The start of a new tax year is a natural moment to pause and take stock of your finances. At this time of year, some allowances will reset and you may experience a change in your income. Small decisions that you make now, can have a lasting impact over the months ahead.
Rather than overhauling all of your finances at once, focussing on a few key areas can help you feel more organised, confident and in control. Here are five simple but important checks to make as the new tax year begins.
- Check whether you’ve used your ISA allowance
Your Individual Savings Account (ISA) allowance resets at the start of each tax year. For the tax year 2026/2027 the ISA allowance is £20,000. If you don’t use it, you lose it as any unused allowance can’t be carried forward.
ISAs are a flexible, tax-efficient way to save, whether you’re building long-term wealth, planning for retirement or simply creating future financial flexibility. There are four types of ISA, cash, stocks and shares, innovative finance and lifetime. This is a good time to review the type of ISA you’re using and determine whether it still aligns with your goals. What suited you a few years ago may not be the best fit now.
- Review your workplace pension contributions
Pay rises, promotions and bonuses are common at this time of the year, but your pension contributions don’t always increase automatically.
A small increase to your pension contributions after a pay rise can make a significant difference over time, especially when combined with employer contributions and tax relief. Because your take-home pay may already feel higher, this is often one of the easiest times to boost retirement savings without impacting on your day-to-day spending.
- How Inheritance Tax changes may affect your pension
Currently the value of your pension is not included in your estate when you die, therefore it is not liable to Inheritance Tax (IHT). However, it was announced in the Autumn Budget of 2024 that as of April 2027, most unused pension funds will be included in your estate when calculating IHT. It is important to consider the impact that this may have on your retirement planning strategy.
Your pension sits outside your will, meaning that beneficiary or nomination forms play a crucial role in deciding where your assets go if something happens to you.
Major life changes such as marriage, divorce, new children or bereavement can easily make existing nominations outdated. A quick review now can help ensure that your wishes are clear and reduce the stress for your loved ones in the future.
- Check savings rates on existing accounts
Savings rates change regularly, and accounts that were competitive a few years ago may no longer offer you good value. Leaving money in low-interest accounts can mean your savings lose real value over time, particularly during periods of higher inflation.
Reviewing your existing savings accounts can help you to ensure your cash is working as hard as possible. You may also want to consider whether different savings pots serve different purposes. For example, separating your emergency fund from money set aside for planned spending.
- Book a new tax year review if you want help prioritising ISAs, pensions and allowances
As your finances become more complex, it can be difficult to know where to focus first. A new tax year review can help you prioritise ISAs, pensions and allowances in a way that aligns with your goals and circumstances.
This can be particularly helpful if your income has changed, you’re approaching retirement or you simply want reassurance that you’re using your available allowances efficiently. Acting at the beginning of the tax year gives you more flexibility.
None of these checks require drastic changes or major financial decisions. Taken together, they form a practical reset that can help you to make the most of the year ahead.
We’re here to help
If you’d like some help with your retirement planning, or to chat through the investments you hold with Aegon Financial Planning, contact your Financial Planning Manager, call us on 0800 464 3079*, or request an appointment using the button below.
* Call charges vary. Lines are open Monday to Friday between 8.30am and 5.30pm. All calls are recorded for business purposes.
Afp267. Exp 04/2027
Market Commentary – Quarter 1, 2026