As we step into 2025, now is the perfect time to set your financial plans in order. With changes on the horizon – like many pension pots becoming subject to inclusion in Inheritance Tax (IHT) calculations from April 2027 – it’s wise to prepare early. 

Financial wellbeing involves having a positive relationship with your money, feeling secure and in control of your finances, enabling you to make the most of your money while also being able to cope with the unexpected. Here are some essential steps to help secure your financial future, protect your loved ones, and improve your wellbeing – all great resolutions for 2025! 

Pension contributions 

How’s your retirement plan coming along? Thinking about your pension, the underlying assets, your risk tolerance and the level of contributions you make is a good starting point to set you on the right track to enjoy the retirement you deserve. 

Plan ahead for IHT 

Tune into gifting rules and allowances, and consider gifting assets now to benefit from the seven-year IHT rule, where gifts made seven years before passing away are usually IHT-exempt. This can significantly reduce the tax burden on your estate. 

Update beneficiary forms  

Ensure your pension and other beneficiary forms are up to date, reflecting your latest wishes. Even though there is no IHT between spouses, including pension pots, keeping beneficiaries current will prevent complications. 

Place life insurance in trust 

This simple move keeps the payout outside of your estate, making it IHT-free for beneficiaries. It’s an easy way to maximize the benefit your loved ones receive. 

Engage the whole family in financial planning 

Discussing financial plans with family helps ensure everyone understands the long-term strategy. By involving your family, you can clarify intentions, avoid misunderstandings, and foster a sense of shared financial responsibility. We can help with intergenerational financial planning and conversations. 

Think long term 

Avoid hasty decisions. Focus on a stable, long-term financial strategy and work with us to navigate complex issues like IHT. By following these steps, you can create a well-rounded financial plan, ensuring peace of mind for you and your family. 

We believe in the importance of taking control and talking things through. Life is demanding, focusing on a few small changes can make a big difference, let’s tackle 2025 head-on together. 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning. 

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