Your magazine from Radiant Financial Group - for your brighter future
Start 2025 with a New Year’s wealth check
Financial resolutions to boost your wealth this year
Should First time buyers opt for and older property or a new build?
Pension funds and the path to net zero
Financial planning for your children’s education
Why do New Years resolutions often fail
Who pays for long-term care?
Welcome to the first 2025 edition of Horizons. As usual, we provide a variety of reading and insight for you on financial matters, as well as our usual range of lifestyle articles, which I hope you will enjoy.
And so, another year begins – but in the world of financial planning we think in tax years –so the busiest part of our year is upon us as we prepare to conclude our clients’ tax affairs for the 24/25 year. And it’s been a while since the environment in which we provide advice has had so many changes. Rachel Reeves first (and
pundits would suggest perhaps her last) budget continues to have ripple effects across all of our clients: from Employer National Insurance hikes, changes now and in the future on Inheritance Tax, pension reforms, Capital Gains Tax to another unstable bond market. Plenty for us to help our clients consider.
Then across the water, waves forming from the newly inaugurated president will I am sure have significance to us over the immediate and long-term, not least affecting global investment markets even before tariffs potentially begin to bite.
Simon Cogman-Hellier Editor
My grandmother used to warn me that my life would speed up and that I shouldn’t wish it away. At 7, with my birthday at Christmas time too, the year seemed to grind on endlessly! And now, whilst pretending that 62 is just a number, I realise how right she was as January will soon be a distant memory and we plough headlong to the renewal of Spring. So now, I rely on the quotation of a favourite author: “You are never too old to set another goal or to dream a new dream.”
– C.S. Lewis
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.
Like your car, your finances require consistent care and attention to keep running smoothly. Just as a regular service ensures your vehicle performs at its best and avoids costly breakdowns, a yearly financial check-up is vital to ensuring your money works as effectively as possible. The beginning of 2025 offers an ideal opportunity to take stock of your financial health, setting the tone for a prosperous and secure year ahead.
Even if you have a strong financial plan, life rarely stands still. Changes such as a promotion, a new mortgage, or a shift in family circumstances could mean your plan no longer fits your needs. Additionally, financial law and regulation updates might impact your investments or tax allowances, making it crucial to revisit your strategy. A New Year’s wealth check helps you stay on top of these changes and provides clarity and confidence in your decision-making, preparing you for whatever lies ahead.
A great deal can change over a year, and regular reviews are necessary for your investment portfolio to maintain its balance and effectiveness. Some investments could start underperforming due to market shifts or company-specific issues, while others may outperform expectations, presenting you with opportunities to take profits and reinvest strategically. Without attentive management, you risk missing these critical moments,
which could compromise your portfolio’s overall performance.
Overexposure to specific companies, sectors, or geographical markets can also introduce significant risks. A lack of diversification might leave your portfolio vulnerable to market fluctuations or economic downturns in focused areas. Regularly reviewing your investments ensures they remain appropriately diversified and continue to reflect your financial goals, risk tolerance, and timelines for achieving them.
Insurance policies are another critical area in your New Year’s wealth check. These include cover for income protection, life insurance, and critical illness. Regular reviews are vital, especially if your personal circumstances have changed. A pay rise, for instance, might require you to increase the income you are protecting. Similarly, a larger or smaller mortgage could mean adjusting your life insurance cover.
Keeping these policies up to date ensures that your family is financially protected if illness or misfortune strikes. It’s also worth checking whether you’re overpaying for certain types of cover. A professional review can help you balance adequate protection and cost efficiency.
A New Year’s wealth check can highlight your readiness
for a fulfilling and comfortable retirement. If your pension savings are falling short, now may be the time to address this gap. By using your pension Annual Allowance, you can maximise your tax relief. In the tax year (2024/2025), the standard allowance is £60,000 annually. This covers the amount you can pay into your defined contribution pensions and receive tax relief, including your contributions, your employer’s, and anyone else who might pay in on your behalf. The benefit of this relief, combined with the effects of compounded investment growth, can significantly increase your retirement pot over time.
Additionally, the start of 2025 is an excellent opportunity to ensure you are taking advantage of other tax-efficient options. You can invest up to £20,000 annually in Individual Savings Accounts (ISAs) for tax-efficient growth and income. Junior ISAs allow families to invest £9,000 annually per child, which could build into a substantial fund for university or a first-home deposit. Using allowances like these, Capital Gains Tax exemptions and personal savings allowances can help you manage your wealth more efficiently.
Balancing family priorities with long-term savings often feels like a juggling act. You might be saving for school fees, giving your children a financial boost onto the property ladder, or ensuring you’re putting enough aside for your retirement. At the same
time, you could support elderly relatives as their health declines, adding strain to your household budget.
Even with a healthy income, managing competing priorities can be challenging. That’s why a carefully constructed financial plan is crucial. It should address your current needs and adapt to them as they evolve over time, helping you maintain stability through life’s twists and turns.
Many individuals find the intricacies of rebalancing investments, planning taxefficient strategies, and developing a resilient retirement fund overwhelming. That’s where professional financial advisers come into play. We can tailor an individual plan around your unique circumstances, reviewing it regularly to ensure it remains aligned with your personal goals, changes in legislation, and the economic climate.
Our professional guidance can make the difference between simply managing your finances and genuinely mastering them. With our advice, you will gain clarity on your financial options and the confidence to make informed decisions.
We can tailor an individual plan around your unique circumstances, reviewing it regularly to ensure it remains aligned with your personal goals, changes in legislation, and the economic climate.
Tony Riley Regional Sales Manager
Looking to take control of your financial future with a New Year’s wealth check?
The start of 2025 presents the perfect opportunity to assess your financial health and put plans in motion to achieve your goals. Whether building your retirement fund, supporting your family, or investing tax-efficiently, take the time to prioritise your financial wellbeing. For tailored professional advice and a personalised financial review, contact us today. Together, we can build a financial future that’s secure and aligned with your aspirations.
An effective way to establish a clear direction and work towards meaningful achievements
The arrival of a new year brings with it a sense of renewal and possibility. It’s the perfect time to take stock of our lives and plan for the months ahead. Personal goal setting is an effective way to establish a clear direction and work towards meaningful achievements in both our personal and professional lives.
At its core, goal setting is about identifying what matters to you and creating a roadmap to get there. Whether it involves career growth, improving health, or fostering stronger relationships, setting specific and achievable goals can provide the focus and motivation to turn aspirations into reality.
The start of a new year offers a unique psychological advantage. It feels like a clean slate—an opportunity to leave behind the mistakes and challenges of the past and start afresh. Setting goals at this time capitalises on that mindset, translating it into actionable plans.
Additionally, having clear goals provides you with a sense of purpose and direction. Instead of moving through life reactively, you are able to proactively shape your future. This can contribute to greater satisfaction, productivity, and even mental wellbeing.
One of the most effective ways to ensure your goals are achievable is by using the SMART framework. This means your goals should be Specific, Measurable, Achievable, Relevant, and Timebound. For example, rather than saying, “I want to get fit,” you might decide, “I will go to the gym three times a week for 45 minutes over the next three months.”
The SMART approach forces you to break vague aspirations into clear steps. It also encourages you to hold yourself accountable and measure your progress. With this clarity, you are less likely to lose motivation or feel overwhelmed.
