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This article is for general guidance only and is not financial or professional advice. Any links are for your own information, and do not constitute any form of recommendation by Saga. You should not solely rely on this information to make any decisions, and consider seeking independent professional advice. All figures and information in this article are correct at the time of publishing, but laws, entitlements, tax treatments and allowances may change in the future.
As we embark on the new year, now’s the ideal time to think about anything you want to do a little differently in 2026.
Janeil Pierre, financial confidence coach and author of the book The Money Confidence Code, says financial wellness becomes increasingly vital as you get older. “When you achieve financial stability, you can focus on what truly matters - your health, relationships, and personal interests, without the burden of financial stress keeping you awake at night,” she adds.
The best goals for you will depend on your circumstances, but these expert financial tips should help your finances stay on track in 2026.
If you haven’t yet written a will, don’t put it off any longer. Two thirds of UK adults either don’t have a will or have one that’s out of date, according to the Will Aid charity.
Malvee Vaha, a financial adviser at Rathbones, says a well-written will should make it much easier for your family to sort out your affairs when you die. “It allows you to choose who will benefit and what they will get and ensure your estate is dealt with in the way you choose. It can also help to reduce the amount of inheritance tax payable on your estate,” she says.
If you already have a will in place, now could be the time to check it still matches your wishes. This is particularly important if you’ve recently gone through a major life event such as a divorce or the birth of a grandchild.
Simple alterations, such as changing an executor, can often be done by using a codicil. For larger changes, such as altering how your estate will be divided up, it’s best to write a new will.
Saga Legal has partnered with Co-op Legal Services who provide regulated legal services, helping to ensure you have the right level of support and protection for yourself and your family by putting in place the right will for your needs.
Find out moreTax thresholds that have been frozen for several years, as well as rising state pensions, mean there's hardly any of us that don't pay any tax at all on either income or savings. With a bit of planning, there's quite a lot you can do to reduce the tax that you pay on savings and investments. You could even cut your income tax bill.
A lasting power of attorney (LPA, or simply power of attorney in Scotland) is just as important as having a will, yet many people overlook it. An LPA allows you to appoint someone you trust to make decisions on your behalf if you lose the ability to do so yourself – whether through illness, accident, or age-related conditions such as dementia.
There are two types of LPA:
Without an LPA in place, your loved ones may face lengthy and costly court processes to gain authority to manage your affairs. Setting one up now gives peace of mind that your wishes will be respected and your finances protected if the unexpected happens.
You can apply online through the government website or seek professional advice to ensure everything is completed correctly. Saga Legal can also support you to set up a lasting power of attorney.
If you’re carrying expensive debts, it’s wise to start paying them down as soon as possible, says Sarah Coles, head of personal finance at Hargreaves Lansdown.
“In retirement, or as you’re approaching, it can be particularly valuable to clear your debts, which are harder to manage on a lower, fixed income,” she says.
Where possible, it makes sense to use your savings to clear debts as the interest you pay on your borrowing is often more than the amount you can earn on your savings. But there are also strategies you can employ to pay off multiple debts faster or more cheaply.
The “avalanche” method, for instance, focuses on paying off your most expensive debt first. Throw as much money as you can towards this debt, while keeping up with the minimum repayments on the others. Once you’ve cleared the costliest debt, focus on the next most expensive and so on.
The “snowball” method works in a similar way but prioritises your smallest debt (whilst making minimum payments on the others) as this will be quickest to clear. Then once that debt is cleared, you can add the minimum payments you were paying on that debt to help you clear the next one more quickly, and so on.
Following the recent cut in interest rates, you should consider whether you need to move cash savings to a more competitive savings account. Especially if you haven't switched recently, yours might be lagging behind.
ISAs can be a valuable way to reduce tax if you're at risk of going over the allowances for savings interest (or in the case of investments, the allowances for capital gains tax and dividend tax, which have both reduced in recent years).
You have until 5 April to maximise the current ISA allowance of £20,000. You can spread this allowance across a combination of stocks and shares ISAs and cash ISAs. The cash ISA allowance is reducing to £12,000 a year, but only for under-65s and not until April 2027.
If you haven't yet retired, reviewing your pension can be the wake-up call needed to get your retirement savings on track for the lifestyle you want when you give up work.
Those already retired should also regularly review their pension pot to ensure it’s performing as well as it can.
Alice Haine, personal finance analyst at online investment service Bestinvest, says: “No-one wants to run out of money in the final stages of their life when their health might not be as optimal, which is why the decisions we make now can have a major impact on how well we live in the future.”
Consider whether your pension has the right mix of assets and risk approach to reach your retirement goals, and how much you’re paying in annual fees.
Haine adds that traditionally people were encouraged to switch away from riskier assets once they hit retirement. But with average life expectancy at 85 years for a 65-year-old man and 87 for a 65-year-old woman (and of course, you could live longer than the average), you may need to think about funding retirement for more than 20 years. “You might want to consider holding on to some higher risk investments to prioritise investment growth for longer, rather than going low-risk the moment you retire,” she says.
If you don’t feel confident doing this yourself, consult a qualified financial planner. This is also a good time to consider whether you need to increase your pension contributions. Online pension calculators can give you a good indication of how much you need to pay in to meet your desired retirement income.
Remember that any money you pay into your pension gets automatically topped up by 20% for basic rate taxpayers, while higher or additional-rate taxpayers may be able to claim back another 20% or 25% respectively through their tax returns.
A new year is the ideal time to map out your retirement plan, thinking about the type of lifestyle you want to live and how you’ll reach those goals. You can do this whether you’re approaching retirement or have already retired.
Research shows a single person now needs around £13,400 a year to reach a ‘minimum’ retirement standard, while £43,900 (or £60,600 for a couple) is required for a ‘comfortable’ retirement standard that includes weekend breaks in the UK and a two-week holiday abroad. Once you factor in tax, your actual income needs to be higher than this.
Pierre says: “While the future may hold surprises, taking stock of your pensions, savings, and investments today gives you a clear picture of where you stand and highlights any areas that need attention. Think of it as creating your personal financial roadmap.”
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Get a FREE review of your will and £50 off follow-up services with Saga Legal. T&Cs apply. Ends 31/08/25. Quote SAGAFLR50.
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