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As the year draws to a close, it’s easy to get caught up in the run-up to Christmas, but before you switch off for the holidays, it’s worth taking a moment to check in on your finances.
A little end-of-year planning can make a big difference to how confident, secure, and prepared you feel heading into 2026.
Here are six smart moves to help you make the most of what’s left of 2025 and set yourself up for a stronger financial year ahead.
1. Review your pension contributions
If you’re employed, your pension contributions are likely ticking along automatically, but are they still right for you?
If you’ve received a pay rise, changed jobs, or had an inconsistent year of income (especially for business owners and freelancers), it’s a good idea to check whether your contributions are keeping pace with your long-term goals.
Remember, pension contributions attract tax relief, meaning that every £100 contribution costs you only £80 as a basic rate taxpayer (and even less if you’re a higher or additional rate).
If you can afford to top up before the tax year ends on 5 April, it could be one of the most efficient ways to boost your retirement savings.
2. Maximise your ISA allowances early
ISAs remain one of the most flexible and tax-efficient ways to save and invest.
For the 2025/26 tax year, you can invest up to £20,000 in an ISA — and once the allowance is gone, it’s gone.
If you have cash sitting in low-interest savings, consider whether a Stocks & Shares ISA might serve you better over the long term. While investments can go down as well as up, staying invested over time can help outpace inflation.
And if you already have multiple ISAs, think about consolidating them. It can simplify your finances and help you stay on top of your overall strategy.
3. Use your capital gains and dividend allowances
The annual Capital Gains Tax (CGT) allowance has been significantly reduced, so it’s more important than ever to be aware of what you’re selling and when.
If you hold investments outside of ISAs or pensions, realising some gains before the tax year-end could help you stay within your annual exemption and avoid paying unnecessary tax later.
The same goes for dividend allowances, which have also been cut in recent years.
By planning ahead, you can make the most of available reliefs and structure your portfolio more efficiently.
4. Review protection, wills, and estate plans
Financial planning isn’t just about growing wealth; it’s about protecting it too.
Review your life insurance, critical illness cover, and income protection to ensure they still align with your circumstances. If your family has grown, you’ve bought a property, or your income has changed, you may need to update your cover.
Similarly, make sure your will and lasting power of attorney (LPA) are in place and reflect your current wishes.
These are often overlooked but form an essential part of ensuring your finances and your loved ones are protected.
5. Make the most of tax-efficient giving
If you’re planning to make charitable donations, there can be real tax advantages to doing so before 5 April.
Under Gift Aid, charities can claim an extra 25p for every £1 you donate, and higher or additional rate taxpayers can also claim back the difference through their self-assessment.
For business owners, donations through your company can often be deducted from profits before tax, a win-win for generosity and financial efficiency.
6. Set your goals for 2026
Once you’ve taken care of the essentials, take a step back and reflect on the bigger picture.
What does financial success look like for you next year? More savings? Less debt? Greater freedom with your time?
Setting clear, achievable goals and mapping out how to get there is what turns good intentions into real progress.
A simple financial review, a clear plan, and a few small tweaks now can make all the difference in how ready and confident you feel when 2026 arrives.
Final thoughts
Financial planning doesn’t have to be complicated.
A quick review now can help you make the most of available allowances, avoid missed opportunities, and head into the new year feeling calm and in control.
If you’re unsure where to start, consider speaking with a qualified financial adviser who can help you make sense of your options and tailor a plan that fits your goals.
