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. 

Planning for Your Family’s Future

Who inherits your pension when you die? For many people, the answer is unclear — and often wrong.

A 2023 survey by the Money and Pensions Service (MaPS) found that only two in five people knew their pension would go to their nominated beneficiary. Others mistakenly believed it would go to their employer, the government, or automatically to their next of kin. Worryingly, one in five didn’t know who they had chosen to receive it.

By 2025, the picture hadn’t improved. According to Aviva:

• 15% of people didn’t know who their pension would go to

• Nearly one in five of the Silent Generation (aged 79+) were unaware

• Women were more than twice as likely as men to be unsure of their nominee (21% vs 9%)

• 3% believed an ex-partner might still be listed as their beneficiary

In this blog, we explain what happens to your pension when you die — and what you can do today to ensure your wishes are fulfilled. We cover key facts, practical steps, tax implications, legacy considerations, and the importance of ongoing financial advice.

Level 1: Awareness – Clarifying the Basics

Pensions typically do not form part of your estate for Inheritance Tax purposes — although this may change from April 2027 under proposed rules.

Different types of pensions have different rules when it comes to death benefits:

• Defined Benefit (DB) Schemes – These pay a guaranteed income for life. On death, benefits may include a spouse’s pension and, in some cases, a lump sum. Exact terms vary by scheme.

• Annuities – If your pension pot was used to purchase an annuity, any death benefits will depend on whether guarantees or spouse’s provisions were included at outset.

• Defined Contribution (DC) Pensions—These include personal pensions, SIPPS, and workplace schemes. The pot's value can be passed on to nominated beneficiaries, either as a lump sum or income.

• State Pension – This stops on death. Sometimes, a spouse or civil partner may be eligible for additional payments.

Level 2: Practical Guidance – Steps to Take

Defined Benefit Schemes often pay a dependent’s pension to your:

• Legal spouse

• Registered civil partner

• Unmarried partner (if financially dependent and depending on scheme rules)

Always check your scheme's rules and keep your nomination form current, particularly after major life events like marriage, divorce, bereavement, or the birth of children.

If lump sum death benefits are payable, trustees consider your nomination form but have final discretion over who receives the benefit.

Defined Contribution Schemes give you more flexibility. You can nominate anyone to receive your pension fund by completing an expression of wish form. However, trustees or providers retain discretion, usually keeping the benefits outside your estate for tax purposes.

If benefits are paid without trustee discretion (i.e. directly to someone named in your Will), they may be subject to Inheritance Tax as part of your estate.

If you’re a Nest government workplace pension member, your pension pot may form part of your estate unless you’ve completed an expression of wish form.

To avoid complications, make sure your Will and pension nominations align.

Level 3: Tax Considerations

Currently, most pensions fall outside of your estate for Inheritance Tax — but that is expected to change from April 2027. The tax implications depend on the type of pension and your age at death:

• Defined Benefit Schemes – Income received by beneficiaries is taxed; lump sums may be tax-free.

• Defined Contribution Schemes –

• Death before age 75: Lump sums and income are typically tax-free up to the Lump Sum and Death Benefit Allowance.

• Death after age 75: Income or lump sums are taxed at the recipient’s marginal rate.

However, even tax-free lump sums may create an issue: they become part of the beneficiary’s estate, potentially increasing their future Inheritance Tax liability.

Important:
Using your Will rather than a nomination form may restrict how the benefits are accessed, such as losing the option for beneficiary drawdown, which preserves the tax advantages.

Older pensions that don’t support beneficiary drawdown often require the fund to be paid out in full. Even if this is initially tax-free, it could push the value into the estate and trigger Inheritance Tax.

Level 4: Emotional and Legacy Planning

Life changes — such as divorce, remarriage or the death of a partner — can quickly make pension nominations out of date. Sometimes, an ex-spouse may remain the named beneficiary unless forms are updated.

While tax rules may shift, the goal remains to ensure your pension supports the people you care about. That starts with conversations — talk to your family, review your paperwork, and ensure your wishes are clear.

By planning ahead, you can reduce uncertainty, minimise stress for your loved ones, and preserve more of your wealth for future generations.

Level 5: Call to Action – Why Ongoing Advice Matters

At Ifamax Wealth Management, we’ve been helping clients plan for retirement and beyond for over twenty years.

Ensuring your pensions, Wills, and nominations stay aligned with your goals is as important as growing your retirement fund. With ongoing advice, we help you adapt to life changes, legislative updates, and tax reforms, so that your financial legacy reflects your values.

Want to ensure your pension benefits go to the right people, in the most tax-efficient way?

We’re here to help you plan with clarity and 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.

Pensions might appear straightforward, but neglecting the details can cost you dearly over time. From missing out on valuable tax relief to losing track of old pension pots or failing to plan for death benefits, the consequences of poor pension planning can quietly erode your retirement wealth.

The numbers speak for themselves. For a basic-rate taxpayer, a £1,000 pension contribution only costs £800 thanks to 20% tax relief added by the government. For higher-rate taxpayers, a further 20% can be claimed via self-assessment, saving a further £200.

Over time, these tax advantages—combined with tax-free investment growth and the ability to take 25% of your pension tax-free at retirement—can significantly boost your retirement income.

But only if you make the most of them.

In this blog, we highlight the most common pension pitfalls—such as delaying contributions, forgetting old schemes, paying excessive charges, and withdrawing funds inefficiently—and show you how to avoid them. With a few informed decisions, you can protect and potentially increase your retirement savings by tens of thousands of pounds.

1. Neglecting Your Pension Early On

The days of generous defined benefit pensions are largely behind us, so building up your retirement fund is more important than ever. One of the costliest mistakes is delaying contributions.

Using Vanguard’s pension calculator and assuming an 8% annual growth rate, here’s how much a fixed monthly contribution of £300 could grow by age 67:

This shows how starting ten years earlier can nearly double your pension pot. Even modest contributions can go a long way when considering tax relief and compound growth.

For example, if £150 of your £300 contribution is your own money and you’re a basic-rate taxpayer, the cost is just £120.

That’s £30 added by the government. Over 42 years, this “free money” adds up: £15,120 in tax relief becomes around £45,015 with growth at 8%. If you delay until 55, the same tax relief is worth just £5,492—a £40,000+ difference.

2. Losing Track of Old Pensions

It’s common to accumulate multiple pensions throughout your working life, particularly if you’ve changed jobs. However, losing track of these can be costly. Forgotten pensions may be held in poorly performing funds, charged excessive fees, or not reflect your current needs or beneficiaries.

They may also not offer flexible death benefit options such as beneficiary drawdown, or your nominations could be outdated, meaning your loved ones might not receive what you intended.

How to avoid it:

• Use the Government’s Pension Tracing Service to track down old schemes.

• Consider consolidating pensions into a single, well-managed scheme—but always seek financial advice first, as some older pensions offer valuable guarantees.

3. Underestimating How Much You Need

Planning for retirement requires more than guesswork. Many people underestimate how much they’ll need, especially as life expectancy increases and inflation erodes purchasing power.

Here's what happens when you build in inflation-linked increases to your contributions:

In this example, someone starting at 25 could add over £100,000 more to their pension fund by increasing contributions annually with inflation.

Tip: Review your contributions regularly and consider working with a financial planner to model your future lifestyle needs, factoring in inflation, life expectancy, and potential care costs.

