Over one million individuals have entered self-employment since 2020 (IPSE, 2024), so it is important to ensure you are still planning for retirement by making regular pension contributions.

A growing sector

In 2023, there were 4.2 million people in the UK’s solo self-employed sector – 3% higher than the previous year. Overall, the solo self-employed contributed £331bn to the UK economy, up from £278bn in 2022. But, concerningly, 45% of freelancers are not saving into a pension (IPSE, 2023).

Make it a priority

We know it can be easy to forget about your pension, seeing as employed people are auto-enrolled into a pension scheme by their workplace, but if you are freelance it is your responsibility. The sooner you start saving for retirement, the more you can grow your investment and benefit from tax relief on contributions (within limits). Putting it off only means that you will need to save more in a shorter amount of time if you want a comfortable retirement.

Contribute regularly

Decide on a minimum monthly contribution that feels manageable for you. Your income may fluctuate from month to month – that’s why you can put more money into your pot when you’re doing well.

Seek advice

One benefit of being self-employed is that you have more freedom when it comes to choosing your pension. We can help you plan ahead.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

Purpose has lately become a buzzword for investors and companies. Whether ‘mission-oriented’ investing excites you or makes you want to run for the hills, aligning your wealth with your values and interests can bring rich rewards.

Give and grow

Historically, wealthy people wanting to make a difference have done so through philanthropy. In response to major challenges from climate change to poverty, some billionaires have devoted large chunks of their wealth to finding and funding worthy causes. 

Many wealthy families are motivated simply by a desire to make a positive difference in the world. However, doing good does not always mean compromising returns; with the rise of impact investing, more people are combining the pursuit of financial returns with societal benefit.

Investing for world peace

The rise to prominence of environmental, social and governance (ESG) investing brought opportunities to make money while having a positive impact. ‘Investing for Global Impact,’ a report released by Barclays, found that 68% of ultra-high-net-worth private investors with an average $730m in assets felt that philanthropy and impact investing should be used in tandem to generate impact. Indeed, some 58% of respondents said they are already seeking to coordinate their portfolios into tackling common aims and themes across both (Barclays, 2023).

What’s your impact?

The modern purpose-driven investor has abundant ways to make a difference. Wealthy investors cite a responsibility to make the world better as one reason for choosing impactful investing. 

With a clear-minded strategy that considers wealth holistically, investors can look to pursue opportunities and build a family legacy. A deeply personal process, the challenge is to balance a wide breadth of factors from what the world needs, to your own circumstances and motivations. For you, your family and society, it can prove enormously enriching.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

A new report (CapGemini, 2024) suggests the wealth of‘high-net-worth-individuals’ (HNWIs) – grew by 4.7% in 2023, with the HNWI population increasing by 5.1% to 22.8 million globally.

What’s behind the increase?
Global economic uncertainty, higher interest rates and rising political tensions led to significant declines in HNWI wealth (3.6%) and population (3.3%) in 2022. However, the economic picture improved in 2023, as global equity markets recovered, and investors focused on the prospect of interest rate cuts.

CapGemini confirmed, ‘Despite ongoing interest rate uncertainty and rising bond yields, equities surged along with the tech market, fuelled by enthusiasm for generative artificial intelligence (Al) and its potential impact on the economy.’ North America led the recovery, with significant HNWI wealth and population increases. Asia-Pacific also saw growth, while Europe experienced more modest gains.

What are their priorities?
As the HNWI population becomes younger, investment priorities have also shifted from defensive investing towards generating longer-term wealth. Value-added services, such as tax planning and intergenerational transfer are increasingly sought after.

What influences their decisions?
Over 64% of HNWIs polled said emotional or cogitative biases influenced their decision making. This includes seeking information from sources that aligned with their views, seizing opportunities without due consideration, holding onto underperforming investments for too long, and playing safe, missing out on potential opportunities.

These biases are particularly impactful during personal life events such as marriage, divorce or retirement, as well as times of broader economic turbulence, such as volatile market conditions and geopolitical uncertainty.

The findings confirm HNWIs need access to good quality, highly personalised financial advice now more than ever. Not only can we help to create bespoke strategies to suit individual and family needs, we can also overcome biases in favour of longer-term financial plans.

