As many of our clients know, we send out occasional updates whenever there are significant events. We know there are times when our clients like to be updated and when they want some fundamental questions answering: ‘what’s happening, and what does it mean for my savings and investments?’

As you will see from the title, this one is on Brexit. It has been, by some distance, the most difficult update we have ever written. We are starting it on Thursday morning, September 12^th and have no doubt at all that by the time it ‘goes to press’ it will have been revised several times as events change. It is not so much hitting a moving target as hitting several moving targets. In the dark…

Nevertheless, we appreciate that our clients may have genuine concerns and it is our job to address those concerns. So let us try and answer the important questions: what has happened, what is likely to happen and what will it mean for your savings and investments?

The History

On the 23^rd June 2016 – approximately 1,180 days ago – the UK voted to leave the European Union. The margin was 52% to 48% and, after David Cameron’s resignation, Theresa May became Prime Minister and famously declared that “Brexit means Brexit.”

Countless trips to Brussels and three failed attempts to get her Withdrawal Agreement through the Commons later, Theresa May stood down and Boris Johnson became Prime Minister on July 24^th this year. Johnson has repeatedly said that the UK will leave the EU, “do or die,” on October 31^st – the latest date agreed with the EU after several delays to the original leaving date of March 29^th.

So far, Boris Johnson’s Premiership has been beset by problems. He has lost his parliamentary majority following the withdrawal of the Conservative whip from 21 rebel MPs, and been defeated several times in the Commons. There, MPs have passed a bill – dubbed by Johnson the ‘Surrender Bill’ – to take a ‘no deal’ Brexit off the table. Johnson and his chief of staff, the controversial Dominic Cummings, seem unworried by this and continue to insist that leaving the EU without a deal remains a possibility.

Meanwhile, the Prime Minister has prorogued (shut down) Parliament in readiness for an October Queen’s Speech. This decision was challenged in the courts last week and the Scottish Court of Sessions has declared his prorogation of Parliament illegal, although this will be tested in the UK Supreme Court in the coming week.

To describe the current situation as chaotic is one of the year’s great understatements. Neither did it become any clearer over the weekend as David Cameron – albeit with a book to sell – tore into Johnson and Michael Gove, and the Liberal Democrats promised that if they won an election they would simply ignore the Referendum result and revoke Article 50.

So – with a little over 40 days to go until the UK is scheduled to leave the EU – let us try and pick our way through the chaos and answer those questions we think our clients would like answering.

Is the UK likely to leave the EU on October 31^st?

In the Conservative leadership campaign, Boris Johnson consistently stressed that the UK would leave the EU on October 31^st. Despite parliament voting to take the option of no deal off the table and also passing a bill requiring that he ask the EU to extend the date, he remains adamant that he will not seek an extension. “I would rather be dead in a ditch,” has been his much-quoted response.

This morning (Monday) sees Boris Johnson fly off for a working lunch with European Commission President Jean-Claude Juncker, with both the Telegraph and the Express reporting that the PM is ‘confident he is closing on a deal.’ He is also – according to the BBC – continuing to rule out an extension past October 31^st.

At first glance, this seems an impossible circle to square: even if Johnson were to do a deal with the EU, could he get it past parliament, where so many MPs are opposed not just to ‘no deal’ but to Brexit itself. And could he satisfy the ‘Spartans’ in his own party? There are supposedly 21 right-wing MPs so fiercely opposed to any deal that he risks losing MPs from both wings of the Conservative party.

The most likely outcome in our view is that the Prime Minister will bring a deal back to parliament. This will be the result of serious horse-trading and late night negotiations at the European Council meeting on 17-18^th October. Bringing it back to parliament will result in more of the same – by which time the current provisions are that the PM (or possibly someone else mandated by parliament) must ask the EU for an extension.

Are we likely to have a General Election?

Boris Johnson, having stood on the steps of Downing Street and declared that ‘the last thing anyone wants is a General Election,’ would like a General Election. Jeremy Corbyn, having demanded one all year, desperately does not want one.

