wealth planning

Thinking ahead when moving to the UK

Moving to another country can be a big upheaval and planning ahead is vital. Senior wealth planners Adrian Crowe and Yash Naidoo explore the financial aspects of moving to the UK, with a particular focus on tax planning.

Relocating to a different country involves various considerations from deciding where to live and settling into a new job to, perhaps, finding new schools for your children. While these can be daunting tasks, it’s important to consider your financial circumstances well in advance of your move to ensure you take full advantage of all the benefits available to you. In this article, we explore the financial aspects of relocating to the UK, with a particular focus on the tax implications.

In the UK, the way you are taxed by HM Revenue and Customs (HMRC) is based on your residency and domicile status. Your residency status is simply where you live, but your domicile status is a little more complicated. It’s generally based on where you originated – either where you were born or where your father came from – or it can be by choice, if you are over 16 and choose to live indefinitely in another country. A UK resident whose permanent home is outside the UK is known as a non-domiciled individual or ‘non-dom’, which is purely a description of their tax status and indicates they do not intend to live permanently in the UK.

The difference between residence and domicile is important. Individuals who are both UK resident and domiciled must pay UK tax on their worldwide income and gains. However, if you are a non-domiciled individual living in the UK you can choose to register your non-domiciled status, which means you will only be taxed on your income and gains earned in the UK. You will not have to pay UK tax on any income or gains earned overseas unless you bring that money into the UK.

A good understanding of UK tax legislation is essential, and your personal circumstances should be carefully considered with the help of tax professionals. Seeking expert advice will help you make more informed financial decisions when you relocate.

If you are living in the UK but don’t intend the move to be permanent, you can choose to be taxed only on your income and gains earned in the UK and those which you bring into the UK. This is known as the remittance basis of taxation, and it means any foreign income and gains remain outside of the scope of UK taxation, which can be advantageous if you have significant foreign income or assets. The remittance basis is only available for the first 15 years of living in the UK, but during this time it provides the potential to secure wealth and avoid tax erosion. After this period, you will automatically be ‘deemed’ to be domiciled in the UK and will have to pay tax on your worldwide income.

Choosing the remittance basis of taxation has wide implications, specifically for your investment strategies and foreign income management. In particular, separation of onshore and offshore bank accounts and investments plays a pivotal role in ensuring you are able to benefit from this planning opportunity. If your relocation will involve borrowing to buy a new home, or for other purposes, special regard must also be given to where the loan is granted from and how and where it’s serviced, in order to avoid any remittance issues. This is where a private bank with access to both onshore and tax neutral, offshore, capabilities can be very helpful.

At Nedbank Private Wealth, we can work with you and your tax advisers to help structure your banking, investment and borrowing requirements in the most effective way when relocating to the UK. In addition to this, we can assess your current circumstances and put a plan in place to help you achieve your goals and objectives. We use specialist software to model and help you visualise your financial future, exploring different scenarios and options, all to ensure you remain on track with your plan.

To ensure you are fully prepared for your UK move, we have created two guides, A guide for moving to the UK and A guide for South Africans moving to the UK which provide more detail.

Clients of Nedbank Private Wealth can get in touch with their private banker directly to understand how wealth planning can help them achieve their financial goals and objectives, or call +44 (0)1624 645000 to speak to our client services team. At Nedbank Private Wealth, multi-generational relationships are really important to us. So we work with you and your family to offer the appropriate support at whatever stage you and your family are in life.

If you would like to find out more about how we can help you with wealth planning support, please contact us on the same number as above, or complete the contact us form using the link below.

Any examples of investments and structures used are for illustrative purposes only. The inclusion does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

Yash Naidoo

Yash joined the wealth planning division in 2022 and has over 16 years’ experience in wealth management. He works closely with clients and their families, together with their professional advisers, to assist them in structuring their wealth in the most efficient manner to achieve their goals and aspirations. Yash has been with the Nedbank Group since 2010 and was previously head of international for South Africa’s central region. Since his move to Nedbank Private Wealth in the Isle of Man, he also assists South African individuals and families who wish to invest or relocate internationally.

