Welcome to our November/December 2021 financial planning magazine. This issue was written prior to the Chancellor of the Exchequer, Rishi Sunak, presenting the second UK Budget of 2021 on Wednesday 27 October. We will look at the key announcements included in the Chancellor’s red box in the next issue.


Inside, ‘How can I protect my money from inflation?’ is a question that many people may be asking themselves right now. In the current economic climate, rising inflation is becoming a concern for people with savings and investments. The effect means you’re potentially earning less money due to your hard-earned cash becoming worth less as time goes by. The negative impact of inflation upon the real value of an investor’s portfolio will be a concern. Particularly for the older generation with not enough investments, who may live mostly or entirely off their savings and pensions. On page 04 we consider five questions you should ask yourself before inflation takes off.

State Pension

The Department for Work and Pensions (DWP) underpaid 134,000 pensioners in State Pension to the tune of £1 billion, according to the National Audit Office (NAO). This was due to complex State Pension rules, outdated and unautomated IT systems, and a high degree of manual review and understanding required by case workers led to the errors uncovered by the investigation. Errors affected the following:

  • Pensioners who first claimed their State Pension before April 2016
  • Pensioners who do not have a full National Insurance record
  • Pensions who should have received certain increases in their basic State Pension

Read the full article on page 06.

Normal Minimum Pension Age

On page 12 we look at one of the less publicised pension changes being planned – the raising of the Normal Minimum Pension Age (NMPA) from 55 to 57. This is to be effective from 2028 and will be included in next year’s Finance Bill. The NMPA is the age that you can usually first access pension benefits without incurring penal tax charges. Pensions tax rules in the UK are some of the most complicated aspects of UK tax legislation. This is not ideal when pretty much everyone has to interact with them.

State Pension Triple Lock

The earnings benchmark of the State Pension triple lock will be temporarily set aside for next year. The Department for Work and Pensions (DWP) confirmed on 7 September that the State Pension triple lock rule will not be applied for the 2022/23 financial year. This was due to concerns over the potential costs involved. It comes after the Office for Budget Responsibility (OBR) said in July that pensioners could see their payments rise by as much as 8% due to the guarantee. Read the full article on page 03.

A full list of the articles featured in this issue appears on page 02.

Money doesn’t have to be complicated

Whatever your needs and aspirations, we can help you enjoy today while planning for tomorrow. We hope you enjoy our latest financial planning issue, and if you require any further information or would like to start a conversation – please contact us. Further information can also be found at gov.uk.

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Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.

The Financial Conduct Authority (FCA) does not regulate tax advice, estate planning, trusts or will writing.

The content in this article is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice.

Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.

Thresholds, percentage rates and tax legislation may change in subsequent finance acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.

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