In September 2025, Action Fraud warned pension savers must remain vigilant as more than £17.5 million was lost to pension fraud in 2024 – roughly £48,000 every single day. Read on to find out how scammers could try to get their hands on your retirement savings, and the warning signs to watch out for.

While the figures reported by Action Fraud are staggering, the true scope of pension fraud could be even higher. Some victims of fraud feel embarrassed and may not report the crime as a result. In addition, many people don’t frequently check their pension, so they could have fallen victim without realising.

On average, victims of pension fraud lost more than £33,800. Falling for the scam has the potential to derail the retirement you’ve worked hard to secure. Even when fraud is reported quickly, it might be impossible to retrieve your money, so being aware of the common signs of a pension scam is important.

Action Fraud identified two prevalent ways criminals are targeting victims of pension fraud.

1. Investment fraud pressuring tactics

Scammers who engage in investment fraud often use high-pressure tactics to encourage victims to act without fully thinking about what they’re doing, and they’re using this in pension scams too.

If you’re talking to someone about your pension and they pressure you to invest, downplay the risks, or promise unrealistic returns that seem too good to be true, take a step back. Taking time to consider your options can help you spot a scam before it’s too late.

They might also seek to exploit victims who don’t understand how or when they can access their pension. For example, they might claim they can help you access your savings before you turn 55, which isn’t an option for most pensions.

Engaging with your pension and understanding how and when you can access your pension helps you spot false claims.

Pension cold calling is illegal. So, if you’re contacted out of the blue by someone purporting to be a professional, it’s likely a sign of a scam. If something doesn’t seem right, ask the person you’re speaking with for further details or a break. A genuine financial professional will understand why you’re being cautious.

You can use the Financial Conduct Authority’s Financial Services Register to check if the person you’re speaking with is regulated. Some criminals will use the details of a genuine firm or individual to lull you into a false sense of security. So, use the contact details listed on the register to double-check the information you’ve been provided.

2. Impersonation scam

Some scammers will try to access your pension by impersonating you.

To do this, they’ll need to obtain sensitive information, like your passwords or answers to security questions. Remember, your pension fund or other financial provider will not ask for these details, and it’s a clear sign you’re being targeted by a scammer.

Action Fraud advises that you ensure your online pensions are secure by using a different password for each account. The organisation suggests using three random words to create a strong and memorable password, as well as enabling two-step verification for an additional layer of protection.

Regularly checking your pension and understanding the value of your savings could mean you’re alerted to criminal activity sooner if you are targeted.

We’re here to help if you’ve been targeted by a scam

As your financial planner, we’re here to offer guidance about managing your finances, including if you’ve been targeted by a scammer. If you’re unsure about the communication you’ve received about your pension or another aspect of your financial plan, you can contact us.

You can also report potential scams to Action Fraud here: actionfraud.police.uk  

If you believe you’ve been targeted by a scam and have provided them with sensitive information, don’t hesitate to contact your bank or provider. They may be able to prevent the criminal from accessing your account or withdrawing money.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. 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. 

Taking control of your finances can be frightful. Complex rules that are easy to overlook could mean you fall for a “trick” when making financial decisions this Halloween, but a tailored financial plan could help you avoid falling for them

Here are five financial “tricks” that you might overlook when managing your money, and what you can do to turn them into a “treat”.

1. Exceeding the Personal Savings Allowance could mean you pay tax on your savings

When you think of what you pay Income Tax on, it’s probably your salary that comes to mind. Yet, one “trick” you might fall for is the other sources of income that could be liable for tax, including the interest your savings earn.

How much you can receive in interest before Income Tax is due depends on the rate of Income Tax you pay:

• Basic-rate taxpayers: £1,000
• Higher-rate taxpayers: £500
• Additional-rate taxpayers: £0

This means you could face an unexpected tax bill if you’re not monitoring how much interest you receive.

If you’re not already using your full ISA allowance, which is £20,000 in 2025/26, moving some of your savings into an ISA could be a simple way to reduce how much tax you pay. There might be other steps that are suitable for you as part of your wider financial plan.

2. The 60% tax trap that could affect high earners

Becoming a high earner offers greater financial freedom. However, it can also make your tax position more complex and even mean you effectively pay Income Tax at a rate of 60%.

While there isn’t an official tax rate of 60% on earnings, your Personal Allowance starts to reduce when you earn more than £100,000. For every £2 you earn above £100,000, you lose £1 of your Personal Allowance. In 2025/26, this means you lose all of the Personal Allowance if you’re earning £125,140 or more.

