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The Bank of Mum and Dad is ‘always’ open.  Notably, three in five (61%) parents of over-18s are helping their children.   However this support is harming their parents’ ability to save for retirement.  According to Standard Life recent research.

This research¹ shows how life’s pivotal moments can shape and often disrupt, people’s long-term financial journeys.  Such 75% of parents of over-18s who provide such support say it has affected them financially. A quarter (27%) have dipped into their savings.  And one in seven (15%) have or are planning to delay their retirement.   

The financial support given by parents of adult children takes many forms. Over 26% are helping them with everyday living costs such as rent, bills and food.  A further 13% are giving them a helping hand onto or up the property ladder.  Similarly, 13% are funding one-off purchases such as cars or household items.

These findings come as student finances continue to dominate public debate.  Particularly around the long-term burden posed by ‘Plan 2’ student loans.  Notably, their impact on people’s finances long after they have finished university. Some parents are stepping in to help ease the pressure on their student children.  With 11% helping to cover university fees.

Parents to the rescue

Generosity comes at a financial cost. Over 74% of over-18s parents’ who provide financial support say this has affected them financially.  Over a quarter (27%) have dipped into savings as a result.  A fifth (18%) say they are saving less for the long term.  Around 12% say this means they have contributed less to their pension than they had hoped.  One in seven (15%) expect to retire later than planned, Hence, leading them to have a more modest retirement (15%). Also being more reliant on the State Pension (15%). 

A love without limits

Despite the financial pressures, the unconditional love parents feel for their children prevails.  Over half (57%) say they expect nothing in return.  Two in five (39%) say they are happy with their decision to provide financial support. 

These parents cite a strong sense of responsibility (46%). Together with a desire to protect their children from debt or financial hardship. A third (36%) say they want to help their children achieve long-term financial security.  A further 11% see support today as a form of early gifting for inheritance tax purposes.  Ultimately, ahead of pensions coming into scope of inheritance tax from 2027.

Furthermore, 15% plan to prioritise enjoying their money in retirement over leaving an inheritance².  Priorities and needs can change over time.  Parents are having to balance between supporting the next generation and enjoying their own later life.

Thinking Ahead   

Subsequently, parents with younger children are thinking ahead and starting early.  Even small amounts can help build financial resilience for the next generation.  While keeping your own long-term plans on track. Junior ISA’s (JISA’s) and even child pensions are a great way to do this.  Moreover, providing a tax-efficient way to give children a head start. In summary, the potential benefits from compound interest or investment growth from the earliest moment possible.

Parent helping adult children. For help with your financial planning and retirement goals. From personal advice to peace of mind contact us today. Call 01603 957599 for your free initial consultation.

1 – Research conducted by Opinium between 15 January and 21 January 2026 among 4,000 UK adults. Results are weighted to be nationally representative of the UK adult population.

2- Opinium surveyed 2,000 UK adults nationwide between 11^th – 14^th November. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population.

Why seek financial advice? Here are six things independent Financial Advisers can do for you.

Personal Advice

Our Financial Advisers will source solutions that are best for you and your loved ones. We’ll ask questions to find out about you, your job, family and lifestyle. Subsequently, fully understanding your needs, aspirations and your future goals.

Market Knowledge

As independent Financial Advisers we are not tied to a particular provider. Moreover, this means we can research the whole of the market. Thus finding the best solutions for you.

Peace of Mind

We will find out what financial products you already hold, even if you can’t find the paperwork. We’ll advise you of any gaps in your financial planning. Also, we’ll advise you on things such as tax and trusts. In particular, as we know, this can appear complex. Talking to us will give you the peace of mind that all your needs have been considered.

Expert Help

We are specialists and will keep you up-to-date with the latest changes. We will take full responsibility for making the best choices for you.

Continued Support

We provide ongoing financial support to ensure your objectives and goals are met. For example, you may need to alter how much you’re saving towards your pension. Or, how much income you’re taking from your pension, because your situation changes.

Saving you time and money

With our financial advice, we will be able to guide you to the most cost-efficient solutions for you. Research from “What it’s worth: Revisiting the value of financial advice’. Concludes that those who took financial advice were, on average, over £47,000 better off after 10 years. In other words, considerably better off than those who did not take any financial advice.

Why seek financial advice? For help with financial planning and retirement goals. From personal advice to peace of mind contact us today. Call 01603 957599 for your free initial consultation.

4 Actions before end of Tax Year. Moreover, the tax year comes to a close on 5 April. Notably, it’s a great idea to get your finances in order. Additionally, to take advantage of any tax breaks that may be available.

1. Your ISA Allowance

Every tax year, you have an Individual Savings Account (ISA) allowance. This is still £20,000 for the 2026 year. The limit for those under 65 will be £12,000 for the following year. Any money you save in an ISA is tax-free. This includes interest and investment growth. If you haven’t used your allowance, it’s important to do so. For example, it doesn’t roll over to the next tax year.

