Over the last few months, we’ve explored several core themes around retirement, from sustainable income and the State Pension to inflation and longevity. At Ifamax Wealth Management, our journey began more than 20 years ago, and from the very start, we approached financial planning differently.

How Financial Planning Has Evolved

Financial advice has changed dramatically over the last few decades:

• 1990s and earlier: The industry focused heavily on selling financial products.

• 2000s: The focus shifted towards investment expertise and portfolio construction.

• Today: True financial planning centres on people, their goals, values, priorities and fears, not just money.

When Ifamax was founded, we were among the early firms to recognise that great financial advice must start with understanding the person first, not with selling a product or chasing the highest investment return.

For more than two decades, we’ve walked alongside clients through redundancy, career change, retirement transitions, illness, bereavement and everything in between. That human connection is the foundation of our work.

Retirement Is Changing

Retirement today looks nothing like it did a generation ago:

• Nearly 20% of the UK population is now over 65.

• Around 14 million people are currently in retirement.

• There is no longer a single “retirement age.” Many people phase into it gradually.

Despite this, many of the numbers we see in advertising or simple “magic figures” still assume everyone lives the same retirement. They don’t. And they never have.

The Retirement Living Standards provide useful benchmarks, but they can’t tell you:

• How you want to spend your time

• What brings you joy

• Who you want to support

• Your hopes, fears or personal ambitions

That is why at Ifamax, our Bristol-based financial planners have taken the approach we established 20 years ago and evolved it specifically for modern retirement planning.

Your Retirement: Understanding What Matters Most

Before retirement, the focus is often on accumulating assets, such as pensions, ISAs, savings, and investments.

But the moment you retire, the focus shifts. It becomes about:

• Sustainable income

• Maintaining your lifestyle

• Managing tax efficiency

• Ensuring your wealth lasts for life

Many people underestimate this shift, but it is one of the most critical transitions in financial planning.

To create a retirement that genuinely works for you, we spend time understanding:

• What retirement means to you

• What your ideal week or month looks like

• What you’re excited about

• What you’re worried about

• How your needs might change over time

For long-standing clients, we have walked this journey together for many years. For new clients, our process often feels refreshingly different from the traditional financial advice experience.

A Retirement Built Around You

We believe that a good retirement is personal, not something defined by generic figures or one-size-fits-all rules.

Only when we understand your vision of a fulfilling life can we:

• Map out your essential and discretionary spending

• Build a sustainable withdrawal strategy

• Integrate the State Pension

• Protect against inflation

• Plan for health changes

• Ensure you can grow, protect and pass on your wealth

• Stress-test your plan to ensure it lasts

This is how we deliver a retirement plan that is robust, flexible and deeply aligned to your values.

The Ifamax Approach: 20 Years of Helping Clients Retire With Confidence

As noise and uncertainty around retirement continue to increase, rising pension ages, inflation pressures, tax changes and market volatility, our role is to provide clarity and calm.

What sets Ifamax apart is not just our heritage, but how we’ve evolved our financial planning philosophy over time. Our approach blends:

• Evidence-based investment strategies

• Tax-efficient planning

• Cashflow modelling

• Behavioural insight

• A deep understanding of who you are

We believe retirement planning shouldn’t just be about making the numbers work—it should be about helping you build a retirement that feels meaningful, secure and entirely personal to you.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

State Pension Changes: What You Need to Know and How They Affect Your Retirement Plan

The State Pension has been part of the UK’s financial landscape for more than a century, but its purpose and the way we plan around it have changed dramatically over time. At Ifamax Wealth Management, our Bristol-based financial planners help clients understand how the State Pension fits alongside their broader retirement strategy, ensuring it becomes a foundation for a secure, tax-efficient future.

Below, we outline the key changes, what the State Pension looks like today, and why it remains such an essential part of your long-term plan.

A Brief History of the UK State Pension

The modern State Pension has evolved significantly since its introduction:

1908 – The Old Age Pensions Act

• The first universal state pension paid 10–25 pence per week.

• Only available to people aged 70+ of “good character.”

• Payments began in January 1909, known nationally as Pensions Day.

1946 – National Insurance Act

• Introduced a contributory system funded by National Insurance.

• From 1948: Men could claim at 65, women at 60.

2016 – The New State Pension

A flat-rate system replaced the old basic and additional pensions.

• Applies to:

• Men born on or after 6 April 1951

• Women born on or after 6 April 1953

• 35 qualifying years of NI for a full pension.

• 2025–26 maximum: £230.25 per week.

The Triple Lock Guarantee

The State Pension continues to rise each year by the highest of:

• Inflation (CPI),

• Average wage growth, or

• 2.5%.

This helps preserve its real value in retirement, although political debate about its long-term sustainability continues.

State Pension Age: Rising Gradually

The current State Pension age is 66.

Scheduled increases:

• Age 67 between 2026 and 2028

• Age 68 between 2044 and 2046

This reflects improvements in life expectancy.

Life Expectancy Has Transformed the Purpose of the State Pension

When the pension was introduced, relatively few people lived long enough to receive it. Today, many retirees can expect 20–30+ years of retirement, making long-term planning essential.

Why the State Pension Still Matters

The full State Pension provides just under £12,000 per year, or around £24,000 for a couple. While nobody would rely solely on this for their entire retirement lifestyle, it remains:

• Guaranteed

• Inflation-linked

• Reliable

• A core building block that reduces pressure on your investment portfolio

At Ifamax, we treat the State Pension as the foundation layer in your retirement plan—helping you build a reliable, sustainable income on top through tax-efficient savings, investments, pensions and cashflow planning.

The Challenges to Plan Around

1. Rising State Pension Age

Many people will now retire years before they are eligible to claim, creating a funding gap.
Your retirement income plan needs to clearly account for this.

2. Sharp Drop in Income for Couples on First Death

When one partner dies, the State Pension stops—it isn't passed on.

This can create a significant drop in household income at precisely the time when financial stability is vital.

Understanding this risk early allows us to plan around:

• Investment income,

• Cash reserves,

• Tax-efficient withdrawals,

• Protection options where appropriate.

How Ifamax Helps You Build a Secure, Confident Retirement

At Ifamax, retirement planning doesn’t start with numbers—it starts with you.

We take time to understand:

• What retirement looks like for you,

• Your values, aspirations and lifestyle,

• Your essential and discretionary costs,

• How long your income needs to last,

• How you want to protect and pass on your wealth.

Only then do we map out:

• Your State Pension entitlement,

• When you can claim it,

• How it integrates with personal pensions and investments,

• Tax-efficient withdrawal strategies,

• How to protect your income through every stage of retirement.

For many clients, seeing the State Pension clearly built into their cashflow plan provides huge reassurance. It is a stable anchor that allows your wider investments to work harder and more effectively for the long term.

Final Thoughts

Many people underestimate the importance of the State Pension in their retirement planning. At Ifamax, we see it as a valuable, guaranteed building block, one that supports the long-term strategies we create to help you grow, protect and ultimately pass on your wealth.

If you're unsure how the State Pension fits into your retirement picture, or you want to build a clear, confident and tax-efficient plan, our Bristol-based financial planners are here to help.

Risk warning    

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed. 

The 2025 Budget introduced several significant tax, pension, property and investment reforms. While Budgets often create noise and speculation, the real value lies in understanding what has genuinely changed and how these measures may influence long-term financial planning.

The team at Ifamax Wealth Management have put together a clear and straightforward breakdown of the most relevant announcements.

ISA Reform: New Rules for Cash ISAs

From April 2027, Cash ISA rules will change:

• Under-65s will have a £12,000 Cash ISA limit.

• Over-65s will keep the full £20,000 cash allowance.

• The overall ISA allowance remains at £20,000.

These changes may influence how individuals choose to balance cash and investments inside ISAs in the future.

Higher Taxes on Property, Savings and Investments

The Budget confirmed several tax increases that will affect taxable investments, rental property owners and company directors receiving dividends.

Headline changes include:

• Higher rates of property income tax for landlords.

• Increased dividend tax rates from 2026.

• Higher savings income tax from 2027.

For those with rental portfolios or significant holdings in general investment accounts, these changes will increase the tax paid each year.

Salary Sacrifice for Pensions: Major Adjustments from 2029

A notable change has been announced for salary-sacrificed pension contributions:

• From April 2029, only the first £2,000 of salary sacrifice pension contributions each year will receive National Insurance relief.

• Contributions above this level will incur employer and employee NICs.

This represents a meaningful shift for higher earners or for those who use bonus sacrifice as part of their pension funding approach.

Pensions and Inheritance Tax

The government has introduced changes to the way pensions may be treated for inheritance tax purposes from April 2027; personal representatives will be able to direct pension scheme administrators to withhold 50% of taxable benefits for up to 15 months and pay inheritance tax in certain circumstances. Personal representatives will be discharged from liability for payment of Inheritance Tax on pensions discovered after they have received clearance from HMRC.

Additional areas to note:

• The nil-rate band and residence nil-rate band remain frozen until 2031.

• Additional rules affect agricultural, business and offshore assets.

These measures highlight the continued importance of clear, up-to-date estate paperwork and an awareness of potential IHT exposure.

VCTs and EIS: Important Changes for Tax-Efficient Investors

Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EIS) remain an important part of the UK’s tax-incentive landscape.

Key changes announced:

• VCT Income Tax Relief will fall from 30% to 20% from April 2026.

• Investment limits for VCT/EIS companies have increased.

The reduction in relief will alter the tax incentives for future VCT investments, particularly for those who regularly use them as part of a wider tax-planning strategy.

High-Value Property: New Annual Surcharge

From 2028, a new annual charge will apply to high-value properties, starting at £2 million. The new charges start at £2,500 per year, rising to £7,500 per year for properties valued above £5 million.

