In September 2026, markets experienced some volatility due to conflict in the Middle East and the impact it had on energy prices. Discover other factors that may have affected the performance of your portfolio.

Markets got off to a weak start on 1 September. A global government bond sell-off, caused by concerns about inflation and government debt, led to markets falling. Among the indices affected by the dip were London’s FTSE 100 and Germany’s DAX, both of which were down by 1.1%.

Asian markets were also impacted by the sell-off when they opened. On 2 September, it was reported that Japan’s Nikkei 225 index was down 2.7%, while South Korea’s KOSPI (-3.3%) and China’s CSI 300 (-1.4%) also fell.

Concerns about rising energy prices led to European markets falling on 8 September. Unsurprisingly, energy companies bucked this trend, with FTSE 100 firms BP (0.8%) and Shell (0.35%) opening higher.

This continued on 9 September, when it was reported that UK and European gas prices had surged to multi-year highs as oil reached $100 per barrel. British gas prices were reportedly at their highest level since late December 2022. While the FTSE 100 was down 0.6%, energy firms once again were among the only businesses to see share prices rise.

For several months, worries about AI companies being overvalued have affected markets, and this concern reared its head again on 14 September.

AI-linked stocks slowed down, which affected share prices across the globe. For example, in Tokyo, SoftBank, a major AI investor, saw its share price fall by 13%, and chipmaker SK Hynix, which is listed in South Korea, fell 5.75%.

European markets weren’t spared. The STOXX Europe 600 index fell 2.3% between 31 July and 14 September following calls for the AI industry to slow down for safety reasons.

Trade tensions between the US and China have contributed to volatility throughout 2026. However, on 21 September, trade talks between the two nations, coupled with oil prices declining, led to investor optimism that provided a welcome boost to Asian markets.

UK

UK GDP beat forecasts with 0.4% growth in July, putting the economy on track for a stronger-than-expected third quarter of 2026. The boost was supported by AI activity, high temperatures throughout the summer, and the FIFA World Cup. The figure represents the fastest pace of growth since February 2025.

However, inflation remained high. In the 12 months to August 2026, inflation was 3.1%. Despite inflation being above the Bank of England’s (BoE) 2% target for months, the central bank opted to hold interest rates where they were.

However, market experts from IG expect the BoE to increase interest rates four times by July 2027, including a rise this year.

Purchasing Managers’ Indices (PMI), which provide an economic indicator of business activity, were above the 50 mark that indicates growth for the manufacturing and service sectors. Nevertheless, both sectors face challenges as inflation will affect input costs.

Indeed, 31% of service sector businesses said costs were rising, compared to just 1% that noted a fall.

Europe

Eurozone inflation hit a three-year high of 3.2% in the 12 months to August. The increase was linked to rising energy costs and put it well above the European Central Bank’s (ECB) target of 2%. In response to the inflation data, the ECB increased interest rates for the second time this year in a bid to bring inflation under control.

There was good news from other economic data.

The eurozone private sector growth hit a three-and-a-half-year high, helped by AI activity and defence spending. The PMI reading was 53.

Manufacturing PMI was also positive at 52.7. The reading was the highest in more than four years, with the bloc’s largest economies, Germany and France, both enjoying strong growth. Export sales were also up for only the second time in four and a half years, with particularly strong performances in Austria, Germany, and the Netherlands.

US

US inflation fell slightly to 2.4% in the 12 months to August 2026, though it remains above the 2% target.

Despite pressure from President Donald Trump to slash interest rates, the Federal Reserve raised interest rates for the first time in three years. The hike will see interest rates of 3.75% – 4% after a quarter of a percentage point increase.

Asia

Japan’s central bank was among those hiking interest rates in September. The quarter-percentage-point increase to 1.25% means the country’s interest rates are at the highest level since 1995.

China’s economic indicators suggest that the country’s growth is slowing down. For example, consumption and investment are both underperforming, though notably exports and industrial production are stronger than expected. Policymakers are facing renewed pressure to increase stimulus spending as a result.

The long-awaited initial public offering from fast fashion giant Shein may be a disappointment to investors. The company’s shares listed in Hong Kong tumbled at the start of the month. The company has been affected by regulatory changes in the US and the EU, which could remove reduced import duties on small packages.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

With property prices rising across the UK, the home represents the single largest asset in the estate for many families. Indeed, research reported by Zoopla (17 July 2025) shows that the average UK home increased in value by 20% between 2020 and 2025.

