On 22 June, Keir Starmer announced he would quit as Labour Party leader. The decision had been anticipated in the media, but the changes still pose some uncertainty over the coming weeks. Read on to find out what it could mean for your finances.

The Labour Party will need to decide on a new leader, which could cause market volatility. Once a new leader is in place, they will have control over fiscal policy that could affect business and personal finances.

While a change in political leadership can feel worrisome when you consider your finances, taking a long-term view is important.

Uncertainty may cause market volatility in the coming weeks

Investment markets may experience volatility in response to uncertainty, which could affect the value of your investments.

Following Starmer’s announcement, markets were relatively stable. According to the Guardian (22 June 2026), markets largely “shrugged off the news” as the resignation was expected. Indeed, a domestically focused index, the FTSE 250, was down just 0.01%.

As the new prime minister is announced and sets out their vision for the UK, markets could experience greater volatility, particularly if there are any surprises.

While this might feel disconcerting, keep in mind that short-term volatility is a part of investing, and markets have historically recovered.

In the last decade, the UK has had seven prime ministers, and while periods of volatility followed some of these leadership changes, the overall market trend has been upwards.

So, rather than reviewing your portfolio’s performance each day, take a look at the bigger picture. Assessing performance over several years could highlight an overall trend rather than short-term responses to periods of change.

While you might be tempted to make changes in response to volatility, sticking to your long-term investment strategy instead of making knee-jerk decisions could be beneficial.

It’s important to note that investment returns cannot be guaranteed, and past performance is not a reliable indicator of future performance.

The prime minister may change policies that affect personal finances

The new prime minister might also choose to go in a different direction from the previous one. For example, they could change tax rates or allowances, which might affect your personal finances.

While the potential for change could prompt some people to alter their financial plans, this often isn’t the best course of action.

First, with so much speculation, it can be difficult to know what information is accurate before it’s officially announced. Reacting to a news headline that isn’t confirmed could mean making unnecessary changes to your financial plan, which has the potential to harm your ability to reach your goals.

Second, when changes are unveiled, they often aren’t implemented immediately. So, you will typically have an opportunity to fully assess your options rather than needing to make a snap decision.

As your financial planner, we could alert you if anything might affect your long-term financial plan. We could help you assess how changes might affect you and offer guidance on how to mitigate the potential effects if appropriate.

Contact us

Over the coming weeks, there’s likely to be a lot of speculation about what will happen. Remember, reacting to rumours could lead you to make decisions based on scenarios that don’t materialise or ones that don’t align with your objectives.

If you have any questions about what Starmer’s resignation means for your finances, 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.

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 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.

In a bid to pass more wealth to their loved ones, a growing number of families are opening pensions for their children. Whether your child is still in nursery or already working their way up the career ladder, there could be benefits to making pension contributions on their behalf.

According to an article in the Telegraph (13 June 2026), pension providers have noticed an uptick in the number of pensions opened for a child, with one provider registering a jump of 158%.

This trend is partly being driven by changes to Inheritance Tax (IHT) rules. From 6 April 2027, many pensions will be included in the value of your estate when calculating if IHT is due when you pass away. As a result, some people are opting to contribute to a child’s pension rather than their own.

Whether this strategy is appropriate for you will depend on your personal circumstances and goals, and it’s important to carefully assess the potential implications first.

2 important things to be aware of before contributing to your child’s pension

You can open a pension for your child from the day they are born. In many cases, you can also contribute to a pension that your adult children have. However, you should note:

1. A pension cannot usually be accessed until the pension holder reaches pension age

Before you contribute money to a pension, be sure that it’s the right option for you and your child. Money held in a pension cannot usually be accessed until the pension holder reaches 55 (rising to 57 in 2028 and potentially rising further in the future).

As a result, you would not be able to withdraw the money if you changed your mind. Similarly, your child would not be able to access the money if they wanted to use it for another purpose, such as buying a home, before reaching pension age.

2. The Annual Allowance might limit how much you can tax-efficiently contribute to a pension

The Annual Allowance is the maximum amount of money that can be paid into a pension each tax year before the pension holder could be subject to charges.

