Are your family ready for the largest intergenerational transfer in history?
The world is on the brink of an unprecedented transfer of wealth. A notable World Wealth Report¹, which gauges the opinions of over 6,000 global high-net-worth individuals (HNWIs), highlights a ‘staggering $83.5tn in wealth’ will pass to younger generations by 2048. Other research suggests the figure could be even higher. In the UK alone, around £7tn is forecast to transfer between generations by 2050.

The report, entitled ‘Sail the great wealth transfer,’ explores the transformation of the wealth management topography as Gen X, Millennials and Gen Z are set to take control of this growing pool of assets. Strong equity market performance has driven sustained growth in HNWI wealth, further increasing the value of assets likely to be passed on.

The scale of this transfer brings challenges. Research shows that up to 70% of wealthy families lose their wealth by the next generation and as many as 90% by the third. Without careful planning, wealth can quickly erode through poor decision-making, tax inefficiency and lack of financial education.

This is where proactive advice and structured planning play a vital role in preserving wealth.

Transferring wealth is about far more than handing over a lump sum. It’s about securing your family’s long-term financial wellbeing, aligning wealth with your values, and preparing future generations to manage it responsibly. Open communication is essential, even if conversations about money feel uncomfortable at first. Being transparent about your intentions, goals and expectations can help prevent misunderstandings and conflict later on.

Breaking the process into manageable steps can make it far less daunting. We can support you at every stage, including:

Identifying your beneficiaries and clarifying who you want to benefit
Selecting the most appropriate wealth transfer structures, such as trusts and lifetime gifting
Developing a tax-efficient strategy to minimise Inheritance Tax (IHT) and other liabilities
Facilitating family discussions to ensure everyone understands the plan
Helping educate future beneficiaries so they are prepared to manage their inheritance
Reviewing and updating your plan regularly to reflect changing circumstances.

Proposed changes to the IHT treatment of pensions from April 2027 may accelerate the pace of wealth transfer. This makes now an ideal time to review your plans and consider whether lifetime gifting or other strategies could help reduce future liabilities. With the right guidance, the great wealth transfer can be more opportunity than risk, for your family.

¹Capgemini 2025

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority does not regulate Will writing, tax and trust advice and certain forms of estate planning.

Passing on wealth – the essentials of IHT

IHT is a tax charge based on the value of someone’s estate when they die, though currently any transfer to a surviving spouse or civil partner is exempt
An estate includes property, savings, investments, personal possessions and other assets held in the deceased’s name
Currently, estates worth more than £325,000 may be taxed on the amount above this level
The standard IHT rate is 40%, although this can reduce to 36% if at least 10% of the estate is left to charity
There is an extra allowance (£175,000) when leaving a main residence to direct descendants (children, stepchildren or grandchildren), which can increase the tax-free amount
The tax is usually paid by the executor(s) of the estate before assets are distributed to beneficiaries
Making lifetime gifts, within certain rules and allowances, can help reduce the value of an estate over time
In some cases, placing assets into trusts may help with passing on wealth while keeping a level of control, but this can be complex
Planning ahead may help reduce the amount of tax due, but the rules can be complicated
Seeking professional advice can help ensure you understand your options and make informed decisions for yourself and your family.

Gifting and trust strategies can have tax implications and may not be suitable for everyone.

In the news
Sabbaticals on the rise with Gen X leading
Research² has highlighted a growing shift in UK work-life priorities, with Gen X (those born between 1965 and 1980) driving the change. Twice as many UK workers want to take sabbaticals than have actually taken one, underlining a clear gap between aspiration and reality.

Health and wellbeing are the top motivators for taking some time out, to recharge and reflect. However, affordability (45%) and other barriers, such as lack of employer support (22%), are holding people back.

Four times as many Gen Xers would like to take time out through a sabbatical than have put it into practice, despite being the least likely generation to say they enjoy their job.