The reason is the same in both cases: all the polls currently suggest that the Conservatives would win and that Labour would lose a lot of seats – especially if the Conservatives entered into an electoral pact with The Brexit Party (TBP).

Last week, parliament voted against holding a General Election – and under the Fixed Term Parliament Act the next one is not due until 2022. However, the odds quoted by the bookmakers and betting exchanges currently suggest that we are likely to have an Election this year, in either November or December. That would indicate a deal with the EU, a small extension to Brexit and a hopeful Boris Johnson going to the polls a few weeks before Christmas, with any potential deal with TBP very much depending on the terms on which the UK left the EU.

Is Parliament likely to be recalled?

This is perhaps an easier question to answer: almost certainly not. The Labour Party Conference begins on September 21^st, the Conservative Conference eight days later and the Queen’s Speech – opening the next parliamentary session – is scheduled for Monday 14^th October. Having prorogued parliament, the Prime Minister will see little need to recall it and face another barrage of ‘unhelpful’ votes. So over the next three to four weeks, he will continue to shuttle backwards and forwards to Europe, hope that he can hold his own party together – and wait to see if the Machiavellian Dominic Cummings pulls a procedural rabbit out of the hat should negotiations with Europe break down.

How is the UK economy performing while all this is going on?

It is generally felt that the possibility of a no deal Brexit is ‘priced into’ the UK stock market. As we are writing, the FTSE 100 index of leading shares is standing at 7,348 having started the year at 6,728 and ended August at 7,207.

Very clearly, there are plenty of things that influence the stock market other than the Brexit negotiations: the US/China trade dispute is an obvious example. But the FTSE is clearly not in freefall: a rise of 9% since the beginning of the year represents a more than acceptable performance.

The pound is currently trading at $1.25 – which is down slightly on the $1.27 at which it started the year. Against the euro it is trading at €1.13, having risen over the last month as the European Central Bank has re-started quantitative easing to try and boost the eurozone economy.

The UK economy’s glass is half full or half-empty, depending on how you choose to look at it. Unemployment is down to its lowest level for 45 years, there are 300,000 more people in work than a year ago and wage growth is strong. Against that, the high street continues to be in trouble, confidence is low in the service sector and factory output has fallen at its fastest rate since 2012.

So there is good news and bad news – but the UK is doing a good deal better than many of its major competitors.

What will all the events – and the likely outcomes – mean for my savings & investments?

Traditionally, the one thing stock markets value above all else is certainty. The one thing Brexit definitely does not deliver is certainty. But, as we have seen above, the UK stock market is having a good year: around the world other major markets are also up. Germany and the US were up by 13% to the end of August, the Chinese market by 16%.

So the reality is at odds with the often gloomy news headlines. As George Osborne was fond of remarking when he presented his Budgets, external factors have as much influence on the UK economy as events at home.

Saving and investment – as we repeatedly stress – is a long-term commitment, and Brexit does now appear to be nearing the end-game. There is plenty to be optimistic about in the UK and, in or out of the European Union, that will not change.

Neither will our commitment to our clients: rest assured that whatever happens, we will be here to answer your questions and keep you updated on current events that may affect you, your savings and your investments.

As Harold Macmillan famously remarked, “Events, dear boy, events.” There will always be ‘events’ for us all to deal with – even when Brexit is a distant memory.

With autumn pushing the heat of summer south across the equator, it’s time to strap on your wellies and get ready to kick through piles of fiery leaves. So to celebrate the change of season, here’s our list of places you should visit to make the most of the stunning autumn colours. 

Isle of Lewis, Hebrides

Autumn arrives early in the Outer Hebrides. The trees and fauna on the Isle of Lewis take on a fiery glow into September and October. The 270 acres of woods surrounding Lews Castle becomes something to behold. There are a whole host of walks for an intrepid hiker to choose from. 