In 2026/27, the Annual Allowance is £60,000 or 100% of the pension holder’s annual earnings (whichever is lower). Non-taxpayers, including children, have an Annual Allowance of £3,600. In addition, the Annual Allowance may be lower for higher earners or those who have accessed their pension.

The Annual Allowance covers all contributions, including those made by the pension holder, employers, and third parties. So, it’s important to track what you’re contributing and speak to your child about other contributions that are made to avoid unwittingly exceeding the Annual Allowance.

4 reasons you might regularly contribute to your child’s pension

1. You could support their future

Contributing to your child’s pension allows you to support their future.

According to the government (19 May 2026), many working-age adults are not saving enough for retirement. It’s estimated that 15 million people are undersaving. Additional regular contributions could make their retirement more financially secure and potentially ease pressure on your child’s finances now.

2. Your additional contribution could grow

Pensions are usually invested with the aim of delivering long-term growth. While investment returns cannot be guaranteed, the initial contribution you make has the potential to grow over the long term.

3. Your contributions will usually benefit from tax relief

Assuming your contributions don’t exceed the Annual Allowance, they will typically benefit from tax relief at your child’s nominal rate of Income Tax. This provides an additional immediate boost to your child’s pension and, as the money will be invested, further potential for long-term growth.

4. Your contributions could be efficient for Inheritance Tax purposes

Gifts you make aren’t always outside of your estate for IHT purposes. Some may be included for up to seven years after they are given. However, some allowances could provide a tax-efficient way to pass on wealth.

One of these allowances is regular payments made to another person. The gifts must be made regularly and come out of your regular income without affecting your standard of living. As a result, making monthly contributions to your child’s pension could allow you to make use of this allowance.

It’s a good idea to keep clear records of your gifts as HMRC may look for a regular pattern of gifting if your estate uses this allowance.

Get in touch

Tax and pension rules can be complex, particularly if you want to support a loved one or consider IHT. We could help you create a financial plan that suits you and your family’s needs. Please contact us to arrange a meeting.

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.

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, tax planning, or Inheritance Tax planning.

Most people will have multiple financial goals they want to achieve. A common challenge is balancing these competing goals and understanding how to use your assets to work towards them. It’s an area that a financial plan could help you with.

Over the last few months, you’ve read about short-, medium-, and long-term goals that might be important to you and different financial strategies that suit each time frame. Now, read on to find out how a financial plan could help you strike a balance that works for you.

Deciding which goal to focus on can be difficult

Without a tailored financial plan, it might be difficult to understand how you should use your assets to move closer to your goals. For example, if you have £500 left over each month after your regular expenses, would you be better off saving it in case of an emergency or contributing more to your pension?

On top of this, you want to balance working towards goals with enjoying your life now.

Unfortunately, there isn’t a one-size-fits-all solution that’s simple to follow.

Instead, your needs, income, and other financial commitments, along with your goals, will affect what strategies could suit you. A tailored financial plan could help you assess not only how to reach a goal, but how prioritising a certain goal might affect others.

4 ways a financial plan could help balance multiple goals

1. A financial plan identifies your goals

Your goals are central to your financial plan. So, working with a financial planner provides you with an opportunity to clearly set out what’s important to you and identify goals.

As part of creating a financial plan, you might set out clear time frames for when you’d like to reach each goal. In addition, it’s a chance to discuss why these goals are important to you and if they’re realistic, which might change some of your objectives.

For instance, you might have set a goal to have £500,000 in your pension before you’ve calculated how much income you need in retirement or how you’ll use other assets. As a result, after speaking with your financial planner, you might find the amount you need to save into a pension is lower, which could help you support other goals.

Similarly, you could find you’ve underestimated how much you need for a certain goal. Being aware of a potential gap sooner might mean you have more opportunities to close it.

2. A financial plan could model different scenarios

A key challenge to balancing goals is understanding how a decision to allocate to one might affect others. Would reducing pension contributions to build a nest egg for your child affect your security in retirement?