While this affects a relatively small number of properties, it will add to ongoing ownership costs.

Electric Vehicles: Per-Mile Charging Introduced

A new system of per-mile charging for electric vehicles begins in 2028:

• Fully electric vehicles: 3p per mile

• Plug-in hybrids: 1.5p per mile

This will form part of the overall cost of ownership for EV users going forward.

Final Thoughts

This year’s Budget continues the trend of increasing taxation on investments, property income and higher earners, while tightening several long-standing reliefs. At the same time, pensions and inheritance tax remain central themes in long-term planning.

As ever, the impact of any Budget will vary from person to person depending on circumstances, goals and financial priorities. Understanding the details is the first step towards making informed decisions when the time is right.

At Ifamax Wealth Management, our focus is on understanding your values, goals, and aspirations. We take a long-term approach to planning, recognising that Budgets will come and go — and while they may require occasional adjustments, they rarely derail a well-structured plan.

If you would like to speak to the team about your financial journey, contact us today and begin your journey with Ifamax.

Building a Business Is Hard Work — Turning It Into a Retirement Plan Shouldn’t Be 

Building a business is rarely straightforward. In the first year, around 94% of new businesses survive; however, by the fifth year, this drops to approximately 40%, according to the Office for National Statistics. 

For many entrepreneurs, every spare penny is invested in building and sustaining the business. A study by Rathbones found that 83% of family-run business owners rely on their business to fund retirement, while earlier research showed that 59% of SMEs expect to sell their business to finance life after work. 

It’s understandable, but it’s not always the most tax-efficient or reliable path to long-term financial security. 

The Unique Retirement Challenges Business Owners Face 

For employees, retirement savings are straightforward: your employer makes regular contributions to your pension each month, and you benefit from a predictable income. 

For business owners, it’s far more complex. You’re responsible for every aspect of your income, from cash flow and payroll to tax efficiency. In the early years, income can be inconsistent, making it difficult to commit to regular savings. 

Even once the business is more established, it’s easy to assume “the business will fund my retirement.” However, this can be risky, both from a tax perspective and a wealth preservation standpoint. 

The Opportunity – Using Tax-Efficient Strategies 

Pension Contributions 

For business owners, pension contributions are one of the most tax-efficient ways to extract profits from the company. 

• Employer pension contributions reduce taxable profits, lowering corporation tax. 

• The funds grow free from capital gains and income tax within the pension wrapper. 

• They are also protected from business liabilities, safeguarding your future wealth. 

Profit Extraction Strategies 

At Ifamax Wealth Management, we work closely with business owners and their accountants to determine the most efficient ways to extract profits, whether through salary, dividends, or employer pension contributions. 

The right blend depends on your circumstances, tax position, and long-term goals. A tailored approach ensures you retain more of what you earn. 

Business Sale Planning 

When it’s time to sell or step back, Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs’ Relief, can make a substantial difference. 

Under current rules (2025): 

• There is 14% Capital Gains Tax (CGT) on qualifying gains from 6 April 2025 and 18% from 6 April 2026. For higher-rate tax-payers, gains that do not qualify for BADR will be subject to a higher rate of 24% on chargeable assets. 

• There’s a lifetime limit of £1 million in qualifying gains. 

• It applies to the sale of shares in your trading company or business assets if you’re a sole trader or partner. 

To qualify, you must: 

• Have owned the business or shares for at least two years. 

• Be an employee, director, or partner in the business. 

• Hold at least 5% of shares and voting rights (if selling shares). 

How it fits into retirement planning: 

• It enables you to extract more value from your business by reducing tax on gains. 

• The proceeds can be reinvested into pensions or investment portfolios tax-efficiently. 

• When combined with pension contributions and ISA planning, BADR can be a cornerstone of a tax-efficient retirement strategy. 

Investment Structures 

Your retirement plan should be as unique as your business. Whether you use personal pensions, ISAs, or General Investment Accounts (GIAs), the key is how these wrappers are structured to deliver tax-efficient income in retirement. 

A good plan doesn’t just look at saving; it also considers how you’ll generate income later while minimising tax exposure. 

How Ifamax Helps 

 At Ifamax Wealth Management, we help business owners: 

• Align business and personal financial goals. 

• Build bespoke retirement strategies through our Centralised Retirement Proposition (CRP®). 

• Adapt plans as tax rules, business performance, and lifestyle goals evolve. 

With proper planning, your business can not only fund its present, but also its future. 

Conclusion 

Your business is your legacy. With expert guidance and strategic planning, you can transform that legacy into a tax-efficient retirement that provides you with freedom, flexibility, and peace of mind. 

If you’re a business owner in Bristol looking to retire efficiently, we’ll help you grow, protect, and pass on your wealth, tax-efficiently. 

Risk warning    

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed. 

The Silent Threat to Your Retirement 

When planning for retirement, most people focus on market risk. But one of the biggest threats to your future lifestyle isn’t stock market volatility; it’s inflation. 

We often hear people say, “It’ll be fine.” However, over the past 25 years (2000 to 2025), the prices of everyday goods and services have increased by approximately 91.1% (Source: Bank of England). 

To put that into context: 

• In 2000, petrol cost just 83p per litre. 

• A cinema ticket averaged £4.70. 

• And £100 covered a full family supermarket shop. 

Fast forward to today, and those same purchases cost almost double. 

What Inflation Means for Retirees 

If we assume a retirement income of £40,000 in 2000. With an average inflation rate of 2.56%, that same £40,000 would now need to be around £70,000 to maintain the same purchasing power. 

Inflation quietly erodes the value of money, and for retirees who rely on their savings or pensions, it can have a profound impact on their financial security. 

Why It’s Especially Dangerous in Retirement 

If the average retirement lasts around 25 years, and inflation continues at even a modest rate, your future spending power could be cut nearly in half. 

Although the State Pension has generally kept up with inflation, most private pensions and investment income have not. 

As you age, you may spend less on travel and entertainment, but other costs, such as healthcare and support, often increase. Ignoring inflation can make the later years of retirement difficult to navigate. 

Common Misconceptions 

• “My pension is index-linked.” 
  Not always. Unless your pension is specifically set to increase in line with inflation, your income may remain fixed while prices rise. 

• “I’ll just spend less later in life.” 
  While discretionary spending may decrease, essentials such as utilities, food, and care often become more expensive. 

How We Help Protect Against Inflation 

At Ifamax Wealth Management, we’ve built a Retirement Strategy designed to evolve with your needs. 

Our approach incorporates inflation from the outset, utilising robust planning tools and long-term assumptions to model your retirement journey. Regular reviews ensure your plan adapts to: 

• Changes in inflation and the economy 

• Lifestyle shifts and spending needs 

• New opportunities for tax-efficient income 

By maintaining a dynamic, forward-looking strategy, we help you protect your lifestyle and preserve your wealth throughout retirement. 

Conclusion 

Inflation is inevitable, but it doesn’t have to derail your retirement. With thoughtful planning and proactive reviews, you can ensure your money keeps pace with the cost of living. 

If you’re approaching or already in retirement, we can help you design an income strategy that stands the test of time. 

Grow, protect, and enjoy your wealth with confidence. 

Risk warning    

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.    

“After decades of saving, how do you turn your pension into a reliable income for life?” 

Most retirees today rely on the money they’ve saved and invested, which means the focus has shifted from accumulating wealth to decumulating it sustainably. 

At Ifamax Wealth Management, we have developed a Centralised Retirement Proposition (CRP®) designed to align with the FCA’s Thematic Review of Retirement Income Advice (TR24/1). Our framework helps ensure clients can enjoy life with confidence, knowing their income strategy is robust, flexible, and sustainable. 

What Are Your Options for Drawing an Income in Retirement? 

It’s easy to assume that your pension is your only source of income in retirement. In reality, it’s just one piece of the puzzle. 

Within your pension itself, you have three main options: 

• Annuity – Provides a guaranteed income for life, removing market risk but reducing flexibility. 

• Pension Drawdown – Keeps your pension invested, allowing flexible withdrawals that can adapt over time. 

• Lump Sum Withdrawals – Up to 25% tax-free, with the rest taxed as income. 

However, many retirees also have ISAs, general investment accounts (GIAs), or cash savings, all of which can form part of a tax-efficient income strategy. 

For example: 

• ISA income is tax-free. 

• Dividend, interest, and capital gains allowances can supplement pension income. 

• Unused tax-free pension cash can provide a buffer in lower-income years. 

A holistic strategy that blends these sources helps reduce tax, manage risk, and extend the life of your savings. 

How Much Can You Safely Withdraw Each Year? 

This question has sparked debate for decades: “What’s a safe withdrawal rate for UK retirees?” 

A helpful starting point is the “4% rule”, derived from William Bengen’s 1994 U.S. research, which found that withdrawing 4% of a balanced portfolio in the first year of retirement (and increasing it with inflation each year) could allow savings to last 30 years, even through major market downturns. 

While this was based on American data, UK planners often use it as a guide rather than a guarantee. Factors such as fees, longevity, inflation, investment strategy, and personal flexibility all influence sustainability. 

At Ifamax, we treat 4% as a guardrail, not a goal. Using advanced cashflow modelling, we test your portfolio against different market conditions and review it annually (or sooner if circumstances change). 

Our Decumulation-at-Risk Policy identifies clients who may be drawing unsustainably high income levels and helps them make adjustments to stay on track. The key is ongoing monitoring and flexibility, not a static rule. 

How to Keep Your Income Sustainable Over Time 

The FCA expects firms to clearly distinguish between accumulation (building wealth) and decumulation (spending wealth). That doesn’t necessarily mean using completely different investments, but it does mean having a different strategy and mindset. 