Loch Lomond, West Dunbartonshire

The largest inland stretch of water in the UK by surface area, Loch Lomond is the centrepiece of Loch Lomond & The Trossachs National Park. The second bonus from journeying to the area comes from the vast wooded glens that make up Great Trossachs National Nature Reserve. The Millennium Forest Trail is not a walk that should be missed, providing brilliant views of the loch and the surrounding woodland.    

Forest of Dean, Gloucestershire 

Ancient woodlands steeped in history and cultural heritage stemming back to the Iron Ages. The forest was then used by Anglo-Saxon kings as a royal hunting ground. There’s a huge range of activities to take part in during the autumn months, ranging from exhilarating zip wires to biking and sculpture trails. You can find out more here. 

New Forest, Hampshire

The treescapes of Wiltshire and Hampshire have been a place of autumnal brilliance for centuries. There are over 219 square miles of protected space, hosting oaks up to 800 years old and elderly beeches of 400 years or more. The New Forest Walking Festival takes place from the 13th of October until the 28th and is just one of the many outdoor pursuits you can get involved with during a visit. 

Rydal, Cumbria

Rydal is an area full of nostalgic ambience echoed in its literary history. The area has been the subject of many poems and stories and for almost 40 years Rydal Mount was home to the famous poet, William Wordsworth. Dora’s field is one of the bittersweet sights of the area, a field filled with hundred of daffodils between Rydal Mount and the main road, planted by Wordsworth following the death of his daughter. 

In the autumn, expect stunning misty mornings across the water that will make you feel like you’ve stepped into a poem. Rydal acts as a great jumping off point for exploring the rest of the Lake District and is worth a visit any time of year, let alone in the autumn. 

Blenheim Palace, Oxfordshire

The 2000 acre park that surrounds the Baroque palace holds some of the most beautiful landscaped gardens in the country. In autumn, Blenheim hosts a series of seasonal events that you can find out more about here. There is a fantastic maze on site, buggy rides, fishing and even outdoor film screenings and concerts. The palace also plays host to art exhibitions and has hosted works by Andy Warhol alongside its own collection of historic British art. 

Guernsey, Channel Islands

The second largest Channel Island is a naturist’s wonderland. Covered in leafy enclaves and coastal rock faces to die for, there’s something for every nature lover out there. The Candie Gardens in St Peter Port is a must visit if you visit the island. There’s also a walking festival from the 15th until the 30th of September for those of you who love a good wander through beautiful coastal scenery. 

Stourhead, Wiltshire

Stourhead is a National Trust site, known for its stunning display of autumn colours. The house itself is a splendid visit, with its majestic stately rooms full of exquisite furnishings and historic art. The range of exotic trees will surely delight any visitors, especially when the North American maples turn scarlet red over the course of the season. 

There’s even a small cottage nestled amongst the trees in the garden where you can warm yourself by the fire with a nice cup of tea. 

Changes to  IR35 legislation are coming into effect in April 2020. IR35 legislation is designed to target “disguised employment” between firms and freelancers. This is where a company hires freelancers and contractors to undertake work, yet they are effectively employees of the company. It also affects freelancers who operate as sole traders or limited companies. The change in 2020 shifts the onus onto employers in relation to proving the contractor’s self-employed status. 

Who will be hit the most by the changes? 

Many industries rely heavily on freelance workers. The trade off is simple – the more freelancers operating in a sector, the heavier the effect. In a document published in 2018, HMRC predicted that 90% of freelancers who fall within IR35 are not complying with the existing IR35 rules. It’s clear that from April 2020, private sector businesses will need to do more to comply with the legislation.

What are the critics saying?

The general view is that the reforms will increase burdens and costs on businesses during a time of uncertainty and change, whilst also having to comply with many other acts of legislation that are evolving in all areas. 

The fact that HMRC have lost a number of tax tribunal cases surrounding IR35 also illustrates the point that there is a possibility for different conclusions to be reached on the same facts and for tribunals to even take opposing views against HMRC. 

