For decades, most of us follow a well-worn path: earn, save, invest, repeat. We work hard to build a retirement fund that will one day give us the freedom to live on our terms, but when retirement finally arrives, spending that money can feel strangely difficult.

We’ve worked with many people who are financially prepared for retirement but find themselves emotionally unprepared for the shift from saving to spending. This is more common than you might think, and it all comes down to psychology.

A Lifetime of Habit

Throughout your working life, the focus is often on security and growth, which saving is a major part of. It also provides a sense of control, progress, and a buffer against life’s uncertainties. This habit, often reinforced over a 30 to 40-year period, isn’t just a financial strategy; it can become part of your identity. So, when retirement comes, changing your mindset can take some time.

The Fear of Running Out

Running out of money in retirement is also an entirely rational fear, given that this phase of life typically lasts 30 years or more. However, this can sometimes lead to overly cautious behaviour. In some cases, it may mean you spend far less than is affordable, missing out on opportunities to enjoy life while you are often most able.

This is where thoughtful financial planning becomes about more than just numbers – it’s about reassurance and confidence. By stress-testing financial plans, running through different scenarios, and updating models as life moves on, we can assess whether your retirement lifestyle and income are sustainable, even with extra holidays, home upgrades, or helping the next generation financially.

Balancing Prudence and Peace of Mind

Our job as Financial Planners is to help clients live with financial confidence, which includes guiding you through the emotional aspects of retirement. We provide the tools and plans to help you:

• Understand how much you can spend safely
• Set realistic and fulfilling lifestyle goals
• Adjust spending patterns as life evolves
• Reduce anxiety around investment market movements

Ultimately, the goal is not just to avoid running out of money – it’s to avoid running out of life before you’ve had chance to thoroughly enjoy the wealth you’ve created.

If you would like to discuss anything raised in this article with one of the team, please do reach out.

The Ministry of Justice has confirmed that application fees for Lasting Powers of Attorney (LPA) will rise from £82 to £92 per document from 17^th November 2025, subject to parliamentary approval. Repeat applications will also increase from £41 to £46.

This change reflects the government’s aim to align fees more closely with the cost of delivering services via the Office of the Public Guardian (OPG).

Now is an ideal time to consider putting LPAs in place.

A Lasting Power of Attorney (LPA) is one of the most important legal documents you can have in place as part of your financial planning. It gives someone you trust the legal authority to act on your behalf if you become unable to make decisions due to illness, injury, or declining mental capacity or if you don’t want to.

There are two types of LPA:

• Property and Financial Affairs LPA – lets your attorney manage your finances, pay bills, sell property, and handle investments.
• Health and Welfare LPA – allows your attorney to make decisions about your medical treatment, care arrangements, and daily routine if you’re unable to do so yourself.

Without an LPA in place, your loved ones would need to apply to the Court of Protection to make decisions on your behalf – a lengthy, costly, and often stressful process. Crucially, they may not be given the authority to act in the way you would have wished.

With application fees set to rise and the OPG now operating more efficiently (having cleared registration backlogs and improved service levels), it’s a good time to act.

At Eldon, we strongly recommend reviewing your estate planning and ensuring LPAs are in place as part of your financial strategy.

If you would like to speak with your Financial Planner here at Eldon, then please do not hesitate to get in touch with us.

The Pensions Act 2014 requires the government to conduct a periodic review of the State Pension age (SPA). The first review concluded in 2017, and the second review concluded in 2023. The government has announced the launch of the third review of State Pension age in July 2025, which is set to conclude in 2029. This review will consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.  

As a reminder, the current timetable for the SPA, is shown below:

• SPA will increase from 66 to 67 – between April 2026 and April 2028

• SPA will increase from 67 to 68 – between April 2044 and April 2046

The announcement comes following warnings from experts that people looking to retire in 2050 are on course to receive £800 per year less than current pensioners. This is due to the fact that 45% of working-age adults are not contributing into their pensions, with concerns that the cost of living crisis is preventing people from investing in their retirement.

