Keep calm and don’t panic over your Pension

Ahead of the Autumn Budget, rumours were flying about potential changes to the tax-free cash you can take from your Pension. Many feared Chancellor Rachel Reeves might cut the current allowance of 25% of your pot, or lower the maximum limit of £268,275. Some people rushed to withdraw their tax-free cash before anything was officially announced.

A lot of those same people are trying to undo their decisions. Providers like Abrdn have reported a spike in calls from clients wanting to use their cancellation rights to reverse withdrawals. Why? Because no changes were made, and they’re realising they may have jumped the gun.

Thankfully, drawdown investors have 30 days to cancel their withdrawal requests under FCA rules. Abrdn has even gone a step further, temporarily extending these rights for certain products. It’s a lifeline for anyone who has had second thoughts about dipping into their Pension too early.

HMRC have just come out and said this can’t be reversed. We wonder why that is…

The big lesson here? Keep calm and don’t let speculation drive your Financial choices. Always talk to us before making any moves to ensure you are making the right decision for your specific situation. You can always reach us on 02920 450 143 or via email on info@penguinwealth.com – we are here for you.

Why every family business needs a succession plan (like, now!)

Did you know that nearly 70% of family business owners don’t have a plan for what happens to their business after they’re gone? Shocking, right? Even more surprising—only a third have an up-to-date Will. With recent changes to Inheritance Tax rules, now’s the time to get serious about Succession Planning.

The STEP (Society of Trust and Estate Practitioners) survey found the top reasons for avoiding succession planning were: not getting around to it (27%), thinking there’s plenty of time (15%), or not having a clear successor (14%). But, life happens, and waiting for the “perfect time” can lead to serious problems.

Without a plan, family businesses risk facing higher Inheritance Tax bills, family disputes, or even being sold off to cover costs. Recent Budget changes to Agricultural Property Relief, and Business Property Relief, mean fewer tax breaks and more pressure to plan ahead.

The good news? Starting the conversation with your family makes a world of difference. STEP members say clear communication about succession significantly reduces the chance of future conflicts. A strong plan not only secures your family’s legacy, but strengthens the business—74% of those with a plan agree it’s helped their business grow.

So, what’s stopping you? We held a Budget Briefing session following the Labour budget talk in October, which you can watch here to take a look at our take and insights on the changes and how they might affect you.

Source: STEP

Is the ‘Bank of Mum and Dad’ about to flip?

For years, you’ve been there for your kids—helping them buy their first car, get on the property ladder, or just giving them a Financial boost when they needed it. But, according to new research from Aegon, the “Bank of Mum and Dad” may be flipping. More than half of UK adults now expect to Financially support their parents in retirement. Could this include you or someone you know?

Here’s what the research found:

• Two-thirds of adults admit they’ve benefited from parental support in the past.
• 55% of adults with living parents already help or expect to provide Financial support in retirement.
• Many adult children are stepping in to cover costs, with 38% paying for meals out and 25% helping with everyday bills.
• Confidence in parental Financial security is low—just 2% of 18- to 24-year-olds think their parents are Financially prepared for retirement.

As Pensions change and living costs rise, the reality is that Financial support between generations may start to flow both ways.

This research is a wake-up call to plan ahead. If you’re concerned about your retirement Finances or the possibility of needing help from your children, now’s the time to take action. Speak to us about creating a plan that ensures you remain Financially secure—and independent—in the years to come.

Source: Aegon

Trump 2.0 – what does it mean for us all?

Donald Trump’s return to the White House has sparked plenty of discussion about what it might mean for global politics, trade, and economic stability. While his presidency promises to be as unpredictable and transactional as before, markets have reacted with surprising calm now that the uncertainty of the election has passed. For many, the focus has shifted to how the UK will manage its relationship with Trump’s America.

Efforts have already been made by the UK government to build connections. However, the challenges of navigating Trump’s “America First” agenda remain. The potential for higher tariffs and a tougher stance on trade negotiations could affect UK businesses, particularly those reliant on exports to the US.

While there are concerns about Trump’s approach to issues like European defence funding and support for Ukraine, markets have shown resilience. The removal of election uncertainty has brought stability, at least in the short term, offering a sense of calm for investors.

For individuals, Trump’s presidency highlights the importance of being prepared for global events that can indirectly impact Finances. While the markets have stabilised for now, economic shifts could arise as policies take shape. That’s why it’s important to have professionals in charge of your investment strategies and tactics, who can better manage potential turbulence in the years ahead.

Rising prices. Falling rates.

Inflation crept up to 2.3% in October, the highest in six months, but that’s a far cry from the 11.1% peak two years ago. Wages are growing faster than inflation for now, but plenty of households are still feeling the pinch.

Inflation, however, is notoriously unpredictable. While October’s figures came in higher than expected, one month doesn’t set the trend. Global factors, like fluctuating energy prices, are keeping inflation volatile and impacting UK households in ways we can’t fully control.

Interest rates, which directly affect mortgages and savings, remain at 4.75% after a recent cut. But don’t expect rates to drop quickly. Despite falling inflation, the Bank of England has signalled a cautious approach. This means fixed mortgage rates have edged up slightly, while savers might still enjoy decent returns on their deposits.

So, what’s next? Global events like conflicts, trade policies, or even that second Trump term could shift economic conditions in unexpected ways. Closer to home, Budget decisions could nudge prices higher, especially for essentials.

Most importantly – what is your personal inflation rate? What has happened to the things you like to spend money on? Inflation rate is useful but your personal inflation rate is worth calculating.

Source: ONS