If you want to help younger generations, passing on this pearl of wisdom could be key – start saving for your future as soon as possible. 

Many people think about their legacy when setting out their long-term goals. You may have considered gifting during your lifetime or how you’d like assets to be distributed after you pass away. One area you might have overlooked is the positive effect your financial insights could have.

Your knowledge could have a huge effect on the long-term finances of your loved ones. 

Indeed, a February 2025 survey from Aegon asked over-50s what they would tell their younger selves if they could time travel. Almost half of respondents said to “start saving as early as possible”.

In fact, the money tip ranked higher than “take care of your health”, “find a job you love”, and “spend more time with family”. 

A wealth transfer could give your loved ones a helping hand, but knowledge might be just as important. 

Long-term planning often plays an essential role in financial security 

When asked about the lifestyle choices they regret, the survey suggests many over-50s wish they’d considered long-term finances earlier. 

Respondents said they wish they knew more about how to invest and grow wealth (22%) and retirement planning (17%) at a younger age.

Research from Aviva published in March 2025 found a similar sentiment. Over-50s said they would tell their younger selves to:

• Clear debt (54%)
• Save an emergency fund (53%)
• Pay into a pension as soon as possible (52%). 

In addition, respondents said they’d encourage their younger selves to spend less on material items, like cars or designer labels. Instead, they’d prioritise experiences, including travelling the world, and creating a financial safety net. 

It’s not surprising that younger people are less likely to consider the long-term implications of their financial decisions. After all, it can seem like there’s plenty of time to think about retirement or other milestones. 

So, passing on what you’ve learnt about managing finances could be valuable. As well as sharing regrets, it’s a great opportunity to talk to your loved ones about the actions that have had a positive effect on your lifestyle, too. That might be putting a small amount of your income into savings each month, investing, or overpaying your mortgage. 

4 reasons to encourage your loved ones to start saving early 

1. It could help them form positive money habits 

Even if they don’t have financial goals right now, establishing positive money habits, such as setting out a budget, regularly contributing to a savings pot, or minimising debt, could lead to your loved ones laying a strong financial foundation. 

2. It’s impossible to know what’s around the corner 

Young people might be more likely to adopt a mindset of “it won’t happen to me”. It could mean they’re less compelled to put money aside for unexpected life events that could derail finances. 

Yet, financial shocks, like losing your job or being diagnosed with an illness, could affect you at any life stage. So, encouraging your loved ones to start saving as soon as they can could enable them to create a robust financial safety net.

3. They could benefit from the compounding effect 

Compounding is a powerful way to boost savings over time. Money placed in the bank will earn interest and, if it’s left untouched, the interest added will rise each time it’s calculated.

Imagine you place £1,000 in a savings account with a 5% annual interest rate. If you leave the interest earned in the account, your money would grow by:

• £50 to £1,050 in year one
• £52 to £1,102 in year two
• £56 to £1,158 in year three.

By year 10, the total amount in your savings account would be £1,628. 

The compounding effect may also apply to investing, including through an ISA or pension.

So, by starting as soon as possible, your family could benefit from years, or even decades, of the compounding effect. 

4. It could help them think about their life goals

Putting money to one side for the future could trigger your loved ones to consider what they want to achieve, from raising a family to starting a business.

Setting a direction might enable them to make better financial decisions that support their goals. 

Get in touch to make your loved ones part of your financial plan

If one of your goals is to support your loved ones, incorporating them into your financial plan may be useful. You might want to consider how gifts during your lifetime may help them reach their aspirations or create an estate plan that reflects this.

In addition, we could also work with your family members to build a tailored financial plan for them, which could help them balance short-term needs and long-term financial security.

Please get in touch to arrange a meeting with our team. 

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. 

A decade ago, the introduction of Pension Freedoms shook up retirement planning and gave retirees more options than ever. 

Before 2015, if you had a defined contribution (DC) pension, the common route was to use the money accumulated to purchase an annuity. The annuity would then provide you with a regular income, usually for the rest of your life. 

While an annuity can be valuable in some circumstances, it isn’t flexible.

To give retirees more choice, Pension Freedoms were introduced in 2015. If you choose, you can still purchase an annuity, but you might also opt to withdraw lump sums from your pension or take a flexible income that you’re in control of.

You may also mix the options. For instance, you may take an initial lump sum to kickstart retirement, purchase an annuity to create a base income, and withdraw a flexible income when you need to.

So, with a decade of Pension Freedoms data and experiences to draw from, what insights could be valuable when planning for your retirement?  

1. Pensioners could be missing out on returns by withdrawing a tax-free lump sum

One of the key changes in 2015 was the ability to withdraw 25% of your pension tax-free (up to £268,275 in 2025/26) when you turn 55, rising to 57 in 2028. 

The good news is that, despite fears of reckless spending, figures suggest most retirees aren’t immediately withdrawing this lump sum. According to Royal London data published in March 2025, just 8% of people took their tax-free lump sum within six months of turning 55. 

However, more than half of retirees choose to withdraw the lump sum at some point. The most common reason was to pay off a mortgage or reduce other debt, which could provide greater financial security over the long term.

Yet, around a quarter of people taking the tax-free cash simply deposited the money in the bank.

While having accessible cash might feel reassuring, leaving it in your pension, where it’s likely to be invested, could yield higher returns over a long-term time frame when compared to a savings account.

You don’t need to withdraw the 25% lump sum in one go to benefit from the tax-free cash. You can also spread it across multiple withdrawals. So, if you don’t have a clear plan to spend a lump sum, leaving it in your pension might make financial sense.

2. Over-50s are worried about running out of money in retirement 

As you\'re in control of how you access your pension savings, there is a risk that you could withdraw too much too soon, either by taking a large lump sum or withdrawing an unsustainable regular income. 

