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 3.4% 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 70,000 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 four-year 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.

Retirement is a significant life transition. Some of the financial habits that served you well during your working life might no longer suit your retirement lifestyle.

Sticking to your current financial habits could mean you miss out on opportunities to enjoy your retirement, or even mean you risk using up your savings too soon. Read on to find out why.

The shift to depleting assets can be difficult for some retirees to manage

As you retire, you’ll often move away from earning an income and building wealth towards depleting your assets.

If you’ve established a good money habit of regularly saving or investing during your working life, it might be difficult to now spend your wealth. It’s something retirees might feel nervous about because they may worry they won’t have enough for later life.

Indeed, according to an Aviva survey (12 May 2025), only half of mid-retirees aged between 65 and 75 who do not pay for financial advice are confident they’re on track to make their pension savings last for life.

Holding on to the habit of limiting your spending could mean the retirement you’ve worked hard to secure doesn’t live up to your expectations, even if you’re financially secure enough to pursue your aspirations.

Alternatively, if you continue with your current money habits and spend as though you have a salary coming in, you might risk withdrawing too much from your pension.

Retirement could also affect what’s appropriate in other areas of your financial plan.

For example, if you continue to invest in the same manner, you might be taking too much risk if you plan to access the money soon. Similarly, if you have debt, how you manage repayment might shift if you don’t have a guaranteed income in retirement.

Balancing different priorities and goals in retirement can be tricky, but a long-term plan could help you adjust your financial habits to suit your short- and long-term needs.

A cashflow model could give you confidence in your retirement finances

A key challenge when managing your retirement finances is that you need to consider how your assets and income needs could change over time. If you retire in your 60s, you might need to create a retirement plan that spans several decades.

A cashflow model could help you visualise your wealth and how it might change.

Your financial planner will start by inputting data about your current finances, and then make certain assumptions to show how your finances could change. These assumptions might include your income needs based on average inflation, your plans, or expected investment returns.

You can then start to test different scenarios to assess how they’d affect your long-term financial security. So, as you prepare to transition into retirement, you might use your cashflow model to help answer questions like:

• What income could I afford to withdraw from my pension each year?
• Could I withdraw lump sums during retirement to tick off items on my bucket list?
• If I increase my income in early retirement, could I risk depleting my pension fund too soon?

With this information, you may feel more comfortable adjusting your money habits, such as using assets to create an income that allows you to get the most out of retirement.

It’s important to note that while a cashflow model can be a useful tool as part of your long-term plan, the outcomes cannot be guaranteed.

In addition, a cashflow model relies on accurate data. So, you should regularly update it to reflect changes to your finances, overall circumstances, or goals.

Talk to us about your retirement plan

If you’d like to talk about your retirement finances and how we could support you as you transition into the next stage of your life, 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.

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 cashflow modelling.

If you’re yearning for an adventure in retirement, this chapter of your life doesn’t have to mean putting your feet up and embracing a slower pace of life. Whether you’re keen to explore new destinations or try your hand at a new activity, there can still be adventures around the corner.

While the stereotype of a retiree might focus on a more sedate lifestyle, you can make your retirement what you want it to be. For the adventurous at heart, that might mean getting out and being more active than ever, or perhaps you want to blend these two lifestyles to create one that’s perfect for you.

Here are six ways you could embrace adventure in retirement.

1. Rethink your bucket list

To get the most out of your adventures, you could benefit from rethinking the traditional bucket list.

A bucket list can provide a useful direction for your plans by listing things you want to experience. The downside is that they can often end up as a list of popular things to do, rather than specifically what’s important to you. So, looking beyond your bucket list could be useful.

Rather than writing down must-visit destinations, try thinking about what experiences you’d like to have. It might lead you off the beaten track and to places you’ve never thought of visiting before.

2. Be a tourist in your local area

You don’t have to hop on a plane to have an adventure. In fact, many people miss out on the attractions and sights that are right on their doorstep.

Is there a museum you walk past frequently but have never been inside? Or a spectacular hike close by that you’ve never done? Acting like a tourist in your local area could give you a sense of adventure every day and there’s plenty to explore across the UK.