The government have confirmed that there will be no further increases to National Insurance contributions under this parliament, both employee and employer, to help fund the issue. They have also confirmed that the pensions triple lock, the guarantee that the state pension rises in line with average earnings, inflation or 2.5% – whichever is highest – would not be reconsidered as part of this review.

Any recommendations from the review will take time to implement and the government remains committed to the principle of providing 10 years’ notice of changes to the SPA.

Beth and Natasha recently had the pleasure of attending the Careers Fair at Park View Academy in Chester-le-Street. The event was a great opportunity to engage with students, share insights into the financial planning profession, and highlight the rewarding career paths available within the sector.

Throughout the event, students were able to ask questions, explore different industries, and gain practical advice directly from professionals, helping them make more informed decisions about their future careers.

Eldon is proud to support events that promote career awareness. We aim to encourage young people to consider a future in financial planning whilst continuing to support financial education within local communities.

We’re incredibly proud of our team for undertaking the 2025 Alzheimer’s Society Trek through the North York Moors on Saturday.

The experience was a far cry away from our 2023 Ullswater Way trek, which we undertook in wild and stormy weather in the Lake District. This North York Moors challenge was blisteringly hot, with no breeze and a strong sun!

With plenty of water, good spirits, and team camaraderie, our two teams completed their challenge, raising almost £4,000 for Alzheimer’s Society as a result of their dedication.

We’re so proud of them!

Donations to our fundraising page will stay open for another week or so. Eldon is matching all fundraising so whatever you give will be doubled to the charity: https://www.justgiving.com/page/eldon-financial-alzheimer-trek-2025

Every donation, no matter the size, will help bring us closer to a world where dementia no longer devastates lives.

Together we can take a step towards a better future.

Well done, Team!

We are delighted to announce that Trainee Paraplanner Samantha has now gained her Diploma in Financial Planning.

Samantha started her studies in March 2024 whilst she was working full time in clinical trials at the NHS before joining Eldon in April 2025 to support us with both administration and paraplanning.

Samantha will now be working towards the Advanced Diploma in Financial Planning with a view to achieving Chartered Status.

Well done, Samantha! We are looking forward to seeing what you achieve next!

Inheritance tax (IHT) continues to generate increasing revenue for HMRC, with April 2025 alone bringing in £800 million. This is a rise of £97 million compared to April 2024, or a 13.8% year-on-year increase. The broader picture shows the 2024/25 tax year setting a record £8.2 billion in IHT receipts.

This growth isn’t new; since 2009/10, when inheritance tax brought in £2.4 billion, receipts have steadily climbed—both in real terms and as a proportion of the UK’s GDP. In fact, IHT now makes up an estimated 0.28% of GDP, nearly double the 0.15% seen in 2009/10.

Why Are Receipts Increasing?

A few key drivers are contributing to this trend. Since March 2021, the nil-rate bands for inheritance tax have been frozen—a policy set to continue until 2030. Meanwhile, rising property prices, often the biggest asset an individual has, and strong investment markets have increased the value of many estates, pushing more of them above the tax threshold.

And the upward pressure isn’t over. The Autumn Budget 2024 announced significant reforms to Agricultural and Business Relief (effective April 2026) and the inclusion of unused pensions in estates from April 2027. These changes are likely to see the inheritance tax revenue increase further for HMRC in the future.

What Does the Future Hold?

According to the Office for Budget Responsibility, nearly 10% of estates will be subject to inheritance tax by 2030. That’s more than double the 4% of estates affected in 2020/21.

This shift is prompting more individuals and families to consider how inheritance tax might affect their legacy and whether steps can be taken to reduce the impact.

“A Voluntary Levy”?

To quote former Labour Chancellor Roy Jenkins:

“Inheritance tax is, broadly speaking, a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue.”

While tongue-in-cheek, the quote underscores the importance of effective inheritance tax planning.

