With so much doom and gloom in the headlines every day, it can be easy to overlook the positive new stories, but there are plenty of them. From scientific innovations to projects that protect the natural world, here are some feel-good stories from 2022 that you may have missed.

1. The COVAX vaccination programme surpassed the 1 billion milestone

At the start of 2022, the COVAX vaccination programme reached a milestone – it delivered more than 1 billion Covid-19 vaccines. The United Nations-backed vaccine-sharing programme delivers the much-needed vaccine to poorer nations. The milestone shipment arrived in Kigali, Rwanda, on 15 January 2022. Around 85% of the vaccines delivered went to lower-income countries.

The World Health Organisation update demonstrates excellent global cooperation to help countries struggling to deliver vaccines. The programme continues to deliver essential supplies, such as tests and treatment, too.

2. The Irwin family celebrated saving their 90,000th animal

Steve Irwin’s legacy of conservation and protecting wildlife continues to inspire people all around the world, including his own family.

The Irwin family announced they had saved their 90,000th animal at the Australian Wildlife Hospital. The lucky milestone animal was a platypus named Ollie. Many of the animals the hospital helps are vulnerable species that the centre rescues from devastating wildfires.

Steve’s daughter Bindi said the hospital was “busier than ever” and that they were focusing on saving as many lives as possible in the future.

3. The Great Blue Wall initiative will protect marine areas

10 nations in the western Indian Ocean have come together to protect marine areas.

Dubbed the “Great Blue Wall”, the initiative will create a network of marine conservation areas. It’s a significant step towards the goal of protecting 30% of the oceans by 2030. Currently, less than 10% of the world’s oceans are protected.

The project will focus on the protection of coral reefs, mangroves, and seagrass meadows. They are important for underwater ecosystems and crucial for carbon removal and biodiversity. The International Union for Conservation of Nature (IUCN) added that it will also benefit local livelihoods and empower communities to protect one of their most precious resources.

4. The UK approved the world’s largest floating wind farm

A new project could significantly boost the UK’s efforts to switch to renewable sources and improve energy independence.

The largest floating wind farm in the world could provide enough power for more than 927,000 homes in the UK. Gwynt Glas, which means “blue wind” in Welsh, will be built off the coast of Pembrokeshire. It will be 20 times the size of the current largest floating wind farm, which is off the coast of Scotland.

The new technology used to create floating wind farms means they can be installed at a wider range of locations than traditional wind farms, which are limited by depth. It also means they can be positioned so they’re not visible from the coast.

5. Scientists announced they’ve potentially cured a woman of HIV for the first time

Over the last year, there have been plenty of medical advancements that could improve patient care, health, and treatment outcomes.

One of the good news stories from the medical world in 2022 was that a team of researchers in the US announced they had potentially cured a woman of HIV for the first time. It follows the news that three men had also been potentially cured. Long-term monitoring and testing are required before the team can confirm that treatment is a cure, but it’s a positive step that could save and improve lives.

The treatment used a stem cell transplant method, which the researchers expect to become a viable treatment option for more people each year.

6. Angela Ávarez wins best new artist at the Latin Grammys

Proving that you’re never too old to follow your dreams, Angela Álvarez became the oldest person to be nominated and win best new artist at the Latin Grammys.

The 95-year-old has been writing songs since 1942 and dreamed of becoming an artist as a young woman. She finally released her first album last year after decades of performing for family and friends. In fact, it was her grandson that recognised her talent and helped her produce songs.

If you’ve been putting off reaching your goal because you believe you’ve missed your chance, Angela could be just the inspiration you need.

Over the last few months, you may have heard the term “stealth taxes”. While you may not be affected by changing tax rates or lowered thresholds immediately, your tax bill could rise without you noticing due to freezes in certain allowances or exemptions.

The term stealth tax is used to refer to a levy that you might not think of as a tax hike but nonetheless has the same effect.

The phrase has been seen in the headlines since chancellor Jeremy Hunt laid out a package of tax rises worth £24 billion in the autumn statement last year.

It’s clear how some of the measures will affect your wealth. For example, the Dividend Allowance will fall from £2,000 to just £500 by 2024. So, if you receive dividends, your tax liability may rise. However, Hunt also announced other measures that could affect how much tax you pay that you may have overlooked.

Read on to find out what stealth taxes could affect your wealth.

Chancellor Jeremy Hunt froze key tax thresholds until 2028

During the autumn statement, Hunt announced that some thresholds and allowances would be frozen until 2028:

• Income Tax bands, including the Personal Allowance
• National Insurance thresholds
• Nil-rate band, which is the threshold for paying Inheritance Tax (IHT).