3. Set a challenge before you go

Giving yourself a challenge could mean you’re more motivated to plan trips, and that you get more out of them when you’re there.

For example, you might set a challenge to learn a new language before heading to a destination or to read about the local history. Challenges are perfect if you enjoy being active. You might set a goal to hike renowned trails or go horseback riding with nomads.

A challenge could give you more insight into the local culture and a chance to embrace unique experiences.

4. Join an excursion

Planning and embarking on an adventure can be daunting, especially if you want to try something new. The good news is that plenty of companies can plan excursions and trips for you.

In addition to typical tours, some options take you off the beaten path and offer an authentic look at life in a different destination.

5. Explore at a slower pace

One of the benefits of retirement travel is that you often have more time to explore. So, you don’t need to do a whistlestop tour of a location. Instead, you can stay for longer and really immerse yourself in a different culture or uncover hidden gems.

Adventures don’t have to mean you’re on the go all the time, either. Planning days to relax could be just as rewarding and part of the adventure.

6. Explore with other people

Whether you’re travelling with a partner or friends, or you want to meet people while you’re away, other people could push you towards an adventure you hadn’t expected. They might make plans to attend an event you’d never have thought of or give you the confidence to try something new.

If you’ll be travelling solo, a group trip is a great way to meet other like-minded people, or if you prefer flexibility, day trips or social events could be a great place to start.

A hidden marginal tax rate that affects workers earning between £100,000 and £125,140 is often dubbed a “tax trap”, and research suggests it’s shaping career decisions. However, there are ways you might mitigate the additional tax charge without putting the brakes on your career progression.

The Personal Allowance is £12,570 in 2026/27, and you can usually earn this amount before Income Tax is due.

However, the Personal Allowance starts to taper if your earnings exceed £100,000. For every £2 that your income exceeds this threshold, your Personal Allowance is reduced by £1. You lose your Personal Allowance completely once your annual income reaches £125,140. In effect, this means you could pay tax at a rate of 60% on this portion of your income.

As Income Tax allowances and thresholds are currently frozen until April 2031, more people could find they face this hidden higher rate of tax.

In addition, if your income exceeds £100,000, you could lose childcare benefits. So, families with young children may be doubly affected if their income exceeds the threshold.

The tax trap could affect career decisions

According to an article in FT Adviser (22 April 2026), the implications of the 60% tax trap have affected how some workers view career progression opportunities.

A poll of 1,000 workers earning between £90,000 and £125,000 at one company found that as a result of the tax trap:

• 28% had turned down a promotion
• 26% refused a bonus
• 24% declined a pay rise.

While the above could seem like a sensible approach from a tax perspective, it’s a short-term view. Turning down a promotion now could limit your long-term prospects and earning potential.

In some cases, there might be steps you can take to reduce your overall Income Tax bill. This could allow you to pursue new career challenges while avoiding an effective tax rate of 60%.

3 ways you might avoid the 60% tax trap

1. Increase your pension contributions

Topping up your pension could reduce the amount of Income Tax you pay and improve your income in retirement.

Your Income Tax liability is calculated after pension deductions, so it could be a useful way to keep your taxable income under the £100,000 threshold. In addition, pension contributions typically benefit from tax relief at your marginal rate, so your pension will be boosted even further.

In some cases, your employer may increase the sum they contribute to your pension when you do.

Keep in mind that total pension contributions are usually limited by the Annual Allowance. In 2026/27, the Annual Allowance is £60,000, though you may only claim tax relief up to 100% of your annual earnings. Your Annual Allowance may be lower if you earn more than £200,000 or have already taken a flexible income from your pension.

If you haven’t used your Annual Allowance in previous tax years, you may be able to carry unused allowances forward for up to three years. So, if you want to contribute a significant amount to your pension, it may be worth reviewing your previous deposits.

2. Take advantage of salary sacrifice schemes

Check if your workplace offers salary sacrifice schemes where you can give up a portion of your salary in exchange for a non-cash benefit.

It’s important to consider whether the benefit would be useful for you, but you might have the option to use salary sacrifice to access childcare vouchers or private medical insurance. This strategy could reduce your net income so you may be able to avoid the tax trap.

