EVENT WRAP-UP: WILL YOUR MONEY LAST YOUR LIFETIME?

How can you be sure your hard-earned money will last your lifetime? And are you making the right moves to improve your financial stability today?

They were the questions we were asking at Cooper Parry Wealth’s latest event. And with expert speakers sharing their tips to an engaged audience, we certainly found some answers.

We’ve summarised all the best bits below, and if you’ve got any questions of your own, let us know.

PENSION PLANNING

First to take the stage was Darcy Needham-Jones, Relationship Manager here at CPW, to share why pensions are so useful and play a key part in anyone’s financial plan.

• Why should you contribute to your pension?

If you own a business, it’s an allowable business expense, reducing your corporation tax/income tax and offering an excellent tax-efficient way to extract business cash.

Your pension pot can grow free of capital gains tax, and most pensions are outside the scope of inheritance tax too. So, if you’re likely to need the money in your lifetime, you can build a tax-free pot for when you retire.

• Should I put as much money as possible into my pension?

It’s generally advisable but be aware pension rules change. A lot. In his 2023 Spring Budget, Jeremy Hunt announced he was increasing the annual allowance from £40k to £60k and abolishing the lifetime allowance completely. However, Labour has already announced they’ll reverse the decision on the latter if elected.

Don’t forget, while the pension age is currently 55, it’s increasing to 57 in a few years’ time. So, if you would need access to the funds sooner than this, pensions may not be the best option for you.

• What should I be doing now?

Maximise your allowances tax efficiently. Be mindful of the lifetime allowance and have a plan for it.

Have a suitable investment strategy, check your retirement options, and check the death benefits available with your pension and nominate your beneficiaries.

Once you’ve got the plan, keep it under review and make sure it stays tailored to you and your circumstances.

INVESTMENT MARKETS

Next up, Ewan Rosie, our Chief Client Officer spoke about what’s making the investment markets so challenging and how to navigate them.

• Why is it a volatile time for investment markets?

Interest rates are up to 5%, while inflation is staying the same at 8.5%. The conflict in Ukraine is still going on. The stories of Silicon Valley Bank and Credit Suisse point to global banking issues. There’s global debt, higher taxes, and the impacts of the pandemic are still lingering.

• How should that affect my investment decisions?

It shouldn’t, really. We have no control over the short term – and short-term investing is essentially gambling.

The markets are resilient. No major event over the last 50 years has had a lasting impact. And missing just 15 days in a 20-year period on the S&P500 would reduce returns drastically. So, control your emotions, don’t get lured in by the media’s negativity, stay invested and take a long-term view.

MAKING LIFE COUNT

After an educational, caffeine-powered interactive experience with 200 Degrees Coffee, we were back in our seats to hear from Simon Williams, Relationship Director at CPW, to get to the very core of the question at hand.

How long our money is going to last us depends on the lifestyle we want, the things we enjoy and the people and causes we care about the most, i.e., our values.

The stuff you really value, the things you want to achieve and what keeps you awake at night are the most important things to address in financial planning. Otherwise, decisions can become hollow and short-term, and as Ewan’s talk told us, that’s when your fingers get burnt.

For more background on financial planning that starts with your values, goals and fears, check out our Bigger Picture Advice page. And if you’ve got any other questions, or you’d like to have a chat, get in touch here.

This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. Past performance can’t guarantee what investments will do in the future. The value of a portfolio can go down as well as up, so there’s a chance you’d get back less than you put in.