5 warning signs that your financial plan could be out of date

In recent years, the government has introduced a plethora of new legislation that could impact your finances.

But HMRC rules aren’t the only things that are changing. You may have seen your own circumstances evolve significantly since you last reviewed your financial plan.

Without staying on top of these changes, your financial plan can quickly become outdated. If this happens, it may no longer serve your needs and goals as effectively as it could.

By engaging regularly with your financial plan, you can help ensure it stays aligned with your circumstances, needs, priorities, and goals, as well as the financial world around you.

Here are five warning signs that your financial plan could be out of date.

1. You’ve recently experienced a significant change in circumstances

A range of big life events can impact your financial plans. For example, your circumstances may have changed significantly if you have recently:

• Retired
• Had a change in employment
• Separated from your partner
• Started cohabiting, got married, or entered a civil partnership
• Started supporting a loved one financially
• Suffered a bereavement
• Welcomed a new baby to your family
• Become unwell.

This list is not exhaustive; other changes in your life may also have impacted the efficiency of your financial plan.

If you think a recent change in your personal circumstances may have affected your situation, it’s often worth speaking with your financial planner to determine if any updates are needed.

2. You’ve revised your financial goals

Your goals are not set in stone. They are likely to evolve as you progress through life.

Financial goals can change for a variety of reasons, including:

• They are no longer relevant to your circumstances. For example, you may no longer need to save for retirement if you have now retired.
• You have achieved certain goals, such as paying off a mortgage.
• You have simply changed your mind about what you want out of your future. As an example, you might have been planning to relocate, but have since decided to stay in your current home.

However your goals have changed, ensuring your financial plan reflects your current ambitions is key.

3. Your income has changed, or you have acquired new assets

Changes to your household income can have a significant impact on your financial plan. It’s often worth speaking to your financial planner if you or your partner has:

• Received a pay rise
• Changed jobs
• Been made redundant
• Acquired a new source of income
• Received a large inheritance
• Become unable to work due to illness or injury.

Whether your earnings have gone up or down, keeping your financial plan up to date can help you make the most of your income and stay on track to achieve your goals.

In some cases, you may have acquired new assets since you last reviewed your financial plan. If you’ve received a bonus, an inheritance, or any other lump sum, your financial planner can help you determine an effective strategy for putting new assets to work.

4. You haven’t considered recent legislative changes

A variety of recent updates to the UK’s tax regime could mean your financial plan is no longer as tax-efficient as it once was.

Since 2024, we have seen:

• Dividend Tax rates rise by two percentage points, increasing the basic rate to 10.75% and the higher rate to 35.75%.
• Income Tax thresholds frozen for a further three years, extending the freeze to 2031.
• Capital Gains Tax (CGT) rates rise to 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, with additional increases to relief rates.
• Inheritance Tax (IHT) receipts rise, with the tax-efficient allowance (nil-rate band) frozen until 2031 and reforms to Agricultural and Business Property Relief.

What’s more, further changes have been announced for 2027:

• Pensions will be included in IHT calculations, meaning many unused pension pots could be subject to 40% IHT.
• Tax rates for savings and property income will rise, increasing by two percentage points.
• The tax-efficient allowance for Cash ISAs will effectively reduce to £12,000 a year for under-65s.

Keeping on top of these changes can be challenging. A financial planner can help you stay up to date with the latest announcements and evaluate how they could impact your finances.

5. You haven’t reviewed your financial plan for a year or more

Even if your personal circumstances haven’t changed significantly, or recent legislation doesn’t feel especially relevant for you, your strategy can gradually become less effective over time.

A financial plan isn’t intended to be static. It isn’t something you complete once, carve into stone, and live by for the rest of your lifetime.

Rather, it’s a living plan. It should grow with you as you progress through life.

As such, it’s wise to review your plan at least annually to help stay on top of recent and upcoming changes and help ensure your plan remains relevant and effective.

That said, changes can happen at any time, both personally and at a government level. If you’re concerned about how something could impact your financial plan, you can reach out to us at any time to evaluate what’s changing and how it could affect your wealth.

Get in touch

At J Edward Sellars, we understand that life is busy and staying on top of your financial plan can be challenging.

Our financial planners can help keep your financial plan up to date. Taking legislative and personal changes into account, we can review your plan to determine what tweaks – if any – are needed to keep you on track to achieve your goals.

Whether you’ve experienced changes to your personal circumstances, are concerned about new legislation, or simply want to check in on your financial plan, get in touch.

Email enquiries@jesellars.co.uk or call 01934 875 919 to find out more about how we can help you.

Please note

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

All information is correct at the time of writing and is subject to change in the future.

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.