Month: April 2026

Conflict in the Middle East caused market volatility throughout March 2026. Find out what other factors may have affected your investments.

While the ongoing uncertainty may feel unsettling for investors, remember that your strategy reflects your long-term goals and considers periods of volatility.

Oil prices rising and ongoing uncertainty led to stock markets falling

On Saturday, 28 February, the US and Israel began strikes on Iran, which led to markets falling when they opened on Monday 2 March.

The FTSE 100 recorded its biggest loss since November 2025 when it fell 1.2%, with airlines, luxury goods makers, and banks particularly affected. In contrast, defence stocks increased, including the UK’s BAE Systems, which was up 7% at the start of trading.

It was a similar picture in Europe. The main indices in France, Germany, Italy, and Spain were down 2.2% or more. When markets opened in the US, the Dow Jones Industrial Average and the wider S&P 500 both dropped 1%.

As the Middle East is a major oil-exporting region, conflict there led to prices rising. Deutsche Bank stated Brent crude was up 8.4%, though it added it was only the 38th largest oil spike since 1990.

The volatility continued on 3 March, with the FTSE 100 recording the biggest daily loss in 11 months when it fell 2.75%. Germany’s DAX (-3.6%), France’s CAC 40 (-3.5%), and Italy’s FTSE MIB (-3.9%) also suffered losses.

Asia-Pacific markets weren’t immune to the effects of the war in Iran either. Japan’s Nikkei index fell 3.6%, and South Korea’s KOSPI was down 12% on 4 March due to concerns about shipping through the Strait of Hormuz, a key sea passage for trade, particularly for oil.

On 11 March, the International Energy Agency proposed the largest release of oil reserves in history to bring crude prices down. The news led to Asian shares climbing, with the main indices in Japan and South Korea rising by 1.4%.

However, energy fears continued to influence European markets. On 16 March, the FTSE 100 was down by 1.9%, and the index’s 2026 gains were wiped out on 20 March.

Markets briefly rallied on 23 March following news that negotiations would take place between the US and Iran. However, there were conflicting reports that led to confusion. Despite this, US markets improved, with the Dow Jones up 2%, and construction equipment firm Caterpillar leading the way with a 4.4% rise.

UK

The Office for National Statistics said the UK economy stagnated in January 2026. The data suggests the economy was weakening even before the effects of the conflict in the Middle East were felt. Furthermore, inflation in the 12 months to February 2026 was 3%, stubbornly sticking above the Bank of England’s (BoE) 2% target.

The British Chambers of Commerce commented that the UK is stuck in a “low-growth pattern”, after the 2026 GDP forecast was downgraded from 1.2% to 1%. The organisation said the revised estimate reflects weak productivity, subdued investment, and cautious consumer spending.

At the start of March 2026, Chancellor Rachel Reeves delivered the government’s Spring Statement. In it, she said inflation would fall faster than expected, economic growth would pick up in 2027 and 2028, and there was headroom in the budget.

However, the calculations were made before the conflict in the Middle East began, which is expected to affect the economic outlook.

For instance, rising energy prices could influence inflation. Indeed, the Office for Budget Responsibility estimated the Iran war would add 1% to UK inflation this year. In turn, high inflation may lead to the BoE increasing interest rates, which would place pressure on consumers and businesses.

Data from S&P Global’s Purchasing Managers’ Index (PMI) was positive for the manufacturing and service sectors.

In February 2026, the manufacturing PMI continued to grow, recording a reading of 51.7 – a figure above 50 indicates growth – and a rise in business both at home and abroad. The service sector fell slightly compared to the previous month to 53.9, but still shows growth.

In contrast, the construction sector fell to 44.5 in February, which marked 14 consecutive months of contraction.

Europe

Across the eurozone, the annual inflation rate was 1.9% in February 2026, up from 1.7% a month earlier, and very close to the European Central Bank’s (ECB) 2% target.

The ECB opted to hold interest rates in March, but warned that uncertainty could lead to higher inflation and pose risks to economic growth, which might lead to higher interest rates in the coming months.

The European Commission consumer confidence survey highlights this fear among consumers, with the reading falling amid worries that the Iran war could drive up energy costs.

The S&P flash report on output in the eurozone fell to 50.5 in March, down from 51.9 in February. The reading represents a 10-month low, and it is close to the 50 mark, which signals stagnation.

US

As expected, inflation in the 12 months to February 2026 remained stable at 2.4%.

However, data from the Bureau of Labor Statistics was less positive. The US economy lost 92,000 jobs in February, which could be a sign that the market is cooling, and the ongoing conflict might lead to businesses taking a more cautious approach in the coming months.

