The government giveth, the government taketh away…

 16 September 2024
The government giveth, the government taketh away…

This week, the government won a vote challenging its decision to means test the winter fuel payments. With the Autumn Budget looming, the Prime Minister and the Chancellor have already indicated that tough decisions need to be made.

How the winter fuel allowance has changed

The changes are basically a switch from an automatic age-related eligibility to a means-tested approach. Pensioners who do not claim benefits such as pension credit, universal credit or income support will lose between £200 and £300 this autumn.

Given that this is one of the first "hard choices" policies to be implemented, changing fuel allowance eligibility is probably an indication of just how determined Labour are, even in the face of opposition and unpopularity.

However, at the same time under the 'triple lock', arrangement, the full state pension will rise by an estimated £460 a year from April 2025. The government taketh away, the government giveth…

Nothing is fixed in stone

It's a reminder to all of us that virtually no element of later life financing is truly 'fixed'. State pensions are a political football that usually bounces along but sometimes gets kicked. Our private pensions are usually backed by well-balanced funds that perform reliably, but are still subject to the ebb and flow of world economics. Interest rates rise and fall, altering the income from investments and the value of savings.

Of course, none of this is anything new, and it's not all doom and gloom either. The important part of estate planning is to recognise and accept that nothing is fixed - and ensuring your estate planning is robust and reasonably balanced as a result.

Regular reviews

Regular estate planning reviews may not be the most exciting of dates in your diary. However, taking a regular overview can ensure you have sufficient funds in place for your future needs, including long-term care.

With my background as a financial planner, and my current role as a retirement coach and estate planner, I can genuinely help you. My 1-to-1 estate planning reviews give you that key overview without the sales, as I don’t recommend or arrange specific financial products or services. That makes it both realistic and independent, and based on real information, something we all need a little more of these days!

So, if you don't want to "suffer the slings and arrows of outrageous fortune", or at least mitigate their effects on your estate planning, contact me. I offer a free initial estate planning Discovery Consultation, so all it will cost you is 30 mins of your time.

DISCLAIMER: The information and opinions in this article are for informational purposes only. They do not constitute any form of financial or legal advice and should not be relied on or treated as a substitute for specific advice relevant to your individual circumstances. In places we may refer to external websites for further information, but we are not responsible for the content of any external Internet sites.

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At each stage of the process, Paul Hammond - the Directory of Panthera, explained in simple understandable language what was going to happen and if there would be any complications. None happened, I am sure, because of his eye for detail.

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