Many people taking a career break will consider the effect on their short-term finances, such as how they’ll pay essential bills and if they’ll need to dip into savings. However, they may not consider the potential long-term implications of pausing pension contributions.

A two-year career break could mean your pension is thousands of pounds less

According to figures published in the i Paper (4 March 2026), a 27-year-old with a £9,000 pension pot contributing £200 a month who takes a two-year break at age 30 would see their projected retirement pot shrink from £199,130 to £188,727 – a difference of more than £10,400.

One of the most common reasons to take a career break is for maternity leave. Indeed, Scottish Widows states that the biggest driver of the gender pension gap remaining “stubbornly wide” is career breaks. Around half of women have taken a career break at some point, compared to 1 in 5 men.

Of course, there are other reasons to take a career break. You might have caring responsibilities for elderly relatives, further your education, or simply take a break.

Whatever your reasons for taking a career break, there might be some steps you could take to keep your retirement on track.

5 practical tips that could support your long-term finances during a career break

1. Assess the potential impact

Don’t bury your head in the sand when you’re taking a career break. Instead, work out what you expect the financial impact to be before you stop working.

It might feel like a daunting task, but knowing where you stand could help you feel more in control. Armed with this information, you can create a plan to mitigate the implications of a career break and boost your confidence about the future. You might even find that you’re in a better position than you expect, and your pension will remain on track without any adjustments.

2. Consider your National Insurance record

For many people, the State Pension plays an important role in their retirement finances, as it provides a reliable income.

The amount you’re entitled to when you reach State Pension Age is linked to your National Insurance (NI) record. Usually, you’ll need 35 qualifying years on your record to receive the full State Pension. If you take a career break, you could be left with a gap.

In some cases, you may be able to claim NI credits to fill these gaps. For example, if you receive Child Benefit for a child under 12 or are a carer for a disabled person, you might receive NI credits.

Depending on your circumstances and plans, a career break might not harm your State Pension entitlement either. If you started working full-time at 20 and plan to retire at 65, you’d have 45 years on your NI record. So, even if you took a break for a few years, you’d still have the required 35 years to receive the full amount.

You can check your NI record online to understand if a career break might affect your State Pension income.

3. Continue to make pension contributions during a career break

Taking a career break doesn’t mean you have to stop pension contributions. If you’re in a financial position to do so, you could make one-off or regular contributions into your pension, which would benefit from tax relief.

One thing to note is that the limit for receiving tax relief on your pension contributions as a non-taxpayer in 2026/27 is £2,880. If you deposit the full amount, it will attract tax relief of £720.

However, it is possible to carry forward unused pension Annual Allowance from the previous three tax years if you’ve exhausted this year’s allowance, which might allow you to make higher contributions tax-efficiently.

4. Make pension contributions from your partner’s salary

If you’re taking a career break while your partner continues to work, for example, as the primary caregiver to young children, they could make contributions to your pension alongside their own.

This option could ensure both you and your partner’s pensions continue to grow to keep your shared retirement on track.

5. Make higher pension contributions when you return to work

Being aware of a potential pension gap before you take a career break could allow you to create a long-term plan. To make up for a shortfall, you might be able to increase your pension contributions when you return to work.

We could help you assess the impact of a career break

Whether you’ve taken a career break or are planning one in the future, we could work with you to understand how it might affect your pension. By being proactive, you could keep your retirement plans on track and feel confident about your finances.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

Any links will direct to a third-party website and Bluecoat Wealth Management is not responsible for the accuracy of the information contained within linked sites.

Approved by Best Practice IFA Group Limited on 11/05/2026.

The post How to take a career break and keep your pension on track appeared first on Bluecoat Wealth Management.

Lloyds’s 2024 Consumer Digital Index (3 November 2025) suggests 1 in 5 adults – the equivalent of 11 million people – are helping others handle financial accounts online. Among the most common tasks were making payments, checking balance information and statements, and paying in cheques.

Logging into a family member’s bank account to pay essential bills might seem harmless, but it could be risky if an LPA isn’t in place. Indeed, assets may be frozen, and it could lead to disputes in the future.

The Lloyds report indicates that only 21% of people supporting loved ones with their digital finances have a formal agreement, such as an LPA.

A Lasting Power of Attorney allows someone you trust to make decisions on your behalf

An LPA gives someone you trust the ability to make decisions on your behalf if you lose mental capacity. There are two types of LPA:

1. Health and welfare, which covers decisions around areas like daily routine, medical care, moving into a care home, and life-sustaining treatment. This LPA can only be used if you’re unable to make your decisions.
2. Property and financial affairs, which allows an attorney to take actions such as managing a bank account, paying bills, collecting benefits or a pension, or selling property. This LPA may be used as soon as it’s registered if permission is granted.

It’s important to note that no one has an automatic right to make decisions on your behalf, including your spouse or civil partner.

If someone could benefit from your support now or in the future, encouraging them to create an LPA could be important. It may allow you to make essential decisions on their behalf or manage their affairs when they’re in a vulnerable position.

