Monthly Archives: June 2026

Retirement planning has always involved uncertainty.

But over recent years, many people approaching retirement will have noticed something different, global events now seem to affect personal finances far more quickly and far more directly than they once did.

Inflation spikes, rising interest rates, market volatility, energy price shocks and geopolitical uncertainty have all become regular features of the financial landscape. For retirees and those nearing retirement, that can understandably create concern around one important question:

How do you make your money last?

Recent research from Morningstar explored exactly this issue, revisiting the widely discussed “4% withdrawal rule” and how retirees can sustainably draw income from investments during retirement.

The findings offer some useful reminders, particularly during periods of uncertainty.

The Challenge Facing Modern Retirees

One of the key themes in the research is that retirement planning today is not simply about investment growth.

It is also about managing uncertainty over potentially decades of retirement.

No one can predict with certainty:

• how markets will perform;
• how long inflation may remain elevated;
• what interest rates will do; or
• how long retirement itself may last.

According to Morningstar’s latest UK research, a withdrawal rate of around 4% still appears broadly sustainable for many retirees over a 30-year period, although this depends heavily on factors such as investment mix, inflation and flexibility in spending.

What is particularly interesting is that the research places increasing importance not just on returns, but on resilience and adaptability.

Why Inflation Matters More Than Ever

Inflation can quietly become one of the biggest risks to retirement income.

Even relatively moderate inflation can significantly reduce purchasing power over time. Recent years have demonstrated how quickly rising prices can affect everyday living costs, from energy bills and food prices through to travel and insurance costs.

Morningstar’s research highlights that inflation assumptions play a major role in determining sustainable retirement income levels.

For retirees relying on fixed withdrawals, periods of prolonged inflation can place additional pressure on portfolios, particularly if markets are also volatile at the same time.

This is one reason why retirement planning increasingly needs to be viewed as an ongoing process rather than a one-time calculation.

Flexibility Can Matter More Than Precision

One of the more reassuring takeaways from the research is that retirement planning does not need to rely on rigid rules alone.

In fact, flexibility may be one of the most valuable tools retirees have.

Morningstar’s analysis suggests that retirees who are willing to adjust spending during more difficult market periods can often withdraw more sustainably over the long term.

That does not necessarily mean dramatic lifestyle changes. More often, it simply means recognising that retirement income planning works best when it can adapt to changing conditions.

The reality is that retirement rarely follows a perfectly straight line. Markets fluctuate, priorities evolve and unexpected events inevitably occur along the way.

Balancing Stability and Growth

Another important theme is the balance between investment growth and stability.

The research notes that portfolios with lower levels of volatility can sometimes support more sustainable retirement income because large market falls early in retirement can have a lasting impact on long-term outcomes.

This is often referred to as “sequence of returns risk”, the danger of experiencing significant market declines in the early years of retirement while simultaneously drawing income from investments.

For many retirees, this reinforces the importance of diversification and maintaining a portfolio designed around both long-term growth and shorter-term resilience.

Financial Planning Beyond the Headlines

Periods of economic uncertainty can naturally lead people to focus on short-term headlines.

But retirement planning is ultimately about much longer time horizons.

The most effective plans are rarely based on trying to predict every market movement or global event correctly. Instead, they are usually built around creating enough flexibility, resilience and clarity to navigate uncertainty with confidence.

At Digby Associates, we believe good financial planning should provide reassurance as well as strategy, helping people make thoughtful, informed decisions even when the wider world feels unpredictable.

If you would like to review your retirement plans or discuss how current economic conditions may affect your long-term financial planning, our team would be very happy to help.

Most people have heard of doomscrolling.

The habit of endlessly consuming negative news, worrying headlines and social media updates can leave us feeling anxious, overwhelmed and uncertain about the future.

Increasingly, another term is entering the conversation: doomspending.

The phrase has grown in popularity over recent years as commentators and researchers have observed a trend of consumers spending money in response to economic uncertainty, rising living costs and concerns about the future.

But while the term may be new, the behaviour itself is not.

A Very Human Response

People have always spent money for reasons that go beyond practical need.

Whether it is comfort eating after a difficult day, booking a holiday during a stressful period, or buying something simply because it makes us feel better, spending has long been tied to emotion as much as logic.

What’s changed is the world around us.

We now carry online shops in our pockets, receive personalised advertising throughout the day and consume a constant stream of news and social media updates. Against that backdrop, it is perhaps unsurprising that spending can sometimes become a response to stress, uncertainty or anxiety.

In simple terms, doomspending describes the tendency to spend money in an attempt to regain a sense of control, comfort or enjoyment when the wider world feels uncertain.

Why Is It Happening Now?

Recent years have brought no shortage of reasons for people to feel unsettled.

The pandemic, inflation, rising energy bills, higher mortgage rates, geopolitical tensions and an increasingly relentless news cycle have all contributed to a backdrop of uncertainty for many households.

Research suggests economic uncertainty may be influencing spending habits. In the United States, where consumers have faced many of the same inflationary and economic pressures seen in the UK, a survey reported by Psychology Todayfound that 43% of millennials admitted to making purchases in response to concerns about the future, a behaviour that has become known as “doomspending”.