Key elements include: 

• Diversification – Spreading investments across asset classes to manage risk and inflation. 

• Blended income sources – Combining guaranteed income (like annuities) with flexible drawdown and other assets. 

• Tax-efficiency – Managing withdrawals across pensions, ISAs, and GIAs to minimise tax drag. 

• Regular reviews – Adjusting withdrawals as markets, inflation, and lifestyle evolve.

Research from Vanguard (2022) and the International Longevity Centre (ILC) shows that retirees who receive ongoing advice are significantly more likely to maintain sustainable income levels throughout retirement. 

Why Ongoing Financial Planning Is Key 

It’s tempting to see retirement planning as a one-off exercise. But as life changes, so should your income strategy. 

• Markets fluctuate. 

• Tax rules evolve. 

• Spending patterns shift — often higher in early retirement and lower later on. 

Our annual review process ensures your income plan adapts to these realities. We model future projections, stress-test different scenarios, and make recommendations that align with your goals, risk tolerance, and evolving lifestyle. 

Many clients tell us that the real value isn’t just in the numbers, but in the peace of mind that comes from knowing someone is monitoring their plan and helping them make informed, confident choices. 

Summary – Turning Your Pension into Freedom, Not Uncertainty 

Retirement today demands more personal responsibility than ever before. There’s no single right answer, only the strategy that’s right for you. 

At Ifamax Wealth Management, our Centralised Retirement Proposition is built around the FCA’s expectations and the principle of sustainable income for life. 

We help you: 

• Combine guaranteed and flexible income streams 

• Maximise tax efficiency across all your assets 

• Monitor your plan to ensure your money lasts as long as you do 

Your retirement should be about freedom, not uncertainty. 

Speak to a Bristol-based financial adviser today to create your personalised retirement income plan. 

Risk warning   

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.   

What Is a ‘Freedom Date’ – and Why Does It Matter? 

Retirement used to mean a fixed birthday, 60, 65, or whatever your employer decided. Today, that traditional idea has evolved. Retirement is no longer an age; it’s a financial milestone, your freedom date. 

Your freedom date is the point at which work becomes optional rather than essential. It’s when you can confidently say, “I have enough to live the life I want.” 

The question is: What would financial freedom look like for you? 

For some, it’s early retirement and travel; for others, it’s reducing hours or changing careers. Whatever your version, identifying this point is the first step towards taking control of your future. 

How Do You Know If You Can Afford to Retire? 

The question “When can I afford to retire?” is one of the most common we hear from clients. 

Retirement today can last 25–35 years, potentially as long as your working life. Understanding how much you’ll need depends on your goals, lifestyle, and how your spending might evolve. Building a clear financial map of your journey helps reveal what’s possible and what may need adjusting. 

To start, the PLSA Retirement Living Standards provide helpful income benchmarks for a “minimum,” “moderate,” and “comfortable” lifestyle. However, remember that these are only guidelines. Your retirement will be as individual as you are. 

Another simple benchmark is the 4% withdrawal rule, which suggests you could sustainably withdraw around 4% of your invested assets each year. While this rule is debated and should always be tailored to your specific circumstances, it can provide a sense of what your savings might yield as income. 

What Factors Determine Your Retirement Date? 

 “How can a financial planner help me choose the right retirement age?” 

 Before we can answer that, it helps to picture what the different stages of retirement might look like for you: 

• The ‘Go-Go’ Years – The active phase at the start of retirement, when you may travel, explore new hobbies, or spend more time with family and friends. 

• The ‘Slow-Go’ Years – The middle years, when life becomes more local and routine-focused. 

• The ‘No-Go’ Years – Later life, when health, support, and stability become higher priorities. 

Once we understand your expected lifestyle trajectory, a financial planner can assess your current savings, pensions, and investments and project what income they could sustainably provide. They’ll also help structure your plan in the most tax-efficient way possible, ensuring your money lasts as long as you do. 

At that stage, the conversation naturally turns to whether your target retirement date is achievable or whether adjustments could bring it forward. 

What If You’re Not Quite There Yet? 

“Can small adjustments today make a big difference to your future?” 

Absolutely. If your current plan doesn’t quite align with your preferred freedom date, your financial planner can model ways to close the gap. 

That might mean: 

• Increasing pension contributions, perhaps via salary sacrifice. 

• Making use of unused ISA or pension allowances. 

• Reviewing investment strategies to align risk and growth potential. 

• Reducing unnecessary costs or rethinking spending priorities. 

Even small, consistent changes today can bring your financial freedom several years closer. 

How Ifamax Helps You Find Your Freedom Date 

At Ifamax Wealth Management, we’ve been helping individuals and families plan and enjoy their retirement for over 20 years. Our role is to help you define, visualise, and achieve your version of financial freedom. 

We integrate the findings from the FCA’s recent thematic review on retirement advice into our planning process to ensure robust, client-centred outcomes. 

Our approach includes: 

• Cashflow forecasting to model future income and expenses. 

• Scenario testing (“what if” modelling) to explore different retirement ages or lifestyle goals. 

• Tax-efficient income planning to help you preserve and pass on your wealth. 

• Ongoing reviews to adapt your plan as life changes. 

Ultimately, our goal is to provide clarity, confidence, and peace of mind, so you can focus on enjoying life, not worrying about money. 

A Plan That Gives You Clarity and Confidence 

Knowing when you can afford to retire isn’t just about numbers — it’s about freedom, choice, and confidence. With the right advice and a clear plan, you can look ahead to retirement with certainty and excitement rather than anxiety. 

Ready to find your freedom date? 

Book a retirement planning consultation with one of our Bristol-based financial planners today. 

Risk warning   

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

Retirement is one of the most significant challenges we will face in our lives. The landscape has undergone substantial changes over the past generation. Where our parents or grandparents might have worked for one employer and received a guaranteed pension for life, most of us now retire with a pot of money that needs to provide income for decades.

The question is no longer “When can I retire?” but “How do I make my money last?”

The New Challenges of Retirement

The traditional retirement age of 65 is moving upwards. The state pension age is heading to 68 and may rise into the 70s. At the same time, we are living longer. While that’s good news, it brings financial challenges:

• Longevity risk – ensuring income lasts for a 25–30 year retirement.

• Inflation – rising costs erode purchasing power.

• Market volatility – investments can go up and down, affecting withdrawals.

• Tax changes – allowances and rules continue to evolve.

These factors mean retirement planning today requires a different approach.

Strategies for Building Sustainable Income

The FCA Thematic Review on retirement income emphasises sustainability. In the past, retirement income was guaranteed through defined benefit pensions. Today, most people rely on defined contribution pensions, ISAs, and investments.

Creating sustainable income means:

• Diversifying income sources.

• Setting realistic withdrawal strategies.

• Managing sequencing risk (the order of returns).

• Keeping a balance between growth and security.

Tax Efficiency in Retirement

Sustainability is only half the picture; how you draw income matters just as much.

• Using pension tax-free cash wisely.

• Drawing from ISAs for tax-free income.

• Making the most of personal allowances, dividend allowances, and capital gains allowances.

A carefully structured withdrawal plan ensures you pay no more tax than necessary, helping you keep more of your money.

Lifestyle and Mindset

Retirement is deeply personal. It’s not just about the numbers, but about your values, aspirations, and the life you want to create.

Some people want to retire early and travel. Others prefer to continue working part-time or focus on family. Your financial plan should reflect the retirement that matters to you.

Why Ongoing Advice Matters

Planning for retirement isn’t a one-off exercise. Circumstances change—both before and after you retire.

• Before retirement – plans may need adjusting as your career, business, or savings change.

• In retirement, income needs, health, and tax rules all evolve. Ongoing advice helps you adapt, stay tax-efficient, and maintain a sustainable income.

A trusted financial planner in Bristol provides the reassurance that you’re not navigating these decisions alone.

Conclusion & Next Steps

Retirement today is more complex—but also more flexible—than ever before. With the right plan, you can create a sustainable, tax-efficient income that aligns with your lifestyle goals.

If you’d like to discuss your retirement plans, contact our Bristol-based financial planners at Ifamax Wealth Management today.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

The recent FCA Thematic Review on retirement income highlights a simple truth: delivering income in a tax-efficient way can make a big difference to your long-term wealth. But tax planning isn’t just for retirement—it’s just as important in the years leading up to it.

We all have to pay tax. The key is to use allowances and structures wisely so you keep more of what you earn and grow the retirement you want. That’s why tax-efficient investing is central to both wealth management and financial planning.

What Is Tax-Efficient Investing?

At its heart, tax-efficient investing is about structuring your savings and investments to minimise unnecessary tax.

It’s easy to get drawn into complex schemes, but what matters most is making sure each decision aligns with your financial goals and risk profile. A financial planner ensures the strategy works for you—not just for the short term, but across your whole financial journey.

Core Tax-Efficient Strategies in the UK

For most people, the two most powerful tools are:

• ISAs – tax-free growth and income. Not just for saving, but also an efficient income source in retirement.

• Pensions – upfront tax relief on contributions, tax-free growth, and the 25% tax-free cash allowance in retirement.

More advanced planning can include:

• VCTs & EIS – higher-risk investments with generous tax advantages, often suitable for business owners and high earners.

• Business Relief – helping reduce inheritance tax liability.

• Trusts – supporting estate planning and passing on wealth.

And don’t forget annual allowances:

• Capital Gains Tax allowance.

• Dividend allowance.

• Personal allowance.

The right combination depends on your income, assets, and long-term goals.

Who Benefits Most From Tax-Efficient Planning?

Everyone can benefit. For example:

• Using an ISA to reduce taxable income in retirement applies to most people.

• Passing on wealth tax-efficiently supports families across generations.