As a result, you’re effectively taxed at 60% on income between £100,000 and £125,140. According to a December 2024 article in the Financial Times, the number of people affected by this tax trap increased by 45% between 2021/22 and 2023/24.

The good news is there might be ways to turn this “trick” into a “treat”. For example, increasing your pension contributions could reduce your tax liability while boosting your retirement savings.

3. Higher- and additional-rate taxpayers could be missing out on pension tax relief

One of the reasons saving for retirement in a pension is financially savvy is that your contributions receive tax relief. This means the Income Tax you’d have paid on your contribution is added to your pension.

Assuming your contributions don’t exceed the Annual Allowance, you can receive tax relief at the highest rate of Income Tax you pay. However, while tax relief at the basic rate (20%) might be added to your pension automatically, you won’t receive the full amount you’re entitled to if you’re a higher- or additional-rate taxpayer.

Indeed, according to a March 2025 article in CityAM, 46% of high-income individuals do not claim their full pension tax relief and, collectively, could have missed out on around £1.3 billion of pension contributions between 2016 and 2021.

Turning this “trick” into a “treat” is relatively straightforward. You need to claim the additional amount by completing a Self-Assessment tax form.

4. Accessing your pension could reduce your Annual Allowance

Usually, you can access your money held in your pension from age 55 (rising to 57 in 2027). As a result, some people withdraw a portion of their pension savings before they’re ready to fully retire.

However, if you take a flexible income from your pension, you could reduce how much you can tax-efficiently contribute. In 2025/26, the Annual Allowance is £60,000. This reduces to just £10,000 if you trigger the Money Purchase Annual Allowance (MPAA).

If you’d planned to continue contributing to your pension, the MPAA could mean you need to reduce how much you contribute, which may affect your long-term income.

Making pension withdrawals part of your financial plan could mean you’re well-informed and avoid unexpected complications.

5. Gifted assets could still form part of your estate and affect your Inheritance Tax liability

With a standard rate of 40%, Inheritance Tax (IHT) could significantly reduce what you leave behind for loved ones if the total value of your estate exceeds certain thresholds. So, you might simply think about handing assets to your beneficiaries during your lifetime, but gifts aren’t always immediately outside of your estate for IHT purposes.

Indeed, some gifts to individuals can be included in your estate for up to seven years after they are given, and are known as “potentially exempt transfers”. While the rate of tax applied to these gifts gradually decreases over time, it could still mean your estate faces a larger IHT bill than you or your loved ones might expect.

The good news is there are often ways to reduce your estate’s IHT liability, and ensure your beneficiaries receive a “treat”. An estate plan could help you assess how and when to pass on wealth to your family.

Contact us to talk about avoiding “tricks” in your financial plan

If you’d like to work with us to create a financial plan that helps you avoid “tricks”, please get in touch.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients 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.

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. 

The Financial Conduct Authority does not regulate estate planning.

When markets experience volatility, even the most level-headed investor can let their emotions or other influences affect their decisions. Read on to find out why volatility can trigger financial biases and how these might affect you.

For the average investor, it’s important to take a long-term approach. While returns cannot be guaranteed, investing over a longer time frame gives markets more time to smooth out their natural peaks and troughs.

Headlines about market crashes or sudden rallies can set you on edge even if you’re usually calm.

Volatility affects investors because uncertainty triggers an emotional response. When you’re thinking logically, you might note that markets have historically recovered from downturns. However, it’s easy for worries to creep in. You might ask yourself: “What if the market doesn’t recover this time?”

As investments are typically tied to personal goals, these initial worries can spiral, allowing emotions to drive your decisions.

4 types of bias that could affect your investment decisions during volatility

1. Herd mentality

When there’s uncertainty in the market, it’s natural to look at what other people are doing. It can often seem like everyone else is taking the same approach. This can lead to a bias known as “herd mentality”, where you’re tempted to follow the crowd.

It might feel like there’s safety in numbers, but it’s important to avoid making decisions that aren’t right for you just because others are doing the same.

2. Loss aversion

No one wants to see the value of their investments fall, and psychological research suggests that investors fear losses more than they enjoy gains. So, to avoid or reduce losses, investors might sell because they’re worried markets will fall further.

However, this may lead to investors turning paper losses into actual ones. In contrast, sticking to your long-term plan and being patient could mean you benefit from a market recovery.

3. Recency bias

The theory behind recency bias argues that investors place too much emphasis on recent events. So, you might decide that a dip in the market is actually part of a long-term trend, even if the data suggests otherwise.

