Financial Fears at Every Level: From Budgeting to Inheritance Planning

Money worries affect us all, regardless of income. While the nature of our worries may shift as wealth grows, 33% of UK adults suffer from daily financial anxieties, according to research. From rising living costs and stagnant wages to pension changes and tax reforms, economic pressure is affecting households at all levels.

To discover the UK’s biggest financial concerns, we analysed search data and reviewed our most popular queries. Read on to find out the UK’s top money worries and to gain our expert tips and advice.

Budgeting and Saving

Budgeting and saving are two of the most common financial concerns in the UK, likely due to rising living costs, inflation, and growing debt levels. Developing the habit of saving and budgeting is more important than ever for many. Although saving and budgeting may not be a huge concern for those who are financially stable, these habits remain crucial for maintaining and protecting wealth over time.

Below are some of the most common queries within this category

 

How do I budget?

This query gains around 1,300 monthly searches, showing that many want to budget but aren’t sure where to start. Whether you want to save, invest, or just have funds set aside for emergencies, budgeting is essential.

There are many ways to budget and save money, which is likely why there are also around 1,000 monthly searches for ‘best ways to save money.’

There isn’t a one-size-fits-all method when it comes to saving and budgeting, as it’s down to personal preference and situations. Below are some budgeting tips that might be helpful:

• Create a budget sheet: Start by working out any outgoings you have each month, then based on your remaining amount, set a weekly or monthly budget and put any excess into savings.
• Set specific goals: Try to have a set amount you want to save each week/month in mind. If you’re saving for something in particular, calculate a target for how much you’ll need to have within a specific timeline.
• Take part in a budgeting challenge: A range of budgeting challenges are available to try, such as the 1p saving challenge, where you save a penny on day one, and then increase the daily amount saved by 1p. Doing this over 365 days would save £667.95. This method is a manageable way to improve money management skills and start saving.

How much should I be saving each month?

There are 1,300 monthly Google searches for ‘how much money should I be saving each month?’. However, the amount completely depends on a range of factors, such as your income, financial goals (e.g. saving for retirement), outgoing payments, and lifestyle.

A helpful guideline many people follow is the 50/30/20 rule. This budgeting method divides your monthly income into three key areas: 50% of your income goes into ‘needs’ (mortgage/rent, utility bills, etc.), 30% goes towards wants (holidays, subscriptions, etc.), and 20% into savings.

For example, if you bring home £3,000 after tax, the split would look like:

• Needs: £1,500 (50%)
• Wants: £900 (30%)
• Savings: £600 (20%)

 

Credit and debt

With household debt levels at record highs and interest rates rising, worries about falling into debt and managing repayments are certainly apparent.

While this category may not be an initial concern for individuals who may be more financially stable, managing debt wisely at all levels is crucial. Those more affluent often use credit strategically, to manage cash flow or leverage investments, which in itself can bring risk if not handled correctly. 

Below are the most common concerns within this category.

 

What is a good credit score?

With 8,100 monthly searches, understanding credit scores is a top concern. People might search this term when planning for a financial application, such as applying for a credit card or mortgage. Alternatively, other users might need more information about credit scores, wanting to know what to aim for or assess their current score.

To answer the question, what’s considered a ‘good’ credit score can vary, as the measurement scale used is different between credit reference agencies (CRA). However, the higher the number, the better. Below is a table of the UK’s three largest CRAs: 

CRA	Excellent	Very good	Good	Poor	Very poor
Experian	961-999	881-960	721-880	561-720	0-560
Equifax	811-1000	671-810	531-670	439-530	0-438
Transunion	628-719	604-627	566-603	551-565	0-550

 

Regardless of income and financial position, credit scores matter. Those with high incomes can still have bad credit. For example, buying everything in cash or not borrowing can prevent the buildup of good credit.

Having a good credit score can help with access to premium financial products, business ventures or investments. It can even be used as identity verification for non-financial matters, such as private memberships and renting high-end property.

 

How to reduce debt?

Many people seek advice on how to reduce debt, which is understandable as debt can have a significant impact on mental health. It’s also still a taboo subject; according to research from the Money and Pensions Service, 81% of people actively avoid discussing their finances. Many may not feel comfortable talking to family and friends about this, which is why they turn to Google. Debt can affect anybody, regardless of income or financial strength. Inflation, bad investments, and business debt can all build up and cause stress.  