So, as we can see, the influences of IR35 are not quite as definitive as HMRC would like. 

How can a firm protect themselves? 

HMRC has a tool named CEST that determines whether an individual should be classed as employed or self-employed for tax purposes although concerns have been raised around the tool due to its rate of accuracy. HMRC says that the tool arrives to a conclusion 85% of the time, leaving 15% of cases pending further investigation. 

There has even been debate between HMRC and professionals around the validity of those percentages. This is further highlighted by a number of high profile cases involving television hosts and broadcasters that have gone against HMRC. 

Here are a few extra tips to make sure your firm is compliant:

• Develop a robust process for recording the use of freelancers centrally. 
• Determine how those contracts are being carried out. 
• Use CEST as a starting point. CEST can be very black and white, however, so it’s best to also develop a back-up process. 
• Identify who IR35 will apply to and make sure they’re trained to comply. 
• Monitor each freelancer’s status and re-run status determinations periodically (every 6 months is a good rule of thumb). 
• Ensure that there is an appropriately drafted contract for each engagement which reflects the working arrangements and status determination. This will give the business the right to deduct PAYE and employer NICs from the fees if required. 
• Decide which freelancers are critical to the business and for whom the business is prepared to pay extra due to IR35. 
• Consider looking into business processes to determine if any changes are required. 

With over 1.4 million British freelancers working across all sectors, IR35 is set to affect many working relationships all over the country. Making sure your firm is compliant with the changing legislation is critical to avoiding any HMRC investigations.

A new report by Scottish Widows (SW) has found that savings habits among younger people are rather lacking when compared with older generations. 

14% of people aged 20-29 are not saving any money, whereas 20% are saving between 0-6% of their wages and 26% are saving between 6-12%. That leaves only 40% of people between the ages of 20 and 29 making what SW deems to be ‘adequate’ savings (12% and upwards). 

The figures differ for those over 30 where 59% of savers are saving adequately. 

Scottish Widows outlines that the central problem with savings in the UK is that people simply aren’t saving enough. This could be attributed to the decline in defined benefit pension schemes and wider economic challenges. Though progress has been made, with record highs in the adequate savings category, according to SW, this is still not enough. 

The lower level of savings among younger people is likely to be a reflection of differences in priorities. SW’s study found that 45% of younger savers (under 30s), the highest of any age group, are saving towards medium-term goals such as buying a house. 27% were found to be saving for the long term and 28% were saving for rainy days. 

SW notes that the savings gap for young people “is perhaps unsurprising but nonetheless worrying.” Those under 30 are at a time where long-term saving can be hardest, yet investment growth can be advantageous. SW outlines how younger people are missing out on “the power of compound growth.“ 

They later go on to present four interlocking issues that have led to this general lack of savings made by younger generations:

• Most people remain disengaged with long-term savings – 38% of people are not aware how much they are saving 
• Financial pressures – 28% of individuals earning between £10,000 – £20,000 say they’re not saving at all
• Self-employed individuals are being left behind – 41% of the self-employed aren’t saving at all
• Home ownership is a struggle for young people – 56% of 20-29 year olds say they have not saved for a deposit

Scottish Widows then set out a number of reforms that would benefit savers: 

1. Raise pension contribution rates – a new level of 15% to give people a chance to maintain their quality of life during retirement
2. More flexibility between pensions and property – including the ability to use some retirement savings to help with the purchase of their first property
3. Create better education and guidance – which includes information on the role of property and pensions in retirement
4. Provide a hardship facility – allowing some savings to be used to avoid problem debt
5. Ensure the self-employed have access to similar benefits as those in employment

Though there are marked improvements from last year’s report, it seems there is still a long way to go in terms of saving habits in younger individuals. As suggested above, there may even be a requirement for governmental reform in order to achieve the goals that Scottish Widows have set out.

For advice on how to develop savings plans to stand the test of time, don’t hesitate to get in touch.  

