4 times you might want to review your financial plan

When you create your financial plan, you might envision everything following the path you’ve set out. However, life is often unexpected, and your plan should be updated to reflect changes to your circumstances.

So, as well as your regular meetings, you might want to book additional reviews with your financial planner to ensure your plan continues to reflect your situation. Here are four times you might want to call us to schedule a review. 

1. Your goals have changed

Your goals are at the heart of your financial plan and guide the decisions you make. 

Your goals aren’t set in stone, and it’s normal to change your mind at times. Perhaps you’ve decided you want to start a business, step back from work sooner than expected, or help a family member get on the property ladder?

Your financial planner could help you understand if these goals can be achieved with your current plan or if adjustments may be needed. 

For example, if you want to retire five years earlier than you planned, do you need to increase your pension contributions now, or would you need to take a lower income to ensure your pension lasts your lifetime?

By updating your financial plan, you can answer these questions and move towards your new goal by understanding what you need to do to turn it into a reality. 

2. You’ve been promoted or secured a new job

While you’re celebrating securing a new position at work, don’t forget to update your financial plan.

If your income has increased, it can be easy for lifestyle creep (where your spending increases at the same rate as your income) to happen. Splurging more on day-to-day expenses you enjoy isn’t necessarily a bad idea, but you might want to balance it with steps that could improve your long-term finances, such as regularly investing or boosting pension contributions. 

Your financial planner could help you:

• Update your budget to reflect your new income
• Assess if your new income could mean your tax position has changed
• Review your employee benefits to understand how to get the most out of them.

An updated review could help you use your money to support your goals and create a lifestyle you enjoy. 

3. You’ve welcomed a child

A growing family often triggers a financial review because your commitments and priorities may change. 

Your day-to-day budget may need to be updated to reflect you or your partner taking time off work or to include childcare costs. 

You might also want to think further ahead. For example, do you want to create a fund that will pay for school fees or start building a nest egg for when they reach adulthood?

It can be difficult to think about, but you may also want to take steps to ensure your child would be financially secure if you passed away. There are several ways you can pass on assets to a child, including naming them as a beneficiary in your will or setting up a trust. If you’d like to review your estate plan to reflect your growing family, please get in touch. 

4. You’ve received an inheritance

Receiving an inheritance can result in a lot of conflicting emotions. It could mean you have more financial freedom and are able to do some of the things that were previously out of reach, but you may still be grieving the loss of a loved one and wondering how they’d like you to use the assets they’ve left behind.  

When you’re ready, a financial review could help you understand the inherited assets and how they fit into your existing plan. Whether you decide to use the inheritance to fund your retirement or spend it now, incorporating it into your plan could help you assess all the options and the implications of your decision. 

You might also want to take a look at your own estate plan after receiving an inheritance. It could change who your beneficiaries are, how you want to pass on assets, and whether Inheritance Tax is something you could benefit from considering. 

Get in touch if your circumstances have changed

There are lots of other reasons why your financial plan could benefit from a review. So, whether you’re moving home or you want to bring your retirement date forward, we’re here to help you update your financial plan when your circumstances change.

Please get in touch if you’d like to arrange a meeting with your financial planner. 

Please note:

This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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.

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 Financial Conduct Authority does not regulate estate planning, trusts or Inheritance Tax planning.