures that your loved ones won’t face financial stress in your absence and this peace of mind is not confined to those earning an income.
Even if you’re not currently working, for instance, if you’ve taken a career break to raise children, your demise could impose unexpected costs such as childcare on the surviving partner. A life insurance payout could alleviate these expenses.
Easing the strain during an emotionally challenging time
The government does provide some benefits like Bereavement Support when a family member passes away. However, these benefits typically fall short of covering living costs. Moreover, even if you have a Will to financially support your family posthumously, the estate
distribution process can be time-consuming. A life insurance payout can cover interim expenses or contribute towards funeral costs, easing the strain during an emotionally challenging time.
There are scenarios where life insurance may not be necessary. For instance, if you’re single with no financial dependents or your partner earns enough to support your family without your income. However, remember that a life insurance payout could still be beneficial by allowing your partner to take time off work to grieve. Additionally, you can purchase life insurance more cheaply the younger you are and while you are in good health.
There are scenarios where life insurance may not be necessary. For instance, if you’re single with no financial dependents or your partner earns enough to support your family without your income.
Types available and how they align with your circumstances
Choosing the right life insurance policy necessitates understanding the types available and how they align with your circumstances. Often paired with a mortgage, term life insurance is a popular choice. It provides coverage for a specific term and only pays out if you die within the agreed period. There’s no lump sum or refund if you outlive the term.
On the other hand, whole life insurance covers you for your entire life, provided you keep up with the monthly premiums. The guarantee of a payout makes these premiums higher. Life insurance typically only pays out in the event of death, but some policies offer a terminal benefit, paying out early if you’re diagnosed with a terminal illness. Some insurers also provide integrated critical illness cover for slightly higher premiums.
Scrutinise your contract terms carefully to understand what is and isn’t covered
It’s important to note that most life insurance policies exclude certain causes of death, such as those resulting from drug or alcohol abuse. If you’ve been diagnosed with a severe illness, a basic life insurance policy may also exclude causes of death related to this illness. Therefore, we can advise and help you scrutinise your contract terms carefully to understand what is and isn’t covered.
Ian Fleming Financial Planner
Life insurance assures that your loved ones won’t face financial stress in your absence and this peace of mind is not confined to those earning an income.
Financial planning can have immense value for you and your family. Our planners at Radiant craft a personalised financial roadmap to realise your life aspirations. We tailor our advice to suit individual needs and goals.
But for many people, starting the financial planning journey is daunting – it is something that they have never done, and they don’t know where to start.
As a client, you will no doubt understand the value of advice to you, the peace of mind that it creates, the advantage of the depth of knowledge of a financial planner that you trust to access tax benefits and enable financial security that a well-designed financial plan provides.
This is why we encourage our clients to refer us to their family and friends, introducing their trusted adviser to help these key people in their lives to benefit from the advantages a great
financial plan provides. It works particularly well in family groups where plans can be properly interconnected to protect and enhance the family’s wealth (our article on pages 18 and 19 provides on example of how this works).
And by helping family members or friends, you can help your wider community too!
For every introduction that results in a new client relationship with Radiant, we commit to donate £30 to the Trussell Trust, who support a nationwide network of food banks providing emergency food and support to people facing hardship.
• Scan the QR code below and fill in the form. Please introduce as many people as you wish - we would be delighted to help.
• £30 will be donated to the Trussell Trust for every referred individual or company that becomes an active client of Radiant Financial Planning.
The Trussell Trust are an antipoverty charity and community of food banks providing practical support to people who can’t afford the essentials, and campaigning for a future where none of us need to use emergency food to get by.
For more information about the Trussell Trust please visit www.trusselltrust.org.
Age is an issue of mind over matter. If you don’t mind, it doesn’t matter.
As the population in the UK continues to age, there will be an increasing demand for mortgages for the over-50s. People are continuing to work for longer in order to reach their desired retirement lifestyle but also in response to changes in wealth, State Pension provision and to reflect the fact that we are living longer as a society.
This creates a much more challenging hurdle for people to overcome in order to fully retire. Gone are the days of ‘carriageclock retirement’.The demand for mortgages for the over-50s is due to a number of factors, including the ageing population and the increasing cost of living crisis.
Increasingly, many people in this age group are looking to remortgage in order to release equity from their property, which they can use to help fund their retirement. Others are looking to switch to a more affordable mortgage deal in order to reduce their monthly outgoings.