It’s tempting to set numerous ambitious goals at the start of the year, but this can lead to burnout and disappointment. Instead, focus on just a select few goals that truly matter to you. By concentrating your efforts, you’ll likely find greater success and satisfaction.
Starting small is also key. If your ultimate aim feels daunting, break it into smaller, incremental actions. For instance, if your goal is to save money, start by saving a fixed amount each month until it becomes a manageable habit.
Regularly monitoring your progress is essential for maintaining momentum. You might use a journal, an app, or even a checklist to keep track of how well you’re sticking to your goals. These tools can serve as a source of motivation when you see how far you’ve come.
Don’t be afraid to reassess your goals as the year goes on. Life is unpredictable, and circumstances may change. Adjusting or refining your plans isn’t a failure; rather, it’s a way of ensuring your goals remain relevant and realistic.
Achieving a goal, no matter how small, deserves recognition. Celebrating milestones along the way reinforces a positive attitude and reminds you of the progress you’ve made. Treat yourself to small rewards when you hit key targets—it could be as simple as a favourite meal or a movie night. Celebrations not only keep motivation high but also encourage you to maintain your efforts. Achievement feels more attainable when it’s punctuated with moments of joy and pride.
While annual goals are an excellent start, they shouldn’t exist in isolation. Consider how they fit into your long-term vision. Setting yearly targets aligned with your broader ambitions ensures continuity in your personal development.
Remember that patience is key. Some goals may take longer than twelve months to accomplish, and that’s perfectly fine. Personal growth is an ongoing process, and the new year is just one chapter in the larger story of your life.
By setting thoughtful goals and committing to them, you can turn the blank canvas of a new year into a masterpiece of purpose and achievement.
The arrival of a new year brings with it a sense of renewal and possibility. It’s the perfect time to take stock of our lives and plan for the months ahead.
For many students, starting university marks an exciting new chapter in life. It’s a leap forward in education and career aspirations but also brings financial challenges. Anxiety over tuition fees and living costs is common, as many underestimate the actual price of higher education.
It’s often said that university represents the best years of your life, but financial pressures can make this time stressful. Students can manage expenses through a combination of budgeting, student loans, and part-time work. However, long-term financial planning — done years in advance — can provide a significant
advantage, even enabling students to graduate debt-free.
For parents of younger children, the financial considerations of education can feel overwhelming. While private schooling is a goal for many families, it’s an increasingly expensive aspiration, especially with the recent introduction of VAT on private school fees under the Labour government.
Planning early is crucial to easing this burden. The first steps involve calculating when the fees may start, estimating annual fee levels and potential increases, and
considering how many children you’ll need to provide for. Future family income, assets, and inheritance should also influence decision-making.
If approached wisely, investment strategies are a highly effective way to fund education costs. Historically, owning assets— particularly equities—has proven effective for long-term wealth growth, outperforming cash savings. However, a cash-based savings plan may suffice for those who are risk-averse or only saving for a short period.
A balanced approach could
involve keeping five years’ worth of education fees in accessible cash while investing the remaining amount. This strategy ensures liquidity for immediate needs while benefiting from potential long-term growth. To achieve an optimal balance between risk and reward, it is wise to build a diversified portfolio containing UK and global equities, bonds, and alternatives like commercial property or infrastructure.
Effective tax planning plays a pivotal role in saving for education. Making the most of tax-efficient accounts, such as
Individual Savings Accounts (ISAs), can lead to significant savings. Parents can contribute up to £20,000 annually (2024/2025) into a Stocks & Shares ISA (or £40,000 for couples). The annual cap for Junior ISAs in the 2024/25 tax year is £9,000, which can reduce the financial strain of university tuition when accessed at age eighteen.
One of the key advantages of Junior ISAs is their flexibility. They allow parents, grandparents, and friends to contribute while benefiting from tax-efficient growth and withdrawals as the child enters adulthood.
Grandparents frequently play a supportive role in education
funding. Regular gifting from income— provided it does not impact the donor’s lifestyle—can mitigate Inheritance Tax (IHT). Up to £3,000 in gifts annually is exempt, or larger gifts removed from IHT if the donor survives for at least seven years.
For significant contributions, grandparents may consider setting up a trust, which can offer additional safeguards. Advanced financial guidance is advisable for those wishing to explore this route.
Financial planning should also encompass protection against unforeseen circumstances. Life insurance, critical illness cover, and income protection are
For significant contributions, grandparents may consider setting up a trust, which can offer additional safeguards. Advanced financial guidance is advisable for those wishing to explore this route.
essential safety nets. Without these, an illness, injury, or sudden death could jeopardise a child’s education savings plan. These policies provide peace of mind, ensuring your child’s future remains secure even in challenging situations.
Education is one of the most significant and rewarding investments you can make for your child. By planning early and considering all available financial tools, you can position your family to meet the costs of both school and university education effectively. Whether your approach features a combination of tax wrappers, investment strategies, or simply careful budgeting, every financial effort lays a foundation for your child’s future.
Will
you
secure a fulfilling and financially stable retirement?
If you’re looking for professional advice tailored to your circumstances, contact us today to secure the best plan for your child’s educational needs. Planning today could make all the difference for tomorrow. We look forward to hearing from you.
How would you pay your bills if you couldn’t work?
In today’s unpredictable world, safeguarding financial stability is more crucial than ever. Many of us would struggle to keep up with our essential outgoings, such as mortgage and rent, if we lost an income due to illness or an accident.
Whether you’re employed or self-employed, income protection is a long-term insurance policy designed to ensure you receive a regular income until you either retire, are fit to return to work or pass away.
Surprisingly, only a small fraction of the UK population –less than one in ten, to be precise – has this type of cover in place, according to research[1]. This is despite the alarming statistic that 42% of UK adults are concerned about their household’s ability to cope financially if they cannot work[2] .
There is also a notable gender
protection gap. A significant 29% of women surveyed indicated that they couldn’t afford protection, in contrast to 23% of men. Moreover, over a quarter of women admitted they would have to rely on their partner’s income if they found themselves unable to work. This reliance underscores the importance of personal financial independence and protection planning.
Income protection insurance offers regular payments that replace a portion of your income. These payments are made until you can return to work, retire, pass away or reach the end of the policy term – whichever happens first. Typically, the policy covers between 50% and 65% of your income, addressing a wide range of illnesses that may prevent you from working, both in the short and long term.
A significant advantage of this type of insurance is its flexibility. You can claim as many times as necessary during the policy’s lifespan. However, it’s important to note that there is often a preagreed waiting, or ‘deferred’, period before payments commence. Typical waiting periods range from four weeks up to a year, with longer waiting times generally resulting in lower monthly premiums.
It’s crucial to differentiate income protection from critical illness insurance, which provides a one-off lump sum upon diagnosis of a specified serious condition. When unable to work due to illness or an accident, many people might assume their employer will continue to provide some income support. The reality
is that employees often transition to Statutory Sick Pay within six months, with few employers offering extended support beyond a year.
It’s essential to verify what support your employer offers if you become incapacitated. The loss of income can quickly erode savings and make it difficult to cover essential household bills, especially if you’re self-employed and lack sick pay benefits. This is where income protection insurance becomes invaluable, providing the peace of mind that your financial obligations are met, even in the face of adversity.
Whether you’re employed or self-employed, income protection is a long-term insurance policy designed to ensure you receive a regular income until you either retire, are fit to return to work or pass away.