Your financial planner may create a cashflow model that could help you assess the long-term impact of your decisions. To create a cashflow model, you input information like your income and the value of your assets, and set certain assumptions, such as the rate of inflation and investment returns. You can then adjust these assumptions.

It’s important to note that while a cashflow model could provide useful insights, the outcomes are not guaranteed.

3. The data from a cashflow model could help you understand trade-offs

At times, you’ll need to decide which goal is more important to you. A cashflow model could give you access to the information you need to understand trade-offs.

You might look at how changing your pension contributions will affect your disposable income now and the income you might receive in retirement. Would you prefer to reduce your expenses now if it meant you’d have more to spend when you retire?

A cashflow model could be used to explore different scenarios to understand how the decisions you make now could affect various goals, so you can make decisions that align with your priorities.

4. A financial planner could adjust your plan as your goals change

A financial plan you put in place now may not still be suitable for you in 10 years. Over time, your goals and priorities might shift. Regularly meeting with your financial planner to review your plan could help ensure it continues to reflect your goals.

Contact us to talk about your goals

If you’d like our support in creating a financial plan that covers your short-, medium, and long-term goals, 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 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.

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.

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 cashflow modelling.

Investing is often as much about emotions as it is about numbers. One emotion that might affect how you invest at times is fear. Learning how fear influences investment decisions and how to master it could support your long-term success.

Fear could strike investors in multiple ways

There’s more than one form that fear can take when you’re investing. You might experience a fear of:

• Losing money, which could lead to you being overly cautious. You might even avoid investing altogether because of the perceived risk of losing some or all of your money.
• Making the wrong decision. As an investor, you often have multiple options, and this form of fear could lead to decision paralysis because you overthink or feel overwhelmed.
• Missing out. There’s a lot of investment noise, including people proclaiming that one investment or another is a must-invest. For some investors, this might generate a fear of missing out (FOMO) that could lead to impulsive decisions.
• Not being in control. Multiple factors that aren’t in your control will affect the performance of your investments, and this can be scary. Investors experiencing this type of fear might miss opportunities due to their worries or react in a way that doesn’t align with their strategy when new information is released.

Many things could trigger fear when making investment decisions, such as market volatility or even being reminded that investing involves risk. Indeed, according to FT Adviser (4 June 2026), more than half of UK adults said that reading a risk warning when investing in stocks and shares puts them off investing.

It’s natural to feel some worries in these scenarios, but mastering your fears could improve long-term outcomes.

Fear could lead to decisions that don’t align with your long-term strategy

Fear isn’t necessarily a bad thing when you’re investing. It might prevent you from rushing into an investment that isn’t suitable for you, but it could also harm your decisions.

For example, investing might play an important role in your long-term financial plan. It might help you grow your pension savings with the aim of delivering a more comfortable retirement. However, if you fear losing money, you might choose to hold your assets in cash instead, which would mean missing out on potential investment returns.

Investment returns cannot be guaranteed, and past performance may not be replicated. However, historically, markets have delivered returns over long-term time frames and recovered from periods of downturn.

It’s also important to note that there are different levels of risk when you’re investing, so you can choose opportunities that align with your risk profile. In addition, a balanced portfolio will spread your investments across a variety of assets, so while you might lose money in one area, gains in another could create balance.

A key part of mastering fear so it doesn’t hamper your long-term goals is understanding the difference between perceived and actual risks.

Acting out of fear when investing could make it more difficult to achieve your financial goals and increase stress. So, here are three things to keep in mind when you’re investing.

3 steps that could reduce investment fear

1. Focus on your long-term objectives

Emotional responses are often temporary, as are the factors that trigger them. Instead, focus on what your long-term objectives are. This can help you put current events into perspective and potentially reduce your concerns.

Some investors may find it useful to implement a decision delay, such as waiting at least a day before making any changes. This could provide time for strong emotions to ease and an opportunity to review what’s driving your initial reaction.

2. Recognise that market volatility is normal

One factor that often affects investor emotions is market volatility. However, if you look at past performance, you’ll see that rises and falls in investment values are normal.

