With 2025 now firmly in the rear-view mirror and 2026 underway, you may have taken the time to set yourself a few new year resolutions.
Many people seem to have focused on their personal wellbeing or lifestyle changes, with a YouGov survey showing that:
- 23% of respondents wanted to exercise more
- 17% aimed to lose weight
- 11% planned to eat more healthily.
Setting yourself targets such as these is admirable. However, the same survey revealed that only 4% of respondents set a goal to improve their financial management.
This may be surprising, as the start of a new year is often a good time to review your finances and make changes that put you on a firmer footing for the year ahead.
With that in mind, continue reading to discover five financial new year resolutions that may be worth considering in 2026.
1. Top up your pension contributions
Your pension is one of the most effective ways to prepare for the future, and reviewing your contributions at the start of the year can help ensure they remain aligned with your long-term goals.
Even seemingly insignificant increases can have a meaningful effect over time. Raising contributions by 1% or 2% at the start of the year could feel manageable each month, all while significantly bolstering the value of your retirement fund if sustained over time.
One of the main advantages of saving into your pension is tax relief. This is when the government essentially “tops up” your contribution based on your marginal rate of Income Tax, meaning a £100 contribution would only “cost”:
- £80 as a basic-rate taxpayer
- £60 as a higher-rate taxpayer
- £55 as an additional-rate taxpayer.
You can typically receive tax relief on private pension contributions worth up to 100% of your annual earnings.
Tax relief can give your retirement fund a considerable boost, so it’s worth ensuring you’ve made full use of it at the start of the year.
2. Set up or boost your emergency fund
An emergency fund is essential to maintaining your financial security, serving as a buffer for unexpected expenses or a sudden loss of income.
If you don’t have an emergency fund, the start of the year could be the ideal time to set one up. Even if you already have one, it’s still worth reviewing whether it’s sufficient.
Your emergency fund should ideally cover between three and six months’ worth of essential household expenses.
If you’re self-employed or have many dependents, it may be wise to hold as much as 12 months’ worth of expenses.
Maintaining a robust emergency fund ensures you won’t need to exhaust funds earmarked for other purposes, preventing disruption to your long-term progress in 2026.
3. Make a will, or review your existing one
Your will is perhaps one of the most important documents you can make. Without one in place, your assets may not be distributed according to your wishes, and your loved ones could face lengthy legal disputes at an already difficult time.
A will is especially vital if your circumstances aren’t straightforward. For instance, if you’re unmarried, have stepchildren, or wish to leave assets to people outside your immediate family, your will may provide some much-needed clarity.
It can also reduce the risk of disputes between your beneficiaries and, in some cases, support more efficient Inheritance Tax planning.
Even if you already have a will in place, it’s important to note that it’s a “live” document. The start of the year is a good time to ensure it remains up to date and still reflects your wishes.
4. Ensure your financial protection is still adequate
It’s easy to overlook financial protection, as you may assume that once in place, it will be sufficient to safeguard you and your loved ones should the worst happen.
Life cover, income protection, and critical illness cover can provide financial support if illness, injury, or death affects your ability to maintain your standard of living and support those close to you.
However, the level of cover you have previously arranged might not reflect your current situation.
Changes such as moving home, receiving a pay rise, or welcoming a new child to the family can all affect how much protection you need.
As such, reviewing your protection policies at the start of the year could ensure they remain suitable. Even just knowing you have the appropriate cover in place can provide reassurance throughout 2026.
5. Make the most of your ISA allowances
Individual Savings Accounts (ISAs) are a practical tool for saving and investing your wealth tax-efficiently.
Each year, you can contribute up to £20,000 across your ISA accounts, and any growth or interest is free from Income Tax, Capital Gains Tax, and Dividend Tax.
It’s often beneficial to use your ISA allowance earlier in the year. Indeed, contributing sooner rather than later gives your wealth more time to potentially grow within the tax wrapper of an ISA.
Still, if you haven’t made full use of your ISA allowance yet, the start of the year could be the ideal opportunity to do so before it resets in April.
You might also want to think ahead to the start of the 2026/27 tax year and consider the ways you can utilise your ISA allowance earlier.
Data from AJ Bell shows that if you’d invested in your ISA on the first day of each tax year since their inception in 1999, you would be £19,381 better off than someone who had invested on the last day of each year.
Even though you would have contributed the same amount, leaving your wealth invested for longer has the potential to deliver stronger returns over time.
Get in touch
We could help you set realistic financial resolutions for 2026, and then stick to them.
Please use our search function to find your nearest Verso office, or for Verso Investment Management enquiries, please contact us at info@versoim.com or call 020 7380 3300.
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.
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. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
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.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
The Financial Conduct Authority does not regulate tax planning, estate planning, or will writing.