Yash is a member of the Financial Planning Institute of Southern Africa and a Certified Financial Planner and holds an MBA.

Adrian Crowe

Adrian joined the wealth planning division in London in 2023. He has over 20 years’ experience of delivering financial planning advice, having worked for Credit Suisse and chartered accountancy firm Crowe UK LLP prior to joining Nedbank Private Wealth.

Adrian spends time with clients and their families to understand their current situation and future aspirations. Working closely with our private bankers and taking our wider wealth management capabilities into account, he advises them on the strategy and structuring of their assets, formulating bespoke wealth plans to help them meet their needs and objectives.

Adrian holds the diploma in financial planning and is a member of the Chartered Insurance Institute.

Planning for a century

As more of us reach the age of 100, financial planning is vital to ensure we have enough money to fund our lifestyles through a potentially long retirement.

Reaching the age of 100 may seem a rather fanciful prospect but if you were born in 1974 in the UK, as I was, your chances of becoming a centenarian are 20.4% if you’re a woman and 13.9% if you’re a man. Based on the latest estimates from the United Nations, there were 593,000 centenarians around the world in 2021 and it’s a fast-growing age group. Studies estimate there could be 3.7 million centenarians alive by 2050.

Better healthcare and lifestyles around the world, along with luck in the genetic lottery, play a big part in increasing longevity. Yet there is still no way to accurately predict how long any of us will live and this is a crucial factor when it comes to planning your finances. How do you ensure you have enough money to fund your lifestyle through a potential 30-40 year retirement?

Here are six things to consider when preparing your wealth for a long life well lived:

1. Define your long-term financial goals

Talking about money and your aspirations with loved ones is key to understanding what you want from life – for yourself and your legacy. Defining this will help build a framework for managing your wealth to achieve these goals.

2. Make your pension a priority

Pensions can be one of the most efficient ways to save for your retirement, so it may be worth ensuring you make the most of your pension allowances. In the UK, the benefits include tax relief on your contributions and tax free growth of the investments within the pension. In addition, pension funds do not form part of your estate when you die and are therefore free from UK inheritance tax. If you have a number of pensions, it may be worth consolidating them, although the associated risks and charges should be considered. Taking advantage of ISAs is another tax-efficient strategy for long-term financial planning in the UK.

3. Invest for the long-term

The power of compounding and diversification make investing for the long-term one of the best ways to grow your wealth. Make sure you are comfortable with the investment risk in your personal portfolio, and it is suitably diversified to meet your needs.

4. Contingencies

If you live to age 100, there are likely to be a few unexpected events along the way. However, the financial impact of these can be considered and options such as life insurance, income protection and critical illness cover can help to protect your wealth and provide peace of mind for you and your family. Life expectancy may be improving but it is no guarantee of good health, so the possibility of long-term care should also be considered.

5. Estate planning and gifting

As well as managing your wealth during your lifetime, it’s important to consider how it will be managed after you’ve gone. The first step is to ensure you have an up-to-date will or wills (if you have assets in more than one jurisdiction). Whether you plan to pass your wealth on to your family or have philanthropic ambitions, considering your options and putting the right structures in place is vital to ensure a smooth, efficient transfer. Structures such as trusts, family investment companies and donor advised funds may be appropriate.

6. Make a wealth plan

Having considered your goals and values, creating a wealth plan will allow you to visualise the financial route you need to take – right up to age 100. Using specialist cashflow software, a wealth planner will work with you to define your current and future financial circumstances and align them to your goals and values, enabling more informed financial decisions. We call it ‘investing with purpose’. The future is never certain, and your wealth plan can explore various scenarios to stress test situations. This means you can be as prepared as possible for the unexpected. Your wealth plan should be flexible and with regular reviews it can be adapted as markets, fiscal regimes and your personal goals and circumstances evolve.

