Leaving a Positive Legacy: How to Make a Difference with Your Time and Money

Leaving a planet-positive legacy to your grandchildren

Hey, be honest — when’s the last time you really looked at your pension statement?

Not just glanced at the number, but paused and asked: “Will this actually cover the life I’m planning to live?”

Because the truth? Inflation is quietly eroding your buying power. Tax rules are shifting under your feet. And from 2027, even your pension could fall into the inheritance tax net (IHT).

It’s a lot. And it means one thing — the old idea of retirement? It's outdated.

Legacy isn’t just about what you leave behind anymore. It’s about how you live now.

The choices you make. The causes you support. The footprint you leave — financial, social, and environmental.

So, if you're thinking long-term, think bigger than just numbers.

Think values. Think of the impact.

Stick with me — because your pension isn’t just a pot of money. It’s a tool for shaping the future.

1. The Shifting Landscape of Legacy

In the past, pensions served a dual purpose: providing secure income for retirement while also creating a reserve that could be passed on.

Over time — especially with the rise of flexible defined-contribution schemes — some began placing more emphasis on the inheritance potential.

But now, that balance is shifting again. And it’s not just about tax.

The reality is that full-time retirement is becoming less affordable. More people are drawing heavily on their pensions to fund everyday life, leaving less behind as a bequest — not by choice, but by necessity.

From April 2027, pension lump sums will also become part of your taxable estate. And with inheritance tax thresholds frozen until 2030, more estates will be drawn into the tax net.

So pensions are returning to their core purpose: providing reliable, flexible income for life.

This shift — from a blend of goals to a stronger income-first focus — reflects the financial realities of today’s retirees. Legacy still matters. But the priority, increasingly, is ensuring stability and quality of life for yourself and your partner.

Ask yourself:

How much income will you genuinely need to live well?

And how can you secure that income sustainably for the decades ahead?

Because in the end, a future-focused retirement plan puts your wellbeing first — with inheritance as a welcome, but secondary, outcome.

2. Rethinking What Legacy Really Means

When financial inheritances shrink, the significance of non‑financial legacy grows. Ultimately, your legacy is less about pounds left behind and more about the imprint of your values, stories and actions.

Imagine you are on your deathbed. What do you want your children or loved ones to remember about you?

●      Values over valuables: Traits like compassion, resilience, integrity, or environmental stewardship can ripple through generations — long after financial assets fade.

●      Stories and wisdom: A memoir, a handwritten letter, or even recorded reflections capture your perspective and life lessons — a priceless guide for those who come next.

●      Family traditions: Simple rituals, cherished recipes, or seasonal gatherings become anchors of shared identity and belonging.

By approaching legacy as more than a balance sheet — by documenting memories, expressing your beliefs, and living your values daily — you ensure that what truly defines you continues to inspire, even when a large financial gift may no longer be possible.

In the end, it’s the human legacy planning — the imprint of who you are — that outlives any sum of money.

3. Green Investing: A Planet-Positive Financial Legacy

You don’t have to wait for a windfall to make a meaningful impact. Through green investing, your money can work harder — not just for you, but for your community and the planet.

Imagine: 30 years from now, when your grandchildren ask,

“What did you do to make the world better?”

Your answer can be more than words — it can be your actions reflected in where your money has gone.

One way is switching your pension into funds that prioritise environmental, social, and governance (ESG) criteria. These green funds don’t just aim for financial returns — they support renewable energy, green infrastructure, and social projects that shape a healthier future. (Source: FCA)

Or consider impact investing, such as community bonds or shares, which link your financial gains directly to positive outcomes like affordable housing or forest conservation.

Community energy projects offer something even more tangible — investing in local wind farms or solar cooperatives generates clean power, creates jobs, and brings visible change to the places you care about. And yes, they still provide income to support your retirement.

Green investing starts at home, too. Upgrades like solar panels, better insulation, or heat pumps (a win-win) reduce your bills and shrink your carbon footprint — leaving a legacy that benefits both your wallet and the planet for generations to come.

