Why preparing for your annual financial review matters
In my experience, the clients who get the most from their review are those who've spent a little time – even just 20 minutes – thinking through where things stand before they walk in the door. Not because they need all the answers – but because the conversation is richer, the advice is more focused, and nothing important gets missed.
How to prepare for your annual financial review: eleven things to consider
1. How have your circumstances changed?
Has anything significant happened in your life since your last review that your financial planner may not be aware of? A change in employment, a health development, a relationship change, a major purchase or sale – all of these can ripple through your financial plan in ways that aren't always obvious. Your planner's job isn't just to validate your thinking – it's to challenge it, gently, where that adds value. If in doubt, mention it.
2. Is your cash working as hard as it should be?
Think about the total cash you hold across all your accounts – your bank, building society, and anything with National Savings & Investments (NS&I). The question isn't simply whether you know what's there. It's whether it's in the right place, earning the right return, for the right purpose. In a period of falling – but still elevated – interest rates, excess cash can feel safe while quietly losing ground to inflation. Your planner can help you assess whether that balance is still right.
3. What are your expected outgoings in the next 6–12 months?
Has your day-to-day spending changed recently – perhaps due to a move, a change in lifestyle, or rising costs? Consider one-off outgoings too: a home renovation, a family holiday, school or university fees, or a significant purchase. The more your planner knows about what's coming up, the better they can plan around it.
4. What’s your current income?
Make sure your planner has your latest figures – your gross income (before tax) and your net income (what actually lands in your account). If your income includes a bonus, note how much it is and when it's typically paid. Bonuses can create meaningful planning opportunities – from maximising pension contributions to making use of annual allowances – and timing matters.
If tax efficiency is on your mind, you can consider whether it's better to pay your bonus into your pension or use it to overpay your mortgage. If appropriate, salary sacrifice can also be a way of managing your tax efficiency.
5. What’s your current mortgage position?
Do you know when your current mortgage deal is due to renew? Interest rates have moved significantly in both directions in recent years, so the terms available at renewal could look very different from your existing arrangement. For those approaching retirement, the question may be broader: does it make sense to pay down the mortgage before you stop working, or to deploy capital elsewhere? Your planner can help you think through the implications – and, where appropriate, work alongside your mortgage adviser to ensure everything is joined up.
6. Where do your pensions stand before your financial review?
For many people, a pension is their largest financial asset – and yet it's often the least examined ahead of a review. It's worth knowing where all your pensions are held, what your projected retirement income looks like, whether you've already taken any benefits, and whether consolidation might simplify your position.
From April 2027, unused pension funds will be included in your estate for inheritance tax purposes. This is a significant shift, which affects how many people should think about the order in which they draw on different sources of income, gifting, and estate planning. (Tax treatment depends on individual circumstances.) If you haven't yet discussed what this means for your plan, your annual review is the right moment to do so.
7. When are you planning to retire?
If your thinking has shifted – whether you're now hoping to retire earlier, later, or in a more phased way – your financial plan needs to reflect that. Even a small change in your target retirement date can affect how much you need to save, how your investments should be structured, and when you should start drawing on different sources of income. Drawing on ISA savings first while deferring pension income can be a tax-efficient strategy. But the right approach depends on your specific circumstances and the tax rules at the time.
For people who may one day need care – whether for themselves or a family member – the financial implications are worth raising sooner rather than later. If you find yourself supporting children and ageing parents, you might need to factor this into your retirement planning as well.
You might find our guide on how to plan for the retirement you want helpful.
8. Have your family circumstances changed?
Family changes – a new arrival, a child leaving home, a marriage, a separation, or a bereavement – can have significant financial implications for your estate planning, asset structure, and income. They can also affect your protection needs. If it's been a while since you reviewed your life cover, income protection, or critical illness cover, this is worth raising with your planner.
9. Would you like to make any gifts to family?
If you're thinking about making financial gifts to children, grandchildren, or other family members, it's worth discussing this with your planner before you act. Gifts made without a plan can inadvertently create an inheritance tax liability – or reduce the flexibility you'll need later. Your planner can help you give in a way that's generous to your family and sensible for your own financial security.
Find out more about tax-efficient ways to give to family.
10. What does your tax position look like?
Have you made full use of your annual allowances – ISA, pension, capital gains? Is your income structured to avoid unnecessary exposure to higher-rate tax? Are there gains you should be crystallising, or losses you could be using? If you complete a self-assessment tax return, confirm where you are with that ahead of your review – not just whether it's filed, but whether it surfaces anything your planner should know about.
11. When did you last review your will?
Your will is only as useful as it is up to date. An outdated will can mean your estate risks passing to someone you didn’t intend it to go to, or that more of it goes to HM Revenue & Customs (HMRC) than necessary.
Think about whether your executors and beneficiaries are still the right people, whether your estate has changed significantly, and whether any major life events mean your will needs updating. With the pension inheritance tax changes on the horizon, the relationship between your will and your pension nominations – the people or causes you want to leave your pension to after you pass away – is also worth reviewing.
Your Rathbones financial planner can work alongside your solicitor to ensure your estate planning is joined up and reflects both your financial plan and your personal wishes.
Make the most of your annual financial review
The decisions you make now – about when to draw income, how to structure your assets, how to protect what you've built, and how to pass it on – will shape the next chapter of your financial life. Your annual review is where those decisions get made well.
Work through these eleven points before your next review. Make a note of anything that has changed, anything you're unsure about, or anything you'd like to explore. If something prompts an urgent question, don't wait – get in touch with your Rathbones financial planner directly. We're here to help, whenever you need us.
Ready to prepare for your review? Speak to your Rathbones financial planner today.
