Fear is a natural part of being human. It has helped us recognise threats and react quickly to danger.

But while this instinct has been integral for our survival throughout history, it can sometimes hold you back when it comes to managing your wealth.

Fear often leads to hesitation, missed opportunities, and decisions driven more by emotion than by logic.

So, with Halloween around the corner, continue reading to discover five common financial fears and how you can overcome them.

1. “I’m scared I’ll run out of money in retirement”

Retirement is one of life’s most significant milestones, so it’s understandable that you might feel uneasy about whether your savings will last. After all, you are moving from earning an income to relying on the wealth you’ve accumulated.

To ease any fears of falling short, it’s worth reviewing your pension contributions now. Increasing them, even slightly, can significantly bolster the value of your fund over time.

The earlier you start, the more you may benefit from the power of compounding. This is when your investment returns generate further returns, creating a “growth on growth” effect.

If you’re nearing the next phase of your life and feel you still don’t have enough, you could also consider “phasing” your retirement. This involves continuing to work in some capacity but reducing your hours, allowing you to help your retirement fund continue growing.

It’s also a good idea to ensure that you’ve maximised your State Pension entitlement, as this can be a helpful source of income during retirement.

Read more: Falling behind on your pension? Here are 5 steps to get you back on track

Taking proactive steps today could reduce the anxiety of wondering whether you’ll have enough later in life.

2. “I’m worried I’ll lose money if the market dips”

It’s entirely natural to worry about losing money investing in the stock market, especially during periods of volatility. After all, you’ve likely worked hard to accumulate wealth, and market fluctuations can make even the most seasoned investor uneasy.

However, it’s generally best to view investing as a long-term project.

While markets often fluctuate in the short term, history has shown that you could be rewarded for your patience. The phrase, “Time in the market, not timing the market”, exists for a reason.

Capital Group reports that in the 82 years up to 2025, 100% of 10-year periods have been positive ones. Investors who have stayed in the market through periods of declining stock prices have historically been rewarded for their patience and resilience.

This shows that by staying invested through market volatility and maintaining a diversified portfolio that aligns with your goals and risk tolerance, you reduce the risk of short-term downturns.

Working with a financial planner could also provide reassurance, as they can ensure your strategy remains on track even when times are uncertain.

3. “I’m fearful that my children’s inheritance will be eroded by tax”

Without a solid estate plan, Inheritance Tax (IHT) can significantly reduce the amount your loved ones receive after you pass away.

As of 2025/26, your estate can usually pass on:

• £325,000 from the base nil-rate band
• £175,000 from the residence nil-rate band.

Additionally, you can also leave everything to your spouse, who will then inherit your unused allowances, meaning you could collectively pass on £1 million. Any amount above these thresholds typically faces a 40% IHT charge.

It’s vital to utilise as much of this as possible, but if you’re still concerned about IHT, there are steps you can take to protect your family’s inheritance, such as gifting.

The annual gifting exemption allows you to make IHT-free gifts each tax year without any tax implications. In 2025/26, that stands at up to £3,000.

There are also several other allowances you can make use of, such as:

• Wedding gifts of up to £5,000, depending on your relationship with the couple
• Small gifts up to £250 to unlimited people, provided they’re not part of a larger gift
• Regular gifts from income, so long as they don’t affect your standard of living.

Over time, these allowances could significantly reduce the size of your taxable estate and the eventual IHT bill your loved ones might face, giving you peace of mind that your wealth will reach your intended beneficiaries.

Several other methods can help limit IHT, such as trusts or Business Relief schemes. Given the complexity of balancing such strategies, it’s important to speak to a financial planner first.

4. “I’m nervous about how I’ll spend my time in retirement”

The transition from your working life to retirement can often be disorientating, and it’s common to feel uncertain about how you’ll fill your days.

To avoid this, it’s worth thinking carefully about what you want from the next phase of your life. For instance, you may dream of:

• Travelling the world
• Learning new skills
• Supporting younger family members
• Dedicating more time to hobbies or volunteering.

Writing down these goals could help you visualise your ideal retirement as well as estimate how much it will cost, bringing clarity and easing financial anxiety.

Knowing the experiences you desire most and understanding their cost allows you to plan your spending more confidently.

5. “I’m anxious about how I’ll pay for care”

Another common financial fear is how you might afford long-term care later in life.

Care can be expensive in the UK, with carehome.co.uk reporting that, as of October 2025, the average yearly cost of residential care for self-funders is £67,496, or £79,820 for nursing home care.

This is why it’s so important to plan ahead. You could, for example, ring-fence a portion of your retirement savings specifically for potential care needs.

You may also want to take the time to revisit your estate plan to help ensure more of your wealth is protected from eventually being used to cover care costs.

It’s also vital not to draw unsustainably from your pension in the early years of retirement, as doing so could leave you without the wealth needed to fund care later in life.

Addressing these issues early could help you maintain control over your choices and reduce any uncertainty-induced stress.

Get in touch

We can help you manage your wealth and alleviate any financial fears you may have.

Email info@blueskyifas.co.uk or call us on 01189 876655 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) 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.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate tax planning.