Your spring 2026 financial checklist

Published in Business Eye in Feburary/March edition 2026 

Now that we’re through the worst of the winter weather, the lead up to Spring is an ideal time to give your finances a refresh and to set a clear plan for 2026.

Escalating tensions in the Middle East have provided a timely reminder that markets can shift quickly. However, history shows that only conflicts with a significant economic impact tend to leave a lasting effect. From an economic standpoint, inflation has eased, interest rates appear past their peak, and market returns have been supported by solid corporate earnings. Despite what can feel like never-ending noise, staying focused and following a clear plan is what matters most.

Outlined below are five key actions for consideration:

1. With interest rates declining, now is the time to review your cash savings

Higher interest rates have made holding cash more rewarding than many were used to, but the landscape is changing. As the Bank of England cuts rates, with more likely ahead, it’s worth reviewing whether cash balances are still aligned with your goals. Too little cash can raise concern, but too much sitting on the sidelines for long periods may limit long-term growth. A review can help ensure your emergency fund, short-term needs and longer-term investments are clearly separated and working efficiently.

2. Understand the maths behind your retirement plans

While headline inflation has eased, the cost of living remains a challenge for many households. It’s important that spending plans, savings targets, and retirement income projections still reflect reality. Even small changes in long-term inflation assumptions can have a meaningful impact on future outcomes, particularly for those approaching or already in retirement.

This is where cash flow modelling can be particularly helpful. By mapping out expected income, spending, savings and investments over time, cash flow modelling allows us to stress-test financial plans against different inflation scenarios.

Rather than relying on averages or assumptions, it helps show how rising costs may affect your lifestyle, retirement income, or long-term goals, and whether adjustments are needed now. Small changes identified early can make a significant difference to long-term confidence and outcomes.

3. Use your tax allowances

As the end of the tax year approaches, it’s worth reviewing how effectively all available tax allowances are being used. Many of these are lost if they’re not used in time, which can mean paying more tax than necessary in future years. This includes ISA allowances, pension contributions and the ability to use unused pension allowances from previous years through carry forward. A review can help identify whether additional contributions are possible or appropriate, particularly for higher earners or those with variable income.

It’s also important to consider investment-related allowances, such as the capital gains tax (CGT) allowance and the dividend allowance. With both having reduced in recent years, managing gains and dividend income more carefully has become increasingly important.

Good tax planning is rarely about doing something complex, it’s about being organised, forward-looking, and making full use of what’s already available.

4. Review your Inheritance Tax (IHT) situation

Inheritance Tax receipts for HMRC continue to rise year on year. With nil-rate bands frozen, pensions falling back into estates from April 2027 and asset values rising, more families are now affected by IHT. IHT planning is often left until much later in life, but early, gradual planning can be far more effective. A review can help assess whether your estate is structured efficiently, whether allowances and exemptions are being used appropriately, and how assets might pass to the next generation. Importantly, IHT planning isn’t just about reducing tax. It’s about clarity, control, and ensuring your wishes are carried out as intended.

Addressing this sooner rather than later allows more options, more flexibility, and greater peace of mind.

5. The value of a written financial plan

These actions taken together highlight why having a clear, written financial plan is so important. Markets, tax rules and personal circumstances all change over time, but a written plan provides structure, clarity, and direction amid that change.

Rather than reacting to headlines or making decisions in isolation, a financial plan brings everything together, cash flow, investments, tax planning, protection, and long-term goals, into one joined-up picture. A plan turns intentions into actions, and uncertainty into informed choices.

Most importantly, a written plan allows progress to be measured and adjusted over time, ensuring your finances continue to support the life you want to live, both now and in the future.

To turn these actions into a structured financial plan tailored to your goals, contact us today at www.davyuk.co.uk/get-in-touch.