It’s important that an LPA is created as soon as possible, as the paperwork cannot be signed once the person has lost mental capacity. While you or your loved one may believe there is plenty of time to ensure everything is in place, unexpected accidents or illnesses could occur. So, you may want to make it a priority.

Without a Lasting Power of Attorney, you’d need to go through the Court of Protection

If a loved one has not created an LPA and loses mental capacity, you’d need to apply to the Court of Protection to be appointed as a deputy. Often, this process is slower and more costly than using an LPA.

As a result, it could leave your loved one in a position where they cannot make decisions themselves, and no one can do so on their behalf. This could lead to important medical decisions being delayed or financial affairs not being addressed, which might have long-term consequences.

What’s more, there’s no guarantee that the court would appoint the deputy that the individual would have chosen for themselves.

Considering your own Lasting Power of Attorney

As you help a loved one set up an LPA, it may be a good time to review your own arrangements.

You can make an LPA online or using paper forms, which must then be registered with the Office of the Public Guardian. In most cases, you’ll need to pay a £92 application fee to register each LPA.

Think carefully about who you’d like to make decisions on your behalf, and who would be comfortable with the responsibility. You may choose more than one attorney and state whether they must make decisions together or if they can do so independently.

Scheduling time to talk to your attorneys could be useful, providing you with a chance to be clear about your wishes. Your attorney might need to make decisions about the type of treatment you receive if you’re ill or whether to sell your property if you move into care, and they may benefit from guidance from you.

While it might feel morbid to consider losing mental capacity, it could ensure your loved ones are able to support you when you need it most.

Get in touch

If you have questions about your estate plan or that of a loved one, including a Lasting Power of Attorney, we could help. Please contact us to arrange a meeting with one of our team.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate Power of Attorney.

Any links will direct to a third-party website and Bluecoat Wealth Management is not responsible for the accuracy of the information contained within linked sites.

Approved by Best Practice IFA Group Limited on 11/05/2026.

The post Are you supporting a loved one? You might need a Lasting Power of Attorney to act appeared first on Bluecoat Wealth Management.

Investment markets often experience volatility, which could tempt investors to make decisions based on short-term emotions. These actions might not align with their strategy and could harm long-term growth.

Instead, trusting your strategy may yield higher returns over the long term. Indeed, a common financial adage is “the best investors are dead”. Rather than responding to news or short-term movements, inactive investors buy and hold assets.

On the surface, doing nothing seems like a simple investment strategy, but common financial biases can make it difficult to follow.

5 financial biases that could make doing nothing difficult

1. Action bias

A key bias that makes doing nothing challenging is action bias, which means investors favour taking fast, decisive steps over extensive planning.

As a result, doing nothing can feel negligent, rather than disciplined. Some investors might also experience a sense of lack of control if they’re not actively managing their investments. Consequently, you might feel as though you must do something, even if it could potentially harm long-term returns.

2. Loss aversion

Loss aversion theory suggests that investors feel the pain of a loss twice as intensely as the joy of gains. So, when markets fall, it can cause emotional discomfort that could push you to act. Doing nothing might compound your worries and make you feel as though you’re ignoring risks.

3. Recency bias

In many situations, people focus on the most recent events, including when considering investment performance. This is known as recency bias.

When markets fall, investors might expect them to continue doing so. This anticipation of further dips could lead investors to take action in an attempt to prevent further losses. While this might seem rational, if it’s not aligned with a strategy, it could turn paper losses into actual ones.

Similarly, recency bias could take hold when markets are performing well. When markets are up, investors might make financial decisions in the belief that the rally will continue, which could lead to some taking more risk than is appropriate for them.

4. Social pressure

Investors are exposed to constant social pressure, which could come from the news, social media, or friends. All these different opinions about what’s happening in investment markets and how you should respond could amplify the sense of urgency.

If you don’t react to social pressure, you might feel like you’re ignoring important information or missing out on a potentially lucrative opportunity. Again, it’s a form of bias that could prompt financial decisions that don’t align with your overall investment strategy or risk profile.

5. Present focus bias

Finally, present focus bias refers to the cognitive tendency to prioritise immediate rewards and the gratification that comes with them over long-term benefits. For investors, this can manifest as making adjustments to their portfolio in a bid to secure returns quickly.

Quickly turning your initial investment into a larger sum to help you reach your goals is an attractive prospect. However, for the average investor, investing should be approached with a long-term outlook that helps balance your goals with investment risk. As a result, the present focus bias could skew your perception of what you should be doing.

We could help you manage your investments

An outside perspective could help you identify when bias might be influencing your decisions. As a financial planner, we could offer this and work with you to create an investment strategy that’s tailored to your circumstances and goals. Please get in touch if you’d like to arrange a meeting.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

Approved by Best Practice IFA Group Limited on 08/05/2026.