Property wealth drives IHT burden
Property wealth accounts for a significant share of IHT-paying estates, particularly in London, where it represents 47% of total estate value, according to a new report³. Comparable figures stand at 42% in the South East and East of England, 36% South West and 33% East Midlands, with most regions reporting property making up around a third or more of taxable estates. In the 2022/23 financial year (the most recent data available), the average property value within London estates exceeded £862,000, contributing to an overall average estate value of more than £1.6m.

²Aegon 2025, ³FOI 2026

Dividend outlook – growth expectations for 2026
Following growth of 1.3% in the fourth quarter and total headline payouts of £87.5bn in 2025, UK dividend expectations for the year ahead are positive, according to the latest dividend monitor⁵. Dividends are forecast to reach £88.8bn in 2026, representing a 1.5% headline increase.

The stronger end to 2025 was driven by better-than-expected payouts across the property, consumer staples and energy sectors, alongside a moderation in exchange-rate impacts, a late surge in special dividends and additional contributions from companies promoted from AIM.

Commenting on the outlook, Mark Cleland, CEO of Issuer Services (UCIA) at Computershare, noted that “dividend payouts have still not regained pre-pandemic highs,” despite pointing out that rates improved throughout last year. Looking ahead, he added that while there are “no clear indications dividends will grow much faster in 2026,” a median growth rate of 3.7% points to a healthier underlying trend.

Global perspective
Globally, aggregate dividends are projected to rise by 2.9% this year to $2.47tn⁶. Ongoing macroeconomic uncertainty, including geopolitical discord and trade issues, continue to weigh on corporate earnings and dividend growth. While this represents a slowdown from the 4.7% growth recorded in 2025, it reflects a broader return to more normalised post-pandemic levels. Regional expectations vary widely, with stronger growth forecast in the US and India, mixed prospects across Europe and more subdued outlooks in parts of Asia.

⁵Computershare 2026, ⁶S&P Global Market Intelligence Dividend Forecasting 2026

Dividend Tax – what’s changing?
From April 2026, changes to Dividend Tax kick in. While most of the Chancellor’s tax announcements from her November Budget will commence towards the end of this Parliament, this was one of the most imminent changes.

Specifically, two bands increase by two percentage points. The ordinary rate rises from 8.75% to 10.75%, and the upper rate from 33.75% to 35.75%. The additional rate remains unchanged at 39.35%, although you may still be affected depending on your dividend income. The rate payable depends on your marginal Income Tax band.

All taxpayers have a Dividend Allowance, allowing individuals to earn up to £500 of dividend income per tax year outside of an Individual Savings Account (ISA) without paying tax on it; this is in addition to the Personal Allowance of £12,570. With dividends received within an ISA being tax free, so too are those received within a Self-Invested Personal Pension (SIPP) or by registered pension schemes. Importantly, dividends above the Dividend Allowance received on investments held outside of these tax-advantaged wrappers are subject to Income Tax.

How could it impact you
Changes to Dividend Tax mean that some business owners and investors could see their tax bills increase. While over 90% of UK taxpayers don’t pay Dividend Tax at all, those who regularly take dividends – particularly company directors – may feel the impact over time, especially as profits grow. Even small increases in tax rates can add up, making it important to review how you extract income from your business. You will not be impacted if you are an additional rate taxpayer.

Do you need to do anything?
The good news is that dividends can still form part of a tax-efficient strategy when combined with salary, pension contributions and ISAs. With the right balance and regular reviews, it’s possible to continue paying yourself efficiently while staying fully compliant with HMRC. If you’re taking dividends now, or planning to in the future, this is an ideal time to sense-check your approach and make sure you’re not paying more tax than you need to.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. Tax legislation and rates can change, and their application depends on individual circumstances.