While figures suggest most retirees are taking a measured approach, 42% of over-50s told Royal London that they worry about running out of money in retirement. 

There are several ways to alleviate your fears and have confidence in your retirement finances. 

One option might be to purchase an annuity to create a base income. 

According to statistics from the Financial Conduct Authority (FCA), retirees are often choosing flexi-access drawdown over purchasing an annuity.

Indeed, in 2023/24, 68% of retirees accessing a pension worth between £100,000 and £249,999 did so by taking a flexible income. In contrast, just under 20% purchased an annuity. While an annuity isn’t right for everyone, it could offer peace of mind.

Another option is to work with a financial planner when you take a flexible income. We could help you assess your pension and other assets to understand what a sustainable income is for you.  

3. Retirees could face an unexpected tax bill

While you may have retired, you could still benefit from considering your tax liability, including Income Tax.

If your total income, including withdrawals from your pension and the income you receive from the State Pension, exceeds the Personal Allowance (£12,570 in 2025/26), you may be liable for Income Tax. Managing your withdrawals could help you avoid an unexpected tax bill or being pushed into a higher tax bracket. 

Yet, the Royal London research found just 4 in 10 people considered the tax implications of withdrawing a taxable lump sum from their pension. 

4. Most retirees aren’t seeking advice or guidance 

The FCA data indicates that just 30% of people accessing their pension for the first time took regulated financial advice. 

In addition, the Royal London survey suggests that 1 in 5 people didn’t speak to anyone about their pension or use any tools, such as income or tax calculators, before they made a withdrawal.

While retirement is an exciting milestone and you may feel confident handling your finances, it’s important to remember that the decisions you make now could affect your financial security for the rest of your life. 

Seeking professional advice or guidance could help you make choices that are right for you, identify potential risks, and put your mind at ease as you enjoy the next chapter of your life. 

Working with a financial planner may help you navigate Pension Freedoms  

Pension Freedoms mean you have far more flexibility than previous generations, but they may also come with additional responsibility, such as ensuring you don’t run out of money. A retirement plan could help you manage your finances as you prepare for the milestone and once you give up work. 

Please get in touch to speak to one of our team about your options for creating an income when you retire. 

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.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

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.  

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.

Drawdown pension plans (unsecured income) are complex and are not suitable for everyone. Pension decisions can affect your income for the rest of your life (and that of any partner and other dependants). Where benefits are accessed on a flexible basis, these are not fixed or safeguarded for life. If security of income is important to you then you should consider purchasing an annuity or taking a scheme pension to provide a secured level of income.

Creating a financial plan can seem complicated, especially if you need to take into account your partner’s views, assets, and goals. At times, you might have conflicting ideas about what is “right” and it can be a difficult situation to navigate.

Working with a financial planner as a couple could help you overcome some of the key challenges you might encounter when building a financial plan with a partner. 

Challenge 1: Starting money conversations 

Talking about money is sometimes seen as a taboo subject. So much so that even talking to your partner about shared finances can feel awkward.

Indeed, according to a March 2024 survey from Aqua, just 24% of Brits discuss finances with their partner frequently. In fact, far more (39%) admitted they don’t talk about money with their partner regularly. 

From discussing everyday spending to investing for your future, it’s important to be on the same page, and that’s impossible if you’re not talking about money. 

Having a regular meeting as a couple with a financial planner gives you dedicated time to talk about money and get those important conversations started – you might find they come more naturally over time. 

Challenge 2: Balancing different priorities  

Even if you’re working towards the same overall goal, there might be times when you and your partner have different priorities. 

Perhaps you want to put extra money into your pensions so you can retire early, but your partner would rather focus on building a nest egg for your children. Balancing these competing priorities can be challenging and lead to arguments, even though managing your finances well is important to both of you. 

A financial plan that’s tailored to you can help you understand the effect of your decisions so you can balance different priorities. 

For example, in the above instance, you might calculate if you could still reach your retirement goals if you delayed increasing pension contributions for five years. The outcome may mean you feel more comfortable adding contributions to your child’s savings, knowing that your long-term future is still on track.  

Challenge 3: Managing conflicting money habits 

Conflicting views on how to use money and spending habits are a major cause of arguments in relationships. 

Indeed, an Independent report from March 2025 suggests that 30% of people in relationships are worried that discussing savings or investments will cause arguments. Working with a financial planner could minimise conflicts and ensure you’re both on the same page. 

Having a shared goal could reduce conflicting spending habits. Imagine you’re in a relationship where one of you is a “spender” and the other a “saver”. 

Having a defined amount that needs to be added to savings or investments each month to reach a defined goal may mean the spender is less likely to overspend. Similarly, the saver may feel more comfortable spending disposable income if they know long-term goals are on track.

Sometimes your financial planner acting as a neutral third party can be useful when you’re discussing differing money habits too. They may be able to highlight where a compromise could be made or demonstrate why one option better supports your lifestyle goals. 

The good news is that when you’re working together, you could get more out of your money.

Challenge 4: Bringing together different assets

Understanding how assets may be used to reach your goals can be complicated and when you’re planning with a partner, bringing them together may be a challenge.

For example, you may both be paying into a pension – what income could each provide and is it enough to deliver the lifestyle you want? Should you have individual savings accounts or combine them?

A financial plan can help you get to grips with your assets, understand your options, and make decisions based on your goals. 

Equally, many tax allowances and reliefs are individual. So, you might need to consider how to use both your ISA allowance, pension Annual Allowance and more in a way that reflects your circumstances and provides both of you with financial security. 

We can work with you and your partner to create a bespoke financial plan

A plan that’s tailored to you and your partner could help both of you feel more confident about the future and ensure you are working towards goals together. 

Please get in touch to talk to us about your aspirations and build a financial plan. 

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. 

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.