4. Taking Too Much Too Soon

With pension freedoms introduced in 2015, the temptation to access your pension early has grown. But taking too much, too early, can be a costly mistake.

Withdrawing large sums can push you into a higher income tax bracket, reduce future investment growth, and risk running out of money later in life.

Other risks include:

• Market volatility affecting early withdrawals.

• Reduced access to means-tested benefits.

• Triggering the Money Purchase Annual Allowance (MPAA), limiting future contributions.

How to avoid it: Work with a planner to develop a sustainable withdrawal strategy that balances your income needs with long-term tax efficiency.

5. Ignoring Pension Charges and Poor Investment Choices

Not all pension schemes are created equal. High charges and poor investment performance can significantly erode your fund’s growth potential.

Let’s say you have a fund of £100,000 with annual charges of 2% versus 0.5%. Over 20 years, assuming 5% growth before charges, the lower-fee option could result in £43,000 more in your pot.

How to avoid it:

• Review your pension’s investment performance and fees regularly.

• Don’t assume default funds are right for you.

• Choose a mix of investments aligned with your risk tolerance and goals.

6. Missing Out on Tax Planning Opportunities

Effective pension planning doesn’t happen in isolation. It’s part of a wider financial strategy that should consider other tax-efficient vehicles like ISAs, Venture Capital Trusts (VCTs), and Enterprise Investment Schemes (EISs).

For higher earners, combining these can help reduce your tax liability while creating flexible retirement income streams.

How to avoid it:

• Maximise your annual pension allowance and carry forward unused reliefs.

• Diversify tax wrappers to improve flexibility in retirement income planning.

7. Not Planning for Death Benefits

Many forget that pensions typically sit outside your estate for inheritance tax purposes. But without an up-to-date expression of wish forms, your pension may not go where you intended.

Some older pensions may only pay out as a lump sum or restrict who can inherit. Beneficiary drawdown options vary between providers.

How to avoid it:

• Review and update your expression of wish forms regularly, especially after life changes like marriage, divorce, or having children.

• Understand how your scheme handles death benefits and consider moving to a more flexible plan.

Conclusion

The title of this blog might sound sensational, but the truth is clear: without careful planning, pensions can become a minefield that costs you thousands—or even tens of thousands—over your lifetime.

The good news is that most of these pitfalls are avoidable. With the right advice and regular reviews, your pension can become one of the most powerful tools in your long-term financial plan.

At Ifamax Wealth Management, we’ve been helping clients plan confidently for retirement for over 20 years. If you’d like to ensure your pension is working as hard as it should, get in touch today and let’s help you take control of your retirement journey.

Risk warning

This article is distributed for educational purposes only and should not be considered investment advice or n 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.

Pensions are not just a tool for securing your retirement—they are also one of the most effective ways to reduce your tax liability. Whether employed, self-employed, or running your own limited company, understanding how pension contributions impact your tax planning can unlock immediate financial benefits while building your long-term wealth.

At Ifamax Wealth Management, we help individuals, families, and business owners incorporate pensions into their broader financial plans. Here’s how pension contributions can benefit your tax position, and why it pays to plan.

The Tax Advantages of Pension Contributions

Contributing to a pension does more than grow your retirement savings—it also provides valuable tax benefits.

How you benefit:

• Tax relief on contributions: For every £80 you pay into your pension, HMRC adds £20, so your £100 contribution only costs you £80.

• Additional relief for higher earners: If you pay tax at the higher or additional rates, you can claim extra tax relief via your self-assessment tax return.

• Employer contributions: For business owners or company directors, employer pension contributions are treated as tax-deductible business expenses.

Pensions offer a win-win—reducing your tax bill today, while securing your financial future.

Personal Contributions and Tax Relief

When you contribute to a pension personally (not via your business), you benefit from income tax relief up to annual limits.

• Basic-rate taxpayers receive 20% tax relief automatically.

• Higher-rate (40%) and additional-rate (45%) taxpayers can claim the extra tax relief through their tax return.

For example, a £10,000 pension contribution for a higher-rate taxpayer would generate tax relief of £2,500, which is added to your pension, and a further £2,500 taken off your income tax bill.

Employer Contributions for Business Owners

If you own or are a director of a limited company, your business can pay directly into your pension scheme, unlocking further tax planning advantages:

• Contributions are a tax-deductible business expense, reducing your Corporation Tax liability.

• No National Insurance is payable on pension contributions.

• Enables efficient profit extraction from your company.

For instance, a £10,000 employer pension contribution could reduce your company’s Corporation Tax bill by £2,500 (assuming a 25% tax rate), making the real net cost just £7,500. This approach is compelling for directors looking to build personal wealth outside salary or dividends.

Reducing Your Taxable Income Strategically

Pension contributions can help you manage your adjusted net income, which is particularly important if you are:

• At risk of losing your Personal Allowance (with income over £100,000).

• Subject to the High Income Child Benefit Charge.

• Trying to avoid the effective 60% tax rate on income between £100,000 and £125,140.

By increasing your pension contributions, you can reclaim lost allowances and reduce your overall tax liability, all while enhancing your retirement savings.

The Importance of Pension Guidance and Advice

The tax rules around pensions can be complex, and getting it wrong can be costly. Working with a qualified financial adviser ensures you:

• Understand your pension contribution limits and tax implications.

• Choose the most tax-efficient way to extract profits from your business.

• Maximise both short-term tax reliefs and long-term pension growth.

At Ifamax Wealth Management, we provide personalised pension advice and tailored financial planning to help you optimise your tax strategy and achieve your retirement goals.

Contact us today for a friendly, no-obligation conversation with one of our financial planners.

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.

According to the Federation of Small Businesses, as of early 2024, there were 5.45 million small businesses in the UK (0–49 employees), with approximately 4.1 million of these having no employees. This highlights the scale of the self-employed population.

The number of self-employed individuals in the UK grew from 3.2 million in 2000 to a peak of 5 million in 2020. Although this has dipped slightly, around 4.2 million people remain self-employed in 2024, according to Statista.

Being self-employed brings the freedom and flexibility of working for yourself and the full responsibility of planning for the future. Unlike employed individuals, you don’t benefit from an auto-enrolled workplace pension or employer contributions. You must build your plan for retirement income and financial protection for your loved ones.

At Ifamax Wealth Management, we specialise in pension advice for self-employed professionals, including freelancers, contractors, and business owners. Here’s what you need to know to secure your financial future.

Why Pension Planning Is Essential When You're Self-Employed

Whether you’re newly self-employed or have been running your own business for years, it quickly becomes clear that you are solely responsible for funding your pension.

While the UK State Pension offers a foundation, it currently pays just £230.25 per week (as of April 2025) if you qualify for the full amount. That’s roughly £12,000 a year—not enough to maintain a comfortable lifestyle in retirement.

Taking control of your pension early can significantly improve your future options. Consider the following:

• What pension pots do you already have? Should these be consolidated into a more cohesive strategy?

• What are your retirement goals—your needs, wants, and aspirations?

• Are you a higher-rate taxpayer? Pension contributions help reduce your tax bill.

• What is the cost of delaying? Even a short delay in starting pension contributions can dramatically increase the amount you’ll need to save later.

Proactive retirement planning for self-employed individuals ensures you’re not left playing catch-up.

