Best Financial Advisers to Work For 2023 winners

Just a few weeks ago we were delighted to hear that we were selected as winners of the Best Financial Advisers to Work For award for 2023, continuing our successes of 2019 and 2021 when we last entered.  
Most of the assessment is based on an in-depth survey across our staff who respond anonymously to a comprehensive array of questions about working for the company. 

We were delighted that nearly all participated and awarded the company an average rating across all categories of 95%. It sets a high standard for us to maintain for the future.
 
This national award is perhaps the one that we are proudest of as we believe that having happy and empowered staff translates to both exceptional service for our clients and with tremendous continuity of relationships. 

Mental Health Awareness Week

Since the award we have also just taken part in Mental Health Awareness Week, coming together to dedicate educating, championing, and prioritising our own and others’ mental health, and breaking the stigma and biases associated with it. 

With everything going on in the world right now it feels like there’s never been a more important time to support and protect our mental well-being, and so we organised several events throughout the week to provide additional support to our people, including encouraging our many remote based staff to come in, and also to each take time to check in on at least one other colleague. The feedback has been really positive. 

Whilst a digital age brings huge convenience there is still nothing as great as mixing the virtual with meeting up in person at times and having a closer social connectivity in this new era of home working, where isolation can become an issue. 
 

HFMC Wealth Website Refresh

Continuing the theme of a refresh, we are delighted to announce that we will be upgrading our main website in mid-June to better articulate our services and how we can help clients.  

We recognise that so many of our clients come from a referral either from existing clients or from professional introductions, so we have tailored the site accordingly and made it easier to find out more about the adviser to which you have been referred.  

We have also given our employee benefit and asset management divisions their own sites. These can be found at hfmceb.com, and hfmcam.com, whilst the private client site retains the hfmcwealth.com domain address.  
These have been created to help ensure a more relevant experience from a client perspective. Please do take a look.

In this edition…

This quarter we again have a mix of financial and non-financial topics for you.  Nick Rudd considers how your pension could be the secret to reducing inheritance tax for generations to come and looks into how the lifetime allowance has affected pension wealth since 2006.  

May marks the 70th anniversary of Edmund Hillary and Tenzing Norgay’s first ascent of Everest and in January 2023 our very own Vince Lane climbed to base camp with his son. Vince’s article looks at the data which reveals that more people die coming down from Everest than going up and explains how the “decumulation” stage of retirement can often be more “dangerous” than the “accumulation” stage.

We often get asked about how to best help older relatives with managing their finances and care needs and Steve Jerome is glad to oblige with some thoughts.  He dives into 3 ways you can help older relatives to manage their finances and care needs, covering Lasting Powers of Attorney, Advanced Care Planning options and navigating their money in the digital age. 

Finally, with ChatGPT, AI music and “deep fakes” in the headlines, we look at constructive ways that people across the world are using AI technology now to create a positive difference, both for individuals and businesses. 

We hope you enjoy the rest of this issue and find it to be an insightful and informative edition of The Wire. 

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The most important change for Britain’s wealthiest families is almost certainly the proposed abolition of the Lifetime Allowance (LTA).

The Lifetime Allowance has affected pension wealth since 2006

Since 2006, the LTA has marked how much an individual’s total pension wealth can reach without being subject to an additional tax penalty on withdrawal. Although the amount has varied over the years, in 2022/23 the LTA stood at £1,073,100.

Previously, drawing any pension funds above the LTA threshold would incur an additional tax charge of:

• 55% on funds drawn as a lump sum
• 25% on funds drawn as income – this would have been in addition to your marginal rate of Income Tax.

Alongside the removal of the LTA, the Annual Allowance has been increased from £40,000 to £60,000. The Annual Allowance is the amount that you can save into your pension each tax year while still being able to benefit from relief. Of course, you can continue to pay into your pension once you hit this limit, but you’d no longer be able to do so in a tax-efficient way.

These changes mean you can now boost your pension contributions without worrying about breaching the LTA.

