With two major budgets and a change of government, we’ve all faced challenges this year to keep our financial futures on track.
For those approaching big life events, like retirement, navigating the changing landscape can be difficult. Many have turned to professionals for help.
Here are the most popular questions that clients have been asking our financial advisers this year.
While some of the content in this article might resonate with you, it’s not personal advice. If you’d like a recommendation on what’s right for your circumstances, ask for financial advice.
Investments can rise as well as fall in value, so you could get back less than you invest. The HL advice service is offered by our sister company, HL Advisory Services.
What should I do about the 2024 Autumn Budget?
Rumours were swirling ahead of the Autumn Budget, with big changes to pensions expected.
In the end, the main announcement was plans to bring pensions into a person’s estate for inheritance tax purposes, from April 2027.
While this is still a decision which will impact thousands of people’s retirement strategy, it wasn’t as bad as feared.
Rumours of cutting the amount of tax-free cash that could be taken when accessing pensions thankfully didn’t materialise.
Both the rumours and the aftermath of the Budget caused quite a lot of concern for our clients. Before the Budget, we had lots of contact from clients asking whether they should take their tax-free cash now or wait. And after the event, clients with larger pensions were now assessing the inheritance tax implications and wanting to revisit their income strategy.
These announcements really show the value in having an ongoing relationship with an adviser. We’ll stay up to date with changes in tax and the regulatory landscape over the years and keep your financial plans on track.
How do I plan for my retirement?
Planning for your retirement can involve making some of the most important financial decisions of your life. This is typically a common question clients ask us, and this year was no different – after all, 2024 has thrown up lots of challenges for those planning their life after work.
Within this topic there are lots of tactical questions like ‘how do I take money from my pension’ and ‘when can I afford to retire’.
As advisers, we look at things holistically – considering all sources of income, probing things the client hadn’t thought about and ultimately the outcome they want.
We’ll consider how to structure a portfolio through retirement, options around taking pension benefits and choosing the right investments.
We’ll also put together a cash flow model, which shows you how much money you could have in the future and when you’ll need to access it at various stages of your life.
All of this will give you a comprehensive plan, so you can retire with confidence.
How do I sort all our finances out after the death of a relative?
This is a common topic with more elderly clients, but can also regularly come through family members. It’s especially important where one person manages financial affairs.
Another common question along these lines is ‘how will pension benefits be decided when I die’ – often people assume it will be covered by a Will and not realise it can carry on as a pension.
As advisers we can provide invaluable support to you or your loved ones, and put in place a plan to secure their own financial future. It really is a case of starting to plan early. The sooner you start, the more options you have available.
Do my investments make sense?
We hear this a lot from people who’ve been very disciplined adding money to their portfolios but have no wider strategy.
It’s common for people to focus so hard on the investment selection that they forget to look at the bigger picture and what the investments are actually there for.
Having a plan is what clients tell us helps them sleep at night. So as advisers, we always focus on this first, before looking at the right investments to meet them. It gives you a ‘north star’ to stay focused on, which can guide any future investment decisions.
If you need help to get your own financial future on track, or you simply don’t have time to do it yourself, our expert financial advisers like Rob and Didi can help.
They’ll spend time getting to know you and your financial goals, before producing personalised recommendations to help you achieve them.
It all starts with a call to our advisory team.
While you won’t get advice on this initial call, it’s an opportunity to learn more about the service, including charges. If you’d like to continue, they’ll then put you in touch with an adviser.
The government’s free and impartial PensionWise service can offer guidance on retirement options for people aged 50 and over.