Previously, the Lifetime Allowance, which limits the amount of pension benefits you can tax-efficiently save during your lifetime, was also frozen at £1,073,100 until 2026.

At first glance, keeping allowances at their current level may seem like it’ll have little effect on your tax bill or wealth. Yet, in real terms, it can.

Frozen thresholds mean the value of allowances falls over the long term

Freezes to thresholds can affect your wealth when you consider the effect over years. As the cost of goods rise, the value of allowances falls in real terms, so they’re not as valuable as they once were.

Let’s say you benefit from a pay rise each year that’s in line with inflation. This maintains your spending power as the costs of goods and services rise.

If Income Tax thresholds don’t rise in line with inflation, a larger proportion of your wages will be deducted. You could also find that you’re in a higher tax band, even if your income hasn’t increased in real terms once inflation is considered.

According to the BBC, freezing the Income Tax bands until 2028 will create an additional 3.2 million new tax payers and mean 2.6 million more people will pay a higher rate of tax. So, while your Income Tax bill may not immediately increase, in real terms you could end up paying more.

The issue is currently exacerbated by high levels of inflation. However, even when inflation is stable – the Bank of England has an inflation target of 2% a year – the effect of prices rising adds up.

The freezes can also affect your long-term plans.

Take the IHT nil-rate band, for instance. The current threshold means you can pass on £325,000 before your estate could be liable for IHT. However, over the next five years while the threshold is frozen, the value of your assets could rise.

As a result, more families will need to consider if their estate could be liable for IHT and how it’d affect the wealth they leave behind for their loved ones.

The Office for Budget Responsibility estimates that freezing the nil-rate band will boost the government’s income from IHT by £1 billion by the 2027/28 tax year.

What can you do to limit the effect of stealth taxes?

With key allowances frozen until 2028, it’s vital you understand how they could affect your financial plan and the options that could reduce the effect. To make the most of your money, it’s more important than ever to make use of allowances that are right for you.

A regularly reviewed financial plan can help you manage your finances and reflect changes in thresholds, including freezes. We can work with you to identify:

• The allowances that could be right for you
• How to make the most of your wealth so it grows in real terms
• Steps that could help you mitigate a tax bill in the future.

If you’d like to arrange a meeting with us or have any questions about how the chancellor’s announcements could affect your long-term wealth, please get in touch.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

A blockbuster film might seem like an unlikely source for financial planning lessons. Yet, there are some surprising things you can learn from director James Cameron’s approach to the Avatar sequel, Avatar: The Way of Water.

The first Avatar film hit screens back in 2009. It is the highest-grossing film of all-time thanks to its stunning visuals – worldwide, the film has taken more than $2.8 million (£2.3 million). It was also a success during awards season and scooped three Academy Awards for art direction, cinematography, and visual effects.

Yet, despite the achievements of the film, it’s taken 13 years for the sequel to screen in cinemas. So, what can James Cameron teach you about managing your finances?

1. Know what’s important to you

One of the reasons the original Avatar film captured audiences was the incredible visuals. At the time, they were ground-breaking – more than half the film was created with realistic computer-generated images (CGI). It used motion capture suits and head rigs with cameras to pick up even the tiniest facial movements of the actors.

It meant viewers could be fully immersed in the world of Pandora.

Once again, visuals are playing a crucial role in the sequel, with Cameron developing new technology especially for the film.

Setting out your priorities when creating your goals is just as important. It can help you balance different aspirations and avoid disappointment. 

2. Take your time

While it would be fantastic to meet all your financial goals in a matter of weeks, the truth is that it takes time.

If you’re investing, you’ll need a long-term outlook as the market can be volatile in the short term. If speed is your focus, you could end up making decisions that aren’t right for you. You may be tempted to take more risk than is appropriate in a bid to potentially secure higher returns or try to time the highs and lows of the market.

Other areas of financial planning mean you need to take an approach that considers years rather than weeks or months too. Ensuring you’re secure in retirement often means saving over several decades. Or you may be thinking about how you can support children with an inheritance.

So, take a leaf out of Cameron’s book here and recognise that taking your time to reach your goal can be a good thing.

3. Using the right tools is crucial

Not having the necessary technology available right after the release of Avatar is one of the reasons why the sequel has taken so long to hit screens.

Cameron has developed new technology to film performance capture scenes underwater, a feat never accomplished before. Many of the cast also learnt how to free-dive to make the scenes as realistic as possible.

While it led to numerous delays, Cameron recognised how important having the right tools was.

Luckily, your financial security isn’t going to depend on developing new technology. However, choosing the right tools is still important.

If you’re saving, should you be using an easy access cash account or an ISA? Or should you be thinking about investing instead? It will all depend on your financial circumstances and goals, which is why choosing the right option can help you get the most out of your money while providing the flexibility you need.

