The end of the year tends to be an incredibly exciting, yet busy, period. You might be juggling the stress of organising Christmas, hosting your family, and preparing for the new year – all of which can make it feel as though you have little time for much else, especially your finances.
However, as the year draws to a close, this period can actually be the ideal time to reflect on your financial situation.
Taking the time to review and update your financial plan can ensure it remains a relevant and practical tool for achieving your goals.
Despite this, research from PensionsAge found that nearly half of UK adults don’t have an up-to-date financial plan.
If you find you’re among them, this could be the perfect moment to take stock of your circumstances.
Continue reading to discover the benefits of an annual review with financial planners in Bristol, and why the festive period could be a practical time to reassess your goals for the year ahead.
1. Aligning your plans with any changed circumstances and goals
A lot can happen in the space of a year. You might have moved to a new home, started a different job, or even welcomed a new child into the family, all of which can significantly reshape your priorities.
These events may prompt you to rethink the actions you’re taking to reach your short- and long-term goals.
An annual review gives you the opportunity to align your financial plan with your new circumstances.
For instance, if your income has risen, you might want to increase the amount you contribute to your pension to help you reach your retirement goals sooner.
Conversely, if your expenses have grown, perhaps due to higher mortgage repayments on a new home, you may need to revisit your budget.
Your financial planner can help you identify the appropriate changes to your financial plan and ensure it keeps you on track to reaching your objectives.
2. Assessing the performance of your investment portfolio
It is often wise to take a long-term approach to investing rather than obsessively checking your portfolio every day.
An annual review could offer the opportunity to take stock of how your portfolio is performing.
Instead of reacting to short-term volatility, you and your planner could calmly assess whether your investments are still aligned with your goals, risk tolerance, and time frame.
Your planner could also help you ensure your investments remain diversified, tax-efficient, and positioned for growth.
This could give you confidence that your portfolio will continue to support your financial plans without being distracted by market “noise”.
3. Altering your tax strategy in line with legislative changes
You may already know that the government has introduced significant legislative changes since being elected in 2024.
For instance, immediately after the Autumn Budget in October 2024, the government revised the main rates of Capital Gains Tax, bringing them in line with those for residential properties. It also announced a new non-dom regime, implemented from April 2025.
Now, with the 2025 Autumn Budget scheduled for 26 November, there are rumours of further changes that could considerably affect the way you manage your wealth in 2026.
Granted, staying abreast of shifting tax rules can be a challenge, especially when you’re already busy.
A financial planner could help you examine how these changes apply to your situation and identify opportunities to adapt before the new tax year begins.
This might include:
- Optimising your pension contributions
- Making full use of available allowances
- Rebalancing your investments to mitigate tax.
Professional guidance could ensure you approach the new year with confidence in your financial plan.
4. Ensuring your protection is still sufficient
Financial protection can form the foundation of your financial plan, ensuring the unthinkable – such as injury, illness, or death – doesn’t derail your progress in other areas.
An annual review could offer the chance to evaluate whether your existing protection is still appropriate.
For example, you might already have income protection in place, which provides regular payments if you’re unable to work due to an illness or injury.
You may believe that this will be sufficient to support your standard of living. Yet, it’s often wise to combine this with critical illness cover, which offers a tax-free lump sum if you’re diagnosed with a serious illness listed on your policy.
Similarly, if you purchased a new home or received a pay rise in 2025, you may benefit from increasing your life cover.
Doing so could ensure your loved ones would be able to make ends meet should you pass away unexpectedly.
Your planner could ensure that there are no gaps in your protection, giving you peace of mind that your affairs are safeguarded for the year ahead.
5. Building a lasting and supportive relationship that offers peace of mind
One of the most valuable aspects of working with a financial planner is that you will develop a close relationship with them.
They’ll understand your unique goals, family circumstances, and financial situation, which allows them to offer a bespoke service that reflects your needs.
Meeting each year could reinforce this supportive relationship.
It allows your planner to remain up to date with your changing circumstances and ensure their advice continues to align with your values.
Over time, this could offer incredible peace of mind, as you know that a professional who understands your situation is helping you stay on course towards your long-term goals.
You may even find that a review once a year isn’t enough and decide to meet more often to ensure your plan remains as current as possible.
To find out more about how our financial planners in Bristol could help you plan effectively for the year ahead, please get in touch.
Email helpme@aspirellp.co.uk or call 0117 9303510.
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 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.
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