At Nedbank Private Wealth, we can partner with you to understand your financial goals and create the most appropriate wealth plan. We work with clients and their families around the world, in tandem with their professional advisers, to help them achieve a life well lived – all the way to 100 or more!

If you would like to find out more about how we can help you with retirement planning or more general wealth planning support, please contact us on the same number as above, or complete the contact us form using the link below.

Simon Prescott

Simon heads up the wealth planning division for the international business. He works with clients and their families, in tandem with their professional advisers, to help structure their investments and other financial assets to achieve their goals and aspirations through the development of bespoke wealth plans. Working in partnership with our teams of private bankers, he integrates the benefits of wealth planning alongside our broader wealth management and wealth structuring capabilities.

Simon has over 24 years’ experience of delivering investment and planning advice, 15 of which have been with Nedbank Private Wealth. His appointment followed the establishment of bank’s wealth planning function, where he was instrumental in its design, build and implementation.

Simon holds the Level 7 Diploma in Advanced Financial Planning, the highest financial planning qualification in the UK, and is a Certified Financial Planner^TM, a Chartered Wealth Manager and a Chartered Fellow of the Chartered Institute for Securities & Investment.

A tale of two coronations: 1953 and 2023

As we celebrate the coronation of King Charles III, we look back at the late Queen’s coronation in 1953 and how Britain has changed over the last 70 years.

The morning of 6 May 2023 will see the coronation of King Charles III at Westminster Abbey in London – almost 70 years after his mother was crowned in the Abbey on 2 June 1953.

Inevitably, comparisons between this year’s coronation and the Queen’s in 1953 will be rife. It’s already been announced that the service will be markedly shorter than his mother’s and the procession will be half the length, but it will certainly not lack pageantry and colour.

Back in 1953 the Queen’s coronation was the first ever to be televised. Fewer than two million British homes owned a TV at the time and the Queen’s coronation played a major part in making television mainstream. Over half the UK population crowded into the homes of family and friends with a television to watch the event in black and white. A black and white TV with a massive nine-inch screen would set you back around £45 – more than £1,000 in today’s money. Today, many British households have a TV in almost every room and along with phones, laptops and tablets, there will be no shortage of ways to watch the King’s coronation on 6 May.

So, what was Britain like 70 years ago?

In 1953, Britain was a major economic power but just emerging from the grip of post-war austerity. World War II had ended in 1945, but people were still living with the effects of the conflict. Many of its major cities were bombsites, staple foodstuffs were still rationed, it was almost impossible for many families to borrow money and there was a desperate shortage of affordable housing.

The start of the 1950s also saw high inflation of over 10%, which was attributed to a boom in world commodity prices as a result of the Korean War. So there are some surprising parallels with our cost of living crisis today. However, the end of the Korean conflict in July 1953 ushered in a period of low inflation and stable commodity prices that lasted until the 1970s. So Britain in 1953 was on the up with growth of 4% (up from 0.3% in 1952) and inflation down to 3%.

Interest rates

At the time of the Queen’s coronation, interest rates were down to around 3.5% according to the Bank of England, having fallen from 4.0% the previous year. In the 1950s it was the government of the day that controlled monetary policy. The responsibility for rate setting was only handed over to the independent Bank of England in 1997 by Gordon Brown, then Chancellor of the Exchequer. The current UK interest rate is rising and stands at 4.25%, its highest in 15 years, following 11 hikes since 2021. The Bank of England is expected to raise rates again in its next Monetary Policy Committee meeting on 11 May, as it attempts to rein in our current stubbornly high inflation.

House prices

Britain is known as a nation of homeowners and house prices are a favourite topic of conversation. The ending of austerity during 1953 saw extensive local authority driven housebuilding, as the UK built council houses to deal with the post-war shortage. Home-ownership rates were quite low, around 31% in 1953, but they grew rapidly as rising incomes enabled more to buy. Home ownership peaked in 2003 with around 70% of homes privately owned but has since fallen back to around 64% today as the price of housing has risen faster than incomes – making the dream of owning a home unattainable for many. According to historic data from the Nationwide Building Society, a typical UK property cost £1,891 in 1953, but the average house price had risen to £258,115 by March 2023.