A consumer sentiment survey carried out by the University of Michigan indicates that the Iran war is already influencing how confident people feel about their financial future. The reading fell from 56.6 in February to 55.5 in March.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Research suggests that many small business owners and self-employed workers aren’t prioritising their retirement and could face uncertainty later in life as a result. However, opening a pension could benefit both you and your business.

According to an article from Which? (1 March 2026), people who have spent most of their working life as self-employed are three times more likely not to have a private pension.

Fluctuating earnings and a reliance on your business could mean you overlook a pension

There are many reasons why small business owners are less likely to pay into a pension.

A key one is that your earnings might fluctuate, which may make it difficult to balance your short- and long-term financial priorities. Indeed, according to Which?, 4 in 10 self-employed workers cite this as their biggest barrier to retirement saving.

Working with a financial planner to create a tailored plan could help you understand how to manage retirement contributions.

Another reason small business owners might overlook a pension is the belief that their business will provide an alternative.

Whether you plan to sell your business or continue working later in life, having an alternative way to create income could be valuable, as it’s impossible to know what’s around the corner. For example, you might struggle to find a buyer who is willing to pay the price you want, or you may decide to retire earlier than expected due to ill health.

Without a pension to fall back on, you could face difficulties if things don’t follow your plan.

Working with a financial planner to create a cashflow model could help you assess your options. A cashflow model can help you visualise how your wealth might change depending on the decisions you make.

For example, you might use it to calculate how much you’d need to sell your business for to provide “enough” in retirement, or how much to contribute to a pension to provide a base income.

The outcomes of a cashflow model cannot be guaranteed. However, it could provide useful insight when you’re making long-term decisions, such as whether to contribute to a pension.

3 practical reasons small business owners could benefit from a pension

While most employed workers are now automatically enrolled into a pension, as a small business owner or self-employed worker, it is your responsibility to open a pension. Here are three practical reasons to do so.

1. A separate pension pot could offer peace of mind

While you may hope to use your business to fund your later years, a separate pension pot could act as a safety net in case something unexpected happens.

Separating some of your finances from those of your business could help keep your retirement on track. However, you should note that you cannot usually access your pension savings until you turn 55 (rising to 57 in 2028). As a result, you might want to consider your pension contributions in a wider context, such as other savings and investments that could help you meet short- and medium-term goals or expenses.

2. A pension is a tax-efficient way to save for your retirement

If you’re saving for retirement, a pension is often a tax-efficient way to do so.

First, your contributions will usually benefit from tax relief, which means some of the tax you’ve paid is added to your pot, providing an immediate boost to your retirement savings and reducing your tax liability.

Tax relief is paid at your rate of Income Tax. Typically, basic-rate tax relief will be added to your pension by your pension provider automatically. If you’re a higher- or additional-rate taxpayer, you can claim your full entitlement through a Self Assessment form.

Second, returns made from investments held in your pension will not be liable for Capital Gains Tax, which may not be the case for investments that aren’t in a tax-efficient wrapper.

3. Pension contributions may be an allowable business expense

Paying into your pension could be tax-efficient from a business perspective. In some cases, contributions are treated as an allowable business expense, which could reduce taxable profit and the business’s overall tax bill.

Contact us to talk about your retirement

If you’d like to create a retirement plan as a small business owner, please get in touch. We could help you assess your options, including opening a pension, and create a plan that’s tailored to your needs and goals.

Please note: This article is for general information only and does not constitute advice. The information is intended only for individuals.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The Financial Conduct Authority does not regulate cashflow modelling.

Managing your pension doesn’t stop once you retire and start to draw an income from it. In fact, your pension still needs careful attention in retirement – just as much as when you were contributing – to ensure you don’t deplete it too quickly.

Research suggests that many retirees aren’t taking professional advice and are potentially making financial decisions they’ll regret in the future.

According to the Financial Conduct Authority (FCA) (22 September 2025), in 2024/25, less than a third of people accessing their pension for the first time took regulated financial advice.

In addition, an FTAdviser article (5 March 2026) noted that a previous survey found that many retirees will deplete their pension by their late seventies if they maintain their current withdrawal rate, leaving the average person with a nine-year shortfall. 1 in 7 already regret how much they’ve withdrawn.

Pension Freedoms provide retirees with greater flexibility but also risk

Pension Freedoms were introduced in 2015 and changed how you could access your defined contribution pension.

With a defined contribution pension, you and your employer both contribute to a pot, which is usually invested. When you retire, you use this pot to create an income. Under Pension Freedoms, you have several options, which can provide retirees with the flexibility to create an income that suits them.