Will you and your family remain secure during unexpected life events? Income protection insurance is essential to creating a comprehensive financial plan. It ensures that you and your family remain secure during unexpected life events. Contact us for further information if you have concerns or want to explore the options available.
Stuart Mehrtens Financial Planner
Taking a proactive approach to clarify your current financial standing
The start of a new year is the perfect opportunity to take a step back and thoroughly reassess your financial situation. It’s a natural time to evaluate and reshape your saving habits, particularly important whether you’re building an emergency fund, planning for retirement, or investing in longterm growth. This proactive approach clarifies your current financial standing and sets the foundation for a more secure and prosperous future.
Even small financial adjustments made now can have a domino effect, significantly enhancing your financial wellbeing in the years to come. Expert insights can simplify complex issues, identify opportunities you may not have considered, and ensure that your plans are robust enough to weather future uncertainties. By proactively addressing your financial health at the start of the year, you set yourself up for greater financial stability and peace of mind in 2025 and beyond.
Assessing your spending and saving patterns
With the cost of living soaring across the past year, having a robust budget has become more essential than ever. Knowing where your money goes is vital in preventing unnecessary expenses and finding opportunities to save for future goals. Even simple changes, such as cutting down on discretionary purchases, can free up money for more meaningful purposes.
It’s generally recommended to have a safety net of around six months’ worth of essential living costs in an accessible savings account. Once this rainy-day fund is in place, consider longer-term goals. If your objectives span five years or more, exploring stock market investments might be worth consideration. Despite its inherent volatility, the stock market has historically outperformed cash savings over the long term.
Has anything changed in your life that might impact your financial priorities? A new year
is an ideal time to assess your financial ambitions, whether short, medium, or long-term. For instance, if your income has increased or your family circumstances have shifted, your financial plan may benefit from some adjustments.
Revisiting goals may also involve reassessing your investment portfolio. It is crucial to ensure that your investments align with your risk tolerance and long-term objectives. Professional financial planners can help you monitor your progress and recommend strategies to keep you on track, preserving and growing your wealth effectively.
Your pension is a key component of your financial future, yet losing track of its growth is easy. Understandably, day-to-day expenses might often take precedence, but it’s worth evaluating how much you’ve accumulated for your retirement. Reviewing your pension pots now helps determine if you’re on course to meet your retirement goals or whether adjustments, such as increasing contributions, are necessary.
It’s essential to look at the tax advantages pensions offer. For instance, basic-rate taxpayers receive 20% tax relief on contributions. This means a £100 contribution effectively costs £80. Higher-rate and additional-rate taxpayers receive even greater relief, making pensions one of the most tax-efficient ways to secure your financial future.
Tax planning is essential to any financial strategy and offers opportunities to stretch your money further. Staying proactive throughout the tax year — rather than leaving it to the last minute — can significantly affect your financial outcomes.
For example, individual Savings Accounts (ISAs) allow you to save up to £20,000 taxfree annually. This makes ISAs particularly suitable for building wealth pre-retirement or as a source of tax- efficient income later on. Beyond ISAs, consider
allowances for Capital Gains Tax and dividends, which can also play significant roles in a tax-optimised investment strategy.
Life can be unpredictable, which is why financial protection is vital. Ensuring you have adequate insurance coverage — be it life insurance, critical illness cover or income protection — safeguards your loved ones against financial strain in the event of the unexpected. Even if you already hold policies, reviewing them annually is wise to ensure they remain relevant to your circumstances.
Over time, gaps in protection may emerge as your financial commitments evolve, such as having children or taking on a larger mortgage. Updating your policies ensures that your family’s financial future is secure.
A Will is fundamental in guaranteeing that your wishes are carried out after your death. Yet,
many overlook the importance of having one in place. If you’ve already made a Will, consider whether it needs updating — especially if life events such as marriage, divorce or the birth of a child have occurred since it was written.
Ensuring your Will is up to date can also help to minimise disagreements and ensure assets are distributed according to your preferences. It’s a small step but one with long-lasting implications for those you care about.
Without expert advice, navigating pensions, investments, and tax allowances can feel overwhelming. We can simplify these complexities and provide strategies tailored to your individual needs and goals. Why not make this the year you take the next step towards financial confidence? By seeking professional advice, you could gain clarity on your current position, reassurance of future stability, and insight into opportunities you may not have considered.
It’s essential to look at the tax advantages pensions offer. For instance, basicrate taxpayers receive 20% tax relief on contributions.
Please contact us if you need help planning your finances or addressing specific concerns. Together, we can explore solutions designed to meet your unique needs and ensure your financial plans are aligned with your goals. Make this year the one where you take charge of your financial destiny. Contact us for tailored planning solutions today!.
Paul Jackson Partner, Chartered Financial Planner
Weighing up your financial readiness to make your move
How much does it cost to buy a house or a flat? The cost of buying a home will vary significantly depending on whether you’re a first-time buyer or are selling a home simultaneously.
As you weigh your financial readiness to purchase a property, you need to factor in the immediate costs. Building up savings for these costs, such as a deposit and other associated fees and costs, is a substantial undertaking.
If you’re contemplating stepping into the realm of homeownership or moving to another property, here’s an overview of the financial considerations involved in making your move.
The deposit is the initial sum you contribute towards the cost of your new home. Generally speaking, the larger the deposit you can afford, the more favourable your mortgage terms will be. This is subject to satisfactory results from a mortgage affordability assessment. As a rule of thumb, you will require between 5% and 20% of the purchase price. For instance, if you buy a property worth £200,000, you would need a deposit ranging from £10,000 to £40,000.
Your mortgage lender will conduct a valuation of the property to determine the maximum amount they will lend you. Valuation fees vary, typically ranging from £150 to £1,500, depending on the property’s value. Some lenders may waive this fee, depending on your chosen mortgage product. However, it’s important to note that a lender’s valuation isn’t as comprehensive as a full structural survey and may not identify all necessary repairs or maintenance. Surveyor’s fees
Before finalising your property purchase, it’s crucial to have the property inspected by a surveyor. This step is essential to uncover potential issues before committing to the purchase. Surveys vary in detail and cost, with a basic home condition survey starting
at around £250, while a full structural survey could cost £600 or more. Investing in a thorough survey can ultimately save you money by highlighting potential repair costs early on.
If you’re purchasing a property costing more than £250,000, you’ll likely have to pay Stamp Duty unless you’re a first-time buyer. Eligible first-time buyers are exempt from Stamp Duty for properties costing up to £425,000. They pay 5% on the portion between £425,001 and £625,000. This means first-time buyers who buy a property worth up to £625,000 will pay no Stamp Duty on the first £425,000 and only pay 5% on the remaining amount.
The Stamp Duty rates announced in the mini-budget on 23 September 2022 remain unchanged until 31 March 2025. If you’re buying a second property, be prepared to pay an additional 3% Stamp Duty. This tax applies to both freehold and leasehold properties. Stamp Duty is replaced by the Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) for properties in Scotland and Wales.
You’ll typically need a solicitor or licensed conveyancer to handle the legal work of buying and selling your home. Legal fees usually range from £850 to £1,500, including VAT at 20%. These professionals will also conduct local searches between £250 and £300 to identify any local plans or issues that could impact your property.
An electronic transfer fee, usually between £40 and £50, covers the lender’s cost of transferring the mortgage money to the solicitor.