Previously, you were limited to the amount you could accrue tax-efficiently over your lifetime. Now, however, the removal of the LTA tax charge, and its proposed abolition in 2024, means you can potentially build up a significantly larger pension pot without having to worry about additional tax charges.

However, if you intend to draw on your pension, you should proceed with caution because there is, of course, a catch.

The tax catch to watch out for

Despite the removal of the LTA, the pension commencement lump sum (PCLS) will remain at 25% of the LTA’s most recent value (£1,073,100), which is equivalent to £268,175.

This means that, unless you have existing rights, it isn’t possible to amass a £2 million pension pot and take 25% as a tax-free lump sum.

As a result, while you could benefit from the chancellor’s removal of the LTA tax charge, you may be better served by using the benefit to reduce your Inheritance Tax (IHT) liability and leaning more heavily on your pension savings to aid your estate planning instead.

Careful planning now could help to reduce IHT liability for future generations

Pensions can play a powerful role in helping to reduce or, in some cases, even eliminate IHT. This is because pensions fall outside your estate for IHT purposes. Ultimately, anything left in your pension pot after you die can be passed to your beneficiaries free of IHT.

As a reminder, IHT is charged at 40% of the value of your estate exceeding the nil-rate band of £325,000. Should you leave your primary residence to a child or grandchildren, you receive an additional allowance worth £175,000. This is called the “residence nil-rate band”.

The government has frozen each of these allowances until at least 2028.

With this and the removal of the LTA in mind, using your pension to help mitigate any IHT liability could make a significant difference to how much of your wealth remains in your family.

How to pass your pension on to your family

How you can pass your pension on depends on the kind of scheme you have.

If you have a defined contribution (DC) scheme, you can nominate who inherits your pension. This could be one person, several people, or even a charitable organisation.

If you have a defined benefit (DB) pension, unlike with DC schemes, there isn’t a lump sum left after you die. However, this type of scheme will usually pay a pension to your surviving spouse or nominated beneficiary. Be aware, though, that rules often stipulate that this must be a dependent.

It’s important to take the time to nominate your beneficiaries. This is usually easy to do online through an “expression of wishes”. It’s always a good idea to update your will, too. This will help ensure your wishes are conveyed to all relevant parties and reduce the risk of confusion or dispute after your death.

A different tax problem to watch for

Should you die before age 75, no Income Tax will be due on your pension, when accessed by your dependants. However, after 75, your beneficiaries will be charged at their marginal rate of Income Tax. This could be avoided by leaving the pension fund invested and untouched.

This caveat may mean that the 40% IHT charge is preferable, especially if your beneficiaries are higher- or additional-rate taxpayers and likely to want to access the pension money you leave them.

Also, whilst it’s important to remember that you can take 25% of your pension fund as tax-free cash once you reach the age of 55 (rising to 57 in 2028), if you do, it could form part of your estate if you fail to spend it all.

This means that should you die after 75, your beneficiaries may end up paying Income Tax on the inherited pot as well as the original “tax-free” 25% lump sum.

Preserving your pension with a long-term, intergenerational view could pay for years to come

With so many potential tax pitfalls to consider, it often makes sense to preserve your pension wealth for as long as possible and draw on other income during your lifetime.

Many wealthy families are best served by using pensions to pass money through the generations, so a far longer view may be required, especially now, in light of the abolition of the LTA and all that this means.

It may also pay to act quickly. As a response to the Budget, the Labour Party have indicated that, if elected, they plan to reverse the abolition of the LTA. So, with the spectre of another change to this allowance looming after the next general election, sitting down with a planner now to discuss your options could be constructive.

Your financial planner can help you use the LTA changes to your advantage

If you’d like to learn more about intergenerational wealth management and how the recent pension legislation could help you and your family support each other for generations to come, then do get in touch with your financial planner and they will be glad to help.

Please note

This article is for information only. 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 value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances. Levels, bases of and reliefs from taxation may change in subsequent Finance Acts.

