Month: October 2026

In September 2026, markets experienced some volatility due to conflict in the Middle East and the impact it had on energy prices. Discover other factors that may have affected the performance of your portfolio.

Markets got off to a weak start on 1 September. A global government bond sell-off, caused by concerns about inflation and government debt, led to markets falling. Among the indices affected by the dip were London’s FTSE 100 and Germany’s DAX, both of which were down by 1.1%.

Asian markets were also impacted by the sell-off when they opened. On 2 September, it was reported that Japan’s Nikkei 225 index was down 2.7%, while South Korea’s KOSPI (-3.3%) and China’s CSI 300 (-1.4%) also fell.

Concerns about rising energy prices led to European markets falling on 8 September. Unsurprisingly, energy companies bucked this trend, with FTSE 100 firms BP (0.9%) and Shell (0.35%) opening higher.

This continued on 9 September, when it was reported that UK and European gas prices had surged to multi-year highs as oil reached $100 per barrel. British gas prices were reportedly at their highest level since late December 2022. While the FTSE 100 was down 0.6%, energy firms once again were among the only businesses to see share prices rise.

For several months, worries about AI companies being overvalued have affected markets, and this concern reared its head again on 14 September.

AI-linked stocks slowed down, which affected share prices across the globe. For example, in Tokyo, SoftBank, a major AI investor, saw its share price fall by 13%, and chipmaker SK Hynix, which is listed in South Korea, fell 5.75%.

The STOXX Europe 600 technology index fell 2.3% on 14 September following calls for the AI industry to slow down for safety reasons.

Trade tensions between the US and China have contributed to volatility throughout 2026. However, on 21 September, trade talks between the two nations, coupled with oil prices declining, led to investor optimism that provided a welcome boost to Asian markets.

UK

UK GDP beat forecasts with 0.4% growth in July, putting the economy on track for a stronger-than-expected third quarter of 2026. The boost was supported by AI activity, high temperatures throughout the summer, and the FIFA World Cup. The figure represents the fastest pace of growth since February 2025.

However, inflation remained high. In the 12 months to August 2026, inflation was 3.1%. Despite inflation being above the Bank of England’s (BoE) 2% target for months, the central bank opted to hold interest rates where they were.

However, market experts at ING state that the BoE could increase interest rates four times by July 2027, including a rise this year, if energy prices remain high.

Purchasing Managers’ Indices (PMI), which provide an economic indicator of business activity, were above the 50 mark that indicates growth for the manufacturing and service sectors. Nevertheless, both sectors face challenges as inflation will affect input costs.

Indeed, 31% of service sector businesses said costs were rising, compared to just 1% that noted a fall.

Europe

Eurozone inflation hit a three-year high of 3.2% in the 12 months to August. The increase was linked to rising energy costs and put it well above the European Central Bank’s (ECB) target of 2%. In response to the inflation data, the ECB increased interest rates for the second time this year in a bid to bring inflation under control.

There was good news from other economic data.

The eurozone private sector growth hit an almost three-and-a-half-year high, helped by AI activity and defence spending. The PMI reading was 53.1.

Manufacturing PMI was also positive at 52.7. The reading was the highest in more than four years, with the bloc’s largest economies, Germany and France, both enjoying strong growth. Export sales were also up for only the second time in four and a half years, with particularly strong performances in Austria, Germany, and the Netherlands.

US

US inflation fell slightly to 2.4% in the 12 months to August 2026, though it remains above the 2% target.

Despite pressure from President Donald Trump to slash interest rates, the Federal Reserve raised interest rates for the first time in three years. The hike will see interest rates of 3.75% – 4% after a quarter of a percentage point increase.

Asia

Japan’s central bank was among those hiking interest rates in September. The quarter-percentage-point increase to 1.25% means the country’s interest rates are at the highest level since 1995.

China’s economic indicators suggest that the country’s growth is slowing down. For example, consumption and investment are both underperforming, though notably exports and industrial production are stronger than expected. Policymakers are facing renewed pressure to increase stimulus spending as a result.

