Chapters Financial News

2025 has already been momentous within many investment markets and has certainly grabbed many a headline over the last month or so, with much of the coverage being negative. Market volatility can be unnerving, particularly if you are looking at life events, such as retirement. However, keeping a firm eye on the bigger picture as we all progress through our respective life stages is important. 

Reaching back many decades ago, my first job offer was for an apprentice position in the weights and measures department of a large local aerospace company at the time (now long gone). There is some irony that the recruitment consultant who got me the interview operated from Shaw House, where Chapters Financial is now based. And before anyone asks, I was using metric at the time, and not imperial measures, as now seems a possibility! 

If we think about personal finances now, ‘weights’ might be the financial pressure of the squeezed middle as they cope with rising costs and debt repayments, and ‘measures’ might be the daunting array of inflation and personal tax increases (the next full Budget is due in October 2025), with perhaps base rate reductions on the way.  For those over age 50, as an example, their focus from a ‘measures’ perspective might be the value of a pension fund and its real purchasing power, which in turn may well indicate when work can stop. It is noteworthy that through the recent turmoil, pension annuity rates have remained at their elevated level (with increases seen in the last two years or so). There is now a lot more interest in annuity purchase for whole / part funds and more detail can be found in our Retirement Options Schedule here. 

It is also important to consider the life phase in which a person finds themselves as they approach, enter, and hopefully enjoy retirement. These might be as follows.

60-73: the active years

These might be the truly active years, encompassing the more physical pursuits of hobbies and holidays to suit your busy diary. Perhaps you will be difficult to get hold of whilst you gallivant across the globe or involve yourself in new interests. 

I appreciate that an active 75-year-old might close this blog down at this point, noting their plan to go sky-diving tomorrow, but bear with me. Reflecting back a few years, Captain Sir Tom Moore said, ‘Life is to be lived, and I’ve always believed that age is no barrier to living it.’ He certainly accomplished much and brought joy and light to the UK during the dark days, now five years ago, of the COVID-19 pandemic.

73-81: the fulfilled years 

A phasing-in of fulfilment and perhaps a slightly more relaxed agenda from the last decade or so might begin around this point. With many a pursuit, holiday or objective completed, the time to relax may have arrived, with more leisurely pastimes consuming the days and evenings. What’s wanted will be treasured more, and what’s not required may be discarded as time naturally becomes a somewhat dwindling commodity. We have also seen many pensioners pushed into the income tax system for the first time in recent times, having breached the income tax personal allowance (currently £12,570 gross pa as a standard). 

The needs of the family may become a more important feature of the calendar as you enjoy their company, and perhaps their personal budgeting becomes more stretched.

81+: the chilled years 

Health and wellbeing may now be an important focus, and the body may simply not do what you want it to do, or not at least at the speed that it used to do it, but the mind still prances like a 25-year-old. Much to reflect on and enjoy in comfort, perhaps with some additional personal care required. The family may also be more involved in keeping an eye on you and making sure that personal standards, whatever they may be, are maintained and enhanced where possible. 

As enjoyable a time as the first two phases, but maybe at a slower pace in the chilled years. Health of the mind and body may well dictate the quality of life in these latter years.  Most of us are aware that care costs are not getting any cheaper. 

Summary 

The ‘weights and measures’ of each stage of life may well have a bearing on the need for capital and income as time moves forward. We appreciate that each client is different (as indicated above) and will have an opinion on the age range characteristics we have noted. However, if these help to challenge thinking about what might be needed and when, that can only be a good thing. 

Whatever your personal (and individual) circumstances are, 2025 may well bring many changes both at home and abroad, this certainly being the case thus far. Please do take financial advice throughout all age ranges to ensure that your funds are doing what they need to meet your expectations, or to manage them. 

The team at Chapters Financial can help and we look forward to speaking to you soon. 

Keith Churchouse FPFS 
Director 
CFP Chartered FCSI
Chartered Financial Planner 

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899