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If you woke up on the morning of 2 June 1953, you’d have likely been greeted by two pieces of news. While the major story on the day was the coronation of Queen Elizabeth II, news of a successful expedition 4,600 miles away was also making headlines that morning.

Four days earlier, British explorer Sir Edmund Hillary and his Nepali-Indian Sherpa, Tenzing Norgay, had become the first adventurers confirmed to have reached the summit of Mount Everest.

The ascent marked a great milestone in human achievement, with Time magazine naming both men in their “top 100 most influential people of the 20th century”.

May 2023 marks the 70th anniversary of this landmark event, with Hillary and Norgay inspiring more than 6,000 climbers in the intervening decades to emulate their ascent.

So, what does all his have to do with your retirement?

If you’ve been saving during your entire working life, you may think that the point at which you decide to move into the next chapter of your life is the moment of least risk. However, the descent – sometimes known as the “decumulation” stage of wealth – is often the most perilous.

More people perish coming down Everest than on the ascent

Whilst climbing the world’s highest mountain is one of the pinnacles of mankind’s achievements, it’s not without risk.

Death on the mountain can be caused by a wide range of factors from avalanches and falls to exposure and frostbite. Combine this with treacherous terrain and the impact on the human body, and it’s no surprise that more than 310 climbers are known to have died on Everest.

Reuters reports that, between 2006 and 2019, the risk of dying on the mountain stood at 0.5% for women and 1.1% for men.

Above 26,000 feet, mountaineers enter what has become known as the “death zone” where the oxygen levels are insufficient to sustain life for an extended period.
What you may not realise is that the descent from the summit of a mountain is often more dangerous than the climb.

Scientific American reports that, of the 192 deaths that occurred between 1921 and 2006 above base camp, 56% succumbed on their descent and another 17% died after turning back. Just 15% died on the way up or before leaving their final camp.

R. Douglas Fields, chief of nervous system development and plasticity at the National Institutes of Health (NIH), told ScientificAmerican that the findings aren’t surprising.

“That’s actually a common rule in climbing that more people die coming down than going up. You’re spent getting to the top. You get tired, you’re exhausted.”

Be wary of the risks during your wealth “descent”

Through decades of work, you’ve likely amassed significant wealth. You will have built up your workplace pensions, investments, property, savings, private pensions, and other assets through your “ascent”.

Of course, there are times when this climb will have been difficult. You will no doubt have encountered some tricky terrain or bad weather on the way, but having a plan and sticking to your end goal will have brought you to your summit – the point where you achieve the freedom to move on to the next phase of your life.
Many people think the risks are over at this point. However, this is just the halfway stage. As American mountaineer Ed Viesturs, who has climbed Mount Everest seven times, says: “Getting to the summit is optional; getting down is mandatory.”

Any Sherpa worth their salt will tell you that the skills needed to reach the summit are quite different to those for getting back down. Getting down requires discipline, planning, and a careful strategy.

If you apply this to your financial plan, the “summit” may well be the point where your wealth is at its peak. As you descend, you’ll start to deplete this wealth as you use it for income or start the legacy planning process to mitigate any potential Inheritance Tax (IHT) bill.

If you don’t take care, you may suffer from “summit fever” – a psychological trait that means you ignore important signs that blind you from making crucial decisions. You’re so relieved to have made it to the summit that your decision-making could then suffer.

Similarly, you need to ensure that your amassed wealth is sufficient to sustain your lifestyle for the rest of your life – which could be 20, 30, or even 40 years or more. There’s no benefit in making it half-way down the Himalayan Mountain – you need enough resources to get you all the way home.

The know-how and skill of a guide is crucial

When the British party arrived in Nepal in 1953, they knew they needed the assistance of an expert if their mission was to be successful.

In early March, the Himalayan Club sent 20 Sherpas to help carry equipment, led by their Sirdar, Tenzing Norgay, who was attempting Everest for the sixth time. George Band, the youngest climber on the 1953 expedition, said Norgay was: “The best-known Sherpa climber and a mountaineer of world standing”.