*The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

According to research (Arbuthnot Latham, 2024), 81% of the UK’s wealthiest individuals are

‘stressed’ about their finances, suggesting financial wellbeing is about more than just the totality of your wealth. So, virtually everyone has concerns about what their financial future will look like.

Planning for the future

The prime concerns for individuals centred around future planning and retirement, specifically maintaining a comparable lifestyle in later life (51%), the value of their investments (39%), providing for future generations (25%), the tax burden (24%) and falling victim to fraud (22%).

Interestingly, almost three in five wealthy individuals (59%) in the UK are considering relocating overseas, to enjoy what they regard to be an improved standard of living (36%), lower property costs (28%) and a more favourable tax regime (21%). 

The importance of financial wellbeing

Financial wellbeing is more than just having large sums of money. It’s a state of feeling secure and in control of your finances, both now and in the future. 

According to the Global Financial Wellbeing Report 2024 (nudge, 2024) , across all the countries surveyed, people’s top goal is to ‘feel secure’ (94%), noting that people who feel financially confident are ‘two times more likely to have goals, ambitions and dreams for their life.’

Finding your purpose

While money can’t buy you happiness, as the saying goes, it can give you security and freedom. But to get there, you need to have a plan. A good starting point is to work out what’s most important to you and what you want to achieve. Wealth has the capacity to create a powerful purpose within our lives, provided we are able to unlock its true value by understanding your ‘why’. Once you’ve established this, can create a plan unique to you that you can work towards with purpose.

Unlocking the real value of your wealth

We can help you to develop a clear understanding of what you want to achieve with your wealth, as well as provide you with the support and expert advice to help you develop a financial strategy that brings you closer to achieving those goals. There’s no point in worrying about your financial future when you could be taking valuable steps now to take control and face the future with confidence.

*The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Getting a foot onto the property ladder has always presented challenges. Research suggests FTBs could currently be experiencing the most expensive conditions in 70 years (BSA, 2024).

Who is most affected?

In the current property market, a successful first purchase often requires two high incomes plus financial support from family members. Therefore, those who are buying alone, have lower incomes or cannot access help from the Bank of Mum and Dad are most likely to lose out.

How old?

Hopeful FTBs are forced to stay at home or in the private rented sector for longer. The average age of a first-time buyer is now 36, having risen from 32 in 2004 (ONS, 2024).

Delaying proceedings

Ongoing market uncertainty has caused hopeful homeowners to put their dreams on hold; over the last year, 49% of prospective FTBs have postponed their plans (Nationwide, 2024). Just over half (53%) said high house prices were the main reason for delaying, while 41% cited rising mortgage costs.

Making a compromise

FTBs will likely need to consider different options if they want to get on the property ladder; 38% of those who have become homeowners in the last five years said they had to compromise. For example, 40% purchased a home that needed some renovation and 34% moved to a different location.

Decline in homeowners

Overall, home ownership has fallen in the last 20 years, and the number of residential owner-occupier mortgages has decreased by more than two million since the rate peaked in 2002 (BSA, 2024). The UK has not seen such a low level of outstanding mortgages since the end of the 1980s.

Advice is key

We understand the difficulties that first-time buyers may face. You can make your home-owning dreams a reality with the right advice. Get in touch with our team today – www.audleywealth.com/contact-us 

Does your investment portfolio suffer from too much ‘home bias’? It’s natural for investors to stay cl

Are you thinking of buying a new build? The good news is there are more regulations than ever that protect buyers of newly built homes. It can be difficult to keep up with these changes, so here’s what you need to know.

Codes of conduct

Most developers are signed up to a code which lays out best practice for the marketing, building, and selling of new builds. Check which code your builder follows, so you know who is holding them to account if any issues arise. Many developers were signed up to the 

Consumer Code for Home Builders until 2021, when the New Homes Quality Board (NHQB) was launched.

 The guidelines

Transparency is at the forefront of both the Consumer Code for Home Builders and the New Homes Quality Code from the NHQB. Consumers have the right to withdraw from the purchase if the housebuilder makes any changes to the home. Deposits must be protected and high-pressure sales tactics are prohibited to protect vulnerable customers. The housebuilder must also provide an after-sales service for up to two years after legal completion.