That being the case, it’s easy to understand why many homeowners consider gifting their property – or a share of it – to children or grandchildren during their lifetime.

You may be considering it yourself, whether to provide immediate financial support to your loved ones or ensure the home remains within the family. However, for some, the primary reason is to reduce a potential Inheritance Tax (IHT) bill.

While the intention behind the gift is understandable, executing it without careful planning could be a mistake. Here’s why, along with alternative options you might want to consider.

Transferring ownership of your residence exposes you to potential legal and financial risks

Once you gift your property, you no longer legally own it. Even if you have a verbal agreement with your family that you can stay in the home, life events could unexpectedly jeopardise your living situation.

If the person you gifted the property to faces divorce, personal bankruptcy, or dies before you, the house could quickly become an asset involved in legal proceedings. Here, the court or a creditor may force a house sale, leaving you facing unexpected eviction or forced relocation.

Complex tax rules often mean gifting your home is rarely as simple as you think

Gifting a property rarely results in the straightforward tax savings many expect. Here is what you need to consider before making a transfer:

• Gift with reservation of benefit: If you gift your home to your children but continue living there rent-free, HMRC treats this as a “gift with reservation of benefit”. The property will remain part of your taxable estate for IHT purposes upon your death, potentially rendering your original goal moot. To avoid this, you would need to pay full market rent to your children, which could then create an Income Tax liability for them as they effectively become landlords.
• Capital Gains Tax (CGT): While your primary residence is exempt from CGT under Private Residence Relief, gifting a second property or giving a home to someone who does not live there as their main residence may trigger a CGT bill on any growth in value since you bought it, even though no cash changed hands.
• Loss of the residence nil-rate band: Gifting your home during your lifetime can inadvertently complicate or reduce your eligibility for the residence nil-rate band allowance, which is up to £175,000 in 2026/27. This may allow individuals to pass a main residence to direct descendants tax-free upon death. Spouses or civil partners may pass on their unused residence nil-rate band to the surviving partner, potentially doubling their allowance. You should note that the residence nil-rate band will taper by £1 for every £2 that your net estate exceeds £2 million. If you gift your home away entirely during your lifetime and do not own a residence at death, you could forfeit this valuable allowance.

Because these rules interact in complicated ways, they can quickly trigger immediate and future tax liabilities for both you and your beneficiaries, so it’s important to approach the task with caution.

Local authorities may treat the transfer as a deliberate deprivation of assets

If you gift your home to avoid having its value included in a financial means assessment for residential care, then local authorities can investigate under the Deprivation of Assets rule.

If a council determines that your primary motive for transferring the property was to circumvent paying care fees, they still have the power to include your home’s value when calculating your care contribution. They may even seek to recover costs directly from the recipient of the gift.

Navigating these legal and tax hurdles ultimately requires caution, as an unintentional error could leave your family facing higher tax bills than if you had simply retained ownership.

There are safer alternative strategies to support your loved ones

If your goal is to help your family financially or reduce the impact of IHT on your estate, there are several safer ways to go about this task without putting your home at risk.

• Use your lifetime gifting allowances: You can gift up to £3,000 tax-free each year under your annual exemption, alongside small gifts of up to £250 per person so long as they have not benefited from other gifting allowances, without triggering an IHT bill.
• Make a potentially exempt transfer: You can gift cash, investments, or other assets outright. Provided you survive for seven years after making the gift, the value will fall outside of your taxable estate. If you do not survive for seven years, then IHT may still be reduced according to taper relief.
• Gift out of your surplus income: If you have regular surplus income that you do not need to maintain your standard of living, then you can make regular tax-free gifts that are immediately exempt from IHT, provided they are well documented.
• Use life insurance held in trust: If you are concerned about a potential IHT bill, consider putting a life insurance policy in trust to provide a dedicated, tax-free cash payout upon your death that is specifically designed to cover any IHT liability.

Exploring these structured alternatives with a financial planner means you can support your family during your lifetime while still maintaining control over your home and financial security.

This is something we can help with, so get in touch and let’s explore your options.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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 trusts.

Remember that taper relief only applies to gifts in excess of the nil-rate band. It follows that, if no tax is payable on the transfer because it does not exceed the nil-rate band (after cumulation), there can be no relief.