Working alongside an expert can be the route to success in many areas of life – not least when it comes to your retirement.

Indeed, a recent study by Standard Life revealed that people who work with a financial planner retire, on average, three years earlier than those who don’t, and are able to fund their retirement lifestyle for six more years.

Having a trusted partner who understands the terrain and what you have to do to navigate it can lead to success – just as Sir Edmund Hillary discovered on that May morning back in 1953.

If we can help you manage your ascent or descent, please give us a call on 020 7400 4700.

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The post What climbing Mount Everest can teach you about managing your pension in retirement appeared first on HFMC Wealth.

Whether it’s in setting out their wishes in case they lose capacity and require care, or simply the everyday management of their money, there are some significant hurdles your relatives may be finding difficult to overcome.

Fortunately, there’s plenty of help you can provide to help them manage their finances and plan for care – and it may even give you pause for thought as to your own situation too.

So, discover three ways you can help your older relatives to manage their money and potential care needs.

1. Putting a Lasting Power of Attorney in place

Firstly, you could help your relative to put a Lasting Power of Attorney (LPA) in place.

An LPA is a legal document that allows them to appoint an individual or individuals (known as “attorneys”) to make decisions on their behalf should they lose mental capacity.

For financial matters, the LPA also lets the individual delegate management of money matters to their chosen attorney(s), even if they retain mental capacity.

There are two types of LPA:

1) Financial – This allows the attorney to manage various aspects of your relative’s wealth, including their bank accounts, bills, benefits or pensions, and property.

2) Health and wellbeing – This allows the attorney to make decisions that affect your relative’s health and wellbeing when they cannot. This might include their daily routine (washing, dressing etc.) medical care, moving them into a care home, or life-sustaining treatment.

Having an LPA ensures that there will be someone with your relative’s best interest at heart to make decisions about their money, health and wellbeing. So, you may want to encourage them to put both types in place to offer this protection.

You may also want to impress upon your relative the importance of putting an LPA in place before they need it.

It can sometimes be difficult to predict when someone might lose capacity. Whether it’s down to a single accident, or a prolonged condition such as dementia, your relative could lose their cognitive abilities almost overnight.

If this happens, it can be far more difficult to put an LPA in place. As a result, it’s crucial to consider this before it’s too late.

2. Exploring Advance Care Planning options

Beyond a health and wellbeing LPA, you may also want to consider other similar types of Advance Care Planning (ACP).

In a similar way to an LPA, ACP involves your relative making decisions over their health and wellbeing – particularly over long-term care – ahead of a time when they might not be able to make these choices for themselves.

Two documents your relatives may want to consider putting in place could be:

1) Advance Decision – Your relative can use this to pre-emptively refuse particular medical treatments that go against their personal wishes. This is legally binding and healthcare professionals have to follow it, regardless of what they would consider to be in the “best interest” of your relative.

2) Advance Statement – This allows your relative to lay out their preferences for “softer” decisions. This could include preferences for treatment or certain medications in care, or aspects of their daily routine that they would like to be upheld. An Advance Statement is not legally binding.

These can be difficult decisions to make, which is why it can be so valuable to support your relatives through this process. While it may be emotionally demanding, ACP can allow them to play an active part in their future, and simultaneously relieve you of the burden of having to make these decisions if they’re unable to do so for themselves.

3. Helping them navigate their money in the digital age

Another barrier your older relatives might face is the difficulty of managing money in the digital age.

While technological improvements and the advent of online banking have made checking on your money easier than ever, this may not be the case for older relatives.

According to Age UK figures published in the Guardian, 40% of over-75s don’t use the internet at all, and so struggle or are unable to access digital banking services.

Meanwhile, more than 5,000 bank and building society branches have closed since January 2015, the Evening Standard reports. For older relatives who might struggle with travel due to anxiety or mobility issues, it could be financially constraining for them if their local branch has closed and they’re no longer able to bank in person.

