Author: Talking Finances

As a parent, it’s natural to think about the health of your loved ones. Yet, these types of concerns can weigh on your mind and might mean you’re unable to focus on the positives or enjoy your time together. One step that may offer peace of mind is to consider how financial protection could support you.

A February 2025 survey from LV= suggests parents across the UK are becoming increasingly worried about the wellbeing of their children and how a critical illness could affect their family.

In these circumstances, critical illness cover may be valuable. Read on to find out how it might provide an income boost when you need it most.

The critical illness cover essentials you need to know

Critical illness cover is a type of financial protection that would pay out a lump sum if you were diagnosed with one of the conditions named in the policy. It’s important to note that not all illnesses would be covered, and how comprehensive your cover is can vary.

While some forms of critical illness cover would payout if your partner or child was diagnosed with a serious illness, this isn’t always the case.

So, it’s crucial you read the paperwork before deciding which option may be right for you.

The payout you receive could be used however you wish, such as to meet day-to-day costs, pay off your mortgage, or adapt your home if necessary. When you’re dealing with a critical illness, not having to worry about your finances could be a huge weight off your mind and allow you to focus on recovering.

To maintain the cover, you’ll need to pay regular premiums. The cost of cover varies depending on a range of factors, such as your health and the size of the potential payout.

62% of working parents say a critical illness would affect their finances

Almost two-thirds of working parents worry about how being diagnosed would affect their ability to earn an income, the LV= survey found. Worryingly, 31% of those said they weren’t confident they could cope financially if they were diagnosed with a critical illness.

If you were diagnosed with a critical illness, it may involve taking time away from work. In some cases, you might find your current position is no longer suitable.

As a result, the diagnosis could affect your family’s short- and long-term finances. Taking out appropriate financial protection could help you manage your household budget, meet financial commitments, and keep long-term plans on track.

67% of families worry about the prospect of their child being ill

As a parent, you might not only worry about becoming ill yourself but be anxious about your child’s health too.

Indeed, the LV= survey found that 67% of parents worry about their child being diagnosed with a serious illness, and 68% expressed concerns about their mental health.

While you’re dealing with the emotional challenges of your child being ill, the last thing you want to worry about is money. However, 62% of parents said they were concerned about the effect it could have on their ability to work.

You may need to take time off work to care for your child or attend appointments. A critical illness payout might mean you don’t need to worry and can take the time away from work you need. In some cases, critical illness cover might also payout for accommodation, which may allow you to stay close to a hospital if necessary.

Your child being ill is every parent’s worst nightmare, and while critical illness cover can’t remove health risks, it could mean you don’t need to worry about finances should the worst happen.

Contact us to talk about protecting your family

If you’re worried about how your family would cope if you or your child were diagnosed with a critical illness, please get in touch. We could help you create a financial safety net, including financial protection if appropriate.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Note that financial protection plans 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.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

Listening to live music is a great way to spend an evening, whether you’re out by yourself or spending time with your friends and family.

If you’ve been searching for the next event to attend, you might find that International Jazz Day is the perfect excuse to visit an incredible jazz club near you.

This annual celebration takes place on 30 April 2025 and aims to teach more people about the empowering history and legacy of jazz music, as well as strengthen the welcoming community by organising live music events around the world.

Whether you’re a jazz club regular or you’ve never listened to the music live before, you might be pleased to hear there are fantastic jazz clubs dotted around the UK where you can experience the best the genre has to offer.

Read on to discover 10 fantastic places to enjoy music on International Jazz Day.

1. Vortex, London

This volunteer-led jazz club has been singled out as one of the world’s best jazz clubs and was even included in the top 150 jazz venues around the world by the prestigious Downbeat magazine.

Located in Dalston, Vortex hosts more than 400 performances a year and has been celebrating improvised and experimental music for over 25 years. In fact, they have been instrumental in several famous artists’ careers, including saxophonist Evan Parker, who has a monthly residency there.

2. Peggy’s Skylight, Nottingham

Founded by a pianist and a singing chef, this jazz club prides itself on its authentic Middle Eastern food and ethically sourced produce as well as the long list of diverse live acts from the UK and beyond.

The cosy venue is the perfect place to grab a bite to eat with other people who share your passion, as well as uncover amazing up-and-coming artists.