You might encounter additional costs such as a booking fee ranging from £99 to £250, an arrangement fee of up to £2,000, and a mortgage valuation fee that could be £150 or more.
On the other hand, the seller pays the estate agent’s fee for the
estate agent’s services. This fee is negotiated when the property is listed and is typically 1% to 3% of the sale price plus 20% VAT or a flat fee for online estate agents.
The costs mentioned in this article are only provided as illustrations and should not be used as exact figures. The actual expenses you may incur can vary significantly based on many factors, such as geographical location, specific providers, individual circumstances, market fluctuations and more. Always conduct thorough research and consult with professionals to get a realistic estimation of the potential costs involved in your specific situation.
Alan Holmes Head of Mortgages
As you weigh your financial readiness to purchase a property, you need to factor in the immediate costs. Building up savings for these costs, such as a deposit and other associated fees and costs, is a substantial undertaking.
Data suggests a disheartening truth –most resolutions are abandoned by February
Each year, as the clock strikes midnight, millions of people worldwide welcome the New Year with renewed hope. Resolutions are made to improve some aspect of life, from better health to financial success. However, data suggests a disheartening truth: Most resolutions are abandoned by February.
This begs the question, why do people struggle to stick to them? Exploring the most common goals and understanding their pitfalls can provide insight and guidance for future success.
Weight loss is arguably the most popular New Year’s resolution. Countless individuals pledge to shed excess pounds, envisioning a healthier and more energetic lifestyle. Gym memberships and home workout plans often skyrocket in January, paired with restrictive diets. Unfortunately, without a clear and sustainable plan, motivation wanes quickly. Jumping into intense regimes or unrealistic diets often leads to burnout or disappointment, pushing people back to old habits by the month’s end.
Financial resolutions, like “save more” or “spend less,” rank as top contenders for New Year’s aspirations. The idea of improving one’s financial stability resonates with people from all walks of life. These goals often start strong, with initial enthusiasm for budgeting and tracking expenses.
However, vague intentions without a defined strategy can –and usually do – falter. A lack of consistent effort or temptation to overspend often derails progress, especially during sales or social events.
The decision to quit smoking is a resolution many make each year, fuelled by the desire for better health and longer life. The initial commitment is commendable, and nicotine cessation aids like patches or apps are widely available to assist.
Yet, the physical and psychological addiction to nicotine is arguably one of the hardest habits to break. Without support systems, perseverance, or professional guidance, even the strongest intentions can crumble in the face of withdrawal symptoms and stress.
One of the most common reasons resolutions fail is the tendency to set overly ambitious goals. Whether it is planning to lose 10 kilograms in one month or saving an extraordinary amount of money within a short period, unrealistic targets can lead to frustration. When immediate results don’t follow the effort, people are more likely to abandon the cause.
Instead, breaking lofty objectives into smaller, measurable milestones could significantly increase the chances of success. Progress, no matter how small, provides encouragement to keep moving forward.
Many resolutions depend heavily on intrinsic motivation, but feelings of excitement and determination often fade with time. Habits are deeply rooted, and changing them requires discipline over motivation alone. Additionally, failing to track achievements or celebrate incremental wins can make the process feel unrewarding and tiresome.
Cultivating discipline, perhaps through structured routines or accountability partners, helps ensure progress even on lowmotivation days.
Though the statistics may seem bleak, resolutions don’t have to end in failure. The key lies in setting realistic, measurable goals, planning thoroughly, and seeking consistent support. For instance, someone aiming to lose weight could start by committing to three weekly workouts and gradually build up intensity. Resolutions are not about perfection but progress. While challenges are inevitable, taking time to reevaluate and adjust the approach can lead to lasting results. By moving away from instant gratification and focusing on long-term habits, the New Year can truly become a turning point.
Financial resolutions, like “save more” or “spend less,” rank as top contenders for New Year’s aspirations.
Shaping how individuals and communities prioritise their physical and mental wellness
The way we approach health and wellbeing is continuously evolving, and 2025 promises to be a pivotal year in shaping how individuals and communities prioritise their physical and mental wellness. With new technologies, a deeper understanding of personal needs, and a growing emphasis on sustainability, the landscape is set to look vastly different from just a few years ago.
As we move forward, more people are blending traditional practices with modern innovations to create a balanced lifestyle. From cutting-edge digital health tools to increasing awareness around mental health, the trends of 2025 are focused on empowering individuals to take control of their health in meaningful ways.
Among the key trends is the rise of digital health technologies designed to make healthcare more accessible and efficient. Wearable devices are becoming more sophisticated, offering users real- time insights into their physical activity, sleep patterns, and even blood pressure levels. These gadgets are allowing people to monitor their health more closely than ever before, enabling early detection of issues and promoting preventative care.
Virtual healthcare services will also continue to expand, bridging the gap between patients and healthcare professionals. Whether it’s through telehealth consultations or AI-powered health trackers, the ability to receive expert support anytime, anywhere is now becoming
the norm. This digital shift not only saves time but ensures a continuity of care that can be difficult to achieve through traditional methods alone.
While physical health has always been a focal point, 2025 is set to redefine how we approach mental health. Globally, there is a growing acknowledgement of its importance, and many are seeking tools and strategies to maintain psychological resilience. Digital platforms offering mental wellbeing programmes are on the rise, from mindfulness apps to online counselling services.
Workplace mental health is also in the spotlight, with many organisations recognising the need to support their employees’ emotional wellbeing. Initiatives such as mental health training for managers and flexible working arrangements are becoming key components of corporate strategies, fostering healthier work environments.
Nutrition is one area where advancements in technology are having a profound impact. Personalised diets, tailored to an individual’s unique genetic and biological profile, are gaining traction. With the help of DNA testing kits and health apps, people can now discover which foods suit their body best, improving digestion, boosting energy, and even managing chronic conditions.
The interest in gut health is another major trend, with an increased focus on probiotics,
fermented foods, and fibre-rich diets. Understanding the gutbrain connection has highlighted how nutrition can directly influence mood and mental clarity, leading many to adopt diets aimed at enhancing both body and mind.
Sustainable practices continue to influence consumer decisions, and the wellness industry is no exception. People are increasingly looking for eco-friendly options, whether it’s in the products they use or the lifestyle choices they make. From refillable beauty products to low-impact exercise gear, sustainability is becoming intertwined with personal wellbeing.
Plant-based diets remain a significant trend, driven by both health benefits and environmental concerns. Many are swapping meat-heavy meals for plant-driven cuisine, not only to improve their own health but also to reduce their carbon footprint. This shift underscores a growing recognition that personal health and the planet’s health are closely linked.
Finally, 2025 is also poised to see a revival in community wellbeing initiatives. Group fitness activities, wellness retreats, and neighbourhood health programmes are fostering connections while promoting holistic health. These experiences are designed to cater to physical, mental, and social needs, bringing people together
for a common goal.
Social media platforms are further amplifying this sense of community, providing spaces where individuals can share their wellness journeys and support one another. This collective approach to health ensures that it’s not an isolated effort but a shared experience that inspires and uplifts.
A year of opportunity and progress
The trends in health and wellbeing for 2025 reflect a deep shift towards innovation, inclusivity, and sustainability. With the continuous development of digital health tools, an increased focus on mental wellness, and a commitment to personalised and eco-friendly practices, the year ahead holds great promise.
