5 horrifying mistakes that could scupper your financial future

15 October 2026

Halloween is all about the scare factor – and its commercial relevance in the UK has grown.

According to Statista, the amount UK consumers spend on Halloween celebrations has quadrupled over the last 13 years.

Indeed, in 2025, GlobalData reports that spending reached approximately £537 million – even though 6 in 10 Halloween shoppers said they planned to spend less due to financial constraints.

If these scary sums haven’t already spooked you enough, keep reading to discover five financial mistakes that could derail your long-term future – and how to avoid the booby traps.

1. Delaying saving for your retirement

Not building a retirement savings fund is one of the scariest financial mistakes you can make.

The maximum payment from a new State Pension – subject to National Insurance contribution (NIC) history – is just £241.30 a week in the 2026/27 tax year (£12,548 a year).

Although the State Pension provides a useful regular income that’s guaranteed and payable for life, it’s unlikely to be enough to live comfortably on.

To ensure you have an adequate income in retirement, it’s essential to make your own arrangements. Building your own pension fund could provide a more comfortable retirement, minus money worries that could cause sleepless nights.

Remember, a pension is a long-term investment, not normally accessible until 55 (rising to 57 from April 2028). The fund value may fluctuate and can go down, which could impact the level of pension benefits available.

2. Leaving money on the table

Something genuinely terrifying is the idea of turning down free money – especially when it’s money owed to you by the government.

One of the many financial benefits of saving into a pension is the tax relief you get on contributions.

Basic-rate relief is added at source, meaning that for every £80 you contribute, the government adds £20, bringing the total to £100.

If you’re a higher- or additional-rate taxpayer, you’ll need to claim additional relief through your Self Assessment tax return.

Although it’s a relatively straightforward process, FTAdviser reports that pension savers could be forgoing more than £1 billion every year – and all because high earners are missing a trick by not claiming the tax relief they are owed.

If you’re claiming higher rates of tax relief, it makes sense to complete your tax return as soon as you can. After all, the money will work far harder if it’s in your account – or in your pension – than with HMRC!

Levels of, bases of, and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.

3. Not maintaining an adequate emergency fund

The frightening thought of a major household emergency, such as a broken-down boiler in the middle of winter, is enough to give anyone the shivers.

Paying to get it fixed at short notice could cause a financial headache. Without savings, you may have to resort to using a credit card, with the associated issues around subsequent repayments and accumulating interest.

Having an emergency fund – ideally with enough cash to cover between three and six months of normal monthly expenses – could prevent unexpected bills from derailing your finances.

To ensure you can lay your hands on extra cash when you need it, keep your emergency fund in an instant access savings account.

4. Holding too much cash

Sudden and dramatic stock market falls can be terrifying.

If you have a lot of money invested, it can be unnerving to see the value of your portfolio decline suddenly. But it’s important to remember that the nature of stock markets means they rise and fall as share values fluctuate.

Markets have fallen precipitously before – think: the 2008 financial crisis, the Covid pandemic, and Trump tariff turmoil.

However, history has shown that markets recover, and investing excess cash can lead to long-term potential growth.

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.

Rising inflation, on the other hand, can be far scarier. Over the long term, inflation reduces the spending power of your money and, unless there’s a period of negative inflation, those increases cannot be reversed.

So, while holding your money in a savings account may appear to be a safer option than investing in shares and investment funds, inflation means your money is likely to be losing value in real terms.

Ultimately, if your investment horizon is five years or more, investing your money rather than simply saving it could prove a more profitable long-term financial decision.

5. Thinking “it won’t happen to me”

It’s all too easy to ignore insurance in the belief that life won’t come unstuck, but forgoing insurance could haunt your financial future.

Indeed, if you’re unprotected, unexpected events could be the catalyst for a sobering lifestyle shift.

Worryingly, the Iress Financial Readiness Index 2026 suggests that only 19% of British adults feel they are adequately prepared to meet all their financial needs.

A little thought and preparation now could save you and your family a financial nightmare at a time when you’re least able to cope with more stress.

In short, if protection isn’t part of your financial plan already, now’s the time to remedy that.

While the type and level of protection that’s appropriate for you and your family will depend on your circumstances, you could safeguard your family’s finances and future lifestyle with:

• Life insurance
• Income protection
• Critical illness cover
• Private health insurance.

Having adequate protection in place could not only help cover costs if you face a loss of income, but it could also allow you the time you need to focus on your recovery rather than financial worries.

Life insurance and financial protection plans typically have no cash-in value at any time, and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Get in touch

We’re here to help you banish money worries and build the fulfilling life you and your family deserve.

To find out more about how we can help you avoid scary financial pitfalls now and in the future, email [email protected] or call 0161 8080200.

Please note

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

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

The Financial Conduct Authority does not regulate tax advice.