Whether you analysed the text in school or have watched the film, you’ll no doubt be familiar with the tantalising story of Jay Gatsby. 

Indeed, 100 years after The Great Gatsby was first published, it’s still synonymous with the hedonism of the Jazz Age in New York City in the 1920s, from lavish parties to opulent mansions. And a century later, there is an important money lesson you can learn from its pages.

On the surface, the obvious money lesson might seem like it’s how to build wealth. After all, Gatsby is a self-made millionaire living a lifestyle many people dream about.  

Yet, as the novel progresses, it becomes clear that Gatsby spends his money to show off his wealth and catch the attention of his lost love, socialite Daisy Buchanan. While Gatsby appears to have it all, he isn’t happy. 

So, what’s the lesson you could learn from The Great Gatsby? Accumulating wealth alone won’t bring you happiness; how you use it is essential. 

A financial plan focuses on what adds meaning to your life

When you think about financial goals, it’s easy to focus on wealth accumulation. You might have a set amount you’d like to see in your savings account or pension. 

Financial planning involves shifting your mindset. Instead, you focus on what your lifestyle goals are and then how your assets could help you achieve them. 

When you’re retirement planning, you might start by saying you want to retire when you’re 60. Then you may consider the lifestyle you want to enjoy in retirement – what’s most important to you? Spending time with family, travelling, or being part of a local club could all be essential to creating a fulfilling lifestyle. 

With your desired lifestyle set out, you can start to understand how much you might need to save in your pension. A financial plan can then identify the steps you might take now to turn it into a reality. 

So, unlike Gatsby, who believed simple wealth accumulation would lead to happiness, the focal point of your financial plan is what will make you happy and how your finances can support this. 

The people in your life are essential for happiness 

Starting in 1938, the Harvard Study of Adult Development has been tracking the happiness of hundreds of people to find out what they need for a good life. 

In February 2023, researchers analysed 85 years of data, and found that, while a one-size-fits-all answer isn’t possible, social connections were essential. Strong relationships were found to improve health and wellbeing.

When the first round of participants turned 80, after decades of being involved in the study, they were asked what they were most proud of. For both men and women, the proudest achievements focused on relationships, such as being a good parent, friend, or mentor.

A lack of meaningful social connections is important to Gatsby’s story. He’s regretful of a missed connection with Daisy, and he spends huge amounts to gain her attention. While hundreds of people flock to his opulent parties, his existence remains a lonely one. 

Bringing your important social connections into your financial plan could take many forms. You might:

• Gift assets to loved ones to improve their financial security
• Earmark money to spend on days out with your family or friends
• Dedicate some of your time in retirement to mentoring people in your local community
• Calculate if you could reduce your working hours or retire early to spend more time with your family.

So, rather than focusing on building wealth, starting your financial plan by answering this question could lead to a happier life: what do you want to spend your time doing, and who do you want to do it with?

A financial plan could help you make decisions based on happiness 

If you want to learn from the mistakes of Jay Gatsby, a financial plan could provide you with an opportunity to consider what makes you happy and how your wealth could support this. Whether that’s exploring the world with your partner, enjoying days out with your grandchildren, or supporting community projects, we could help you understand how to use your assets to create the life you want. 

Please get in touch to talk about your lifestyle goals and how you might achieve them. 

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Concerns around potential trade wars following President Trump’s inauguration weighed on investment markets in January 2025, but there was positive news too. Read on to discover some of the factors that may have affected the performance of your investments. 

Keep in mind that short-term market movements are part of investing and taking a long-term view is an important investment strategy for many people. 

UK

Headline figures were positive for the UK.

UK inflation fell to 2.5% in the 12 months to December 2024, data from the Office for National Statistics (ONS) shows. According to the Guardian, there’s a 74% chance the Bank of England (BoE) will cut interest rates in February as a result. 

The ONS also reported the UK economy returned to growth in November 2024, as GDP increased by 0.1%. While it’s only a small rise, it follows three months of stagnation.

What’s more, the International Monetary Fund expects the UK to grow by 1.6% in 2025 and be the third-strongest G7 economy in terms of growth. 

In encouraging news for the chancellor, at the World Economic Forum, PwC revealed that the UK is the second-most attractive country for investment, only falling behind the US. It marks the highest rank for the UK in the 28 years PwC has carried out the survey. 