Pension Options When Being Self-Employed

Self Invested Personal Pension (SIPP)

A SIPP offers greater flexibility and investment choice. You can select from various assets, including shares, funds, ETFS, and even commercial property.

Benefits include:

• Full control over how your pension grows

• Broad investment selection

• Ideal for experienced investors or those working with a financial adviser

Stakeholder Pension

These pensions are designed to be simple, accessible, and low-cost. They have:

• Low minimum contribution requirements

• Capped charges (usually at 1%)

• Flexible terms for stopping and restarting contributions

They can be a great starting point for new savers or those with fluctuating income.

Personal Pension Plans (PPP)

Pension providers offer these and typically come with professionally managed portfolios. You can:

• Contribute monthly or make lump-sum deposits

• Receive tax relief from HMRC

• Choose risk levels aligned with your goals

Each pension type supports flexible retirement planning with government-backed incentives such as tax relief on contributions.

How Much Should You Contribute?

This is the million-dollar question. Some reports suggest that you may need £500,000 or more to fund a comfortable retirement depending on your lifestyle expectations.

But there is no one-size-fits-all answer. The first step is to understand your situation:

• What income will you need in retirement?

• What existing savings or pension pots do you already have?

• How many years do you have left to save?

A general rule of thumb is to aim for 12–15% of your yearly income, but a tailored financial plan is far more effective.

Seek Professional Financial Advice

With multiple options and variables to consider, working with a pension adviser can make a significant difference.

At Ifamax, we help self-employed individuals:

• Select the right pension product.

• Build an investment strategy based on risk profile and time horizon.

• Maximise tax efficiency and government incentives.

• Create a retirement plan that evolves as your business and lifestyle change.

We’ll work with you to design a bespoke plan that provides financial freedom and peace of mind so you can confidently focus on running your business.

Contact Ifamax Wealth Management today to take the first step toward a more secure retirement.

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.

Planning for retirement has never been more important—or more complex. Today’s workers are likely to have multiple employers throughout their careers, so keeping track of various pension pots can become daunting. According to research from LV, the average person in the UK will have nine jobs in their lifetime and work for six different employers. Cengage Learning suggests millennials could have up to 15 jobs during their careers. Meanwhile, Gov.UK has projected that 2050, there could be as many as 50 million dormant and lost pension pots.

With so many changes and transitions throughout your working life, understanding your pensions and where they’re held is essential to achieving a financially secure future.

At Ifamax Wealth Management, we’ve been helping individuals take control of their pensions for over 20 years. Whether you’re just starting or nearing retirement, this guide provides clear and practical pension advice to help you make informed decisions.

Why Pension Planning Matters

Your pension will likely be one of your most valuable financial assets in retirement. Making the right choices today can help you enjoy greater freedom, stability, and peace of mind in later life.

Effective pension planning can help you:

• Build a robust pension pot that reflects your lifestyle and retirement goals.

• Make the most of tax-efficient pension contributions.

• Ensure long-term financial security for you and your family.

• Gain confidence that your retirement income is on track.

Workplace Pensions

Most employees in the UK are automatically enrolled into a workplace pension scheme, where you and your employer contribute regularly. This type of pension is often a strong starting point for your retirement savings.

Benefits of Workplace Pensions

• Employer contributions help grow your pension pot faster.

• Tax relief on your personal contributions.

• Often include additional benefits, such as death-in-service cover.

Types of Workplace Pensions

1. Defined Contribution (DC) Pensions
These are the most common types. Contributions are invested, and the final value depends on the performance of those investments.

2. Defined Benefit (DB) Pensions
Also known as final salary or career average pensions. These provide a guaranteed income in retirement based on your salary and years of service. DB pensions are increasingly rare in the private sector but remain prevalent in public sector employment.

Personal Pensions

A personal pension offers flexibility and control if you're self-employed or want to save more for retirement beyond your workplace pension.

Common Personal Pension Options

1. Stakeholder Pensions

• Designed to be simple and low-cost.

• Capped charges and flexible contributions.

• Suitable for those seeking an accessible, regulated pension option.

2. Self-Invested Personal Pensions (SIPPs)

• Offer greater investment choice and control.

• Ideal for individuals who want to manage their investments actively.

• Often used by those working with a financial planner to tailor their portfolio.

With a personal pension, you can build up retirement savings independently while still benefiting from government tax relief on your contributions.

State Pension

The UK State Pension is a government-provided income that becomes available once you reach the State Pension age—currently 66, with plans to increase it in the future.

Key Facts About the State Pension

• Based on your National Insurance contributions

• The full new State Pension is £230.25 per week (2025–26 tax year)

• Requires at least 10 qualifying years to receive anything, and 35 years to receive the full amount

Although the State Pension alone is unlikely to support a comfortable retirement, it is a valuable foundation in your broader retirement income plan.

Seeking Professional Financial Advice

Choosing the right pension strategy involves more than simply selecting a scheme. It requires a deep understanding of your current financial circumstances, future goals, and your attitude to risk.

Working with a financial planner can help you:

• Determine the optimal mix of pension types for your needs.

• Navigate the tax implications of contributions and withdrawals.

• Build a comprehensive retirement strategy that evolves with you.

At Ifamax Wealth Management, we take pride in offering tailored pension advice to individuals at every stage of life. Whether you’re just starting to build your retirement savings or preparing to draw an income, we’ll work with you to create a clear, personalised plan that puts your goals back at the centre.

Ready to take control of your pensions?
Speak with our experienced team at Ifamax Wealth Management today and start planning for a more secure financial future.

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.

Downsizing your home is a powerful financial planning strategy that can help you achieve a comfortable and sustainable retirement. While pensions, investments, and rental properties are common ways to fund retirement, selling your existing home and moving to a smaller or more affordable property is often overlooked. Yet, for many retirees, it offers a unique combination of releasing equity, lowering outgoings, and simplifying day-to-day living.

At Ifamax Wealth Management, we’ve supported many clients who have chosen to downsize for various reasons. Some do it to increase their retirement income. Others use the proceeds to help children onto the property ladder or reduce potential inheritance tax liabilities through lifetime gifting.

In this blog, we’ll explore the key financial benefits of downsizing, the practical considerations, and how to decide whether it’s the right move for your retirement plan.

Financial Benefits of Downsizing in Retirement

Some of the main financial advantages of downsizing include the following:

Release Equity from Your Property

If your home has appreciated in value over the years, selling it can unlock a substantial amount of money. This equity can then be used to:

• Supplement your retirement income

• Clear any outstanding debts or mortgage

• Gift to family members

• Contribute to estate planning strategies

We often help clients determine the best way to utilise these funds to support their long-term financial well-being and achieve peace of mind in retirement.

Lower or No Mortgage Costs

By moving to a smaller or less expensive property, you may be able to:

• Pay off any existing mortgage

• Eliminate monthly repayments

• Reduce financial pressure on your retirement income

This can increase flexibility in your finances, allowing you to allocate more money to lifestyle, travel, or unexpected expenses.

Reduced property tax

Downsizing can also bring tax benefits. Smaller properties are typically in lower council tax bands, resulting in lower monthly outgoings. For example, here are the 2025/26 Bristol council tax bands:

Lower Household Running Costs

Smaller or newer homes often come with reduced:

• Energy bills

• Home insurance premiums

• Maintenance and repair costs

These reductions can help your pension or retirement income go further and reduce the worry of unexpected costs later in life.