 Check for snags

Defects with the property – otherwise known as snags – are a common problem with new builds. Buyers can commission a professional snagging company to inspect the new build before they move in. If the developer is registered with the NHQB, they are required to rectify any snags within 30 days, unless there is a suitable reason for delay.

 Complaints procedure

Each code has a process and timeframe for the handling of complaints. The New Homes Ombudsman Service is free for anyone whose developer is registered with the NHQB. Meanwhile, issues with housebuilders signed up to the Consumer Code for Home Buyers can be taken to the Independent Dispute Resolution Scheme.

 *As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments

ose to home when thinking about investing, contemplating well-known UK companies or UK-focused funds rather than looking further afield. But if your portfolio becomes too heavily concentrated in the UK, you risk missing out on valuable diversification benefits and better potential returns elsewhere.

The drawbacks of home bias

One of the biggest reasons to avoid home bias is that it limits your portfolio’s growth potential. Investing with a global perspective opens up your portfolio to a world of different countries, industries and companies to invest in, potentially leading to higher returns over time. Importantly, investing globally means you’re more likely to gain exposure to high-growth sectors or companies that are not always present in your domestic market, whereas sticking with the UK means narrowing your opportunities, even if you own some outstanding local companies.

The benefits of diversification

At the same time, home bias in a portfolio breaks one of the biggest investment rules: diversification. Spreading your portfolio across different asset classes, countries and companies is one of the simplest – yet most effective – ways to mitigate risk within your portfolio and help you achieve more consistent returns over time. Studies and historical data show that including international investments in a portfolio can lead to better risk- adjusted returns due to diversification benefits, though geopolitical risks must be considered. Global markets offer a wider range of asset classes and reduce your vulnerability to economic downturns specific to your home country.

However, over-diversification is a risk to be wary of too! It occurs when additional investments diminish returns without lowering risk significantly. Regular reviews and rebalancing help maintain a well-diversified portfolio and manage any potential concentration risk that may occur over time.

Ready to invest? 

Recent research suggests that some Britons are starting to save more despite the cost-of-living crisis (Aldermore, 2024). Now might be the right time to start thinking about investing if you have some money on the sidelines.

Get in touch with Audley Wealth today – www.audleywealth.com/contact-us

*The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Does your investment portfolio suffer from too much ‘home bias’? It’s natural for investors to stay close to home when thinking about investing, contemplating well-known UK companies or UK-focused funds rather than looking further afield. But if your portfolio becomes too heavily concentrated in the UK, you risk missing out on valuable diversification benefits and better potential returns elsewhere.

The drawbacks of home bias

One of the biggest reasons to avoid home bias is that it limits your portfolio’s growth potential. Investing with a global perspective opens up your portfolio to a world of different countries, industries and companies to invest in, potentially leading to higher returns over time. Importantly, investing globally means you’re more likely to gain exposure to high-growth sectors or companies that are not always present in your domestic market, whereas sticking with the UK means narrowing your opportunities, even if you own some outstanding local companies.

The benefits of diversification

At the same time, home bias in a portfolio breaks one of the biggest investment rules: diversification. Spreading your portfolio across different asset classes, countries and companies is one of the simplest – yet most effective – ways to mitigate risk within your portfolio and help you achieve more consistent returns over time. Studies and historical data show that including international investments in a portfolio can lead to better risk- adjusted returns due to diversification benefits, though geopolitical risks must be considered. Global markets offer a wider range of asset classes and reduce your vulnerability to economic downturns specific to your home country.

However, over-diversification is a risk to be wary of too! It occurs when additional investments diminish returns without lowering risk significantly. Regular reviews and rebalancing help maintain a well-diversified portfolio and manage any potential concentration risk that may occur over time.

Ready to invest? 

Recent research suggests that some Britons are starting to save more despite the cost-of-living crisis (Aldermore, 2024). Now might be the right time to start thinking about investing if you have some money on the sidelines.

Get in touch with Audley Wealth today – www.audleywealth.com/contact-us

*The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Do you have hopes to buy? Whether you’re looking to get on, move up or down the ladder, your property dreams are possible with a little preparation. Here’s how you can get yourself mortgage-ready this summer.

