3 fantastic benefits of leaving a charitable legacy in your will
by Phil Clerkin on May 29, 20243 valuable pension lessons workers can learn from retirees’ regrets
by Phil Clerkin on May 29, 20242 in 5 UK retirees have retirement regrets, according to a Canada Life survey. If you’re saving towards your future, you could learn some valuable pension lessons and avoid repeating the same mistakes.
Securing the retirement you want often means thinking about this milestone many years before you celebrate it. One of the key challenges is balancing your financial needs and goals now with your long-term ones. Retirement regrets indicate it’s something many people struggle with.
So, if you’re still working and saving for retirement, here are three lessons you could learn from older generations.
1. 17% of retirees wish they’d increased pension savings while working
The Canada Life research suggests one of the biggest retirement regrets is simply not saving enough – 17% of those surveyed said they wished they’d increased their pension contributions. Similarly, 12% said they regret not making lifestyle adjustments earlier in life to allow them to save more for their later years.
While auto-enrolment means you’re likely to be paying into a pension if you’re an employee, simply paying the minimum contribution may lead to a pension pot that falls short of your expectations.
Indeed, a report from the Phoenix Group, noted: “There is widespread consensus that current auto-enrolment contribution rates are unlikely to provide an adequate retirement income for most savers.”
The report advocates increasing the default pension contribution rate from 8% to 12%. While the current government hasn’t indicated that it plans to do this, you can choose to increase your contributions, and some employers also offer higher pension contributions as part of their benefit package.
As your pension is often invested and benefits from compounding over a long time frame, reviewing your contributions now could mean the extra money really starts to add up.
The report notes that changing the minimum contribution level to 12% now could lead to a typical 18-year-old today having an extra £96,000 in their pension at retirement. However, as the graph below shows, delaying by even five years could lead to significantly less.

Source: Phoenix Group
Having a clear goal can be useful if you want to ensure you’re saving enough – how much do you need in your pension at retirement to live the lifestyle you want? From here you can work backwards to understand how much you need to contribute to your pension to make your goal more achievable.
Of course, setting a pension pot target isn’t always straightforward. You’ll often need to consider areas like life expectancy, inflation, and investment returns. Working with a financial planner could provide you with a tailored retirement plan that considers these factors.
2. 43% regret not accessing advice or guidance
Separate research from Standard Life found that more than 4 in 10 retirees regret not accessing advice or guidance either at the point of retirement or when they were still working. The survey results found:
- 51% wished they had more information about how to plan and prepare for their retirement
- 42% said they should have sought advice or guidance to plan for their retirement
- 37% said they should have sought advice or guidance before they accessed their pension savings.
You don’t have to be nearing retirement to benefit from professional financial advice. Seeking advice ahead of retiring could be useful throughout your career.
A tailored retirement plan could help you assess what steps you may take to improve your financial wellbeing once you stop working, and regular reviews provide an opportunity to see if you’re on track and what adjustments you might make.
3. 8% of retirees say they would have retired later than they did
Perhaps surprisingly, the Canada Life survey revealed that 8% of retirees wish they’d retired later than they did.
For some, this regret may come from wishing they’d delayed retirement so they could contribute to their pension for longer and enjoy greater financial security now. Yet, the report notes that others wished they’d worked for longer due to the potential mental health benefits.
Work can provide a structure and sense of purpose that some people miss once they retire. Phasing into retirement by slowly reducing your hours or taking a less demanding role could help you strike a work-life balance that suits you.
Incorporating your lifestyle goals into your retirement plan, rather than simply focusing on the numbers, could be useful too. Considering how you’ll fill your days in retirement and what will continue to make you happy might mean you’re less likely to live with regrets.
Get in touch to start planning for your retirement
It’s never too soon to start thinking about your retirement. In fact, taking control of your retirement plan sooner could mean you have more options, enjoy the retirement you’re looking forward to, and offer peace of mind during your working life. Please contact us to arrange a meeting to discuss your retirement plan.
