Your New Year’s resolutions for a stronger financial future in 2026
You have been working hard to build up your pensions and savings, and you have tried to keep one eye on the headlines as you go. At the same time, prices feel higher, taxes feel harsher, and it’s not always clear what each new announcement really means for you.
With so many unknowns it’s easy for another year to pass by without taking action. Now that The Autumn Budget 2025 has confirmed key decisions on tax, pensions, ISAs, and Inheritance Tax (IHT), 2026 is a natural point to pause and reset.
Think of the ideas below as realistic New Year’s resolutions for your money. You don’t need to tick every box, but even a couple of well-chosen steps can move you closer to the future you want.
1. Revisit your retirement age and income plan
Many people have a retirement age in mind but have never checked it against what their pensions and investments are likely to provide.
The earliest age most people can start drawing many private pensions, often known as the normal minimum pension age, will rise from 55 to 57 on 6 April 2028. That change may affect how and when you access different pots. In 2026, it’s worth completing your annual check of your pensions and investments, by checking your State Pension forecast on GOV.UK, and asking what your income might look like if you slowed down or stopped work at 60, 62, or 65. Seeing numbers on a page is more useful than carrying worries or “what-ifs” in your head.
2. Make the most of pension tax relief while thresholds are frozen
The Autumn Budget 2025 extended the freeze on income tax and National Insurance thresholds to 2031, which means more people will be gradually pulled into higher tax bands as their earnings rise.
Some individuals choose to review how much they’re paying into pensions in light of these changes. Where affordable and within the current £60,000 annual allowance, paying more into a pension may offer tax relief, depending on personal circumstances.
The rules on tax relief and carry forward are clearly outlined on the government’s pension tax relief page, making it easy to check what applies to you.
3. Ensure you’re making the best use of your ISA allowance in 2026
ISAs remain a straightforward way to grow money, free from Income Tax and Capital Gains Tax. From 6 April 2027, the annual subscription limit for cash ISAs will be set at £12,000 for savers under 65, while the current £20,000 cash ISA allowance will remain in place for those aged 65 and over.
That makes 2026 a good year to review your ISAs. This could include looking at any older accounts, considering their cash versus investment split, and understanding how to plan to use the available allowance while current limits still apply. If you’re under 65, thinking ahead about how much you truly need in cash will help you adjust smoothly once the new rules take effect.
4. Rebalance your investments for the year ahead
The last few years have brought sharp moves in inflation, interest rates, and markets, so many portfolios now carry a different level of risk than initially intended.
Rebalancing means nudging your holdings back towards the mix originally chosen, instead of letting one part dominate because it’s done particularly well or badly. If you work with us, part of our role is to revisit your risk profile and rebalance where appropriate. If you invest on your own, you may wish to check whether your current mix still fits your goals, time frame, and capacity for loss.
5. Review your Inheritance Tax (IHT) position, especially if you own property
IHT thresholds are frozen until 2031, and HMRC’s latest Inheritance Tax statistics show that more estates are being brought into scope every year.
If property makes up a significant part of your assets, 2026 is a good time to estimate your estate value and see whether IHT might affect your plans. Depending on individual circumstances, people often review their Wills, use gifting allowances, or explore options such as trusts or Business Relief, with a financial adviser or solicitor.
6. Check whether your protection policies still fit your life
Life changes, but insurance policies often stay exactly as they were on the day you bought them. Guidance from MoneyHelper stresses how regular reviews help ensure your cover still matches your needs.
For example, your mortgage may now be smaller or completely paid off, but you might still need cover that replaces income or supports pension contributions if illness stops you from working. Checking what each of your policies do, who it protects, and whether the sums insured still make sense, can give you confidence that nothing has been overlooked.
7. Strengthen your cash buffer before making big decisions
As retirement gets closer, flexibility often becomes more important. Having an accessible emergency fund can help reduce the risk of needing to sell long-term investments at the wrong moment or feeling pressure to draw from pensions earlier than planned.
MoneyHelper’s guide on emergency savings notes that many people aim for around three to six months of essential outgoings in easy-access savings, then adjusting that target to their own situation. Reviewing your buffer in 2026 can help you handle surprises and give you more freedom to phase into retirement at your own pace.
Common pitfalls to avoid when you’re planning alone
When life is busy, it’s easy to delay decisions and hope things will feel clearer later. Our Adviser Insight article on how inertia in decisions can derail financial goals and our article on the hidden costs of doing nothing both explore how delay can quietly eat into your future options and confidence.
Turning resolutions into real progress
A good financial adviser helps you understand changes at the global, national, and individual level, and can support you in keeping your plans up to date as life moves on.
If you would like 2026 and beyond to feel more organised and less uncertain, a conversation with a Flying Colours Adviser is a great place to start. Together we can work out which resolutions matter most for you and how to put them into action.
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.
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 (a minimum of five years) and should fit with your overall risk profile and financial circumstances.
A pension is a long-term investment not normally accessible until age 55 (57 from April 2028). The fund value may fluctuate and can go down, which would affect the level of benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension contributions, withdrawals, and estate planning will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in future Finance Acts.
The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, or Will writing.
Life insurance and income protection policies typically have no cash-in value at any point and cover will cease at the end of the term. If premiums stop, the cover will lapse. Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary between providers and will be explained in the policy documentation.