Check your credit score

Lenders will inspect your credit report for evidence that you can meet the mortgage repayments. Check your records for free now so you have time to make any improvements. No matter where you are today, there is always an opportunity to boost your score.

Consistency is key

Mortgage lenders are looking for signs that you are responsible, so paying your bills on time is a great way of boosting your credibility. Any indication that you could go into debt may put off a lender, so be mindful of your outgoings especially in the months running up to your application.

Go through old accounts

Consider how any inactive accounts might affect your application. It is advisable to close accounts that are out of date – particularly joint accounts with people you are no longer financially linked to.

Register to vote

Being on the electoral roll serves as proof of your identity and address.

Maximise your deposit

With high loan-to-value (LTV) mortgages available, it can be tempting to place the smallest possible deposit on a property. However, this will cost you more in the long run as your monthly repayments will be higher. Do your future-self a favour and put down any extra cash that you can.

Seek advice

You don’t need to navigate the mortgage market on your own. We can find options that you might not have access to, advise on schemes that could help, and assist you with the application process.

Get in touch with our team today! – www.audleywealth.com/contact-us

*As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments

Have you ever made an irrational or impulsive purchase you’ve later regretted? We all make decisions based on our emotions or personal biases, but when it comes to investing, such mistakes can be very costly.

What is behavioural investment?

Behavioural investment is an approach that acknowledges how our emotions and our biases can sometimes make decisions for us. During periods of geopolitical uncertainty and heightened risk, behavioural investment biases can become even more pronounced, tempting you into making poor decisions. Here are some impulses that often lead to bad investment decisions:

• Loss aversion: Investors worry about their investments falling further in value, so they sell them prematurely, locking in losses and missing out on potential rebounds

• Herd mentality: When markets fall, people tend to panic, follow the crowd and sell their investments. This ‘herd mentality’ means markets keep falling, as more people panic and sell, creating a spiral

• Confirmation bias: Investors let their own opinions dictate their actions and often seek out information that confirms their existing fears, ignoring evidence that contradicts their own impulses

• Overconfidence: Some investors believe they can predict the market’s reaction to geopolitical events, leading them to make risky bets that could ultimately backfire. 

Avoiding behavioural biases

Investors often need to worry less about geopolitical events and more about avoiding making poor decisions. Worry not, you’re in safe hands. We can create a plan and stick to it, so we focus on longer-term goals, rather than risk getting distracted by short-term noise.

We will build a resilient portfolio, spreading your investments across different asset classes to manage risk. Rest assured, we will make well-considered, researched investment decisions to increase your chances of achieving your long-term financial goals.

Get in touch with our team today to discuss your options – www.audleywealth.com/contact-us

The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

This year, summer brings hope of a better financial future as inflationary pressures recede and the economy continues to grow. It could therefore be an ideal opportunity to prioritise a range of pension-related issues in order to ensure brighter days do lie ahead.

Pension withdrawals up

Many people have faced significant financial challenges over the last few years. Recently released Financial Conduct Authority data covering 2022/23 highlights these difficulties, with the number of pension plans accessed for the first time up by 5%. However, as recent challenges begin to ease, it is hoped that, rather than dipping into pension savings, people’s focus will increasingly return to boosting their retirement pots and sorting out other pension-related concerns.

Expression of wishes

One pertinent issue relates to inheritance, with research (Canada Life, 2024) showing that almost half of all UK pension savers have not considered who will inherit or otherwise benefit from their retirement savings. Since April’s Lifetime Allowance changes, decisions around pension beneficiaries have become more vital due to the way such pensions are taxed on receipt. It is therefore extremely worrying that the research also found over half of respondents had not completed an expression of wishes form, with a further one in ten unaware if their forms were up to date.

Taxing issues

Most people appreciate the tax advantages associated with pension contributions, but what is often less well-known is their potential to passon wealth tax-efficiently. This means pensions can play an important role in supporting loved ones after you pass away. Pensions can also be advantageously used to navigate the Child Benefit trap, as pension contributions reduce taxable income and can thereby enable some people to avoid paying the Child Benefit Charge.

Pension conversations

We all appreciate the importance of devoting time to our pension arrangements now to ensure we reap the benefits later. If you need help with any retirement-related issues, we can talk through your options and make sure you are maximising your pension benefits.

The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.