Investor confidence 2026
How confident do you feel as an investor? There are so many factors that can impact confidence, from level of knowledge and experience to market movements and professional support. Psychologically, your approach to investing is inextricably linked to your emotional state and cognitive biases – are you overconfident, are you risk averse, perhaps you tend to follow the herd or can sometimes be irrational with decision making? Success in financial markets can hinge on so many factors.

A recent ‘Investor Confidence Barometer,’⁴ which has surveyed 1,000 adult investors holding a pension and investable assets of least £100,000, has provided some interesting insight.

Some of the key findings suggest that investors are generally confident about their finances this year and plan to boost their contributions. However, many have an emotional reaction to market movements, which may impact their long-term plans and discipline.

Some investors admit to having made mistakes in the last year, with main issues including taking too little risk (24%) and taking too much risk (18%). Non-advised investors have a tendency to over-allocate to cash, they exhibit lower levels of confidence and are more likely to react emotionally to headlines. Meanwhile, some 22% of non-advised investors have reacted emotionally to markets, compared to just 13% of advised investors.

There is an interesting division between advised and non-advised investors, with almost three quarters (74%) of those taking advice planning to increase their contributions over the year ahead, versus half of non-advised investors. Those who take advice seem to have a ‘deeper investable capacity and long-term strategy’ adding higher amounts (£38,983 versus £25,908 on average for non-advised).

Almost two-thirds of investors (62%) are looking to increase their investments over the next year
Long-term planning is the main driver for those intending to increase contributions (67%), followed by expectations of strong returns (47%)
Adviser guidance influences 43% of those increasing investments and is the single biggest driver (60%) among advised investors
Over three quarters of investors (77%) are confident about achieving portfolio growth – falling to 61% without adviser support, ‘highlighting the critical role of advice in converting confidence into outcomes’
Confidence in retirement funding rises from 68% for non-advised investors to 82% for those receiving advice.

The constancy of advice
The report findings highlight that investors are clearly still seeking ‘the human connection that in-person advice brings to the table’ reinforcing the vital role of advice in changing behaviours to improve people’s long-term outcomes. The findings suggest, ‘As economic uncertainty, technological transformation and regulatory change collide, the role of advisers as a trusted partner to clients holds true.’

We can help you maintain discipline and focus to help you work towards effectively achieving your long-term financial ambitions.

⁴Scottish Widows 2026 (survey conducted prior to the Middle East conflict)

Build momentum from day one – new tax year planning
A new tax year feels a bit like spring cleaning for your finances – a fresh start, new allowances and a chance to put good habits in place early.

Acting now, rather than later in the year, can help you make the most of available tax reliefs and shape a plan that supports your longer-term goals. A few simple steps can make a meaningful difference.

Make the most of this year’s allowances

Use your ISA allowance – you can invest up to £20,000 into ISAs this tax year. The sooner you contribute, the longer your money has the potential to grow tax-free. You can also contribute to a Junior ISA (JISA) for your children (or grandchildren), helping to build tax-efficient savings for their future
Review your capital gains position – using your annual exemption thoughtfully can help reduce tax on investment gains
Strengthen your pension savings spring cleaning for your finances – pension contributions benefit from tax relief and may reduce your taxable income. Starting early can smooth contributions across the year
Consider IHT planning – making use of gifting allowances during your lifetime can gradually reduce the value of your estate and support the next generation.

Start the 2026/27 tax year with confidence
The start of the tax year is the ideal time to step back and review your wider financial plan. Are your investments aligned with your goals? Are you saving in the most efficient way? Small, proactive decisions now can create flexibility and confidence later.

If you’d like to explore how to make the most of the 2026/27 tax year that starts on 6 April, we’re here to help you put a clear plan in place – so you can move forward with clarity and peace of mind.

Tax treatment depends on individual circumstances and may change in future.

Salary sacrifice – things to consider
Salary sacrifice is one of the most effective pension planning tools available, particularly for higher earners. It allows you to exchange part of your salary for increased pension contributions, reducing both Income Tax and National Insurance (NI) in the process. The November Budget confirmed that from 6 April 2029, the NI advantages of salary sacrifice will be restricted, making the current rules more valuable in the years ahead.