Taking a step back to look at the bigger picture could help you keep recency bias in check.

4. Confirmation bias

Confirmation bias refers to the tendency of investors to seek out information that supports their existing views.

If you’re worried about markets falling, confirmation bias can lead you to dismiss positive data in favour of negative information. This bias can intensify your fears and lead you to make decisions based on only a small portion of the available data.

Practical ways to reduce the effect biases have on your investment decisions

Emotions and bias interfering with your logical decision-making is normal, but that doesn’t mean it’s harmless. Successful investors manage short-term market movements so they can stick to their long-term plan and adjust when it suits them.

Here are some strategies you could try next time you’re tempted to respond to market volatility.

1. Review your financial plan

Before you make any changes to your investments or financial plan, take some time to revisit it. Your plan should centre on your goals and circumstances, so revisiting it could remind you why you chose your strategy and why sticking with it could be beneficial.

2. Reduce your exposure to the news

It can be hard to escape headlines and constant updates, but limiting your exposure might be useful. You may reduce how frequently you check the news, log on to social media, or even monitor the performance of your portfolio.

Be mindful of the source of the information as well – is the source likely to present changes to the market negatively or exaggerate the effects?

3. Look at the historical data

Investment returns cannot be guaranteed, but looking at past performance might be a useful exercise if you’re tempted to make knee-jerk decisions. Historically, markets have recovered and grown over the long term, even after sharp drops.

4. Talk to your financial planner

Finally, your financial planner can offer valuable advice as they understand your circumstances and goals. Talking through the options could highlight where bias might be influencing your decisions and offer a different perspective that allows you to remain focused on your long-term goals.

Contact us to talk about your investments

If you’d like to talk about your existing investment portfolio or would like to understand how investing could fit into your overall financial plan, please get in touch.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. 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.

Traditionally, you’d go from full-time employment to retirement on a set date. Now, more workers are embracing retirement flexibility and choosing to phase gradually into the next stage of their lives. Indeed, a survey published in September 2024 by WTW found that 49% of UK workers aged over 50 are already phasing into retirement or want to do so in the future.

Alongside calculating the income your pension could provide and planning a retirement bucket list, you might want to dedicate some time to thinking about how you want to retire.

Over the next few months, we’ll explore key considerations for those interested in phased retirement, including the financial implications.

Read on to find out why more people are phasing into retirement and how you might do it.

Longer life expectancy is one of the reasons more people are phasing into retirement

There are many reasons why someone might choose to phase into retirement, and one factor that’s playing an important role in the trend is longer life expectancy.

According to data published by the Office for National Statistics in February 2025, the average 55-year-old man has a life expectancy of 84. For a 55-year-old woman, it’s 87.

So, if you were to retire in your mid-50s, on average, you’d spend around three decades in retirement. For some people, giving up work completely with decades ahead of them can feel daunting, and a phased approach could better suit their goals.

Among the other benefits of phasing into retirement are:

• Striking the right work-life balance
• Enjoying the social life or purpose that work may provide
• Giving you time to adjust to a retirement lifestyle and budget
• Providing an income to supplement your pension or other assets.

4 ways you could phase into retirement

If phasing into retirement sounds like it could suit you, there’s more than one option to explore. Here are four ways you could phase into retirement.

1. Reduce your working hours

If you’re happy in your current role but want to benefit from increased flexibility, reducing your hours could help you achieve the work-life balance you’re looking for.

Whether you shorten the working day or work a three-day week, you could increase your free time to spend on activities you’re interested in.

2. Move to a less demanding role

As you near retirement, you might want to adjust your priorities and take on a less demanding role to focus on the aspects of the job you enjoy. This option could help reduce stress while remaining connected to a wider team.

When you’re weighing up your options, be sure to set out what’s right for you. Do you want to move into a position that requires less physical labour, or take a step back from managing people?

3. Take on freelance or consulting work

If you want the freedom to set your own schedule, freelance or consulting work could be an option worth exploring. As you’ll be in control, you can create a work-life balance that’s right for you or focus on projects you’re passionate about.

If you’ve thought about starting your own business in the past, a phased retirement could provide an opportunity to test your entrepreneurial skills. You might turn a hobby into an income stream or continue to provide support for businesses you work with in your existing role.

4. Explore volunteering

If you’re in a financial position to stop working but aren’t ready to give up the structure and social interaction it provides, you could benefit from volunteering.