Potential Downsides of Downsizing Your Home

While the financial advantages are compelling, downsizing can also come with emotional and practical challenges. It’s important to weigh these carefully before making a decision.

Emotional Attachment to Your Home

Your home may carry decades of memories, particularly if it’s where you raised a family or lived for many years. Leaving can be emotionally challenging, and adjusting to a new environment may take time—especially if you’re moving away from long-standing neighbours or familiar surroundings.

Less Living Space

Smaller properties mean less room for:

• Hosting family gatherings

• Hobbies that require space (gardening, crafts, etc.)

• Storage for personal items or furniture

If entertaining or accommodating guests is a significant part of your lifestyle, this may require careful consideration.

Unexpected Costs in a New Location

Moving to a new area can sometimes come with hidden expenses:

• Higher travel or commuting costs

• Increased council tax or service charges

• Less access to amenities, requiring more car journeys

A thorough cost comparison can help avoid surprises.

Important Considerations Before Downsizing

Before taking the plunge, here are some practical questions to ask:

• What are the costs involved in selling and buying? (e.g. estate agent fees, solicitor costs, removal companies)

• Are there capital gains tax implications? (especially if you own multiple properties)

• What will the released equity be used for? (e.g. retirement income, debt repayment, gifting to children, inheritance tax planning)

• Is the timing right? (both financially and emotionally)

At Ifamax, we help clients weigh these questions within the context of their comprehensive retirement plan, considering income needs, legacy goals, and financial security.

Final Thoughts: Is Downsizing Right for You?

For many homeowners, downsizing can unlock opportunities to enjoy retirement with greater confidence and less financial pressure. It can also serve as a valuable component of an estate-planning strategy, helping you pass on wealth tax-efficiently.

If your property has appreciated, releasing some of that capital could provide flexibility, fund future care needs, or give you more options in retirement.

At Ifamax Wealth Management, we take a holistic view of your financial picture. We’ll help you explore whether downsizing aligns with your goals and, if so, how to utilise the proceeds effectively.

Ready to talk about retirement planning and whether downsizing could be right for you?

Contact us today for a friendly, no-obligation conversation with one of our financial planners.

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

When markets become volatile, investments often take centre stage. But true financial planning goes far beyond investments alone. Over the past 30 years, the financial planning profession has shifted from selling products to managing investments to focusing on each client’s unique goals and values.

So, how do investing and financial planning relate—and why is it important to understand the difference?

Understanding Investing

For many people, investing represents the most visible part of financial planning. Focusing on investment returns is natural, especially when markets are turbulent. However, short-term market movements are extremely difficult to predict, and no one has a crystal ball.

What we do know, with a high degree of confidence, is that over time, equities tend to outperform cash. Our investment strategy partners, Albion, highlight this point:

“Using a long-run global stock market dataset, stocks have outperformed cash in over 98% of 20-year rolling periods between February 1955 and September 2024. Over that time, global equities delivered an average real return of 5.6% per year, compared to just 1.2% for cash.”

While there are never guarantees, history suggests the odds are in your favour when you invest for the long term.

Another key to successful investing is diversification—spreading your investments across markets, sectors, and asset classes. This reduces the risk of being overly exposed to any one area and helps deliver a smoother experience over time.

At Ifamax Wealth Management, our investment approach is built on evidence. We don’t try to outsmart the market—we use diversified strategies that tilt towards areas historically shown to deliver strong returns. It’s not about being clever; it’s about helping clients sleep easily at night.

Financial Planning vs Investing

The difference between financial planning and investing comes down to focus.

Investing alone often leads to a DIY approach—appealing on the surface because it may appear cheaper. But it also places all the responsibility on your shoulders: from selecting investments to understanding complex tax rules and adapting your plan over time.

Financial planning, on the other hand, integrates investments within a broader strategy tailored to your life.

It’s about:

• Using the most tax-efficient tools for saving and investing

• Creating a sustainable retirement income plan

• Planning for intergenerational wealth transfer

• Adjusting your strategy as life changes

In short, investing is just one element of financial planning. When you focus only on investments, you risk missing the bigger picture—and the true value that financial planning can bring.

Coping with Market Volatility

Market volatility is normal. We can show you charts and historical patterns to support that. But we also understand that volatility creates worry, especially when you’re thinking about your future and your loved ones.

As Warren Buffett famously said:

“Be fearful when others are greedy, and greedy when others are fearful.”

In 2024, Buffett sold $134 billion in equities and held $334 billion in cash. As Armando Gonzalez of Biddata.com explained:

“He’s not trying to time the market’s bottom or chase quick rebounds. He waits for the risk–reward equation to shift decisively in his favour.”

It reminds us that no one can time the market perfectly. However, downturns often present opportunities for those who are prepared.

Financial Well-Being and Peace of Mind

This isn’t a question of financial planning vs. investing. Investing is a vital part of a broader financial plan—one built around your life, goals, and definition of success.

At Ifamax Wealth Management, we call this a “sleep easy strategy.” It’s a long-term, evidence-based approach designed to help you stay focused, even when markets feel uncertain.

We're here to support you if you feel anxious about the future. As Buffett suggests, moments of fear may be the best time to look for opportunity.

If you’re to discuss things further, please don’t 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.  

What global politics mean for your investments

A Changing Landscape

If you’re wondering how global politics could affect your financial plans, the return of Donald Trump to the political spotlight is a good place to start.

The United States currently imports more goods and services than it exports, resulting in a trade deficit. Like many developed nations, it’s also grappling with high government debt and an ageing population — challenges that can affect long-term economic growth.

Trump’s core supporters are based in regions like the "Rust Belt" — areas that have seen manufacturing jobs disappear over the years. His economic message focuses on bringing jobs back to the US and reducing reliance on foreign goods.

One of his main tools? Tariffs — taxes on imported goods. While not a new idea, tariffs are central to Trump’s strategy. But while they may sound simple, the knock-on effects are complex. Tariffs disrupt supply chains, push up prices, and create uncertainty in global markets — and, as we know, markets do not like uncertainty.

A Change in Tactics

In 2018, economist Matthew Rooney wrote an essay titled “Tariffs Are Great – If You Like Raising Prices, Undermining Jobs and Inhibiting Innovation.” It highlighted the risks of using tariffs as a form of economic leverage. Rooney wrote:

The fact is that tariff barriers weaken the middle class. In the short term, they raise consumer prices. In the medium term, they weaken the nation’s manufacturing competitiveness and undermine middle-class jobs. In the long term, they inhibit innovation……sapping the nation’s prosperity over time.

Despite this, it feels as though the US is moving towards a more protectionist stance — cutting itself off from the global economy rather than leaning into it.

Tariffs, Markets and Trump

Trump’s approach appeals to those who feel left behind by globalisation. But while tariffs may sound like a quick fix, the reality is more complex. The US doesn’t currently have the infrastructure to fully re-industrialise — building that capacity will take years, not months. In the meantime, consumers are likely to bear the cost through higher prices.

Tariffs are also a negotiating tool — a way for the US to reshape trade deals. Allies, like the UK, will likely end up with more favourable terms than major competitors, such as China. However, all of this will take time to unfold.