3. The Bootlegger, Cardiff

Tucked away on the cobbled streets of Womanby Street, the basement of this cocktail bar is dedicated to live soul, jazz, blues, and rock ‘n’ roll music.

Enjoy the regular performances from local musicians and DJs while also revelling in their prohibition-era-themed decorations and delicious drinks.

4. The Nightjar, London

The Nightjar is one of the few bars on this list that hasn’t evolved with the times.

This amazing venue is still themed around the 1920s – the golden age of jazz – and the music and menu are designed to transport you straight into a bustling speakeasy from the past.

5. The Verdict, Brighton

This grassroots music venue focuses on a range of jazz styles, from blues, swing, Latin jazz, and fusion – all included in their weekly live events.

Despite being Brighton’s only dedicated jazz club, it won Jazz Venue of the Year 2024 as well as the Guardian naming it one of the top 10 jazz clubs in Europe.

6. Metronome Jazz Bar, Chester

This small and atmospheric bar is an intimate venue nestled in the heart of Chester.

Its incredible selection of drinks, kind staff, and resident jazz pianist make this the perfect cosy venue for a quieter night out with your loved ones.

7. The Jazz Bar, Edinburgh

The Jazz Bar is the longest-standing independent jazz bar in Edinburgh and has hosted renowned jazz musicians from around the world.

With live performances scheduled every day, the bustling basement space is the perfect place for you to celebrate International Jazz Day.

8. The Concorde Club, Southampton

Jazz clubs tend to change owners regularly, but the Concorde Club has remained in the hands of the Mathieson family since it first opened in 1957, making it the oldest jazz club under the same management in the UK.

This historical venue was also voted number one for having made the biggest contribution to jazz music in the UK in 2009.

9. Band on the Wall, Manchester

Band on the Wall has been a cornerstone of Manchester’s music scene and cultural landscape since the early 20th century. The name comes from the venue’s origins as The George and Dragon, where musicians would perform on a stage halfway up the back wall to make room in the busy pub.

The venue is dedicated to promoting equality and diversity through music and regularly invite leading artists from around the world to perform, as well as organising its own trailblazing creative music projects.

10. Ronnie Scott’s, London

In 1959, saxophonist Ronnie Scott opened a small basement club in London’s West End. Now, in its new home in Soho, the venue has evolved into one of the world’s most famous jazz clubs and attracts full audiences nearly every night.

If you would like to see a celebrity, Ronnie Scott’s continues to present the biggest names in jazz. However, it’s also known as the go-to place to catch rising stars, so you can say you knew about them before they found fame.

Geopolitical tensions have led to a bumpy start to 2025 for investors. If you’re worried about volatility and what it might mean for your long-term finances, there are reasons to remain calm despite the uncertainty.

The ongoing war in Ukraine has resulted in some anxiety in Europe, with the UK and other countries committing to increasing defence spending. In addition, the new Trump administration in the US has imposed several trade tariffs on partners and suggested more will follow.

As a result, many companies and sectors have seen share prices rise and fall more sharply than usual.

Indeed, according to the Guardian, the euro STOXX equity volatility index, which tracks market expectations of short- and long-term volatility, reached a seven-month high at the start of March 2025. The index has almost doubled since mid-December 2024, suggesting investors are feeling nervous.

As an investor, these external factors are likely to have affected the value of your investments over the last few months.

Investment markets don’t like uncertainty

Uncertainty is one of the key factors that contributes to volatility in investment markets.

Unknown policies or other events can make it difficult to understand how a company will perform financially over the long term. This uncertainty can affect the emotions of investors, who may be more likely to make knee-jerk decisions as a result.

Imagine you hold investments in an electronic goods company based in China. In the news, you read the US will impose a 10% tariff on all Chinese goods. As a major export market, this decision by the US could significantly affect the profitability of the company.

After hearing the news, you might worry about your finances and whether you should still invest in the company. If enough investors act on these concerns, it may result in the value of the shares in the company falling.

With so much global uncertainty at the moment, your investments and the wider market could experience more volatility than usual in the coming months.

Level-headed investors could improve investment outcomes over the long term

While it may be difficult, remaining level-headed during times of uncertainty could make financial sense. Here are four reasons to remain calm.