For those with more complex financial situations—such as business owners, lawyers, law firm partners, and entertainers—planning can be especially valuable. It helps smooth fluctuating income, build retirement savings outside the business, and protect wealth for the future.

Tax efficiency isn’t just for the wealthy. It’s about making sure more of your money works for you.

Common Mistakes to Avoid

• Focusing too much on tax and forgetting the bigger financial plan.

• Choosing strategies that don’t fit your risk tolerance.

• Missing allowances year after year.

Tax doesn’t have to be complicated, but ignoring it can mean missing out on long-term gains.

The Role of a Financial Planner

A financial planner doesn’t replace your accountant or solicitor—but works alongside them to make sure your plan is joined up.

Tax-efficient investing is just one part of the bigger picture. A good planner ensures that your tax strategy aligns with your retirement, investment, and estate planning goals.

Conclusion & Next Steps

The returns you see on a statement are important—but what really matters is how much you keep after tax. By using allowances and structures effectively, you can grow, protect, and pass on your wealth more efficiently.

If you’d like to explore how tax-efficient planning could work for you, contact our Bristol-based financial planners at Ifamax Wealth Management today.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

A common question we hear is: “Why should I pay a regular fee for financial planning? What do I really get for this?”

Over the last 30 years, financial advice has evolved—from selling products, to investment specialists, to today’s holistic financial planning. The evolution reflects a simple truth: to reach any destination, we need a plan. And since life, markets, and tax rules are all subject to change, that plan must be regularly reviewed and updated.

Paying a regular fee isn’t just about cost—it’s about protecting your wealth, adapting to change, and giving you peace of mind that your long-term goals are still on track.

What Is a Financial Review?

Think of it like servicing your car. If you paid a garage an annual fee that covered one or two check-ups, plus unexpected visits if a warning light appeared, you’d see the value.

Financial planning works in much the same way.

At a financial review, your financial planner will:

• Ask about changes in your circumstances and goals.

• Check where you are currently positioned.

• Review investments, retirement planning, and tax strategy.

Like checking the oil and water in your car, these reviews ensure your financial plan is running smoothly until the next service.

Why Regular Reviews Matter

Between one year’s review and the next, many things can change:

• Your life – a new job, business, family, or health event.

• Tax and regulations – budget updates can open or close opportunities.

• Markets – investments may need to be rebalanced.

• Retirement planning – as you move from building wealth to drawing income.

• Risk profile – your tolerance may change over time.

Some years you may need little help; other years you may need significant guidance. Regular reviews give you confidence that your plan adapts as life unfolds.

How Often Should You Review?

As a minimum, every 12 months. But additional reviews are available whenever circumstances change. The right frequency depends on your needs—but it’s better to have the next meeting in the diary than risk falling off track.

Benefits of Staying on Track

Doing it yourself may look cheaper, but it also means:

• You carry the responsibility to stay on top of allowances, tax rules, and risks.

• You need to dedicate time to review and adjust regularly.

With regular reviews, your financial planner ensures:

• Tax-efficient planning is always up to date.

• Investment strategies remain appropriate.

• You’re maximising opportunities.

• You can focus on life, not financial admin.

In short, it’s about growing, protecting, and preserving wealth.

Working With a Financial Planner in Bristol

At Ifamax Wealth Management, we provide face-to-face reviews with clients across Bristol and the South West. Many of our clients are barristers, business owners, partners of law firms, and professionals who value local expertise and long-term relationships.

We also serve clients in London and the Home Counties, and we’re equally happy to meet online via Teams or Zoom for convenience.

Conclusion & Next Steps

When weighing the cost of financial planning, remember the value: protecting your wealth, maximising opportunities, and enjoying peace of mind.

At Ifamax, we always schedule the next review in advance, so your plan never loses momentum.

Would you like a second opinion on your financial plan? Contact our team today and discover how a Bristol-based financial planner can help keep your future on track.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

Why Business Owners Need a Different Approach to Financial Planning

As an employee, life is relatively straightforward, you work, you get paid, and your employer takes care of things like pensions and tax deductions.

For business owners, it’s a very different story. You’re not only focused on growing your company but also managing complex financial decisions, supporting employees, and balancing business risks with your financial security.

The challenge? Business and personal finances often become intertwined. While this might work in the early days of a business, failing to separate them as your company grows can lead to real problems, especially if unexpected challenges arise.

In this blog, we’ll explore key strategies to help business owners manage their finances effectively, protect their wealth, and plan for a secure future.

Separating Personal and Business Finances

Running a business comes with risk. According to The Telegraph, 60% of new businesses fail within three years, and ONS data shows that only 42.5% survive beyond five years.

This isn’t meant to discourage, but to highlight why protecting your personal wealth is crucial. In the early stages, you may invest everything into your business. As it grows, it’s essential to separate your personal finances from your business assets. This way, if something unexpected happens, your personal financial security isn’t compromised.

Tax-Efficient Planning

Thoughtful tax planning can benefit you and your business.

Strategies may include:

• Pension contributions: Using company funds to make pension contributions can be a highly tax-efficient way of building personal wealth.

• Salary vs dividends: Structuring your income effectively can reduce tax liabilities.

• Using allowances: Taking advantage of personal and business tax reliefs.

A financial planner working alongside your accountant can ensure these strategies are optimised for your situation.

Retirement Planning for Business Owners

Over 3 million self-employed people in the UK aren’t saving into a pension (gov.uk), and around 30% of business owners plan to sell their businesses to fund retirement (Mazars).

Here’s the problem:

• You don’t know what your business will be worth when it’s time to sell.

• Your view of its value may be very different to what the market is willing to pay.

Relying solely on selling your business for retirement is risky. Building personal wealth outside the business, through pensions, ISAs, and other investments, ensures that your retirement doesn’t depend entirely on an eventual sale. Any proceeds from the company then become a bonus, not your only lifeline.

Protecting Your Business and Family

What happens if you can’t run your business due to illness, injury, or worse?

Many small businesses face key‑person risk, where the success of the company relies heavily on one or two individuals.

Solutions include:

• Key person insurance — protects the business if a crucial team member can’t work.

• Shareholder protection — ensures business continuity and protects family members financially.

• Income protection — secures your personal income if you’re unable to work.

These safeguards are essential to ensure both your business and family are protected.

Succession and Exit Planning

According to FT Adviser, nearly 50% of business owners don’t have an exit strategy, and 37% have no succession plan.

Leaving this to the last minute can significantly reduce the value of your business. Mazars highlights four key factors that impact business value:

1. Predictability – Buyers value certainty. A strong track record, diverse customer base, and a committed management team all enhance value.

2. Growth potential – Businesses with a clear path to future growth are far more attractive to buyers.

3. How it’s marketed – Finding multiple interested buyers (often through an adviser-led process) can create competitive tension and significantly increase value.

4. Timing – Circumstances change. Selling at the wrong time can damage value, while proper planning can help you take advantage of favourable conditions.

Early planning is key. Whether your goal is to pass the business to family, sell to a third party, or prepare for a management buy‑out, start developing a plan well before you need it.

Cash Flow and Growth Strategies

Balancing reinvestment in your business with building personal financial security is vital. This requires collaboration between financial planners, accountants, and solicitors.

A joined-up approach enables you to grow your business while building wealth outside of it, thereby protecting you against the uncertainty of business ownership.

Working with a Financial Planner

At Ifamax, we’ve spent over 20 years working with business owners, helping them make informed decisions about their personal and business finances.

We collaborate with your other advisers (accountants, solicitors) to:

• Build a robust retirement plan independent of your business.

• Protect your family and company from unforeseen events.

• Develop tax-efficient strategies to grow and preserve your wealth.

You can’t control everything that happens in your business, but with the right planning, you can control your personal financial future.

Conclusion

If your business has made it past those crucial first five years, don’t leave your future to chance.

Planning may feel far‑off, but when the time comes to exit your business or retire, you’ll be glad you did.

At Ifamax, we’re here to help you create a strategy that works for your business, your family, and your future.

Get in touch today to start planning with confidence.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

We are pleased to announce the successful completion of a management buyout (MBO), with existing directors Ashton Chritchlow and Jamie Jacobs now becoming the majority shareholders of Ifamax Wealth Management, marking a significant milestone in our firm’s journey.

This transition ensures the continued independence, stability, and long-term vision of the business — while preserving the values and client-first ethos on which the firm was founded.

What This Means for our Clients

While the structure of ownership has changed, the core of who we are remains the same. You will continue to receive the same high-quality advice and service from the team you know and trust. The day-to-day operations and client relationships will be unaffected.

The current leadership team has been in place since 2019, when Ashton became Managing Director. We are proud to have the opportunity to carry forward Ifamax’s legacy as a privately owned and independent firm focused on delivering the best possible outcomes for our clients.

The alternative to an MBO could have been selling the business to a bigger organisation or one of the larger ‘consolidators’ in our industry that tend to use private equity debt to hoover up firms to then pull all sorts of levers to help repay that debt. This could include reduction in service levels, increase of fee’s, change of staff/adviser and changing investment propositions amongst others. Everything we hope to avoid with the route we have taken!

The founder of Ifamax; Max Tennant will continue in his role as chairman and help with oversight on the investment side, something he has always enjoyed. Max will also still hold a minority shareholding in the business.

We are grateful for the opportunity, mentorship and platform that Max has provided us over the years. We would also like to congratulate him on growing Ifamax from a blank piece of paper back in 2003, to the successful business that it is today.

We would also like to thank Tamzin, who has also been a part of Ifamax since day one. Tamzin is no longer a shareholder but will continue in her role as company secretary.

Looking Ahead

This transition secures our long-term future as a wholly independent and privately owned financial planning firm, something that is becoming quite rare in our industry. We remain deeply grateful for your trust and continued support.

