Elaine Wang’s Article
During my work experience at Penguin Wealth Planners Limited, I gained valuable insight into how financial advisers help clients plan for the future. One area of tax I had not previously understood was how pension and investment strategies work. After watching the 2026 tax briefing, tax was one of the most interesting areas, and I decided to explore it further. I found that tax planning is not about avoiding tax, but managing it efficiently and legally. Most people, including me, would think tax planning is about avoiding tax, but I learnt that it is the government’s way of “nudging” people to do things that help the country in other sectors of the economy. Firstly, it funds the future (pensions), putting money aside into a pension to save on income tax. Many don’t realise the economic benefit of people saving for their retirement; they won’t have to rely solely on the state pension later in life, which is about £1000 each month now, but the future sustainability of state pensions is unclear. This reduces the reliance on state support in retirement. Secondly, it provides capital for businesses (investment strategy) – if a client uses their £20,000 ISA allowance, that money doesn’t just sit in a vault. If it’s a stocks & shares ISA, that money is invested in companies. Those companies can use the capital to increase GDP or create new products. This is encouraged by the government to pump money into the economy rather than just spending it on imported goods.
One thing schools don’t teach but probably should is having health insurance earlier in life. Insurance is risky. Therefore, applying for insurance, e.g in your 20s, is significantly better, as in your 20s it is statistically less likely to get seriously ill. So as people approach their 60s, health risks increase, which results in higher premiums; therefore, planning early provides long-term financial stability and peace of mind. Moreover, fewer exclusions – health insurance has the rule: they won’t cover pre-existing conditions, so there’s an advantage for people in their 20s having a clean medical record: getting insurance, almost everything is covered. Another factor is that news about NHS waiting lists for things like sports injuries (knee or shoulder surgery) can be months or even years. Having private insurance at 18 means if you get injured playing football or at the gym, you can be seen and treated in weeks, meaning you don’t miss out on work or university.
Overall, this work experience has changed my perspective on money and financial planning; tax strategy and investments are tools that shape long-term stability and independence. Whether it’s through pensions, investments or health insurance, a key lesson I learnt is that making proactive decisions in the early stages of life can significantly influence wealth in the future.