Rather than looking at investment values daily or weekly, take a longer-term view. When you look at performance over several years, you’ll often see that the peaks and troughs smooth out, which doesn’t seem as scary.

3. Understand your investment strategy

Take some time to understand why your investment strategy is appropriate for you. Discussing with your financial planner why your risk profile is suitable for your current financial circumstances and overall goals could help ease fears.

A financial planner could reduce the impact of emotions when making financial decisions

Working with a financial planner could help keep emotions, including fear, in check when you’re making financial decisions.

Your financial planner will understand your goals and strategy, so they could provide an objective review of your decisions and factors that you might be worried about. Knowing you have someone who could provide tailored guidance might also help you tune out some of the noise that could trigger emotional responses and allow you to focus on what matters to you.

Please contact us to arrange a meeting with one of our team.

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.

As a business owner, your personal and business financial values are often closely linked, but they’re not the same. Focusing only on the valuation of your business when assessing whether you’re on track for personal long-term goals could be risky.

In June, tech entrepreneur Elon Musk made headlines by becoming the first trillionaire when his company SpaceX was listed on the NASDAQ stock exchange. Yet, the BBC reports (24 June 2026) that within two weeks, Musk lost his trillionaire status when technology stocks tumbled.

Musk remains the world’s richest person, but the news highlights the potential risk for business owners who rely on their company when assessing wealth. A successful business doesn’t automatically mean you’re building personal wealth, even though the two are connected.

Business and personal value are measured in different ways

The value of your business is often based on factors like profitability, cashflow, recurring revenue, and having a capable management team.

In contrast, your personal value incorporates the assets you hold. Your business is likely to be an important part of this, but it isn’t the whole picture. In addition, you might include assets like properties, savings, pensions, and investments.

Accumulating personal wealth that isn’t tied to your business could give you greater security and flexibility.

The risks of relying too heavily on your business for personal wealth

Relying heavily on your business for your personal wealth and to support long-term goals, such as retirement, could be risky for several reasons, including these three:

1. Business wealth is often illiquid

Wealth held in your business is often illiquid. For example, you might reinvest profits with the aim of increasing your business value further. While this is often a good practice, it could mean your wealth tied up in your business isn’t accessible when you need it.

Imagine you’ve faced some health issues and now plan to retire five years earlier than expected. If you’d planned to use your business to fund retirement, you’ll need to find a buyer, which could take time and might not meet your expectations. As a result, you might be forced to delay retirement even though you’re ready to step back from the business.

In contrast, if you had built up personal wealth that was earmarked for retirement, you might be able to retire or reduce working hours while searching for a buyer of your business.

2. The value of your business could fall

The value of your business can fluctuate, and some of the factors that influence it are outside of your control. If your long-term plans rely on your business’s value, it could harm your ability to achieve them.

As the news about Musk shows, concentrating your wealth in one area has the potential to be risky. Instead, diversifying your wealth could mean you have other assets to fall back on if one loses value.

3. You could miss out on other opportunities to grow your wealth

Focusing on your business as an owner is natural, but it could mean you overlook opportunities to increase your personal wealth.

If your retirement plan consists of selling your business and using the profits to create an income, you might not consider setting up a pension, even if it could be the right option for you. By separating your business and personal values, you may explore other ways to improve your financial position.

We could support business owners

As a business owner, managing your finances might be more complex. We could help you create a tailored financial plan that considers your circumstances. Please contact us to talk about your personal goals and how to support them.

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.

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. 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.

According to the Organisation for Economic Co-operation and Development (OECD), a global recession could occur if the conflict in Iran continued into 2027. The organisation warned that delays in agreeing a peace deal would affect global growth and cause energy shortages.

Indeed, the OECD said in a scenario where the conflict continues into 2027, global GDP could fall to 2.1% in 2026, compared to 2.4% in 2025.

Markets experienced volatility but recovered throughout June 2026

On 3 June, European markets opened in the red. US President Donald Trump threatened tariffs of between 10% and 12.5% on 60 countries, including the UK, the EU, and Australia, over allegations of forced labour. However, having seen similar tactics before, markets reacted more subtly than they have in the past.