4. Create a long-term plan, but be prepared to adapt

In the film industry, plans for further films are often dependent on the success of the previous one. Yet, to achieve his long-term plan, Cameron has actually shot Avatar 2 and 3 back-to-back. Some work has even started on the fourth instalment of the franchise to ensure there is footage of younger cast members at the correct age.

With ideas for seven films in total and a release schedule that goes up to 2028, a careful, long-term plan is very much needed for the Avatar franchise.

When it comes to financial planning, you could be thinking about things that are decades away, from retirement to supporting your children as they reach adulthood. So, a plan that’s tailored to your goals is crucial.

Having a plan is important, but so is recognising when you should adapt.

Both Avatar and Avatar 2 faced numerous delays. Production of The Way of Water was affected by the Covid-19 pandemic and restrictions, which led to further delays in the theatrical release.

Regularly reviewing your plans and how outside factors could affect them can help you reach your goals, even if you have to take an unexpected route.

5. Spend money on the things that are important to you

A film that Cameron himself described as “the worst business case in movie history” in an interview with Screen Rant might not seem like his approach can help you with financial planning, but there are still lessons to be learnt.

The delays and need to develop new technology mean that Avatar: The Way of Water had an enormous budget. Just to break even, it will need to be the third- or fourth-highest-grossing film in history, Cameron explained.

Of course, Cameron wants the film to be a commercial success, but it’s something of a passion project too. He first had the idea for the franchise in 1994 and had a clear vision of what he wanted to achieve. So, the Avatar series is about more than making money – it’s about legacy too.

Spending money to reach your goals can be more difficult than you think. Some retirees struggle to switch from a saving mindset to depleting their assets, even if they have enough. It means you can miss out on opportunities to do the things you’ve been looking forward to.

What’s important is that your spending considers long-term goals and financial security. Cameron has the wealth to create his Avatar vision and, after a financial review, you may find you have enough to pursue your dreams too.

Contact us to talk about your financial goals and plans

Whether you want to know if you can book the incredible round-the-world trip you’ve always wanted to do or want to start creating a long-term plan, we can help. We’ll work with you to bring together your goals and finances. Contact us to arrange a meeting.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment 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.

Retirement is a milestone that’s often greeted with celebration. But what do you need to do to be happy during your later years? Research has revealed that it’s experiences, rather than material items, that are important.

A survey from Royal London found that 72% of those aged over 55 favoured experiences over material possessions. From seeing more of the world to trying a hobby you’ve always wanted to do, retirement offers an opportunity to create the life you want.

It’s not just the big-ticket experiences that those approaching retirement believe are important either. Many are looking forward to spending more time with loved ones.

When asked about their life goals, retirees are focusing on creating lasting memories. The most important goals were:

• Spending time with family and friends (52%)
• Relaxing (47%)
• Maintaining health and fitness (45%)
• Travelling (37%)
• Spending time on hobbies (37%).

The research found that 17% of those nearing retirement are worried about a lack of experiences, and the same proportion said a lack of purpose was a concern. While worries are normal when you approach a big life event, setting out a plan now can help you realise your goals.

Gary Beyer, protection product lead at Royal London, said: “It is clear to see that those aged 55 and over value experiences more than anything else, including material possessions. Being able to lead an active, healthy lifestyle, try new things, and travel to new places, combined with spending more time with family is the key to retirement happiness.”

Many people approaching retirement are focused on experiences that will create lifelong memories. However, the research also found that finances could mean retirement doesn’t live up to expectations.

40% of over-55s say money is the biggest barrier to achieving their goals

Among over-55s that have yet to achieve their life goals, 40% said money was the biggest barrier.

The cost of living crisis is further exacerbating financial challenges for those planning their retirement. 3 in 10 over-55s said they are changing their plans as a result.

If you’re looking forward to a retirement that’s filled with experiences that will make you happy, financial planning is crucial. It can give you confidence about your long-term finances, so you can focus on what’s really important.

Calculating if you’re on track to have enough to reach your retirement goals can be broken down into two key questions:

1. What income do you need in retirement to reach your goals?

Having a target retirement income in mind is essential for understanding if you’re saving enough.

Many retirees find that their income needs fall when they stop working. You may have finished paying off your mortgage or no longer need to budget for commuting.

Research from Which? suggests a couple needs an annual income of £28,000 to live comfortably. While this figure is a useful starting point, keep in mind living expenses can vary significantly. You should review your expected outgoings to create a goal that’s tailored to you.

Remember, your income needs may change throughout retirement and could be affected by outside factors, like inflation.