Taper relief does not reduce the value transferred; it reduces the tax payable as a consequence of that transfer.

Becoming financially free as you enter retirement could make a huge difference to this chapter of your life.

Financial freedom doesn’t necessarily mean becoming wealthy. Instead, it’s about having enough to live the life you want on your terms, without having to worry about money. As retirement represents a chance to reassess what’s important to you, having financial freedom could help you really get the most out of life.

Financial freedom might allow you to do more in retirement. While big adventures are often what come to mind first, a survey suggests that retirees cherish the smaller, everyday moments just as much.

When asked what financial freedom meant to them as part of an Aviva survey (12 June 2026), 72% of respondents said it involved feeling more secure and less worried about money on a day-to-day basis. 65% defined it as being able to say “yes” to simple plans, like days out, meals at restaurants, and small treats. Half of respondents also said financial freedom would mean being able to stay connected and spend more time with family.

55% said they wanted to prioritise a mix of everyday comforts and small pleasures over just big journeys and activities. This approach could help you create a fulfilling retirement. After all, even if you’re jetting to exotic locations several times a year, the majority of your time is likely to be spent at home.

Financial freedom could give you a chance to spend your time how you want in retirement.

A clear financial plan could lead to greater choice in retirement

Even if your retirement is several decades away, it’s never too soon to start thinking about what you’re looking forward to. Indeed, creating a plan earlier in life could mean you have more opportunities to improve your financial security later in life.

Conversely, it’s not too late to put a retirement plan in place if the milestone is just around the corner or even if you’ve already stopped working. A meeting with your financial planner could help you understand what’s possible and how to use your assets to support your lifestyle goals.

Your financial plan will consider areas like how much income you’d need to live the retirement you want. As it’s tailored to you, your financial plan will reflect how you want to spend your time in retirement, which could provide peace of mind.

Financial freedom doesn’t mean spending without limits. It’s still important to maintain a balance to minimise the risk of spending too much too soon.

Your financial planner could create a cashflow model – a valuable tool for helping you understand how your finances may evolve throughout retirement and support the lifestyle you want.

By bringing together your income, assets, pensions, investments, and planned expenditure, a cashflow model could illustrate how your financial position may change over time.

A cashflow model may also help you explore different scenarios, including different stages of retirement. For example, you might model increasing your day-to-day spending, so you’re able to enjoy more small moments you cherish. Alternatively, if you want to tick off bucket-list items, you might use a cashflow model to see the effect of spending a one-off lump sum.

It’s important to remember that a cashflow model doesn’t predict the future and the results aren’t guaranteed.

Instead, it allows you to model different scenarios, which could help you make informed decisions and understand the potential consequences of different choices.

Regularly reviewing the model as your circumstances change could provide reassurance and help you adapt your plans along the way. It’s a tool that could help you consider how to use the wealth you’ve accumulated during your working life to enjoy retirement on your terms while maintaining long-term financial security.

Tailor your financial plan to the retirement you want to enjoy

A tailored financial plan puts your goals at the centre of financial decisions. To discuss what you want your retirement to look like and the steps you might take to work towards financial freedom ahead of retirement, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate cashflow modelling.

In the busyness of everyday life, when you may be juggling work, family, and other responsibilities, finding the time and energy to sit down and think about your finances can be difficult. Or perhaps you find this task daunting and overwhelming, so you push it to the bottom of your to-do list.

If so, you’re not alone.

A Scottish Friendly (11 August 2026) survey found that 18% of UK adults don’t know what they want to achieve with their finances in the next five years and have no priorities.

Unfortunately, this approach could make it more difficult to build the life you want now and in the future.

Keep reading to find out why prioritising is crucial if you want to achieve your goals and learn how a financial plan could help you make the most of your money.

Failing to prioritise could lead to missed goals

Setting meaningful goals is only one part of effective financial planning. Without clear priorities, you might find yourself:

Lacking direction

This often means that money goes towards whatever feels most important in the moment: an unexpected bill, a tempting holiday deal, or helping family out.

Of course, there’s nothing wrong with spending on such things. However, if your immediate needs consistently take precedence over your long-term goals – such as building a comfortable retirement – achieving the future you want may become much harder and take far longer than you’d hoped.

