As the year draws to a close, December is the perfect time to reflect on your finances and prepare for the opportunities and challenges of 2026. While the festive season is in full swing, taking a little time now to review your finances can help you start the new year with confidence and clarity.
Our financial planning team has outlined some of the key actions you can take before the year ends to make the most of your money and set yourself up for success in 2026.
Review and maximise your allowances before tax year-end
The tax year-end in April may seem far away, but December is an ideal time to check whether you’re making full use of your allowances. Consider:
- ISA allowances – Are you on track to use your annual ISA limit for tax-free savings?
- Pension contributions – Could you increase contributions before the end of the tax year to boost your retirement pot?
- Capital Gains and Inheritance Tax planning – Recent updates to tax rules mean it’s more important than ever to review your position. From changes to reliefs and allowances to adjustments in how certain assets are treated, these developments could affect your long-term plans. Taking time now to understand the impact and explore available strategies can help you make the most of current opportunities and avoid unexpected liabilities in the future.
Set clear financial goals for 2026
The start of a new year is the perfect time to define your financial priorities. Ask yourself:
- Where do I want to be financially by the end of 2026?
- What longer-term goals do I need to start planning for now?
Setting clear objectives gives you direction and helps measure progress. Our team can help you create a personalised plan, including cashflow forecasting, so you know whether you’re well-positioned to achieve your goals. By modelling a cashflow forecast, we can make sure that you are on track to have sufficient funds in place to ensure that you can sustain your retirement. We can offer a sense of direction to ensure that you know what is required to reach your retirement goals and consider different ‘what if’ scenarios.
Review your protection and insurance
Life is unpredictable, and having the right protection in place can provide peace of mind. Consider whether you have adequate cover for:
- Income protection – In case illness or injury prevents you from working.
- Critical illness cover – To help with financial security during serious health challenges.
- Life insurance – To protect your loved ones.
These policies can make a significant difference during unexpected events, ensuring your financial stability when you need it most.
Boost your pension pot
Even if retirement feels far away, starting early can make a big difference. Regular contributions now allow your investments to grow over time, helping you build the lifestyle you want later. Your new years resolution could be to review your pension strategy and consider whether you’re on track or if there are changes you should be making.
Start 2026 with confidence
At PM+M, our team of trusted financial advisers can help navigate you through the process of getting your finances in order for the upcoming year. Their tools, knowledge and objectivity will make the process much easier and simpler to understand – giving you peace of mind that the year ahead will be a successful one for helping you achieve more from your finances.
Contact our financial planning team today by emailing financialplanning@pmm.co.uk or calling 01254 679131.
The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.