But whatever the reason, it is clear that there is a growing demand for mortgages suitable for people aged 50 and over. In some instances it may not be possible to obtain a mortgage at any age, because some lenders often impose upper age limits on each mortgage. It’s not unusual to see an upper age limit for new mortgages of 65 to 70, or age limits for repaying a mortgage that range between 70 and 85. Good credit score
This means if you’re 50 and planning to retire at 60, you may find it difficult to obtain a mortgage. And if you do secure a
mortgage, you may have to repay it before your 70th birthday. This means a term of 20 years instead of the normal 25. A shorter term means more expensive monthly repayments, at a time when your income may fall as you enter retirement.
To improve your chances of finding a mortgage, you’ll need to have a good credit score. Lenders will be looking at your credit history to determine whether or not you’re a good candidate for a mortgage. If you have any negative marks on your credit report, you may want to work on repairing your credit before applying for a mortgage.
You’ll also need to have a steady income and enough savings for a deposit. Lenders will want to see that you’re able to make your monthly mortgage payments on time and that you have enough money saved up for a deposit.
It’s important to shop around and compare mortgage rates from different lenders. We can help you to find the right deal on your mortgage by shopping around and comparing rates that are appropriate for your situation.
If your mortgage application gets refused, don’t think that’s it. One option is to consider a lifetime mortgage. A lifetime mortgage is a type of mortgage specifically designed for people over the age of 55. With a lifetime mortgage, you can borrow a lump sum of money against the value of your home. The loan is repaid when you die or move into longterm care.
It’s not unusual to see an upper age limit for new mortgages of 65 to 70, or age limits for repaying a mortgage that range between 70 and 85.
A lifetime mortgage can help you release equity from your home without having to sell it. This can be beneficial if you need money for home improvements, medical expenses or other purposes, and can give you peace of mind by allowing you to stay in your home for as long as you like. You don’t have to worry about making monthly mortgage payments, and you don’t have to worry about being evicted if you can’t make them.
A lifetime mortgage can also be an effective way to pass on your home to your heirs. If you have significant equity in your home, taking out a lifetime mortgage can help reduce the amount of Inheritance Tax that your heirs will owe.
You can use it for most purposes (including paying off an existing mortgage). What’s more, you don’t have to repay the loan until you, or the last remaining borrower, die or move permanently into long-term care.
Alternatively, if you want to stay in your home, an interestonly mortgage may be another
option to consider because it can help reduce your monthly payments. Additionally, an interest-only mortgage can give you more flexibility to afford other expenses, such as healthcare or retirement savings. When applying for a retirement interest-only mortgage you won’t be subject to the same affordability tests. It is a loan secured against your home. You pay the interest each month, which means the amount you owe doesn’t increase over time.
Alan Holmes Head of Mortgages
Navigating through many mortgage deals and sorting out the heaps of paperwork can be daunting and labourintensive. However, we’re on hand to assist you and simplify this journey.
From understanding the different types of mortgages to tips on streamlining the application process, we’re here to help you every step of the way.
Here are steps you’ll need to consider to ensure you are mortgage-ready:
• Gather your financial paperwork: This includes proof of income, assets, debts and credit history. Lenders will need this information to assess your financial stability and determine the risk of lending to you.
• Strengthen your credit: A strong credit score can increase your chances of getting approved for a mortgage and help you secure a lower interest rate.
• Know what you can afford: Determine your budget before applying for a mortgage. Consider not only the mortgage payments but also other costs associated with homeownership, such as Stamp Duty, insurance and maintenance.
• Build your savings: A substantial amount saved can increase your chances of mortgage approval. It can also help cover the deposit, fees, moving and unexpected expenses.
• Understand mortgage loan requirements: Every mortgage type has its unique requirements. Understanding these requirements will help you choose a mortgage that best suits your needs.
• Choose the right mortgage type: There are different types of mortgages available, such as fixed rate, variable rate and government-insured mortgages. Each type has advantages and disadvantages, so consider your long-term plans and financial situation before deciding.
• Compare mortgage rates and loan types: Different lenders offer different mortgage rates and loan types. Comparing these can help you find the most affordable and suitable mortgage for your needs.