The post Why doing nothing might be the hardest investment strategy to follow appeared first on Bluecoat Wealth Management.

If you’re simply accumulating wealth, your assets don’t have a clear structure. Seeing the balance in your bank account rise can be comforting, but you’re taking a passive approach.

In contrast, with a financial plan, your assets have an intentional structure designed with your goals in mind. As a result, the decisions you make are deliberate.

If the value of your assets is rising, you might assume you’re on the right track, but creating a financial plan is often still valuable.

Why a tailored financial plan matters

1. Looking beyond the value of assets could paint a clearer picture

An increase in the value of an asset can feel like you’re on the right track to reaching your financial goals, but the number is only one part of the information you need to build a full picture.

Imagine you’re reviewing your pension and whether you’re on track for retirement. Seeing that you have £300,000 in your pension might feel good. However, that figure alone doesn’t tell you what income you might receive when you retire or when you’ll be able to step back from work.

A financial plan can help you understand what your assets could mean for your lifestyle now and in the future. It could also help you identify potential gaps and provide an opportunity to close them.

2. A financial plan may bring together multiple assets

One of the challenges of simply focusing on wealth is that you might view each asset in isolation. Often, you’ll need to bring together multiple assets to gain a clear idea of your financial health and what your options are.

Returning to the retirement planning example, you may use your pension alongside savings and investments to create an income. In addition, whether you may have debts, such as a mortgage, in retirement will affect the income you’ll need. So, if you only consider your pension, you may be missing essential details.

3. You could identify tax allowances and exemptions

Working with a financial planner could help you identify appropriate tax allowances and exemptions that might allow you to get more out of your finances.

Let’s say you’ve decided to invest £250 a month to support your long-term goals. Using a Stocks and Shares ISA could mean your potential investment returns are not liable for tax. Tailored advice might help you recognise how changes to the way you manage your finances could make them more efficient.

4. A strategy might help you measure the impact of your decisions

If you’ve not set clear goals and planned for them, it can be difficult to assess the impact of your decisions.

Working with a financial planner to create a cashflow model could provide a way to visualise your finances and how they might change over time. You can use this model to test different scenarios, so you might see the impact of adding money to your pension compared to overpaying your mortgage.

It’s important to note that the outcomes of a cashflow model are not guaranteed, but it can provide useful insights when you’re making decisions.

5. A clear plan could reduce impulsive decisions

Another benefit of understanding the effect of your decisions is that it could reduce impulsive or emotional decision-making, as you’re able to see the bigger picture.

Get in touch to talk about your financial plan

If you’d like support in creating a long-term financial plan, we’re here to help.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

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.

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 cashflow modelling or tax planning.

Approved by Best Practice IFA Group Limited on 11/05/2026.

The post Wealth v strategy: Why a financial plan is essential appeared first on Bluecoat Wealth Management.

Each year, the amount of IHT paid to HMRC is increasing. By 2030/31, the Office for Budget Responsibility (February 2026) forecasts that IHT receipts will reach £14.5 billion, up from £8.3 billion in 2024/25.

Frozen tax-efficient allowances are a key driver behind this trend. As your estate grows, a larger portion could exceed the threshold and become subject to IHT.

What’s more, once your estate reaches £2 million, your tax-efficient allowance can start to reduce, exposing more of your wealth to IHT.

Read on to learn how the value of your estate could affect the amount you can leave behind tax-efficiently.

The nil-rate bands allow you to pass on some assets tax-free

Your IHT allowances are known as “nil-rate bands”.

As of 2026/27, the nil-rate band is £325,000. This is the amount you can leave behind when you die without the value being included in IHT calculations. The portion of your estate exceeding the nil-rate band is usually taxed at 40%.

You may also have a residence nil-rate band if you leave a primary residence to a direct descendant. This can be up to £175,000, as of 2026/27, bringing your potential tax-efficient allowance to £500,000.

If you’re married or in a civil partnership, the spousal exemption usually allows partners to leave assets to one another tax-free. Any unused nil-rate band typically transfers to the surviving spouse, potentially allowing couples to pass on up to £1 million tax-efficiently.

The nil-rate bands are expected to remain frozen until at least 2031, meaning a larger portion of your estate could be taxable than if the thresholds had risen with inflation.

You could start to lose your residence nil-rate band when your estate exceeds £2 million

The residence nil-rate band usually begins tapering once the value of your total estate reaches £2 million.

For every £2 your estate exceeds the threshold, you lose £1 of your residence nil-rate band. So, if your estate were £100,000 over the threshold, your allowance would reduce by £50,000.

The taper continues until your estate reaches £2.35 million, at which point you lose your full residence nil-rate band. This can mean an additional £175,000 of your estate could be subject to 40% tax, potentially increasing your IHT bill by £70,000. For a couple losing the full allowance, the IHT bill could rise by £140,000.

While married and civilly partnered couples can typically transfer unused nil-rate bands to potentially double their tax-efficient allowance, the taper threshold remains fixed at £2 million. In some cases, if assets are transferred to a surviving spouse, their total estate could exceed the threshold, and they could lose both partners’ residence nil-rate bands.

