PPM Financial Planning

PPM Financial Planning Offering "No Tie" Independent Financial Advice. We regard ourselves as the GP's of financial services offering advice on all aspects of your finances.

Financial Planning for Business Owners, Business Leaders and Horse Racing Professionals
These are the areas we specialise in but we will sit down and create a plan with anyone who sees the value in planning for their future. As it is most peoples common goal to retire, it is this area where we specialise
providing bespoke individual retirement strategies that include pension, investment, business strategy planning, protection and savings advice.

Village Magazine June Edition
01/06/2026

Village Magazine June Edition

PPM's 6️⃣0️⃣ Second Read! So much for 2% inflation on the horizon…The war with Iran has dashed hopes of inflation fallin...
28/05/2026

PPM's 6️⃣0️⃣ Second Read!

So much for 2% inflation on the horizon…

The war with Iran has dashed hopes of inflation falling to its target level.

When the Bank of England met in early February of this year, the summary of the meeting said, “Although above the 2% target currently, consumer price index (CPI) inflation is expected to fall back to around the target from April, owing to developments in energy prices, including from Budget 2025.”

The reference to energy prices had nothing to do with the focus of current interest: oil. The Bank was looking forward to the reduction in the domestic energy price cap from 1 April. That was set in train by the Chancellor’s decision in last November’s Budget to transfer some renewable energy costs from bills to general taxation for three years.

At the time, the move by Rachel Reeves was seen as having three benefits. It would:
• reduce the average annual utility bill by £150 (all other things being equal);
• lower inflation, providing some good economic news; and
• feed through lower government borrowing costs, some of which are linked to inflation.

Less than four weeks after the Bank of England had mused about inflation finally reaching the target set for it by the Chancellor, the Iran war began. Brent Crude, one of the oil price benchmarks, rose from around $70 a barrel in late February to over $110 a month later, before settling around $100 (at the time of writing).

The UK’s March inflation figures showed the first impact of the oil price jump, with annual inflation rising from 3.0% to 3.3%. The detailed data showed overall motor fuel prices rising by 4.9% in the year to March 2026, compared with a fall of 4.6% in the year to February. The March fuel inflation figure was the highest recorded since January 2023. There is probably more pain to come as the fuel prices were based on the average across March, which were 140.2p a litre for unleaded and 158.7p for diesel.

So far, there are no forecasts that inflation will return to the 10%+ of 2022/23. However, for the second time in less than five years, we have all been reminded that inflation has not disappeared and cannot be ignored.

Congratulations to all our Villa Fans we hope you enjoyed your memorable European night of success.
21/05/2026

Congratulations to all our Villa Fans we hope you enjoyed your memorable European night of success.

21/05/2026

PPM's 6️⃣0️⃣ Second Read!

Are today’s mid-lifers facing a future retirement crisis?

New research reveals that five million mid-lifers, aged 40–54, face a difficult retirement.

The retirement landscape in the UK has changed significantly over the last 50 years:

• In 1978, the State pension moved from what was largely a flat rate benefit to a
combination of flat rate and, for employees only, earnings-related State pensions.
• Over the years, the earnings-related element underwent a variety of changes, mostly benefits (and government costs) until in 2016 it was replaced by a new flat rate benefit.
• Final salary (defined benefit – DB) pension schemes were widespread in both the
private and public sector in the 1970s and 1980s, with personal pension plans largely limited to the self-employed.
• Years of attrition followed, and by 2025, only 3% of private sector DB schemes were still accepting new members, while about three-quarters were no longer accruing benefits for their existing members.
• From October 2012, automatic enrolment (AE) in workplace pensions was phased in, reaching a final steady state from April 2019. Workplace pensions of various types now cover about four-in-five employees and other workers, but not the self-employed.

From that history emerges a theoretical gap for those who started their working lives roughly in the fifteen years from the turn of the century. Outside the public sector, most would not have joined a final salary pension scheme, and some would have had low or even no pension scheme membership until they joined a workplace pension, thanks to the phasing in of AE.

New research undertaken by one of the UK’s major pension providers has discovered that the theory is very much a reality. It found a generation of people born between the early 1970s and late 1980s who were too young to benefit from DB schemes, but also too old to feel the full benefit of AE. Five million of the mid-lifers, currently aged 40–54, are not on track for an adequate retirement. Of that 9% of the UK adult population worst at risk are part-time workers, renters and those who have taken a career break.

The research did offer some hope for a way out of the pension mid-life crisis: start putting more into retirement plans now, as there are at least 13 years before State pension age arrives.

The value of your investment and any income from it can go down as well as up and you may not get back the full amount you invested.

14/05/2026

PPM's 6️⃣0️⃣ Second Read!

State pension age hits the 67 threshold

Were you born after 5 April 1960?

There can sometimes be a long period between when legislation becomes law and when it takes effect. The delay is often due to the legislation being only a broad framework to which a raft of detailed regulations is subsequently attached. However, there are instances where a protracted run-in is a deliberate feature. Such is the case with the State pension age (SPA) provisions in the Pensions Act 2014.