Alan Holmes Head of Mortgages
From understanding the different types of mortgages to tips on streamlining the application process, we’re here to help you every step of the way
If you are planning to sell your home during this cost of living crisis, it is essential to obtain professional advice and do your research. Knowing the current market trends will help you to accurately price your property and make sure you achieve the best possible outcome.
Be objective when looking at what else is on the market, what else a potential buyer could buy, and focus on all the reasons why someone would choose your house. Consider what works for tomorrow’s buyer. You may also need to be prepared to negotiate on price and have realistic expectations when it comes to offers.
You should keep up with routine maintenance while putting your home on the market. A wellpresented home will make all the difference in attracting potential buyers and securing a sale at a good price. It may be more difficult to try and sell a property with an abundance of repair and decoration needs, particularly during the winter and especially during such an unpredictable time economically.
A project house is obviously different, but if you think your property would benefit from a few low-maintenance updates, it may well increase interest. Also consider investing in professional cleaning services or carrying out small renovations such as repainting or replacing carpets if necessary.
In addition, staging your home properly is an effective way to showcase its advantages. Your estate agent can provide advice on how best to prepare your property for the market, including what furniture and decoration would be most appealing to potential buyers. It is really difficult, but try to remove the clutter, family photos and all the things that
make it your home rather than someone else’s. The aim is to make it fairly neutral in appearance so whoever is coming to see the property can imagine themselves in it. A relatively blank canvas is ideal so try to cut the emotional ties, which will also make moving easier.
Your estate agent should also work with you to put together a comprehensive marketing package that is sure to reach the right people. But you may need to be agile and flexible, which could mean compromising or working with the buyer’s needs and requirements when selling in this current climate, such as negotiating a different completion date that works with their situation.
Don’t get discouraged if there are no offers right away
The property market has and always will continue to fluctuate. As such, it is essential to remain in touch with its movements and adapt as the climate shifts, and it’s equally important that you remain confident in your property and all it could offer someone.
By following these tips, you will increase your chances of selling your home quickly and efficiently during this cost of living crisis. Professional services, competitive pricing and effective negotiation are essential for a successful sale. It also pays to have patience. Don’t get discouraged if there are no offers right away – keep marketing your home and remain open-minded when it comes to potential buyers. With some dedication and professional help, you can successfully sell your home during this difficult time.
1. Price your home competitively – When selling your home during this cost of living crisis, it is essential to price your property competitively. Use professional appraisal services and market research to determine an accurate valuation for your home. Consider local competition, recent sales data and other factors that influence property prices in your area.
2. Prepare the property for sale – Investing in professional cleaning, repairs and renovations can help make your home more attractive to potential buyers. Ensure that all rooms are tidy, organised and clutter-free so that buyers can easily visualise themselves living there. Also consider staging techniques, such as adding furniture or décor items to give each room a sense of character and style
3. Utilise professional resources – Utilising professional services such as a professional mortgage adviser, solicitor, estate agents and surveyor will help ensure that the selling process runs smoothly. This means you’ll receive advice on legal documents, marketing campaigns and other important procedures to maximise your chances of success.
4. Leverage online resources – Make the most of technology by using online listings and social media platforms to advertise your home. Professional photos, descriptive copy and detailed information about your property will make it stand out from the crowd. Consider utilising virtual viewings or video tours for potential buyers who cannot come in person to view the property.
5. Negotiate effectively – Be sure to consider all offers carefully before making a decision. If you are not happy with an initial offer, be professional and courteous when negotiating a better deal. Consider all factors such as the buyer’s financial situation, their timeframe and other requirements to reach an agreement that works for both parties.
The property market has and always will continue to fluctuate.
With so much to think about when moving home, we’ll help you find a mortgage that’s right for you, so you’ll have one less thing to think about.
In the dynamic rhythm of modern life, maintaining an optimal state of health, wellbeing, and mindfulness often seems like an uphill battle. However, it doesn’t have to be this way. With an array of proven techniques at our disposal, we can harness the power of holistic living to create a healthy balance in our lives.
This article delves into various effective methods designed to improve physical health, increase mental resilience, and cultivate a deeper sense of mindfulness. From simple breathing exercises to transformative mindfulness practices, these strategies aim to provide a comprehensive guide for those seeking to enhance their overall quality of life.
Whether you’re a seasoned wellness enthusiast or just embarking on your health journey, this exploration of health, wellbeing, and mindfulness promises insightful revelations and practical advice to help you thrive in today’s fast-paced world.
