It feels as if 2025 has gone by in a flash. As the end of the year fast approaches, it’s a good time to take stock of your finances.

Money worries can often keep you awake at night. But having a clear understanding of your finances can have the opposite effect, helping you feel confident and in control.

Essentially, financial wellbeing is about feeling secure and in control. In turn, this can have a positive effect on your overall mental and physical health.

So, having a clear view of your finances can help you get your wealth in order and give you some peace of mind in the process.

Here are four simple ways you can give your finances a self-audit at the end of the year.

1. Review your spending patterns

Tracking your income against your outgoings over the past year can highlight any discrepancies. You may have income from a number of sources, such as your pension, investments, and possibly even rental properties.

Assessing whether these income streams still fit your needs can help you make any necessary adjustments. For example, as the cost of living continues to rise, you may find you need to withdraw more to cover the same expenses, unless your investments are outpacing inflation.

Your spending patterns probably vary from year to year. Increased travel, for example, can significantly raise your outgoings, but this may not happen every year.

Essentially, you need to feel comfortable that what you’ve spent aligns with your annual budget and income.

2. Reflect back, plan ahead

While some of your financial goals may be consistent year in, year out, there may be others which come and go. The end of the year is the perfect time to assess how many of your goals you achieved and how prepared you were financially.

Similarly, now is a good time to set any new goals for the upcoming year. These could include a big holiday, moving house, gifting to family, home improvement projects, or buying a new car.

You may need to adjust your financial plan to accommodate these. We can discuss this at your regular review, or we’re happy to speak with you at any time if you’d like to make changes beforehand.

3. Check that all your important documents are up to date

This is a key part of your annual housekeeping. Some of your documents may still be in traditional paper format, while others could be stored online in password-protected portals.

Below, we’ve listed some of the more common types of documentation, and it’s wise to prepare your own checklist too.

Your will

Make sure this still accurately reflects your wishes and that any major life changes have been taken into account, such as marriage, divorce, new grandchildren, and property moves.

It’s also a good idea to review your executors and ensure they’re still suitable and willing to carry out their role. Plus, if you have a letter of wishes, double-check that this still accurately supports your will.

Lasting Power of Attorney

A Lasting Power of Attorney (LPA) is a legal document which allows you to appoint “attorneys” to make decisions on your behalf if you aren’t able to. Your attorneys don’t need any legal training, but you need to be confident they have the capacity to make the right decisions for you.

Your attorneys can be in place for your health and welfare, property and financial affairs, or both.

As part of your review, check if your appointed attorneys are still appropriate and willing to act on your behalf. Circumstances may change – for example, if one of your attorneys predeceases you or moves abroad – so it’s always smart to revisit your plans and assess whether they’re still fit for purpose.

Pension, bank account, and savings statements

Check your pension statements for your current valuations, drawdown statements (if relevant), and that you’re still happy with your nominated beneficiaries.

Your interest rates may have changed throughout the year, so it’s worth keeping an eye on your bank account and savings statements to establish if your money could work harder elsewhere.

4. Make sure you have a suitable emergency fund

Although cash savings aren’t always the hardest working, they can come into their own at times, particularly as they’re often far easier to access than your invested wealth.

Keeping a handy cash reserve for unexpected expenses can often be a weight off your mind, especially during winter when boilers and cars can break down.

As a general rule of thumb, keeping three to six months’ worth of living expenses is a good amount for your emergency fund. Conducting a quick assessment will show you how much you’ve spent and whether this fund needs topping up.

Please visit our IP Cash Hub if you’d like to find out more about cash savings.

Get in touch

We’ll always offer you an annual review to make sure your financial plan continues to reflect your circumstances and goals. If you’d like to talk to us at any other point, however, we’re always happy to help. Please email hello@intelligentpensions.com or call 0800 077 8807.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The Financial Conduct Authority does not regulate estate planning, Lasting Powers of Attorney, or will writing.