Life is full of change. From infancy to old age, we all face key events that need navigating, such as graduation, buying a first home, marriage (or committed partnership), children, starting a business, grandchildren and more.
Many of these are planned; others are not. Some are wonderful (e.g. the birth of a first child). Others, like divorce, can tear your world apart. All can bring challenges as well as opportunities, not just emotionally but also financially.
A financial plan cannot address the pain and loss felt in many key life events. However, it can alleviate and even take away the financial burden. In this article, our financial planners in our Lincoln office highlight some common key life events and how financial advice can help you.
It is increasingly difficult for young people to get onto the housing ladder. Many factors explain this, such as rising rents (constraining the ability to save), rising house prices outpacing wage growth and higher deposit requirements.
Earnings have risen by 112% since 2000, but property prices have risen by 240%. For many, getting a house feels impossible. Yet, with some careful financial planning, you could open up more options for yourself.
One idea is the Lifetime ISA. In 2025-26, you can contribute up to £4,000 per year and get a 25% “boost” from the UK government (up to £1,000). Over five years, making full use of this could result in a deposit worth £25,000 - setting aside any returns you make on the way.
Forming a long-term relationship raises lots of financial questions. Should you combine your bank accounts? Should you build up assets together (e.g. investments), or keep them separate?
If children come along, should you save or invest on their behalf? If so, when should you start, how much should you contribute and what kind of portfolio should they have?
A financial adviser can help you address these difficult and important questions with confidence, armed with up-to-date information. The average cost to raise a child in the UK is £260,000 for a couple in 2025, so it’s worth exploring a plan. Even if it saves a few thousand, it is worth it.
Parental leave, reduced working hours and childcare costs are just some of the areas to think about on this subject. All affect your household income, your mental health, your relationship and your wealth prospects (both individually and as a couple). An adviser can help guide you.
A recent study found that people aged 25-34 have typically worked an average of six roles by the time they leave this age bracket. Whilst this can be great for career progression, earnings growth and personal fulfilment, it also brings challenges.
For instance, if you start a new job, your employer can delay the auto enrolment process by up to three months. So, if you change jobs six times within a 10-year period, that’s potentially 18 months’ worth of pension contributions you could miss out on - potentially taking away £1,000s from your future pension due to missed compound interest.
There is also the issue of redundancy. Do you have a financial “safety net” ready if this should happen? A general starting point is to have 3-6 months’ worth of living costs in easy-access savings for these types of emergencies, but it may also be wise to explore other financial protection options with a financial adviser.
Many people receive windfalls during their lives - e.g. an inheritance or bonus. What is your plan for these events? It would be a shame to simply waste the money. Whilst some could be used for enjoyment, perhaps some/all of it could be used as a boost towards your financial goals - such as overpaying your mortgage, funding your pension or expanding your emergency fund.
Life is full of setbacks, even for “good” people who appear to do “everything right”. You cannot fully shield yourself from bad events, but you can prepare for different eventualities so you can withstand - or bounce back - from them.
The death of a loved one. A divorce. Failure of a business you’ve built. These can be highly stressful and disruptive, involving significant decision-making at a time when it is hardest to think clearly. You will thank yourself for having a plan ahead of time.
Having a plan for setbacks does not mean resigning yourself to their inevitability. Rather, it is an acknowledgement that life does not always work out as we want. When that happens, you will be in greater control - not just swept up by events.
In divorce, for instance, a planner can also help you navigate the value and options for pension sharing (often one of the largest assets in a settlement). In bereavement, they can guide you through probate, tax implications and restructured budgets for the new household reality.
With today’s longer average life expectancies, retirement could plausibly last 20, 30 years or more. Since you will likely not be relying on a salary, this requires careful preparation. The choices you make now (e.g. pension contributions) will have a big impact on your opportunities and lifestyle in later life.
Here, a financial adviser can be invaluable. They can guide you through the process of reviewing your pensions, savings and investments, ensuring they are positioned for sustainable withdrawals. They can ensure everything is done tax-efficiently and model different scenarios (e.g. phased retirement, downsizing etc.) so you can review all options with the best information.
Here at Castlegate, our advisers are here if you’d like to make sure you’re taking the right steps to safeguard your financial future. Please get in touch.
Pension investments can go down as well as up, and you may not get back the amount you originally invested. Access to pension funds is normally available from age 55 (rising to 57 in 2028), and any tax benefits depend on your individual circumstances and current HMRC rules, which are subject to change. Making retirement decisions without guidance carries risks. It is strongly recommended that individuals consult Pension Wise or seek regulated financial advice before making any decisions about their pension plans. This content is provided for information purposes only and does not constitute financial or investment advice.
Castlegate Financial Management Limited is registered in England No. 2077374. Registered Office: 8 Castlegate, Grantham, Lincolnshire. NG31 6SE. Authorised and Regulated by the Financial Conduct Authority. FCA No. 169777.