As a result, this may be an area where you can lend a hand. A financial LPA can be useful here, as you can assist with your relatives’ money as soon as it’s registered, even if they still have mental capacity – provided that you have their permission.

Alternatively, you could look at helping your relative to switch to a bank that’s more suitable for their needs. This could either be one that has a local branch nearby that they can go to themselves, or one with better standards of accessibility for vulnerable customers.

Finally, another option could be to help your relatives learn how to use telephone or online banking services. This could help them to retain their independence in managing their money, without having to rely on you entirely or switch to a different bank or building society.

Some financial providers actually offer free online courses to help empower less tech-savvy individuals to use their services.

Check with your older relatives’ bank to see whether they have services available to help them.

Financial planning can help you as a family

Carrying out financial planning as a family can be a useful exercise. By discussing your older relatives’ plans, you’ll fully be able to understand what they have in place already, and their wishes for their future should they ever require care.

Meanwhile, this might also extend to you, your own circumstances, and your children. Having seen how important it can be to plan for these eventualities, you may want to consider putting an LPA in place for yourself, or looking at ACP options ahead of time to play an active part in your future care needs.

Working with an adviser can be hugely beneficial if you’d like help organising your finances for the future. Please speak to your financial planner to find out more.

Please note

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

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The initial go-to options when saving money for a child or grandchild’s future, are typically standard saving accounts and Junior Individual Savings Accounts (JISAs). A great first step, but what else may be considered if the return on a run of the mill savings account is uninspiring, or if the annual allowance of £9,000 for the 2023/2024 tax year for a JISA has been exhausted?

An individual pension is often overlooked as an alternative option that could provide significant value and offer substantial benefits whilst serving as a powerful tool for wealth transfer. Let’s delve into why starting a pension for a child or grandchild is advantageous, along with the specific benefits it provides.

Of course, as with any financial decision, there are some drawbacks which we will consider, too.

1. Contributions that attract tax relief

Similarly, to adult pensions, a junior pension, or a self-invested personal pension (SIPP) for children also qualifies for tax relief.

For most children who do not have their own earnings, the total gross amount, including tax relief, that can be contributed to a junior pension is £3,600 in the 2023/24 tax year. In simple terms, this means a contribution of £2,880 from a parent or grandparent into a junior pension would receive a top-up, or “tax relief” of £720 from the Government.

If the child has earnings above £3,600, then the limits for tax-efficient contributions mirror that of an adult pension. In the 2023/24 tax year, this is either £60,000 or 100% of their earnings, whichever is lower.

The benefit of tax relief sets pensions apart from savings accounts and JISAs, as they do not provide such benefits. Additionally, this extra boost means that returns on your contributions will compound even more effectively, amplifying the growth potential of the pension fund – a win, win!

2. More time in the market could lead to greater investment returns

Starting a pension for a child takes the adage of “time in the market rather than timing the market” to the next level, as funds will remain within the pension until the child or grandchild reaches retirement age. This longer time frame can be highly valuable in providing a sizable pot for the child or grandchild’s future.

The example below from Unbiased highlights the impact of regular government top-ups, plus the effect of compounding interest over the longer-term on funds held within a junior pension.

Figures suggest that if contributions are maximised to £3,600 gross each year from the moment a child or grandchild is born until they turn 18 then, assuming no further contributions and growth of 4% (net of charges) a year, the pension could be worth in excess of £620,000 by the time the child or grandchild turns 65.
Furthermore, the child or grandchild has the option of commencing personal contributions to the pension when they begin working. This could help build an even larger pot during their working lives – and they will continue to benefit even further from greater compound returns.

The returns accumulated within the pot will be entirely free from Capital Gains Tax (CGT) too, making a pension an extremely tax-efficient avenue for long-term investment.

3. Contributing to their financial future

Perhaps the most significant benefit of starting a pension for a child or grandchild is that it is an effective way of enhancing their financial future.

The key factor contributing to this benefit is the restricted access to the pension funds until at least the normal minimum pension age, which is currently set at 55 (as of 2023/24) and is scheduled to increase to 57 by 2028. There is even a possibility of further increases over the next several decades of the child’s life.

