As we approach the middle of the year, I thought it prudent to address the five most commonly searched and asked personal finance questions in 2025, based on search data and what we as advisers report hearing the most.
While this should be equally as valuable to you, I'd be grateful if you could also forward this email to five people you know, for example, friends or colleagues, who are thinking about their own personal finances, as it will likely be relevant to them as well.
Coming in at the #1 most searched personal finance question in 2025:
1. How much money do I need to retire?
This is consistently one of most searched personal finance questions, and the answer is always "it depends"!
Your current savings, current debt, desired retirement lifestyle, and expected retirement age will determine the answer. There's no single number that fits everyone and it depends on how similar your retirement lifestyle will be to your current lifestyle in terms of spending, where you plan to live, and at what age you want to stop working.
A useful starting point is to multiply your desired annual income in retirement by 25. It is known as "the rule of 25" and is a back-of-the-envelope calculation designed to estimate the total nest egg needed to generate enough income so you don't outlive your investments.
For example, If you need your pension to provide £50,000 per year, multiply that by 25 to get a target savings goal of £1.25 million. I.e. 50,000x25=1,250,000
This approach is linked to the well-known "4% drawdown rule", which suggests that withdrawing 4% of your portfolio in the first year of retirement and then adjusting future withdrawals for inflation, has historically allowed a balanced investment portfolio to last at least 30 years.
It is of course not an exact science, and should be used only as a reference point. There are some careful caveats to watch out for when making this calculation:
• Focus on your expected expenses, not simply your current income.
• Create a budget spreadsheet for retirement years, pretending you are there already.
• Factor in any other sources of retirement income, such as rental income, pensions or investments.
• Adjust your plan based on your intended retirement timeline.
• Factor in inflation at a higher than average/targeted level, say 3%.
• Be cautious about overestimating long-term investment returns or underestimating inflation.
As with any financial plan, retirement included, there are many moving parts and variables, so, it's worth speaking with a financial adviser to create a plan specific to your circumstances.
One of the biggest mistakes is leaving this calculation too late, or assuming a pension or government support will cover the gap. For expats especially, state pension or social security entitlements can be complicated or limited, which means your personal savings and investments need to do more of the heavy lifting.
Getting a clear picture of where you stand and what you need to do to close any gap is exactly what a good financial plan should give you.
The #2 most searched personal finance question of 2025:
2. How do I start investing, and how much do I need to start?
A top question in 2025, with many people unsure how much they can afford to invest and worried about risk.
The common barrier is thinking you need to be wealthy to begin. The biggest myth about investing is that you need a lot of money to get started. In reality, the most important step is simply to begin! Small, consistent contributions made early can often outperform larger contributions made later, thanks to the power of compounding growth.
Before you invest however, make sure you have an emergency fund (addressed in #4 below) in place and any high-interest debt paid off. After that, even a modest monthly amount put into a well-diversified portfolio can make a significant difference over time.
A second mistake is waiting until you feel confident enough to invest. That confidence rarely comes from reading more articles or trying to select the 'right time', but rather it comes from having a clear plan tailored to your own goals, timeline, and appetite for risk.
A financial adviser can help you cut through the noise, avoid common pitfalls, and create an investment strategy tailored to your specific circumstances, ensuring your money is working as effectively as possible for your long-term goals.
The #3 most searched personal finance question of 2025:
3. Should I pay off debt or invest?
A recurring theme in 2025, people are torn between paying down debt and putting money to work. The general guidance depends on the interest rate of your debt. To oversimplify things and as a general rule of thumb:
• interest rate below 6%, invest
• interest rate above 6%, pay off debt first
If the interest rate on your debt is higher than the returns you could reasonably expect from investing, typically around 6% as a conservative benchmark, then paying off that debt first is often the smarter move. High-interest debt, like credit cards, can quietly erode your finances faster than most investments can grow them.
That said, it doesn't always have to be one or the other. Many people benefit from a split approach, making minimum payments on lower-interest debt while simultaneously contributing to and building an investment portfolio.
The right balance depends on:
• the type and interest rate of your debt
• your income and cash flow
• your financial goals
• your investment timeline
• your tolerance for risk
This is the kind of decision that looks simple on the surface but has a big long-term impact, which is why getting personalized advice rather than relying on general rules of thumb can make a meaningful difference to your financial outcome.
The #4 most asked personal finance question in 2025:
4. How much should I have in an emergency fund?
An emergency fund is the foundation of any solid financial plan, it's the buffer that stops a bad month from turning into a personal financial crisis.
The traditional advice is to save three to six months of current living expenses, particularly for anyone who is self-employed, works in a volatile industry, or lives abroad where unexpected costs such as medical bills, repatriation, and currency rate swings can be harder to predict.
The key is that this money should be liquid, meaning easily accessible, and kept separate from your investments. It is an 'emergency fund', not to be used as a backup for overspending or discretionary purchases.
Building an emergency fund can feel slow, especially if you're also trying to invest towards your retirement, children's education fees, or pay off existing high interest debt. The practical approach is to treat it like a monthly bill, a fixed amount that leaves your account every month automatically until you hit your target. Once it's in place, you rarely need to think about it again, but the peace of mind it provides is significant.
For expats in particular, having this cushion is not a 'nice-to-have', it's essential, given the additional uncertainties that come with living and working in a foreign country.
Coming in at the #5 most asked personal finance question for 2025:
5. Should I buy or rent a home?
This remains one of the most searched personal finance questions every year, particularly in today’s higher interest rate environment and among expats weighing flexibility against long-term stability.
The answer hinges on financial stability, flexibility needs, local market conditions, and long-term plans, all things a financial adviser is well placed to help with.
The buy-versus-rent debate is one of the most emotionally charged financial decisions people face, partly because owning a home carries so much cultural and societal weight. But from a purely financial perspective, buying isn't always the better option.
Purchasing a property ties up a significant amount of capital in a down payment or a cash purchase, comes with high transaction costs, maintenance responsibilities, and ongoing taxes. If you're not in (or won't be in) the location of purchase for the long term for for the foreseeable future, those costs can easily outweigh any gains in expected rising property value.
Renting, on the other hand, can be seen as 'spending money on someone else's asset' but keeps your capital flexible and available for other investments, such as your retirement, your child's future education costs, or for any other planned future expensive purchase.
For expats, this decision is even more nuanced. Your timeline in a country may be uncertain, local property laws can restrict foreign ownership, and currency risk can affect the real value of a property purchase over time. The right answer depends on your personal stability, your financial goals, and the specific market you're in.
Rather than following conventional wisdom, it's worth running the numbers for your own situation and factoring in not just the cost of buying, transfer fees, maintenance fees, furniture costs, repair expenses, building and land tax, common fees, etc. but the opportunity cost of the capital you'd be committing to a property versus putting it to work towards other financial goals, such as retirement.
If you would like to go through these questions, or would like to speak about your own financial situation and how you can improve your long-term position, do reach out and I'll be happy to discuss them with you.