More estates are passing the threshold

MoneyWeek (February 2026) reports that the number of estates valued at over £2 million could rise from 3,620 in 2023 to 16,000 by 2030/31.

The level at which the residence nil-rate band begins to taper is set to remain frozen at £2 million until at least 2031, having not changed since it was introduced in 2017.

According to the Bank of England’s (April 2026) inflation calculator, the threshold would have risen to over £2.7 million if it had grown with inflation since 2017.

As earnings rise and asset values increase with inflation, more estates could pass the £2 million threshold and start losing their tax-efficient allowance.

In particular, rising property prices are pushing up the total net value of many estates. With the threshold frozen, it’s important to consider how the value of your assets might grow over the long term when planning to pass them on tax-efficiently.

What’s more, from April 2027, your unused pension pots could be included in your estate for IHT purposes when you pass away. Depending on how much is left in your pension when you die, this could add a significant amount to your estate’s net value, potentially pushing your total over the £2 million threshold.

3 ways to potentially mitigate an Inheritance Tax bill

If you’re worried about your estate exceeding the taper threshold and losing your nil-rate band, you might consider taking proactive steps to mitigate your estate’s IHT liability.

1. Give gifts in your lifetime

Gifting wealth in your lifetime could be an effective way to reduce the value of your estate. Gifts that do not qualify for an exemption may be included in your estate for up to seven years after they were given. If you die within seven years, the value could be subject to IHT.

However, when it comes to determining whether you have exceeded the £2 million taper threshold, only assets you owned at the time of death are usually included in calculations. Therefore, gifts made within the seven years prior to death typically do not count towards the threshold.

So, by gifting your wealth, you may reduce the likelihood of losing your residence nil-rate band, while reducing the size of your estate being taxed.

That said, it’s important to ensure gifts are affordable and will not impact your current financial wellbeing or long-term financial goals. A financial planner can support you in incorporating tax-efficient gifting into your wider financial plan.

2. Leave a charitable legacy

If you leave 10% or more of your net estate to charity when you die, your IHT rate could reduce from 40% to 36%. In addition, gifts left to charities when you pass away are not included in IHT calculations. Depending on your circumstances, it could be an effective strategy to reduce your IHT bill while supporting a cause close to your heart.

Additionally, giving to charity during your lifetime can help reduce the size of your estate to mitigate an IHT bill and prevent your residence nil-rate band from being reduced.

3. Place assets in trust

You may be able to mitigate an IHT bill by putting assets in a trust.

Assets held in a trust may still be liable for IHT, depending on the type of trust used and when you pass away. However, typically, the value will not be considered when calculating whether your estate exceeds the £2 million threshold for losing your residence nil-rate band.

The rules for placing assets in trust and the IHT implications can be complex and vary between different trust types. Usually, you will be unable to remove assets from a trust once you have transferred them in. So, it’s important to seek legal and financial advice before making any irreversible decisions.

Get in touch for estate planning support

If you’re worried about your estate’s IHT liability, get in touch to find out how we can support you to pass on wealth tax-efficiently.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

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

Any links will direct to a third-party website and Bluecoat Wealth Management is not responsible for the accuracy of the information contained within linked sites.

Approved by Best Practice IFA Group Limited on 08/05/2026.

The post How the value of your estate affects a key Inheritance Tax allowance appeared first on Bluecoat Wealth Management.

One effect of the conflict on global markets is the rising price of energy. Indeed, analysis from UBS suggests that March 2026 experienced the largest increase in global energy inflation for at least 25 years (MarketWatch, 8 April 2026).

Remember, market volatility is a part of investing, and it’s important to take a long-term view when reviewing the performance of your portfolio.

Uncertainty in the Middle East led to volatility

April 2026 started with the hope that the conflict in the Middle East would be resolved, which led to rallies in European and US markets.

Among the indices that were up on 1 April were the UK’s FTSE 100 (1.85%), France’s CAC 40 (2.3%), Italy’s FTSE MIB (2.6%), Spain’s IBEX (2.7%), and the US’s Dow Jones Industrial Average (0.6%) (Guardian, 1 April 2026).

However, on the evening of 1 April, US President Donald Trump delivered a primetime address. His speech suggested the situation in the Middle East would escalate and dented hopes of an early end to the conflict.

As a result, when markets opened in Asia-Pacific, Europe, and the US on 2 April, they dipped (BBC, 2 April 2026).

Following news of a ceasefire agreement between Iran and the US on 8 April, the FTSE 100 was up 2.6%. Only three companies fell: oil companies BP and Shell, and British Gas owner Centrica (Guardian, 8 April 2026). European stocks were also up – the pan-European Stoxx 600 index jumped 4%.

Yet, it didn’t take long for worries to emerge that a ceasefire would falter. On 9 April, concerns led to Asian and European markets falling again (Guardian, 9 April 2026).

