In a noisy world, savers must resist the urge to panic

The Herald Scotland

10-05-2025

And safe to say there has been a lot of noise in recent times. So much, in fact, that it can feel like there is an atmosphere of impending panic hanging over everything and we're constantly on the brink of a financial catastrophe. One recent example of why making a knee-jerk decision about money is rarely a good idea happened late last year. Rumours swirled that the Government would scrap tax-free cash on pensions in the Autumn Statement. Spooked by the speculation, some savers began withdrawing money early.
But that change to pensions didn't materialise, meaning savers who took their pension cash early may have damaged their long-term money goals or incurred unnecessary charges.
The very recent Trump tariffs, which admittedly would have left anyone with an eye on global investment markets feeling dizzy, is another case in point.
In times of speculation, volatility, and misinformation, you will likely see a flurry of 'don't panic' messages or 'don't look at your pension now' stories in the media from investment experts and industry commentators.
While well intentioned, the cumulative effect of telling people not to do something so many times can often result in them doing exactly the opposite and leaving them more anxious and reactive.
While many people are willing to place their money in the hands of investment and advice professionals, there is a balance to be struck.
It's not enough for our industry to simply repeat reassurances. This risks coming across as dismissive, like telling people to 'calm down, dear'. Someone nearing retirement, for example, may have very real concerns about how falling markets affect their fund.
This is where great financial planners make a huge difference. The best of them understand the individual needs and circumstances of their clients, thanks to close and long-standing relationships built on trust. In uncertain times, they know when a more detailed conversation is needed, and what that conversation should cover.
Attention has been growing around the upcoming changes to pensions and inheritance tax (IHT). Pensions were previously excluded from someone's estate for IHT purposes but from April 2027 they will be brought into the IHT net for the first time.
People are right to be mindful of the potential impact on their pension. These changes will mean that many more of us could be pushed over the threshold for IHT, especially with rising house prices in many areas of the UK.
Before that familiar sense of panic starts to return, let's remember again that the new rules don't come in until April 2027. And, crucially, the important details of the legislation have still to be published before we can know the full implications of the changes.
Until then, the same key things about planning your estate and leaving a legacy for loved ones still continue to be true: the earlier you get a plan in place, the better. And if you're unsure about if and how you may be impacted by IHT, speak to a professional who will take the time to understand your individual needs and provide advice you can trust.
Jen Paice is chief executive of Aberdein Considine Wealth