Adam Lord Financial Planner

Quick Wins for Company Directors: Maximising Pension Contributions 🚀

For company directors, making personal pension contributions is one of the most effective financial planning strategies available. With limited tax breaks for businesses, this opportunity shouldn’t be overlooked 👀

Key benefits include:

✅ Immediate tax relief – Potential for up to 45% income tax relief

✅ Corporation tax efficiency – Contributions can reduce corporation tax liability, with rates rising up to 26.5%

✅ National Insurance savings – Reduce employer NI (currently 13.8%, rising to 15%) and employee NI (8%/2%)

✅ Long-term financial security – Moving funds from the business into a pension can help secure your future, while also protecting against changes in tax and legislation

✅ Boosting business saleability – A company making pension contributions while remaining profitable may appeal more to potential buyers

✅ Earnings flexibility – Even with a lower salary, directors can still contribute up to the full £60,000 annual allowance. Consulting an accountant is advised

✅ Carry Forward opportunity – Unused allowance from the past three years could allow for additional contributions this tax year

Transferring funds from a corporate structure into a personal pension could be a valuable step toward securing financial well-being for you and your family

We all want to do the right thing for our families and loved ones, both now and when we’re no longer around. But what’s the best way to pass money and assets on? 🤔

Making full use of your pensions and all your tax allowances is fundamental to family-friendly estate planning.

➡️Here’s some top considerations for wider estate planning:

How to avoid inheritance tax traps How to avoid inheritance tax traps

New Year, New Financial Goals! 🎉💷

The start of a new year is the perfect time to review your financial plans and set actionable goals to stay in control. Here are 3 simple steps to get started:

1️ Review Your Budget: Take a fresh look at your income and expenses. Are there areas where you could save more or invest smarter?
2️ Set Clear Goals: Whether it’s saving for a big purchase, boosting your pension, or growing your investments, having a target helps you stay focused.
3️ Protect Your Future: Review your protection policies to ensure your loved ones are covered and your plans stay on track, no matter what life throws your way.

Remember, small, consistent steps can lead to big results. If you'd like tailored advice on how to make the most of your finances in 2025, feel free to get in touch – I’m here to help.

Here’s to a successful year ahead! 🙌

The value of an investment with St. James's Place may fall as well as rise. You may get back less than the amount invested.





Adam Lord Wealth Management is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority)

SJP Approved 03/01/2025

🤔 How much money do I need to retire??? 🤔

This is the most frequently asked question I get when seeing clients 💡

Helpfully, the Pension and Lifetime Savings Association predicts approximately how much individuals and couples will need in their pension pot, to have a comfortable, moderate or minimum standard of living in retirement.
The PLSA’s latest figures, released in February 2024, show that a single person will now need:

📌 £14,400 a year to achieve the minimum living standard, a rise of £1,600.
📌 They would need £31,300 a year for moderate, and
📌 £43,100 a year for a comfortable lifestyle, which includes a two week holiday in Europe and several UK mini breaks.

For couples, the price tag of these three lifestyles is:

📌 £22,400 for minimum
📌 £43,100 for moderate
📌 £59,000 for comfortable

Assuming you qualify for the full annual State Pension of £11,502 (2024/25), the PLSA says you’ll still need to build up a pension pot worth more than £590,000 to achieve a comfortable retirement. This is if you want to turn your pension into an annuity, which pays you a guaranteed annual income for life in retirement.

We all deserve a comfortable retirement. And planning your longer-term finances now will make you feel confident and in control of some of the best years of your life.

Have you thought about what retirement might look like for you ❓
Do you know how much income your pension will provide once you get there ❓
If your current pension is falling short of your future lifestyle goals, what can you do to rectify this ❓
If you would like to get to grips with your pension and be comfortable in the fact that you know you can retire when you want and live the lifestyle you desire, lets chat ✔

Feel free to check out my website www.adamlordwm.co.uk, which has a number of useful calculators, including a pension calculator. Which of the three tiers above are you on track for?

The value of your investment can go down as well as up. You could get back less than you invested.






Adam Lord Wealth Management is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority)
SJP Approved 03/12/2024

Source
Retirement Living Standards, Pensions and Lifetime Savings Association, 2024. All figures quoted were developed by the Centre for Research in Social Policy at Loughborough University on behalf of the PLSA. 05/07/2024

🏃‍♀️🏃‍♂️ Active vs Passive 🏄‍♂️ Fund Management – Which Should You Choose❓

Long has been the debate over whether active fund management is superior to passive, and vice versa. In reality, the answer isn’t as clear cut as either or, could people be missing a trick by writing off one avenue completely⁉

💡 Here's the quick version:

Passive funds are low-cost and follow a specific index (like the FTSE 100). Simple, steady, but no frills.
◻ During long periods where financial markets do well, the voice of the passive investor tends to be heard most loudly. These are periods in which it is relatively easy to deliver positive returns – the rising tide lifts all boats.