These put into law a phased one-year increase in SPA to 67 for men and women born after 5 April 1960, beginning in April 2026 and ending two years later. At the time the Act was passed in May 2014, the SPA for men was 65 and for women, about 62, on the way to an equalised SPA of 65 in March 2016. Thereafter, both men and women saw another year added gradually to their SPA, taking it to 66 in November 2018.

Unsurprisingly, the increases to SPA were – and still are – controversial. To dampen further criticism, the government said that it would provide at least ten years’ notice of any rise in SPA – hence the 12-year time lag for the Pensions Act 2014 change.

While there is a good case for giving a decade’s warning of an increase to SPA, it comes with a risk that the assumptions underlying the original announcement prove to be wrong by the time it takes effect. Unfortunately, this is the case with the latest SPA increase:

• In 2014, the then latest (2012-based) life expectancy projections from the Office for National Statistics (ONS) were that a man aged 66 in 2018 would live for 21.1 years and his female counterpart would survive another 23.7 years. The corresponding projections for men and women aged 67 in 2028 were 21.3 years and 23.8 years, justifying the one-year increase in SPA to 67 by that point.

• In 2026, the ONS life expectancy projections (2022-based) for 67-year-olds in 2028 are 18.6 years for men and 21.1 years for women.

That is a 2.7-year shorter life expectancy between the two sets of projections for both sexes. Sadly, life expectancy has not improved as rapidly as the ONS expected back in 2012.

One more reason for planning your own retirement date, rather than defaulting to the State’s choice.

PPM's 6️⃣0️⃣ Second Read!House prices versus inflation Bricks and mortar are not always a sure-fire winner. From Januar...
07/05/2026

PPM's 6️⃣0️⃣ Second Read!

House prices versus inflation

Bricks and mortar are not always a sure-fire winner.
From January 2016 to January 2026, did house prices grow faster than inflation? The answer is in the graph below.

Nationwide Building Society says the average UK house price in January 2016 was £196,829. Ten years later, it had risen to £270,873, a 37.6% increase. Over the same period, the Consumer Prices Index (CPI) increased by 40.2%.

If the result is not what you expected, it could be because you remember the unexpected boom during and immediately after the Covid-19 pandemic, but forgot the somewhat turgid period for house prices that followed. In the three years from January 2023, the average house price rose by 4.9%, while the CPI added 10.4%.

Ironically, some of the recent slowdown in house price growth is linked to general inflation. One factor that put the brake on house prices was the increase in interest rates made by the Bank of England to bring down inflation (which peaked at over 11% in October 2022). Until June 2022, the Bank of England rate was no more than 1%. As anyone facing the imminent expiry of a five-year fixed rate mortgage knows, the Bank’s action on interest rates, now compounded by the Iran war, has made borrowing considerably more expensive than half a decade ago.

The near flatlining of house prices and, until recently, cuts to mortgage rates did make life marginally easier for first-time homebuyers. That has not been good news for one group of existing property owners: buy-to-let investors. Zoopla, the property website, reported that at the start of the year, average enquiries per rental property were at their lowest level since 2019 and down a fifth on January 2025. Reduced demand has translated into slowing rental growth, which has come down from 7.8% annual growth in January 2025 to 3.1% a year later, according to data from the Office for National Statistics. In England, buy-to-let investors are
also facing the implementation of the Renters’ Rights Act, which from 1 May 2026 will put an end to no-fault evictions (‘section 21 orders’).

Buying and owning your own home generally remains a sensible move, but be wary of treating it as the only investment you need to make.

The value of the investment and the income from it can fall as well as rise and investors may not get back what they originally invested.

Past performance is not a reliable indicator of future performance.

Village Magazine May Edition
01/05/2026

Village Magazine May Edition

30/04/2026

PPM's 6️⃣0️⃣ Second Read!

Weighing up the incentives and disincentives of your tax bill

Just how much is tax disincentivising you? The latest Economic and Fiscal Outlook
from the Office for Budget Responsibility (OBR) had some disconcerting words to
share. Published alongside the Chancellor’s Spring Forecast in early March, the OBR provided a sober projection of gross domestic product (GDP):

“The tax-to-GDP ratio is forecast to increase to a post-war high of 38.5 per cent of GDP in 2030/31. And many marginal tax rates – of relevance to incentives to work, save and invest – are much higher. A higher level of the tax take increases the risk that incentives within the tax system distort or constrain economic activity by more than expected.”

As is often the case with the OBR’s words of wisdom, they need some translation:

• The tax-to-GDP ratio is a measure of the tax burden on the UK economy. In effect, the government will be taking 38.5p of every £1 the economy generates in four years’ time – the highest rate in modern times.

• Marginal tax rate is the effective rate of tax you pay on the extra £1 of income or
capital. This can be much higher than the ‘normal’ tax rates and, in extreme situations, can be over 100%.

• Incentives within the tax system distort or constrain economic activity by more
than expected. If you face a high marginal rate of tax, for example, on additional
earnings, then you might feel inclined not to accept the promotion that will give you that extra income or choose to work fewer hours at the higher pay rate.