Should you have any questions or wish to speak with your adviser about this change, please do not hesitate to get in touch.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

Why Understanding Investment Risk Matters

Investment risk is about more than just numbers on a screen; it’s about behaviour. History is full of examples of market bubbles, from the tulip mania of the 1600s to the dot-com boom in the late 1990s.

In today’s world, where information is constant and markets move fast, it’s easy to get swept up in the excitement of rising stars like Nvidia or the lure of cryptocurrencies. According to the FCA, there were over 20,000 cryptocurrencies at the start of 2023, but for every person who’s made a fortune, many more have lost money.

The lesson? To reach your financial goals, you need to understand the level of risk you’re prepared to take. High-risk bets may deliver big wins, but they can also lead to significant losses. Dalbar’s Quantitative Analysis of Investor Behaviour shows that the average equity fund investor earns 3–4% less than the market each year due to emotional decisions like chasing returns or panic‑selling when markets fall.

In this blog, we’ll explore what investment risk means, how it affects your portfolio, and how aligning it with your financial goals can help you make better decisions.

What Is Investment Risk?

At its simplest, investment risk is the possibility that your investments won’t deliver the returns you expect. But it’s more complex than that:

• Lower risk usually means lower returns, but a higher chance of achieving them.

• Inflation risk can eat away at your returns. For example, earning 3% interest on cash when inflation is 4% means you’re effectively losing value in real terms.

• Currency risk affects investments in overseas markets, like US shares, depending on exchange rate movements.

• Permanent loss of capital occurs when a company you’ve invested in fails or when you sell at a loss.

• Volatility is the day-to-day (or year-to-year) fluctuation in value.

Imagine you invest £100,000, and 10 years later it’s worth £150,000. The journey won’t have been a straight line. Along the way, it might have dropped below £100,000 and risen well above £150,000. Understanding and being comfortable with that journey is key to long-term success.

Risk vs Reward

Take Bitcoin as an example:

• January 2020: $10,715

• January 2021: $58,592

• January 2022: $16,556

• February 2024: back above $58,000

• Today: around $114,505

The point isn’t whether Bitcoin is “good” or “bad”; it’s that the ride is volatile, and buying at the wrong time can drastically affect returns.

The same is true for high-growth companies like Nvidia. In 2020, Nvidia’s share price was $11.20. By November 2024, it peaked at $147.63, dipped, and only regained that level by June 2025, before climbing even higher.

While investors love the highs, they often panic during the lows. That’s why the first step in understanding potential returns is knowing how much volatility you’re genuinely prepared to accept.

Defining Your Financial Goals

Your financial goals are unique to you, and the timeframe for each goal influences your risk appetite:

• Short-term goals (e.g., paying a tax bill within 12 months): you’ll want minimal risk, as you can’t afford to lose this money.

• Medium-term goals (5–10 years): You can take some risks, but need a balanced approach.

• Long-term goals (10+ years): You can usually afford to take more risk, as markets tend to recover over time.

Understanding Your Risk Tolerance

Your risk tolerance is deeply personal. It depends on factors like:

• Age

• Lifestyle

• Financial situation

• Family history

• Emotional response to market fluctuations

Your financial planner will help you explore these factors in detail, including how you’d feel if markets fell sharply. This emotional understanding is as important as the numbers.

Diversification: Spreading Your Risk

For the last 15 years, the US market, especially the so-called “Magnificent Seven” tech giants, has dominated headlines and returns. But past performance isn’t a guarantee of future success.

By diversifying across asset classes, geographies, and sectors, you can spread risk and create a more resilient portfolio. This approach helps reduce the impact of any single investment’s poor performance and can deliver smoother long-term returns.

Aligning Your Portfolio with Your Goals

While advisers can’t always advise on cash accounts, they can help design a medium‑ to long-term investment strategy tailored to your goals. Through regular reviews and portfolio rebalancing, they can keep you on track and help you avoid being swayed by short-term market noise.

The Role of a Financial Planner

A financial planner doesn’t just build a portfolio; they create a plan for your future. By understanding your goals, your attitude to risk, and your broader financial picture, they can help you make informed decisions that give you the best chance of success.

Conclusion

At Ifamax, we combine 20 years of experience with a forward-thinking team of Chartered Wealth Managers and financial planners, most of whom are under 40. This means we’re not just here to guide you today, but to support your financial journey for decades to come.

Ready to align your investments with your goals?

Contact Ifamax today to start building a portfolio and a plan that works for you.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

Financial Planning Starts with Mindset, Not Just Money

When most people think about financial planning, they imagine numbers, budgets, and spreadsheets. But at Ifamax Wealth Management, we believe true financial wellbeing is just as much about mindset as it is about money.

Yes, understanding what you can afford is important. But your beliefs, behaviours, values, and emotions play a far greater role in shaping your financial future than many realise. In this blog, we explore why a healthy mindset is essential to long-term financial success.

The Stories We Tell Ourselves About Money

From an early age, we all form beliefs about money. These may come from our upbringing, culture, or past experiences. Someone who grew up in a financially constrained household may carry a fear of spending or a deep-rooted sense of scarcity. Conversely, those raised in an environment of financial abundance may underestimate the value of what they have.

It’s also worth asking: If money alone brought happiness, why do so many lottery winners end up unhappy or in debt? The answer lies in how our mindset shapes our relationship with money.

At Ifamax, we help you identify the stories you tell yourself about money — and whether they still serve you.

Money Mindset Matters More Than Budgets Alone

Money is simply a tool of exchange, but in a society driven by instant gratification, our financial decisions are often influenced by emotion and social pressure. Whether it's spending to keep up with others or chasing investment returns, our behaviour can become irrational.

Financial planning isn’t just about managing income and outgoings. It’s about regaining control. Without a clear understanding of expenditure and goals, money can end up controlling us, rather than the other way around.

Take investing, for example. Many assume they can manage their own portfolio. However, behavioural biases such as panic selling during market downturns or holding onto underperforming investments due to misplaced loyalty can have costly consequences.

Working with a financial planner helps remove emotion from decisions and keeps you focused on long-term outcomes.

The Emotional Side of Financial Decisions

Money and mindset are deeply intertwined. Life’s biggest financial decisions often come at emotionally charged moments — buying a home, getting married, starting a family, facing redundancy, or planning for retirement.

We may feel fear, anxiety, or excitement — all of which can influence timing and choices.

Financial planning helps bring a sense of calm and clarity to emotional decisions, allowing you to respond with confidence rather than react out of stress.

Confidence Comes from Clarity

Before asking how much you need for retirement, it’s important to ask: What kind of life do I want to live? What matters to me?

At Ifamax, we start with your values and goals, not just your numbers. Then we build a personalised financial plan to help you get there. Tools such as cash flow modelling can show how your goals can be realistically achieved over time.

Clarity reduces anxiety and fosters confidence, especially when life throws unexpected changes your way.

Setting Financial Goals with Purpose

Financial planning isn’t just about growing your money — it’s about aligning it with what you care about most. That might be retiring early, funding education for your children, supporting causes you believe in, or leaving a legacy.

Some people view financial planning as an unnecessary cost. However, much like servicing a car, the actual value lies in avoiding costly mistakes and achieving long-term peace of mind.

Whether you’re preparing for retirement, investing for the future, or navigating life’s transitions, goal-focused financial planning gives your money purpose.

Working With a Financial Planner Who Understands Mindset

A good financial planner doesn’t just offer advice — they listen, coach, challenge, and support. At Ifamax Wealth Management, we believe empathy and understanding are just as important as technical knowledge.

We work closely with clients to understand their mindset around money, help them stay on track, and provide ongoing accountability. This isn’t about one-off reports — it’s about building an ongoing, trusted relationship.

Conclusion: Planning for a Life, Not Just a Portfolio

• Money is a means, not the end.

• Financial planning that integrates money and mindset leads to better long-term outcomes.

• True wealth comes from clarity, purpose, and peace of mind — not just bigger numbers.

At Ifamax Wealth Management, we help you plan not just for your finances, but for your life.

Ready to Align Your Money with Your Mindset?

Let’s start a conversation. At Ifamax, we’re here to help you build a financial plan that reflects who you are and where you want to go.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

Estate planning means different things to different people. Some might ask, “Does it matter to me personally?” Others are more concerned about ensuring their beneficiaries receive the maximum from their estate. For many, estate planning isn’t something they feel the need to worry about—until it’s too late.

However, with inheritance tax thresholds frozen and the possibility that pensions may be included within estates from 2027, more families than ever could face unexpected tax bills. While it’s easy to take the view that “it won’t affect me,” the reality is that managing an estate—especially during an emotionally distressing time—can place a significant burden on loved ones.

Importantly, estate planning isn’t just about taxes. It’s about control, protection, and peace of mind. In this guide, we explore the key areas of estate planning and how you can take proactive steps to protect your wealth for future generations.

Understanding the Foundations of Estate Planning

Many people believe that estate planning is something only older generations need to consider. But imagine you’re 25, have just purchased your first home, and then something unexpected happens—like a serious accident. Without a will in place, your estate would fall under the rules of intestacy. This could result in your assets being distributed to individuals you never intended.

Similarly, if you suffer a stroke or lose mental capacity, who makes decisions on your behalf? A Lasting Power of Attorney (LPA) allows someone you trust to manage your finances or health and welfare if you’re unable to do so.

Estate planning also includes trusts, which are used for:

• Managing assets on behalf of children or vulnerable individuals,

• Minimising tax liabilities,

• Ensuring assets are protected for future use,

• Reducing the risk of legal disputes.

The Role of a Will: Ensuring Your Wishes Are Followed

While AI-generated wills might seem convenient, they carry risks. A poorly drafted will can result in costly errors and legal complications. Working with a qualified solicitor or estate planning specialist ensures your will is robust and legally sound.