The soaring price of oil and the need to reroute some flights led to airline stocks being hit on 13 April when talks between Washington and Tehran broke down. IAG, the parent company of British Airways, was down 2%. Wizz Air (-6.5%) and easyJet (-3.8%) were also among those affected (Guardian, 13 April 2026).

On 17 April, it was revealed that the UK government was considering ways to break the link between gas and electricity. The potential change would ease the burden on households and businesses, but could affect the profits of energy companies. When the FTSE 100 opened, it dropped 0.14%, with energy companies among the biggest losers, including SSE (-4%) and Centrica (-3.5%) (Guardian, 17 April 2026).

Later in the day, Iran announced that the Strait of Hormuz, an important waterway for trade, was now fully open. The news led to indices rising, including the Dow Jones (1.2%), the S&P 500 (0.7%), and the FTSE 100 (0.6%).

However, over the following days, there was uncertainty over a ceasefire and the accessibility of the Strait of Hormuz, which Iran declared closed. As a result, on 20 April, European markets fell when opening. Again, airlines were among the biggest fallers, while stocks in energy producers increased (Guardian, 20 April 2026).

On 24 April, Trump threatened the UK with a “big tariff” if the UK did not drop its digital services tax on US social media firms. On opening, the FTSE 100 was 0.46% lower (Guardian, 24 April 2026).

In contrast, Japan’s Nikkei closed on a record high thanks to earnings reports from the technology sector. In the week to 24 April, the index was up 2.1%.

The good news continued for the Nikkei when markets reoponed on 27 April (Nippon, 27 April 2026). The index surpassed 60,000 points for the first time on the back of peace talks taking place between the US and Iran.

UK

Data from the Office for National Statistics (ONS) suggests the UK economy was on a better footing than expected at the start of the year. GDP in February 2026 increased by 0.5% when compared to January (ONS, 16 April 2026).

Additionally, unemployment unexpectedly dropped to 4.9% in the three months to February 2026 (ONS, 21 April 2026). However, wage growth was at its lowest level since 2020. Excluding bonuses, wage growth was 3.6% (ONS, 21 April 2026).

It’s important to note that these indicators were recorded before the conflict in the Middle East, which the International Monetary Fund (IMF) expects to harm the economy. The organisation downgraded the UK’s growth expectations for this year to 0.8%, compared to 1.3% it projected in an earlier forecast (BBC, 14 April 2026).

The economic shocks from the conflict could lead to higher mortgage repayments for 1.3 million households, according to the Bank of England (Independent, 1 April 2026). Potential increases in borrowing costs may also affect businesses.

A construction index from Glenigan suggests that activity in the sector has tumbled due to pressure from the conflict and a persistently weak economy (Glenigan, 2 April 2026). In the three months to March 2026, work starting on site declined by 17% when compared to the final quarter of 2025.

Similarly, S&P Global Purchasing Managers’ Index (PMI) data shows business activity weakening in the service sector (Guardian, 7 April 2026). The PMI was 50.5 in March against a reading of 53.9 in February – a reading above 50 suggests growth.

The PMI for the manufacturing sector also highlighted the effect the conflict is having. UK factories were hit by the biggest month-on-month jump in costs since 1992 (Guardian, 1 April 2026).

Perhaps unsurprisingly due to ongoing uncertainty, a survey by YouGov and Cebr found that UK consumers are feeling gloomier about their household finances and job security (YouGov, 31 March 2026). The survey recorded a reading of 105.8 in March, the lowest figure recorded since December 2023.

Europe

Inflation in the eurozone increased faster than expected. In the 12 months to March 2026, the rate of inflation across the bloc was 2.6% (eurostat, 16 April 2026). There were significant differences between countries. Denmark reported the lowest rate of inflation of 1%, compared to 9% posted in Romania.

PMI data also indicates that while business activity is growing, it is weakening (S&P, 7 April 2026). According to S&P Global, the PMI reading in March was 50.7, which could suggest the economy is grappling with stagflation.

The ifo Institute reported that German business morale fell to its lowest level since the start of the Covid-19 pandemic in May 2020 (Ifo Institute, 24 April 2026). Businesses are concerned that rising energy costs due to the ongoing conflict could derail the country’s economic prospects.

US

The IMF warned that Trump’s trade war would slow the US economy. The organisation said that imposed tariffs would offset the benefits of falling inflation. However, the IMF does expect the US economy to grow by 2.4% in 2026, compared to 2% in 2025 (IMF, 2 April 2026).

The energy shock caused by the conflict has led to US inflation rising 0.9% in March 2026 when compared to the previous month (Guardian, 10 April 2026). The rate of inflation in the 12 months to March 2026 was 3.3%, putting it above the Federal Reserve’s 2% target.

Figures suggest that the energy shock is already hampering businesses. Indeed, production at US factories, mines, and utility companies fell by 0.5% in March (Bloomberg, 16 April 2026).

