Your Frequently Asked Questions

We’re often asked a range of questions about pensions, investments, and retirement planning. In this article, we’ve answered some of the most common ones to help you feel more informed and confident about your financial future.

1. How much State Pension will I get…and when?

This remains one of the most frequently asked questions. As of April 2025, the full new State Pension is £230.25 per week, an increase of 4.1% over the previous amount of £221.20 per week. The basic State Pension is now £176.45 per week.

To receive the full amount, you typically need 35 years of National Insurance contributions. You can check your forecast and fill any gaps via the GOV.UK portal here.

Additionally, the State Pension age is set to rise from 66 to 67 between May 2026 and March 2028, affecting those born between April 1960 and April 1977 so if you haven’t yet reached your state pension age, it’s worth checking what you’re on track to receive and when.

2. Are my investments aligned with my goals?

Recent market volatility has led some clients to question if their investments are ok. Whilst it’s a natural response to the media ‘noise’ that accompanies sudden market declines, we always advocate doing nothing. During times of heightened volatility, it’s impossible to predict the low point but history tells us that declines are temporary and holding your nerve is usually your best course of action.

As part of our ongoing service, we regularly check if your investment accounts remain suitable for you and that the underlying investment strategy will give you the prospects of the investment return you need to meet your financial goals.

3. How much do I need to retire comfortably?

Working out how much you’ll need in retirement savings is a common concern. Online pension calculators can provide estimates based on your current savings and contributions.

Whilst that’s a good start, figuring out what your life will look like in the future and how much you’ll need to fund it can be challenging. Talking this through with a financial planner can help you create a picture of your future life including what’s most important to you.

Then, using financial forecasting software, they can bring that picture to life showing you what’s possible with all of your current assets and create a roadmap to your future.

4. What happens to my pension when I die?

Understanding pension inheritance is vital. Generally, most pensions fall outside of your estate and aren’t subject to inheritance tax. However, from April 2027, pensions are set to be included in your estate for inheritance tax purposes. This is a significant change which means more people are going to pay inheritance tax. It’s important to note that we don’t yet have the finalised legislation, so things could change. We are also still waiting on more detail.

In the Autumn Budget, the Chancellor announced that inheritance tax thresholds, which are the amount you can pass on when you die, before inheritance tax is due, are staying the same until 2030. The standard rate of inheritance tax is 40%.

It’s essential you nominate beneficiaries and understand the implications for your specific pension scheme. It’s also important to check the value of your ‘estate’ – the value of everything you own – to see what difference your pension funds will make and if it creates an exposure to Inheritance Tax.

5. What can I gift away each year without affecting Inheritance Tax?
   
   You can give away a total of £3,000 worth of gifts each tax year without them being added to the value of your estate. This is called your “Annual Exemption”. You can give gifts or money up to £3,000 to one person or split the £3,000 between several people.
   
   You can carry any unused annual exemption forward to the next tax year – but only for one tax year.
   
   You could decide to gift more than £3,000. But the excess above £3,000 should be recorded and would be subject to The “7-year rule”. No tax is due on any gifts you give if you live for 7 years after giving them – unless the gift is part of a trust.
   
   If you die within 7 years of giving a gift, there may be Inheritance Tax to pay on it. Speak to your financial planner to understand how much.

Have a question for us? Let us know here!