The end of 2025 approaches and you’re likely making plans for Christmas and new year. But you may also think ahead to 2026.
The start of a new year is the perfect opportunity to reflect on the past 12 months and consider changes you want to make in the future. That’s why we often set new year resolutions in January.
It could be useful to take the same approach to your finances so you can start 2026 confident in the knowledge that you are in control of your wealth.
Here is your financial checklist for the new year.
1. Consider your goals for the year ahead
Certain financial aims will remain consistent throughout your life. For instance, you may have a clear picture of the kind of retirement you want, and each year you’ll move closer to achieving that dream.
However, your priorities often shift and new goals could emerge, especially if your circumstances change. For example, you might have a child who is planning to go to university soon, so financially supporting them could be an important target for the coming year. Perhaps you want to purchase a holiday home before you retire.
When your wants and needs change, you might need to adjust your financial plan accordingly.
That’s why reviewing your goals is an important first step on your financial checklist for 2026.
2. Review your budget
Cost of living rises could mean that certain expenses have changed in the past year, so you need to review your budget at the start of 2026.
If you fail to do this, your monthly outgoings may creep up over time, leaving less disposable income to contribute to savings and investments. This could mean you find it harder to reach long-term financial goals.
It’s also worth considering whether your plans have changed. Using the earlier example, if you want to fund your child’s university education, you might need to increase your contributions to cash savings, so you have the necessary funds available.
Regularly reviewing your budget ensures that it’s reflective of your current situation and future ambitions.
3. Check the status of your pensions
It’s easy to forget about your pensions as your employer often takes the contributions automatically, so your pot builds slowly in the background. You may assume that, provided you’re paying in each month, there’s no need to do too much with your pension.
However, it’s important to check that you’re on track with your savings plan.
We can use cashflow planning to model how much you are likely to have in your pensions at your chosen retirement age, based on your current contributions. Additionally, we’ll consider how much you plan to spend each year in retirement, and whether your predicted pension savings will be adequate.
If not, you can review and increase your pension contributions so you can save enough for your dream retirement.
You may also want to check how your pension savings are invested. Most providers give you the option of several investment funds, each with their own level of risk and average growth. The default fund may not be the most suitable choice for you and changing your pension investments could help you generate more growth.
4. Consider whether your protection needs updating
Protection can support your family during some of the most challenging times in your life. If you unexpectedly pass away, a life insurance payout helps your loved ones remain financially stable.
Similarly, if you’re unable to work due to illness or injury, regular payments from income protection could help you stay on top of your financial responsibilities and continue saving for the future.
Putting protection in place is a key step in your financial plan, and it’s important to revisit your cover regularly for several reasons.
For example, if your outgoings have increased, the amount paid by your income protection may no longer be enough to cover your expenses. Equally, if you move into a larger home, you might need to update your life insurance to reflect your new mortgage.
5. Prepare for the end of the tax year
The beginning of a new calendar year is the perfect time to start thinking about the end of the fiscal year on 5 April.
While it may be several months away, careful planning means you can make good use of crucial tax allowances and exemptions. This includes your:
- Capital Gains Tax (CGT) Annual Exempt Amount
- Inheritance Tax (IHT) annual gifting exemption
- Pension Annual Allowance
- Dividend Allowance
- ISA allowance.
Many of these allowances cannot be carried over to the following tax year if you don’t use them by 5 April, meaning you could miss out on opportunities to build wealth tax-efficiently.
We can explain the various allowances and exemptions and help you take full advantage of them before the end of the fiscal year.
Get in touch
If you need guidance with any of the items on this checklist, we are here for you.
Please get in touch to find out how our team of VouchedFor Top Rated planners could help today.
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.
The Financial Conduct Authority does not regulate cashflow planning or tax planning.
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.
Note that 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.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.