A survey from the National Federation of Independent Businesses also suggests that business sentiment fell to an 11-month low due to concerns about oil prices increasing (Yahoo, 14 April 2026).

Asia

To ease concerns over an energy shortage caused by conflict in the Middle East and the potential economic effects, Japanese Prime Minister Sanae Takaichi announced the release of additional oil reserves. It was hoped the move would head off a spike in energy prices (Reuters, 10 April 2026).

China beat growth expectations in the first quarter of 2026. Data from the National Bureau of Statistics shows the country’s economy grew by 5% between January and March 2026, 0.5% higher than the previous quarter (China Briefing, 17 April 2026).

Following this news, credit reference agency Moody’s lifted its outlook for China’s government debt from negative to stable (Reuters, 27 April 2026). The organisation said the changes reflect its assessment that the economy will be resilient to ongoing domestic, trade, and geopolitical challenges.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

Any links will direct to a third-party website and Bluecoat Wealth Management is not responsible for the accuracy of the information contained within linked sites.

Approved by Best Practice IFA Group Limited on 11/05/2026.

The post Investment market update: April 2026 appeared first on Bluecoat Wealth Management.

Amid growing backlash about student loans from graduates, the government has launched an inquiry. According to the BBC (12 March 2026), the Treasury Committee will look at whether the terms of student loans are “reasonable”.

The debate largely focuses on Plan 2 student loans

Plan 2 student loans were offered between 2012 and 2023. Under the terms of the plan, graduates pay back 9% of everything they earn above the repayment threshold, which is £29,385 a year in 2026/27. If the loan is not repaid within 30 years after the borrower was first due to repay, it is written off.

The current debate focuses on the interest added to Plan 2 student loans. Interest on Plan 2 loans is set at the rate of inflation, as measured by the Retail Prices Index (RPI), plus 3%, which is higher than that of other student loan plans. In 2026/27, Plan 2 loans are charged 6.2% interest, compared to 3.2% for graduates who took out a Plan 1 loan.

In most cases, the individuals will not need to start making repayments on a student loan until the April after they finish or leave the course, and only if they are earning above the repayment threshold (£29,385 in 2026/27).

For some Plan 2 graduates, this means even when they’re making repayments, the total amount owed is increasing.

As part of its review, the government announced (7 April 2026) that interest on Plan 2 loans would be capped at 6% from 1 September, for the 2026/27 academic year. Further changes could be made as the government continues to review the student finance system.

Students who take out a Plan 5 student loan, which was introduced in 2023, benefit from a lower rate of interest than those on Plan 2. However, the threshold for repaying the loan is lower, at £25,000 in 2026/27, and the debt will not be written off until 40 years have passed.

So, while the focus is on Plan 2 loans, criticism of Plan 5 loans may also arise, particularly as students graduate and begin to make repayments.

There are several potential ways student loans might change

According to the Institute for Fiscal Studies (27 February 2026), several options are likely to be considered by the inquiry, including:

• The Conservative Party have proposed imposing a maximum interest rate to remove the above-RPI-inflation that is added to Plan 2 loans, and while this wouldn’t have an immediate effect on the repayments of most graduates, it could potentially reduce the total lifetime loan repayments.
• The Liberal Democrats have proposed increasing the repayment threshold every year in line with average earnings. This option could reduce repayments for some graduates, but it could also lead to higher outstanding balances.
• Campaign group Rethink Payments has proposed a much larger package of reforms, which could combine a lower rate of inflation, a higher repayment threshold, and a reduction in the repayment rate from 9% to 5%.

Remember, commentary on how student loan plans might change is just speculation at the moment. The inquiry could choose a different option or decide that no changes are necessary.

3 ways you could help your loved ones manage student loans

1. Explain the long-term impact of student loans to those considering them

One issue that the debate has raised is that some teenagers did not fully understand the financial consequences of taking out student loans.

Indeed, a BBC investigation (3 March 2026) suggests that talks in schools about student loans were “deeply misleading”. Presentations delivered in thousands of schools between 2011 and 2017 avoided words like “debt” and compared taking out a student loan to a £30-a-month phone contract.

The current discourse doesn’t mean that taking out a student loan to attend university is the “wrong” decision. However, it’s important that young people who are making these decisions understand the long-term financial commitment they’ll often be making.

If you have children or grandchildren who are thinking about taking out a student loan, discussing how it’ll affect their finances could be valuable and allow them to make an informed decision.

2. Offer financial support to graduates

When coupled with the rising cost of living, student loan repayments can affect the financial security of graduates and delay other milestones. For example, Barclays (23 March 2026) found that savers with student loans put away £2,000 less each year towards a house deposit than those without.

You might want to lend support to your loved ones who are struggling to manage student loan repayments alongside other expenses, either through regular or one-off gifts. As financial planners, we could help you assess how offering support may affect your own financial position and how you might provide gifts tax-efficiently.