Earnings

In the 1950s the UK economy was growing, with wages increasing and low unemployment. In 1953 average weekly earnings were around £7, but this masked a stark difference between the earnings of men and women. While men were paid on average £9 a week, women earned only £5 – a staggering gender pay gap of 80%. According to the Office of National Statistics, average weekly earnings today stand at £638 and while a gender pay gap remains, it is now down to 9.4%.

Stocks and shares

The world of investing was very different in 1953. As major industries had been nationalised, the stock market was light on transport stocks and utilities, while financials, materials and consumer staples were more dominant. The market also had a much more domestic focus than the global markets we know today. The FT30 index – one of the oldest indices in the world – was devised in 1935 and made up of 30 of the largest British companies, many of which are still around today although now part of large multinational groups. These included Imperial Chemical Industries (now part of Akzo Nobel), Distillers (now Diageo) and Imperial Tobacco (now Imperial Brands).

The FTSE100 index we know today was not founded until 1984. These days heavy industry has given way to other sectors such as consumer staples, financials, energy, healthcare, and materials which now dominate the modern indices. These changes reflect Britain’s significant shift to a services sector economy, with new jobs in finance, retail, tourism and hospitality sectors. In 1950, the Bank of England reported that manufacturing accounted for 33% of Britain’s gross domestic product (GDP), but by the end of 2022 this had fallen to less than 10%. Meanwhile the services sector now accounts for around 80% of Britain’s total output.

It’s fascinating to look back on the impact of geopolitical events and how the UK economy has evolved over the last 70 years. It highlights the powerful cyclical changes in the economy and, as we face our current economic headwinds, offers a reassuring reminder that all crises eventually pass.

If you would like to find out more about how we can help you with wealth planning support, or specific support when planning your retirement, as well as for other major life events, please contact us on the same number as above, or complete the contact us form using the link below.

We do not offer legal advice. We would always recommend you seek professional legal advice in relation to your will and lasting powers of attorney. We are, however, happy to work with your legal team, or to provide an introduction to a suitable lawyer should you wish.

The 19th issue of our client magazine is out now

The latest issue of Opportunity focuses on the flexibility of bespoke lending, wealth planning for a long life well lived, and how women can plan for financial independence, plus all our recent company news.

Our client magazine is published three times a year and provides articles and insights to help you make the most of your wealth. We also report on recent company updates.

Read the magazine here.

If you would like to subscribe, please visit our subscription centre.

If you would like to find out more about how we can help you with wealth planning support, please contact us on the same number as above, or complete the contact us form using the link below.

Is cash really a solution for your long-term goals?

As we look towards another year of inflation and market turmoil, rising interest rates and the predictability of returns from cash in the bank may appeal. But is cash really a solution for your long-term goals?

If you follow economic news or data closely, recent headlines might well have made you want to run as far as possible from investment markets. You’ll no doubt have witnessed conflicting economic data and been concerned about the impact of rising interest rates and, most recently, turmoil in the banking sector. If you’re already invested, you may have been tempted to pull the plug and move into cash. If you aren’t invested but were planning to, it may seem wise to delay.

In the following article, we answer some of the tough questions that may be going through your mind.

Are we heading towards another global financial crisis?

In our opinion, no. The recent banking upheaval is not the same scenario as 2008 because:

Banks have more capital and are now better regulated – especially large systemically important banks.
Regulators are more aware of the importance of acting fast to maintain confidence and avoid panic selling and withdrawals.As seen in their timely response to the recent issues at Silicon Valley Bank and Credit Suisse.
There are no widespread credit issues as there were in the 2008 crisis, which stemmed from a housing market crash in the US. The unrealised losses we’ve seen in some banks at the moment are due to higher interest rates and the effect these can have on government bonds. As long as banks have access to liquidity and they can borrow against these bonds, there should not be the material losses we saw in 2008 with mortgage-related debt.