The desire to collect tangible objects has been an inherent part of life since we gave up our nomadic lifestyle thousands of years ago. Back in the 13th century, wealthier families began to acquire what was known as a “cabinet of curiosities.” It was a place to house their trinkets, curios and other museum worthy items. Such cabinets became immensely popular during the Victorian era as a way to display treasures acquired during travel to foreign lands.

In more recent times, some individuals’ personal collections have grown into all kinds of forms and sizes. Ranging from the humble stamp collection up to special garages housing hundreds of classic cars. A whole market has grown out of the buying and selling of various collectibles, with new collectibles arising all over the place. Which then begs the question, ‘what collectibles make for a lucrative hobby?’

Stamps

The classic collectible, rare stamps are among the super-rich’s most popular collectibles due to their rarity, ease of transport and storage. According to Richard Lehmann of Forbes, the higher-end market for stamps is growing rapidly, and he states that “the more expensive a stamp is, the more rapidly it tends to appreciate.”

Coins

Though the popularity of coin collections has declined since the 1970s, it remains one of the most active markets, so active in fact that the international numismatic community (coin collectors) assemble each year for their own award’s ceremony – an annual dinner gala organised by the American Numismatic Society.

In the United States there are at least 5,000 coin companies in operation, with an annual market valued at $3 billion. Value tends to increase considerably over time. For example, the 1917 George V sovereign London mint coin’s value increased by 191,716% since its launch. The most valuable coin in the U.K, the 1933 George V penny, now sits at a staggering estimated value of £72,000!

Contemporary Art

Investing in up-and-coming artists now could be profitable at a later date. What may be a simple piece of street art for a developing artist could go on to sell for vast amounts at an auction once their popularity grows. Contemporary art is therefore one of the more accessible markets out there. One of the most expensive pieces of contemporary art, Jeff Koons’ Balloon Dog (Orange), was sold in 2013 for $58.4 million, however there are other items by the same artist that sold for mere hundreds during the early stages of his career.

Whiskey

The popularity of whiskey as a collectible has gained popularity whilst interest rates are falling. The Rare Whisky Icon100 index has seen an increase of 497.72% since it began in 2008. Other markets including vintage and Japanese whiskeys have also seen marked increases in more recent years. Though fine wines are the classic alcoholic collectible, whiskey seems to have become a close second in terms of popularity. Fun fact: a bottle of 1926 Macallan, hand painted by Michael Dillion, sold for $1.5 million in 2018.

Classic and Exotic Cars

Mclarens, Rolls Royces and Chevrolet Corvettes: classic cars are certainly one of the most lucrative collectibles, if you have the space to store them. According to the Knight Frank 2017 Wealth Report, classic cars provided a 10-year return of 338%, the highest investment return of all collectibles during the period. The most expensive car ever sold at auction was sold in 2018; the 1962 Ferrari 250 GTO was snapped up for the monumental price of $48.4 million, showing that the market is very much alive and well.

As with many collectibles, developing your knowledge through research is key when choosing what you’ll find the most rewarding. Passion is a vital motivator, as it’s doubtful that collectibles should form part of a core investment portfolio and therefore it’s not recommended to develop a collection that you’re not interested in. In the end, it’s all about interest over value.

We’ve come a long way from the days of curiosity cabinets and as time goes on, more and more interesting collectibles will no longer feature in the collections of tomorrow.

As we venture further into this new digital age, the security of your personal data grows more and more important. That’s why, for this article, we’ve decided to delve into the world of online security. Below you’ll find a series of strategies that we recommend you employ to protect your presence online… 

Keep software up to date

Make sure to keep installing software updates for your devices and programs. You can turn on automatic updates for many devices and applications for those of you with busy schedules. Staying up to date with security updates helps to protect your data from the newest digital threats out there. 

Avoid phishing scams

Phishing is a fraudulent attempt to obtain your sensitive data such as usernames, passwords or credit card information. They can be carried out by phone, text or through social media – but, most commonly, email. As a rule of thumb, financial institutions or governmental agencies will not ask for your personal passwords or credit card information via communications. Be suspicious of any official looking email, message or phone call that asks for personal or financial information.  

