{"id":45724,"date":"2026-01-14T14:54:11","date_gmt":"2026-01-14T14:54:11","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/?p=45724"},"modified":"2026-05-26T18:14:53","modified_gmt":"2026-05-26T18:14:53","slug":"perspective-8-financial-resolutions-for-2026","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-uk\/insights\/perspective-8-financial-resolutions-for-2026","title":{"rendered":"8 financial resolutions for 2026"},"content":{"rendered":"\n

Substantial changes to personal taxation and investment in the 2025 Autumn Budget<\/a> make it more important than ever to review your finances.<\/p>\n\n\n\n

From assessing your investments and pensions to maximising use of personal allowances to manage tax bills, a periodic review of your financial position ensures all your arrangements work best for you and your family.<\/p>\n\n\n\n

1. Assess your spending and saving habits<\/strong><\/h2>\n\n\n\n

Persistent inflation over recent years means it\u2019s imperative to have a thoughtful budgeting plan in place, to help protect your purchasing power and boost financial resilience. By refining your budget, you gain clarity on discretionary spending \u2013 freeing up resources to advance meaningful savings goals or accelerate any debt repayments.<\/p>\n\n\n\n

It\u2019s generally considered prudent to have around six months\u2019 worth of essential expenditure in an easy-access savings account. If you already have a rainy-day fund and are saving for goals that are at least five years away, then it\u2019s worth considering the merits of diversifying investments. Investing in equities on the stock market, for example, can be an effective way to grow wealth over the long term.<\/p>\n\n\n\n

The chart below shows a simplified example of how \u00a3100 held in cash savings compares to an investment in equities (FTSE All World Index) over nearly three decades. Of course, investing comes with more risk than holding your money in a cash account, as your investments may lose as well as gain value, and there are fees to consider. The best way to preserve your portfolio over the long term is to diversify your investments.<\/p>\n\n\n\n

\"Cash<\/figure>\n\n\n\n

Source: RBC Brewin Dolphin\/LSEG Datastream. Neither simulated nor actual past performance are reliable indicators of future performance. Performance is quoted before charges, which will reduce illustrated performance. <\/em><\/p>\n\n\n\n

2. Revisit your financial goals <\/strong><\/strong><\/h2>\n\n\n\n

The new year is a good time to reconsider your financial goals \u2013 what you would like to achieve over the short, medium and long term. Your goals might have changed since your last annual review, in which case you may need to speak to your wealth manager and adjust where you\u2019re saving your money and\/or the level of investment risk in your portfolio.<\/p>\n\n\n\n

We can look at whether you\u2019re on track to achieve your goals and, if not, the changes you might wish to consider making. We can also build an investment portfolio<\/a> that suits your individual needs and works hard to help you preserve and grow your money over the long term.<\/p>\n\n\n\n

3. Make the most of your tax allowances<\/strong><\/strong><\/h2>\n\n\n\n

There are a whole host of tax allowances and exemptions to make use of each year. Many people wait until the end of the tax year to maximise their allowances, but sometimes the sooner you act, the better your chances of achieving your financial goals.<\/p>\n\n\n\n

Currently, you can invest up to a maximum of \u00a320,000 into Individual Savings Accounts (ISAs<\/a>) each year to benefit from tax-efficient income and growth. However, from April 2027, the annual savings limit in cash ISAs<\/strong> will reduce to \u00a312,000, but only for those aged under 65. The annual limit for stocks and shares ISAs<\/strong> will remain unchanged at \u00a320,000.<\/p>\n\n\n\n

Withdrawals from ISAs are tax-free, which makes them a useful investment vehicle for pre-retirement goals, as well as a tax-efficient source of income in retirement<\/a>.<\/p>\n\n\n\n

Other individual allowances for the 2025\/26 tax year include the capital gains tax<\/a> (CGT) exemption and the dividend allowance, which are \u00a33,000 and \u00a3500, respectively.<\/p>\n\n\n\n

Allowance\/rate<\/strong><\/td>Amount\/percentage<\/strong><\/td>When it applies<\/strong><\/td><\/tr>
Dividend allowance<\/strong><\/td>\u00a3500<\/td>Annual tax-free dividends<\/td><\/tr>
CGT exemption<\/strong><\/td>\u00a33,000<\/td>Annual tax-free gains<\/td><\/tr>
Basic-rate CGT<\/strong><\/td>18%<\/td>CGT rate if your gains and taxable income fall within the basic rate income tax limit<\/td><\/tr>
Higher\/additional rate CGT<\/strong><\/td>24%<\/td>CGT on gains above the CGT exemption for higher or additional-rate taxpayers<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

4. Check your pension is on track <\/strong><\/strong><\/h2>\n\n\n\n

If you haven\u2019t checked the value of your pension pot(s) recently, this is the time to do so.<\/p>\n\n\n\n