Having said this, investor sentiment is something to watch out for. If investors start panic selling, this could lead to further market sell offs. But if you’re anything like me, you may well see this as a buying opportunity.

So what is the outlook now?

In our view markets will continue to be buffered by headwinds over the next 12 months, but there will be tailwinds too, which don’t tend to feature in the news headlines.

Market volatility is likely to remain elevated and economic growth is expected to slow. We anticipate this will be particularly pronounced in developed economies, but especially in Europe where energy restrictions impact output, high inflation reduces real wages, and tightening monetary policy slows aggregate demand. While still low, the risk of significant global disruption from the Russia-Ukraine crisis remains real.

Inflation will peak but remain high. Improving energy and food prices should help headline inflation fall, however, the relatively tight labour markets and higher wage increases may mean core inflation (which excludes energy and food) remains relatively high. The supply and demand issues that have beset markets since the pandemic and the start of the Ukraine war are expected to ease. Labour markets are also likely to settle, with unemployment to rise albeit slowly.

Central bank policy rates are expected to peak in 2023, but with tight labour markets risking second-round effects from higher wage increases, they are likely to remain higher for longer than initially anticipated. However, it is important to note that a significant number of interest rate hikes are already priced into bond markets. And we expect markets will start pricing in future rate cuts towards the end of 2023 and into 2024 as inflation and growth slow.

With cash now paying meaningful returns, would it not be better to invest in cash?

Although cash rates are currently high, it is unlikely they’ll remain so over the long term. Our current expectation, which is in line with many market participants, is that cash will average 3.5% a year over the next five years. This might sound high after years of ultra-low interest rates, but will this level of return be sufficient to meet your financial goals and outpace inflation? The answer to that question is particular to you but in most cases, cash is not a suitable vehicle for a large proportion of your wealth. In addition, if interest rates remain below inflation, your cash investment will be losing value over time.

If you’re already invested, markets are broadly down so you would need to sell your assets at a discount to move into cash. You probably wouldn’t choose to sell your house in a housing downturn unless you really needed to. The same applies to market investing.

If you’re not invested, from a buyer’s standpoint many markets are attractively priced (with some notable exceptions) so you could forgo the opportunity to buy into the market at a discount. Think back to the Covid downturn – wouldn’t we all want to buy equities at those prices?

The current uncertainty in markets may be a distraction, but if your investment time frames are over three years it should not be a deterrent. Volatility is a normal part of investing and trying to time the markets is pretty much impossible. Best trading days typically follow the worst – you blink, you’ve missed it.

Am I taking a big risk by investing now?

It depends on what you define as risk. If you mean volatility then yes, you should be prepared for a bumpy ride. But if you mean “do I run the risk of losing all or a great proportion of my money?” then no. Or at least not with our portfolios. All of our client portfolios are hugely diversified. We hold thousands of positions across different sectors, styles and markets.

In addition, it is our job to tread the fine line between reducing volatility and maximising opportunity. We have been cautiously positioned for some time in the expectation that the rising central bank interest rates will result in slower economic activity, which in turn will create a more challenging environment, so our investment portfolios are well positioned for this.

Ultimately, when weighing up cash against markets, it is the opportunity cost you should consider and how this plays out with your wider financial goals. The right decision for you requires professional advice and our team of wealth planners can provide you with a bespoke plan to help you achieve those goals.

If you would like to find out more about how we can help you with wealth planning support, please contact us on the same number as above, or complete the contact us form using the link below.

Investment values can go down, as well as up, to the extent that you might get back less than you originally invested. The value of your investments may also be affected by exchange rates. The inclusion of any investment structures and wrappers is for information only and should not be taken as advice or a recommendation. You should seek the necessary advice, specific to your circumstances, before making any financial decision.