With the right information and guidance, building an ethical portfolio tailored to your values, balancing returns with impact, can be a more straightforward task than it sounds (see this Planet Positive investing guide).

Because green investing isn’t just about growing wealth — it’s about growing a legacy that shows your loved ones you lived with purpose.

4. Impact Giving and Ethical Estate Planning

Beyond investing, impact giving and charitable bequests remain powerful tools to shape your legacy — and can offer IHT advantages under UK law.

●      Charitable bequests: Gifts to charity fall outside your estate for IHT, and if you leave at least 10% of it to registered charities, your IHT rate on the remainder drops from 40% to 36%. (Source: UK Government)

●      Tax wrappers and trusts: While detailed structuring (for example, through charitable trusts or bespoke tax wrappers) requires professional advice, these instruments can preserve more of your wealth for chosen causes.

●      Ethical estate instructions: You might stipulate that residual funds invest in green bonds or that property sale proceeds support environmental charities.

Remember this practical note: The use of trusts and complex tax wrappers requires bespoke advice. Speak to a regulated adviser to customise a plan that balances your objectives with compliance and regulatory requirements.

Embedding ethical estate planning in your will transforms tax‑efficient strategies into opportunities to champion the values you hold dear.

5. Leaving a Non‑Financial Legacy: Time, Values and Action

Often, the most meaningful legacy is the gift of your own time, attention and expertise.

●      Volunteering: Commit regular hours to a local charity, school or community group. Age UK reports that tens of thousands of volunteers power vital services each year, directly touching the lives of older and vulnerable people.

●      Mentoring and teaching: Sharing professional know‑how, life skills or sustainable living practices with younger generations cements values and inspires action.

●      Storytelling and documentation: Create a family podcast, photo album with narratives, or legacy letters outlining the lessons you want your descendants to carry forward.

●      Living by example: Embrace planet‑positive habits — reducing waste, supporting ethical businesses, planting trees — and invite family to join you.

Reflective prompt: What practical habits or family stories do you hope your children and grandchildren will carry forward?

By investing your time and modelling your values, you forge a legacy far richer than any financial bequest.

6. Practical Steps to Create Your Positive Legacy

Turning your values into a living legacy isn’t a one‑time act — it’s an ongoing, intentional process. Here’s how to put it into practice:

❖   Step 1: Clarify your values

List the principles that define you—family, faith, environmental stewardship, community service—and keep them central to planning.

❖   Step 2: Engage loved ones

Share your intentions in open conversations. Understanding your priorities helps the family honour your legacy.

❖   Step 3: Review investments

With professional help explore ESG and impact giving pension or ISA options that match your values.

❖   Step 4: Plan charitable giving

Decide on bequests or charitable trusts. Even a 10% gift can reduce your estate’s IHT liability and amplify impact.

❖   Step 5: Document stories and advice

Start writing letters, memoirs or creating recordings. Treat these as heirlooms for future generations.

❖   Step 6: Commit time and skills

Schedule regular volunteering or mentoring. Track your contributions as part of your legacy.

❖   Step 7: Update regularly

Revisit your plans every few years—or after major life events—to ensure they still align with your circumstances, tax laws and values.

Legacy isn’t built overnight.

But by taking clear, thoughtful steps now, you create something that lasts: a positive impact on your family — and the wider world — will feel long after you’re gone.

Conclusion

As retirement shifts back to its true purpose — sustaining lifelong income rather than simply building an inheritance — our approach to legacy planning must shift too.

By thoughtfully combining sustainable investing, targeted charitable giving and, crucially, everyday planet‑positive actions — your time, values and lived wisdom — you create a living legacy that echoes far beyond wealth.

Start today: reflect deeply on what truly matters to you, talk openly with family, and seek guidance from trusted professionals. Then take practical, intentional steps to align your plans with your principles.

Because in the end, the most enduring inheritance isn’t measured in pounds or portfolios — it’s measured in the positive difference you choose to make, and the values you pass forward.

Still unsure? Learn how to align your wealth with your values.