Sharp rises in borrowing led to the UK bond market making headlines.

On 8 January, UK government debt hit its highest level since the 2008 financial crisis, just a day after 30-year bond yields were at the highest level since 1998. Bonds rising could lead to mortgage lenders increasing rates and could affect the value of pensions, particularly those who are nearing retirement and are more likely to hold bonds. 

Markets calmed down the following day but continued to experience ups and downs throughout January.

After the turmoil in the bond market, the FTSE 100 – an index of the 100 largest companies listed on the London Stock Exchange – was down 0.9% on 10 January. The biggest faller was financial group Schroders, which saw a dip of 4.3%. 

Yet, just weeks later, the FTSE 100 hit a record high and exceeded 8,500 points for the first time on 17 January. The boost of around 1% was linked to speculation that there would be several interest rate cuts this year thanks to falling inflation. 

However, many businesses still aren’t confident. 

According to the British Chambers of Commerce (BCC), confidence among British businesses fell to the lowest level since former prime minister Liz Truss’s mini-Budget in September 2022. The pessimism was linked to chancellor Rachel Reeves’s £40 billion tax increases, which have placed a large burden on businesses. The BCC survey suggests 55% of firms plan to raise prices as a result. 

Similarly, a survey from the BoE suggests more than half of UK firms plan to cut jobs or raise prices in response to employer National Insurance contributions increasing in April 2025.

The effects of the chancellor's Budget were also evident in S&P Global’s Purchasing Managers’ Index (PMI).

The index fell to an 11-month low in December and into contraction territory. Rob Dobson, director at S&P Global Market Intelligence, noted there were also sharp staffing cuts as some companies acted now to “restructure operations in advance of rises in employer National Insurance and minimum wage levels”. 

Europe

Data paints a gloomy picture for the eurozone. 

As expected, following an interest rate cut by the European Central Bank to boost the flagging economy, inflation across the eurozone increased. In the 12 months to December 2024, inflation was 2.4%. 

Germany – the largest economy in the bloc – reported GDP falling 0.2% in 2024 when compared to the previous year, and it follows a decline of 0.3% in 2023.

According to an index from sentix, the challenges Germany is facing are negatively affecting investor morale across the eurozone. Indeed, investor confidence fell to a one-year low at the start of 2025. Germany is set to hold a snap general election in February, which could ease some of the uncertainty investors are feeling. 

PMI figures from the Hamburg Commercial Bank fail to offer investors optimism. 

While the eurozone service sector improved, it was still in decline at the end of 2024. In addition, the construction sector continues to contract and new orders fell markedly, suggesting that a recovery isn’t on the horizon. 

US

Dominating the headlines in the US in January was the inauguration of Donald Trump, which took place on 20 January. Trump will serve a second term as US president and promised a “golden age” for America in his inaugural address.

In the first days of his presidency, Trump continued to make similar trade threats to those he made during his campaign. He suggested a 10% tariff on Chinese-made goods arriving in the US could be implemented as early as 1 February 2025. Trump also hinted that he was considering levies on imports from the EU, as well as a potential 25% tariff on the US’s two largest trading partners, Mexico and Canada. 

According to the US Bureau of Labor Statistics, inflation increased to 2.9% in the 12 months to December 2024, up from 2.7% a month earlier. The inflation data could mean the Federal Reserve is less likely to cut interest rates in the coming months.

Indeed, on 13 January, Wall Street fell when it opened as traders expect interest rates to remain where they are. 

Technology-focused index Nasdaq fell 1.3% and the S&P 500, which tracks the 500 largest companies listed on stock exchanges in the US, lost 0.8%. Pharmaceutical firm Moderna experienced the largest slump when share prices fell 24% after the company cut its outlook due to shrinking demand for its Covid-19 vaccine.  

Markets faced more turmoil on 27 January. The emergence of a low-cost Chinese AI model, DeepSeek, led to concerns about the sustainability of the US artificial intelligence boom.

According to Bloomberg, shares in US chipmaker Nvidia fell by 17% and erased $589 billion (£473 billion) from the company’s market capitalisation – the biggest in US stock market history.  