Rebecca Cretney

Rebecca joined Nedbank Private Wealth in May 2004 having moved to the Isle of Man from Barcelona to pursue a course in Business Studies with the Isle of Man Business School. She worked as a private banker until 2019, when she was appointed to the role of investment counsellor. Rebecca now focuses exclusively on supporting private bankers in conversations with their clients, providing technical investment expertise where more complex portfolio requirements exist. She also provides coaching and training for the private banking teams on a wide range of subjects surrounding investment and advice. In addition, Rebecca chairs the bank’s Investment Committee.

Rebecca is a Chartered Fellow of the Chartered Institute for Securities & Investment and a Chartered Wealth Manager.

Is it time to spring clean your finances?

As the seasons change, many of us feel a sense of regeneration and a pull to make changes in our lives. Can you extend the urge for spring cleaning and freshening up your home into other aspects of life, such as your finances?

Signs of spring often spark an urge for change and reinvention as we start cleaning and decluttering our homes. In the UK, it’s also a perfect time to spring clean your finances as it coincides with the start of a new tax year and the Spring Budget, in which the UK chancellor sets out his taxation and spending plans for the coming year.

So, what should you be considering to freshen up your finances this spring? We outline the best places to start.

Set your goals

Do you have overarching financial goals and, if not, should you think about setting some? What do you want most from life – for yourself and your family? Maybe to help your children or grandchildren through education, or to buy their own homes. Or you have plans to travel or relocate. Perhaps you’d like to build philanthropy into your goals? If you’re unsure where to start, map out some short, medium, and long-term goals. Then you need to take stock of your savings, investments and pensions to make sure they reflect these goals.

Get your paperwork in order

First things first, are all your official documents – wills, lasting powers of attorney and certificates – together where they can be easily found when necessary? If you don’t have a will, or it’s not up to date with your current situation, this should be a top priority. Important digital assets may also need a review.

Use this as an opportunity to sit down and evaluate your incomings and outgoings. Are you paying for services or subscriptions you don’t use? Are there areas that you could cut back on? Could you free up more cash to put towards your financial goals?

Pensions

Now is a good time to review your pension savings – are they in line with your plans for retirement? The most unexpected changes in the chancellor’s Spring Budget were pension reforms. The pension lifetime allowance, which currently stands at £1.073 million, will be abolished by April 2024 and the annual pension allowance – the most you can pay into a pension each tax year and receive tax relief – will increase from £40,000 to £60,000. Although these benefits will be tempered as the tax-free lump sum you can take will be capped at £268,275 (unless you have protections already in place).

Tax matters

Tax changes announced in last year’s autumn statement will come into effect this tax year. These include the freezing of the annual personal allowance at £12,570 and the higher rate tax threshold at £50,270. Plus the reduction of the additional rate 45% band from £150,000 to £125,140. This means you could be tipped into a higher or additional rate tax band if your earnings have increased, so it’s worth exploring options, such as increasing your pension contributions.

It’s also important to take advantage of any tax allowances you’re entitled to. Are you using your annual ISA allowance in full? Are you claiming tax relief against charitable donations and professional subscriptions? As always, you should seek independent tax advice based on your own situation before making any financial decisions.

Plan for life

The lifting of the lifetime allowance on pensions might have additional benefits when it comes to inheritance planning, but are you making the most of your wealth while you’re still around to enjoy it? Have you, for example, dreamt of living somewhere else – escaping the city or moving closer to family? Or gifting from your assets or surplus income to benefit your loved ones – when they need it most? Or supporting a favourite cause? Why not revisit these ideas and consider your work-life balance. Are you happy, or could you be doing more?

Examining many areas of your life – from finances to family matters – can feel daunting, but sitting down and talking about it will almost always pay dividends in the long run.

If you’d like to start a conversation, please get in touch. Our experienced team can work with you to create a personal wealth plan that can help you achieve your financial goals now and for the future.

