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Children and savings. In the UK, there are over 400 Junior ISA accounts, with a value of at least £100,000. 

What is a JISA?

A JISA is a child’s savings account that can be stocks and shares or cash. There is an annual allowance of £9,000.

Children and savings

Across the UK, many parents are setting their children up with savings to access when they reach adulthood.   Ultimately, there are 2,170,000 JISAs held. Notably, they shall pass to the child once they reach the age of 16. In summary, these contain an average value of £4,370. However, the majority of accounts have up to £25,000 saved:

Market Value Range	Number of Junior ISA accounts
£0 – £24,999	2,100,100
£25,000 – £49,999	55,400
£50,000 – £74,999	11,800
£75,000 – £99,999	2,400
£100,000+	400

Clearly many people are utilising JISAs.  Yet, while the majority of accounts hold under £25,000, there are over 400 JISAs with balances exceeding £100,000. Thus, this highlights the potential for JISAs to grow into significant sums over time. Moreover, especially when contributions are made consistently, and investments are given time to mature.

As children gain access to their JISA funds at 18, parents need to ensure their children understand the value of saving. Also, there is a need to make informed financial decisions before committing a vast amount of cash. Therefore, prioritising financial education from an early age can help young people manage their money wisely.

Who can pay into a JISA?

Only parents or a guardian with parental responsibility can open a Junior ISA for under 16s.  Children aged 16 and 17 can open their own Junior ISA. Once the JISA has been set up, anyone can contribute, including parents, grandparents, friends, and relatives.

When can a child access their JISA?

The child can take control of the JISA at age 16, however, funds cannot usually be withdrawn before age 18.

Contact us for help with your and your family’s financial and retirement planning. Call us today on 01603-957599 for your free initial consultation.

Do you understand your pension? A recent survey of over 2000 UK adults showed widespread confusion about pensions. While more than half (53%) claim to be knowledgeable about pensions.  Yet, only a third could correctly identify what a Defined Benefit (DB – 35%) or Defined Contribution (DC – 34%) scheme is.  Furthermore, 20% didn’t know what type of pension they hold. 

Those aged 25–34 appear the most confident.  With 76% saying they were sure they knew what they needed about pensions. However, this confidence doesn’t necessarily equate to understanding.  For example, just 44% of this age group can correctly identify the characteristics of a Defined Benefit (DB) pension.  In contrast, only 45% know the features of a Defined Contribution (DC) scheme.

Ultimately, these findings point to 5 core pension steps that could help you better prepare for your financial future.

1. Understand your pension

Defined Benefit and Defined Contribution schemes have different structures and benefits. A DB scheme promises a specific remuneration at retirement.  Notably, this is often based on your salary and years of service. Whereby a DC scheme’s remuneration depends on the contributions made and investment performance. Hence, knowing the type of pension you have should help you plan your finances more accurately.

Meanwhile, a workplace pension is where employees save for their retirement through a scheme arranged by their employer.  A percentage of your pay is automatically deducted and put into the pension scheme. Furthermore, your employer also contributes to the pension, and you receive tax relief from the government. 

2. When can you access your pension

Understanding when you can access your pension is key.  Whether this is through your workplace scheme or the state pension. Ultimately, knowing when you want to retire helps you plan how much you’ll need to save. And how long you have to build up your pension pot.

3. Understanding tax relief

Pension contributions also come with tax relief. However, more than half (57%) did not know that the government contributes to pensions in the form of tax relief.  In particular, just 7% knew that the minimum level of tax relief starts at 20%.

Subsequently, a quarter (25%) of people with a pension have increased their contribution.  But nearly 18% of those who haven’t changed their contribution levels said they were unaware they could.

4. Manage your pension

While one in five (19%) people actively manage their pension investments.  Over half (55%) said they don’t know how their pension is invested. Moreover, the majority (81%) have never changed their investment strategy.  And 25% of those say it’s because they don’t know enough, or didn’t realise they could.

Understanding how pensions are invested is crucial for long-term growth. Different investment strategies can impact the growth of your pension fund.  So, risk tolerance and retirement goals are important considerations for your pension plan. 

5. Consolidate your pensions

Lastly, more than 69% of people have between 1 and 5 pension pots.  Moreover, a further 20% are unaware of how many they have. Of those who do know where their pensions are, nearly 35% don’t know how to access them. As a result, only 15% have consolidated their pensions.  Meanwhile, a further 46% are interested in consolidation, but unsure how to proceed.  Thus, bringing multiple pensions together can significantly help simplify retirement planning and reduce fees.

Do you understand your pension? Contact us for help with your pension and retirement planning. Call us today on 01603-957599 for your free initial consultation.