The UK index, the FTSE 100, was up 0.13% when markets opened on 4 June, thanks to news of a ceasefire in the Middle East. However, this was short-lived as technology valuations slipped, leading to the index falling 0.46%.

The fall continued into the following day, with South Korea’s main index, the KOSPI, dropping 5%.

Renewed conflict in the Middle East hit markets on 9 June. The KOSPI fell more than 9%, triggering a circuit break, which halted trading for 20 minutes. Similarly, Japan’s Nikkei 225 (-3.8%), the US S&P 500 (-2.64%), and markets across Europe fell as AI and technology valuations dipped.

Markets did bounce back on 10 June, including the KOSPI rising 8.4%, which could suggest the drop was a blip rather than an AI market crash.

Despite hopes of a ceasefire earlier in the month, the US and Iran exchanged fire on 10 June. This led to volatility in Asian markets and European markets remaining flat as they opened.

On 12 June, SpaceX raised $75 billion (£56.8 billion) in the world’s biggest initial public offering (IPO), which valued the company at $1.77 trillion (£1.34 trillion).

News of a potential US-Iran peace deal on 15 June led to a global rally, with many markets opening in the green, including the Nikkei (5%), FTSE 100 (1%), and the S&P 500 (1.5%).

The following day, the Nikkei broke through the 20,000 point mark to reach a record high.

The technology sell-off reemerged on 24 June. Again, the KOSPI experienced a sharp fall of 10%, and trading was temporarily halted. European and US shares also fell, including the US technology-focused index, the Nasdaq, dipping 1% as SpaceX shares tumbled 16.4%.

Once again, the sell-off was short-lived, with several indices, including the Dow Jones and Stoxx 600, hitting record highs on 25 June.

UK

On 22 June, UK Prime Minister Keir Starmer announced his resignation. While markets reacted to the news relatively calmly, uncertainty over the coming weeks could lead to volatility.

According to the Office for National Statistics, inflation stayed at the same rate as the previous month at 2.8% in the 12 months to May 2026. Economists had expected a rise to 3%. This information is likely to have played a role in the Bank of England opting to hold interest rates where they are.

S&P Global’s Purchasing Managers’ Index (PMI) series measures the health of businesses, and the results for May were a mixed bag.

Despite facing substantial pressure as prices rise, UK factories recorded a reading of 53.9 (a reading above 50 indicates growth) and reached a three-month high.

On the other hand, the service sector, which accounts for around 80% of the UK economy, fell into contraction territory with a reading of 49.3.

Europe

Eurozone inflation increased from 3% to 3.2% in the 12 months to May 2026, according to Eurostat. The news prompted the European Central Bank to lift interest rates.

Further data shows eurozone GDP fell by 0.2% in the first quarter of the year, with Ireland’s GDP falling 12.1%. Two consecutive quarters of decline would place the eurozone in a technical recession, so economists will be looking closely at the bloc’s performance in the third quarter.

Economists at the research institute DIW warned that the German economy, the largest in Europe, was at risk of a recession due to a possible energy shock caused by conflict.

Despite this negative news, S&P Global’s PMI shows factory output increased to a four-year high in May, resulting in a reading of 51.6.

US

US inflation was in line with expectations at 4.2% in the 12 months to May 2026, but was higher than the 3.8% recorded in April.

In good news, the US economy added more jobs than expected. Economists had predicted 85,000 jobs would be added in May, but the reality far surpassed that at 172,000. The boost was partly attributed to the 2026 FIFA World Cup taking place in the US, leading to a hiring boom of hospitality workers to prepare for the influx of tourists.

US-based company Alphabet, the parent company of Google, said it plans to raise $80 billion (£60.6 billion) in equity to fund its vast AI infrastructure investments. It would mark the largest equity raising ever. The news led to shares falling by around 4%.

Asia

Chinese exports jumped 19.4% year-on-year in May, with chip exports more than doubling.

Inflation pressure led to Japan’s central bank hiking interest rates from 0.75% to 1%. While the increase might seem insignificant, it’s the highest rate in Japan since 1995.

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.