Finding the best approach depends somewhat on the type of debt, such as whether it’s personal or business debt. Speaking to a financial adviser or a debt management expert is beneficial for gaining advice tailored to your specific circumstances. However, some general ways to manage debt can include: 

• Be clear on what you owe: Make sure you know the exact amount of your total debt, who you owe the money to, and the type of debt. This clarity can help you reduce stress and make a solid plan. 
• Budget: Try to add any outstanding debt to your budget sheet and pay it off gradually with any spare money. 
• Understand good and bad debt: Knowing the difference between these debt types can help you decide how to repay, whether you opt to pay off smaller or high-interest debts first. Good debt is any debt that contributes to long-term wealth, generates income or invests in your future, such as mortgages and business loans. Bad debt is often short-term and high-interest debt, like payday loans and credit card debt, which are usually used to fund lifestyle costs. 
• Consider consolidation: Putting all debts into one loan or balance transfer can help lower interest rates, simplify repayments, and make it easier to budget. However, be sure to check repayment terms before doing so and ensure there aren’t any fees or impact on your credit score.
• Avoid taking on more debt: Of course, if you’re already in debt, any further debt will just worsen the situation. Freeze or limit credit card use and try not to make major purchases until you pay off existing debt.

 

Financial concerns of those in stronger financial positions

The more wealth people manage, the more complex their financial situations can become due to investments, multiple pension pots, and differing tax rules. Shifting worries from managing day-to-day costs to protecting and preserving wealth can carry a lot of weight and have notable consequences if mismanaged. 

Below are some common worries and queries that individuals in stronger financial positions may have.

 

Pensions

Pensions are confusing to many, regardless of income, especially with regular changes, such as the State Pension age and amount. Research from Standard Life revealed that over half (51%) of the UK public had no idea of the current value of State Pension payments.

Below are some of the most common queries within this category, from Google search data and Shackleton Advisers’ internal data.

What happens to my pension when I die?

This query gains around 2,900 searches a month. Many types of assets, including pensions, can be passed on after death in the UK, but the rules vary. Higher-income individuals may wonder about this query more often due to likely having numerous pension pots. 

What happens to your pension when you die depends on a few different factors, such as the type of pension you have, who you’ve nominated as a beneficiary, and the age at which you die. Below is an overview of the different pension types and how these work:

• Defined contribution pension (personal pension, most modern workplace pension): These are the most common pensions in the UK. If you die before 75, your beneficiaries can inherit 100% of the tax-free pension and choose to take it as a lump sum, income, or leave it invested. If you die after 75, this money can be passed on, but income tax will apply when it is withdrawn. Additionally, no inheritance tax is due if you die after 75.
• Defined benefit pensions (usually provided by public sectors or older employer schemes): These pensions don’t have a pot to pass on like defined contribution pensions. Instead, they can provide a reduced income to a civil partner or spouse, and sometimes payments are given to dependent children up to a certain age. If you die before retirement, a lump sum death benefit may be paid. All of these benefits vary depending on the specific scheme you’re on, so be sure to check.
• State Pension: Typically, the basic State Pension will stop when you die. If you have a spouse, they may be entitled to some benefits, but this depends on both parties’ National Insurance contributions and when both reach State Pension age.

 

Should I consolidate my pensions?

Once again, this query is something people of all income levels are keen to know, with 1,300 monthly searches. However, stereotypically, those with a higher income and assets often have multiple pension pots, such as a mix of workplace and personal pensions, and in general, a higher total pension value. 

Bringing multiple pensions together into one single pot can help simplify pension management, increase investment performance, and eliminate high-charging plans. However, there are also cons to consolidating pensions. Some older schemes come with benefits such as protected tax-free cash that would no longer be available after consolidating, and some pensions may charge exit fees.

The decision to consolidate your pension is completely personal preference. When deciding, some factors to consider include current pension benefits, investment performance and options. 

How much should I pay into my pension?

The recommended pension contributions depend on a range of factors, such as your age, earnings, retirement goals, and the lifestyle you want to have in retirement. However, there are a few different general rules that people tend to follow. 