Inheritance Tax Planning. More and more people are concerned that they will pay inheritance tax on their loved ones’ estates. Ultimately, this can be a huge shock to bereaved families.  Moreover, this can often be a direct result of increases in property value.

Accordingly, are you aware:

• Inheritance tax is a 40% tax paid by your heirs.
• Meanwhile, the current nil-rate band (2024//2025) is £325,000. Besides, there is an additional £175,000 allowance if you leave your primary property to a close family member.
• Furthermore, if you leave your estate to your spouse, they will not have to pay any inheritance tax.
• You can inherit your spouse’s nil rate band and property allowance if they have not used them. Subsequently, meaning there is a potential for a £1,000,000 estate to be inherited tax-free.
• Consequently, it is possible to take out a life insurance policy to cover a potential inheritance tax liability.
• Also, you can make a charitable donation to reduce the value of your estate.
• You can make small annual gifts within the tax allowance.  In fact, this can be a lovely way to help those important to you.
• Additionally, you can decide to gift larger assets to your beneficiaries while you are still able to see them benefit

1. Utilising your Nil Rate Band:
   1. Each individual can pass on £325,000 tax-free.  Married couples have a combined allowance of £650,000.
2. Using the Residence Nil Rate Band:
   1. Leave your primary residence to direct descendants.  With the £175,000 allowance; the tax-free threshold for married couples is £1,000.000.00.
3. Using your Gifting Allowance:
   1. Gift up to £3,0000 annually tax-free.  Plus smaller gifts of £250.00 per person and tax-free wedding or civil partnership gifts.
4. Planning larger gifts with the 7-year Rule:
   1. Gifts exceeding exemptions become IHT-free if you live 7 years after gifting.  With taper relief reducing liabilities between 1-7 years.

Contact us for help with your inheritance tax planning. Call us today on 01603-957599 for your free initial consultation.

State Pension Age (SPA) rises in April 2026 – only a year away. Accordingly, it will rise from 66 to 67, affecting anyone born after 6 April 1960.  New research from the Institute of Fiscal Studies finds that while most people aged 55–65 know their SPA.  But, a significant minority are unaware or mistaken about their SPA.

Those whose State Pension Age is between 66 and 67 and will reach SPA between April 2026 and March 2028; 42% know their SPA correctly. However, many (42%) overestimate their State Pension Age. Notably,16% (or one in six) of this group either do not know their SPA or underestimate it.  Subsequently, this translates to around 130,000 people. Furthermore, those with lower levels of wealth are particularly likely to be mistaken.

Ultimately, this gap in understanding poses risks for people approaching retirement. In particular, those who subsequently discover they must wait longer than they had thought. Hence before receiving a state pension may face a period of unexpectedly low income.

Moreover, this is especially important as the state pension age rise from 66 to 67 is imminent.  Besides, it starts in just a year. If individuals discover that they need to wait longer than they had thought to claim the state pension, they may regret having retired or not having saved more.  

In fact, the research highlights the importance of clear communication from the government and private pension providers.   Ultimately, the communication needs to centre around increases in the state pension age. Such as helping people avoid costly surprises and plan more effectively for later life.

State pension age rises in April 2026. Contact us for help with your financial and retirement planning. Call us today on 01603-957599 for your free initial consultation.

The changing perceptions of wealth.  Notably, most of us would describe those who earn a six-figure sum as ‘wealthy’.  Meanwhile, the average salary in the UK is just under £35,000 a year.

But HSBC’s recent report, ‘Your Money’s Worth: Defining Wealth in 2025’.  Notably, this highlights that only 1 in 10 people earning £100,000 or more would see themselves as wealthy.

Perceptions

Moreover, there are many reasons why high earners may not feel wealthy. For example, high inflation, taxes, pressure to ‘keep up with the Joneses’ etc.

Furthermore, the research confirmed that the more people earn, the more they tend to spend.  Some of the spend will be discretionary.  For example, they ‘need’ an extra holiday or have another property.  But some of it is not. If you live in London, the cost of renting or paying your mortgage is so much higher. Also, the ‘cost of living’ is so much higher too.

Ultimately, there is a changing perception of wealth. Particularly, among the younger generation.  Notably, it is not just defined by salary and investments alone.

“It’s about having the freedom to work anywhere you want and travelling the world.  It’s more about your health and wellness”

Hence, it’s important to know that this generation has a very different take on “what wealth is”.

The psychology of wealth:

“Concerns about money stem from primal fears of survival. While concerns about wealth stem from aspiration and social standing”

The research concluded that there are changes in what people are willing to pay for. Such as some financial services that historically haven’t been seen as important.  Examples include virtual legal guidance. As well as details showing how paying a bit more off a mortgage each month would impact their finances.

The changing perceptions of wealth. For help with your financial planning, contact us today on 01603-957599 for your free initial consultation.