The great news is that there are thousands of volunteering opportunities across the country, helping you to find a role that suits your skills and interests. Whether you choose to lend a hand at a local food bank or mentor young professionals, you could have a meaningful impact on other people and your community.

Contact us to talk about your retirement plans

A phased retirement could offer you a chance to strike a work-life balance that suits you. If you’d like to talk about how you could phase into retirement and its potential effect on your finances, please get in touch.

Next month, read our blog to find out more about the wellbeing and financial benefits of phasing into retirement.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. 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.

There were ups and downs for investors during September 2025, with disappointing economic data dampening the market at times. However, some positive outcomes also emerged. Read on to find out what might have influenced your investment portfolio’s recent performance.

Investors turn to gold as market uncertainty continues in September 2025

The price of gold reached a record high of $3,508.50 (£2,600) an ounce on 2 September. Gold is often viewed as a “safe” asset, so the rising value could signal that investors are feeling nervous about the outlook for the equity market.

As gold prices rose, markets in the UK, Europe, and the US declined.

On 2 September, the FTSE 100 fell 0.43%. Among the biggest losers were retailers Marks & Spencer (-3.6%) and Sainsbury’s (-2.5%), and housebuilders Taylor Wimpey (-3.4%) and Barratt Redrow (-2.5%).

Similarly, key indices fell in Europe and the US, including Germany’s DAX (-1%), Spain’s IBEX (-0.9%), Italy’s FTSE MIB (-0.9%), and the US’s S&P 500 (-1.2%).

Shares in airlines tumbled on 4 September after Jet2 told investors it expected earnings this year to be on the lower end of forecasts. The announcement sent the company’s shares down 14% and had a knock-on effect on other airlines, including easyJet (-4.2%) and IAG (-2.3%).

Rising tensions between Russia and Europe led to defence company BAE Systems’ share price rising 2.9% on 11 September. The jump made the company the biggest riser on the FTSE 100, which gained 0.37%.

On 11 September, hopes that the US Federal Reserve would cut interest rates lifted the major Wall Street indices, including the Dow Jones (0.5%) and S&P 500 (0.25%).

Then, on 24 September, after President Donald Trump said that Nato aircraft should shoot down Russian aircraft entering its airspace, European defence stocks jumped. The two biggest risers on the FTSE 100 were Babcock International (1.9%) and BAE Systems (1.5%). Other companies whose share prices increased included France’s Thales (1.7%), Germany’s Rheinmetall (1.4%), and Italy’s Leonardo (2.8%).

After signs that the US trade war had eased in August, Trump unveiled new tariffs on 26 September.

From 1 October, medicines and pharmaceutical goods will face a 100% tariff when entering the US. Unsurprisingly, this caused shares in firms within this sector to fall, including AstraZeneca (-1.4%). The US will also impose tariffs of between 25% and 50% on other goods, including heavy-duty trucks and kitchen cabinets.

UK

Official data for July showed GDP was unchanged from the previous month.

The inflation rate for the 12 months to August was 3.8%, prompting the Bank of England to keep interest rates static.

UK borrowing costs reached a 27-year high in September due to higher interest rates on national debt. The additional cost ate into the headroom available in the November Budget, placing pressure on the chancellor, who reportedly needs to plug a £50 billion gap in the public finances.

The effect of Trump’s trade war was also visible in the figures released in September. According to the Office for National Statistics, the trade deficit widened by £400 million to £10.3 billion in the three months to July 2025.

Data from S&P Global’s Purchasing Managers’ Index (PMI), an economic indicator, painted a weak picture for the manufacturing sector. The PMI reading was 47 in August (readings above 50 indicate growth). This was the 11th consecutive month the PMI remained below 50.

However, the PMI data wasn’t all negative. The service sector hit a 16-month high in August 2025 with a reading of 54.2. Encouragingly, sales to the EU and US rose, which could suggest long-term growth.

Technology investors welcomed the news that US tech giant Nvidia pledged to invest £2 billion in UK firms, which could boost the sector.

Europe

Inflation across the eurozone was 2.1% in the 12 months to August 2025, only slightly above the European Central Bank’s (ECB) target of 2%. Cyprus recorded the lowest inflation rate at 0%, while Romania had the highest rate at 8.5%.

The ECB raised its eurozone growth forecast for this year to 1.25%, up from 0.9% in June. However, it tempered this rise with a slightly lower forecast of 1% for 2026.

The bloc also received other positive news. HCOB’s eurozone manufacturing PMI was 50.7 in August, a 14-month high. Meanwhile, unemployment dipped to a record low of 6.2% in July, according to data from Eurostat.

