2 July – often called “halfway day” – marks the exact mid-point of the year. Now that we’ve passed this milestone, you’re closer to the end of 2025 than the beginning, so you might be thinking about the years to come.
Similar to 1 January or the start of a new tax year, halfway day could be a useful opportunity to review your financial plan and make sure you’re still on track to meet your goals in the future.
Here are five important steps to take when conducting a mid-year MOT.
1. Review your protection
Without protection, unexpected life events could threaten your financial plan and make it far more challenging to meet your goals in the future.
For example, if you were unable to work for an extended period due to illness or injury, you may struggle to cover general living expenses or contribute to pensions, savings and investments.
Consequently, you could fall behind with retirement planning and may need to make sacrifices in later life.
Yet, if you have income protection – which offers a regular payment until you’re able to return to work – you can pay your living costs and contribute to savings and pensions as normal, meaning you can still achieve your dream retirement.
Equally, a lump sum from critical illness cover or life insurance could protect your family financially should you become seriously ill or pass away.
Hopefully, you already have this vital financial safety net in place. However, it’s important to review your cover regularly because your needs could change.
For instance, if you move into a larger home, the settlement from a life insurance policy may no longer cover your full mortgage.
Similarly, if your earnings increase and you enjoy an improved quality of life, your outgoings could rise. As such, your current level income protection cover may not be enough to maintain your standard of living.
That’s why it’s important to review your protection regularly and ensure that it is suitable for your needs.
2. Check the level of growth on your savings
Interest rates have increased significantly in recent years as the Bank of England (BoE) increased its base rate – the interest rate it charges financial institutions – to control inflation.
While this could have meant you faced higher borrowing costs, you may have benefited from higher growth on your cash savings too.
If you are proactive with your savings, you can move the funds and take advantage of fluctuating interest rates to potentially maximise the growth you receive on your wealth.
Unfortunately, it appears many savers fail to do this as the Independent reports there is an estimated £276 billion in UK accounts earning no interest at all.
What’s more, now inflation has fallen, the BoE base rate is also coming down and savers may find it more difficult to secure attractive interest rates.
Fortunately, if you compare savings accounts regularly and move your wealth, you could achieve more growth. Additionally, you might be able to find a fixed-term account and lock in higher interest rates now before you lose the opportunity.
3. Assess your investment portfolio
It’s important to take a long-term approach to investing and avoid checking your portfolio too often as this can lead to panicked decisions, especially during a period of volatility.
That said, you do need to assess your portfolio from time to time to ensure that it is still suitable for your financial plan. We can discuss this with you and review the level of growth you’ve achieved, so you can see whether you’re still on track to achieve your financial aims in the future.
It might be useful to see how your portfolio performs during a market downturn too, and check whether your investments are suitably diversified.
By reviewing your investments and making adjustments when necessary, you can manage the level of risk you adopt and secure the necessary growth to realise your dream lifestyle in the future.
4. Take stock of your pensions
Your pensions are a crucial tool for retirement planning, but it could be easy to forget about them. Often, you are automatically enrolled in a pension by your employer, who takes the contributions from your salary on your behalf each month.
As such, you might not take an active role in managing your pensions, especially if you are still a while away from retirement.
However, there are certain decisions you can make about your pensions that could help you build wealth more effectively.
For example, a small increase in your contributions now could make a significant difference to the size of your retirement pot in later life.
Additionally, you might be able to choose where your savings are invested, meaning you could generate more growth. There may also be options for ethical or sustainable funds if you want your pension investments to reflect your values.
Depending on your age and work situation, you might have several pensions from different employers too. In 2024, the Association of British Insurers (ABI) reported that there were an estimated 3.3 million lost pension pots in the UK, with an average value of £9,470.
During your mid-year MOT, it might be useful to search for any lost pots and potentially combine them with other pensions so you can manage your savings easily. We can help you track down your pensions, then review the contributions and investment choices to ensure your savings are growing adequately.
5. Revisit your goals
Your financial plan starts with your goals in life. For example, you might have a clear picture of what you want your retirement to look like. You may also pursue other important aims such as buying a second home or helping your children through university.
Many of these goals will remain constant but your priorities might change as you progress through life.
As such, it’s important to revisit your goals during your mid-year MOT and consider whether anything has changed. In some cases, you might have different goals and may need to adjust your financial plan as a result. We can support you with this.
Alternatively, if your goals remain the same, we can check your progress and make sure your financial plan is still moving in the right direction.
Get in touch
We can support you with your mid-year MOT and check that your financial plan is on track.
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.
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.
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.