By limiting access to the funds until later in life, the pension safeguards against the possibility of impulsive spending during the child or grandchild’s younger years, thereby preserving the money set aside for their benefit.

Furthermore, this approach grants them greater financial freedom throughout their working life. Knowing that there is a dedicated retirement fund waiting for them in later years can alleviate concerns about economic uncertainties, providing them with a sense of security and peace of mind.

They can rest assured that funds are saved specifically for their future needs, thanks to thoughtful financial planning during their early years.

4. It can have Inheritance Tax benefits for you

Another advantage of regularly contributing to a child or grandchild’s pension is the potential eligibility for utilising the “gifting from income” exemption in relation to Inheritance Tax (IHT).

Under this exemption, unlimited regular payments or “gifts” can be made into the junior pension and will generally fall outside the estate for IHT purposes. To qualify for this exemption, there are a few conditions to consider:

Affordability: Ensure the payments towards the child or grandchild’s pension will not adversely impact your standard of living.

Source of Payments: The contributions should be made from regular monthly income, not from capital assets.

Regularity: It is important that the payments are made on a consistent and regular basis.

If you plan to employ this strategy, it is beneficial to maintain clear and detailed records of all the gifts made as part of the financial planning process.

Considerations of starting a junior pension

1. Limitation of tax allowable contributions

Although the tax relief offered by a pension is attractive, it is important to acknowledge that there are limits to how much can be saved for a child or grandchild.

High net worth individuals may have significant sums to transfer to a child or grandchild. As annual contributions will be limited to £2,880 (net) whilst still receiving tax relief, this may appear to be a mere drop in the ocean of the total wealth anticipating being passed on.

In this scenario, it would be worth exploring various avenues and consolidating the options into a seamless strategy whereby establishing a robust succession of wealth.

2. Accessibility

It is important to recognise that a pension serves as a valuable tool for providing financial support to the child or grandchild’s future rather than immediately.
While the minimum pension age prevents them from squandering the funds during their youth, it may also restrict their ability to achieve legitimate financial goals that they may have.

As a result, a pension may not be suitable if there are other, shorter-term goals within the financial plan. For example, common ways that many parents and grandparents like to support children or grandchildren are:

• Helping with a first car purchase
• Paying tuition fees or living costs at university
• Gifting a deposit for buying a first home.

Saving accounts or JISAs are often utilised to fulfil such immediate goals and can offer more flexibility in accessing funds compared to a pension.

3. Investment returns are not guaranteed

Lastly, an important aspect to bear in mind is that investment returns are never guaranteed.

An equity-based portfolio is likely to deliver positive, above inflation returns over the longer-term as has been the case of over 200 years of investment history. Of course, over the short-term, volatility will be a key emotive driver as returns are not delivered in straight lines of steadily accumulating returns.

Growth can be lumpy and often delivered in spurts over short periods, but it is impossible to predict when these might happen.  Circulating back to the aforementioned old adage of “time in the market rather than timing the market” and as junior pension funds could be invested for half a century or more, the likelihood of a positive outcome is reasonably high.

However, if the thought of an investment losing money over the short-term is unsettling, then a regular savings account may be the best option for you.

A financial planner can help create a suitable plan for your family’s future

When it comes to making decisions about succession planning, the pressure can often feel greater than when making decisions for yourself.

This is because the choices made may have the potential to significantly impact the financial well-being of the family in the future.

If you would like to begin the conversation around succession planning, we strongly encourage you to reach out to your financial planner for further guidance and information.

Please note

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

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 results.

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.

Download the latest issue.

The post Why you may want to start a pension for a child or grandchild, and the benefits of doing so appeared first on HFMC Wealth.

Thanks to leaps in technology and computing power, programmers and coders can now create complex applications that can learn, speak, and carry out commands in a way that’s almost indistinguishable from a genuine human being.