However, you’re also responsible for ensuring your pension provides an income for the rest of your life. As a result, there’s a risk that you could spend too much too soon, or that a poor financial decision has a long-lasting impact.

6 steps that could help you manage pension withdrawals in retirement

1. Consider your life expectancy

The research reported by the FTAdviser suggests the average person could deplete their pension nine years before the average life expectancy, which could leave them in a financially vulnerable position.

According to the Office for National Statistics, the average 65-year-old woman has a life expectancy of 88. For men of the same age, it’s 85.

Yet, using the average figure when assessing your pension withdrawals could still leave a gap, as many people exceed this. For example, 1 in 4 65-year-old women will celebrate their 95th birthday, and 1 in 4 65-year-old men will reach 92.

2. Calculate the effects of inflation

One of the challenges of retirement planning is that you need to consider how your expenses will change over several decades. One of the factors that will affect your outgoings is inflation.

The Bank of England inflation calculator shows that an annual retirement income of £30,000 in 2015 would need to have grown to more than £41,000 by the end of 2025 simply to maintain your spending power.

As retirements are likely to span several decades, failing to factor in inflation when creating a withdrawal strategy could leave you struggling financially day to day or at risk of depleting your pension too soon.

3. Understand your guaranteed income

Having a guaranteed income that could cover your essential outgoings could offer peace of mind.

Most retirees will receive a reliable income for life from the government once they reach the State Pension Age. In addition, you may use your pension to purchase an annuity, which would provide a regular income for the rest of your life.

The amount you receive from an annuity will depend on the rates you are offered, which may be affected by your personal circumstances and external factors. You might also select an annuity where the income rises in line with inflation to preserve your spending power or provide an income for your partner if you pass away first.

You can use some or all of your pension to purchase an annuity to suit your needs. The decision is often irreversible, so it’s important to assess if an annuity is right for you first.

4. Assess your drawdown strategy

One way you might access your pension is known as flexi-access drawdown. This allows you to withdraw money from your pension and adjust the amount to suit your needs.

For many retirees, their income needs will change. So, this option can be valuable, and it’s important to calculate what your sustainable spending rate is to avoid running out of money.

Working with your financial planner to create a cashflow model could help you visualise how long your pension would last, depending on different withdrawal rates, including if your income needs rise and fall. It’s important to note that while a cashflow model can be useful when making financial decisions, the outcome isn’t guaranteed.

5. Make potential risks part of your retirement plan

You can’t always prevent events from affecting your finances, but you might be able to take steps so you’re in a better position to manage them.

For example, maintaining an emergency fund in retirement could help you cover unexpected costs, such as property repairs, or you might draw income from it during a period of market volatility if your pension remains invested.

6. Schedule regular reviews with your financial planner

Finally, scheduling regular reviews with your financial planner could provide you with an opportunity to ask questions and assess whether your withdrawals remain sustainable. By checking your pension throughout retirement, you might be in a better position to spot potential risks to your financial security.

If you’d like to arrange a meeting to talk about your pension and retirement, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The Financial Conduct Authority does not regulate cashflow modelling.

Deciding how you’d like your assets to be managed later in life and after you pass away may be intimidating. However, a cashflow model could help you answer both financial and emotional questions, so you’re in a better position to tackle your estate plan.

According to a survey conducted by Aegon (5 March 2026), 1 in 3 UK adults has done nothing to prepare for death. Even among adults who have taken steps to prepare, many haven’t completed the full process. For example, while 38% said they’d written a will, only 18% had organised their core financial documents, such as pension information, insurance details, or account records.

While it may seem that estate planning is something you can put off until later, being proactive can be valuable. Not only could it offer peace of mind, but a longer time frame could present opportunities to pass on gifts during your lifetime and make tax-efficient decisions.

Cashflow modelling can project how your wealth will change

Cashflow modelling is a powerful tool that allows you to input information about your current finances and then use assumptions to project how the value of your assets might change. You may incorporate variables like expected investment returns, planned outgoings, or when you hope to start using your pension to create an income.

The output of cashflow modelling might help you make more informed decisions.

For example, when you’re planning for retirement, you might model several different scenarios to understand how your retirement age may affect your income. Or you could use it to calculate what a sustainable income throughout retirement would be for you.

It’s important to note that the output of a cashflow model cannot be guaranteed and will be based on the information you input and the assumptions made.

However, a cashflow model could be valuable when you’re making important decisions, including those relating to your estate plan. Here are five reasons why you might benefit from using a cashflow model when you’re thinking about how to use or pass on your assets in the future.