1. Periods of volatility have happened before

When markets are volatile, it may feel unusual or unexpected. However, market volatility is a normal part of investing.

While investment returns cannot be guaranteed, historically, markets have delivered returns over a long-term time frame. Even after downturns, markets have bounced back.

Remembering this could help put your mind at ease and allow you to focus on the bigger picture rather than short-term market movements.

2. Diversified investments could smooth out volatility

Newspaper headlines are designed to grab your attention, and they’re likely to focus on the parts of the market that are experiencing the greatest volatility. For example, you might read that “technology stocks have plunged 10%” or “markets in Japan are booming”.

While these headlines aren’t inaccurate, they don’t tell you the whole story.

In reality, a balanced investment portfolio will typically include investments across a range of assets, sectors and geographical locations.

So, while a fall in technology stocks might affect you, it may not have as large of an effect as you expect if you only read the headlines. Gains or stability in other areas of your investment portfolio could balance out the dip.

3. Market volatility may present an opportunity to buy low

If you’d previously planned to invest a lump sum or you invest regularly, market volatility may cause you to rethink. However, halting your investments might mean you miss an opportunity.

When markets fall, you might have a chance to invest when the price of stocks and shares is lower, allowing you to buy more units for your money. Over the long term, this could lead to better yields.

While investing during a low period could result in higher returns over the long term, you should ensure investments are appropriate. You may want to consider your financial risk profile and wider circumstances when deciding how to invest your money.

4. Trying to time the market can prove costly

Finally, if you’re focused on what the market is doing today, it can become tempting to try and time the market – to buy low and sell high.

However, with so many external factors affecting markets, it’s impossible to consistently time it right. Even professionals, who have a team and resources, don’t always get it right.

Rather than trying to time the market, remaining calm and sticking to your long-term investment strategy is often a better course of action.

Contact us to talk about your investments

If you have any questions about how your investments are performing or would like to review your investment strategy, please get in touch. We’re here to answer your questions and help you feel confident about your financial future.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

An incoming change to the way pensions will be taxed when they’re inherited might mean you’re rethinking how you use your pension. Before you dive into updating your retirement plan, it’s important to understand what the changes could mean for you and how to balance passing on wealth with your retirement aspirations.

During the Autumn Budget in October 2024, chancellor Rachel Reeves announced that from April 2027 unspent pensions are likely to be included in Inheritance Tax (IHT) calculations. The government predicts the move will affect around 8% of estates each year.

In 2025/26, if the value of your entire estate is below £325,000, no IHT will be due. This is known as the “nil-rate band”. In addition, if you leave your main home to direct descendants, you may also benefit from the residence nil-rate band, which is £175,000 in 2025/26. Both thresholds are frozen until April 2030.

Your estate covers all your assets, such as property, savings, and material items. Currently, pensions fall outside of your estate, but you may want to consider how the value might change once pensions are included ahead of the new rule in 2027. Reviewing your retirement and estate plan could help you identify ways to improve long-term tax efficiency.

According to a February 2025 survey from interactive investor, 54% of UK adults are already planning to adjust their retirement or estate plan in response to IHT changes.

3 ways you might adjust your retirement plan to reflect Inheritance Tax changes

If the inclusion of your pension in your estate could increase the amount of IHT due, you might decide to update your retirement plan. Here are three options you could consider.

1. Spend more in retirement

The IHT changes could provide an excellent opportunity to update your retirement plan and consider what’s possible. Spending more of your pension during your life may bring the value of your estate under IHT thresholds or reduce a potential bill.

In the interactive investor survey, 19% of respondents said they plan to withdraw more money from their pension and gifting it (more on this later). What’s more, 6% are thinking about retiring earlier than previously planned.

So, if you want to deplete your pension during your lifetime, rather than leaving it as an inheritance, what would you do? You might start to think about a once-in-a-lifetime trip or how an income boost could allow you to do more of the things you enjoy, whether that’s visiting the theatre, supporting good causes, or keeping active.

Of course, spending more often needs to be balanced with long-term sustainability. A financial plan could help you understand if increasing pension withdrawals in retirement may lead to you running out of money later in life.

One thing to keep in mind is how increasing pension withdrawals could increase your Income Tax liability in retirement.

