Financial planning is rarely a one-off event. Rather, it’s a lifelong process that evolves alongside your personal and professional journey.
At every major life stage, your goals, risks, and responsibilities shift. As such, your financial plan will also need to adapt and change to suit your current circumstances.
Understanding when and how to revisit your plan can help you achieve long-term security and avoid or be prepared for any unexpected challenges along the way.
While financial planning can benefit you at every stage of your life, here are five key events when it’s particularly valuable.
1. Marriage
Getting married brings significant changes to your financial situation, often in ways that aren’t immediately obvious.
For instance, marriage unlocks certain tax benefits. One key example is that spouses can transfer assets between each other without triggering Capital Gains Tax (CGT), which can be a valuable advantage, particularly in scenarios like selling a business.
Some aspects of your financial life also change by default. For example, your existing will is typically invalidated upon marriage, and your spouse becomes the primary beneficiary, meaning you may need to create a new one to reflect your current wishes. But remember, anything you leave to your spouse is generally exempt from Inheritance Tax (IHT), offering another advantageous planning opportunity.
Marriage is also an opportune moment to have an open and honest conversation about your collective finances. Will you combine savings? Share financial goals? Or build a joint plan for buying a shared home, raising a family, or investing for the future?
Marriage opens the door to a range of decisions, and a financial planner can help you make informed choices together.
2. Divorce
Unfortunately, a significant number of marriages end in divorce, and reviewing your finances during and after your split can be essential for protecting your future.
Divorce often involves dividing shared assets, which may include property, savings, and, importantly, pensions. Deciding whether and how to split such significant assets can have a considerable impact on your long-term financial stability.
You can read more about splitting pensions in divorce in our previous article on the topic.
You may also need to arrange a new mortgage as well as rewrite your will, as your former spouse may still be a key beneficiary.
Divorce can be emotionally and financially complex, but a financial planner can work with you to help ensure your independence and stability are protected as you move forward.
3. Retirement
As you approach or enter retirement, it’s a good idea to take stock of your financial situation. With people living longer than ever, retirement can stretch over several decades, making it even more important to ensure your finances will last.
You’ll need to consider whether your savings are sufficient to meet your goals, not just for daily living and planned expenses, but also for unexpected costs like long-term care. You may also want to think about your legacy and whether you’ll have enough to pass on to your beneficiaries.
A financial planner can help you understand how far your wealth will stretch, create a tax-efficient withdrawal strategy, and identify ways to make the most of your pensions, savings, and other investments. They can also help you adjust your plans over time, so that your finances remain aligned with your lifestyle, health, and evolving goals.
4. The birth of a child or grandchild
Welcoming a child or grandchild is one of life’s most joyful milestones, but it also comes with significant financial implications. Whether you’re becoming a parent or embracing the second wind of grandparenthood, it’s an important moment to revisit your financial plan.
From childcare and education costs to the reduction of income during parental leave, there will likely be both immediate and long-term changes to your financial plan. You may also want to explore life insurance options, update your will, or establish a trust to support your child’s future.
If you’re a grandparent, you may want to help with schooling, contribute to a savings fund, or plan to leave a legacy.
Whether you’re planning for school fees, university funding, or simply providing security for the next generation, a financial planner can help ensure you’re well-positioned to meet these goals.
5. Bereavement
The passing of a partner or close family member can immediately affect your income, assets, and long-term security.
If your finances were closely linked, you might need to reassess your financial position and make decisions about how to manage your shared assets. It’s also a time when Inheritance Tax (IHT), probate, and settling outstanding debts come into play, and you could find yourself with a significant inheritance that you need to manage.
Additionally, you may need to rethink your retirement plans or future goals, and losing a loved one could be a prompt to update your will or other estate planning documents.
A financial planner can help restructure your finances to reflect your new circumstances, advise on tax liabilities, and support you in building a revised plan for the future.
You can read more about how to manage your finances after bereavement in our previous article on the topic.
Get in touch
Life’s journey is rarely straightforward, but having a solid financial plan can help provide certainty and security at every twist and turn.
To speak to a financial planner today, get in touch.
Email hello@solusfinancial.co.uk or call us on 01245 984546.
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.
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.
The Financial Conduct Authority does not regulate estate planning, cashflow planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.
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.
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.