Essentially Wealth – Quarter Four 2020

An ageing Baby Boomer generation is expected to pass on a staggering £5.5 trillion1 to younger generations over the next 30 years in what has been called ‘the great wealth transfer.’ Have you considered how you would like your heirs to benefit from your legacy, or whether you could afford to gift some wealth during your lifetime?

It’s been an immensely challenging year for most people on so many levels, so taking steps to prioritise your wellbeing should be your prime consideration as we head into the long, dark winter months.

Although recent circumstances have certainly accelerated talk of the ‘death of cash’, predictions of its demise have been around for many years.

With lockdown forcing businesses up and down the country to close their doors for months, the government’s various coronavirus loan schemes have proved a lifeline.

Is your child reaching the age of 18? If so, they could be amongst a huge swathe of teenagers set to cash in on their Child Trust Funds for the fi rst time. Set up by the Labour government in 2002, the scheme aimed to encourage parents to save for their children’s future, with the money only accessible at the age of 18.

The government has confirmed the minimum age at which individuals in the UK can access their private pension will increase to 57 in 2028.

Have your retirement plans been derailed in the past few months?

If they have, you’re certainly not alone, as huge swathes of people have unfortunately suffered the same affliction; in fact, nearly one fifth of those aged 50 or over, believe their retirement will be negatively impacted by the pandemic. Of these, a quarter have not been able to retire due to their finances, a fifth have had to dip into their retirement savings whilst not working and a tenth have retired sooner than expected because of redundancy.