The long-awaited initial public offering from fast fashion giant Shein may be a disappointment to investors. The company’s shares listed in Hong Kong tumbled at the start of the month. The company has been affected by regulatory changes in the US and the EU, which could remove reduced import duties on small packages.

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.

It’s entirely normal for your personal circumstances and priorities to change over time. A will created a decade ago – or even just a few years ago – may no longer accurately reflect your current family structure, financial goals, or life situation.

As these priorities evolve, it’s important to ensure your estate plan remains up to date too. Updating your will when your wishes change is a key part of that.

Keep reading to discover why you may need to update your will, as well as how to go about it.

Several key events could mean your existing will no longer reflects your wishes

There are many reasons why you may need to update your estate plan, and common life events could include:

• Major life milestones – Marriage or civil partnership, divorce, or the birth of children or grandchildren.
• Financial changes – Buying a new home, receiving an inheritance, selling major assets, or starting a business.
• Changing relationships – A named executor, trustee, or guardian may have passed away, moved abroad, or become unable to act. Alternatively, you may wish to adjust how your estate is split among your beneficiaries or include a charitable legacy.

Note: Marriage or civil partnership immediately revokes an existing will under English, Welsh, and Northern Irish law, unless made in specific contemplation of that marriage or civil partnership.

Ultimately, whatever the reason for the change, ensuring your documentation remains up to date can give you peace of mind that your assets and estate are handled appropriately and with care after your death.

You can update your estate plan in one of two ways

There are two primary legal methods for updating your will: adding a codicil or rewriting your will completely.

A codicil is a formal legal document that acts as an amendment or supplement to your existing will. It allows you to make minor changes, revocations, or alterations without the need to redo your entire document.

• When to use a codicil: These are best suited for minor or straightforward adjustments, such as changing an executor, updating an address, or altering a specific cash gift to a beneficiary.
• When to rewrite your will: This is better suited for major life events, such as marriage, divorce, significant shifts in how you wish to distribute your assets, or complex changes to trust structures. Attempting to make multiple changes using codicils can cause confusion, ambiguity, and even legal challenges later.

The best option you will depend entirely on your personal circumstances, but consider the above points as guidelines.

Following clear, practical steps ensures that your changes remain legally valid

Option 1: Adding a codicil for minor changes

1. Draft the document clearly: The codicil must explicitly refer to your original will, including its date, and clearly state which clauses you have modified, added, or removed.
2. Select your witnesses: Witnesses must not be named beneficiaries in the original will or the codicil, nor can they be married to one.
3. Execute it correctly: A codicil must be signed and witnessed by two independent witnesses, who must also sign in your presence. This is exactly the same as when you wrote the original will.
4. Store it safely: Keep the codicil stored securely alongside your original will so that your executors can present both documents together during the probate process.

Option 2: Writing a new will for major changes

1. Outline your new wishes: List your current assets, beneficiaries, guardians, and chosen executors.
2. Include a revocation clause: Your new will must contain a standard clause explicitly stating that it revokes all former wills and codicils.
3. Sign and witness: Like any legal will, signing must occur in the presence of two independent witnesses who will also sign the document alongside you.
4. Destroy the old document: To prevent confusion or potential disputes down the line, safely destroy your previous will and any associated codicils once you have executed a new, valid will.

Following these steps helps ensure that your wishes are legally sound and easy for your executors to interpret and execute.

Regular reviews ensure your supporting documents match your current priorities

Reviewing your will every three to five years, or whenever a major life event occurs, is a fundamental part of good financial housekeeping.

Planning ahead means that your estate plan accurately reflects your intentions, minimises potential tax issues, and protects the people and causes that matter most to you.

This is something we can help with.

Get in touch with us today to learn more.

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 Financial Conduct Authority does not regulate estate planning or will writing.

Flexible pension withdrawals have reached record levels since Pension Freedoms were introduced in 2015. While total control over your retirement fund can be liberating, it places the onus on you to ensure you’re managing your finances responsibly.

UK retirees rely heavily on flexible access to their pensions, and the data supports this. According to figures reported by MoneyAge (30 July 2026), total taxable flexible pension withdrawals have exceeded £124.7 billion since Pension Freedoms were introduced.

