Having a financial plan that truly considers and reflects your current lifestyle, situation and future aspirations can be a powerful tool, and when used effectively could help provide financial peace of mind; life does not stand still for long, and neither should your financial plan.

A long-term view is so important when working towards achieving your financial goals, whether that be boosting your retirement fund, investing for your future, or preserving your wealth for future generations. Whatever your goals, making sure your financial plans remain on track to support them is essential, and so ensuring changes to your situation are considered is equally important.

There are many reasons that may mean you would want to review and implement potential changes to your current arrangements. We’ve listed just a few here:

1. Your personal situation might have changed. Changes such as starting a new job, buying a home, getting married, retiring, having children, losing a loved one; these could all impact what you spend and how you can save. Changes to your personal, work or family situation may also impact your insurance needs. Making sure you’re prepared for the unexpected and having plans in place to protect you and your family allows you real peace of mind.

2. Your lifestyle and financial situation might have changed; for example, if you have received an inheritance or proceeds from a business sale. With changes in your life, your goals may change. It is important to review your present situation and ensure your plan corresponds to any new goals.

3. You might be affected by changes in legislation which could drastically change your financial situation, these could be positive or negative depending on your circumstances. These types of changes may be triggered by a change in Government, a budget announcement, or the passing of new legislation during the year. Changes to legislation can impact things like pension contribution limits, tax rates, or rules and benefits. Ensuring you benefit from any such changes that may be applicable to you, and where possible ensuring the impact from those which could affect your financial situation negatively are mitigated is something you may want to speak to a certified Wealth Planner about to ensure your individual circumstances are considered.

4. The complexities of the tax system may mean you’re paying more than you should be. By reviewing your financial situation on an annual basis, you, or your Wealth Planner (if you have one), may be able to identify any strategies to help reduce your tax costs or boost your after-tax returns. Ensuring that available reliefs and exemptions have been utilised, can also help to reduce your tax bill.

5. Thinking about retirement and leaving the workplace to pursue much enjoyed hobbies, to travel or just spend more time with the family may be one of life’s most welcome and anticipated events. But it can also bring unexpected challenges, and it’s hard to predict what the cost of personal care (or anything else) might be in your later years. Starting to think about how this change to your lifestyle will help when it comes to making the right decisions to be as prepared as you can be to enjoy your retirement years.

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate advice on taxation.

FP2023-476