If you would like to find out more about how we can help you with wealth planning support, please contact us on the same number as above, or complete the contact us form using the link below.

Allie Kirk

Allie manages a select portfolio of high-net-worth clients, working closely with their professional advisers, such as lawyers and accountants, to provide services tailored to their specific financial needs. These include wealth management, succession planning, pensions, lending and banking services. She also works closely with fund managers, trusts and corporate service providers, financial advisers and legal firms. In addition, she acts as an investment adviser to various pension schemes and trusts.

Allie is a Fellow of the Chartered Institute for Securities & Investment.

Never mind the gaps: plan for financial independence

With a theme of #EmbraceEquity for International Women’s Day 2023, Anna Slater discusses what it means and the significant role it can play in understanding and meeting women’s financial needs.

The theme for this year’s International Women’s Day is #EmbraceEquity. But what does that actually mean? We’re all familiar with equality and ensuring everyone is given the same resources and opportunities in life. Equity, however, goes a little deeper and recognises that individuals have different circumstances and needs, and then allocates resources and opportunities accordingly to ensure an equal outcome.

Embracing equity in the finance industry offers the opportunity to make real systemic change – addressing the causes, rather that the symptoms of financial gender parity. Symptomatically, women are still under-represented, particularly when it comes to investing, with men holding far more and far larger investment portfolios and pensions.

Recent UK research revealed that the average pension pot for a 65-year-old woman is £35,800 – a fifth of the average 65-year-old man’s. Data on individual savings accounts (ISAs) tell another version of a similar story – women hold over half of cash ISAs but only 43% of stocks and shares ISAs. So, while many women are trying to save for the future, far fewer are taking the opportunity to invest their money for substantial longer term growth.

What are some of the challenges facing women?

The gender pay gap: Despite women’s wealth growing around the world, they still tend to earn less than men. The pay gap remains around 15% in the UK and the pension and investment gaps mentioned earlier are an inevitable result. Coupled with this, women tend to bear the lion’s share of family responsibilities ̶ with career breaks, part-time working and the punitive cost of childcare reducing their earning power and ability to save.

Longevity: In most developed countries, women are now living longer than men so will need to fund a longer time in retirement. The average UK life expectancy at birth is 83 years for women and 80 years for men.

Attitudes to risk: While women investors may still be a minority, research suggests that when they do invest, they achieve better performance than men. A study by Warwick Business School revealed women outperformed men by an average of 1.8% over a three-year period. Yet a lack of confidence and a fear of putting their savings at risk is holding many women back.

Our job as a wealth manager is to address these complexities and empower women to explore their financial options. Returning to our theme of embracing equity, it is clear many women are starting with a very different set of circumstances to men.

As US author and educator Stephen R. Covey said: “We must look at the lens through which we see the world, as well as the world we see, and that the lens itself shapes how we interpret the world.

Research has shown women place more importance on values and meeting personal goals than investment performance. This subtle difference is one we acknowledge with our purpose-led approach to wealth planning. Taking the time to understand each client’s values and aspirations individually can help us find the most appropriate financial solutions to achieve their overall wealth objectives.

Beckie Williams, Executive Head of Client Proposition at Nedbank Private Wealth, explains: “It might be a generalisation, but in my experience, women place a lot of value on building relationships with their adviser, needing to feel they can trust them. Women pay close attention to the detail. The holistic experience is important, not just the numbers, and if we as an industry can provide that, then we will see many more women taking on risk and investing on their own terms.”

Would you like to find out how Nedbank Private Wealth can support you with your financial goals? Get in touch now and let’s start the conversation.

If you would like to find out more about how we can help you with wealth planning support, please contact us on the same number as above, or complete the contact us form using the link below.

Any examples of investments and structures used are for illustrative purposes only. The inclusion does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Nedbank Private Wealth does not provide individual tax advice, and instead works with clients’ existing advisers or can provide an introduction if needed. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

Anna Slater

Anna joined Nedbank Private Wealth in 2022 and is based out of the London office, working with the wealth planning division. Alongside the team, she works with clients and their families, in tandem with their professional advisers, to ensure they have a clear wealth plan in place to help them achieve their financial and lifestyle objectives.