In the 2025/26 tax year alone, retirees withdrew £22.4 billion, driven by an increasing number of individuals accessing their defined contribution pension pots.

While accessing your pension flexibly means you can shape your retirement income around your lifestyle, it’s even more important to strike a balance that works for your unique circumstances.

After all, you likely want the freedom to enjoy the early, active years of retirement without running out of money later in life.

Here are four strategies to help you find the right balance.

1. Calculate a sustainable withdrawal rate

One of the largest risks in flexible drawdown is withdrawing too much, too soon. This is especially the case during the early retirement period or in times of market decline.

This is also called sequencing risk – or the danger of negative returns occurring early in your retirement. This could disproportionately shrink your capital and affect future investment growth.

To avoid depleting your pot prematurely, it may be important to establish a sustainable withdrawal rate.

A general guideline some people use is the 4% rule as a benchmark, as Fidelity (3 February 2026) notes. However, a rigid percentage doesn’t account for real-world volatility.

Your ideal rate may change and depends on your personal circumstances, expected lifespan, investment portfolio performance, and inflation rates.

Importantly, adjusting your withdrawals during market dips allows your portfolio time to recover and means you can preserve more capital for the future.

2. Consider a hybrid approach with annuities and drawdown

To build a resilient plan, it helps to understand the core distinction between your options.

• An annuity exchanges a portion of your pension pot for a guaranteed, lifelong income stream.
• Flexi-access drawdown keeps your funds invested in the market but allows you to take variable withdrawals as needed.

You don’t have to choose strictly between flexi-access drawdown and a traditional annuity. A hybrid approach allows you to combine the security of a guaranteed lifetime income with the growth potential of drawdown. This could secure essential expenditure and help fund discretionary spending.

• Securing essential expenditure: You can use a portion of your pension pot to purchase an annuity, guaranteeing a lifetime income to help you cover essential living costs such as utilities and Council Tax.
• Funding discretionary spending: The remaining funds in your pension can stay invested in flexi-access drawdown, so you can use flexible withdrawals to fund other goals, such as travel, hobbies, or helping family.

By blending both products, you remove the stress of funding your basic needs with potentially volatile investments while maintaining the flexibility to adjust your lifestyle as needed.

3. Be tax-smart with your withdrawals

How you access your money can significantly affect how long it lasts.

You can generally take up to 25% of your pension tax-free, subject to your Lump Sum Allowance, which is capped at £268,275 as of the 2026/27 tax year. This is frozen until April 2031.

Taking this in phased lump sums over time rather than a single upfront payment can help keep your overall income in lower tax brackets.

As a note, here are the Income Tax rates and bands as of 2026/27.

• Personal Allowance (0%) – Up to £12,570
• Basic rate (20%) – £12,571 to £50,270
• Higher rate (40%) – £50,271 to £125,140
• Additional rate (45%) – over £125,140

Moreover, keeping Income Tax thresholds in mind when you’re making your withdrawals could help you manage your tax liability.

4. Conduct regular financial reviews

Retirement is dynamic, not static, and your spending habits will naturally evolve through different stages of retirement.

They are often higher in your early active years, may dip mid-retirement, and rise again due to long-term care needs.

Reviewing your portfolio, withdrawal rate, and health goals annually helps ensure your strategy adapts to shifting markets and changing personal priorities.

Find your next steps towards a more secure future

Yes, managing a flexible retirement income requires balance, but you don’t have to navigate it alone.

For a tailored strategy specific to your circumstances, talk to us today.

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.

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.

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.

Delaying an investment decision might seem harmless. After all, you’re not increasing the amount of risk you’re taking, withdrawing assets, or changing your portfolio. However, significant delays could have a negative long-term impact.

Decision paralysis is the inability to make a choice because you’re faced with too many options, fear making the wrong decision, or experience information overload.

As an investor, you often have numerous ways to invest your wealth, which can feel overwhelming. What’s more, the performance of your investments could affect your long-term plans, such as your ability to retire, and this added pressure could lead to decision paralysis.

For some investors, this can make taking no action seem preferable.