More importantly, these trends are empowering individuals to make informed choices about their wellbeing, paving the way for a healthier and more connected future.
While physical health has always been a focal point, 2025 is set to redefine how we approach mental health.
Investing isn’t a one-size -fits-all approach
Are you considering delaying your next investment until the market drops? It’s a common notion, particularly among new or even experienced investors. The strategy of ‘timing the market’—buying stocks when their value is low and selling them when high—may sound like the perfect plan. But even the most successful fund managers in history have struggled to do this consistently. Predicting the market is notoriously difficult; even experts can’t always call it right. Rather than trying to find the ‘perfect’ moment to invest, it’s vital to understand that the right time depends on you and your financial circumstances. Additionally, holding cash plays an important role in financial planning, but it’s worth exploring where it fits into your broader strategy.
Your hard-earned money deserves to be preserved, and you might think the safest move is to keep it in cash. This way, there’s no ambiguity—you know exactly what you stand to receive back. With recent rises in interest rates, cash may seem even more appealing. But is cash entirely without risk? Not quite.
From a wealth planning perspective, it’s always advisable to maintain an emergency or ‘rainy day’ fund. This ensures you’re covered for unexpected expenses or specific financial goals and allows you to keep the funds easily accessible. However, while cash makes sense for shortterm needs, there are pitfalls when too much of your money is left as cash for extended periods.
In 2020, the Bank of England (BoE) base rate plummeted to a historic low of 0.10%, a move aimed at supporting the economy during the unprecedented challenges of the Covid-19 pandemic. This created a bleak scenario for savers, as interest rates on savings accounts became almost negligible, with some offering as little as 0.01% annually. For many, this situation meant their cash savings earned virtually nothing, even as living costs increased.
Fast-forward to 2024, and the landscape looks very different. Rising inflation pressures prompted the BoE to raise the base rate steadily over time, eventually peaking at a 15-year high of 5.25% by mid-year. This
sharp climb was an effort to counter inflation, which had surged to double digits in late 2022, reaching a 41-year high of 11.1%. By August 2024, however, the BoE opted for a slight rate cut to 5.0%, signalling a potential shift in the interest rate cycle as inflation began to ease.
Stark contrast to the near-zero returns
For savers, the elevated rates offered a silver lining. Many high street banks and financial institutions adjusted their savings account offerings, with some providing interest rates of up to 5% or more. This marked a stark contrast to the near-zero returns of just a few years prior, creating what appeared to be a favourable environment for holding cash. However, it’s essential to approach this with caution.
Cash rates tend to be short-term tools that respond to BoE rate changes, often requiring savers to shop around regularly to secure competitive returns. For example, introductory savings account rates may drop after a fixed period, leaving your cash earning less if left unmanaged.
Savers have had to remain vigilant, comparing accounts and transferring funds to keep pace with the changing rates. This ongoing effort can be timeconsuming and administratively demanding, undermining the simplicity often associated with holding cash.
Yet, even with higher interest rates, the effective value of cash savings is still vulnerable. Inflation, although moderating in 2024, remains a significant factor. If inflation continues to outstrip savings rates, the purchasing power of your cash may erode over time, highlighting the importance of balancing emergency funds with long-term growth-focused investments.
The hidden costs of too much cash
Despite the apparent safety net cash provides, leaving funds idle can come with significant hidden costs. While cash may feel like a secure option, the opportunity cost of not investing could be substantial. When your savings sit in cash, you risk missing out on the long-term growth potential of the stock market, which historically outpaces cash returns. Over the past four decades, the FTSE All-Share Index has delivered an average annual return of around 7.8%, including dividends —returns that cash holdings cannot match.
Investments benefit from multiple mechanisms like capital
growth, dividend reinvestment, and compounding interest over time. Compounding, in particular, plays a decisive role in generating wealth, as reinvested dividend income fuels exponential growth. By contrast, cash savings remain static, missing out on this growth dynamic.
Furthermore, keeping money in cash accounts outside taxefficient vehicles, such as ISAs or premium bonds, can expose you to tax liabilities. This erodes the already modest returns offered by cash deposits. Many savings accounts also fall short of personal savings allowances, meaning interest earned above yearly limits (£1,000 for basic-rate taxpayers or £500 for higher-rate taxpayers) could be subject to tax. This diminishes the actual value of cash savings further.
Inflation poses the most significant challenge to holding excessive cash. Over time, inflation diminishes the real buying power of money, a phenomenon that can cripple long-term financial planning. For example, in October 2022, UK inflation escalated to 11.1%, a 41-year high.
Despite rising savings rates, which peaked at around 5% in some cases during 2024, these returns were considerably outpaced by inflation at its peak. Even when inflation started moderating later in 2024, cash savers had already seen their purchasing power erode during the high inflation period.
This disparity highlights a key issue—headline interest rates can appear attractive but often fail to protect against the corrosive impact of inflation. Over-reliance
on cash as a long-term financial strategy risks leaving savers worse off. Striking a balance between maintaining easily accessible emergency funds in cash and pursuing long-term growth through diversified investments is essential for achieving financial stability and building future wealth.
Long-term growth makes the case for investing
Investing is fundamentally about generating long-term benefits, with the added advantage of tax efficiencies. Regularly attempting to buy and sell based on market fluctuations, particularly given the reduction of Capital Gains Tax (CGT) annual allowances from £12,300 to just £3,000, has brought complexities. Frequent trades may expose you to unexpected tax consequences and result in missed opportunities.
What markets do today, tomorrow, or over the next year should matter less if your focus is on long- term investment goals. Successful investing is not about riding every peak and valley in the market but ensuring your financial plan aligns with your life circumstances and aspirations.
Building a strategy tailored to you
Investing isn’t a one-size-fitsall approach. It requires careful planning, starting with a deep understanding of your short-, medium-, and long-term financial goals. We work to create bespoke strategies based on your unique circumstances and aspirations.
One of the most essential principles of investing is staying the course. Remaining invested over the long haul and diversifying your holdings across sectors and geographical areas can help cushion the impact of market volatility and better position your portfolio for growth.
Your hardearned money deserves to be preserved, and you might think the safest move is to keep it in cash.
David Brennan
Chief Investment Officer & Senior Financial Planner
Is it time to craft a tailored strategy that suits your individual goals?
If you’re interested in learning more about long-term investing and how it can benefit your financial future, we’re here to help. Get in touch today to explore how our expertise can help you craft a tailored strategy that suits your individual goals. Your financial future starts with making informed, confident decisions. Let’s make those decisions together.
Sixty-five per cent of pension funds recently surveyed by the Pensions and Lifetime Savings Association (PLSA) have established a commitment to achieving net zero carbon emissions. Progress appears on the horizon for the third of funds without a current commitment, as one in five (22%) anticipate adopting a net zero target within the next five years.
Among the schemes committed to net zero, nearly a quarter (23%) aim to reach this ambitious goal by 2040. Meanwhile, a majority (44%) are set on achieving net zero between 2040 and 2050. While these timelines may seem promising, the road to net zero has significant obstacles.
The survey pinpoints several barriers threatening pension funds’ progress toward their net zero goals. Chief among them is the lack of high-quality data, cited by 59% of respondents as a key issue. This is compounded by uncertainty around future government policies, which concerns 55% of those surveyed.