Anna holds the Diploma in Regulated Financial Planning with the Chartered Insurance Institute and a BSc (Hons) degree from the University of East Anglia.

Our top 10 insights from 2022

No new year can ‘officially’ start until our obligatory list of top articles and insights! For many of us, 2022 continued to be a challenging year. Amidst the ongoing coverage of conflict, climate concerns and more, there were, however, some brighter notes during the year.

No new year can ‘officially’ start until our obligatory list of top articles and insights has been published.

Below is our roundup of our most engaging content throughout 2022.

1. Article: Protecting your digital legacy

What are your digital assets worth? Potentially more than you think, which could present a challenge to ensure they are passed to loved ones after your death. But what strategies can you consider to protect these for the next generation? Protecting your digital legacy – Nedbank Private Wealth

2. Article: Don’t end up someplace else

Having a wealth plan can be even more important as an expat, as you will likely have more complex financial needs and assets spread around the world. Failing to plan could financially leave you ‘someplace else’. Don’t end up ‘someplace else’ – a plan for expat living – Nedbank Private Wealth

3. Article: How socially responsible are you?

While some see philanthropy as an intrinsic part of their wealth plan, others are more indifferent, believing that they already contribute to society by paying taxes. We examine the roots of charitable giving, what motivates people, and offer some tips on the steps your family could take should you wish to become more socially responsible. How socially responsible are you? – Nedbank Private Wealth

4. Article: Is retirement planning more important than ever?

Although retirement planning should be carried out as early as possible, many of us only seriously review our financial situation a few years before we plan to retire. Recent events, however, highlight regular reviews of your wealth are more important than ever, as Simon Prescott explains. Is retirement planning more important than ever? – Nedbank Private Wealth

5. Could your will be contested?

Formalising your wishes for your estate with a legal professional is the best way to help protect your family – and your assets – after you’re gone. As Simon Prescott explains, given the number of contested wills is on the rise, the more you can do to provide clarity around your plans the better. Could your will be contested? – Nedbank Private Wealth

6. Video: Visa management features

Take control, with card management features Online card management features enable you to have greater control of your Visa debit card. Features such as blocking your card when you suspect fraud or viewing your PIN can be done in just a few clicks and are available 24/7. Online access to your wealth – Nedbank Private Wealth

7. Video: Investment Seminar

We reflected on the market stimuli in 2022, as well as the positioning of our investment outlook for 2023 and the opportunities which may arise. Investment seminar – Nedbank Private Wealth

8. Article: Is it worth investing in financial knowledge?

Have you wondered if your level of financial knowledge is holding you back? Beckie Williams, head of client proposition, explains why it’s completely understandable we don’t naturally have more knowledge, and shares five topics to start a conversation about personal finance with your family. Is it worth investing in financial knowledge? – Nedbank Private Wealth

9. Article: A sustainable approach to investing

We offer a sustainable investing strategy for clients who wish to align their money more closely with their values, while not compromising on growth. A sustainable approach to investing and comparable returns – Nedbank Private Wealth

10. Webinar: Sense and sustainability – making sense of sustainable investing

Faced with an explosion of sustainable investment options, David McFadzean and Tom Caddick discuss the growth in sustainable investing and how you can make sense of the jargon and the array of choices available. Webinar: Sense and sustainability – making sense of sustainable investing – Nedbank Private Wealth

If you would like to find out more about how we can help you with wealth planning support, please contact us on the same number as above, or complete the contact us form using the link below.

Any examples of investments and structures used are for illustrative purposes only. The inclusion does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Nedbank Private Wealth does not provide individual tax advice, and instead works with clients’ existing advisers or can provide an introduction if needed. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

Yash Naidoo, Adrian Crowe,

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