An annual financial review is like a service for your money. Just as you'd MOT your car, your finances need a yearly check to make sure everything is performing well, nothing is being wasted, and you're still heading towards your goals. Block out 2-3 hours once a year (the start of the tax year in April is ideal) and work through this checklist.
Net Worth Snapshot
Start by calculating your net worth: total assets minus total liabilities. Assets: savings accounts, ISAs, pensions, investments, property value, car value, valuable items. Liabilities: mortgage balance, credit card debt, student loans, personal loans, overdraft, car finance. Write it down and compare to last year. Is it growing? If not, why not? Net worth is the single most important number in your financial life — it tells you whether you're making progress.
Savings and Investment Review
For each savings account and investment:
- Check the interest rate. Has it dropped? Is there a better alternative?
- Check your ISA — have you used your allowance? Is the rate competitive?
- Review investment performance. Not against short-term market movements, but against your long-term plan.
- Check fees on investment platforms and funds. Fees compound and erode returns.
- Rebalance if needed. If your target allocation is 80% stocks / 20% bonds but market movements have shifted it, rebalance.
Pension Check
Review your pension situation:
- Read your annual pension statement. Do you understand the projected retirement income?
- Are you contributing enough to get your full employer match?
- Have you lost track of any old workplace pensions? Use the Pension Tracing Service.
- Review the fund your pension is invested in. Is it appropriate for your age and risk tolerance?
- Consider increasing contributions, especially if you got a pay rise this year.
Debt Review
List all debts with current balances and interest rates. Compare to last year — are they reducing? If you have high-interest debt, is your repayment strategy (snowball or avalanche) working? Check for opportunities to reduce interest: balance transfer deals, loan consolidation, or negotiating lower rates with existing lenders.
Insurance Audit
Review every insurance policy:
- Are you still getting the best deal on car, home, travel, and pet insurance?
- Has your life changed? New car, new home, new valuables — does your cover reflect your current situation?
- Life insurance and income protection — do you have adequate cover for your dependants?
- Critical illness cover — especially important if you're the main earner.
- Set renewal date reminders to compare prices 4 weeks before each renewal.
Goals Review
Pull out last year's financial goals and assess honestly:
- Did you hit your savings target? If yes, celebrate and set a higher one. If no, why not — and what needs to change?
- Are your goals still relevant? Life changes (new job, baby, house move) might shift priorities.
- Set 2-3 specific goals for the next 12 months with clear numbers and deadlines.
- Break annual goals into monthly actions. £6,000/year is £500/month — is that achievable with your current income and expenses?
FAQ
When should I do my annual review?
Early April (start of the new tax year) is ideal — you can act on any ISA or pension decisions before the year gets going. But any time is fine. The important thing is that you do it consistently, once a year.
Should I use a financial adviser?
For most people with straightforward finances, a self-directed annual review is sufficient. If your situation is complex (large pension, inheritance, business ownership, or approaching retirement), a one-off financial adviser session (£150-£300) can be excellent value.
What tools do I need?
A spreadsheet (Google Sheets or Excel), your bank and savings account login details, your latest pension statement, and this checklist. Nothing fancy required.
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