Making reactive decisions

When you don’t have a plan to guide you, unexpected events could trigger a panic response.

For example, a dip in the stock market feels like a crisis rather than a normal part of investing, so you rush to sell your shares. Or a life event – such as divorce or redundancy – happens and you respond emotionally rather than making a considered, data-driven decision.

These reactive moves could mean you don’t make the most of your savings and investments, jeopardising progress towards your goals.

Procrastinating or avoiding decisions

It’s easy to second-guess yourself when you don’t have a plan to follow.

You might delay important financial decisions because you’re worried about getting it “wrong”. Or you may change course every time you read a news headline, see a social media post, or talk to a friend who’s doing things differently.

This emotional noise makes it hard to stay consistent, and consistency is essential for hitting your long-term goals.

How a financial plan with clear priorities could help you get more out of your money

A financial plan isn’t just a document full of numbers; it’s a roadmap for the life you want.

A plan with clearly defined priorities can change how you think about money and bring several powerful benefits.

It gives you a sense of purpose and control

A plan helps you feel more in control because you know what you’re aiming for and what to do next. Rather than drifting without direction, you have a sense of purpose.

Being clear on your priorities and timeline removes the guesswork and eases the stress of worrying whether you’re doing “enough” or making the “right” choice every time you face a financial decision.

Decision-making becomes easier

Big life decisions, such as downsizing or changing careers, will always be challenging. However, with a plan to follow, these choices become easier and less emotional.

You can test different options against your current finances and goals to see which one is likely to deliver the best outcome. A financial planner can help by using advanced software to model various scenarios and provide a visual overview of how these could affect your long-term finances.

Of course, this approach won’t remove all uncertainty, but it gives you a structured way to weigh options and move forwards with confidence.

Regular reviews provide accountability and motivation

It’s one thing to set goals and priorities, but sticking to them is another matter. When life gets busy or stressful and competing demands on your resources arise, it’s easy to let things slip.

Scheduling regular times to review your financial plan allows you to adjust for changes and recommit to your goals. You might find it helpful to meet with a financial planner who can provide an objective perspective and make suggestions using their skills and experience.

You’ll have a complete overview of your finances

Most people have many different financial matters to manage: pensions, investments, savings, estate planning, tax considerations, and so on.

Your financial plan provides a joined-up view of these, which could reveal potential financial shortfalls or opportunities to make your money work harder. You might easily miss these if you look at each aspect of your finances in isolation.

We can help you get started

If the thought of reviewing your finances and getting your priorities in order feels overwhelming, we can help.

Our financial planners will support you in identifying what matters most before turning these priorities into a practical plan. We’ll map out next steps and review points, so you know exactly what to focus on at each stage, giving you the confidence to take control of your financial future.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate cashflow planning.

Delaying an investment decision might seem harmless. After all, you’re not increasing the amount of risk you’re taking, withdrawing assets, or changing your portfolio. However, significant delays could have a negative long-term impact.

Decision paralysis is the inability to make a choice because you’re faced with too many options, fear making the wrong decision, or experience information overload.

As an investor, you often have numerous ways to invest your wealth, which can feel overwhelming. What’s more, the performance of your investments could affect your long-term plans, such as your ability to retire, and this added pressure could lead to decision paralysis.

For some investors, this can make taking no action seem preferable.

Decision paralysis could lead to lower investment returns

If you haven’t yet invested, decision paralysis might mean you put off getting started. Instead, you may opt to hold the money in a cash account because it seems like the simpler option. Because your money may remain in the account until you’re ready, this can feel like a sensible choice.

However, as the interest rate a savings account pays might be lower than the rate of inflation, the value of your cash could fall in real terms. In fact, an article in Financial Planning Today (1 September 2026) suggests British savers have £303 billion in bank accounts paying zero interest.

Over longer time frames, the effects of inflation become more pronounced.

Imagine you deposited £20,000 into a savings account in 2020 with the intention of investing it, but never got around to doing so. According to the Bank of England’s inflation calculator (16 September 2026), your £20,000 savings would have needed to grow to £26,378 by August 2026 just to maintain their purchasing power.

So, if your savings weren’t benefiting from an average interest rate of 4.29%, the money would be falling in value in real terms, as you’d be able to purchase less with it.

In addition, you may have missed out on potential investment returns.