A good example of what the OBR is concerned about can be found at the £100,000 income level. Crossing that threshold means:

• A gradual loss of the personal allowance, equating to a marginal tax rate on earnings of 60% (67.5% in Scotland) up to £125,140 of total income. Add in national insurance (2%) and, for many graduates, student loan repayments (9%), and out of every marginal £1 over £100,000 there could be only 29p (21.5p in Scotland) left to spend.

• Entitlement to tax-free childcare, worth up to £2,000 per child is lost. So too is
entitlement (other than in Scotland) worth up to 30 hours of free childcare.
The OBR plans to “conduct further analysis of UK marginal tax rates” this year, but given revenue pressures, the chances of reform look slim. Better look to your own tax planning.

Tax treatment varies according to individual circumstances and is subject to change.

The Financial Conduct Authority does not regulate tax advice.

PPM's 6️⃣0️⃣ Second Read!A noisy first quarter but what are the results? Investment markets reacted sharply to Donald Tr...
23/04/2026

PPM's 6️⃣0️⃣ Second Read!

A noisy first quarter but what are the results?

Investment markets reacted sharply to Donald Trump’s Iran ‘excursion’ in March, but over the quarter there was not as much change as the headlines might have made you believe. 2025 was generally a good year for investment markets with the UK putting in a notably good performance – the FTSE 100 was up more than a fifth over the year, beating both Europe and the US in local currency terms. 2026 started off in a similar pattern, with expectations that interest rates would continue to drift down in many countries and that inflation, if not dead, was
unlikely to be a great concern. By Friday 27 February, as the table above shows, most markets had risen above their closing levels in 2025. Japan was the standout performer, thanks to the snap election success of their new Prime Minister, Sanae Takaichi.

Then, on 28 February, the US-Israel war with Iran started.

For several months, the US had been building what Donald Trump labelled ‘an armada’ in the seas around Iran, action which prompted a rise in the oil price to a little over $70 a barrel. However, the timing of the attack was a surprise, which deeply unsettled investment markets, as was evident when trading resumed on Monday 2 March. The remainder of the month was a largely downward path, interrupted by brief rallies when it appeared that a decisive change of
mind by Trump might prevail. By the end of March and the first quarter, with oil over $100 a barrel, a clean resolution looked unlikely.

Stand back a little and look at investment markets’ performance across the quarter and the picture is not quite as you might imagine:

• While equity markets fell in March, the falls were mostly matched by the increases in January and February. If you are one of those people who only look at quarterly
valuations, you might not even register the ‘exciting’ three months that have passed.

• Gold, the classic safe haven, investment, proved anything but. Its dollar price fell by 10.3% in March, although over the quarter it gained 7.7%.

• Arguably, the rise in oil prices had the greatest effect on government bond markets, as bond investors loathe inflation. The UK gilts market was among the hardest hit, which bodes ill for a government that plans to borrow over £250 billion in 2026/27.

The first quarter of 2026 has provided plenty of noise – and a reminder that the short-term cacophony can be just a little deafening.

The value of your investment 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. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.

PPM's 6️⃣0️⃣ Second Read! It’s not just how long you live…New research from the Office for National Statistics casts a d...
16/04/2026

PPM's 6️⃣0️⃣ Second Read!

It’s not just how long you live…

New research from the Office for National Statistics casts a different light on life expectancy.

“How long am I going to live?’ is one of those questions that we tend to pay more attention to, the older we are. One quick way to find an answer is to use the Office for National Statistics (ONS) life expectancy calculator. That will tell you that if you are a baby boy aged 1, your life expectancy is 87 years, 4 years less than your twin sister. If you are 65, the corresponding averages are 85 years and 88 years.

Those numbers need qualification, which is why other answers are easy to find:

• They are averages and, as experience tells us, not everyone lives an average lifespan. For example, at age 65, the ONS calculated that there is a 1-in-4 chance of a man living until 92 and a woman to 95.

• The figures are based on the UK population, so bundle together cigarette smokers (still about 12% of the UK adult population) and non-smokers.
The single UK figure also hides significant regional differences. ONS research suggests a ten-year difference in male life expectancy at birth between Blackpool and the London Borough of Kensington and Chelsea.

One aspect of the how-long-will-I-live question, which attracts less attention is healthy life expectancy. The ONS defines this as a measure of health-related wellbeing that represents the average time an individual is expected to live in "very good" or "good" general health, based on how individuals perceive their general health. The latest ONS research, published in February 2026 using 2022–24 data, shows at birth:

• men can expect to have a healthy life expectancy of 60.7 years; and
• women, 60.9 years.

Those figures are down by 1.8 years and 2.5 years, respectively, from the previous three-year non-overlapping period (2019–21).

Similar issues about averages and the bundling of different lifestyles and regions apply to the analysis of healthy life expectancy as to general life expectancy. However, the point that stands out is the gap between the two. This has important consequences for financial planning, particularly for retirement provision. Building in a reserve fund to help with the costs of failing health should be part of any long-term plan.

The value of your investment and any income from it can go down as well as up and you may not get back the full amount you invested.

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