Decision paralysis could lead to lower investment returns

If you haven’t yet invested, decision paralysis might mean you put off getting started. Instead, you may opt to hold the money in a cash account because it seems like the simpler option. Because your money may remain in the account until you’re ready, this can feel like a sensible choice.

However, as the interest rate a savings account pays might be lower than the rate of inflation, the value of your cash could fall in real terms. In fact, an article in Financial Planning Today (1 September 2026) suggests British savers have £303 billion in bank accounts paying zero interest.

Over longer time frames, the effects of inflation become more pronounced.

Imagine you deposited £20,000 into a savings account in 2020 with the intention of investing it, but never got around to doing so. According to the Bank of England’s inflation calculator (16 September 2026), your £20,000 savings would have needed to grow to £26,378 by August 2026 just to maintain their purchasing power.

So, if your savings weren’t benefiting from an average interest rate of 4.29%, the money would be falling in value in real terms, as you’d be able to purchase less with it.

In addition, you may have missed out on potential investment returns.

It’s important to note that investment performance cannot be guaranteed and that historical performance is not a reliable indicator of future performance. However, investments have the potential to deliver returns at a higher rate than inflation, which could mean the value of your assets increases in real terms.

Decision paralysis might also manifest after you’ve invested. For example, you might put off reviewing the performance of your investment portfolio or making adjustments when necessary. Again, putting off these tasks for long periods could mean you miss opportunities to adapt your portfolio when appropriate.

An investment strategy could provide a clear plan and boost your confidence

Working with a financial planner to create an investment strategy could be useful if you’ve experienced decision paralysis.

An investment strategy starts by assessing your investment goal and financial circumstances. This can include setting out your risk profile and investment time frame, which can help you understand how your assets might be invested to achieve your aims. This could provide a clearer direction, so you’re able to filter out investment options that aren’t appropriate for you.

Access to professional insights and the opportunity to review different options could also help you feel more confident about investment decisions.

Alternatively, you could choose to take a more hands-off approach and rely on your financial planner, who could help ensure any recommendations reflect your circumstances and goals.

If the prospect of investing or reviewing your existing investment portfolio alone feels overwhelming, please get in touch. Our team would be happy to talk to you about how we might work together.

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.

Passing assets to your loved ones during your lifetime could have many benefits. Yet, that doesn’t mean it’s simple, and you might experience emotional challenges even if you’re sure it’s the right thing to do in your circumstances.

According to an FTAdviser article (29 July 2026), 7 in 10 people believe financial support should be given to beneficiaries early when it could make the biggest difference. Just 8% of people believe wealth should mainly pass on after death.

As well as potentially providing support when your loved ones could benefit the most, a living legacy means you could see the impact your gift has.

Another reason gifting during your lifetime is growing in popularity is that it could be useful from an Inheritance Tax (IHT) perspective. Not all gifts are immediately outside your estate when calculating IHT. However, some gifts may fall outside your estate for IHT purposes if you survive for seven years after making them.

As a result, passing on assets earlier in your life could reduce a potential IHT bill.

Despite the benefits, it’s normal to have misgivings about passing on assets. Here are three emotional challenges benefactors might face.

3 emotional challenges and how financial planning could help

1. You’re worried gifting assets could affect your long-term financial security

Even if you’re confident in your finances, you may worry about how your circumstances could change in different scenarios.

You might worry that gifting assets now could compromise your financial security if an unexpected event occurred. Indeed, the FTAdviser article notes that 37% of respondents said the risk of running out of money was the biggest barrier to providing financial support.

Having a cashflow model could ease your concerns. A cashflow model can illustrate how your financial position could change over your lifetime based on different decisions you make.

So, if you’re thinking about gifting assets now, you might review how this would affect your long-term finances. You can model unexpected events too, such as how gifting assets and then experiencing a high unexpected cost or a period of market volatility might affect you.

You should note that the results of a cashflow model depend on the data entered and the assumptions used. As a result, they cannot be guaranteed.

However, being able to visualise the impact of different scenarios on your financial security could provide peace of mind or highlight potential risks before you proceed.

2. You’re concerned about how the beneficiary will use the gift

You’ve worked hard during your life to become financially secure, and giving up control of assets might feel daunting. What if your loved one uses the gift differently from how you intended?