2. Your Pension Contributions

Contributing to your pension is a tax-efficient way to save for the future. You can save up to £60,000 a year (or 100% of your earnings, whichever is lower). Also, you receive tax relief. Importantly, if you’re a higher-rate taxpayer, you could effectively reduce your tax bill. By simply making a pension contribution before the tax year ends

3. Your Tax Code

Furthermore, it’s worth checking your tax code. Just to make sure you’re being taxed correctly. In particular, if you’ve changed jobs or had multiple sources of income during the year. Notably, an incorrect tax code could mean you’re paying too much (or too little) tax.

4. Your Marriage Allowance

If you’re married or in a civil partnership and one of you earns less than the Personal Allowance (£12,570. For example, you may be able to transfer £1,260 of your Personal Allowance to your partner. As a result, this can reduce your tax bill by up to £252 a year.

For more information see our recent blog

4 Actions before end of Tax Year. For help with financial planning, contact us today. Call 01603 957599 for your free initial consultation.

5 ways to reduce Inheritance Tax. Inheritance Tax (IHT) can substantially reduce the value of your estate. Between April and August 2025, HM Revenue & Customs collected £3.7 billion in IHT.  Moreover, this equates to £0.2 billion more than the same period last year.

Notably, the rules can appear complex.  However, there are legitimate and effective ways to reduce the amount of IHT payable.

How Inheritance Tax Works

Under current tax rules, IHT is charged at 40% on the portion of your estate that exceeds £325,000.  This is known as the nil-rate band. Ultimately, this threshold is frozen until April 2030.

An additional £175,000 residence nil-rate band may apply. As a result of passing your main home to direct descendants. Married couples and registered civil partners can combine their allowances.  Subsequently, allowing up to £1 million of assets to be transferred tax-free.

If your estate falls below these combined thresholds, no IHT is payable. However, for larger estates, careful planning can significantly reduce the tax due.

1. Writing your Will

A valid Will is one of the most important tools in IHT planning. It ensures your assets are distributed according to your wishes.

Without a Will, your estate is distributed under the rules of intestacy.  However, assets held as joint tenants are excluded and automatically pass to the surviving owner. Subsequently, this may not reflect your intentions or make full use of available tax allowances.

2. Obtaining a Life Insurance Policy

A whole-of-life insurance policy can provide a lump sum to help beneficiaries pay an IHT bill.

For example, placing the policy in trust keeps the payout outside your estate.  As a result, it is not subject to IHT.   Moreover, this can normally be paid quickly without waiting for probate.

Furthermore, if your policy is not currently held in trust, insurers typically provide a simple form to arrange this. However, if you are seriously ill when the policy is transferred and die within seven years, its value may still be included in your estate.

Accordingly, the rules for placing a policy into trust. The amount treated as a gift is usually the higher of the policy’s surrender value or the total premiums paid. Ultimately, if you are in poor health, a value closer to the expected death benefit may be used. Ongoing premiums are also treated as gifts unless they qualify for an exemption.

3. Gifting during Your Lifetime

Making gifts during your lifetime can reduce the value of your estate.

• You can gift up to £3,000 per tax year. With the option to carry forward one unused year.
• Small gifts of up to £250 per recipient per year are exempt. Provided no larger gift is made to the same person.
• Larger gifts may fall outside your estate if you survive for seven years after making them.

Also, you can make regular gifts from surplus income.  This is as long as they do not affect your standard of living. For example, monthly payments to children or grandchildren may qualify. Notably, if they are funded from income rather than capital.

4. Leaving your Pension invested

Currently, pension funds are exempt from IHT.  Ultimately, making them one of the most tax-efficient assets to pass on to beneficiaries.

However, the government intends to include pensions within IHT calculations from April 2027.  Hence, this may change how retirement wealth is managed.

Until then, leaving pension funds untouched for as long as possible may be beneficial. Reviewing your retirement income strategy in light of upcoming changes can help ensure you access your assets in the most tax-efficient way.

5. Choosing to Marry or enter a Civil Partnership

Marriage or a registered civil partnership can offer significant IHT advantages.

Assets passed to a spouse or civil partner are exempt from IHT.  Subsequently, any unused allowances can be transferred to the surviving partner. This effectively doubles the available threshold. Ultimately, £1 million can pass tax-free when the nil-rate band and residence nil-rate band are used.

For unmarried couples, the rules are less generous. Transfers between partners are not automatically exempt, and allowances cannot be combined. For couples with substantial shared wealth, formalising the relationship can offer tax benefits.

5 ways to reduce inheritance tax. Effective Inheritance Tax planning can help you safeguard more of your wealth for your family. For further help, call us on 01603-957599 to discuss your circumstances and explore your options.  For your free initial consultation, contact us today.

