To say the least, 2023 has been a busy year in the financial planning universe! Throughout the year, a number of themes have re-occurred in discussions with clients. As we pull the curtain slowly down on the year, I thought it would be beneficial to summarise and share the cornerstones of these discussions.
Inflation
To little surprise, the persistence of inflation within the UK economy over the past 12 months has been a significant talking point. At the time of writing, inflation remains at 4.6%, substantially above the Bank of England’s target of 2% [1]. Young ‘accumulators’ looking to build their wealth have been forced to make stark choices around the level of funding into their pensions and ISAs due to the pressure of rising household expenditure and utility bills.
Meanwhile, retirees have had to consider larger regular or lump sum withdrawals from their retirement assets to maintain their standard of living. The consequences are generally a reduction in the longevity of assets. This year, I have spent a significant amount of time helping clients analyse and understand their withdrawal patterns, ensuring these are sustainable and that they remain on track to achieve their goals and enjoy the retirement they desire.