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This year has been unusually busy for elections, with over half of the world’s adult population voting in some form. The US election on November 5th will be the most significant, politically and in terms of market impact.
Taking advantage of the tax benefits of a pension could be the boost you need to achieve your retirement goals. Yet it may be worth reassessing your pension to see if you can further improve on the benefits and its potential to help deliver a comfortable life later on.
This column by our chief economic strategist Gerard Lyons appeared in The Times on Tuesday 1st October, 2024.
The Budget on 30th October has already been foreshadowed by the government as likely to be “painful”. And while we don’t know what areas of our personal finances may be affected, those who have savings, pensions and investments will probably be impacted in some way. It could therefore be a valuable exercise to assess your own circumstances to help you prepare if you do need to act fairly promptly.
Our CEO Charlotte Ransom regularly answers questions for readers of the i paper – helping them to better understand their investments and how to effectively plan their finances to achieve their long-term goals. Many of these questions are also highly relevant for Netwealth readers.
Inflation, the rate at which the prices of goods and services increase over time, has become a significant concern in recent years. The post-pandemic economic landscape has been marked by supply chain disruptions, pent-up consumer demand, and large-scale fiscal and monetary interventions. These factors contributed to a sharp rise in prices, directly affecting the cost of living. Although the peak of this inflationary wave may have passed, the risk of future inflationary pressures remains a persistent challenge for investors.
At the end of October the Chancellor will deliver her first Budget. Already the markets, as well as the general public, are expecting a tough Budget. This is a reflection of the messaging from the Government in recent weeks, the fiscal stance that has been inherited and the existing high level of UK debt.
When interest rates are high they can be a useful alternative to investing, in particular for those who are more risk averse and are apprehensive about entering, or remaining in, markets. However, as rates start to fall, the presumption of cash savings as being the safest environment for your money should be challenged, especially if you hope to meaningfully grow your funds and realise your long-term plans. Inflation can begin to erode the real value of your capital and you should therefore take appropriate action if necessary.
Effective financial planning is crucial for individuals who wish to have more of a say in their future. While a financial plan can help you to not only chart a path for your money and your life, it’s worth assessing your plan every so often to see if you are on track to achieve your objectives.
Successfully managing modern investment portfolios means expertly navigating an evolving set of challenges. Our key beliefs help to guide us when volatility is elevated, when the impact of policy actions is uncertain and give us the agility to respond as the fundamentals change.
Team Contributors
Gerard Lyons
Charlotte Ransom
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“My wife and I have £200k in our pensions. Are we on track for a good retirement?”
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I’m 68 and retiring soon. How can I limit taxes when I take out my pension?
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“How do I get the highest return taking the lowest risk on my £540,000 pension?”
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How can I protect my retirement savings and should I be using a trust?
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“I’m worried about the fees on my £600k pension pot. Are some costs being hidden?”
Thomas Salter
Iain Barnes
Simon McConnell
In The Press
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Read what the press have to say about Netwealth
