5 Mistakes to avoid when planning for your future
By Legacy Wealth Planning, Essex
Planning for your financial future is one of the most important investments you can make in yourself and your family. But even with the best intentions, it’s easy to make critical errors that could cost you time, money, or peace of mind.
Here are five key mistakes to avoid when shaping your financial legacy—and how to make sure you’re planning wisely from the start.
1. Delaying the Start of Your Financial Planning
The earlier you start planning, the more options and time you have to grow your wealth. Compound interest, pension contributions, and long-term investments can all work in your favour—if given enough time.
📊 Did You Know?
Someone saving just £200 per month from age 25 could build over £320,000 by retirement, compared to only £92,000 if they begin at 45.
(Source: Pensions Policy Institute)
✅ Tip: Don’t wait for the “perfect time.” Start now with small, consistent steps and scale up as your situation improves.
2. Relying Only on a Workplace Pension
Auto-enrolment pensions are a good foundation, but rarely sufficient to support a comfortable retirement on their own.
According to the FCA and MoneyHelper, most people will need about two-thirds of their pre-retirement income to maintain their lifestyle in retirement.
✅ Tip:
Consider personal pensions or Stocks & Shares ISAs
Top up your contributions where possible
Review annually to stay on track
3. Ignoring Inflation and Rising Costs
Inflation reduces the purchasing power of your savings. With the cost of living increasing year-on-year, not accounting for inflation in your plan could lead to a shortfall in the future.
📈 Example:
£100 today will be worth around £67 in 20 years at a 2% annual inflation rate.
✅ Tip: Choose investment strategies that typically outpace inflation, and review your plan regularly to reflect economic changes.
(Source: Office for National Statistics)
4. Not Addressing Inheritance Tax (IHT)
Many families overlook the impact of Inheritance Tax, currently charged at 40% on estates above the £325,000 threshold (or £500,000 with the residence nil-rate band).
Without early planning, a significant portion of your estate may go to HMRC instead of your loved ones.
✅ Tip:
Use gifting allowances and trusts
Consider life insurance in trust
Seek IFA guidance to structure your estate tax-efficiently
(Source: HMRC – Inheritance Tax Thresholds)
5. Trying to Plan Without Professional Advice
Navigating pensions, tax, investments, and estate planning is complex. Unregulated sources (or DIY attempts) can lead to missed opportunities or irreversible mistakes.
💬 “Clients who received financial advice were on average £47,000 better off after 10 years.”
(Source: International Longevity Centre UK)
✅ Tip: Work with a regulated Independent Financial Adviser (IFA) who understands your goals and builds a bespoke plan around them.
Final Thoughts
Avoiding these five common mistakes can set you on a clear path toward financial freedom. At Legacy Wealth Planning, we’re here to help you build, preserve, and pass on your wealth in a way that reflects your goals and values.
Book Your Free Initial Consultation
If you're ready to start your journey—or want a second opinion on your current plan—get in touch with our team today.
Sources:
Pensions Policy Institute – pensionspolicyinstitute.org.uk
Financial Conduct Authority (FCA) – fca.org.uk
MoneyHelper – moneyhelper.org.uk
HMRC Inheritance Tax – gov.uk/inheritance-tax
Office for National Statistics – ons.gov.uk
ILC UK – ilcuk.org.uk
*An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both.
*The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
* A pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
*HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
*Trusts and Taxation are not regulated by the Financial Conduct Authority.