May 2022

5 times when financial advice is particularly important for you and your family


Taking financial advice is useful no matter who you are or what point of life you’re at.

Of course, there are also specific times when it’s invaluable to have an expert to hand who you can discuss the complicated matters you’re not sure on, helping you navigate through tumultuous waters.

Here are just five times when working with a financial expert is especially valuable for you and your family.

1. You’re at or approaching retirement

Retirement is a huge life change. Suddenly, you go from waking up every day for work to not having this same structure in place.

Obviously, retirement is also enormously significant from a financial perspective. Once you finish working, your income will likely drop as your salary stops coming in and you start relying on your pension, savings, or any other methods you intend to use.

Taking financial advice at this stage can be invaluable. A planner can show you whether your income is sufficient for what you want to achieve in later life, giving you the confidence to live the lifestyle you want.

Equally, they can recommend strategies to get you on track if you’re short of where you need to be. These methods will take your goals and personal circumstances into account, tailored to your specific requirements.

No matter your situation, a planner can help you plan for the retirement you want.

2. You have multiple or complicated pensions

Pension rules are complex at the best of times. So, if you have many disjointed pots or you’re enrolled in a complicated scheme, it’s vital to speak to an expert.

A financial planner is able to assess all your different schemes and show you how to best manage and administer your funds.

They might recommend consolidating your pensions if you have multiple pots, for example, to make everything easier to manage.

Or they may suggest that you keep a certain scheme as it offers a valuable benefit, such as a guaranteed annuity rate.

Financial planners are pension experts. So, if you have any questions about your retirement funds, seeking advice is a sensible course of action.

3. You’re receiving an inheritance

Receiving an inheritance from a loved one is an extraordinarily tough time. Not only are you dealing with the difficult emotions of losing someone close to you, but you’re also handed the enormous administrative burden of managing their estate.

Working with a financial planner at this time can be very helpful. Having an expert to turn to can give you a sounding board for your ideas for the wealth you’ve come into.

Crucially, they can help keep you on an even keel and make decisions based in logic, rather than ruled by emotions.

That way, you’ll be able to make the most of this windfall while still having the space to properly grieve for your loved one.

4. You’re going through a divorce

While it won’t happen for everyone, divorce is an unfortunate outcome for many relationships. And, as much as it’s an emotionally uncertain time, money is also central to the dissolution of a marriage.

You’ll have to decide how to split everything from savings to investments and most likely a property. In particular, you’ll need to address the issue of pensions, which can become inordinately complicated on divorce.

Having the guidance of a financial planner to deal with these aspects can be extremely useful. They can deal with these more complex issues with ease, knowing the difficulties that can come with them.

In many ways, just having an impartial third party in the room to mediate these discussions can help to make sure that everything is divided equally and equitably.

5. You want to plan your estate

As sad as it may be to think about, you are going to pass away at some point. So, realistically, it’s best to face this head on and prepare your money for your death as soon as possible.

Otherwise, you may leave things too late, exposing your family to tax and potentially even difficulty in inheriting your assets at all.

A financial planner can offer a huge range of services when you want to plan your estate. This might include:

  • Trust planning, allowing you to ringfence money and assets for specific beneficiaries
  • Creating a Lasting Power of Attorney (LPA), ensuring someone you trust is able to make decisions for you in the event that you become unable to
  • Inheritance Tax (IHT) planning, reducing a potential tax liability to make sure that your family are the biggest beneficiaries of your wealth.

As part of planning your estate, remember to have these important conversations with your family members, too. A financial planner can facilitate these discussions and help to make sure that everyone has a voice and understands the decisions you’ve made.

Read our other blog all about discussing death with your family to find out why this is so important.

Work with us

Whether you’re going through one of these or any other major life event that affects your finances, we can help guide you through it at Holborn Financial.

Email or call 020 8946 8186 to speak to one of our experienced advisers.

Please note

This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.