Practice good password management

Lots of us have too many passwords to manage, so it’s easy to cut corners like reusing the same password. We recommend that you try to have a different password for each account you have online and if you cannot remember them, it may be best to download some password management software or to keep a hard copy of them somewhere secure. 

Here are general rules you’ll want to follow when it comes to passwords: 

• Use long passwords – 20 or more characters is recommended. 
• Use a strong mix of characters, numbers, punctuation marks and letters. 
• Don’t share your passwords with anyone. 
• Update your passwords periodically, at least once every six months. 

Use mobile devices safely

Mobile devices have become an integral part of our lives and, more often than not, we use them regularly to communicate and stay up to date with our business. A few tips for securing your mobile device include: 

• Only install apps from trusted sources 
• Keep your device’s operating system updated
• Lock your device with a PIN or password 
• Never leave it unprotected in public

Be careful what you click

Avoid visiting unfamiliar websites or downloading software from untrusted sources. These sites often host malware that will automatically, and often subtly, compromise your computer. 

If attachments or links in an email are unexpected or suspicious for any reason, don’t click. 

Install anti virus software

Only install an antivirus program from a known or trusted source and make sure to keep it up to date. There are plenty of anti-virus programs out there to choose from, so it’s best to do some research in order to choose one that’s right for you. 

Back up, back up and back up again

Back up your data regularly – if you are a victim of a security incident, sometimes the only way to repair your computer is to erase and reinstall the system. Many cloud based programmes will do this automatically but if you store everything on a local device, regular back-ups are very important.

Some additional tips 

• Use public wireless hot-spots wisely – make sure to connect to trusted networks and not share any personal data 
• Be wary of what you plug into your computer – flash drives and mobile devices sometimes may contain malware
• Be careful of what you share on social media websites 
• Monitor your accounts for suspicious activity 
• Use a firewall – Mac and Windows computers have basic firewalls installed as part of their operating system that can help to protect your computer from external attacks 
• Bank or shop online only on trusted devices and networks and log out of these websites when you’ve completed your transactions. 

So there you have it. A quick rundown of how to stay safe online. We hope that these tips helped. For more information on keeping your money safe, both online and in the long run, feel free to get in contact. 

Food is one of the greatest and most diverse pleasures that life has to offer – it can be simple, complex or anything in between. But a dining experience is another thing entirely. And there’s a whole range of different of dining experiences available across the UK.

Dine on the water 

If the gentle lap of waves against the sides of a boat fits into your idyllic dining experience, you’re in luck. All over the country there are companies that offer river cruises where you can relax and enjoy a good meal while experiencing the many beautiful sights the UK has to offer. Canal Boat Cruises offer a series of countryside river cruises that are worth experiencing, whereas companies such as Bateaux London deliver fine dining sightseeing cruises in the capital for the metropolitan diner in you. 

Dine in the sky 

For those of you who’d like a more hair-raising dining experience, London in the Sky might be for you. Hanging 100ft above South Bank, 22 diners can enjoy breakfast, lunch, dinner and cocktails prepared by a team standing at the centre of the table. Offering an indulgent menu of food and/or drinks, London in the Sky is a unique dining experience that’s worth booking if you’re planning to visit the city. 

Dine on the rails

Steam trains have been a part of British culture for over a century and there’s a whole host of companies that offer nostalgic trips through the countryside, complete with an excellent meal or afternoon tea. Into the Blue have a great selection of luxury and steam train dining experience trips that appeal to anyone who loves travel and food. 

Dine in the dark

Going from seeing sights to seeing nothing at all, the next entry on our list is a sensory experience that’s not to be missed. Dans Le Noir Londonoffers a dining experience so innovative that it won the British Restaurant Awards Best Culinary Experience Award of 2017. Diners are hosted and served by visually impaired waiters with the aim of generating a very human exchange between staff and diners. It’s truly a revolutionary take on dining and is a string worth adding to any foodie’s bow. 