Working with a financial planner could help you explore your options.

One option would be to involve your beneficiaries in relevant parts of your estate-planning discussions. This could allow you to state how you’d like them to use the gift and help them understand its financial implications.

Another option might be to establish a trust. Some trusts allow you to set out conditions about how and when the assets are to be used.

Trusts are a legal arrangement, and you may not be able to remove assets once they’ve been placed in a trust. Seeking both legal and financial advice could help you assess whether using a trust is the right choice for you and your beneficiaries.

3. You suspect gifting assets might lead to difficult discussions about your estate plan

Passing on your assets during your lifetime often leads to wider discussions about your estate plan, such as the contents of your will or your wishes if you need care later in life. Some people may delay deciding because they find these topics difficult to discuss.

These conversations can be challenging, but they’re often important. Working with a financial planner can help you consider practical points and prepare you for talking to your loved ones.

Contact us

As your financial planner, we could help you assess different options for passing on wealth to your loved ones and provide reassurance if you’re concerned about the implications. Please get in touch to talk about your estate plan.

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

This guest blog was written by Chris Budd, who wrote the original Financial Wellbeing Book as well as The Four Cornerstones of Financial Wellbeing. He founded the Institute for Financial Wellbeing and has written more than 130 episodes of the Financial Wellbeing Podcast.

Picture the scene: You’re at a party. One of the reasons you are attending is because your partner has told you there is somebody who would like to meet you. Someone who has similar interests and a similar attitude to life, and they think that the two of you would get on.

Your partner introduces you to this person, and leaves you to it. One of the first questions they ask you is the evergreen social opener: “So, what do you do?”

Your answer will probably have been refined over many years, maybe even decades. In the early days, it may have just been a noun. I am a solicitor. I am a doctor. I am a business owner.

As one’s career progresses, we will often add a descriptor. I am a partner in a solicitor’s practice. I am a medical consultant. I own a marketing business.

These descriptors often lead to further questions. The discussion starts to flow. What area of law? What type of medical consultant?

Then, there are some responses to the “So, what do you do?” question that need no further explanation, but will certainly evoke a conversation. I am a rock star. I am a novelist. I am an astronaut.

How the conversation develops is likely to be entirely influenced by the answer to the initial question. The astronaut response means that the conversation will now flow.

If the other person performs a role which has things in common with yours, then the conversation may be even easier. Two accountants might have lots to share; an accountant and a business owner might even see business opportunities.

Transition

Now roll this conversation forward in time, to a period after you have stopped performing that role. Perhaps you’ve retired, perhaps you have sold your business, perhaps both.

Now when that question “So, what do you do?” comes along, your reply is: “I used to be a solicitor / doctor / business owner.”

Unless you really did use to be an astronaut, the conversation is likely to dry up much more quickly.

Don’t be a used-to-be

Part of the process of preparing for a life transition is to make sure you are not defined by what you used to be.

Not being a “used-to-be” requires positive action. Who you want to be.

This is why many business owners use some of the proceeds from the sale of their business to invest in other businesses. It is an easy move from being a business owner to an investor. But is this who they really want to be?

Perhaps the surgeon who retires then continues to act as an adviser, perhaps to a medical business or charity.

Staying in a similar profession or role type can seem logical, as it utilises all that experience. But it might also suggest the person hasn’t actually spent much time thinking about who they really want to be, often because they are so busy doing the job that currently defines them.

Business owners often don’t think about what they will do after the sale of their business because they are focused on running it.

Who to be

How would you like to answer the question of who you will be post-transition? How about: I am a trustee at a hospice. I am a wildlife trust volunteer. I am a trainee pilot.

The time to start preparing for this is not three months after the transition. That lack of planning is why so many people drift into the next thing and struggle to answer the question “So, what do you do?” other than to say: “I am retired.”

The best time to plan life post-transition is years in advance. This is the function of the financial plan. The objectives of that plan should not just be “to retire at 60” but should be objectives that lead to a life of wellbeing and purpose. And making sure you are not a used-to-be needs careful financial planning. After all, being a trainee pilot takes a lot more savings than volunteering at a wildlife trust!

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.