Markets thrive on certainty. When there is uncertainty — whether it’s around trade, politics, or the economic outlook — we often see increased volatility. In today’s world of 24/7 news coverage, this uncertainty can quickly turn into fear.

Despite the best efforts of economists, the truth is that we don’t know exactly what the future holds. Yes, tariffs could lead to inflation. Yes, they could spark a global recession. But no one knows when — or even if — that will happen.

What Does This Mean for Your Financial Plan?

Investments are an essential part of your financial plan — and market ups and downs are perfectly normal. We've seen this in 1987, 2000, 2008, 2018 and 2020. While these moments feel unsettling, they are a natural part of long-term investing.

Here are a few common questions we’ve been hearing from clients:

Should I be selling?

It can be tempting to sell during periods of volatility, but history shows that staying invested is often the best approach. Over the short term, markets fluctuate — but over the long term, they tend to grow. Try to zoom out. A single month may look rocky, but five-year returns often tell a different story.

Should I be buying?

If you have cash to invest, now can be a good opportunity. Why? Because you're buying when many investments are on sale. Markets often bounce back before the headlines change. Timing the exact bottom is near impossible — even for professionals.

Should I be worried about my retirement income?

If you’re drawing an income from your portfolio, our approach includes a mix of assets — such as bonds and property — designed to provide income during periods when stock markets are more volatile. We plan for times like these.

Should we change our investments?

Our investment philosophy is designed to help you sleep easy. That means avoiding the temptation to second-guess the market and instead focusing on areas that have historically delivered long-term returns. Your portfolio is diversified across asset types, including short-dated bonds and property, which can provide stability during uncertain times.

Next Step

Periods like this can affect more than just our finances — they can impact our overall sense of well-being. That’s completely understandable.

While we can’t predict the future, your financial plan is built to weather change. We've navigated storms before, and we’re confident in the strategy we’ve put in place for you.

If you’re feeling uncertain or would like to discuss things further, we’re here to support you. Please don’t 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.  

One of the most common questions we receive from clients is, “How safe is my money?” This is a valid concern, and it’s crucial to understand how your money is invested and the safeguards in place to protect it. At Ifamax Wealth Management, we want to break down the different components of your investments to help you feel confident in how your wealth is managed.

Our Role as Independent Financial Planners

At Ifamax Wealth Management, we are an independent financial planning firm authorised and regulated by the Financial Conduct Authority (FCA). This means that we operate under strict regulatory guidelines to ensure that we act in your best interests.

We are required to hold certain safeguards in place to ensure we can continue operating effectively. These include setting aside funds to allow us to trade and maintain personal indemnity insurance in case a claim is made against us. However, as a business, we are not regulated to hold client money directly. This means that should anything happen to our firm, the assets you have with us will be ring-fenced within your investment accounts. This ensures that your money remains safe, even if Ifamax Wealth Management faces financial difficulties.

How Does the Platform You Use Protect Your Money?

A key element of our investment approach is using a platform to manage your assets. A platform, in simple terms, is a tool that enables us to invest your money across different financial products, such as Self-Invested Personal Pensions (SIPPs) and Individual Savings Accounts (ISAs).

All the money held on these platforms is kept in trust and segregated from the platform's own funds. This is a critical safety feature. In the unlikely event that the platform itself faces financial issues, your money is protected. Creditors of the platform have no claim over the funds you have invested, and the platform cannot use your money to cover its own obligations. This separation provides an added layer of protection for your assets.

What About the Investments Themselves?

When it comes to investments, the most significant risk to your money is the potential for permanent loss of capital. While markets do fluctuate, a permanent loss means that the value of your investment falls to the point where it cannot recover. We’ve seen high-profile investment funds close, leaving clients with minimal returns. To mitigate this risk, we take a diversified approach to your investments, spreading your money across a range of strategies and asset classes. This diversification helps cushion the market volatility.

One question we often get is whether spreading your investments across multiple advisers, platforms, or products reduces risk. The short answer is: not necessarily. Since advisers do not have direct access to client funds, having more than one adviser or multiple platforms doesn’t significantly affect the safety of your money. However, working with more advisers could lead to increased complexity in managing your financial plan.

While diversifying investments across different funds makes sense, it’s also important to keep strategies straightforward. Overcomplicating things with intricate strategies can increase the risk, while a simple and clear approach reduces it.

Should You Spread Your Investments Across Multiple Advisers or Platforms?

As mentioned earlier, the risk to your money remains low when working with one financial adviser, especially since advisers are not authorised to hold your money directly. In terms of safety, it doesn’t matter if you have one or several advisers.

Similarly, since the platform does not have direct access to your money, spreading your investments across multiple platforms doesn’t necessarily reduce risk and may only add complexity to your financial planning.

It’s essential to have a clear strategy that focuses on straightforward, diversified investments. Overcomplicating your portfolio with too many platforms or advisers may not provide the added security you are looking for.

How Safe Is Your Money, Really?

In summary, the risk of your money being unsafe with a single financial planner and platform is minimal. The main risk lies in the investments themselves, but by adopting a careful, diversified strategy, this risk can be managed effectively. While we cannot protect against market fluctuations, we can take steps to reduce the chances of permanent capital loss.

Additionally, it’s important to note that the Financial Services Compensation Scheme (FSCS) provides protection for your investments up to £85,000 per institution. Should anything happen to the platform or financial institution managing your money, the FSCS will protect the first £85,000 of your investment.

At Ifamax Wealth Management, we take every possible step to ensure your money is as safe as it can be. If you have any concerns or questions about the safety of your investments, please don’t hesitate to get in touch with us.

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.  

As a business owner, reducing your corporation tax bill while transferring company money into your own hands is an appealing prospect. One of the most effective strategies for achieving this is by making pension contributions. Not only do these contributions benefit you, but if you are contributing for your employees, you can also offset these payments against corporation tax.

Additionally, you can reduce your tax and National Insurance by sacrificing part of your salary. This blog will explore how we’ve helped business owners optimise their pension savings while minimising tax liabilities.

How Pension Contributions Can Reduce Corporation Tax

By contributing to a pension scheme, your business can access a range of significant tax advantages:

• Tax Deductibility: Pension contributions are treated as allowable business expenses, reducing taxable profits.

• National Insurance Savings: Employer contributions are exempt from National Insurance contributions.

• Double Benefit: Both the employer and employee receive tax relief on contributions, making it a win-win for everyone.

Types of Pension Schemes That Help Reduce Corporation Tax

There are various pension schemes available to businesses that can help reduce your corporation tax bill:

• Workplace Pension Scheme: Employer contributions are deducted from your taxable profits.

• Self-Invested Personal Pension (SIPP): Offers business owners greater flexibility and tax relief on personal contributions.

• Group Personal Pension Scheme: Multiple employees can contribute under one employer scheme, with tax advantages for all.

Understanding the Tax Relief on Pension Contributions

Pension contributions provide multiple opportunities for tax relief:

• Employer Contributions: These contributions reduce taxable profits, lowering your corporation tax liability.

• Employee Contributions: Employees receive tax relief on their contributions, reducing their income tax.

• Contribution Limits: Contributions must be within the annual allowance to avoid excess charges.

Additional Benefits of Pension Contributions for Businesses

Pension contributions offer more than just tax savings:

• Attract Top Talent: A competitive pension scheme can be an appealing employee benefit.