Other US technology giants saw share prices fall too. Microsoft, Meta Platforms and Alphabet, which is the parent company of Google, saw losses between 2.2% and 3.6%. AI server makers saw even sharper drops, with Dell Technologies and Super Micro Computer sliding by 7.2% and 8.9% respectively.

PMI data from S&P Global indicates business could pick up at the start of 2024. In fact, the service sector posted its biggest growth in output and new orders in December 2024 since May 2022. The jump was linked to firms anticipating more business-friendly policies under the Trump administration. 

Asia

Threats of trade tariffs from the US in 2025 meant Chinese manufacturers rushed to fill orders at the end of 2024. Indeed, exports increased by 10.7% in December 2024 when compared to a year earlier, according to official customs data. With exports outpacing imports, China’s trade surplus was just under $1 trillion (£0.8 trillion) in 2024.

China’s National Bureau of Statistics also reported the economy hit its official target of growing by 5% in 2024. 

Chinese manufacturer BYD could be on track to overtake US technology giant Tesla this year. BYD revealed it sold 1.76 million battery electric cars in 2024 falling only behind Elon Musk’s company, which sold 1.79 million. In fact, when including hybrid vehicles, BYD surpassed Tesla. 

However, the new year didn’t start positively in the Chinese stock market. On 2 January, weak manufacturing data contributed to a sell-off of Chinese stock. The Chinese Stock Exchange fell by 2.7%, and the Chinese yuan also fell to a 14-month low against the US dollar. 

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Getting older unfortunately might mean getting used to new limitations.

However, making healthy lifestyle changes can improve your quality of life no matter what age you start at.

So, instead of staying stuck in your ways, read on to discover five easy steps you can take to improve your health later in life.

1. Improve your sleep hygiene

Adults should have between seven and nine hours of sleep every night. If you’re lacking in this department – whether you are sleeping too much, too little, or are struggling with poor quality sleep – then you are at higher risk of problems like obesity and heart disease.

Thankfully, it may be possible to improve your sleep hygiene in a few steps.

First, it’s important to address anything that is interrupting your sleep. Investing in ear plugs to block out noise or blackout curtains to stop light from waking you up can aid you in getting the deep sleep you need without interruptions.

If you haven’t already, it is also vital to train your circadian rhythm. You can do this by waking up and going to sleep at the same time every day, including on the weekends, so you fall asleep faster and wake up feeling refreshed and ready to face the day.

2. Keep moving

Exercise might be the last thing you want to face with aching bones and less energy, especially if you haven’t been active in a while. 

However, even light activity – such as a daily walk – can have fantastic benefits for your mental and physical health.

If you haven’t exercised recently, it’s important to build up your activity levels slowly. Start with shorter and lower intensity workouts, and increase them gradually as you build up your strength and endurance.

Finding an exercise you enjoy could be vital for forming a new habit too. From yoga to dancing to cycling, there is something for everyone if you search hard enough, whether you want to exercise on your own or as a group.

3. Stop smoking

If you’ve been smoking for a long time, you might find the habit harder to kick than other people or wonder what the point is in quitting so late in life.

You might be surprised to discover the health benefits of quitting smoking could improve your quality of life within a few weeks.

The NHS found within a few days of quitting, your sense of smell and taste will improve and you will be able to breathe easier.

After a few weeks or months, you will have extra energy and improved lung function, reducing the symptoms of any cough, wheezing, or other breathing problems you might be facing. And after only one year, your risk of a heart attack halves compared to someone who smokes.

4. Connect with your family and friends

As you get older, you might find it more difficult to regularly meet up with your friends and family, which puts you at a higher risk for social isolation.

Unfortunately, loneliness can have a terrible impact on your mental and physical health, increasing your risk of issues such as:

• Anxiety
• Depression
• Dementia
• High blood pressure
• Weakened immune function
• Heart disease
• Obesity

Luckily, there are lots of things you can do to combat social isolation.

New technology offers us more ways to stay connected than ever. Video calls or using devices such as smart speakers can help you stay in touch with your loved ones when you’re not able to travel to see them in person. 

Of course, in-person social interaction is important too. So, make time to meet up with loved ones and discover ways to meet new people, such as joining a local club or attending events.