Under a salary sacrifice arrangement, your employer pays part of your salary directly into your pension. This means you don’t pay Income Tax or employee NI on that amount, and your employer also saves on NI – a saving that is often shared through additional pension contributions. It can also help reduce your taxable income for thresholds such as the higher-rate tax band, the High Income Child Benefit Charge and the tapering of the personal allowance above £100,000.

What’s changing?
From April 2029, only the first £2,000 per year of pension contributions made via salary sacrifice will remain exempt from NI. Any amount above this will still receive Income Tax relief, but NI will be payable. While this change is still a few years away, it creates a clear planning opportunity. Contributions made between now and 2029 continue to benefit from full NI efficiency, making this a valuable window.

For those who can afford it, this may mean increasing salary sacrifice, using bonus sacrifice, or bringing forward planned contributions. The aim isn’t to rush decisions, but to be aware that the rules will become less generous over time.

The big picture
Salary sacrifice works best as part of a wider, long-term strategy. Reviewing your position now can help ensure your pension contributions remain tax-efficient, affordable and aligned with your broader retirement and lifestyle goals.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. Tax legislation and rates can change, and their application depend on individual circumstances.

Economic green shoots of spring?
After a long, cold winter, there are tentative signs that spring is arriving. With hope in the air – what lies ahead for the global economy? Uncertainty still defines the backdrop, with economic resilience tested yet again by the outbreak of war in the Middle East.

Prior to the conflict, the World Bank’s latest outlook stressed that global cooperation will be essential to restoring stability to international trade and to scale up support for vulnerable countries grappling with conflict, high debt levels and climate change. Alongside this, strong domestic policy action remains critical to contain inflation risks and reinforce fiscal resilience.

Growth prospects revised up
A similar message emerged from the World Economic Forum in Davos, held under the theme “A Spirit of Dialogue.” Speaking there, IMF Managing Director Kristalina Georgieva struck a cautiously upbeat tone, noting that global growth prospects have been revised upwards to 3.3% in 2026 and 3.2% in 2027 (prior to the Middle East conflict). Yet she was clear about the environment ahead, warning that “uncertainty is the new normal” and urging leaders to factor this reality into decision-making. “Learn to think of the unthinkable and then stay calm, adapt,” she said, adding, "I don't think… that we will go back to a world of predictability."

On trade, she urged restraint, cautioning against “tit-for-tat” retaliation and highlighting the benefits of keeping trade flowing in an increasingly multipolar world. Investment in AI has supported economic resilience, but Georgieva stressed that its long-term value depends on how it is deployed.

Governments face complex pressures from ageing populations to safeguarding financial stability. Central banks must strike a careful balance. As the IMF recently noted, the task ahead is to balance optimism with prudence, ensuring today’s technological momentum translates into sustainable, inclusive growth rather than another boom-and-bust cycle.

With research showing many UK investors are planning to increase their investment contributions this year, that willingness to commit more capital, despite ongoing geopolitical tensions and economic headwinds, reflects a quiet confidence in the long-term resilience of financial markets. Investors appear tuned in to opportunity and the potential for growth.

Market conditions can change and investors may experience losses as well as gains.

The power of participation – markets move – participation matters
Investors are constantly navigating changing narratives. Last year markets rebounded to reach new highs following President Trump’s spring trade announcements, despite ongoing geopolitical and economic uncertainty. More recently, the conflict in the Middle East has prompted more market moves.

Periods of volatility can be uncomfortable and emotions can run high, but history consistently shows that markets rise and fall over time. The key is not avoiding these movements but participating through them.

Time in the market beats timing the market
When markets are hitting highs, it’s natural to feel conflicted – you don’t want to miss out, but you also fear investing just before a downturn. These concerns often prevent people from taking the most important step – getting invested. Trying to time the perfect entry point is extremely difficult, even for professionals. Instead, time in the market has proven to be far more important than timing the market.