A great deal of the focus with AI is on the negatives that come with it. You may well have seen “ChatGPT” in the news, a software capable of answering questions and producing full essays and articles in just a few seconds. In turn, this has led to a furore over students’ use of it for academic writing in schools and universities.

Meanwhile, we’ve also seen AI music – in which machines produce music that’s almost identical to real artists – and so-called “deep fakes”, in which bots are able to accurately emulate the likeness of other people and produce videos of them that were never actually recorded.

That said, despite all the heavily publicised concerns over what AI can do, it’s important to remember that it can be a force for good and offer some significant benefits, too.

Machine-learning applications can think faster and more openly, creating links between concepts that the human brain can’t even see. As a result, these programmes have the capabilities to solve real-world issues.

There are already many examples of machines making a positive difference across the world, both for individuals and businesses. So, here are just 10 practical ways that people are using AI for the power of good right now.

Making a weekly meal plan

While programmes such as ChatGPT can write long-form articles and essays, they can also answer basic questions and solve problems. This has led to many individuals using them to create a weekly meal plan, complete with a shopping list to take to the supermarket.

You can input food preference and dietary requirements, and the AI will be able to factor these into the meals it suggests for you, too.

Planning a workout

Similar to creating a weekly meal plan, AI can also design a workout plan for you. By inputting your workout goals, and preferences such as avoiding muscles where you have a pre-existing injury, the applications can create a personalised gym session.

This could be a helpful feature for beginners making a start, as well as confident gym-goers looking to supercharge their workouts.

Writing computer code

Ironically, having been created by hours of careful coding, AI applications have the ability to write code faster and more fluently than humans can.

AI can:

• Create apps from scratch, even if you can’t code
• Identify and fix bugs in code you’ve written
• Create games and applications, based on simple prompts.

This is a fun quirk for individuals, and could be transformative for businesses.

Spotting and removing “fake news”

Another somewhat ironic role that AI could play is in identifying and removing “fake news” on the internet.

While AI might be responsible for deep fakes and other false representations, bots may also be able to independently find and remove fake news more efficiently than humans can.

Improving farming

Thanks to its ability to learn from previous data, many people are using AI to improve farming practices.

One remarkable example of AI’s practical use in the real world involved creating an app to identify sick banana crops before they affect the rest of the harvest.
Technology like this could help to shore up food chains and be vital in solving global food security.

Making business decisions

It’s understandably difficult to make big decisions in a business, so many entrepreneurs may start turning to AI to inform their choices.

AI can consider a wider range of variables that could arise from certain results, doesn’t experience decision fatigue, and, unless it’s asked to do so, won’t include emotional factors into its choices.

As a result, many business leaders may turn to AI to help them make decisions in their companies.

Tackling climate change

Widely seen as one of the most significant existential threats facing humanity, it may be unsurprising that some scientists are harnessing the power of certain programmes to help tackle climate change.

AI can help authorities to collect data, and make projections from it. Analysts can also use bots to simulate different outcomes of climate change, such as rising temperatures and changes in sea levels, and then make suggestions as to how to proceed accordingly.

Managing natural disasters

In a similar fashion to tackling climate change, AI can also contribute to managing natural disasters before and after they occur.

The programmes can be used to detect where disasters might take place, giving authorities a chance to prepare for catastrophes.

They can then allocate relief resources more effectively than humans are able to, considering a wider range of factors in the decisions they make.

Automating repetitive tasks

When it comes to saving money for businesses, AI automation may be one of the most powerful tools available.

AI can carry out repetitive tasks faster than humans, more efficiently, and often to a higher standard – all without the need to stop for breaks.

It’s also safer, reducing the risk of human injury in the process.

Creating parts for spaceships

A remarkable recorded use of AI is in designing parts for spacecraft. Rather than an individual sitting down with a blank sheet of paper and creating two or three designs a week, AI can sift through more than 30 designs an hour.

Furthermore, it can conceive of shapes and solutions that humans simply cannot fathom, thanks to machines’ unique ability to solve concepts in innovative ways.

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