Your pension withdrawals will be added to other sources of income when calculating your Income Tax bill. As a result, taking a higher income from your pension could unexpectedly push you into a higher tax bracket.

2. Use your pension to gift wealth to your loved ones

If you’d previously planned to leave your pension to loved ones as an inheritance, gifting during your lifetime could provide a solution. You might withdraw a regular income or a lump sum to pass on to your beneficiaries.

A gift during your lifetime could be more beneficial to your loved ones than an inheritance later in life. It may allow them to purchase their first home, get married, pay education fees, or simply improve their day-to-day finances.

When gifting wealth, you may need to consider the “seven-year rule”. If you pass on assets and die within seven years of the gift being given, the asset could be included in your estate for IHT purposes. So, gifting during your early years of retirement could make sense if your goal is to reduce a potential IHT bill.

Again, keep in mind that withdrawing lump sums from your pension might increase your Income Tax liability and that gifting could affect your long-term financial security.

3. Reduce your pension contributions

8% of participants in the interactive investor survey suggested they planned to cut pension contributions due to the IHT changes.

For some people, this might be the right decision. For example, if you’ve already built up enough pension wealth to support yourself throughout retirement and you’d like to divert your money to other assets you could pass on tax-efficiently. However, it’s important to carefully assess your options to prevent knee-jerk decisions.

While your unspent retirement savings could become liable for IHT when you pass away, pensions are often tax-efficient in other ways. For instance:

• Your pension contributions will typically benefit from tax relief
• You can normally withdraw 25% of your pension (up to £268,275) tax-free
• Returns generated from investments held in your pension are not usually liable for Capital Gains Tax.

So, while your pension’s value may affect your estate’s IHT liability, maintaining, or even increasing, pension contributions could be tax-efficient when you look at them in the context of your wider financial plan.

Get in touch to talk about your pension and estate plan

If the incoming changes mean you’re unsure how to manage your pension or pass on wealth to loved ones, please get in touch. We can work with you to create or adjust a tailored financial plan that considers your circumstances and goals as well as regulation.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

The Financial Conduct Authority does not regulate estate planning or Inheritance Tax planning.

Have you ever made a decision to continue with a course of action based on what you’ve already put into it? This bias, known as “sunk cost fallacy”, might mean you don’t make rational decisions and stick to a path that’s no longer right for you.

If you’ve been affected by the sunk cost fallacy, it doesn’t automatically mean you made a wrong decision. In fact, factors outside of your control could mean that what was once an excellent decision for you, no longer makes sense. However, by basing your next decision on what you’ve already done, you could hinder your ability to make the “right” choice now.

Feeling like you’ve already invested resources may mean you don’t want to turn away

The sunk cost fallacy refers to the resources you’ve lost and can’t get back. This loss might mean you’re less likely to assess alternative options, as you don’t want it to be in vain.

So, your past effort affects the decisions you’re making about the future.

The sunk cost fallacy is more likely to occur if you’ve already invested heavily in something. It doesn’t have to be a financial investment. The time you’ve poured into a project or the emotional energy you’ve dedicated to it could cloud your judgement too.

It’s often linked to other types of cognitive bias.

For example, loss aversion theory suggests you feel emotions connected with loss more keenly than those associated with winning. So, if you feel like you’ve lost resources, you might be more emotional, and less likely to focus on logic than you usually would.

Another bias sunk cost fallacy is often linked to is confirmation bias – where you seek out information that supports your preconceived idea. If you’ve already decided you want to proceed with a plan because you’ve invested in it already, you might start to prioritise data that suggests this is the right thing to do.

There are plenty of examples of the way sunk cost fallacy might affect you.

If you’re taking the lead on a project at work, you might be reluctant to change course, even if it’s clear it isn’t going to work as well as alternatives, because of the time you’ve already invested.

With your finances, you might refrain from selling an investment that no longer aligns with your financial plan because the share price has fallen recently so you feel like you’ll be “losing”.

4 useful steps that could help you avoid sunk costs affecting your decisions

1. Imagine it’s a new decision

While it’s difficult, try to look at the decision with a fresh perspective – if you hadn’t already sunk costs, how would you view the decision today?

Doing this could highlight where your past efforts might be influencing the decisions you’re making now.