Dine on the roads

For those of you who prefer your dining experiences on tarmac, rather than river or rail, Bustronome offers a gourmet sightseeing tour of London’s famous landmarks. You can travel in style, while enjoying foodie treats on the upper floor of a glass topped double-decker. The menus are often inspired by the changing seasons and are worth checking out regardless!

Afternoon tea at the Ritz

How could we not talk about dining experiences without mentioning tea at the Ritz? Treating yourself to one of the world’s most decadent afternoon tea services is something we have to recommend. With 18 different choices of loose-leaf tea and a large mixture of sandwiches and cakes, it’s a perfect way to enhance any visit to the capital. 

So there you have it, a list of experiences to add to your bucket list. Whether you’re looking for fine dining with a twist or a chance to be a tourist with your tea, there’s something here for everyone. Can you think of other dining experiences that should be added to this list? Feel free to get in contact and let us know. 

Savers are set to deposit up to £4bn into ISAs in the week leading up to the new tax year, according to the Yorkshire Building Society. Their figures revealed that £4.3bn was deposited into ISAs in the final week of the 2017/18 financial year, and it is predicting similar activity to happen this year.

ISAs were launched two decades ago as a tax-free alternative to traditional savings accounts which failed to offer an interest rate that competed with the rate of inflation. At its advent, the total tax-free allowance was £7,000, but at least £4,000 had to be invested in funds, meaning the maximum you could save in a cash ISA was £3,000. Since then, the ISA portfolio has grown to include Help to Buy ISAs, Innovative ISAs and Lifetime ISAs. In addition to this, the tax-free saving allowance has increased, and today, savers are allowed to deposit up to £20,000 into their ISAs each tax year, tax-free.

That means no interest tax, no income tax and no capital gains tax. Cash ISAs also offer access to funds as easily as regular savings accounts and are an excellent choice when it comes to choosing a default savings account.

Take-up appears to be declining amongst younger generations, though, as the total number of adults saving into an ISA fell from 11.1m in 2016/17 to 10.8m last year. With so many opportunities available to young people these days, perhaps it shouldn’t be so surprising that saving into an ISA is losing its appeal?

How can ISAs evolve to maintain appeal?

Clues may lie within the rise of Open Banking, as digital money apps have empowered many people to manage their money more actively.

These apps play a huge role, although it could be suggested that financial education should begin at a very young age. Encouraging young people to invest for the long term requires knowledge of the difference between investment and saving.

Einstein famously said that: “The definition of genius is taking the complex and making it simple,” and it would be unwise to underestimate the importance of simplifying language. The financial sector is awash with acronyms and savings jargon, creating potentially confusing barriers to entry for savers.

Some financial advisers have called for a more holistic approach and to examine how other industries are driving long-term behaviour change. Think of how the music industry changed the way we purchase and listen to music with digital distribution and online streaming platforms such as Spotify.

Ross Duncton, head of Direct at BMO Global Asset Management, says that a ‘revolution is due for the savings and investment industry – with ISAs centre stage.’ After all, if savings options were to remain the same for the next twenty years, the steady decline of ISA uptake will only continue.

You’re almost spoilt for choice when it comes to all the cultural experiences on offer in Europe. Compiling a definitive list is almost impossible, so instead we’ve settled for a few of our favourites. The following museums contain masterpieces by the likes of Picasso, Pollock and Van Gogh and are well worth a visit…

Guggenheim Bilbao – Spain

Labelled as one of the ‘12 Treasures of Spain’ in 2007, the iconic conch-shell shaped museum, designed by Frank Lloyd Wright, has been a hub for contemporary art lovers since its grand opening in 1959. Other than being a work of art itself, the Guggenheim houses an ever-evolving collection of impressionist, post-impressionist, modern and contemporary art, including permanent pieces by Vasily Kandinsky and Piet Mondrian.