• Boost Employee Morale: Showing commitment to your employees’ future financial security helps build loyalty.

• National Insurance Savings: Employer contributions are exempt from National Insurance, offering additional savings for your business.

When Should You Consider Pension Contributions for Tax Reduction?

To make the most of pension contributions for tax reduction, consider contributing at the following times:

• End of the Financial Year: Maximise tax relief by making contributions before the year-end.

• Annual Financial Review: Regularly review and adjust your pension contributions as part of your tax planning strategy.

• Employee Expansion: As your business grows, establishing or expanding pension schemes can yield substantial tax advantages.

Conclusion

Pension contributions are a powerful tool for reducing your corporation tax bill. By strategically contributing to pensions, you can:

• Lower your taxable profits

• Provide valuable benefits to employees

• Save on National Insurance contributions

With expert advice and thoughtful planning, pension contributions can boost your tax efficiency and your employees' financial future security.

Contact us today and see how we can help you on your pension journey.

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.  

Pension advice plays a crucial role in a holistic financial plan. Every individual has unique financial circumstances, so it’s important to tailor pension advice to your needs. With pensions being a long-term investment, understanding the nuances of what’s important to you and how to maximise the potential of your savings is essential.

The earlier you start saving for retirement, the easier it is to accumulate the funds needed to support your future. Pension advice is a fundamental part of a comprehensive financial strategy, offering significant tax advantages when investing, during the investment period, and at retirement. Understanding how to navigate these areas effectively can make a substantial difference in securing a comfortable retirement.

At Ifamax Wealth Management, we’ll guide you through your pension and financial planning to help ensure you take full advantage of the tax allowances available to you and maximise your future wealth.

What Is Pension Advice?

Throughout your career, it’s common to accumulate pension pots from different employers or make personal pension contributions. As you approach retirement, assessing these pensions is vital to ensure they align with your retirement goals. Unfortunately, many delay making these important decisions, especially when they’re at the peak of their careers.

The introduction of Pension Freedom reforms in 2015 and subsequent changes in the October 2024 Budget have made pension planning more complex. As a result, many people are uncertain about how best to manage their pension savings to optimise their financial future.

Pension advice, as part of a broader financial plan, ensures you:

• Make the most of valuable tax relief opportunities

• Consider your pension alongside other assets, ensuring you're fully utilising all allowances

• Gain a clearer picture of your inheritance tax liabilities and implement strategies to reduce them

• Explore the most tax-efficient ways to take income at retirement while considering long-term sustainability and inheritance tax planning.

At Ifamax, we work closely with you to navigate these complexities and ensure you have a comprehensive strategy for a secure financial future.

Why Is Pension Advice Important?

There are three main approaches to pension advice, each varying in complexity and responsibility:

1. DIY (Do It Yourself)
   With DIY pension management, you’re responsible for every decision—from how much you save to where it’s invested. While this offers full control, it also means all the responsibility lies with you, and mistakes can be costly in the long run.

2. Pension Guidance
   Pension guidance services provide a structured pathway to help you make informed decisions. While this can offer some direction, it’s important to remember that you remain responsible for your choices, and it doesn’t provide tailored in-depth advice.

3. Financial Advice
   Financial advice involves working with a professional to ensure your pension and broader financial plans are well-structured. Think of it as paying an annual fee to a specialist garage to maintain your car—when something goes wrong, you simply hand it over to the experts. Financial advisors take on the responsibility of managing your pension and ensuring it’s working efficiently, with advice tailored specifically to your needs.

Key Areas Covered in Pension Advice

Pension advice should be an integral part of your broader financial plan. It’s not just about saving for retirement but about strategically planning for the long term. Here are the key areas that pension advice covers:

1. Pension Consolidation
   Many individuals have multiple pension pots from various employers or personal schemes. Pension consolidation involves combining all these pots into a single strategy. This ensures a consistent charging structure and a unified approach, making it easier to manage retirement savings.

2. Retirement Strategy
   We understand that retirement planning is about more than just having enough money saved up. At Ifamax, we’ve developed a robust retirement strategy to ensure the best outcomes for you. We assess your current and future financial needs, and, most importantly, we regularly review your retirement plan to ensure that your income remains sustainable throughout retirement.

When Should You Seek Pension Advice?

There are various reasons why individuals seek pension advice. Often, it’s triggered by a major life event, such as a career change or nearing retirement, or simply a desire to take the stress out of managing complex financial decisions. The earlier you seek professional advice, the sooner you can build a secure financial future.

When you work with Ifamax Wealth Management, you’ll benefit from:

• Highly Experienced and Qualified Advisors: Our team includes chartered financial planners with deep pension and retirement planning expertise.

• A Holistic Approach: We don’t just look at your pension in isolation; we consider your entire financial situation to provide long-term, sustainable solutions.

• Clear, Jargon-Free Communication: Pension planning can be complex, but we’re committed to making the process straightforward.

• Client-Centric Focus: Your financial well-being is our top priority. We tailor our advice to meet your specific goals and ensure you’re completely satisfied with your plan.

Contact us today to explore how Ifamax can enhance your pension and overall financial plans, securing a prosperous future for you and your family.

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.  

Tax planning is crucial to running a successful business, and staying ahead of key tax changes is essential. With evolving tax laws, taking proactive steps now can help you minimise liabilities, optimise your business structure, and ensure compliance with HMRC regulations.

At Ifamax Wealth Management, we specialise in helping business owners navigate complex tax landscapes and plan for the future. Our second opinion service independently reviews your financial and tax plans and identifies strategies to enhance your planning.

Understanding the Key Tax Changes for 2025

The UK tax landscape is evolving, and business owners must know key updates that could impact their financial planning. Potential changes include:

• Corporation Tax Adjustments – Changes to corporation tax rates or thresholds may affect business profits and reinvestment strategies.

• VAT Considerations – Shifts in VAT rates or registration thresholds could influence pricing and cash flow.

• Income Tax and Dividend Allowance – Potential alterations to tax bands or allowances may impact how business owners draw income.

Additionally, HMRC’s focus on compliance means keeping up with tax deduction policies and reporting requirements is more important than ever. Ifamax Wealth Management helps business owners understand these changes and implement tailored strategies to remain tax-efficient.

Maximising Tax Efficiency for Business Owners

We work closely with your accountants, solicitors, and key advisers to ensure you are:

• Claiming Allowable Deductions – Identifying eligible expenses, such as business travel, professional fees, and asset depreciation, to lower taxable income.

• Optimising Business Structure – Choosing the right structure to minimise tax exposure, whether sole trader, partnership, or limited company.

• Salary vs. Dividends – Balancing income between salary and dividends to maximise tax efficiency.

Effective tax planning not only reduces liabilities but also ensures compliance. By working alongside your key advisers, we help you take advantage of all available reliefs and deductions to reduce your tax burden legally.

Common Tax Mistakes Business Owners Should Avoid

Avoiding costly tax errors is just as important as implementing tax-saving strategies. Common pitfalls include:

• Poor Record-Keeping – Inaccurate or incomplete financial records can lead to incorrect tax filings, penalties, and missed deductions.

• Missing Tax Deadlines – Late submissions can result in fines and interest charges from HMRC.