Embrace mindfulness
Mindfulness is a powerful tool that can help improve your wellbeing. It involves paying close attention to the present moment, including your thoughts, emotions, and surroundings. This practice not only helps reduce stress but also improves focus.
According to Mayo Clinic, simple activities such as listening closely to a person’s words or observing your surroundings can help you practice mindfulness.
Incorporating breathing methods and guided imagery
Breathing methods and guided imagery are essential components of mindfulness exercises. These practices aim to relax the body and mind, consequently reducing stress.
By taking deep, controlled breaths and visualising calming images, you can achieve a state of relaxation and tranquillity.
Regular exercise is a fundamental aspect of maintaining physical health and mental well-being. It offers a wealth of benefits that extend well beyond physical health. It is a powerful tool for maintaining a healthy weight and reducing the risk of chronic diseases such as heart disease and diabetes. But the advantages don’t stop there.
Regular physical activity can also boost mental health by alleviating symptoms of depression and anxiety.
Regular physical activity can also boost mental health
by alleviating symptoms of depression and anxiety. It triggers the release of endorphins, our body’s natural mood lifters, promoting feelings of happiness and relaxation.
Improving memory and attentiveness
Exercise enhances cognitive function, too, improving memory and attentiveness. Furthermore, it improves sleep quality by helping regulate our internal body clock, known as the circadian rhythm.
Regular exercise is a key ingredient in the recipe for a healthier, happier life. Even a 10-minute brisk walk can significantly improve a person’s mental health.
Mindfulness-based treatments have emerged as a compelling approach to enhance overall well-being and tackle various mental health conditions. These treatments, which often incorporate meditation, deepbreathing exercises, and mindbody practices, have been shown to reduce symptoms of anxiety and depression effectively. They help individuals focus on the present moment, promoting a sense of peace and calmness that can mitigate stress. Furthermore, mindfulness-based treatments can
improve physical health. Research has indicated potential benefits such as lowering blood pressure and enhancing sleep quality.
By fostering a greater understanding and acceptance of one’s emotions and thoughts, these treatments contribute to improved emotional regulation and selfawareness, reinforcing resilience in the face of life’s challenges.
Paying attention to your thoughts
Paying more attention to your thoughts is another effective technique for improving mental well-being.
Paying more attention to your thoughts is another effective technique for improving mental well-being.
You can better understand your emotions and reactions by acknowledging and accepting your thoughts.
Incorporating these techniques into everyday life can significantly improve your health, well-being, and mindfulness. Remember, the journey to improved well-being is not a race but a continuous process. Start small, be consistent, and gradually incorporate these practices into your routine for a healthier, happier you.
Tell our readers about the inception of Radiant Asset Management (RAM) and your journey.
RAM was established in 2021 when I joined as MD and CIO. I came to Radiant Group with over two decades of experience working in wealth management, with a desire to change the way Investment Managers are perceived and how we engage with our clients.
“an asset management business designed by planners, for their clients
I worked closely with our CEO, Simon Cogman-Hellier, in building the blueprint for what the business should stand for and prioritising our focus on building an asset management business designed by planners, for their clients.
Most Investment Managers work in a silo, too far away from the end client to fully understand the impact their decisions have on a client’s financial goals.
After achieving regulatory permissions with the FCA in early 2022, we subsequently launched our investment models almost exactly 2 years ago, hence we are celebrating our 2-year anniversary for our MPS solutions this month!
Congratulations on reaching that milestone! Please share with us other milestones RAM have reached.
With the support of the excellent financial planners within Radiant Financial Planning, we are quickly approaching a quarter of a billion pounds in assets under management (£227m as of 8th April 2024). Our models are available on 8 of some of the largest investment platforms in the industry, including Nucleus, offering choice to our planners and their clients.
What differentiates RAM’s MPS from its peers?
We stand shoulder to shoulder with some of the largest Discretionary Fund Managers in the industry, but we also seek to be different through not only our investment implementation, but also in our engagement with our audience.
