Introduction
Angus Kirk, an independent Financial Planner at Transform FP, highlights why regular financial reviews are more than a box-ticking exercise. He offers an opportunity to adapt your plan to changing goals and policy shifts — and avoid the behavioural traps that can derail long-term progress.
Financial Reviews: A Check-Up, Not a Shake-Up
Financial reviews are so important for staying on track. They ensure your plan reflects your goals, that you’re progressing in the right direction, and that your wealth is working as hard as it should be. But reviewing your plan doesn’t always mean rewriting it. In fact, updating your financial strategy too frequently — particularly in reaction to market noise or social influence — can do more harm than good. Long-term success often comes from consistency and composure, not constant change. That said, there are times when adapting your plan is not only appropriate — it’s essential. Further down this article, I share two scenarios where making changes during a financial review can be a wise and proactive move.
Don’t Let Short-Term Noise Drive Long-Term Decisions
Before we explore when you should consider adjusting your plan, it’s worth pausing to consider when you shouldn’t. It’s perfectly natural to feel uneasy during periods of market volatility or uncertainty. A negative headline, a drop in your investment portfolio, or a conversation with a friend who’s “onto the next big thing” can all prompt a desire to change something. But emotional decisions and behavioural biases — such as loss aversion, recency bias, or herd mentality — can damage the long-term efficacy of your plan.
Let’s take investing as an example…
You might hear that markets have dipped sharply, and be tempted to sell to avoid further losses. But doing so means crystallising those losses — turning paper reductions into actual financial setbacks. Historically, markets have rebounded over time, rewarding those who stay the course. Missing even a handful of the best-performing days can significantly reduce overall returns. Or perhaps a friend has invested in a trending asset and shares their success story. Suddenly, your own portfolio feels underwhelming. But jumping on an investment trend that doesn’t align with your goals or risk appetite can expose you to unnecessary volatility or liquidity issues. This is why financial plans are built around you — your values, goals, and tolerance for risk — not short-term movements or other people’s choices.
“Reviewing your plan is important. But changing it should only happen when your life or the rules around you change — not because of fleeting news or peer pressure.”
— Shadi Kirk, Independent Financial Planner, Transform FP
So, When Should You Update Your Plan?
Let’s explore two of the most common — and appropriate — reasons to update your financial plan during a review:
1. Your Goals or Personal Circumstances Have Changed
Your financial plan is a living document — designed to evolve with you. And life, as we know, rarely stays the same for long. Perhaps you’ve had a pay rise, and want to increase your savings rate. Or you’ve started thinking more seriously about retiring earlier than expected. Maybe you’ve welcomed a new addition to the family, are planning a move, or simply want to provide more meaningful financial support to your children. Any of these changes — large or small — could warrant a re-examination of your strategy. For example:
- If you’re bringing retirement forward by a few years, we may recommend increasing pension contributions, adjusting your investment approach, or modelling phased retirement income.
- If you’ve become a parent, we might explore life insurance, wills, and setting up Junior ISAs or other vehicles to help secure your child’s future.
If your career or health circumstances shift, your plan might need to accommodate new cashflow, spending, or protection needs. A review is the perfect time to re-centre your plan around what matters now — not what mattered three or five years ago.
“Your plan should always reflect who you are today and what you want tomorrow. Life moves quickly — your strategy should keep pace, without being reactive.”
— Shadi Kirk
2. Government or Legislative Changes Have Altered the Landscape
Financial planning doesn’t exist in a vacuum. Tax thresholds shift. Pension rules evolve. Budgets change the financial terrain — sometimes significantly. When government policy alters the financial framework, your plan may need to adapt in response.
A recent example is the abolition of the Lifetime Allowance (LTA) for pensions. Previously, this tax limit capped how much you could build up in pensions over your lifetime before facing additional tax charges. With the LTA removed in 2024, new planning opportunities have emerged — especially for those with larger pension pots or high earnings. Some individuals may now benefit from increasing pension contributions. Others may want to reassess their expected retirement date, or explore different withdrawal strategies that reflect the new tax landscape. And it’s not just pensions.
Changes to:
- Dividend tax bands
- Capital Gains Tax exemptions
- Income tax thresholds
- Inheritance tax reliefs
…can all affect how your investments and estate should be structured. At your review, we assess which of these changes are relevant to your personal situation. Then we work with you to update your plan accordingly — not just to stay compliant, but to stay ahead.
A Financial Review Is a Time to Pause — Not Panic
Think of your financial review as a pit stop on a long journey. It’s a time to check the map, review your fuel levels, reassess the conditions, and make sure you’re still heading in the right direction. If a detour is needed, we take it with intent — not because of distraction, doubt, or misinformation. We want your plan to be resilient — flexible enough to adapt, but robust enough to weather change.
Conclusion: Stay Informed, Not Reactive
While change for its own sake is rarely helpful, change that’s rooted in your evolving life or shifting policy is often vital. That’s the value of a regular review — it puts you in control. It gives you the space to check whether your plan still reflects your priorities, understand how external events affect your finances, and make decisions from a place of clarity, not emotion. If you want to update your financial plan, get in touch with our experts today.
Important disclaimer: This article is for general information only and does not constitute financial advice. The information is aimed at retail clients only. The value of your investment 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. The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing. We recommend that you speak to a qualified financial planner for advice tailored to your individual circumstances and goals.
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