Key points to consider:

• Appointing executors to manage your estate.

• Naming guardians for minor children.

• Regularly reviewing and updating your will as circumstances change.

If you die without a will, your estate will be distributed according to intestacy rules, which may not align with your wishes. This can also delay the administration of your estate, as letters of administration are required instead of probate.

Trusts Explained: Flexibility, Control, and Protection

Trusts are powerful tools for estate planning. They offer control over how and when your assets are distributed and can shield your wealth from unnecessary tax or legal claims.

Common uses for trusts include:

• Asset management for minors or individuals with disabilities.

• Tax optimisation by removing assets from your estate.

• Protection against divorce or creditor claims.

• Estate planning by creating a structure for wealth transfer.

Types of trusts:

• Living Trusts (inter vivos): Created during your lifetime.

• Testamentary Trusts: Activated upon your death via your will.

• Revocable Trusts: Can be changed or cancelled during your lifetime.

• Irrevocable Trusts: Once established, they are fixed.

Example: Parents may choose to place assets in a discretionary trust so that their children benefit from the assets, but future spouses or partners do not.

Inheritance Tax Planning: Passing on More of Your Wealth

Inheritance Tax (IHT) is charged at 40% on estates over £325,000. This threshold can increase to £500,000 if a main residence is passed to direct descendants. For married couples or civil partners, unused allowances can be transferred, potentially increasing the threshold to £1 million.

Ways to reduce IHT:

• Gifting while alive: Gifts made more than seven years before death are typically free from IHT. Taper relief applies between years 3 and 7.

• Annual exemption: You can gift up to £3,000 each year without it affecting your estate.

• Wedding gifts: Gifts for weddings or civil partnerships also qualify for exemptions.

• Charitable donations: Gifts to registered UK charities are exempt from IHT.

Regular reviews of your estate can help identify new opportunities for tax efficiency and ensure your plans remain up to date.

Using Life Insurance and Pensions Effectively

For larger estates, placing life insurance in trust can remove the policy from your taxable estate. This ensures that the payout goes directly to your beneficiaries—quickly and tax-free.

Pensions are currently not considered part of your estate for IHT purposes. However, this may change from 2027. It’s crucial to:

• Keep nomination forms up to date,

• Understand how your pension death benefits interact with your will,

• Consider pensions as a core part of your estate planning strategy.

Power of Attorney and Advance Directives

Creating a Lasting Power of Attorney (LPA) is a crucial aspect of estate planning.

There are two types:

• Property and Financial Affairs LPA: Covers bank accounts, property, and financial decisions.

• Health and Welfare LPA: Covers medical care, daily living, and life-sustaining treatment decisions.

Why create an LPA?

• Protects your interests if you lose capacity.

• Reduces delays in critical decision-making.

• Provides peace of mind for you and your loved ones.

• Helps avoid costly and time-consuming Court of Protection applications.

Why Work with a Financial Planner on Estate Planning?

At Ifamax, we believe estate planning is most effective when done collaboratively. We work closely with solicitors, accountants, and other professionals to create a strategy tailored to your specific needs.

Our role is to:

• Coordinate the financial aspects of your estate plan,

• Ensure your values and wishes are reflected in the structure,

• Review your plan regularly to adapt to any changes in your circumstances or legislation.

We also engage with your family, where appropriate, to foster transparency and reduce the risk of future conflict.

Conclusion: Leave a Legacy, Not a Burden

It’s estimated that around 10,000 disputes over wills and estates occur each year in England and Wales. Many of these could be avoided through clear and proactive estate planning.

At Ifamax Wealth Management, we help clients take control of their estate planning—minimising tax, reducing risk, and preserving family harmony.

Speak to our team today for a confidential estate planning review and start building a legacy that truly reflects your life’s work.

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

Building a business takes time. The early years are often the most challenging — juggling cash flow, securing clients, and wearing multiple hats. Even when your company becomes established, you continue to face ongoing pressures, including managing a team, adapting to market shifts, and constantly thinking ahead. 

It’s no surprise that business owners often put their financial planning at the bottom of their list. But that can come at a cost. According to the Federation of Small Businesses, more than 45% of small business owners have no formal retirement plan in place, despite the generous pension allowances that can help reduce corporation tax and extract profits tax-efficiently. 

At Ifamax, we’ve worked with business owners across the UK facing these exact challenges. Our role is to help you create clarity and confidence so that you can plan not just for your business’s success, but for your financial future. 

The Pension Advantage for Business Owners 

Pension contributions are one of the most tax-efficient ways to extract value from your business. Here’s why: 

1. Corporation Tax Relief 
   Employer contributions are treated as an allowable business expense, reducing your corporation tax bill, currently charged at up to 25%. 

2. No National Insurance Contributions (NICs) 
   Pension contributions avoid both employer and employee National Insurance Contributions (NICs), unlike salary or bonus payments. 

3. Asset Protection 
   Pension assets are held in a legally separate trust and are not company property, protecting them in the event of insolvency. 

4. Carry Forward Unused Allowances 
   If you haven’t used your full annual allowance in previous years, you may be able to carry it forward, enabling larger contributions when profits allow. 

5. Tax-Free Growth and Efficient Withdrawals 
   Investments within a pension grow free from income tax, capital gains tax, and dividend tax. Up to 25% of your pension pot can usually be taken tax-free from age 55 (rising to 57 from 2028). 

How We Help You Build a Tax-Efficient Retirement Plan 

At Ifamax, we align your financial plan with your business strategy. We collaborate with your accountant to optimise your income structure — typically balancing salary and dividends — and ensure that pension contributions are made in the most tax-efficient way. 

We take the time to understand your long-term goals. Whether you’re planning to sell your business, transition ownership, or pass it on to family, your pension should support that plan. 

Our approach is flexible. We help you make full use of your annual allowance (currently £60,000) and carry forward unused allowances from the past three tax years, without compromising business cash flow. Some years you might contribute more, and others less, depending on where capital is needed most. 

Your Pension Can Do More Than You Think 

Pensions aren’t just about saving for retirement — they can also be powerful tools for succession planning, tax mitigation, and even property ownership. 

Succession and Exit Planning 

Pensions can be utilised to efficiently extract profits, manage business exits, and structure intergenerational wealth transfer in a tax-effective manner. 

Passing On Your Pension 

While the rules may change from April 2027, pensions currently fall outside of your estate for inheritance tax purposes and can be passed on to beneficiaries with significant tax advantages. 

Using Your Pension to Buy Commercial Property 

A lesser-known but highly effective strategy is using a SIPP (Self-Invested Personal Pension) or SSAS (Small Self-Administered Scheme) to purchase your business premises. This offers multiple benefits: 

Tax Advantages 

• No Capital Gains Tax (CGT) when the property is sold from within the pension. 

• Tax-free rental income received by the pension. 

• Corporation tax relief on rent paid by your company to the pension. 

• No income tax on property growth or rental income within the pension wrapper. 

Business Benefits 

• Control over your premises while freeing up capital by transferring ownership into your pension. 

• Your company pays rent to your pension, effectively building your retirement fund. 

• Unlock equity in property without taking on new debt — beneficial for business growth or liquidity. 

Long-Term Financial Planning 

• Diversification into property within your pension. 

• Succession and inheritance planning, as pension-held property may pass to beneficiaries tax efficiently (subject to 2027 rule changes). 

• Creditor protection — pension assets are usually safeguarded from claims on your personal or business estate. 

Why Work with Ifamax? 

We’ve worked with business owners, accountants, and solicitors since 2004, developing deep experience across a wide range of sectors. We don’t treat personal and business finances as separate — we help you integrate them into one cohesive plan. 

Unlike many firms, four of our six financial planners are under the age of 40, offering long-term continuity. Four of our planners also hold Chartered Financial Planner status — the gold standard in our profession. 

Conclusion: Let’s Shape Your Future Together 

Running a business is demanding. We take the stress out of financial planning so you can focus on what you do best. The earlier you start planning, the more options and flexibility you have. 

Download our free guide for business owners. 

Ready to take the next step? Book your no-obligation Discovery Meeting and let’s explore how we can help you build a future that truly works for you. 

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.  

It’s easy to put off pension planning, especially when retirement feels a long way off. However, the longer it’s delayed, the harder it becomes to retire on your terms. Over recent decades, there has been a significant shift in the way many people save: the days of guaranteed final salary pensions are essentially behind us. The responsibility now falls squarely on individuals to build their retirement funds. 

According to the Pensions and Lifetime Savings Association (PLSA), a single person now requires around £23,300 per year for a moderate retirement lifestyle — and this figure is expected to rise with inflation. Yet, research from Scottish Widows reveals that nearly 45% of people in their 40s are not on track to meet their retirement goals, with many facing what is known as a “pension black hole.” 

While that may sound worrying, the good news is that pensions don’t just help in the long run — they also offer immediate tax advantages. Contributions benefit from tax relief at your marginal rate, and they can help offset frozen allowances, reduce exposure to higher tax bands, and ultimately lower your tax bill today. 

In this blog, we explore how pensions can be one of the most effective — and underused — ways to reduce your tax liability right now, while still building a secure financial future. 

How Pension Contributions Reduce Tax Today 

Income Tax Relief 

Pension contributions attract immediate tax relief. For basic-rate taxpayers, this means a £1,000 contribution only costs £800 — the government tops up the remaining £ 200. 
For higher and additional-rate taxpayers, you can claim further relief via your self-assessment tax return: 

• 40% taxpayers: net cost can be as low as £600 

• 45% taxpayers: as low as £550 

This makes pension saving one of the most efficient ways to reduce your taxable income. 