Autumn Budget for 2025. In this update, we’ll outline some of the key changes and what they might mean for you. 

Tax threshold freezes extended until 2031

In brief, Income Tax thresholds will remain frozen for a further 3 years beyond 2028. Notably, this will remain in place until April 2031. Similarly, the Inheritance Tax (IHT) threshold freeze is extended from 2030 to 2031.

Tax rates on dividends, savings, and property income will rise by two percentage points 

Also, Tax rates are set to rise for dividends, savings, and property income.

• Dividends: From April 2026, ordinary and upper rates of tax on dividend income will rise by two percentage points. Notably, to 10.75% and 35.75% respectively. There is no change to the additional rate, which will remain at 39.35%.
• Property and savings: From April 2027, the rate of tax on property and savings income will increase by two percentage points. This will be across all tax bands to 22%, 42%, and 47% respectively.

It is proposed that 90% of taxpayers will still pay no tax on their savings. However, these changes are set to impact business owners and landlords.

ISA allowance will be reformed for under-65s

From April 2027, the Individual Savings Account (ISA) allowance will change for under-65s.

Currently, adults can contribute £20,000 across their ISAs, including Cash and Stocks and Shares ISAs, each tax year.

From April 2027, £8,000 of this allowance will be reserved exclusively for investments. This leaves an available £12,000 that savers can pay into their non-investment accounts, such as Cash ISAs.

Over 65s will continue to be able to save up to £20,000 in a Cash ISA each year.

The allowances for Junior ISAs and Lifetime ISAs are frozen until April 2031. Notably, at £9,000 and £4,000 a year, respectively.

Salary sacrifice on pension contributions to be capped at £2,000

The government will charge employer and employee National Insurance contributions (NICs) on pension contributions above £2,000 a year made via salary sacrifice. This will take effect from 6 April 2029.

It is cited that many of those on low and middle incomes will be able to continue using salary sacrifice as normal. Meanwhile, high earners can expect to pay increased NI.

New “mansion tax” on high-value properties

A “mansion tax” will affect the top 1% of properties. The new property surcharge will be paid alongside Council Tax.

In summary, there will be four price bands. Thus, £2,500 for a property valued between £2 million and £2.5 million. For properties valued more than £5 million, the levy will be £7,500.

Welfare reforms expected to increase by 2029/30

The two-child benefit cap will be removed.

State Pension: Committing to the triple lock 

The government confirmed its commitment to the triple lock. From April 2026, this will increase the basic and new State Pension by 4.8%. Subsequently, giving an additional £575 per year to pensioners, depending on their entitlement.

National Living Wage

Increases to both the National Living Wage (NLW) and National Minimum Wage (NMW). 

From 1 April 2026, the NLW paid to workers aged 21 and over will rise by 4.1%. Notably, from £12.21 to £12.71 an hour. This increases annual income by approximately £900 a year for full-time employees.

For those aged 18 to 20, the NMW will rise by 8.5% from £10 to £10.85 an hour. Therefore, equivalent to around £1,500 a year if working full-time.

For 16- and 17-year-olds, and those on apprenticeships, the NMW will rise by 6%. Rising from £7.55 to £8 an hour.

Other announcements that may affect you

• Household energy bills will fall. The Energy Company Obligation (ECO) scheme is being scrapped. Hence, families will save £150 a year, on average, in 2026.
• New tax on electric vehicles. The Electric Vehicle Excise Duty (eVED) will come into effect in 2028. This equates to 3p per mile for battery electric cars and 1.5p per mile for plug-in hybrids. The rate per mile will increase annually in line with the CPI.
• Fuel duty will be frozen until September 2026. In addition, a new “fuel finder” will help drivers find the cheapest fuel. This will save the average household £40 a year.
• Reducing the levy threshold on soft drinks. From 1 January 2028, the sugar tax will also be applied to milk-based drinks. This includes bottled milkshakes and lattes.
• A spousal exemption for agricultural and business asset IHT relief. Unused combined business and agricultural asset IHT relief will become transferable between spouses and civil partners.
• Tobacco Duty and Alcohol Duty will both be uprated. Tobacco Duty will be uprated as announced last year, and Alcohol Duty will now rise with inflation.
• Rising taxes on online gambling. From April 2026, Remote Gaming Duty will increase by 21% to 40%. A new Remote Betting Rate set at 25% will be introduced from April 2027. However, horse race betting will be exempt from the changes.

Please note

All information is from the Budget documents.

The content of this Autumn Budget summary is intended for general information purposes only. The content should not be relied upon in its entirety. And shall not be deemed to be or constitute advice.

While we believe this interpretation to be correct, it cannot be guaranteed. Subsequently, we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Accordingly, please obtain professional advice before entering into or altering any new arrangement.

Autumn Budget for 2025. To understand how we can help you with your financial planning and long-term retirement goals, call us today. For a free initial consultation, call us on 01603-957599.