As January comes to a close, many people breathe a quiet sigh of relief after getting through the festive season and the New Year reset. But while the calendar year may still feel fresh, the end of the tax year is fast approaching.
For those with retirement in sight, this window is especially important. The decisions you make between now and 5th April can have a lasting impact on your long-term financial security, tax efficiency, and peace of mind.
Valuable Allowances Go Unused Every Year
Each tax year, individuals are given generous allowances to help them save and invest tax efficiently. Yet many people miss out simply because life gets busy or the rules feel complex.
Common issues we see include pensions not being topped up despite available allowances, ISAs left underused, and investments sitting in taxable accounts when they could be sheltered. For those approaching retirement, these missed opportunities can quietly add up.
Once the tax year ends, most allowances are lost forever. You cannot carry them forward unless specific rules apply. That makes the next few weeks an opportunity worth paying attention to.
Small Missed Steps Can Affect Retirement Comfort
If retirement is on the horizon, every decision matters more. Failing to maximise pension contributions may mean less income later. Not using ISA allowances could result in unnecessary tax on growth and income. Leaving investments unreviewed may expose you to more risk than you intended.
The challenge is not just about money. It is about confidence. Many people tell us they worry whether they have done enough, whether their money is working as hard as it could, or whether they are leaving future decisions too late.
The good news is that even small, thoughtful actions before the tax year ends can make a meaningful difference.
Simple Actions to Take Before 5th April
Here are some practical steps to consider now, while there is still time to act.
Review your pension contributions
Check how much you have contributed this tax year. You may be able to top up and benefit from tax relief, even if you are no longer working. If you have unused annual allowance from previous years, carry forward rules may allow you to contribute more.
Use your ISA allowance
You can invest up to the annual ISA limit each tax year. Any growth and income inside an ISA is free from income tax and capital gains tax. If you have cash sitting in savings earning little interest, this could be an opportunity to put it to better use.
Check your investment tax position
If you hold investments outside ISAs or pensions, you may be able to use capital gains or dividend allowances before the tax year ends. A review now can help reduce unnecessary tax.
Revisit your retirement plans
Are your current savings and investments aligned with when you want to retire and how you want to live? A tax year end review is a good time to sense-check your progress and make adjustments if needed.
Consider the wider picture
Tax planning does not sit in isolation. Protection, estate planning, and cash reserves all play a role in long-term financial wellbeing. Ensuring everything works together is key.
A Reminder
Tax planning does not need to feel rushed or overwhelming. It is about making informed choices at the right time, with a clear understanding of your goals.
If you are unsure where to start, or want reassurance that you are making the most of the allowances available to you, professional advice can help bring clarity and confidence.
The end of the tax year is approaching. A short conversation now could make a meaningful difference to your retirement and the years beyond.
If you would like support reviewing your pensions, investments, or wider financial plan before 5th April, this is the ideal time to get organised.
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At Willow Tree Financial Services, we offer personalised advice on Financial Planning, Mortgages, Investments, Pensions, Personal & Business Protection, and Wills, Trusts & Estate Planning, all tailored to your individual goals and circumstances.
Call us on 01323 436680, get in touch here, or book an appointment here to get started.
We’re based in Polegate, East Sussex, and support clients across the South East and beyond.
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Willow Tree Financial Services is a trading style of Rachael Panteney who is an appointed representative of Quilter Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The value of investments and pensions, and any income they produce, can fall as well as rise. You may get back less than you invested.
The Financial Conduct Authority does not regulate wills, trusts, estate planning, and lasting power of attorney. Will writing is not part of the Quilter Financial Planning offering and is offered in our own right. Quilter Financial Planning accept no responsibility for this aspect of our business.