Please note:
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
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by Phil Clerkin on May 29, 2024How a financial plan could alleviate your inflation worries
by Phil Clerkin on May 29, 20245 effective tips that could help you cut impulsive financial decisions
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by Phil Clerkin on May 29, 20243 useful options you may want to consider when passing on assets to your loved ones
by Phil Clerkin on April 30, 2024How “slow productivity” could boost efficiency
by Phil Clerkin on April 30, 2024As the UK’s productivity shrinks, you might find yourself reading more tips about how to increase the amount of tasks you complete in a day. But instead of boosting your productivity, some researchers have instead suggested slowing down.
Read on to learn the advantages of “slow productivity”, and how it could benefit you.
What is “slow productivity”?
One way researchers have found to improve our productivity on a personal level is to go against our instincts and slow down.
In his book Slow Productivity, Professor Cal Newport suggests that blocking off time to work on one task without distractions can help to produce more meaningful and higher quality work in a way that’s sustainable long term.
His strategy asks us to redefine productivity. Instead of focusing on busyness and rushing through tasks, slow productivity concentrates on the quality of your work by listening to your physical and emotional needs, rather than the quantity.
What are the benefits?
In his book Rest: Why You Get More Done When You Work Less, Alex Soojung-Kim Pang asks you to consider three questions when implementing slow productivity:
- In what work environment do you do your best work?
- What practices support sustainable productivity – for example, do you prefer a sprint or a marathon?
- What kind of work are you doing, and does it demand speed or thought?
Designing the ideal environment and working practices for your job can help you avoid the stress of hustle culture and regain a healthy work-life balance.
Taking it slow can reduce the risk of suffering from burnout, ensuring that you remain satisfied with your career, and delivering work that you are proud of can help you stay passionate about your job for longer.
How can you implement slow productivity in your life?
Introducing slow productivity into your life may look different for everyone. However, these tips could help you get started.
Avoid distractions
According to new research from Georgetown University, people can only focus on one screen for 47 seconds on average, and the brain takes 25 minutes to refocus on a task after a distraction.
Even something as simple as answering messages or checking your emails can throw you off, so it’s important to stay focused while completing a task.
Turning off notifications, using software to block distracting websites such as social media, and telling your coworkers that you will be unavailable for a period of time are all ways to avoid distractions while you are working.
Don’t rush
Planning can help you maximise the number of tasks you can complete in your workday, but it’s important to remember that getting to the bottom of your to-do list isn’t possible every day.
Although no one can avoid the occasional time-sensitive project, be careful not to pressure yourself by adhering to unreasonable deadlines. Rushing to complete something so you can get the task out of the way can cause stress and lower the quality of your work.
Disconnect
Having a healthy work-life balance is vital to avoid burnout. Set strict working hours and ensure you respect your personal time because taking time away from your job and allowing yourself to rest will improve the quality of your work in the long run.
Stepping away from any task – whether it be work, learning a new skill, or another project – is a brilliant way to come back to it with more passion and motivation at a later date.
Trial and error
It’s important to remember that everyone’s brain functions differently, so you must find a productivity method that works for you. For example, while some people might thrive on routine, others may require regular changes in their day-to-day tasks to keep them interested.
Finding what works for you is vital. If you aren’t sure what that looks like yet, don’t be afraid to try out different productivity methods until you discover the perfect one for you.
read moreHow to beat the potential harmful effects of “loss aversion” on your wealth
by Phil Clerkin on April 30, 2024“Loss aversion” is a type of bias that could affect how you manage your finances. It’s a concept that was developed by renowned psychologist Daniel Kahneman, who won a Nobel Prize for his influential work and sadly passed away in March 2024. To celebrate his life, read on to find out more about loss aversion and how it could impact you.
One of Kahneman’s main arguments is that people’s behaviours are rooted in decision-making. He noted that bias and heuristics – the mental shortcuts you make to solve problems – are important for making judgements quickly. However, the downside to quick decision-making is that errors can occur. One of the biases he defined was loss aversion.
Losses are more “painful” than gains
In 1979, Kahneman and his associate Amos Tversky coined the term “loss aversion” in a paper. They claimed: “The response to losses is stronger than the response to corresponding gains.”