2. How much are you saving for retirement?

With an annual goal in mind, you can then start looking at if you’re saving enough for retirement. How much do you already have in your pension? What contributions are you making? And are there other assets you plan to use, such as savings?

Bringing together all the information you need to understand if you’re on track can be difficult. As financial planners, we’re here to help. We can help you understand how the value of your assets may change between now and retirement, and how you can use them to create an income. If there is a gap in your savings, we’ll work with you to create a plan to get you back on track.

Contact us to review your retirement plan

Please contact us to talk about what your retirement goals are and the steps you can take to reach them.

Please note: This blog is for general information only and does not constitute advice. 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 results.

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 value of your investment 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.

Have you thought about how you’ll use assets later in life or what you’d like to happen to them when you pass away? Planning for the future with an estate plan now could improve your long-term security and ensure your wishes are followed.  

While it can be difficult to think about long-term challenges and understand what decisions are right for you, an estate plan is important. It’s the process of organising your affairs to effectively manage your estate in a way that reflects your wishes, gives you peace of mind, and could reduce potential taxes.

An estate plan that’s tailored to you could mean you feel more confident about how your estate will be managed in a range of circumstances, including if you were unable to make decisions or pass away.

Over the next few months, you can read on our blog the steps you should take to create an estate plan and the things you need to consider.

If an estate plan is something you’ve been putting off, read on to find out why you should make it a priority.  

5 reasons you should prioritise creating an estate plan

1. An effective estate plan ensures your wishes are carried out when you pass away

One of the main reasons to create an estate plan is that it’s a way to ensure your wishes are carried out when you pass away. You no doubt have people or organisations that you want to benefit from your estate.

Without an estate plan, some of your loved ones may be overlooked or assets may not be distributed in the way you want. For example, you may want someone to inherit particular sentimental items, but this could be missed if your instructions aren’t clear.

Even if you’re married, in a civil partnership, or have children, you shouldn’t assume your estate will be distributed according to your wishes if you don’t take steps like writing your will.

2. You can use an estate plan to protect your beneficiaries

An estate plan ensures your wealth goes to those it’s intended for, and it can protect them over the long term too, whether you want to pass on assets now or through an inheritance.

You may want to consider things like what would happen if a relationship broke down. You may want to gift a property to your child, but if they divorced their partner, would it remain within your family? An estate plan can help you address concerns like this and put steps in place to protect your beneficiaries.

If your beneficiaries are children or vulnerable adults, an effective plan can also protect their best interests.

3. An estate plan can protect you if you lose mental capacity

An estate plan can be used to protect you in your later years. It could, for instance, include naming a Lasting Power of Attorney to act on your behalf if you’re unable to make decisions for yourself.

Thinking about needing extra support in your later years or losing mental capacity can be difficult. However, creating a care plan and ensuring your loved ones know what your preferences are can provide security when you need it most.

By making later-life planning part of your estate plan, you can take steps to ensure you have the necessary finances and legal documents in place to give you peace of mind.

4. An estate plan can help you focus on what’s important

One of the most valuable benefits of having a tailored estate plan is the peace of mind it provides. It means you can focus on what’s important, safe in the knowledge that your affairs are in order.

Knowing that your later years or loved ones will be secure, even if something happens, can help you live your life to the fullest and enjoy the things that are important to you.

5. It could help you reduce your estate’s tax bill

If your estate exceeds certain thresholds, it could be liable for Inheritance Tax (IHT). It could reduce how much you leave behind, but there are often steps you can take to reduce the potential tax bill. However, you need to be proactive.

An estate plan that considers IHT could mean you leave more behind for your loved ones or causes that you support. Depending on your circumstances, this could include gifting assets to loved ones now, making a charitable donation, or even spending more during your lifetime.

If you have any questions about IHT and your options for mitigating tax, please contact us.

Contact us to talk about your estate plan

Next month, read our blog to find out how to better understand the value of your estate and how it could change during your lifetime. It’s a process that could change your plans.

If you have any questions about your estate plan or want to work with us to create one, please get in touch.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

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

The 2022/23 tax year ends on Wednesday 5 April. After this date, many allowances reset, and it could be your last chance to use some of them.

Allowances can help your money go further by reducing your tax liability. Reviewing your finances before the deadline could help you identify some allowances that could be right for you.

This guide explains how seven useful allowances work:

1. Marriage Allowance
2. ISA allowance
3. Dividend Allowance
4. Capital Gains Tax annual exempt amount
5. Pension Annual Allowance
6. Inheritance Tax annual exemption
7. Gifts from your income.

Download your copy of ‘The 2022/23 end of tax year guide: 7 allowances to make use of before 5 April 2023’ to find out more.

If you have any questions about your financial plan and which allowances make sense for you, please get in touch.