The European Commission’s economic sentiment tracker improved in September, suggesting greater confidence in the outlook after the EU struck a trade deal with the US.

This month also saw an interesting initial public offering for investors. Swedish fintech company Klarna is set to debut on the New York Stock Exchange with a value of more than $14 billion (£10.9 billion).

US

US inflation continued to be above the Federal Reserve’s 2% target at 2.9% in the 12 months to August 2025. This was partly due to businesses passing on the cost of tariffs to consumers.

The data led to the Federal Reserve cutting the interest rate by 25 basis points, and economists expect further cuts before year-end.

Job data from the Bureau of Labor Statistics may suggest that businesses aren’t feeling confident enough to hire new employees. The US economy added only 22,000 new jobs, well below the expected 75,000.

Alphabet, Google’s parent company, reached a new high on 15 September after shares increased by almost 4%, pushing its value to $3 trillion (£2.2 trillion) for the first time.

News was less positive for Tesla. The company’s share of the US electric vehicle market fell to 38%, down from more than 80% at its peak, amid rising competition.

Asia

The effects of Trump’s trade war were evident in official figures from China.

Chinese export growth slowed to a six-month low in August. Exports increased by 4.4% year-on-year, down from 7.2% in the previous month. Shipments to the US fell 33%, and a 22.2% rise in exports to Southeast Asian nations wasn’t enough to offset the decline.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. 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.

This guest blog was written by Chris Budd, who wrote the original Financial Wellbeing Book as well as The Four Cornerstones of Financial Wellbeing. He founded the Institute for Financial Wellbeing and has written more than 100 episodes of the Financial Wellbeing Podcast.

For most people, retiring is a goal. Pick an age, create a financial plan to make sure that age is achievable, and then start dreaming of the day that you don’t have to work.

The trouble with this approach is that it focuses on achieving the goal of not working. As a consequence, many people move into retirement without having given sufficient thought to what they will actually do with all this free time.

Retirement planning isn’t about having enough money so that you don’t have to work. Retirement planning is about designing a life that will bring you wellbeing.

What Kevin Keegan tells us about retirement planning

Kevin Keegan was the greatest footballer of his generation. He retired rich and successful. He went to live in Spain to play golf, the dream of many people in retirement.

After a few years, a realisation dawned on Kevin. He was bored.

He had gone from training all week and scoring goals in front of thousands of adoring fans to hitting a ball around the golf course. He had lost his purpose.

He moved back to the UK and became the football manager for Newcastle United.

Kevin hadn’t planned his retirement. He just did what everybody else did and assumed it would make him happy.

The 3 things you lose when you retire

A person who is old enough to have retirement in their sights is likely to have three things from work:

1. They are probably pretty good at what they do by now. They have competence.
2. They probably have a good understanding of why they do what they do and how it impacts others. They have purpose.
3. And they probably work with a team of people with whom they get on and who respect them. They have a community.

When you leave the world of work, all of these are going to disappear. A happy retirement, therefore, is one which has been planned well in advance for how to replace each of these three things.

Beware the travel trap

If I were to ask every person reading this article, “What do you plan to do in retirement?”, virtually every answer would include the word “travel”.

The world is a huge place, and there is so much variety of culture which most people would like to experience.

Including a budget for travel in your financial plan is a great idea. However, many people don’t go any further in their planning. This can be a mistake. There are two potential drawbacks to having travel as the main, or only, part of your retirement plan.

Firstly, you come back. Once you have ticked one destination off the list, it’s time to come home until it is time for the next trip. This means the majority of your time is spent not travelling.

Secondly, whilst travelling is a very enjoyable experience, it does not give any of those three things that you have just lost from work: competence, purpose and community.

Kindness

If there was one word which sums up the secret to happiness, it is: kindness.

When they reach retirement, many people spend at least some of their time helping others, like working in a charity, being a trustee, mentoring, or helping to run community organisations.

In the words of the late great Archbishop Desmond Tutu: “Joy is your reward for the giving of joy.”

A wellbeing retirement

The trick, then, to a retirement of joy and wellbeing is to look past the finish line.

When you reach the financial position which means you are working because you want to, not because you have to, how will you spend your time?

A week spent with a blend of: doing things you’ve always wanted to do; helping others; doing so in a way that uses your skills; and which gets you involved in a community; is likely to add up to a happy retirement.

It is a good idea to discuss these issues with your financial adviser. They should dare you to dream, to go beyond a list of things to do or places to go, and a create a retirement of purpose and wellbeing.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.