2. Focus on the future

When you’re reassessing your decisions, look forward as well. For example, if you’re reviewing an investment, what are the expected returns and how much risk would you be taking? Looking forward, rather than back, could help focus your mind so you’re not dwelling on perceived losses.

3. Set goals

One effective way of avoiding the sunk cost fallacy is to set goals from the start. If you have a clear idea about what you want to achieve, you’re more likely to be able to evaluate whether sticking to a plan continues to be the right decision.

Taking an objective-based approach means you’re less likely to focus on the emotional side of decision-making, and, instead, pay attention to the expected outcomes.  Understanding how decisions might support long-term goals could mean you feel more confident when the evidence suggests a different course of action could be better suited to you.

4. Get an outside view

Sometimes it’s impossible to look at a decision you’ve made objectively, as you may be emotionally attached to it. This is where an outside perspective could be useful.

A person who isn’t thinking about the “losses” could help you see why you’re holding on to a decision that might no longer be right for you.

As a financial planner, we could act as an alternative perspective when you’re assessing financial decisions. If you’d like to talk to us, please get in touch.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

You don’t know what’s around the corner, but that doesn’t mean you can’t prepare for it.

A financial shock could derail your short- and long-term plans and might mean you face additional stress at an already difficult time. So, creating a financial safety net that you can rely on should the unexpected happen could offer you peace of mind.

Over the next few months, you can read about how financial protection might provide a cash injection if you’re unable to work due to an accident or illness. Read on to find out how appropriate financial protection may help you bridge the financial gap if your income stops.

7% of economically inactive people are dealing with long-term sickness

No one wants to think about becoming too ill to work. However, the chances of it happening could be higher than you think.

Indeed, an April 2024 report published by the House of Commons Library estimated that around 7% of the working-age population who are economically inactive are dealing with long-term sickness.

In many cases, those who cannot work will see their income slashed, which may mean they cannot meet essential financial commitments. This added stress could make recovery even more challenging. So, it’s important to understand how you’d cope financially if your income stopped and whether there’s a potential gap.

3 ways you might receive an income if you’re unable to work

Statutory Sick Pay

If you’re an employee who earns at least £125 a week, you’re normally entitled to Statutory Sick Pay (SSP). While this could provide some income if you’re unable to work, it’s often not enough on its own to cover regular household expenses.

Indeed, SSP is just £118.75 a week, so you’re likely to face a shortfall if you’re relying on this alone. In addition, SSP will only be paid for up to 28 weeks. So, those facing a long-term illness could find the money they receive through SSP stops.

According to Citizens Advice in November 2024, around a quarter of workers have to rely on SSP alone if they’re unable to work.

Occupational sick pay

In addition to SSP, around half of workers would benefit from receiving their full wages through occupational sick pay. It’s worth checking your employee handbook or contract to see if your workplace would continue to pay you an income if you’re unable to work.

If your employer provides sick pay, there are two key things to check:

1. Would you receive your full salary or a portion of it?

2. How long could you receive occupational sick pay for?

It’s common for the amount you receive through occupational sick pay to reduce the longer you’re off. For example, you may receive your full salary for the first six months, and then half your regular pay for a further six months.

So, even if your employer offers sick pay, you could still face an income gap.

Depleting your assets

If you need to create an income while you’re ill, another option is to use your assets. You might withdraw money from your savings or investments to cover day-to-day costs.

While useful, if the money wasn’t earmarked as an emergency fund, depleting your assets might affect other goals, from going on holiday to your retirement.

Financial protection may provide an income injection when you need it most

Depending on the type of financial protection you take out, it could provide either a regular income or a lump sum if you’re not able to work due to an illness or accident.

So, if you’d struggle to cope financially if your income unexpectedly stopped, financial protection might be a safety net you want to consider. Not worrying about how you’ll pay the bills could make your recovery smoother or mean you have more options if returning to work isn’t possible.

Contact us to talk about your financial safety net

We don’t have a crystal ball to predict what will happen in the future. However, we can work with you to create a financial plan that includes a safety net should the unexpected happen.

If you’d like to understand what steps you might take to create long-term financial security, please get in touch.

Next month, read our blog to discover the different types of financial protection that may be useful for you and your family.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Note that financial protection plans 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.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.