When choosing how much to pay into a pension, many base the amount on their income level and lifestyle before retirement. Therefore, a good rule of thumb is to aim for your retirement payments to equal two-thirds of your current income. This calculation should allow for a similar lifestyle, as you likely will have fewer outgoings,  such as commuting and National Insurance. Of course, if you want to improve your lifestyle, the more you put away, the better.

 

Retirement 

A lot of people worry and are also unsure about retirement, even those with significant savings. Similarly to pensions, this is likely due to rules surrounding retirement changing frequently, and people having fears around not having enough money to support themselves in older age.

Below are some common queries surrounding retirement that many ask, regardless of income. 

 

When can I retire? 

Many of us think about retiring for a lot of our working life! So it’s not a surprise that this query gains 14,800 searches each month. However, this search volume is likely also due to the UK State Pension age changing often, creating confusion.

There isn’t a forced retirement age in the UK. Since 2011, the law states you can work for as long as you want. In terms of receiving your pension, there is a pension age in place, and when you hit this age, you can access a State Pension and any other eligible pension. 

Currently, in the UK, the State Pension age is 66 years old for both men and women. However, in May 2026, this is expected to increase to 67 for those born on or after April 1960.

 

Will I run out of money in retirement?

Many of us, even those who are financially stable, will worry about outliving our money. A range of factors fuel this concern, such as rising living costs, uncertainty around the pension age, and rising life expectancy. For individuals with a higher income, keeping up with a certain lifestyle, supporting family, and protecting their wealth will likely create anxieties. 

To overcome these worries, have a clear and realistic retirement plan, review your finances regularly and understand your needs. There are various tools available that can help, such as pension calculators, or you can seek professional advice. 

 

How much of my pension pot will I get in retirement?

The amount you receive depends on a wide range of factors such as the amount saved, the age you begin withdrawing, how it’s invested, and how you choose to access the money (e.g., lump sums, annuity)

Many use the 4% rule as a general guide. If you have a £250,000 pension pot, this could provide around £10,000 a year (4% of £250,000) for 25-30 years. However, this rule doesn’t account for investment growth or the State Pension, but provides a starting point. Inflation, health, personal lifestyle, and whether you receive the full State Pension can all significantly impact your retirement income and needs. 

To find a more accurate amount you may receive in retirement, try using a pension calculator or consult a professional. 

Tax and wealth 

Tax rules are complex, so it’s not a surprise that so many people, regardless of income, are seeking information on this area. When it comes to those with a higher income, many of their queries surrounding tax are related to how they can preserve, pass on, and protect their fortune. 

Below are some common tax and wealth queries that financially stable individuals seek advice on.

 

How can I pass my wealth on tax-free to my children/grandchildren?

Many of us would love to pass on our wealth to our children and/or grandchildren, as it can help to set them up later in life. However, there are rules surrounding this, and careful planning is required. Although you can leave as much money as you’d like to your offspring, it may not be tax-free depending on the amount and circumstances.

In the UK, gifts and inheritance are often subject to Inheritance Tax (IHT) if they exceed certain thresholds. However, below are a few allowances and exemptions:

• You gift less than £3,000 in total within a tax year
• You gift the money more than seven years before you die
• The gifts are small (less than £250 per person)
• A certain amount of money is gifted tax-free as a wedding gift. Each parent can gift up to £5,000, grandparents and great-grandparents can gift up to £2,500, and any other person can gift up to £1,000.

As well as the above,  setting up a trust can help control when and how assets are passed on, potentially reducing exposure to IHT, and protecting them from creditors. Another option is using the residence nil-rate band, which allows you to pass on an additional amount of your estate, specifically the value of your main home, to your children or grandchildren, free of Inheritance Tax.

 

How does the tax-free lump sum work?

The tax-free lump sum refers to a portion of a pension pot that individuals can withdraw without paying income tax.

This allowance is triggered when you access your pension savings, typically when you reach your selected private or workplace pension scheme’s minimum retirement age, which is currently 55 (going up to 57 from April 2028), but can sometimes be earlier. You can take up to 25% from each of your pensions tax-free, provided you withdraw the money as one or more lump sums that don’t exceed £268,275 overall.