1. Assess the impact of gifting during your lifetime

For many people, gifting to loved ones during their lifetime is a goal. You might want to help adult children get on the property ladder, boost their income, or cover the cost of a grandchild’s school fees.

However, you may be worried about how it’ll affect your financial security in the long term. A cashflow model could help you visualise the potential impact of gifting to understand if it’s an option you want to consider.

2. Decide how to pass on your estate

The value of your estate may affect how you choose to divide your assets. As a result, a cashflow model can be a useful tool when thinking about inheritances.

Understanding the value of your assets could be useful for your beneficiaries too, as their expected inheritance might influence their financial decisions.

3. Highlight when you might benefit from Inheritance Tax planning

Inheritance Tax (IHT) is a tax on your estate after you pass away if its value exceeds certain thresholds. As the value of your assets is likely to change during your lifetime, it can be difficult to assess whether IHT is something you might need to consider.

A cashflow model could highlight if your estate may be liable for IHT and potentially help you find ways to reduce the bill.

4. Support creating a care plan

Planning for care costs can be challenging. However, it may be an important part of your long-term plan.

As people live longer lives, the number of individuals who require support is expected to rise. Indeed, according to research from the Joseph Rowntree Foundation (22 August 2024), the number of people who could benefit from support with daily activities will rise from 1.7 million in 2015 to 3 million in 2040.

A cashflow model could help you assess how you’d pay for care costs should you need support later in life.

5. Test “what if” scenarios

One challenge when making decisions is understanding the long-term impact. A cashflow model could allow you to test “what if” scenarios and assess the impact they might have on your assets.

For instance, you may use a cashflow model to answer questions like:

• How would increasing my annual spending impact what I leave behind for loved ones?
• How would gifting each of my children £25,000 now affect my financial security in the long term?
• How would leaving a percentage of my estate to charity affect the inheritance my beneficiaries will receive?

Being able to visualise the effect of these decisions on your wealth might give you the confidence to move your plans forward or identify potential gaps before you act.

Get in touch

If you’d like to create an estate plan or review an existing one, please contact us.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The Financial Conduct Authority does not regulate estate planning, tax planning or cashflow modelling.

How your brain works can affect how you view wealth and different assets. For many, this can mean cash feels like a safer option than alternatives, but it’s not always the right one. Indeed, sometimes choosing to hold cash could mean you miss growth opportunities.

3 reasons why cash might feel like the “safe” option

1. Cash can feel more tangible than alternatives

One of the benefits of cash is that you can withdraw the money and hold it. This makes it feel more tangible as an asset. Even when cash is held in an account, knowing that you can access it and it’s typically simple to manage online might mean it feels more comfortable than assets like bonds or stocks.

2. Cash is accessible when you need it

You can usually access cash when required. This means it can act as a valuable safety net and feel like the safe option as a result.

3. Cash can seem more stable than other assets

While the value of cash assets does change due to inflation, the effect is often gradual. When you compare this to market movements that may affect your investments, this stability might seem attractive.

These factors, as well as others, might lead people to choose cash over alternatives because it’s perceived as safer.

According to an article published by IFA Magazine (7 March 2026), cash is taking on a more prominent role in the portfolios of high-net-worth individuals. Indeed, 38% of this group say they hold more cash than they did three years ago, with cash accounting for around £1 for every £5 of their wealth.

Inflation could mean the value of your cash falls in real terms

The value of cash can feel static. After all, when you place a sum into an account, the figure doesn’t rise and fall as other assets might. However, inflation can erode the value of cash if the interest rate doesn’t keep up.

As the cost of goods and services rises, your cash will gradually buy less as its spending power is reduced. Over the short term you might not notice this, but it can have an impact over the long term.

According to the Bank of England’s inflation calculator, if you deposited £10,000 into a savings account in 2014, it would need to have grown to £13,390 by 2024 to have the same spending power. This is due to an average annual inflation rate of 2.96%.

So, while holding cash might feel safe and be appropriate in some circumstances, you could benefit from examining the alternatives.

When you might consider investing instead of cash

Investing might be an appropriate option when your goal is long term.

Over a long-term time frame, investments have the potential to deliver returns that are above interest rates. As a result, you may consider it if your goal is more than five years away. This is because the ups and downs of market movements typically smooth out over a long period.

However, it’s important to note that investment returns aren’t guaranteed. All investments carry some risk, and assessing what level of risk is appropriate for your circumstances and goals is an essential step when creating an investment strategy.

Contact us

If you’d like to discuss how to manage your wealth, including cash, as part of a wider financial plan, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.