Tate Modern – UK

This gallery is a little closer to home, and holds the esteemed title of being the most visited modern art gallery in Europe. Holding an international reputation as striking as its building, the Tate Modern holds permanent collections designed by admired artists such as Herzog & de Meuron, alongside curated collections of contemporary art greats such as Damien Hirst and Roy Lichenstein.

A walk around this converted power station is like travelling through the history of modern art from the 20th century and beyond.

Centre Pompidou – France

Housed inside a captivating building designed by Renzo Piano and Richard Rogers, the Pompidou is home to Europe’s largest modern art collection. Since it shares Paris with the Louvre, it can often compete for your time when visiting the city, however, the collection housed inside shows it can go toe-to-toe with any other European museum. Extensive collections of Picasso, Matisse, Chagall and Kandinsky are rotated every six months, alongside exhibitions which, in recent years, have included the likes of Freud, Dali and Richter.

And to top it all off, the Pompidou offers an amazing outdoor escalator, providing visitors with a unique and beautiful view of Paris.

Castello di Rivoli – Italy

The Castello di Rivoli is housed within a World Heritage Site, and the collection therein is as distinguished as the 17th century castle itself. Emphasising controversial modern figures of international art, the gallery is a fascinating look into the rogues of the artistic world. Containing paintings, sculptures and videos from artists such as Nan Goldin, Tracey Emin and Anselm Keifer, this gallery is one not to miss. As an added bonus, it also contains the world famous restaurant, Combal Zero, which offers food as revolutionary as the works within gallery.

Kröller-Müller Museum – The Netherlands

To top off our list, we’re heading over to the sleepy village of Otterlo in the Netherlands, where the collection is both indoors and outdoors. The indoor collection houses many of Van Gogh’s best-known works alongside other modern masters, such as Piet Mondrian. But the main attraction at the Kröller-Müller lies with its iconic outdoor sculpture park, featuring 160 works by world famous sculptors, including Jean Debuffet, Augustus Rodin and many more. The museum even offers bicycle hire, so you can peddle your way around the large garden in the glorious Dutch weather.

Once you reach 55, a whole spread of opportunities will open themselves up to you. One such bonus is the fact that you can finally access that hard-saved pension fund. Up to 25% of your savings can be taken tax-free, with the remaining 75% being subject to income tax. The payable amount depends on your total income for the year and your tax rate. This is known as drawdown tax. 

You’ll only have to pay tax if you decide to draw over the 25% threshold. In this case, any income you take will be added to the rest of your taxable income for that year, and will be taxed at 20% after you pass the personal threshold. Therefore, if you were to take out a large withdrawal pushing you into the £40,000 to £150,000 bracket, you could be taxed at 40%. 

Your pension provider is required to deduct any tax before a withdrawal is paid and it’s likely that when you take a taxable payment for the first time, you’ll be taxed using an emergency tax code (it may be worth speaking to your pension provider about how you will be taxed). 

How do you manage your pot? 

If you choose to stay within the 25% lump sum, more often than not you’ll move the rest into one or more funds that allow you to take a taxable income at times to suit you. It’s wise to choose funds that match your income objectives and your attitude to risk, as the income you receive might be adjusted periodically depending on how well your investments are doing. 

You can also move your pension pot gradually into income drawdown. The 25% bracket still applies to each amount you move across, so you can take a quarter of the amount tax-free and place the rest into drawdown. 

A way to make your retirement income more flexible is to invest in an annuity or another type of income product, such as a gilt or corporate bond, which usually offer guarantees about growth and income. 

However, it’s paramount that you carefully plan how much income you can afford to take under pension drawdown as you don’t want to run out of money. Factors such as living longer than expected, taking too much out too early and poor investment performance can potentially hinder your drawdown plans. 

That’s why it’s important to regularly review your investments. In fact, we would always recommend getting in contact with your financial adviser to help with this, as you want to be getting the most out of your pension pot and to avoid any unnecessary expenses or losses.