Insights

As the 2024/25 tax year ends, get your finances in order and maximise your investments. Key Autumn Budget updates: IHT thresholds frozen until 2030, CGT rates have increased, and ISA and JISA limits remain the same until April 2030.

As the 2024/25 tax year ends, get your finances in order and maximise your investments. Key Autumn Budget updates: IHT thresholds frozen until 2030, CGT rates have increased, and ISA and JISA limits remain the same until April 2030.

Financial procrastination—delaying financial tasks—can harm your finances and health. Common signs include overwhelm, fear of mistakes, and unclear goals. Combat it with expert advice, clear planning, and proactive steps to take control and achieve financial stability.

Many wealthy individuals avoid discussing finances, fearing family conflict, leading to inheritance misunderstandings. Generational differences and financial pressures, especially in regions like London, contribute to tensions. Open, honest conversations about money can reduce stress and prevent future disappointments.

Social media investment advice is popular but risky, with many failing to verify sources. Unregulated financial influencers – or "finfluencers" - can promote scams or misinformation. Always ensure guidance comes from FCA-authorised professionals to protect your financial decisions.

A significant minority of over-55s are considering unretirement, with over a quarter planning to continue with some form of paid work after retiring. However, nearly two-thirds haven't checked the potential tax implications of doing so; their tax liability could increase if extra earnings take their income above the personal tax threshold or pushes them into a higher tax bracket. It's essential to understand these risks and seek financial advice to avoid the unretirement 'tax trap'.

A recent study has identified several distinct pension personality types, each with its own strengths and challenges. Procrastination Pete and Paula are the most common type, often overwhelmed by the complexities of pensions. This group is likely to make poor decisions, such as hastily withdrawing a 25% tax-free lump sum without a clear plan – potentially costing them thousands in future income. No matter your pension personality, strategic planning and professional advice are crucial for securing long-term financial security in retirement. 

Having a financial plan should go hand-in-hand with a conversation about insurance. Only 29% of UK adults have life insurance, and even fewer have critical illness or income protection, highlighting that a concerning number of Brits risk leaving themselves and their loved ones vulnerable during life’s toughest moments. Consider writing your life insurance policy into trust; under current rules the payout will not be subject to Inheritance Tax, plus your beneficiaries should receive the money swiftly as it will not have to go through probate.

Opening a JISA is a great financial priority to support long-term savings goals for the children in your family. Research has highlighted that women have led the way on opening JISAs every year since 2019. The number of JISAs women have opened in the last five years is up 128%, compared with an uptick of 101% by men. Scottish Friendly’s Jill Mackay, said “starting as soon as possible and just putting a little away into a stocks and shares JISA could build to be a substantial amount over time.”

In 2023, there were 4.2 million people in the UK’s solo self-employed sector but concerningly, 45% of freelancers are not saving into a pension. Employed people are auto-enrolled into a pension scheme by their workplace, but if you are freelance it is your responsibility. The sooner you start saving for retirement, the more you can grow your investment and benefit from tax relief on contributions (within limits). Start by deciding on a minimum monthly contribution that feels manageable for you.

If you want your investment portfolio to strike a good balance between risk and return, it’s worth knowing how correlation can impact your investments. Investing in highly correlated assets can increase your losses, because when one investment falls in value (except for a reason peculiar to it), the others may well do likewise. Diversification is key: owning a variety of investments that move differently can help limit risk and protect your overall portfolio's value. Many large funds, especially those heavily invested in tech stocks, may be more correlated than you think.