Jul 2021
RAM is incorporated
“All-Weather Diversification”
Firstly, our investment models are built without reference to what others in our industry are doing. What this means is that we are not bound by legacy positions, or biases, in our investment approach. We have built our solutions for the future changing economic environment and have diversified our solutions to ensure a smoother outcome for clients. To deliver this, we utilise an enhanced diversification approach, which ensures not all eggs are in one basket and risk is spread accordingly. We call this “All-Weather Diversification”. Furthermore, we adopt a Goals-Based Investing (GBI) approach, which seeks to align the outcomes from our models with the financial goals and objectives of our clients, be that protection of wealth or growth of capital. These are some key differentials from our peers.
“…good communication is the bridge between confusion and clarity.”
In addition to this, we are focused on delivering an enhanced communication and engagement experience for our planners and their clients. This is supported by our partnership with SEI, a global leader within asset management, where we have full access to their vast resources. This allows me to free up my team’s time to work closely with planners and their clients. After all, good communication is the bridge between confusion and clarity.
Feb 2022
FCA authorisation achieved
How does this approach to enhanced diversification and Goals-Based Investing translate to investment performance?
Apr 2022
First clients invest at launch of RAM Models
We launched the MPS solutions into a tough market during April 2022, which if we look back on that period, had only just seen the start of the conflict between Ukraine and Russia. Along with this geopolitical tension came inflationary and interest rate pressures. RAM’s All-Weather Diversification approach significantly helped weather the storm during this tumultuous time, protecting capital and limiting losses where possible. Over the full period, we have not only protected capital when required but steadily and smoothly grown capital over the 2 years since launch, outperforming the IA and ARC indices significantly across all risk profiles (see chart below).
Beyond the strong performance, we take great pride in being able to protect our client’s wealth during times of market stress whilst being available for our financial planners in supporting them and their clients through what was a difficult inflationary period. We provided valuable
Jul 2023
RAM Models on multiple 3rd party platforms
informational material at the time to help calm any concerns clients had as well as supporting and educating our planners about what to expect for the future.
What does the future hold for the RAM business and its investment solutions?
We continue to focus on delivering the best outcome for our clients through our MPS service and are constantly considering new and innovative ways we can help support our clients in achieving their financial goals, be that through retirement or accumulation of wealth. Our partnership with SEI allows us to focus on building what we believe to be the most appropriate solutions built with our planners, for our clients.
What would you say the RAM brand stands for, what is the key message to convey to our client base?
At RAM we recognise that our clients have often spent decades building their wealth and they have come to us to not only protect their capital but to steadily grow it over time. We take great pride in being trusted
Apr 2024 RAM reaches £227m of AuM
by our clients to stand alongside them on their financial journey.
“We are a key cog in helping our clients… dreams come true.”
We are a key cog in helping our clients achieve their financial goals and objectives and making their dreams come true.
We stand alongside the financial planners in this journey and greatly value the trust and confidence required to build a strong and solid partnership together for our clients.
In final thoughts, tell us what you would put into your investment room 101?
“…lock away investment jargon.”
I would lock away investment jargon. Within the investment management industry, we use way too much of it, primarily to sound clever. This only sets out to confuse our audience and showcases investment managers as gatekeepers to a subject that needn’t be understood. I want to change that impression and focus on clear and simple communication.
A
ransferring wealth within a family is a delicate process that requires clear communication and effective planning. Otherwise, it could lead to a potentially large tax bill and bad feelings in the family.
This narrative was depicted in the hit American HBO series ‘Succession,’ which centred on the Roy family, the owners of global media and entertainment conglomerate Waystar RoyCo, and their fight for control of the company amidst uncertainty about the health of the family’s patriarch.
Simplifying the process and maximising tax efficiency
By engaging in succession planning, you can ensure your assets are distributed according to your wishes, simplifying the process and maximising tax efficiency. Before diving into these conversations, consider these questions: When do you want to transfer your wealth? How much wealth do you want to pass on? Who do you want to pass your wealth on to? How do you want to transfer your wealth?
The question of when to transfer your wealth isn’t limited to bequests in your Will. Some strategies for transferring assets during your lifetime may offer various benefits. However, a well-maintained and up-todate Will is the cornerstone of effective succession planning. It should reflect your current circumstances, objectives and
legal considerations in the jurisdictions where you hold assets.
Professional advice and regular reviews of your Will are recommended – every two to three years or following significant life changes such as marriage, divorce or childbirth. In certain regions, like England and Wales, marriage voids any existing Will unless made in contemplation of the marriage.
