Are you looking to start settling down, or have already begun building your family and career? Settling down is more than just getting married and buying your dream home - it comes with lots of responsibilities to consider too.

One of the biggest milestones in this life stage typically comes in the form of buying a house, especially for a growing family. Buying a house also means that you’ll need to start budgeting for house maintenance, utilities, and any unforeseen circumstances.

Building Family and Career

Why is life and income protection so important?

Protecting your income has never been more important in order to keep your family protected in case of any unexpected events, such as an untimely death, serious illness or temporary or permanent disability – with the likelihood of someone being unable to work significantly higher than unexpected death. This is arguably the most necessary form of protection for a young family, as the likelihood of someone not being able to work is significantly higher than someone dying.

Life protection should however also be considered at this stage, as families still need to consider the financial security of their loved ones should they unexpectedly pass away.

Our team of advisers is on hand to ensure that your family is completely protected, to put your mind at complete ease.

Should I be paying more into my pension?

At this stage in life, if you have the capacity to do so, you should be starting to build up your pension savings as your salary increases with age and experience.

A pension is the most tax-efficient way of building up capital for your future, and that of your family. You will receive tax relief as a result, and employers are, in most cases, legally obligated to pay into one too.

If you are a high-net worth individual or could potentially be in the future, inheritance tax (IHT) could become payable on your estate. With this in mind, pensions are by far the best way to mitigate IHT, as once set up, they are outside of your estate – meaning that they are not subject to any IHT.

If you have pension schemes with multiple companies after changing jobs, you may wish to think about consolidating your pensions to put them all in one place, which is a service that we’d be more than happy to assist you with.

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Do I need to continue to pay into my savings?

If you’re yet to purchase your first home, then it’s a great idea to put your hard earned savings into a Lifetime ISA (LISA), as the government will provide you with a 25% bonus of up to £1,000 per tax year.

If you have already bought your first home, then we’d look into a stocks and shares ISA, and if required, a General Investment Account (GIA) too. Up to £20,000 can be paid into an ISA per tax year, with any left over funds placed in the GIA – which can then be moved across to the ISA every tax year.

ISAs are recommended first, as they are exempt from Capital Gains Tax (CGT). General Investment Accounts are however subject to CGT if your invested money grows each year above your threshold, which is currently £6,000, being cut to £3,000 in April 2024.

Our team of financial advisers can help to provide guidance and support for each of these aspects within the family and career-building stage, as well as helping to tailor your investments to get the most out of your money.

We are always at the end of a call or email if you have any queries or concerns – just get in touch to find out more.

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