Adding to the complexities, a third of participants identified regulatory ambiguity and limited investment opportunities in lowcarbon assets (35%) as serious impediments. These roadblocks underscore the pressing need for systemic changes to enable funds
to take more decisive action.
Turning
Despite these obstacles, many pension funds actively implement strategies to meet climate objectives. Notably, 90% of those with net zero commitments work directly with companies to reduce emissions. Investment in renewable energy is also a high priority, with 80% of respondents backing this.
Other notable initiatives include improving energy efficiency in real estate portfolios, an area pursued by 53% of respondents, and divesting from high-carbon assets, a move embraced by 41%. These actions demonstrate a willingness across
the sector to tackle the crisis head-on, albeit with challenges remaining.
A broader call for strategic plans
An encouraging 76% of survey participants strongly supported the development of credible transition plans. These plans, aligned with the Paris Agreement’s 1.5°C target, are critical to realising long-term climate goals. While progress in addressing climate issues is tangible, a new focus is emerging on biodiversity and naturerelated risks.
However, awareness of biodiversity-related frameworks still needs to be improved. Only 17% of respondents
Among the schemes committed to net zero, nearly a quarter (23%) aim to reach this ambitious goal by 2040.
reported being well-versed in the recommendations of the Taskforce on Nature- related Financial Disclosures (TNFD). This knowledge gap underlines the importance of frameworks such as the Kunming-Montreal Global Biodiversity Framework and TNFD in guiding organisations forward. Tackling the links between biodiversity and investments
Addressing biodiversity challenges adds another layer of complexity. The survey highlights barriers such as establishing measurable biodiversity targets, which 77% of respondents find difficult.
Similarly, understanding and assessing biodiversity-related risks proves challenging for 68%
of pension funds. Nonetheless, there is optimism. Some 73% of organisations planning to adopt the TNFD’s recommendations aim to do so within five years, signalling a growing commitment to integrating biodiversity into financial decision-making. This progress mirrors the gradual but determined pace of climate action within the pensions sector.
The findings emphasise the need for clearer frameworks, improved availability of actionable data, and more substantial governmental support to overcome barriers. While strides have been made in tackling climate-related agendas,
biodiversity efforts lag behind and require urgent attention to bridge this growing divide.
Pension funds are pivotal in driving environmental sustainability through their significant influence on investments. As the march towards net zero and broader ecological goals continues, stakeholders across the financial landscape must collaborate, innovate, and align on these key issues.
Chris Lomas Director of Financial Planning
to
Contact us today if you are seeking to deepen your knowledge of these issues or understand how to integrate net zero and biodiversity goals into financial strategies. Together, we can shape a sustainable future. We look forward to hearing from you.
In this interview, Ben Cooper – Head of Asset Management Partnerships, IFA and Wealth, SEI –speaks to Radiant Asset Management (RAM)’s Minesh Gajjar about what makes a good investment partnership, and what this means for clients.
• SEI has acted as Radiant’s investment partner since 2022.
• SEI’s value is 30+ years’ experience managing money across the globe for large institutions.
• Our partnership is designed to improve the likelihood investors achieve real world objectives.
Minesh Gajjar (MG): I wonder if we could start by setting the scene for our readers… who is SEI? And how did SEI come to work with Radiant Asset Management (RAM)?
Ben Cooper (BC): Let me start by saying that if you haven’t heard of SEI, you’re not alone—and that’s perfectly understandable. Whilst we’ve been providing top-tier investment management services in the UK for over 25 years, much of our work happens behind the scenes. We specialise in supporting other businesses, like Radiant to manage wealth.
Despite our low profile, we are one of the world’s leading institutional investment managers, entrusted with managing nearly £400 billion. Our clients include the employee pension funds of some of the most
recognised global companies. So, even if SEI is new to you, you can be confident that you’re in excellent company when you choose to invest through this partnership.
Which brings me to your second question; how did SEI come to work with RAM? Well, I think RAM’s client-first approach aligns with our own, and this is one of the most important reasons for the SEI/RAM partnership. Ultimately, we share the same purpose.
Here’s how it works: SEI provides sophisticated, academically proven investment processes and access to world-class fund managers that we’ve developed for large institutions across the globe. RAM takes this, combines it with their own expertise and insights then
tailors it into strategies that fit the real-world needs of Radiant’s clients. Whether you’re a young couple planning for their first home, parents saving for their child’s university fees, or retirees nurturing a secure income for their golden years, this partnership is about turning your financial goals into reality.
MG: I think before working with SEI, what our clients wanted, and what our investment products stood to deliver, were sometimes two different things. Being able to address that issue head-on has been one of the best things about the SEI/RAM partnership.
BC: Absolutely, collaboration has been key. One thing I remember about the initial conversations with you and your team is just
how open you were to discussing your vision and, the challenges you were facing. In many ways, that openness is the reason we are where we are today. That, and the opportunity we had as a partnership to create more value for investors.
MG: Could you expand further on that last point please?
BC: Of course. We’ve already touched on our shared purpose— building investment solutions that meet client needs. But here’s an important distinction: SEI doesn’t work directly with individual investors or employ financial advisers. Instead, we focus on partnering with firms like RAM, who have those trusted relationships with investors and, critically, the insights to understand what’s most important to them.
By collaborating, a partner like RAM is able to tailor our investment expertise to meet the specific needs of their clients. This is where many investment businesses fall short—they rely on a “one-size-fits-all” approach. Something I know you and I agree on is that people can have varied investment goals, maybe multiple goals. Equally, not everyone thinks about risk and success in the same way. Maybe a “one-size-fits-all” approach to investing wouldn’t deliver what every client needs, all the time. Therefore, through this partnership, we saw an opportunity to do things differently. Together, we created something different— investment strategies that resonate with clients because they address their real priorities, from stability to long-term growth. That’s likely why your portfolios are so successful.
MG: We didn’t want to replicate the success of others, we wanted to forge our own path…
BC: I have to say, that’s one of the things I admire most about RAM. You’re always pushing boundaries and looking for new ways to
innovate. That kind of forwardthinking mindset is exactly what we look for in a partner, and it’s going to be even more important in the years ahead.
Take financial advice, for example. More and more clients are seeking tailored solutions that reflect their unique goals and circumstances.
This shift is being driven, in part, by the transfer of wealth from one generation to the next. Parents and grandparents want to ensure their hard-earned wealth benefits their families in meaningful ways, and younger generations are looking for guidance that fits their lifestyles and values.
This trend is only going to grow over the next decade. For advisers, it’s a wake-up call. Those who can adapt—by rethinking how they deliver value and finding ways to scale their services—will thrive.
But those who stick to the old ways of doing things risk being left behind.
MG: I think what stands out most is how much of this partnership is about moving the needle—not just for RAM and SEI, but for the clients who rely on us to help them achieve their goals.
What excites you most about where we’re heading together?
BC: I think what excites me most is the potential we have to keep evolving. The way we’re combining RAM’s deep understanding of its clients with SEI’s expertise gives us the tools to meet people where they are, no matter how the world changes. It’s not just about keeping up—it’s about staying ahead in a way that’s meaningful for the people we serve.
MG: It’s not just about innovation for its own sake, but making sure every step forward has a purpose. Thanks so much, Ben, for sharing your thoughts—and for being such a great partner in this journey.
