As 2026 begins, many people are reassessing their finances, motivated by high taxes, longer working lives, and the desire to achieve long-term financial security. A recent survey by Scottish Widows found that 20 million people are planning to take major financial decisions this year, including starting new investments, increasing savings (26% of respondents), and boosting retirement contributions (15%).
Here’s how experts suggest turning 2026 into a year of financial growth:
1. Take the Investment Step
Simply saving money in a bank account may limit growth potential. Historical data from the Barclays Equity Gilt Study shows that over the long term, stocks have consistently outperformed cash. U.S. equities returned an average of 6.8% annually over the past 50 years, while UK stocks returned 5.4%, compared to just 0.7% for cash.
2. Prioritize Retirement Savings
Even if you are enrolled in a workplace pension, it may not be enough. Individuals, especially self-employed professionals, can open personal pension plans to supplement existing retirement contributions. Taking full advantage of employer contributions before adding personal contributions can maximize growth while benefiting from tax advantages.
3. Invest for Your Children
Parents often prefer to save rather than invest for their children, potentially missing opportunities to fund education, travel, or a first home. Choosing an investment portfolio aligned with your risk tolerance—whether managed or self-directed—can grow wealth more effectively over time.
4. Seek Professional Advice
Managing finances—from daily budgeting to investments and taxes—can be complex. Financial advisors come at a cost, but their expertise can help maximize investment returns, optimize tax planning, and reduce financial stress.
5. Consider Higher-Risk Investments
Experienced investors often explore high-risk opportunities, such as venture capital trusts (VCTs), which can provide upfront income tax relief. Wealth Club data shows VCTs may see short-term losses (average 2.4% over three years) but offer higher long-term returns—14% over five years and 47% over ten years with reinvested dividends. Consulting a financial advisor is recommended before pursuing these options.
6. Prepare a Will
While not a wealth-building strategy per se, drafting a will ensures your assets are preserved for your heirs, providing financial security and clarity for the next generation.