Active funds are run by managers trying to beat the market. Higher fees, but they can adapt and potentially deliver more.
◻ Markets don’t always move rationally, and a good active approach can spot opportunities a passive fund simply can’t.

That said, no one has a crystal ball. A blended approach can often strike the right balance as well as controlling costs and remaining flexible.
What’s your current strategy? Let’s chat below 👇

The Land Grab 👨‍🌾

There will be a significant impact to many after the changes announced in the Budget 2024 around Business Property Relief and Agricultural Property Relief.

📌 Relief of up to 100% is currently available on qualifying business and agricultural assets.

📌 From April 2026 (In addition to existing nil-rate bands and exemptions) the first £1,000,000 will be exempt from Inheritance Tax however, anything over and above this will subject to IHT with a 50% relief, reducing the IHT from 40% to an effective 20%.

📌From April 2026 AIM shares, which currently attract 100% business property relief (providing the shares have been held for a minimum two-year qualifying period), will have a reduced rate of business property relief available from 100% to 50%.

👨‍👩‍👧‍👦 However, with careful forward planning there are a number of ways to mitigate inheritance tax (IHT) and pass on wealth in tax efficient ways, which will help to secure the future of the farm or business assets.

📌 This can be done through gifting and/or utilising the flexibility of trusts. Whether this be by way of outright gifts or gifts into trust.

📌 These are very technical and complex areas which require a detailed understanding of the future plans and potential implications of implementing either of these financial instruments.

Carried Interest 📈

📌 The normal and higher rates of Capital Gains Tax on carried interest have been consolidated into a single unified rate of 32% from April 2025.

Much to think about and luckily still ample time to take a pre-emptive approach to your planning 🧐✔

Now the dust has started to settle, following on from Labours Autumn 2024 Budget, a few key financial planning headlines 👀

📌 No increase to income tax, National Insurance or VAT on individuals.

📌 Income tax thresholds are frozen until 2028 however, it was confirmed they will be increasing from 2028.

📌 As a result, as wages increase each year, more and more people will be pushed into the higher rate tax bandings resulting in more tax being paid. A phenomenon referred to as fiscal drag.

Capital Gains Tax 🌱

Currently:
📌 10% for basic rate
📌 20% for higher rate

As of 30th October 2024:
📌 18% basic rate
📌 24% higher rate

The capital gains tax annual exemption allowance remains at a modest £3000 🤔.

Employers 🏢

📌 National insurance for employers is increasing from 13.8% to 15%.

📌 In addition, the earnings threshold on which this tax becomes liable will reduce from £9100 currently to £5000 🤯.

📌 As a slight temper to this, the employment allowance for small businesses will be increasing from £5000 up to £10,500 (To be eligible, employers must be registered, have employees, and have had an NI liability of less than £100,000 in the previous tax year).

📌 Corporation tax has been capped at 25%.

Potentially the biggest change is around Pensions 🏌️‍♂️🏖

📌 The plan is to bring most unused pension funds and death benefits within the value of a person’s estate for Inheritance Tax purposes from 6 April 2027.

📌 Plenty of speculation ahead of the budget around the pension 25% tax free cash lump sum being reduced. This remains unchanged at £268,275.

📌 Currently, if you die before aged 75 your pension will pass on free of any inheritance tax. If you die aged 75 or over then your pension will be subject to income tax at your beneficiaries marginal rate.

📌 From April 2027, if you die before aged 75 your pension will be subject to 40% IHT (on the amount that exceeds the nil rate band of £325,000). If you die aged 75 or over your pension will be subject to IHT at 40% plus your beneficiaries will be liable to pay income tax on the amount they inherit, at their marginal rate.

📌 This applies to both defined contribution and defined benefit pensions.

📌 There is a 12 week consultation happening on this now and so we may see some amendments to this.

📈 The Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) schemes, which carry some major income tax relief advantages, are set to stay.

Some major changes from the new Labour government and some key financial planning areas to address 💯

Is it better to save or to invest your money? Each can support your financial wellbeing and future goals, but in different ways. We look at the differences, the pros and cons, and what it means for you and your family: https://partnership.sjp.co.uk/article/detail/sjpp/should-i-save-or-invest-how-to-choose-wisely-and-well.html

Should I save or invest? How to choose wisely, and well Should I save or invest? How to choose wisely, and well

Something I have become very passionate about is financial education. After witnessing a number of family members and close friends suffer as a result of not knowing where to turn when making some major financial life decisions. This was, in part, what inspired me to become a financial planner 💯

Having the appropriate knowledge and tools available to help individuals discover what can be achieved when making more informed, goal based financial decisions ahead of time. This has proven to be the key to long term financial success. Having the plans already laid out ensures that come what may, we have a solution or at least a pragmatic framework from which we can establish the most appropriate next step for the individual based on their unique goals and aspirations 😎

This is why I'm excited to share I am now officially accredited to deliver financial education 👨‍🏫. I'm keen to begin working with local schools and workplaces to help empower individuals of all ages to make more constructive financial decisions regardless of what stage of life they may be at 🤝🤗

Time vs Timing 🤔

When it comes to investing we can all become too focused on trying to buy at the most opportune time 🎯. This can ultimately become very costly in the long term.