Fight Back Against Frozen Allowances 

Several tax thresholds and allowances have been frozen or reduced, quietly increasing tax bills for many: 

• Personal Allowance: Frozen at £12,570 until April 2028 

• Higher-Rate Threshold: Frozen at £50,270 

• Additional-Rate Threshold: Lowered from £150,000 to £125,140 in 2023 

• Loss of Personal Allowance: Gradually removed for those earning over £100,000 

• High Income Child Benefit Charge (HICBC): Taper now starts at £60,000 and ends at £80,000 (as of April 2024), with plans to base this on household income from 2026  

Pension contributions can help reduce your adjusted net income, allowing you to: 

• Retain more of your Personal Allowance 

• Reduce or eliminate the Child Benefit charge 

• Avoid tipping into a higher or additional rate tax band 

Salary Sacrifice – A Powerful Tool for Employees 

Salary sacrifice is a smart way to reduce your tax and National Insurance (NI) contributions and increase your pension contributions. 

How It Works: 

You agree to reduce your gross salary by a chosen amount. Your employer then contributes that amount directly into your pension. 

Example: 

You earn £50,000 and want to contribute £5,000 into your pension. 

• Without salary sacrifice: 
  You take your full salary and contribute personally. The net cost is £4,000 (after 20% relief) — or less if you're a higher-rate taxpayer (via tax return). 

• With salary sacrifice: 
  Your salary drops to £45,000 and your employer pays £5,000 into your pension. 

  You save:  

• Income tax (20% or 40%) 

• Employee NICs (12% below ~£50k, 2% above) 

• Your employer saves 13.8% NICs, and may pass some of that to your pension 

Key Benefits: 

• Increased pension contributions at a lower personal cost 

• Reduces adjusted net income 

• Helps reclaim lost allowances (e.g. Child Benefit or Personal Allowance) 

• Can be structured as regular or one-off payments

Considerations: 

• May affect borrowing (e.g. mortgages) and certain benefits 

• Must not reduce salary below the National Minimum Wage 

• Requires a written agreement with your employer 

Company Contributions 

If you’re a company director, employer pension contributions can be made directly from your limited company. 

Advantages: 

• Contributions are corporation tax-deductible (up to 25%) 

• No National Insurance due (unlike salary or bonuses) 

• Count toward your annual allowance (currently £60,000) 

It’s a legitimate and highly tax-efficient way to extract profits from your business. 

Using Carry Forward to Maximise the Benefit 

If your income is irregular or you’ve had a recent windfall, the carry-forward rules allow you to exceed the current annual allowance: 

• Current annual allowance is £60,000 (2025/26) 

• You can carry forward unused allowance from the previous three tax years 

• Ideal for: 

• Reducing a one-off large tax bill 

• Topping up missed contributions 

• Maximising pension funding while still eligible for tax relief 

What to Watch Out For 

Pension rules can be complex, and it’s important to avoid common pitfalls.  

Key Limits and Traps: 

• Money Purchase Annual Allowance (MPAA): 
  If you’ve started accessing pension income flexibly, your allowance may be restricted to £10,000. 

• Tax Relief Limits: 
  You only receive relief on contributions up to the greater of: 

• 100% of your UK taxable earnings 

• Or £3,600 

• Tapered Annual Allowance: 
  Affects high earners (adjusted income over £260,000). Your allowance may be reduced to as low as £10,000. 

We work closely with your accountant to check these rules and ensure you're contributing at the optimal level for your situation. 

How Ifamax Can Help 

At Ifamax, we create tailored retirement and tax planning strategies for individuals, business owners, and company directors. We work collaboratively with your accountant to ensure your pension planning aligns seamlessly with your broader financial picture. 

What Makes Us Different: 

• Clear, evidence-based advice with a long-term focus 

• Expertise in both personal and business tax planning 

• Chartered Financial Planners with a client-first approach 

Financial planning isn’t just about investment returns — it’s about maximising every available tax benefit, so you keep more of what you earn. 

Reduce Tax Today, Build for Tomorrow 

You don’t have to wait until retirement to benefit from your pension. With the right planning, it’s one of the few remaining ways to legitimately and efficiently reduce your tax bill today, while also preparing for a more secure future. 

Contact us for a free Discovery Meeting. 

Let’s explore how you can use pensions to take control of your tax, your income, and your retirement goals — starting now. 

Risk warning  

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. References to specific products are made solely to illustrate educational points and do not constitute any form of recommendation or advice. Information contained herein has been obtained from sources believed to be reliable, but it is not guaranteed.  

One of the most frequently asked questions is: When is the best time to seek financial advice? Often, it’s triggered by a significant life event – an inheritance, approaching retirement, divorce, or a change in employment. But there’s rarely a perfect time. 

Perhaps a better approach is to ask yourself: 

1. Is money controlling you, rather than you controlling your money? 

2. Do you feel overwhelmed or anxious about your financial future? 

3. Do you have multiple pension pots but no clear plan for them? 

4. How much do you need to save to retire, and when will that be? 

5. Are you making the most of your tax allowances and reliefs? 

There are many more questions we could add. The point is that any moment could be the right time to reach out to a financial planner like Ifamax—and the earlier, the better. Financial planning isn’t just about numbers but about your goals, values, dreams, and aspirations. 

We Can Help You Understand the Complexity of Modern Pensions 

It’s easy to see why some investors opt for the DIY approach – it feels cheaper and more straightforward. But, like any DIY job, the stakes are higher if things go wrong. Financial planning is more than just choosing funds – it’s about making informed decisions and protecting your future. 

Pensions today are more complex than they might appear: 

1. Pension rules change regularly – from annual allowance adjustments to the removal of the Lifetime Allowance (April 2024), these shifts can significantly affect planning. 

2. Defined benefit schemes can be extremely valuable, though they are becoming less common. Understanding how they compare to defined-contribution plans is vital before considering any transfer. 

3. Are you on track for a full State Pension? The full new State Pension (as of 2024/25) is £221.20 per week, but this depends on your National Insurance record – you can top this up. 

4. Many people have accumulated multiple pensions over the years – do you know how to consolidate them efficiently? 

5. Have you completed nomination forms? These ensure your pension is passed on according to your wishes, and they need to be kept up to date. 

6. Are your pension savings aligned with your long-term goals? 

At Ifamax, we provide straightforward, regulated advice that helps you understand your options and take action to secure your future. 

You Get a Personalised Retirement Plan That Suits Your Life 

No two retirements look the same. For some, retirement means travelling the world; for others, it’s about supporting children or simply enjoying life without financial worry. 

That’s why we don’t offer one-size-fits-all solutions. Our advisers take the time to understand your circumstances – your current financial position, lifestyle preferences, and long-term goals. From there, we create a tailored strategy that reflects your risk tolerance, investment horizon, and life stage. 

With Ifamax, you gain: 

• Clarity on your current financial picture 

• A structured retirement plan that adapts over time 

• Confidence that your goals are achievable 

You Can Keep More of Your Money with Smart Tax Planning 

It’s not just how much you save – it’s how much you keep that matters. Without a tax-efficient strategy, you could lose thousands in unnecessary tax. 

Our advisers are specialists in pension tax planning and can help you: 

• Make the most of your 25% tax-free lump sum 

• Understand the tax implications of drawdown vs annuity 

• Structure withdrawals to avoid tipping into higher income tax bands 

• Combine pensions with ISAs and other tax wrappers to create efficient income 

• Navigate the abolition of the Lifetime Allowance, and changes to Annual Allowance tapering 

According to HMRC, pension tax relief cost the Treasury over £50 billion in 2022–23. It remains one of the most generous tax breaks available, but only if used wisely. 

Your Investments Are Managed to Support Your Long-Term Goals 

Your pension is not just a savings pot – it’s an investment in your future lifestyle. How that money is invested over time is crucial in determining whether you can achieve your retirement goals. 

At Ifamax, we take a strategic, long-term approach. Your investment portfolio is aligned with your goals, risk appetite, and time to retirement, and is reviewed regularly to stay on track. 

Whether you're building wealth or drawing income, we ensure your pension is working as hard as it can for you. 

You Avoid Mistakes That Could Cost You Thousands 

Our advisers help you steer clear of common pension pitfalls, such as: 

• Accessing your pension too early, triggering large tax charges or diminishing your income 

• Exceeding annual allowances, which can result in 45% tax charges on the excess 

• Transferring from a defined benefit scheme without understanding the guaranteed income, you may be giving up 

• Falling for pension scams – Action Fraud reported over £26m lost to pension fraud between 2017 and 2022 

• Overlooking guaranteed annuity rates or valuable employer-linked benefits 

Financial mistakes in retirement are often irreversible. With expert guidance, you can make confident, informed choices. 

When’s the Right Time to Get Pension Advice? 

The simple answer is: as early as possible. 

Professional advice can make a meaningful difference if you’re starting your career, approaching retirement, or already drawing a pension. The earlier you begin, the more options you have – and the more time your money has to grow. 

If you’d like to explore your pension options, ask questions, or understand what’s possible, book a free consultation with one of our advisers today. We’ll get in touch to schedule a time that works for you. 

Risk warning 

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed. 

It’s worth reflecting on how the job market has changed over the past few decades. Thirty or forty years ago, many people stayed with one employer for life, often with access to a defined benefit pension scheme that provided a guaranteed income in retirement. 

Today, that’s rarely the case. 

Jobs that existed a generation ago may no longer exist, and the pace of technological change continues to reshape the employment landscape. One article from MoneyDigest in the US suggested that Gen Z could hold up to 18 jobs across six different careers in their lifetime. While that might sound extreme, the direction of travel in the UK is not dissimilar. 

According to Aegon’s Second 50 Report (2023), over half of UK workers anticipate working into their 70s, and many expect to have several jobs. Assuming six different employers over a 40–50-year working life could mean six or more pension pots. 