The lump sum is tax-free up to 25% of your total pension pot. However, any withdrawals beyond 25% will be subject to income tax, and taking large taxable amounts could push you into a higher tax bracket, so plan carefully.  

Should I set up a trust to protect my assets?

For those with significant wealth, it’s important to protect assets, maintain control and reduce risks during your lifetime. Trusts can be a great way to safeguard assets from unforeseen circumstances, such as creditor claims, divorce, or poor financial decisions.

Trusts allow you to separate ownership of assets from personal ownership, which offers a layer of protection. You can place assets such as property, money, or investments into a trust and appoint trustees to manage them according to your instructions. This will benefit your chosen beneficiaries. 

Investment

Many individuals who have a higher income will seek ways to grow, preserve and protect their finances, which is why many invest. Below are some common queries regarding investment.

Should I invest in property?

Property investment can be a great way to generate rental income and increase capital growth if house prices rise. Investing in real estate can also provide portfolio diversification, going beyond bonds and stocks, and comes with tax benefits, such as Capital Gains Tax Allowance, deductible expenses on buy-to-let properties, IHT planning, and more.

There are some risks involved when investing in property, such as fluctuating market conditions, property being illiquid, and ongoing costs with insurance and maintenance, that you should be aware of. Whether you decide to invest in property depends on factors including your broader investment goals, how hands-on you’re willing to be, and your risk tolerance. 

 

How can I make my investments more tax-efficient?

Ensuring investments are tax-efficient is key to minimise risks and maximise returns on investments. Tax wrappers, which are financial products or services that hold investments, can make the process more tax-efficient, including:

• Individual Savings Accounts (ISAs): These are arguably the most popular tax wrappers in the UK. ISAs allow you to invest or save without paying income or capital gains tax, ensuring any interest, profits, or dividends aren’t subject to tax. 
• Invest via a Limited Company: This investment method can allow for more control over income and potentially lower tax rates, as corporation tax is often lower than higher-rate income tax. However, the total tax paid varies depending on factors such as your overall income, how profits are withdrawn, and future tax changes.
• Use capital gains tax allowances wisely: Everyone has a tax-free allowance (£3,000 for the 2025/2026 tax year)  for gains made when selling investments such as property or shares.
• Venture capital schemes: These are government-backed schemes that offer generous tax reliefs to encourage investment in early-stage businesses. The schemes include:
  • The Enterprise Investment Scheme (EIS) provides 30% income tax relief, capital gains tax deferral, and inheritance tax exemption after two years. 
  • The Venture Capital Trusts (VCTs) provide 30% income tax relief and tax-free dividends
  • The Seed Enterprise Investment Scheme (SEIS) provides a 50% income tax relief and CGT reinvestment relief for those who invest in newer startups.

Tax-efficient investing can help boost long-term wealth, lower your tax bill, and give greater control over your income.

 

How do I protect my wealth during market downturns?

When it comes to investing, market downturns are part of the process and expected. However, they can still be risky, especially when you’ve built up significant wealth.

To preserve long-term value and protect assets, a diverse and proactive approach is necessary, which may include holding defensive investments (such as gold or bonds), keeping an emergency cash buffer, and using tax-efficient investments, such as those discussed above. It’s also important to regularly rebalance your portfolio and seek expert advice to ensure your strategy is aligned with risk tolerance and long-term goals.

Whether you’re trying to make ends meet, build financial stability, or protect your wealth, money worries affect us all. Although the questions we ask may change as wealth grows, the need for control, clarity and confidence remains constant. Understanding the common concerns at each financial stage and taking proactive steps, whether that’s starting a budget sheet, planning for retirement or seeking expert advice, can help you take control of your financial future. 

For further advice on any of the above queries, or financial advice in general, simply get in touch. 

 

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Important information:

This blog is for general information only and does not constitute advice. We recommend you speak to your financial adviser before making any decisions. The information is aimed at retail clients only. No statements or representations made in the article are legally binding upon Shackleton Advisers Limited or the recipient. All references to taxation are in relation to UK taxation and are based on our current understanding of UK laws and HMRC practices. Tax reliefs may change in the future and may not be maintained.  Tax treatment is based on your individual circumstances. All other information is based on our understanding of current legislation and regulation which may be subject to change. The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.  The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.