3. Make donations from your salary

Charitable donations you make directly from your salary could reduce your adjusted net income. So, if you already support good causes, you might want to consider whether you’d benefit from changing how you make donations to improve your tax efficiency.

Talk to us about your tax position

As your income rises, your tax position may become more complex. We’re here to help you understand where your finances could be more tax-efficient and how this could fit into your wider financial plan. 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.

When you think about the benefits of long-term financial planning, the opportunity to work with a professional to increase your assets might be the first thing that comes to mind. While that might form part of some financial plans, the hidden benefits may be even more valuable to you.

A financial plan isn’t only focused on wealth creation. Indeed, in some cases, a plan might involve using assets, such as when you retire.

Instead, it’s a strategy that brings together your current financial circumstances, financial needs now, and long-term goals. It provides a roadmap showing how you might use your assets efficiently to work towards the future you want.

As a result, some of the benefits of financial planning may not be immediately obvious. Here are five that could support your overall goals.

1. A financial plan could identify ways to build wealth tax-efficiently

If you aim to increase the value of your assets, both contributions and returns are important. For some, an overlooked area is tax efficiency.

Choosing tax-efficient ways to save or invest your money could help you achieve your goal sooner.

Imagine you want to invest to secure a long-term goal. Outside a tax-efficient wrapper, your investment returns could become liable for Capital Gains Tax if you exceed certain allowances and thresholds. A financial plan could help you identify ways to invest tax-efficiently that suit your needs, such as using a Stocks and Shares ISA or pension.

2. A long-term strategy may provide you with peace of mind

Worrying about money is common. Knowing you’re working with a professional to manage your finances with a long-term outlook could take the weight off your shoulders.

Feeling in control of your finances could offer you peace of mind and allow you to focus on what’s important to you.

3. Reviewing your finances could improve your relationship with money

A financial plan could also improve your relationship with money.

Working on a financial plan could help you assess how you approach financial decisions and what might trigger poor financial habits. For example, are you likely to make a knee-jerk decision if you feel nervous? Or do you make impulsive purchases without considering the long-term implications?

By understanding your current relationship with money, you may be in a position to improve it, which could, in turn, support your long-term financial goals.

4. Speaking to your financial planner could offer a new perspective

Sometimes you can really benefit from simply having someone to talk to.

Your financial planner will understand your current position and your overall goals, so they can act as a sounding board when you’re contemplating different options. Whether you’re thinking about retiring early or gifting a lump sum to your child, a financial planner can provide honest feedback and a fresh perspective.

It’s a process that could highlight potential opportunities or drawbacks that you might have overlooked if you reviewed your plans alone.

5. A long-term plan could help you achieve financial freedom

Financial freedom means being able to make life choices without constantly worrying about money. You might have assets that provide a passive income capable of covering your essential expenses, leaving you free to enjoy your desired lifestyle.

Financial freedom is something many people want to achieve, but it can be difficult to know when you have “enough”. A financial plan could help you calculate your financial needs over the long term, so you can assess how much you need.

Some people find they’re in a better position than they believed following a financial review, so they can bring their plans forward. If you find a gap in your finances, identifying it early might mean you’re in a better position to make changes to keep your goals on track.

Get in touch

Contact us to talk about your financial plan and how we might support you.

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.

There were highs and dips in the investment markets in May 2026. Discover some of the factors that may have affected your portfolio’s performance.

Remember, short-term market movements are a normal part of investing. When you’re reviewing returns, it’s typically a good idea to look at the bigger picture and assess performance over several years.

Ongoing conflict continued to affect markets in May 2026

On 1 May, US President Donald Trump announced he would lift tariffs on Scotch whisky following a state visit from King Charles. The news led to drinks maker Diageo being among the biggest risers on the FTSE 100 – an index of the largest companies listed on the London Stock Exchange – after shares were up 2% in early trading.

Banking giant HSBC suffered a drop of more than 5% when trading opened on 5 May. It was the biggest faller on the FTSE 100 after the bank reported a drop in profits and a $400 million (£298 million) fraud-related loss in the UK.

Hopes of a peace deal between the US and Iran led to investor optimism on 6 May.