That said, everyone’s priorities are different. Some value the reassurance of retaining capital for life’s uncertainties and are accepting of any potential inheritance tax that comes with this, whilst others prefer to pass on as much as possible to loved ones or spend their wealth during their lifetime.

Planning Ahead

There’s no one-size-fits-all approach to inheritance tax planning. Each situation is unique, and careful, tailored planning is essential to align financial strategy with personal goals and values.

What’s more, IHT planning isn’t static. Legislative changes can undo previous strategies, and personal circumstances often evolve. Regular reviews and proactive planning are crucial to staying on course.

If you would like to speak with your Financial Planner here at Eldon, then please do not hesitate to get in touch with us.

On 12^th July, the Eldon team will be participating in The Alzheimer’s Society Trek across the North Yorkshire Moors, along with over 700 other walkers, to raise money for the charity. Our team will be split into two groups, with one covering 26 miles, while the other covers 13 miles. The two routes incorporate stunning coastal and moorland views and will present an enjoyable challenge.

In their own words, Alzheimer’s Society are working towards a world where dementia no longer devastates lives. They help those currently living with dementia, with around 900,000 people estimated to be living with the condition in the UK today. Alongside this, they campaign to make dementia a priority and hold decision-makers to account, whilst funding vital research projects to seek the best ways to get early diagnosis, innovate care, and develop targeted treatments.

Our team is looking forward to the Trek and we are grateful to anyone who feels able to donate to the cause. If you would like to donate, you can do so via our Just Giving page at the following link: https://www.justgiving.com/page/eldon-financial-alzheimer-trek-2025

More information on Alzheimer’s Society and their work can be found here: https://www.alzheimers.org.uk/

If you would like to talk to a member of the team about the Trek, please don’t hesitate to contact us.

Earlier this month, we were delighted to welcome Samantha to the Eldon team. She will be supporting us with both administration and paraplanning, and we’re thrilled to have her on board. We look forward to supporting her growth as she develops her career in paraplanning with us.

Here’s a little bit about Samantha:

“I joined Eldon in 2025, drawn by the firm’s genuine, client-focused approach to Financial Planning. I am passionate about helping people feel confident and in control of their financial future, and I bring with me a background in healthcare – an experience that has shaped my ability to build lasting, honest relationships with clients.

Currently, I am working towards my Diploma in Regulated Financial Planning, with the long-term goal of achieving Chartered status. I’m excited to continue growing with Eldon and to support our clients through every stage of their financial journey.

When I’m not at work, you’ll usually find me walking my two dogs around Northumberland, keeping up with Formula 1, or enjoying some really good cheese.”

In a significant update for UK savers, the Prudential Regulation Authority (PRA) has today proposed an increase to the deposit protection limit under the Financial Services Compensation Scheme (FSCS), raising it from £85,000 to £110,000.

The FSCS currently protects 100% of the first £85,000 held by an individual, per UK-regulated financial institution (not per account). Joint accounts are eligible for FSCS protection up to the same limit of £85,000 per eligible person.

The FSCS only applies to organisations regulated by the Financial Conduct Authority, with the main categories of protected savings including:

• Current accounts
• Savings accounts (including sharia accounts)
• Cash ISAs (including cash Lifetime ISAs & Help to Buy ISAs)
• Small business accounts
• Cash saved within a SIPP (Self Invested Personal Pension) 

The proposed increase aims to reflect the level of inflation since the limit was last changed in 2017, offering even greater reassurance to consumers that their savings are safe should their bank, building society, or credit union face financial difficulties.

The new limit, if approved, would apply to any financial institution that fails after 1^st December 2025.

What happens next?

The PRA has opened a consultation on the proposed changes today, and they are seeking responses from the public and stakeholders until 30 June. After reviewing feedback, the PRA expects to announce the outcome of the consultation in November, with any changes to the deposit protection limit requiring approval from HM Treasury.

If you have any questions about this, please do not hesitate to get in touch with a member of the team.