• Overlooking VAT Obligations – Failing to register for VAT when required or miscalculating VAT payments can lead to compliance issues.

• Incorrect Payroll Tax Filings – Misreporting PAYE and National Insurance contributions can trigger HMRC scrutiny.

Understanding these risks and working with professional tax advisers can help avoid unnecessary expenses and compliance issues.

Planning for the Future: Tax Strategies Beyond 2025

A well-structured tax and financial plan should address immediate liabilities and support long-term business success. We work alongside your key advisers to help you plan.

Key areas to consider include:

• Retirement Planning – Making tax-efficient pension contributions to reduce tax burdens while securing your financial future.

• Tax-Efficient Investments – To optimise wealth accumulation, explore tax-advantaged options, such as ISAs and Enterprise Investment Schemes (EIS).

• Business Exit & Succession Planning – Structuring an exit plan with minimal tax exposure to maximise returns when selling or passing on your company.

Business owners can develop a tax-efficient strategy that aligns with their long-term financial goals by planning.

Get Expert Tax Advice with Ifamax Wealth Management

Navigating tax complexities can be overwhelming, but you don’t have to do it alone. At Ifamax Wealth Management, we work alongside your accountants, solicitors, and other advisers to provide expert guidance tailored to your business needs.

Our team helps you:

• Implement smart tax strategies

• Avoid costly mistakes

• Plan for a financially secure future

Take advantage of our second opinion service today! Schedule a call with our team to explore tax-efficient financial planning strategies and ensure your business is well-prepared for the future.

Contact us now to get started.

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 more we earn, the more tax we pay. Often, it feels like only the super-rich can reduce their tax bills. However, there are simple and legitimate ways for individuals and business owners to lower their tax liabilities.

A financial planner does more than just meet with you once a year—they help you build a long-term strategy that aligns with your goals while ensuring you take full advantage of available tax allowances as you save and in retirement.

What Is Tax Planning and Why Is It Essential?

Stealth taxes—from capital gains and dividend taxes to inheritance taxes—can catch many people off guard. Yet, many taxpayers miss legitimate opportunities to reduce their tax burdens.

For instance, investing within an ISA allows for tax-free growth and income. Employers can also reduce corporate tax through pension contributions.

At Ifamax Wealth Management, we work with businesses, families, and individuals to help them maximise their tax allowances as part of a comprehensive financial planning service.

Maximise Your Personal Allowance

One of the simplest tax-saving strategies is utilising the Marriage Tax Allowance. If one spouse earns below the £12,570 personal allowance threshold, they may be able to transfer up to £1,260 of their unused allowance to their partner, reducing overall tax liability.

For business owners, deciding whether to pay yourself through salary or dividends can significantly impact your tax efficiency. Consulting with a financial planner can help you determine the most tax-efficient way to receive income.

Utilise Your ISA Allowance

With capital gains tax (CGT) applied to assets sold outside of pensions and ISAs, maximising your £20,000 annual ISA allowance is a tax-efficient way to grow your wealth.

Different ISA options include:

• Lifetime ISA (LISA) – Available to individuals aged 18-40, allowing up to £4,000 per year, with a 25% government contribution bonus.

• Cash & Stocks and Shares ISA – Offers up to £20,000 tax-free savings and investment growth.

• Junior ISA – For children under 18, with an annual limit of £9,000.

Make the Most of Pension Contributions

Pensions remain a highly tax-efficient way to save for retirement:

• Personal contributions receive tax relief at your marginal tax rate.

• Contributions automatically receive basic rate tax relief at the investment point, with additional relief claimable via self-assessment.

• You can carry forward unused allowances from the past three tax years, potentially increasing your contributions while benefiting from tax relief.

• Employers can contribute to pensions and offset these payments against corporation tax.

Use Tax-Efficient Investments (EIS, VCT, SEIS)

Enterprise Investment Schemes (EIS), Venture Capital Trusts (VCT), and Seed Enterprise Investment Schemes (SEIS) provide opportunities for tax relief (dependent on the specific product), including:

• Income tax relief

• Capital gains tax deferral or exemption

These investments are generally used once other tax allowances have been fully utilised and can be an effective way to diversify your portfolio.

Claim All Available Tax Deductions & Reliefs

Many people miss valuable tax relief opportunities. Some key reliefs include:

• Gift Aid – Higher-rate taxpayers can claim additional tax relief when making charitable donations.

• Marriage Allowance – Allows lower-earning spouses to transfer some of their tax-free allowance.

• Self-Employed Tax Deductions – Business-related expenses can often be deducted from taxable income.

At Ifamax Wealth Management, we work closely with our clients to ensure they are fully taking advantage of available tax reliefs.

Reduce Inheritance Tax with Estate Planning

With the Inheritance Tax (IHT) threshold fixed at £325,000 and an additional £175,000 residence nil-rate band, estates above £500,000 for individuals (or £1 million for married couples) are taxed at 40%.

Strategies to reduce IHT include:

• Regular gifting (taking advantage of annual gift exemptions).

• Setting up trusts to pass on wealth tax-efficiently.

• Life insurance policies are written in trust to cover IHT liabilities.

With potential pension taxation changes in 2027, estate planning has become more complex, making expert financial advice crucial.

Take Advantage of Capital Gains Tax (CGT) Allowance

CGT allowances have been significantly reduced:

• 2024-25 allowance: £3,000 for individuals, £1,500 for trusts.

• Previously £12,300 for individuals and £6,150 for trusts (2022-23).

Since CGT rates have increased on gains exceeding the allowance, careful planning—such as using ISAs, pensions, and staggered disposals—is essential for tax efficiency.

Salary vs Dividends: Tax-Efficient Ways to Get Paid

For company directors, deciding between salary and dividends affects tax efficiency. Key tax considerations include:

• Income Tax on Salary (England, Wales, Northern Ireland):

• 20% (basic rate) – £12,571 to £50,270

• 40% (higher rate) – £50,271 to £125,140

• 45% (additional rate) – Above £125,140

• National Insurance Contributions (NICs) for 2024-25:

• 8% on salary between £12,570 and £50,270

• 2% above £50,270

• 13.8% employer NICs on salary over £9,100

Dividend Tax Rates (2024-25)

• 0% allowance reduced to £500

• 8.75% (basic rate)

• 33.75% (higher rate)

• 39.35% (additional rate)

A tailored approach—balancing salary and dividends—can help business owners minimise tax liabilities while optimising income.

Seek Professional Tax Advice to Maximise Savings

At Ifamax Wealth Management, we work with businesses, families, and individuals to optimise tax planning strategies. Collaborating with accountants and solicitors, we ensure our clients make the most of available tax allowances and reliefs.

Tax laws change frequently, so seeking professional guidance can significantly affect your financial outcomes. Contact us today to start planning for a secure and comfortable future.

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.  

There's no shortage of adverts telling you how much you need for retirement—£250,000, £500,000, or even more. But the reality is that your retirement savings goal depends on several personal factors, including your income needs, age, lifestyle goals, and aspirations.

Financial planning is about more than just an annual review. It’s a lifelong process that takes you from building assets for retirement to managing your income in the most tax-efficient way possible.

Why Retirement Savings Matter

From April 2025, the New State Pension will be £11,973 per year—approximately £1,000 per month, assuming no tax is payable.

