The five-year retirement runway
Fidelity's checklist for the five years before retirement covers the important decisions clients often leave too late — how to reassess your investment strategy as the horizon shortens, when to think about de-risking your portfolio, and whether to draw down, annuitise, or mix both. The State Pension is a bigger part of the picture than many people expect, so factor it in properly when you're modelling required income.
The core message: the five-year mark is when abstract retirement plans need to turn into concrete decisions about how you'll actually take an income. If you haven't had that conversation with your adviser recently, now's the moment.
Original commentary by Fidelity, published in the 2plan Wealth Management Newsletter, Edition 47 (May 2025). Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028).Limitless gifting — the 'normal expenditure out of income' exemption
The rules on gifting from surplus income are one of the most under-used parts of IHT planning. Quilter walks through the three conditions: gifts must form part of your normal spending pattern (regular rather than one-off), come from income rather than capital, and not reduce your standard of living. Get all three right, and there's no cap on how much you can gift IHT-free.
Documentation matters — HMRC will look for evidence of the pattern, the source of funds, and that your lifestyle hasn't been compromised. Get your adviser involved before you start, not after.
Original commentary by Quilter, published in the 2plan Wealth Management Newsletter, Edition 47 (May 2025). Based on Quilter's understanding of HMRC tax practice as at February 2025 — tax treatment varies according to individual circumstances and is subject to change.Strategic asset allocation — Omnis reduces UK exposure
Omnis makes the case for reducing UK-specific exposure in favour of a more global portfolio. Specific changes: they reduced UK equities by 25% in 2024 and further in 2025 in favour of global equities, and also cut UK bonds (both government and corporate) in favour of global bonds. The rationale is single-country-risk reduction with minimal impact on long-term risk and return projections.
It's a useful reminder that even a broadly diversified UK portfolio isn't automatically diversified — and that geographical concentration risk deserves the same scrutiny as sector or single-stock risk.
Original commentary by Omnis Investments Ltd, published in the 2plan Wealth Management Newsletter, Edition 47 (May 2025). Data sourced from J.P. Morgan Asset Management & Omnis Investments, February 2025. Past performance is not a guide to future returns.Are you your own worst enemy?
Parmenion tackles investor psychology — the well-documented tendency to react emotionally to market volatility and sell at exactly the wrong moment. The tactical point: history shows the biggest gains often follow the sharpest falls, so investors who cash out at the bottom typically miss the recovery entirely.
The strategic point: a professional adviser's most useful role is often as an emotional buffer between you and the news cycle — someone whose job is to remind you what your plan says when markets are testing your resolve.
Original commentary by Parmenion Capital Partners, published in the 2plan Wealth Management Newsletter, Edition 47 (May 2025).Guaranteed income in retirement — modern annuities
Just's piece pushes back on the outdated stereotype of annuities as inflexible, low-value products. Modern annuities offer meaningful personalisation — including death benefits for beneficiaries, joint-life options, inflation linking, and enhanced rates for medical conditions. They're worth another look for anyone who wants a floor of guaranteed income covering essential expenses.
The wider framing Just uses is the 'known unknowns' of modern retirement — how long you'll live, what markets will do, and what your health will require. A blended approach that pairs guaranteed income for essentials with flexible drawdown for discretionary spending addresses all three.
Original commentary by Just Retirement, published in the 2plan Wealth Management Newsletter, Edition 47 (May 2025).Support for when you need it most — vulnerable clients
2plan's piece explains the FCA vulnerable-client framework in practical terms. Vulnerability isn't a fixed label — it can be temporary (bereavement, illness, divorce), physical (hearing, sight, mobility), or situational (a change in circumstances, or a difficult decision to make). If you feel any form of vulnerability applies to you, however small, please raise it with your adviser.
Practical support includes flexible meeting arrangements, communication in your preferred format, and — importantly — the option to have a trusted friend or family member present at meetings. There's no downside to raising it.
Original commentary by 2plan Wealth Management Ltd, Edition 47 (May 2025).Want the full detail?
The individual articles referenced above appear in full in the PDF version of the newsletter, along with charts, further examples, and adviser commentary. If any of the above prompts a question about your own circumstances, get in touch.