3. Build a nest egg to support loved ones going to university

Another option is to support students so they do not need to take out a student loan or can borrow less.

You might benefit from thinking about further education as early as possible. Regularly depositing into a savings account earmarked for the future from birth could lead to a sizeable nest egg by the time the child turns 18.

Again, we could help you assess how to make education costs part of your budget, whether your loved one will be heading to university this year or you’re planning for a young child.

We could help make your family’s education part of your financial plan

Whether you want to support a graduate or are planning how to cover university costs for a young child, we could help you make it part of your overall financial plan. Please get in touch to speak to one of our team.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

Any links will direct to a third-party website and [firm name] is not responsible for the accuracy of the information contained within linked sites.

Approved by Best Practice IFA Group Limited on 09/04/2026.

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The State Pension is a regular government payment you may receive from when you reach State Pension Age until you die. The current State Pension Age is 66, though it is gradually rising and is expected to reach 68 between 2044 and 2046.

The full rate of the new State Pension is £241.30 a week in 2026/27. However, your personal circumstances and National Insurance record will affect your entitlement.

You can use the government’s State Pension forecast to see when you could claim the State Pension and how much you can expect to receive.

If you choose, you can delay claiming your State Pension. According to data collected by Royal London (28 January 2026), almost 42,000 people deferred their State Pension in 2023/24, and 1 in 4 of these pensioners postponed taking their State Pension for five years or more.

Find out why some people might be delaying their State Pension and the potential drawbacks of doing so.

2 reasons you might delay your State Pension

1. You’d receive a higher State Pension payment when you claim it

One of the benefits of delaying your State Pension is that you’ll receive higher payments when you do claim it.

For every nine weeks you defer, your State Pension will increase by 1%. This works out at just under 5.8% if you defer for a year. For example, in 2025/26, the full new State Pension was £230.25 a week. If you deferred for the full year, you’d receive an extra £13.35 a week.

In some cases, you may be able to receive the additional amount as a one-off payment.

If you reached the State Pension Age on or after 6 April 2016, you can usually claim a one-off arrears payment of up to 52 weeks. If you reached State Pension Age before this date and deferred for at least 12 months, you could receive a lump sum payment, which will include interest of 2% above the Bank of England base rate.

2. Delaying your State Pension could be tax-efficient

If you plan to work past the State Pension Age or receive an income from other sources, delaying your State Pension payments could make sense from a tax perspective.

Your State Pension counts as income, and you could be liable for Income Tax. As a result, receiving the State Pension could increase your tax liability and potentially push you into a higher Income Tax band. For some, this could make delaying payments an attractive option.

Your personal circumstances will affect your tax position and whether delaying your State Pension is appropriate for you. We can help you assess your tax liability. Please get in touch if you have any questions.

2 drawbacks to consider before you delay your State Pension

1. You might not break even

One aspect to consider before delaying your State Pension is how long it would take to break even.

According to the government (6 April 2025), it will take more than 15 years to get back 52 weeks of the deferred full new State Pension. This time increases by around a year for each additional 52 weeks you defer.

So, while you’d benefit from higher payments once you do claim the State Pension, you could receive less overall if you passed away before you received back the full amount you deferred. As no one knows how long they will live, it can be difficult to assess if deferring your State Pension is right for you from a financial perspective.

2. Higher State Pension payments could increase your tax liability in retirement

As mentioned above, the money you receive from the State Pension is classed as income for tax purposes. So, deferring your State Pension to receive a higher amount in the future could increase your tax liability in retirement.

If your total income is below the Personal Allowance, which is £12,570 in 2026/27, you don’t need to pay Income Tax. However, in 2026/27, the full new State Pension is only just below this threshold at £12,547.60, so deferring is likely to push your income above the Personal Allowance before you factor in other sources of income.

Receiving a higher income from the State Pension might also affect eligibility for means-tested benefits.

So, you could benefit from considering the long-term tax implications of deferring your State Pension before you make a decision.

You don’t need to do anything to delay your State Pension

You need to claim your State Pension when you’re ready to receive it. So, if you wish to delay the payments, you don’t need to do anything.

However, it may be a good idea to assess this decision as part of your overall financial plan. As financial planners, we could help you calculate whether the potential tax benefits of delaying your State Pension make sense for you and assess alternative options. Please get in touch if you have any questions.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

Any links will direct to a third-party website and [firm name] is not responsible for the accuracy of the information contained within linked sites.

Approved by Best Practice IFA Group Limited on 08/04/2026.

The post Should you delay your State Pension? The pros and cons explained appeared first on Bluecoat Wealth Management.

An estate plan sets out how you’d like your assets, including your home, to be managed later in life and after you pass away. Here are three reasons you might want to make it a priority.

1. Ensure you pass your home to your intended beneficiaries

Who do you want to inherit your home when you die? If you don’t have a will in place, your property, along with other assets, may not go to your intended beneficiaries.