To put that into perspective:

• The average cost of essential bills (council tax, gas, electricity, water, and home insurance) is £400 per month (Zoopla).

• Broadband and a TV licence add another £40 per month.

• A single person’s average food bill is £135 per month (NimbleFins).

That leaves around £400 per month for everything else. While the state pension rises with inflation, it provides only the essentials, leaving little room for discretionary spending or unexpected costs.

The Cost of Delaying Pension Savings

A study by MyNestEgg highlights the impact of delaying pension contributions. It estimates that you need to start saving early to build a £1 million pension fund by age 65—assuming 20% tax relief and an 8% annual growth rate (before fees and inflation).

The key takeaway? The sooner you start, the less you need to contribute each month. Delaying your savings by 10 or 20 years can dramatically increase the amount you need to set aside.

Factors That Determine Your Retirement Savings Goal

One of the biggest challenges in retirement planning is determining how much you need. Advertisements and surveys suggest a ‘healthy’ pension pot, but financial planning is more than just numbers—it’s about understanding you.

At Ifamax, we’ve spent over twenty years refining our financial planning approach. We take the time to understand your goals, circumstances, and vision for retirement. We then assess your existing investments and how they align with those goals.

Key factors that influence your savings plan include:

• Your current age and expected retirement age

• Your desired lifestyle in retirement

• Your family circumstances and financial commitments

• Your existing pension and investments

Considering these elements, we can help you define a realistic and achievable savings goal.

How Much Should You Be Saving for Retirement?

How much should you save?

According to the Living Wage Foundation, individuals should aim to contribute at least 12% of their income to their pension. However, Living Pensions Research suggests that 16.1% of earnings may be necessary for a secure retirement.

 Some general benchmarks for retirement savings include:

• Saving 10-15% of your income throughout your working life.

• The 4% rule suggests withdrawing 4% of your annual retirement savings to sustain your income.

• Short-term vs. long-term savings strategies, ensuring a balance between immediate financial needs and future retirement goals.

A common issue is that many people don’t save enough for retirement. Young professionals may prioritise buying a home or career breaks over pension savings, leading to gaps that require higher contributions later. Understanding these factors can help you make more informed decisions.

Best Practices for Growing Your Retirement Fund

Employer Pension Schemes & Contributions

Employer pension schemes are a great starting point for those who are employed. Employers must legally contribute at least 3% to your pension, but many offer higher contributions or matching schemes. Taking full advantage of this is essential—it’s essentially free money towards your retirement.

Investment Strategies for Long-Term Growth

A key part of financial planning is understanding your risk tolerance.

• Risk vs. Volatility: Risk refers to permanent capital loss, while volatility refers to short-term price fluctuations. Historically, the longer money is invested, the lower the likelihood of loss.

• Diversification: Avoid putting all your money in one sector or market. Spreading investments across different asset classes reduces risk and increases long-term stability.

Adjusting Savings Based on Life Changes

Life isn’t predictable, and financial planning isn’t just about annual reviews. Major life events—such as changing careers, having children, or receiving an inheritance—can all impact your retirement plans. A good financial plan should be flexible and adapt to these changes.

Speak with Ifamax Wealth Management About Retirement 

There’s no one-size-fits-all answer to how much you need for retirement. While studies and guidelines provide estimates, your financial future is unique.

Ifamax Wealth Management specialises in helping business owners, families, and individuals build personalised retirement plans. Contact us today to start planning for a secure and comfortable future.

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.  

Running a business takes time and effort, from initial setup to scaling and growth. With so many responsibilities, financial planning and tax-saving strategies often take a backseat. However, smart tax planning can significantly reduce tax liability and free up capital for business growth.

At Ifamax Wealth Management, we have helped business owners across various industries for over 20 years. Below, we outline key tax-saving strategies to help you manage your tax burden effectively and improve your financial outlook.

Why Reducing Tax Liability is Crucial for Business Owners

Businesses are subject to multiple taxes, including corporation tax and National Insurance Contributions (NICs). Without proactive planning, tax liabilities can erode profits and restrict cash flow.

By implementing tax-efficient strategies, business owners can:

• Free up cash to reinvest in business expansion.

• Improve financial stability and long-term growth prospects.

• Ensure compliance with tax regulations while minimising liabilities.

• Create a more tax-efficient income strategy for personal wealth building.

Income Strategy: Salary or Dividends

As a business owner, you have the flexibility to structure your income tax efficiently. The most common approaches include salary payments and dividends. Understanding the tax implications of each is crucial for optimising your earnings.

Salary vs. Dividends

Salary

Taking a salary through your company means paying tax via HMRC’s PAYE system, similar to employees. This includes:

• Income Tax and National Insurance Contributions (NICs) are deducted at source.

• Tax-deductible expenses for the company, reducing taxable profits.

• Employer NIC obligations depend on salary levels.

While straightforward salaries can lead to higher tax liabilities than dividends.

Dividends

Dividends, paid from company profits, are a tax-efficient way to extract income. Key considerations include:

• No National Insurance Contributions (NICs) on dividend payments.

• A lower tax rate than salary (based on income tax bands).

• A dividend allowance of £500 for the 2024-25 tax year, meaning the first £500 of dividends is tax-free.

However, dividends are not tax-deductible for the company, meaning corporation tax still applies before distribution.

Pension Contributions: A Smart Tax-Saving Tool

Paying into a pension directly from your business is one of the most tax-efficient strategies. Pension contributions provide multiple benefits:

• Reduce Corporation Tax, as employer pension contributions are a tax-deductible expense.

• Avoid higher rates of Income Tax and National Insurance.

• Move business profits into personal wealth in a tax-efficient manner.

For example, if your company is subject to a 25% Corporation Tax rate, a £10,000 pension contribution would only cost the company £7,500 after-tax savings.

Pension Carry Forward

If you have unused pension allowance from the last three tax years, you can carry it forward to make larger contributions in the current year. This is especially beneficial for business owners with fluctuating incomes or those looking to make significant contributions before retirement. However, strict rules apply, particularly regarding earned income and the purpose of contributions.

Charitable Giving: A Tax-Efficient Strategy

Making charitable donations through your business can also help reduce tax liability. Charitable contributions can be deducted from profits before tax, reducing your overall Corporation Tax bill. Business owners can donate via:

• Direct financial contributions.

• Donating equipment or assets.

• Sponsorship of charitable events or initiatives.

Not only do charitable contributions offer tax benefits, but they also enhance corporate social responsibility and brand reputation.

Collaborating with Tax and Financial Professionals

Navigating tax planning strategies requires expertise and careful consideration. Working with professional tax advisors, accountants, and financial planners can help ensure you:

• Maximise tax-saving opportunities while staying compliant with regulations.

• Plan effectively for future financial goals, including business succession or sale.

• Implement tailored strategies based on your income structure and business needs.

At Ifamax Wealth Management, we collaborate with your existing professional network to create a holistic tax and financial plan that aligns with your long-term objectives.

Conclusion 

Reducing tax liability is an essential part of business owners' financial planning. By structuring income tax efficiently, leveraging pension contributions, making charitable donations, and working with experienced professionals, you can optimise tax savings and reinvest more into your business’s future.

At Ifamax, we understand that growing a business is a priority. We help business owners implement simple yet effective tax strategies. Contact us today if you’d like to explore tax-saving opportunities tailored to your situation.

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.