In a study, Kahneman and Tversky asked participants if they’d rather have a:
A. 50% chance of winning 1,000 Israeli pounds and 50% chance of winning nothing
B. 100% chance of winning 450 Israeli pounds.
People were more likely to choose option B, despite the potential for larger returns if they chose A. The research found that loss aversion gets stronger as the stake or choice grows larger.
Further research highlighted that loss aversion could affect decision-making skills even when the risk of losing was very low. For example, participants were asked which option was more attractive:
A. A 33% chance of winning $1,500, a 66% chance of winning $1,400, and a 1% chance of winning $0.
B. Winning a guaranteed $920.
Even though option A only had a 1% chance of winning nothing – and the other outcomes were better than option B – loss aversion theory suggests that people are still more likely to choose option B as they think in terms of their current wealth rather than absolute payoffs.
The theory suggests that you’d feel losses more keenly than gains, which could affect how you manage your finances.
2 ways loss aversion could affect your investment decisions
There are many ways loss aversion might affect your decisions, particularly when you’re investing. Here are two examples.
1. Loss aversion may mean you’re more likely to react to investment volatility
If you want to avoid losses, you may be more likely to make knee-jerk decisions if markets experience volatility, whether it’s your investments that have fallen or the wider market. Snap judgements that are based on fear and other emotions could lead to decisions that aren’t right for you.
2. Loss aversion could mean you’re reluctant to let go of assets
In contrast to the first example, loss aversion could mean you hold on to assets even after it made sense to sell them as part of your wider investment strategy because you don’t want to make a loss. In some cases, it could mean the loss grows or that your overall portfolio is no longer aligned with your risk profile and goals.
How to reduce the effect of loss aversion on your financial decisions
Bias affects everyone when they’re making decisions. It can be useful if you need to make decisions quickly based on your previous experiences and information. Yet, when you want to make financial decisions based on logic, there are ways to reduce the effect loss aversion might be having.
- Try to emotionally detach from your finances
It can be hard to limit the effect emotions have on your financial decisions. After all, your finances are likely to play an important role in how secure you feel and whether you’re able to reach your goals. Yet, not letting emotions rule your decisions could limit the impact of bias.
Avoiding reading the news, which might report on how markets are “soaring” or “tumbling” could help you reduce decisions that are based on emotions rather than facts. Similarly, while it might be tempting to check in on your investments every day, doing so less frequently could help you manage the emotional effects volatility can have.
- Create speed bumps to slow down
Emotional decisions are more likely to happen in response to a particular event. For loss aversion, you might decide to sell investments after hearing in the news that a “crash” is coming, or after your investments have experienced a dip.
Often, a bit of time to think gives you a chance to reassess your initial decisions and removes some of the bias that may have been influencing you. So, creating speed bumps to slow you down might be useful. For instance, making yourself wait two days before actioning any changes to your investments may provide the space you need to think logically.
There will still be times when you decide acting on information is right for you. A speed bump might mean you feel more confident about the decision because you’ve given it extra thought.
- Look at the bigger picture
When you’re investing, it’s likely the value of your assets will fall at some point. Looking at the wider picture could help you put the losses into perspective and consider how to respond.
Let’s say a particular stock has fallen by 10% in a week. No one wants to see that when they review their investments, but how has it performed over the long term? If that stock has delivered consistent growth over several years, you may still have made a gain over the long term, and its value could bounce back.
In addition, how has the value of that stock performed in relation to other assets you hold? Gains in other areas might help to balance it out and mean that, overall, your wealth hasn’t fallen.
- Work with a financial planner
Working with a finance professional may help you better understand when bias is affecting your decisions. Having someone with a different perspective who understands your circumstances and goals may be valuable. They could highlight when you’d benefit from taking a step back and considering alternative options.
Please contact us if you’d like to arrange a meeting with a financial planner. We can discuss how we could support your goals and work with you to create a tailored financial plan.
Please note:
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
read moreDisclaimer: The information provided in our website blogs is accurate and up-to-date at the time of writing. However, please be aware that legislative changes and updates may occur after the publication date, which could potentially impact the accuracy of the information provided. We encourage readers to verify the current status of laws, regulations, and guidelines relevant to their specific circumstances. We do not assume any responsibility for inaccuracies or omissions that may arise due to changes in legislation or other factors beyond our control.
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