As the below article illustrates, if you missed just 10 days out of a possible 7300, the investment would have returned 29% less growth 🤯🤯🤯

Focus on the time you stay invested, not the timing of your investments 💯

'If you had invested £10,000 in the average investment trust 20 years ago and left it untouched, your money would have grown to £50,633 by today.
However, if you had missed just the five best days in the market, that figure would have dropped to £41,428 – 18% less. Miss the ten best days and your investment would be worth £35,933, 29% less than if you had been invested through the whole period.'
https://professionalparaplanner.co.uk/techzone/why-it-pays-to-stay-invested-and-ride-out-the-downturns/

Links from this post exist for information only and we accept no responsibility or liability for the information contained. Please note that clicking a link may open the external website in a new window or tab

1.Source: theaic.co.uk / Morningstar. All performance figures are for the 20 years to 09/05/24, with days omitted as indicated. Share price total return, average investment trust ex VCTs. 11th June 2024

Why it pays to stay invested and ride out the downturns - Professional Paraplanner Missing the 20 best days in past 20 years could have cut final your investment value by 43%, points out Annabel Brodie-Smith, Communications Director of the Association of Investment Companies. All over the world, equity indices are hitting fresh all-time highs. The S&P 500 has set over 20 fresh rec...

Lost the plot!! 😵

How many of us have worked for multiple employers?? 🙋‍♂️

You may be wondering how it’s possible to ‘just lose’ a pension pot but this is a significant problem. According to The Pensions Policy Institute, in 2022, there were over 2.8 million* pension pots that are considered lost and have not been claimed by their rightful owner. If you think, over the course of your lifetime, it's common to change jobs, careers and potentially end up with multiple pension plans from different employers. Other life events can cause people to lose track of pensions too, for example, moving house and not updating pension providers with the new address. With a staggering £26.6 billion* of unclaimed pension money it’s certainly worth looking into. 🤯🤯

*Source: The Pension Policy Institute, – Lost Pensions 2022: What’s the scale and impact?

Do you have knowledge about the locations of your different pension accounts, are you informed about their performance, and do you possess the necessary information to access these pensions when you're ready to draw from them?

Here’s how I can help you 😁

1. Consolidating Information – I can assist you in gathering information about your pension pots, including where they are held, any associated fees or charges and their performance.

2. Performance Evaluation – by analysing the performance of each pension pot, I can provide insights into how well they are growing and whether adjustments need to be made to optimise returns.

3. Risk Assessment – I can assess the level of risk associated with each pension pot and clarify whether your investments align with your risk tolerance and long-term financial goals.

4. Reviewing Options – dependent upon your goals and financial situation, I can advise on the best course of action for managing your pension pots, such as reallocating assets to ensure better diversification and mitigated risk.

5. Providing Guidance – I am here to help educate you around the various drawdown options available to you when you retire and provide support to ensure you choose the most suitable option based on your individual circumstances.

6. Regular Monitoring – as part of my ongoing support we will sit down to regularly review the performance of your pensions, making adjustments as required along the way and keeping you informed about any changes in pension regulations or investment strategies that may affect your retirement planning.

The value of your investment can go down as well as up. You could get back less than you invested.

Adam Lord Wealth Management is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority).

SJP Approved 03/04/2024





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Adam Lord Wealth Management | Financial Adviser | Manchester Based in Manchester, as an experienced wealth manager I pride myself on building long term relationships with my clients. I specialise in helping my clients clarify their own personal goals, dreams...

🔐 Protection plays a major role in financial planning. Here’s why and some of the factors to consider 🧐

With the stresses that everyday life can throw at us, sometimes, ignorance truly is bliss 🤔

However, when it comes to finances, ‘preparing for the worst’ and ‘hoping for the best’, could save you and your family from financial pain 💯

A financial protection plan is an effective way to provide yourself and your loved ones with reassurance and an income to ensure your bases are covered should the worst happen. Without a suitable protection plan you could be putting your hard-earned money at risk 💸

There are a plethora of different types of protection available which could protect your finances. Some can provide your family with a large sum if you were to pass away, while others can ensure you are paid a regular salary (potentially right up to retirement) if you are suddenly unable to work, for example due to accident or sickness 😎

Relying on the state to provide for us in these events is an oversight and the onus of protecting our families falls more and more on the individual.
Now whilst these topics are not necessarily the most cheerful, none the less they are very important areas to prepare for as the reverse could result in a much more unpleasant experience.

For guidance and support in building the most appropriate protection plan you and your family, reach out to me for a ‘no-obligation’ consultation to ensure your affairs are in order 🤝

Adam Lord Wealth Management is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority).

SJP Approved 10/05/2024