Investing strategically, not emotionally
Holding cash can feel reassuring and plays an important role in meeting short-term needs or emergencies. For long-term goals, holding too much cash may mean missing opportunities for growth. One way to invest during uncertain or high markets is pound-cost averaging, where regular investments are made over time to smooth out market fluctuations. Market pullbacks can also present opportunities, rather than reasons to sell or step away entirely.

Balance, diversification and advice
Successful investing isn’t about chasing headlines or reacting to fear of missing out. A well-diversified strategy helps manage risk and keeps emotions in check, while targeted exposure to growth areas can help enhance returns. It’s all about asset allocation, picking the right investments. We can help you stay disciplined, avoid impulsive decisions and ensure your investments align with your long-term objectives like retirement or building family wealth. With the right strategy and guidance, market participation can help your money work harder over time.

Participating responsibly
Market movements reinforce the importance of staying invested, even when instincts suggest otherwise. Investing isn’t about ignoring volatility or hoping for the best, it’s built on a well-diversified portfolio that provides stability while allowing flexibility to manage risk and take advantage of opportunities as they arise.

Protection policies – just 42% hold one
Have you got protection in place? A survey of over 14,000 UK consumers⁶, has discovered that just 42% have protection policies arranged, including those purchased privately and held as part of an employee benefit package.

Encouragingly, three-quarters of people who hold a life policy and two thirds with income protection and critical illness cover regard their policies as essential.

The ‘have nots’
People not holding life insurance cited most common reasons as affordability, no requirement, limited knowledge or confidence in arranging cover. Just under half (47%) without cover, have never even considered arranging it. A change in financial circumstances, or sourcing a more affordable policy, has prompted 9% of people to cancel or reduce their level of cover in the past two to three years.

Trigger moments
As expected, major trigger moments in life tend to prompt people to arrange cover, with most policyholders securing plans when buying a home or securing a new mortgage. For those aged over 50, insurance was typically bought after a bereavement or milestone birthday.

Need a helping hand?
The research uncovered a degree of difficulty associated with comparing policies and prices, with people often unsure of their actual requirements, with some compromising their choice of policy due to health and affordability concerns. If you would like to better understand your protection needs, guidance is available.

⁶FCA 2025/6

Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

In other news
Confidence in a comfortable retirement on the up
A positive trend is emerging according to a recent study¹, which shows a third (33%) of workers in the UK feel ‘very’ or ‘extremely’ confident about achieving a comfortable lifestyle when they retire. This follows rates of 22% in 2023 and 30% in 2024, signalling growing optimism about long-term financial prospects. There are some significant disparities, including across income groups, age and gender. Confidence peaks among men and younger workers, with 43% of men and over half (55%) of 25 to 34-year-olds feeling highly confident, versus under a quarter (23%) of women and just 14% of 45 to 54-year-olds.

Over half of cash ISA savers could reinvest
According to research², 60% of UK cash Individual Savings Account (ISA) savers could be persuaded to move funds to a stocks and shares ISA, despite financial constraint being cited as the main barrier. Concern about risk was the second biggest obstacle, with 35% of non-investors worried about potential losses and 12% concerned about access to their money.

Around 40% of Brits currently hold an ISA³, but since the launch over 25 years ago, there is still widespread confusion. A quarter of Brits admitted that they do not understand how stocks and shares work.

¹Aegon 2025, ²Royal London 2025, ³AJ Bell 2026

Small steps to securing your financial future – it is attainable!
It can be easy to disengage when you see the statistics about how much you’ll need for a comfortable retirement, especially when you’re working hard and the demands of life, both financial and family, take precedence. It can make saving enough into your pension feel completely unattainable.