5. Challenge your brain

Many people who are worried about their memory later in life turn to brain training exercises such as jigsaws, sudokus, or crosswords.

While these puzzles can help to keep your thinking sharp, there isn’t any conclusive evidence to suggest they can prevent cognitive decline as you get older or prevent diseases such as dementia.

However, a study discovered that challenging your brain by taking part in new experiences could help you maintain and improve your thinking skills.

The researchers encouraged their participants to learn a completely new skill – either digital photography or quilting – and found that they experienced benefits to their memory performance.

Taking up a new skill or challenging yourself to do something different also offers you the opportunity to engage more with the people around you and really make the most of your life too.

For many pensioners, the State Pension provides a foundation to build their retirement income. Whether you’re already claiming the State Pension or it’s still some years away, here’s what you need to know in 2025/26. 

In the 2025/26 tax year, you can claim the State Pension from the age of 66. However, the age will gradually start to increase from 6 May 2026 to 67, and it’s expected to rise further in the future. 

You won’t automatically receive the State Pension when you reach this age – you need to claim it. You should receive a letter a few months before you reach the State Pension Age and then you can apply online.

In some cases, you might decide to defer claiming the State Pension. For example, if you’re still in work and the State Pension income could push you into a higher tax bracket, you may delay claiming it. If you choose to do this, you’ll receive a higher income from the State Pension. 

The full new State Pension will provide a weekly income of £230.25 in 2025/26

How much you could receive from the State Pension is based on your National Insurance contributions (NICs) during your working life.

To be eligible for the full new State Pension, you will usually need to have 35 qualifying years on your National Insurance (NI) record. Qualifying years may include periods where you’re working and paying NICs or you may be entitled to NI credits if you’re unemployed, ill, a parent, or a carer. 

If you have between 10 and 35 qualifying years on your NI record, you’ll normally receive a portion of the new full State Pension. So, it’s important to be aware of your NI record before you reach State Pension Age so you can accurately forecast how much you’ll receive.

One of the reasons the State Pension is valuable is that it increases each tax year. As the cost of goods and services typically rises, this could help to preserve your spending power in retirement.

Under the triple lock, the State Pension increases by the highest of the following three measures:

• Inflation
• Wage growth
• 2.5%

For the 2025/26 tax year, the triple lock means pensioners who receive the full new State Pension will benefit from a 4.1% boost to their income taking it to £230.25 a week, or around £11,970 a year. 

Understanding when you could claim the State Pension and how much you might receive is often important for creating a financial plan that suits your goals. You can use the government’s State Pension forecast tool, but keep in mind both the State Pension Age and how the income is calculated could change in the future. 

Filling in National Insurance gaps could boost your State Pension income 

As your NI record affects your State Pension income, you might benefit from filling in gaps if you don’t have the 35 qualifying years you need to receive the full amount.

So, if you’ve taken a career break in the past, you may benefit from checking your NI record now. The cost of buying a full NI year is usually £824 but may vary depending on the year you’re topping up and your circumstances. If you paid NI for a portion of the year you’re topping up, the cost will typically be lower.

Before you fill in any gaps, consider your long-term plans. In some cases, it won’t make financial sense to fill in the gaps. For example, if retirement is still several years away, you might eventually have enough qualifying NI years without making voluntary payments. 

You only have until 5 April 2025 to voluntarily buy missing NI years between 2006 and 2016. After this date, you’ll only be able to fill in gaps from the last six tax years. 

The State Pension could form a foundation for your retirement income 

While the full State Pension might not provide enough income to retire comfortably on, even after the 2025/26 increase, it may be a useful foundation to build on. 

Having a reliable income could offer peace of mind and mean you’re confident that you can pay for essential outgoings.

Many retirees will use other assets, from workplace pensions to savings and investments to supplement the income the State Pension delivers. Bringing together these different income streams in a retirement plan could help you understand how to create a sustainable income that meets your needs. 

Contact us to talk about your retirement income

If you have questions about how to create an income in retirement to supplement your State Pension, please get in touch. We could help you manage your pension, whether you’re ready to start making withdrawals or plan to continue working for several years. 

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.  

Levels and bases of, and reliefs from, taxation are subject to change and their value will depend upon personal circumstances. Taxation and pension legislation may change in the future.