If you die without a will, this is known as dying intestate. In these circumstances, your assets will be distributed according to an order that might not align with your wishes. Yet, according to Will Aid (15 August 2025), 66% of UK adults have no will or an out-of-date one.

Writing a will is one way to set out who you’d like to benefit from your estate, which might include family, friends, and charities. This can ensure your home goes to your intended beneficiary.

Once you’ve written a will, don’t simply forget about it. It’s often a good idea to review your will every five years and after major life events, such as getting married or the arrival of a new grandchild, which may change your wishes.

2. Identify whether your estate could be liable for Inheritance Tax

While only around 1 in 20 estates in the UK are liable for Inheritance Tax (IHT), the thresholds are frozen, and the number is expected to rise.

In 2026/27, the nil-rate band is £325,000. If the total value of your estate is below this threshold, no IHT will be due. That figure may seem large, but it can be easier than you think to exceed it. Indeed, the value of your property alone could take up a significant portion of that allowance.

According to the Halifax House Price Index (6 March 2026), in February 2026, the average home in the UK was worth more than £300,000. As house prices have historically risen, the value of your estate could be higher than the nil-rate band without you realising.

The good news is that there are often steps you can take to reduce a potential IHT bill. For example, if you leave your main home to children or grandchildren, you could make use of the residence nil-rate band, which is £175,000 in 2026/27. This may effectively increase how much you can leave behind for loved ones before IHT is due.

3. Understand if you could use property wealth later in life

Finally, your estate plan isn’t only about how to pass on assets after you pass away, but it could also consider your long-term security.

For example, you might assess whether you are at risk of running out of money later in life, or how you’d pay for care costs if you need support. While it can be difficult to think about these challenges, having a plan in place could offer you peace of mind.

In some estate plans, your property might be a valuable asset for your future security. For example, you might consider how you could unlock property wealth to fund expenses later in life. As your home is often one of your largest assets, assessing the impact of downsizing or using equity release could help you consider all of your options.

Please get in touch

We could help you understand your estate and, where appropriate, refer you to a specialist adviser.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate estate planning, will writing, or tax planning.

Equity release will reduce the value of your estate and can affect your eligibility for means-tested benefits.

Any links will direct to a third-party website and [firm name] is not responsible for the accuracy of the information contained within linked sites.

Approved by Best Practice IFA Group Limited on 07/04/2026.

The post 3 practical reasons homeowners should make an estate plan appeared first on Bluecoat Wealth Management.

At the end of February 2026, the US and Israel launched strikes on Iran, which have further escalated. The uncertainty caused by the war has affected market confidence, leading to falling prices.

The Middle East is a large exporter of oil, and the war has resulted in prices rising, which is likely to affect businesses and consumers around the world. In addition, the Strait of Hormuz, an important waterway for trade, has been affected by the conflict, which may harm international supply chains.

These external factors may be affecting the value of your investments.

Market volatility refers to changes in the value of assets

In simple terms, market volatility refers to the value of assets changing. When markets are experiencing greater volatility, prices will rise or fall more sharply than usual. Volatility can be affected by many factors, such as geopolitical tensions, economic news, investor sentiment, and interest rates.

While volatility can seem concerning and unusual, it’s a normal part of investing. Indeed, even over the last 20 years, investors have experienced many periods of high volatility, including during the 2008 financial crisis and the Covid-19 pandemic.

If you look at the performance of market indices, you’ll see they are not straight lines. Prices naturally fluctuate, and there will be points where they shift sharply. While performance cannot be guaranteed, markets have historically recovered from dips over a long-term time frame.

In many cases, staying the course, rather than reacting to market movements, is the best course of action. However, high levels of volatility may trigger some investors to act in a way that doesn’t align with their long-term strategy.

Here are two types of investor behaviour to be mindful of during volatility.

1. Panic selling

When you’re worried about losing money, you might feel as though you need to react. So, investors might be tempted to panic sell portions of their portfolio amid market volatility. As mentioned above, markets have recovered from downturns in the past, and by panic selling, investors could turn paper losses into real ones.

There might be times when selling assets and adjusting your strategy is appropriate. However, these decisions shouldn’t be driven by emotions, like panic. Instead, assessing your personal goals and circumstances could help identify where you might make changes.

2. Following the crowd

When things seem uncertain, it can feel comforting to do what other people are doing. This can lead to an investor mentality of following the crowd. It might feel comforting, but it could also lead to inappropriate decisions.

While an investor might make a decision that’s right for them, it could be inappropriate for you because you have very different circumstances or goals.

So, if you feel tempted to alter your investments, it may be worthwhile assessing what’s driving the decision. You might be influenced by the actions of someone you know or by reading news articles that suggest other investors are reacting to market volatility.

We can answer your investment questions

If you have questions about your investment portfolio and how the current situation might affect you, we can help. Please get in touch to speak to one of our team.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

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.

Approved by Best Practice IFA Group Limited on 07/04/2026.

The post What past market volatility has taught us about investor behaviour appeared first on Bluecoat Wealth Management.