By collaborating, a partner like RAM is able to tailor our investment expertise to meet the specific needs of their clients.
in any jurisdiction. Our outlook contains forward-looking statements that are judgments based upon our current assumptions, beliefs and expectations. If any of the factors underlying our current assumptions, beliefs or expectations change, our statements as to potential future events or outcomes may be incorrect. We undertake no obligation to update our forward-looking statements.
As a first-time buyer, you will have unique motivations for deciding between a new build or an older property when buying your first home. Ultimately, finding a home that suits your lifestyle and needs is the key. As a first-time buyer, you must carefully contemplate what you want in a property.
Visiting examples of new and older homes is important to gaining a realistic perspective.
Choosing between a new and an old home can be challenging for prospective homeowners. Both properties have unique charms and features that could cater to different preferences. Age might seem trivial to consider when buying a home, but it’s more significant than many realise. From construction techniques to design trends, the age of a house can tell you much about its characteristics.
New homes often boast modern designs, energyefficient features and upto-date technology. They’re typically built according to the latest building codes and standards, which could mean better safety and comfort.
On the other hand, old
homes have a unique charm and character that’s hard to replicate. They often feature classic architecture, detailed craftsmanship and mature landscaping. However, they might lack some of the modern conveniences in newer homes.
The construction methods and materials used in a home vary significantly depending on age. Older homes were often built with traditional methods and materials, which can contribute to their unique aesthetic appeal. However, these homes may require more maintenance and repairs compared to newer homes.
New homes are usually constructed using modern methods and materials, which can offer improved durability and efficiency. However, they might not have the same level of character and charm as older homes.
Predominantly, existing properties are nestled within mature neighbourhoods. This
presents an opportunity to familiarise yourself with your neighbours even before moving in. Established areas often have active community groups, ensuring resident safety and wellbeing.
Additionally, they frequently boast various local amenities, such as shops and restaurants, a luxury not always afforded by new builds, which are often constructed on vacant, undeveloped plots.
Older properties come with a sense of character and a unique history that you’ll seamlessly blend into. Whether you’re intrigued by the previous owner’s gardening prowess or captivated by the charm of an older house with period features, the opportunity to add your personal touch is enticing.
As a first-time buyer, you may want to personalise your new home, and older properties provide ample scope for adaptation, including significant renovations.
With an existing property, what you see is what you get.
If you’ve diligently conducted a home survey, scrutinised the Energy Performance Certificate (EPC), and are satisfied with the findings, you can confidently place your bid. This assurance may not be as strong when you opt for an off- plan purchase.
For existing properties, the purchase price is open to negotiation between the buyer and seller. The final mutually agreed price may be influenced by market demand, the property’s condition as revealed by the survey and the seller’s eagerness to relocate. While older properties are more likely to uncover issues in your survey – a potential disadvantage – this does offer first-time buyers additional room for negotiation.
Why choose a new build property?
When deciding on your first home, a newly built property offers the enticing prospect of personalisation. With no existing decor to contend with, you’re free to instil your unique
style into every corner of your home.
Whether it’s selecting the perfect tiles or choosing the latest appliances, your home will be an authentic reflection of your tastes. It’s worth noting, however, that new builds often need time to ‘breathe’, so be prepared to wait before hanging pictures or adding a splash of paint.
Avoiding a moving chain is another significant advantage of buying a brand-new home. You won’t have to worry about the stress and unpredictability of a property purchase falling through due to chain issues. Plus, there’s zero chance of gazumping or dealing with previous owners’ personal issues. Remember, though, that construction delays could affect your move-in date.
High-spec living and community building
New builds are synonymous with high-quality materials and modern appliances, often surpassing the specifications of older properties. These homes adhere to the latest building regulations, ensuring top-notch heating systems and insulation. This feature especially appeals to first-time buyers keen to avoid DIY and maintenance
costs and enjoy their new home.
Opting for a brand-new home also means becoming part of a burgeoning community. Instead of integrating into an established neighbourhood, you’ll have the chance to form new friendships and share experiences with other firsttime buyers in your area.
New-build properties are lauded for their energy efficiency, reportedly being six times more efficient than older homes. Such a home can reduce household carbon dioxide emissions by around 60%. This environmental friendliness can translate into substantial annual savings on your energy bills.
About 80% of new builds come with an NHBC ten-year warranty, providing you with assurance against potential issues. The NHBC sets the standards for new and newly converted homes, offering warranty and insurance coverage to ensure your new home’s quality.
Despite the appeal of new builds, existing properties can offer lower house values, enabling first- time buyers to step onto the property ladder. When choosing a property, carefully considering your current needs and future desires is crucial.
Alan
Holmes Head of Mortgages
Older properties come with a sense of character and a unique history that you’ll seamlessly blend into.
Many people prefer to avoid the subject of long-term care. Most find it hard to contemplate going into a care home when they are older, but many will do so eventually. However, planning for these potential expenses is important before they become urgent. The NHS, while a cornerstone of healthcare in the UK, only covers care costs in specific circumstances, primarily when related to medical health needs.
NHS Continuing Health Care (CHC) might cover some or all expenses, but securing this funding can be complex and challenging, especially during stressful times. Despite it seeming evident that certain conditions, such as dementia, require medical care, they are often classified as social care, which typically falls outside NHS funding.
If NHS funding isn’t an option, you can explore alternatives, often involving personal financial contributions. The rules for providing long-term care are complex, and different rules apply in England and Northern Ireland, Scotland and Wales.
In England you’ll currently undergo a means test. If your assets exceed £23,250, you’ll need to cover the full cost of your care. With assets between the £14,250 and £23,250 tariff limit, the local authority may contribute, but you’ll still be responsible for a portion of the costs. Your income is still considered if your assets are below £14,250, but capital is excluded from means testing and the local authority pays for your care.
In Scotland, the upper limit is over £35,000, and you’ll need to pay the full cost of your care. The local authority funds some of the
care between the £21,500 and £35,000 tariff limit, and you pay the rest. The lower limit is less than £21,500, capital is excluded from the means test and the local authority pays for your care. However, your income is still taken into account.
In Wales, the single limit is £50,000 and over. Above this figure, you pay the full cost of your care.
Capital amounts between the upper and lower limits tariff for England and Northern Ireland, and Scotland are assessed as providing £1 of additional income for every £250 of capital above the lower limit. The tariff income is then added to your other income for the income means test.
A common misconception is that selling your home is mandatory to fund care costs. This isn’t necessarily true; if you or close family members live in your home, it’s generally safeguarded from being counted in your financial assessment.
However, if your property is left empty when you move into a care home, it might be considered part of your assets, potentially necessitating its sale to cover costs. Gifting assets to avoid care expenses can also be problematic. Local authorities might view this as a ‘deliberate deprivation of assets’, which can complicate financial assessments significantly, especially if done during a time when care costs are foreseeable.
The unpredictability of needing long-term care makes it essential to start planning early. While it’s impossible
to predict the exact costs or duration of care, cash flow modelling can provide insight into how prepared you are for such expenses. Government policies may change, but assuming ‘no change’ and preparing accordingly is prudent. Exploring different solutions now can alleviate future burdens.
Long-term care planning is one of the most challenging areas to address, with many in denial about their potential needs. However, taking proactive steps can ensure you or your loved ones receive the care required without financial hardship. From insurance products to savings strategies, numerous options can be tailored to your circumstances to provide peace of mind.
Louise Spencer Financial Planner
Need guidance or wish to explore financial strategies in more detail?