While the reasons vary, the underlying theme is often similar:

“If the future feels unpredictable, I may as well enjoy myself today.”

It’s a mindset many people can relate to, even if they don’t recognise it as doomspending.

The Psychology Behind It

One of the reasons doomspending can be so powerful is that it provides an immediate reward.

Making a purchase can trigger a release of dopamine, the brain chemical associated with pleasure and reward. For a brief moment, buying something can create a sense of satisfaction, control or relief.

The challenge is that those feelings are often temporary.

As Morgan Housel writes in The Psychology of Money:

“Doing well with money has little to do with how smart you are and a lot to do with how you behave.”

It’s a useful reminder that financial decisions are often emotional before they are rational. Understanding our own behaviour can be just as important as understanding investment markets or interest rates.

Treating Yourself Isn’t the Problem

Of course, not all discretionary spending is bad.

Enjoying experiences, treating yourself occasionally and spending money on things that genuinely improve your quality of life can be an important part of a healthy relationship with money.

The more important question is why we are spending.

Are we making conscious decisions that align with our priorities and values? Or are we spending primarily to escape feelings of stress, boredom or uncertainty?

Simply pausing to ask that question can often lead to better financial decisions.

Building Financial Confidence

One of the most effective ways to reduce financial anxiety is to create greater clarity around your finances.

Having a realistic budget, maintaining emergency savings, understanding your long-term goals and having a financial plan in place can help create a sense of control when uncertainty inevitably arises.

Financial planning cannot remove uncertainty from life. Nothing can.

What it can do is help ensure that important decisions are guided by your goals rather than your fears.

Final Thoughts

Doomspending may be a growing financial buzzword, but the behaviour behind it is as old as money itself.

Humans have always looked for ways to feel safer, happier or more in control during uncertain times. Today’s difference is simply that spending has become easier, faster and more accessible than ever before.

Understanding the psychology behind our financial decisions does not mean never treating ourselves or enjoying our money. Rather, it means recognising the difference between spending that genuinely adds value to our lives and spending that is simply an attempt to ease temporary feelings of uncertainty.

The future will always contain unknowns. The goal is not to eliminate uncertainty, but to ensure our financial decisions are driven by our priorities rather than our anxieties.

For many grandparents, one of the greatest pleasures of later life is being able to help the next generation.

Whether it’s contributing towards a house deposit, helping with school fees, supporting grandchildren through university or simply lending a hand with everyday costs, financial support can make a meaningful difference at a time when many younger families are facing significant pressures.

In many ways, the traditional flow of wealth through generations is changing.

Rather than waiting until an inheritance is received many years in the future, more families are choosing to provide support when it can make the biggest impact today.

A Growing Role for Grandparents

The financial challenges facing younger generations are well documented.

House prices remain high, childcare costs continue to rise and many families are balancing mortgages, household bills and the increasing costs of raising children.

Against that backdrop, grandparents are often stepping in to help.

For some, that support may involve helping a grandchild onto the property ladder. For others, it could mean contributing towards school fees, paying into a Junior ISA or helping fund opportunities and experiences that may otherwise be out of reach.

For many families, this support has become an important part of financial planning across generations.

Seeing the Difference

There is another reason many people choose to give during their lifetime.

They get to see the impact.

Helping a grandchild buy their first home, supporting a child through a difficult period or contributing towards education can often feel far more tangible than leaving money behind many years in the future.

For many people, there is enormous satisfaction in knowing that their support is making a difference now.

Balancing Generosity With Financial Security

Of course, generosity should never come at the expense of your own financial wellbeing.

One of the most common mistakes people make is focusing entirely on helping family without fully considering how those gifts might affect their own long-term financial security.

Questions worth considering include:

• Can you comfortably afford the support you’re providing?
• Will the gift affect your retirement income?
• Have you retained sufficient emergency savings?
• Could future care costs affect your plans?
• Are gifts being made in the most tax-efficient way?

These are not reasons not to help. Rather, they are reasons to plan carefully.

Making the Most of Available Allowances

Many people are surprised to discover that there are several ways of passing on wealth efficiently during their lifetime.

Annual gifting allowances, gifts from surplus income and other inheritance tax exemptions can all play a role in helping family members while potentially reducing the value of an estate for inheritance tax purposes.

The key is ensuring that gifts are structured appropriately and that good records are maintained.

A Family Conversation

Financial support is rarely just about money.

Often it is about values, opportunities and helping the next generation build confidence and security.

The most successful family wealth transfers tend to be those that are discussed openly and planned thoughtfully, ensuring expectations are clear and decisions are made with the interests of all generations in mind.

Final Thoughts

Helping children and grandchildren can be one of the most rewarding uses of wealth.

The challenge is finding the right balance, providing meaningful support to the people you care about while maintaining confidence in your own financial future.

With careful planning, it is often possible to achieve both, and for families to make informed decisions about gifting, inheritance planning and long-term financial security, ensuring generosity today does not compromise peace of mind tomorrow.