To maintain the ‘real’ value of your legacies, consider linking them to inflation. Transferring wealth through your Will ensures you don’t compromise your own standard of living. Alternatively, gifting during your lifetime allows you to witness the joy your beneficiaries derive from your generosity. For those subject to UK taxes, this can also be a more tax-efficient method of wealth transfer.
Striking the right balance between sharing your wealth and maintaining your lifestyle is critical. The uncertainties of recent years have underscored the importance of preparing for the unexpected. This preparation involves running various scenarios and ‘stress testing’ the financial outcomes through cash flow planning. This can include testing against different investment return outcomes, inflation
projections and potential longterm care costs.
Cash flow ‘stress testing’ provides invaluable insights when considering more significant gifts. It shows how much you can afford to give away during your lifetime, accounting for worst and best-case scenarios. This approach acknowledges that predicting the future with accuracy is impossible. After all, who would have predicted double-digit inflation in major economies a year ago?
A trust structure can be an ideal solution
Determining who will inherit your wealth is often one of the most straightforward questions to answer, yet it’s deeply personal. This decision is usually intertwined with considerations about timing. For instance, if you’re prioritising the long-term wellbeing of your young grandchildren, a trust structure can be an ideal solution. This arrangement could assist with significant future expenses such as private education, university fees or property acquisitions.
Trustees have the discretion to distribute the funds to the beneficiaries according to the stipulations of the trust deed. Additionally, by becoming a trustee yourself, you retain some control over the process. This option can be particularly valuable if a beneficiary has special requirements, as the trust can be tailored to protect their long-term interests. There’s also the option of allocating part of your wealth to charities with a
special place in your heart. The most effective way to meet your goals
The method of transferring your wealth often becomes clear once you’ve addressed the ‘who’, ‘what’ and ‘when’. Timing is a significant factor in this decision, alongside the practicality of making financial gifts during your lifetime. You must decide whether to make outright transfers or establish a trust structure if feasible. Despite adding a layer of complexity, a trust might be the most effective way to meet your goals.
Importantly, initiating conversations about future financial arrangements with your loved ones is crucial. Achieving the right balance between enjoying your current income and capital while efficiently passing wealth to your family requires careful thought.
Graham Clarkson Partner, Chartered Financial Planner
By engaging in succession planning, you can ensure your assets are distributed according to your wishes, simplifying the process and maximising tax efficiency.
After a lifetime of hard work, you’ve successfully built a substantial and comfortable retirement account. Congratulations are in order. You’ve officially entered the golden years of retirement! Now, it’s time to enjoy the fruits of your labour, provided you’ve laid the groundwork for a well-prepared retirement. But investing after retirement is quite distinct from accumulating wealth during your working years.
The approach of steadily building your investment portfolio, benefiting from pound cost averaging and return compounding, worked well during your earning years. A low-maintenance ‘set and forget’ strategy, with occasional rebalancing, might have been all you needed. But when you retire, the investment dynamics change. Don’t underestimate your lifespan
Entering retirement might bring a sense of accomplishment but can also usher in doubts. You might question whether you’ve amassed enough resources, how to optimise them, and what to do if unforeseen circumstances arise.
If you’re transitioning out of work entirely, you may experience a significant shift in perspective. It can be psychologically challenging to watch your net worth decrease after a lifetime of seeing it grow. Planning ahead can alleviate this stress. Begin by defining your financial goals and estimating their costs. Additionally, don’t underestimate your lifespan. The average life expectancy in the UK during 2023 was 81.77, but if you’re in good health in your sixties, you are likely to live longer[1] .
Additionally, don’t underestimate your lifespan. The average life expectancy in the UK during 2023 was 81.77, but if you’re in good health in your sixties, you are likely to live longer[1] .
‘Necessary expenditures’ and ‘desired expenditures’
This will likely involve distinguishing between ‘necessary expenditures’ and ‘desired expenditures’. Compare these projected expenses against your known income sources – state and defined benefits pensions, any annuities due –to determine how much your personal pensions, capital and investments need to generate to cover any deficit.
In your retirement income strategy, you’ll encounter three major risks: inflation, longevity and market volatility.
In your retirement income strategy, you’ll encounter three major risks: inflation, longevity and market volatility.
Each requires a unique solution. Inflation silently erodes your spending power annually as prices rise. This has become particularly noticeable recently with the sharp increase in the cost of living after a period of relatively low inflation. However, even minor annual increases can compound into substantial hikes over the two decades or so that the average person spends in retirement.
