News in Review
- Government bond markets were a key focus for investors as share markets came under pressure. Bond yields, which represent the return investors receive from holding government bonds, rose sharply last week.
- Economic data suggests inflation pressures are gradually easing in the UK. Unemployment rose slightly to 4.9%, while payroll figures softened, indicating a cooling labour market.
- Inflation increased to 2.9% in July, largely reflecting higher household energy costs. Encouragingly, services inflation, which is closely monitored by the Bank of England, fell further to 3.4%.
Date for Autumn Budget set
The government has announced that the Autumn Budget will be held on Wednesday 28 October, with new Chancellor John Healey setting out the government's plans for the economy, taxation and public spending. As always, we’ll keep you updated on the key announcements and what they could mean for you.
With changes to pensions and inheritance tax (IHT) due to come into effect from April 2027, clients are talking to us about whether they might be affected, and taking the opportunity to revisit their plans. Will you be affected?
From April 2027 most unused pensions and death benefits will be included as part of your estate for IHT purposes. Currently pensions are treated as separate from a person’s estate. You will still be able to pass your estate, which includes your house, other investments, and your pension, on to your spouse or civil partner or charity and there will be no IHT to pay. There are some exceptions to the new rules. For example, if you’re a member of your employer’s pension scheme and pass away while still employed, it’s likely that your pension death benefits won’t be included in your estate. It’s important to note that tax rules can change and the impact of taxation depends on your circumstances and where you live.
- Would you like to help support your loved ones financially, while you’re here to see the difference it could make, rather than leaving everything as part of your estate?
- Do you feel comfortable with the balance between supporting loved ones and ensuring you have enough money to meet your own needs throughout retirement?
- Are you currently relying on other savings or investments in retirement, while leaving your pension untouched for the future?
- If passing wealth on to loved ones is important to you, have you explored the different ways this can be done, such as gifting or using a trust?
- Would you like to help make things straightforward for your family in the future, while helping to minimise the amount of tax that could be paid?
If you'd like to discuss any of these questions, or explore how the upcoming changes may affect you, please get in touch – I'm here to help. Find out more:
How changes to pension rules could affect your inheritance
How might the April 2027 changes affect you and your family?
Many households rely on a regular income to keep everyday life running. From housing costs and bills to food and family expenses, that steady flow can matter more than people realise, particularly with the high cost of living.
So if illness or injury disrupts earnings, the impact could be significant. Despite this, misconceptions about income protection are still common. Some people assume it only applies in extreme situations. Others believe it isn’t relevant to them or wouldn’t make a meaningful difference. In reality, income protection could be more flexible and accessible than you think. It’s designed to help support a wide range of circumstances, not just worst case scenarios. There’s also a tendency to overestimate how effective existing safety nets might be, or to underestimate just how dependent households are on regular pay. In some cases, that assumption doesn’t hold up. The key takeaway is simple. Understanding what income protection actually covers and challenging common myths can play an important role in building financial resilience and preparing for the unexpected. If you’d like to discuss your protection options, please get in touch.
As always, if there’s anything you’d like to discuss, or if you have any questions, please get in touch – I’m more than happy to help, or we can discuss when we next meet.