Understanding the complexities of long-term care costs and planning accordingly is vital. If you need guidance or wish to explore financial strategies in more detail, we are here to help. Contact us today to discuss your personal circumstances or those of a family member, ensuring you have a solid plan for later life care.
However, taking proactive steps can ensure you or your loved ones receive the care required without financial hardship.
Pensioners set for income boost, but watch out for the tax trap
Many pensioners will enjoy another uplift in their state pension income next financial year. From 6 April 2025, the state pension is due to rise by 4.1%, on the back of an 8.5% increase in April 2023. This growth adheres to the government’s ‘triple lock’ policy, which ensures that the state pension increases annually by the highest of wage growth, inflation, or 2.5%. However, this rise also brings potential complications for some retirees.
The increase will elevate the full new state pension from £11,502 in the 2024/2025 tax year to £11,976 in 2025/2026. While this rise will be welcome for many, the frozen income tax personal allowance, held steady at £12,570 until April 2028, could be a pitfall for pensioners with additional income sources. It could result in losing out on taxfree allowances for other income, like savings or rental profits, and create unexpected tax liabilities.
For those who rely solely on their state pension, no tax is payable if their income stays within the personal allowance. However, pensioners with extra income, such as private pensions, annuities, or rental income, will need to monitor their earnings closely. Once the total exceeds the £12,570 threshold, any income above this limit becomes taxable.
The scenario could worsen in years to come. If the state pension increases by two annual 2.5% hikes after 2025, it could surpass the income tax personal allowance within the 2027/2028 tax year. As a result, many retirees may find themselves paying income tax on their entire state pension sooner than expected.
The basic tax rate for 2024/2025 is set at 20% for income
above the personal allowance, up to £50,270. Any income beyond that is taxed at the higher rate of 40%, while earnings above £125,140 incur an additional rate of 45%. These thresholds apply to most parts of the UK, though Scottish taxpayers face different tax rates and bands.
Fortunately, there are strategies to help retirees manage their tax liabilities. For instance, basic-rate taxpayers benefit from a personal savings allowance of up to £1,000 in 2024/2025, while higher-rate taxpayers have a reduced allowance of £500. The ‘starting rate’ band for savings income also allows those with low overall taxable income to earn up to £5,000 in savings income tax-free.
Even modest tax savings can make a significant difference over the long term. Dividend income, for example, enjoys its own allowance, which lets investors receive £500 tax-free in 2024/2025. Although this figure has been reduced from £1,000 in the previous tax year, it still provides an opportunity to shelter some earnings.
Tax-efficient vehicles, such as Individual Savings Accounts (ISAs), can also play a critical role in retirement planning. By investing in a Cash ISA or a Stocks & Shares ISA, pensioners can enjoy income and capital gains free from taxation, allowing their savings to grow unrestricted. National Savings and Investments (NS&I) also offers tax-free products like Premium Bonds, which combine strong security with the potential for large, tax-free cash prizes.
Managing pension income and withdrawal strategy
Accessing private pensions requires careful planning to avoid unnecessary tax burdens. Retirees can withdraw 25% of their pension pot tax-free, but it’s wise to spread taxable income over multiple years to
remain in a lower tax band. For example, withdrawing smaller amounts across several tax years can prevent triggering higher tax rates.
Stocks & Shares ISAs remain a valuable tool for income supplementation. Unlike pensions, withdrawing money from an ISA doesn’t incur additional tax, making it a highly flexible option for retirees looking to bridge income gaps or support long-term needs.
Deciding when to claim the state pension is another critical choice. Deferring receipt can increase the eventual payout, which may be especially beneficial for those still working or expecting reduced income later in life. However, the decision depends on factors like life expectancy and projected financial needs.
For those in a marital or registered civil partnership, income-splitting can be a smart move. Allocating assets or investments to the lower-earning partner can reduce overall tax liability. Additionally, matching asset types to accounts – such as using ISAs for dividend-yielding investments – can maximise tax efficiency in retirement.
Effective financial planning can help pensioners fully utilise their allowances and options. Proactive steps, such as reducing taxable income with ISAs or leveraging allowances for savings and dividends, can make a substantial difference. Understanding your situation and adjusting your strategy regularly is essential for avoiding potential tax pitfalls.
Even modest tax savings can make a significant difference over the long term.
Is
it time to
discuss taking a tailored advice approach to your retirement?
Navigating the complexities of retirement income and tax planning isn’t always straightforward. If you require further information on managing your finances or assistance with specific queries, don’t hesitate to contact us. We’ll provide tailored financial advice to ensure you get the most from your retirement and minimise your tax liabilities.
Winter transforms European cities into enchanting wonderlands, where cobblestone streets sparkle with fairy lights, markets burst with festive cheer, and historic landmarks gain a new, frosted charm. Whether you’re after snow-dusted scenery, cosy cafés, or unique cultural experiences, a European winter city break has something to offer everyone.
From iconic capitals to hidden gems, Europe offers endless possibilities for those seeking a getaway during the colder months. Here’s a guide to some of the most magical destinations, must- try activities, and essential travel tips to help you make the most of a winter escape.
Discover enchanting destinations
Prague, known as the ‘City of a Hundred Spires’, is majestic at any time of the year, but its winter allure is unmatched. The Charles Bridge, framed by snow,
and the Gothic towers rising above Old Town Square create a setting straight out of a fairy tale. Don’t miss the Christmas markets, where you can sample mulled wine and traditional Czech treats.
Further north, Stockholm is a winter haven for those who appreciate design and nature. Stroll through Gamla Stan, the city’s historic district, adorned with festive lights, and experience fika—a Swedish tradition of enjoying coffee and pastries. Ice skating and exploring the Vasa Museum are perfect ways to explore this icy Nordic gem.
For those seeking a mix of history and romance, Vienna offers a cultural haven. The stunning Schönbrunn Palace, lit up in golden hues, provides a magical backdrop to winter evenings, while the city’s renowned opera season is in full
swing. Warm yourself up with a slice of Sachertorte or a mug of Viennese hot chocolate.
If you’re an adventurer, head to Salzburg where the Alps beckon with opportunities for skiing or snowboarding. The birthplace of Mozart also embraces its musical heritage with winter concerts and festivals. Be sure to take a horsedrawn sleigh ride through the snow-covered countryside for an unforgettable experience.
European winters can bring unpredictable weather, so layering is a must. Pack warm essentials such as waterproof boots and thick coats, but leave room for stylish scarves and knitwear to blend in with the chic locals. Stay comfortable while exploring by wearing thermal layers and gloves.
When booking a winter city break, flexibility can save both time and money. Travelling in
January or February often means fewer crowds and lower costs compared to December’s holiday rush. Consider using public transport or walking to soak in the cities’ charm.
The charm of a European winter city break is something truly unique. Each destination offers its own mix of history, culture, and festive spirit, providing a perfect getaway from the pace of everyday life. Whether you prefer discovering snow-covered tourist spots or enjoying culinary delights in cosy settings, Europe in winter has a dreamlike quality.
With a little preparation and an adventurous spirit, you can create memories that’ll warm your heart long after the season has passed. Why not begin planning your winter city break today? You’re sure to find beauty, warmth, and wonder wherever your travels take you.
From iconic capitals to hidden gems, Europe offers endless possibilities for those seeking a getaway during the colder months.