The pandemic shifted priorities for a lot of families – making memories, enjoying life and spending time together now feels more important than ever. In some cases, this is reinforced by expectations of an inheritance from Baby Boomer parents, but this is not something you can rely on. With changing tax rules around pensions and Inheritance Tax, you may inherit less than you expect, or later than you expect, making it even more important to stand on your own two feet financially.

At the same time, the pensions landscape itself is constantly evolving. Government changes to salary sacrifice, rising life expectancy, the likelihood of working for longer and an increasing State Pension age all mean retirement planning is very much a moving target. While retirement may still be some way off, you really can’t afford to switch off from your future needs. Making provision now will make a meaningful difference.

Heard it all before?
Perhaps a closer report and look at the numbers will help put things into perspective. For a comfortable retirement, you would typically need an annual income of around £60,600 as a couple and £43,900 as an individual⁴. When you consider the average UK pension pot currently stands at just £32,700 and that 14.6 million Brits are under-saving for retirement⁵, it becomes clear that there may be a significant gap to fill.

These figures are general guidelines; your personal retirement needs may differ significantly.

Break it down
The key starting point is understanding exactly where you are now. Only by getting a clear picture of your current pension position can you begin to address any shortfall and put a plan in place to close it.

The good news is that this doesn’t have to be overwhelming. Breaking it down into simple, achievable steps can make everything feel far more manageable. Start by gathering all your pension information in one place – current workplace schemes, old employer pensions and any personal plans. We can review whether you’re contributing enough, check how your money is invested, what it’s invested in and think about what you actually want your retirement to look like.

This is where expert support can really help. We can join the dots between your contributions, investments, tax position and long-term goals, and build a plan that fits around your life and affordability. You don’t need to do everything at once. Start with a review, make one small change and build from there.

One shot
This is about you – your life, your priorities and your future. There is no one-size-fits-all approach to pensions or retirement, because everyone’s circumstances are different. You only get one opportunity to build the retirement you want, and after working hard for decades, you deserve to enjoy that time to the fullest.

⁴PLSA 2025, ⁵DWP 2025

Building wealth today, planning for tomorrow
Inheritance Tax (IHT) is often viewed as something to think about later on in life. It can feel distant, complicated and easy to put off while you focus on building your career, supporting family and growing your finances. With rising property values, frozen thresholds and more wealth being passed between generations, IHT is becoming relevant to more families than ever before.

Understanding IHT now isn’t about predicting the future, it’s about being aware of what you might inherit, how it could be affected by tax and how your own financial decisions today could shape the legacy you leave behind. Even a family home or pension savings could one day push an estate over the threshold.

Why early awareness matters
Planning at this stage is less about making big changes and more about building awareness. Knowing the basics helps you ask the right questions, both about your own long-term plans and those of the people closest to you. Have Wills been kept up to date? Are beneficiaries named correctly? Would your family know what to do if something unexpected happened?

With further rule changes ahead, including pensions becoming more closely tied to IHT from April 2027, understanding how different assets fit together is becoming increasingly important.

Family conversations
Just as important as financial planning are the conversations that go alongside it. Open discussions about intentions and expectations can make a real difference for everyone involved. They can:

Reduce uncertainty
Avoid future conflict
Give family members confidence in your plans.

These discussions don’t need to be detailed or formal. Simply starting the conversation can help families feel more prepared and aligned.

The value of professional advice
IHT rules are complex and change over time, and not every option will be right for every family. We can help you understand what applies to your situation, bring generations into the conversation if required and create a plan that provides clarity, confidence and reassurance for the future.

It is important to take professional advice before making any decision relating to your personal finances. Information within this newsletter is based on our current understanding of taxation and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.

Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.

The information contained within this newsletter is for information only purposes and does not constitute financial advice. The purpose of this newsletter is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.

The Financial Conduct Authority does not regulate advice on deposit accounts and some forms of tax advice.

All details are correct at time of writing – March 2026.

Your Finance Matters – Spring 2026