PREPARING FOR THE EVENT

When speaking to other parents in the days after, I found that they fell into three broad categories.

The first group had planned early, bought the glasses online at a reasonable price and were able to enjoy the eclipse fully and safely.

The second group were only marginally better than me – they had left it quite late to search, which had made it more difficult to track down the glasses and meant they were paying way over the odds compared to the people who had got themselves organised. Some only managed to get one pair to share between the family, it was a relatively expensive experience – but they got there in the end.

The third group, my group, and by far the largest group were the people who left it so late to start planning, that there was no realistic way to enjoy it properly. We were left improvising… or ultimately, just not bothering.

If I'm honest, I felt the eclipse was a bit of a let-down in the end - but it did get me thinking about the parallels with retirement planning.

When it comes to saving for retirement, those who plan early, can make relatively affordable contributions into their retirement savings. The combination of time and compounding investment growth can give them a comfortable retirement at a relatively low cost.

The second group, generally larger than the first, start planning a little later – the delayed start makes retirement funding a more noticeable expense. Time is running a little short, and the power of compounding doesn't have as long to take effect – but they do start, they recognise a degree of urgency and with planning and determination can still secure a comfortable retirement.

Unfortunately, our experience is that the largest group are those who, like me with the eclipse glasses, leave things until it's too late. Beginning to plan so late that the contributions required to secure a comfortable retirement are large, and sometimes unaffordable.

The good news is that as financial advisers there is almost always something we can do to improve retirement, through professional advice, holistic planning, and careful structuring we can make the most of what is available – but often, this group are left with an improvised retirement, trying to make the most of what they have, but without the resources they really need to have the retirement they hoped for.

We are often asked the question, "when should I start?" or "is it too late?" to get advice on financial planning and the answer to both questions is "START NOW". Even if you feel like you have left it late, engaging with the financial planning process will still give you an understanding of what can be done to improve your financial position and provide practical steps to get things on track where possible, and to make the most of what you have regardless of how much or how little it is.

Whichever group you find yourself in, we are here to provide considered, practical advice on planning for the best retirement possible with the resources you have available, and over the past 30 years, we've helped thousands of people to plan more effectively for their future.

For more information on Lakeside services, please contact: admin@lakesidefs.co.uk

PENSION CHANGES FOR 2027

This change represents a good opportunity for you to update your nomination regarding who should receive your pension in the event of your death. This can be a spouse, children, wider family, or any individual(s) you choose.

For clients who intend to leave their pension to a spouse or partner, we are recommending that they also consider naming any children as beneficiaries with a nominal allocation. For example:

While these amounts may appear token, they serve an important purpose: by including children on the form, the pension trustees are given the flexibility to reallocate funds between beneficiaries if requested. This could prove useful in reducing the income tax and inheritance tax burden on your estate and your family after your death.

It is worth noting that this approach does come with a small trade-off. Adding children to the nomination means the pension will no longer pass exclusively to your spouse, which may not suit everyone's circumstances. Additionally, any funds directed to children would not benefit from the spouse exemption that can defer inheritance tax on death. For most clients, however, the added flexibility outweighs these considerations - and the nominal percentages can always be adjusted or removed by simply updating the form at any time.

We will be emailing all clients about this recommendation over the coming weeks. Please review the email when you have received it, and let us know if you have any questions.

As always - your adviser will be happy to talk through whether this approach is right for your situation at your next review.

For more information on Lakeside services, please contact: admin@lakesidefs.co.uk