The money in each pension pot remains invested – it doesn’t vanish – but pensions left unattended can easily be forgotten. You may lose track of who the provider is, forget your nominations, or miss out on better investment options. It also becomes harder to make long-term plans when your savings are scattered. 

In this blog, we explore what happens to your pension when you change jobs and how to stay in control of your retirement savings. 

What Happens to Your Existing Workplace Pension? 

When you leave a job, your workplace pension remains yours. Contributions from you and your employer up to your leaving date will continue to be invested in that scheme. The value of the pot may rise or fall, depending on market performance and how the money is invested. 

However, the pension becomes a deferred scheme – you're no longer actively contributing, but charges may still apply. There are a few key things to consider: 

• Ongoing charges: Even if you’re no longer paying in, annual management charges can still apply and gradually erode your pot. 

• Lack of visibility: You might stop receiving updates or forget to check how the investments perform. 

• Outdated investment choices: Your original selections may no longer match your risk profile or goals. 

• Old nominations: Have you reviewed your nominated beneficiaries? These can go out of date as life changes. 

According to the Association of British Insurers (ABI), there could be over 1.6 million unclaimed pension pots worth nearly £20 billion in the UK, often because people forget about small deferred pensions. 

Starting a New Pension with Your New Employer 

Under the UK’s auto-enrolment rules, most employers must enrol eligible employees into a workplace pension scheme. You'll be enrolled automatically if you’re aged 22 or over, earn more than £10,000 a year, and ordinarily work in the UK. 

You and your employer will contribute, and you’ll receive tax relief on your contributions, making it a very efficient way to save. 

Key points to remember: 

• Auto-enrolment minimum contributions total 8% of qualifying earnings (5% from the employee, 3% from the employer). 

• You can increase your contributions to build a bigger pension pot. 

• Some employers offer more generous schemes, including salary sacrifice options, which can improve tax efficiency. 

Starting a new job means starting a new pension – unless you choose to transfer your existing pot(s) into it. That’s where consolidation might come in. 

Should You Combine Your Pensions? Pros and Cons 

You will likely have several pension pots if you’ve worked for multiple employers. Combining them into one scheme can make life easier, but it’s not always the right move. 

Benefits of Combining Pensions 

• Simplified management – One provider, one login, one statement. 

• Lower fees – Older schemes may charge higher fees than modern platforms. 

• Unified investment strategy – Easier to align your pension with your goals and risk appetite. 

• Avoiding lost pots – Keeping track of your savings avoids missing out later. 

Risks to Consider 

• Loss of valuable benefits – Defined benefit schemes may offer guaranteed income or favourable terms that are lost on transfer. 

• Exit fees – Some older plans still apply charges for transferring out. 

• Investment choices – Your new scheme might not have the same fund options or performance track record. 

Before consolidating, it’s essential to review each pension in detail. At Ifamax, we provide tailored advice to help you understand your options and make informed decisions. 

Pension Transfer Process: What to Expect 

If you decide to transfer one or more pensions into a new scheme, here’s a brief overview of what to expect: 

1. Request a transfer value – Your provider will issue a statement showing the current value, charges, and guarantees. 

2. Compare options – You or your adviser assess potential new schemes' features, charges, and investment options. 

3. Apply to transfer – Complete the necessary forms and provide your consent. 

4. Scheme communication – Your new provider contacts your old one to initiate the transfer. 

5. Funds are transferred – Your pension is moved and invested in the new scheme according to your selected strategy. 

Some transfers are straightforward and completed within a few weeks; others, particularly involving older or defined benefit schemes, may take longer and require specialist advice. 

Final Thoughts: Keep Track, Stay in Control 

Your pension is one of the most valuable assets you'll ever own. It deserves more than to be left behind every time you change jobs. 

Ifamax can help you take control of your pensions, from reviewing old schemes to designing a long-term retirement strategy that suits your lifestyle. 

If you’re unsure where all your pensions are, the government’s Pension Tracing Service can help: www.gov.uk/find-pension-contact-details 

And if you’d like to speak to a financial planner about your pensions or long-term goals, book a free consultation with us today. 

Risk warning 

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed. 

Inheritance Tax (IHT) is often described as a voluntary tax, not because it isn’t compulsory, but because so much liability can be mitigated with proper planning. Yet, despite this, HMRC collected £7.5 billion in IHT receipts in 2023/24, up from £2.22 billion in 2000/01, according to Statista and HMRC. It’s not just the very wealthy who are affected. Rising house prices, frozen tax thresholds, and changes to pension and business reliefs mean more families than ever could face a significant tax bill. 

The origins of inheritance tax in the UK can be traced back to probate duty in 1694, evolving into estate duty in 1894, and finally becoming Inheritance Tax in 1986. Unlike most countries in the OECD, where tax is often levied on the beneficiary depending on their relationship to the deceased, the UK applies a flat 40% rate on the estate's value above certain thresholds. A 2022 report from the US-based Tax Foundation ranked the UK as having the fourth-highest inheritance tax rate globally. 

This article doesn’t aim to debate the fairness of IHT, but instead explores practical strategies that can help reduce or even eliminate the potential tax burden on your estate. 

Why Inheritance Tax Planning Matters 

While Inheritance Tax only applies to a minority of estates today (around 4% of deaths, per HMRC 2023/24), that number is expected to rise steadily due to frozen allowances and asset growth. 

The nil-rate band (£325,000) and residence nil-rate band (£175,000) have been frozen until at least April 2028. Meanwhile, average UK house prices have risen from £132,000 in 2000 to over £280,000 in 2024, according to the Office for National Statistics (ONS). In parts of London and the South East, family homes can easily push a couple’s estate over the £1 million threshold. 

Families may have to sell assets, including the family home, without adequate planning, to cover an unexpected tax bill. With potential changes to pension death benefits in 2027, even your retirement savings may no longer escape the IHT net. 

Understanding the Basics of Inheritance Tax 

Inheritance Tax is a charge on your estate when you die. The estate includes all your property, possessions, investments, and certain gifts made during your lifetime. Understanding how the rules work is the first step to planning effectively. 

Key Elements of Inheritance Tax: 

• Nil-Rate Band (NRB): 

Every individual has a tax-free threshold of £325,000. Anything above this is potentially taxed at 40%. 

• Residence Nil-Rate Band (RNRB): 
  An additional £175,000 allowance is available if you pass your main residence to a direct descendant (e.g. a child or grandchild). For couples, unused allowances are transferable, meaning up to £1 million can potentially be passed on tax-free. 

• Gifts Within 7 Years: 
  Gifts made within seven years of death may be taxed using taper relief. Some gifts, such as the £3,000 annual exemption, wedding gifts, and normal gifts out of income, are immediately exempt. 

• Assets Included in the Estate: 
  Your estate includes your: 

• Home and other property 

• Savings and investments 

• Pensions (depending on how they are structured) 

• Life insurance (unless written in trust) 

• Business or agricultural assets 

• Gifts made within seven years 

• Who Pays the Tax? 
  In most cases, the executor of your estate is responsible for settling any IHT before distributing assets. However, if gifts are made during life and caught by IHT, the recipient may be liable if the estate cannot cover the tax. 

Key Inheritance Tax Planning Strategies 

Proactive planning can dramatically reduce or even eliminate your IHT liability. The earlier you begin, the more options you have. 

1. Use Your Gift Allowances 

You can give away up to £3,000 each tax year without triggering IHT (and carry forward unused allowance from the previous year). Small gifts of up to £250 per person, per tax year, are also exempt. Larger gifts may be free of IHT if you survive seven years after giving them. 

TIP: Regular gifts made from surplus income (that don’t affect your standard of living) can be completely exempt – a little-known but powerful relief. 

2. Consider Trusts 

Trusts can be used to pass wealth on to future generations while retaining a level of control. They may remove the value from your estate for IHT purposes, though care must be taken around relevant property charges and ten-year anniversaries. Legal and financial advice is crucial. 

3. Put Life Insurance in Trust 

A life insurance policy written in trust is not part of your estate and can be paid out immediately to cover IHT liabilities, without waiting for probate. This can provide valuable liquidity to your heirs at a difficult time. 

4. Make Use of Business Relief and Agricultural Relief 

Certain business and farming assets qualify for up to 100% IHT relief. This can be a game-changer for family-owned enterprises or rural estates. However, the rules are complex, and planned changes to business relief could affect eligibility, so regular reviews are important. 

5. Keep Your Will Updated 

A properly drafted and up-to-date document will ensure your estate is passed on in line with your wishes and in the most tax-efficient way. It can also help avoid delays, disputes, and unexpected tax charges. 

According to Royal London, over 54% of UK adults don’t have a will, and many are out of date for those who do. 

6. Plan for Pension Changes 

Most pensions fall outside the estate for IHT purposes, especially if passed on before age 75. However, the abolition of the Lifetime Allowance in April 2024 and the potential introduction of income tax on death benefits from 2026/27 may reduce the tax efficiency of pensions. Strategic planning is essential. 

Final Thoughts 

Inheritance tax is often called a “tax on the unprepared.” However, with some forward thinking and advice, most families can reduce or avoid this liability. 

At Ifamax, we provide bespoke inheritance tax planning as part of our holistic financial planning service. We help you make the most of allowances, protect your family’s legacy, and pass on wealth efficiently. 

Book a Free Consultation 

If you’re concerned about inheritance tax or want to understand your position, contact the Ifamax team today. We’ll guide you through your options and help build a strategy that supports your wishes and protects your wealth. 

Risk warning 

This article is distributed for educational purposes only and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy, or investment product. Reference to specific products is made only to help make educational points and does not constitute any form or recommendation or advice. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.