Trump announced there was “great progress” towards an agreement, which buoyed markets, particularly in Asia. South Korea’s leading index, the Kospi, was up 8% and broke through the 7,000-point mark for the first time. Samsung Electronics experienced a jump of 15%, which took the company’s market value above $1 trillion (£0.75 trillion).

More broadly, MSCI’s All-Country World Index was up 0.56% to reach a new record.

For many markets, the positive news continued on 7 May. Japan’s Nikkei index was up more than 5.5% and closed on a new high. Indices in Germany, France, and the US also rose. However, the UK lagged, with the FTSE 100 falling by 0.55%.

Anticipation of higher inflation due to rising oil prices led to the FTSE 100 slipping further on 15 May, with mining and utility stocks particularly affected. The index fell to its lowest level since the end of March 2026.

On 22 May, US stocks opened higher with the S&P 500 index up 0.4% and the technology-focused Nasdaq also up 0.4%. US cosmetics giant Estée Lauder’s shares were up 11% after it ended merger talks with Spanish rival Puig.

UK

Overall, economic data released by the UK’s Office for National Statistics (ONS) was positive.

First, the UK economy beat GDP forecasts in March. The economy grew 0.3% month-on-month to deliver 0.6% growth in the first quarter of the year. News from the construction sector was particularly encouraging. After falling in the second half of 2025, the sector increased by 1.5% in March.

Official data also suggests inflationary pressures are easing. In the 12 months to April, inflation was 2.8% compared to 3.3% a month earlier. The dip is largely due to electricity and gas prices falling.

However, the conflict in Iran is expected to have an impact on business operations.

S&P Global’s Purchasing Managers’ Index (PMI) found that manufacturing businesses’ costs are surging because of the conflict in the Middle East. Indeed, the prices of raw materials, energy, and labour rose at one of the fastest paces since the survey began in 1992, outside of the post-pandemic inflation surge in 2022.

In addition, the forecasting group ITEM Club predicts the UK economy will lose 162,000 jobs in 2026 amid the conflict involving Iran.

One company that has benefited from the conflict is the oil and gas company Shell. The company revealed profits more than doubled quarter-on-quarter in the first three months of the year. Reported profits of $6.9 billion (£5.15 billion) for the first quarter of 2026 have attracted some criticism.

Despite many retail businesses struggling, there was positive news from clothing retailer Next. The firm revealed far stronger sales than expected in the three months to April 2026. Sales were up 4.4% compared to the 1.3% predicted.

In contrast, carmaker Jaguar Land Rover reported a sharp dip in profits. Britain’s largest carmaker only made £14 million in profit before tax in the year to March 2026. That’s a slump of more than 99% when compared to the £2.5 billion reported a year earlier. The company was affected by US trade tariffs and a cyber-attack that disrupted factories for months.

Europe

According to the European Central Bank (ECB), both the eurozone and wider European Union posted subdued economic growth of 0.1% in March.

In addition, the ECB data suggests inflation is rising across the economic bloc. In the 12 months to April 2026, inflation was 3% – an increase of 0.4% when compared to a month earlier.

A PMI reading also indicates that the service sector in the eurozone shrank in April for the first time in almost a year. The reading was 47.6, with a number below 50 suggesting contraction. The decline was linked to the effect of the conflict in the Middle East.

US

The US also experienced higher inflation. According to the Bureau of Labor Statistics, in the 12 months to April, inflation was 3.8% after a month-on-month increase of 0.6%. The data could make it difficult for the US central bank to cut interest rates, despite pressure to do so from Trump.

There was positive news for the economy in the job data. Official figures suggest 115,000 jobs were added to the economy in April, beating forecasts of 62,000.

However, outplacement firm Challenger, Gray & Christmas warned that job cuts were up 38% month-on-month in April, with AI driving layoffs.

Asia

China’s National Bureau of Statistics (NBS) reported factory output slowed to 4.1% year-on-year in April. The weakening economic data comes despite a jump in exports, as customers tried to stockpile goods to avoid supply disruptions due to the conflict.

In addition, the NBS reported China’s producer price inflation rose to a 45-month high of 2.8% in April due to higher energy prices. The increase could affect profit margins and may suggest challenges ahead for Chinese producers.

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.