It’s important to note that investment performance cannot be guaranteed and that historical performance is not a reliable indicator of future performance. However, investments have the potential to deliver returns at a higher rate than inflation, which could mean the value of your assets increases in real terms.

Decision paralysis might also manifest after you’ve invested. For example, you might put off reviewing the performance of your investment portfolio or making adjustments when necessary. Again, putting off these tasks for long periods could mean you miss opportunities to adapt your portfolio when appropriate.

An investment strategy could provide a clear plan and boost your confidence

Working with a financial planner to create an investment strategy could be useful if you’ve experienced decision paralysis.

An investment strategy starts by assessing your investment goal and financial circumstances. This can include setting out your risk profile and investment time frame, which can help you understand how your assets might be invested to achieve your aims. This could provide a clearer direction, so you’re able to filter out investment options that aren’t appropriate for you.

Access to professional insights and the opportunity to review different options could also help you feel more confident about investment decisions.

Alternatively, you could choose to take a more hands-off approach and rely on your financial planner, who could help ensure any recommendations reflect your circumstances and goals.

If the prospect of investing or reviewing your existing investment portfolio alone feels overwhelming, please get in touch. Our team would be happy to talk to you about how we might work together.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

Passing assets to your loved ones during your lifetime could have many benefits. Yet, that doesn’t mean it’s simple, and you might experience emotional challenges even if you’re sure it’s the right thing to do in your circumstances.

According to an FTAdviser article (29 July 2026), 7 in 10 people believe financial support should be given to beneficiaries early when it could make the biggest difference. Just 8% of people believe wealth should mainly pass on after death.

As well as potentially providing support when your loved ones could benefit the most, a living legacy means you could see the impact your gift has.

Another reason gifting during your lifetime is growing in popularity is that it could be useful from an Inheritance Tax (IHT) perspective. Not all gifts are immediately outside your estate when calculating IHT. However, some gifts may fall outside your estate for IHT purposes if you survive for seven years after making them.

As a result, passing on assets earlier in your life could reduce a potential IHT bill.

Despite the benefits, it’s normal to have misgivings about passing on assets. Here are three emotional challenges benefactors might face.

3 emotional challenges and how financial planning could help

1. You’re worried gifting assets could affect your long-term financial security

Even if you’re confident in your finances, you may worry about how your circumstances could change in different scenarios.

You might worry that gifting assets now could compromise your financial security if an unexpected event occurred. Indeed, the FTAdviser article notes that 37% of respondents said the risk of running out of money was the biggest barrier to providing financial support.

Having a cashflow model could ease your concerns. A cashflow model can illustrate how your financial position could change over your lifetime based on different decisions you make.

So, if you’re thinking about gifting assets now, you might review how this would affect your long-term finances. You can model unexpected events too, such as how gifting assets and then experiencing a high unexpected cost or a period of market volatility might affect you.

You should note that the results of a cashflow model depend on the data entered and the assumptions used. As a result, they cannot be guaranteed.

However, being able to visualise the impact of different scenarios on your financial security could provide peace of mind or highlight potential risks before you proceed.

2. You’re concerned about how the beneficiary will use the gift

You’ve worked hard during your life to become financially secure, and giving up control of assets might feel daunting. What if your loved one uses the gift differently from how you intended?

Working with a financial planner could help you explore your options.

One option would be to involve your beneficiaries in relevant parts of your estate-planning discussions. This could allow you to state how you’d like them to use the gift and help them understand its financial implications.

Another option might be to establish a trust. Some trusts allow you to set out conditions about how and when the assets are to be used.

Trusts are a legal arrangement, and you may not be able to remove assets once they’ve been placed in a trust. Seeking both legal and financial advice could help you assess whether using a trust is the right choice for you and your beneficiaries.

3. You suspect gifting assets might lead to difficult discussions about your estate plan

Passing on your assets during your lifetime often leads to wider discussions about your estate plan, such as the contents of your will or your wishes if you need care later in life. Some people may delay deciding because they find these topics difficult to discuss.

These conversations can be challenging, but they’re often important. Working with a financial planner can help you consider practical points and prepare you for talking to your loved ones.

Contact us

As your financial planner, we could help you assess different options for passing on wealth to your loved ones and provide reassurance if you’re concerned about the implications. Please get in touch to talk about your estate plan.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate cashflow modelling, trusts, or estate planning.