My winners and losers for 2024

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Tis the season and all that, and – unless I’m very much mistaken – this will be the last Scotsman Money supplement of 2024.

It’s been great to have a publication which is based here, and written by and for people who live here. Many personal finance issues are universal and don’t need presented with a tin of tartan paint, but that doesn’t mean we shouldn’t write about them and, if we get to make the odd point or two in our own accent, then that’s hardly the worst thing in the world.

Part of what we do at my firm is keep a weather eye on what’s going on in the sector so that you don’t have to, and there has been no shortage of stuff to think about in 2024. So please accept this humble offering of my assessment of the personal finance winners and losers this year, and a few thoughts on how to win in 2025. Fair warning – finance is inherently political and inherently personal – I don’t know your politics or your financial situation and you don’t need to know mine. I’m going to limit myself here to just the money stuff. Here we go – see which of these you agree with...

Loser wealthier pensioners

Yes, the better-padded pensioner still benefited from Labour’s commitment to the triple lock – something which surely must go the way of all flesh at some point, purely on affordability grounds – but the introduction of inheritance tax (IHT) to unused pension funds and death benefits from 2027 was a big change.

For most, the idea of “unused pension funds” is akin to Billy Connolly’s “an ideal way to use up that left-over venison”, but still.

Winner (sort of and relatively) less wealthy Scottish pensioners

Again, the triple lock scores for those less fortunate in retirement – currently the state pension is the most gold-plated scheme imaginable and it’s easy to forget that. All attention in 2024, though, was on the removal of the winter fuel payment for all those not on Pension Credit.

The Scottish Government cocked a snook at the Chancellor by re-introducing a £100 universal winter fuel payment which apparently will turn up later in 2025. Some 900,000 Scottish pensioners will be £100 better off than their oppos south of the Border, which probably won’t pay for the extra heating you need in Thurso as compared to Thurrock, but anything’s better than nothing.

Loser doomscrollers and panickers.

More Budget-related jeopardy here – those who spent a little bit too much time doomscrolling on social media, and listening to some of the shriller commentators out there, may have placed a bet on tax-free cash in pensions being removed and whipped their cash out to protect it from a hungry Reeves. Spool forward a month or two and – what do you know?! – that change didn’t happen.

Cue an equal and opposite rush to put tax-free cash back in, under cooling-off rules. Unhappily, HMRC clarified this week that cooling-off doesn’t apply to tax-freecash – money can go back into a pension but it won’t carry the tax-free rights.

This will likely be challenged by providers who intended to allow full cooling-off, including Edinburgh-based Abrdn and Nucleus, but what it all really goes to show is you should only make changes once you actually know the facts.

Winner investors who listen to their planners

The equal and opposite of the last one – those who were counselled to sit tight and wait and see have saved themselves a load of admin and heartache. Planners – decent ones anyway – will tell you not to let the tax tail wag the investment dog.

Loser landowners and farmers

Yet another Budget one here – this was the most consequential personal finance Budget for many years. The arguments are well-ventilated on both sides but, at best, the changes to agricultural property relief mean work and expense to get proper estate planning redone and, at worst, expose beneficiaries to some pretty big IHT bills.

Winner diversified investors Yes, the magnificent seven tech stocks delivered eye-watering performances, but if you were properly diversified you’d have caught that, and plenty more besides, without exposing yourself to massive concentration risk. All told it’s not been a bad year for well-diversified equity investment. So far. We’re not done yet.

Loser me (and everyone whose fixed-rate mortgage is up soon)

Hands up who’s facing the prospect of coming off a 1.5 per cent or so mortgage in the next few months? Let’s form a club, and soothe each other’s sorrows with the cheapest possible drink we can find.

So there we have it – I hope your financial 2024 was bearable and you’re well set for 2025.

I said I’d share a few thoughts on how to win next year and my thoughts are these:

◆ Don’t try too hard – chasing around financially for returns or tax breaks is exhausting, dull and normally doesn’t work.

◆ Have a plan – or make one if you don’t – and stick to it; make all your financial decisions intentional.

◆ Get help if you can – this stuff is hard to do by yourself.

Finally, have a lustrous festive season, and here’s to a prosperous 2025. And look out for more insight from The Lang Cat in Scotsman Money next year.