Ensuring your pension investment strategy aligns with your needs is essential as you approach retirement.
Market fluctuations are an ever-present uncertainty. While risk-taking can yield rewards over the long term, significant swings in a retirement portfolio’s value can be unsettling and potentially catastrophic if withdrawals coincide with market downswings in the early retirement years. Regarding retirement, your pension options are not solely about investing. You can take two principal courses of action as you approach this phase of your life. You can either continue investing and withdraw money from your pot as needed, a strategy known as pension drawdown, or purchase an annuity, an insurance policy ensuring a steady income for life.
Pension drawdown provides additional flexibility and the potential for higher returns and increased income from your pension pot. Since your pension fund remains invested, market performance can fluctuate. Purchasing an annuity guarantees you a regular income that will last throughout your lifetime. Moreover, annuity rates have increased over the past year due to the rise in interest rates.
Securing a steady income for 30 or so years can be a challenging
endeavour filled with numerous pitfalls when drawing from an investment portfolio; the long-term average return and the sequence of returns matter. Poor performance in the initial years can also be costly, even if followed by good returns.
While it’s crucial not to take too little investment risk, derisking a portfolio might not be the best move if you only need to draw modestly on your money and keep most of it invested for long-term returns. However, withdrawing from your pot means you can benefit less from compounding returns.
Ensuring your pension investment strategy aligns with your needs is essential as you approach retirement. Depending on whether you opt for an annuity or a drawdown, you might need to adjust the asset mix in your portfolio to meet your retirement objectives.
Adrian Tomaino Regional Sales Manager
In an era where climate change, pollution, and biodiversity loss are pressing concerns, Radiant stands out as a beacon of environmental stewardship. Committed to reducing the ecological footprint of everyday operations, Radiant focuses on several key areas to mitigate environmental impact and promote sustainability.
Plastic Waste Reduction: Radiant is spearheading initiatives to eliminate plastic waste from its premises. By replacing water coolers with in-line carbon filters and ditching disposable coffee cups for washable alternatives, the company significantly minimises single-use plastic consumption. Additionally, all staff members are equipped with metal refillable water bottles to further curb plastic usage.
Paper and Waste Management: Embracing a paperless environment and centralising inbound post scanning, Radiant drastically reduces paper consumption and waste. Offices transition to green waste disposal contracts to ensure responsible waste management practices.
Energy Efficiency: Through comprehensive lighting upgrades and procurement of green energy contracts, Radiant optimises energy usage across its offices. Environmental assessments
guide sustainability measures during office acquisitions, ensuring alignment with Radiants environmental objectives.
Travel Optimisation: Embracing remote work culture and virtual meetings, Radiant slashes commuting and travel-related emissions. The company promotes alternative transportation options like cycling to work schemes and prioritises rail travel for team meetings and client visits.
Carbon Offsetting: Despite significant reductions in emissions, Radiant acknowledges its residual carbon footprint. Collaborating with Carbon Neutral Britain, the company not only measures emissions but actively implements reduction strategies. Radiant offsets remaining emissions through community-centric funding schemes, aiming not only to be carbon neutral but carbon positive.
Radiant prioritises the wellbeing and development of its staff, recognising their pivotal role in delivering exceptional service. Communication channels like “The Loop” facilitate information dissemination, while comprehensive health and well-being benefits ensure staff welfare. Initiatives such as enhanced parental leave and flexible working hours underscore Radiants commitment to employee satisfaction and work-life balance.
With robust risk and governance frameworks, Radiant ensures transparent and accountable operations. Committees oversee risk management strategies, while adherence to Terms of Reference guarantees board independence and effective oversight. Regular reporting and annual reviews ensure continuous improvement and adaptation to evolving business dynamics.
As Radiant continues to evolve, its dedication to environmental sustainability and social responsibility remains unwavering. From implementing innovative solutions to fostering a supportive workplace culture, Radiant sets the standard for corporate responsibility in a rapidly changing world. With ambitious goals and a steadfast commitment to positive change, Radiant paves the way towards a brighter, greener future.
Samantha Darbyshire EA to CEO and Head of Marketing
It is crucial for all individuals and organisations to do their part to reduce their environmental impacts in the face of climate change, pollution, and loss of biodiversity.