A survey has identified an “ambition gap” in the UK, with millions of adults admitting they have no financial aspirations for the coming year. Not only can a clear goal mean you’re more likely to achieve your aspirations, but it can also have a positive effect on your wellbeing.

The article in IFA Magazine (13 January 2026) suggests 21% of UK adults haven’t set a financial goal for 2026, and 24% said they had no goals over the next decade.

Whether you’re saving for the trip of a lifetime or investing for your retirement, here are five reasons why defining your goal could provide a positive psychological boost.

1. Goals can help you feel in control

Uncertainty can be stressful, and if you’re unsure where your finances stand, it can spill into other areas of your life. For example, if you’re concerned about how your family would cope if you experienced a financial shock, you might find it more difficult to concentrate at work or simply enjoy your time with loved ones.

Setting a goal won’t automatically improve your financial situation, but it can help you feel in control and remove some of the fear of the unknown.

Being as clear as you can about your goals could reduce financial anxiety. For example, rather than saying “I want to save more”, you might state: “I want to build an emergency fund that will cover six months of essential expenses, which I will do by saving £200 a month.” The latter statement gives you a clear definition of your goal and a plan for how you’ll achieve it, which can improve your confidence.

2. An objective can help you establish consistency

Many financial goals take time to reach, and some might take decades.

Having a clear objective and timescale can help you establish consistency, so small actions accumulate. Imagine setting a retirement goal: you’ll usually be saving for decades for a comfortable retirement once you’re ready to give up work. So, setting a goal early can be incredibly useful and might mean you’re more likely to reach your target.

3. Goals can create an emotional connection

Sometimes long-term goals can feel abstract. After all, you’re not benefitting from the pension contributions you’re making now, and you potentially won’t for several decades.

Clear goals can establish an emotional connection to the future you’re working towards, so you’re less likely to abandon them. When saving for retirement, you might do this by considering what you want your life to look like when you stop working or some key experiences you’re looking forward to when celebrating the milestone.

4. A goal could mean you’re less distracted

No matter what goal you’re working towards, distractions can occur and potentially knock you off course. Having a fixed purpose in mind can help maintain your focus on the long term.

For some investors, this could be useful when tuning out the noise of short-term market movements that feature in the headlines. Rather than reacting to the latest news, a well-defined goal could reinforce the importance of a long-term strategy.

5. You’ll be in a better position to track your progress

Finally, seeing your progress towards a goal can be uplifting and motivating.

Without a clear idea about what you’re striving to achieve, it can be difficult to assess if you’re moving forward. A well-defined goal puts you in a good position to review your progress, celebrate your successes, and make adjustments should you need to.

Contact us to talk about your goals

As part of creating a financial plan that’s tailored to you, we’ll discuss your goals and objectives. Please get in touch to talk about your aspirations and how we might help you achieve them.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals 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.

Once you’ve set out your investment goal and strategy, what comes next? Often, it’s time to test an important investment skill – your patience.

The average investor might benefit from a long-term approach

When you think about the most important skills in investing, you might consider the ability to choose the “right” investments or understanding market movements. Yet, for the average investor, patience could be far more valuable.

Usually, investment strategies require a long-term outlook, so you need to be patient to achieve your goals. While it might be tempting to adjust your portfolio based on the news or market movements, for the average investor, creating a strategy that’s aligned with their goals and risk profile, and then holding assets long-term, could prove more effective.

Historically, markets have delivered returns over long-term time frames and have recovered from downturns. While it’s impossible to guarantee this will happen in the future, it suggests a long-term strategy may be effective.

In contrast, trying to time the market could lead you to miss out on potential returns and taking more risk than is appropriate.

So, being able to practise patience could be a valuable skill for investors.

5 practical steps that could improve your patience

Practising patience might be more difficult than you expect, especially during times of market volatility. Here are some practical steps that could help you stick to your long-term strategy.

1. Follow a goal-based investment strategy

It’s natural that you want to reach your goals as fast as you can. However, investing is typically for the long term, and rushing could be harmful, as you might be more likely to make poor decisions.

Having a clear, goal-based strategy may be valuable if you find you’re impatient to achieve your objective.

2. Schedule regular reviews with your financial planner

It’s easier than ever to see how your investments are performing. With a few taps on your phone, you can see the value of your investments in seconds.

Technology makes tracking performance convenient, but it doesn’t always encourage a patient, long-term mindset. With so much information at your fingertips, it’s tempting to check your investments frequently, and it might lead to an approach that’s focused on short-term gains rather than a patient, long-term outlook.

Instead, schedule regular reviews with your financial planner, such as quarterly or annually, depending on your needs. This provides you with a way to check your progress towards your goals and may reduce your focus on short-term market movements.

3. Diversify your investments

Volatility is part of investing, and there’s always a risk that the value of your investments will fall. During periods of uncertainty, it’s normal for fear to lead you to be impatient – you might consider withdrawing money from your investments because you believe your long-term goals are at risk.

Diversifying your portfolio can’t eliminate investment risk, but it might limit extreme volatility by providing balance. As a result, it could make periods of uncertainty more manageable and mean you’re less likely to act impulsively.

Similarly, choosing investments that align with your risk profile and attitude to risk could help you feel confident in your long-term strategy.

4. Identify what triggers impatience

Identifying when you’re most likely to be impatient could help you become aware of when you might make decisions that don’t align with your investment strategy.

You may be more likely to act rashly when your emotions are heightened, such as when markets are experiencing volatility or when work has been stressful. Recognising when you might be impatient could give you a chance to step back.

Setting yourself a 24-hour cooling-off period before making any investment decisions could be useful, as you’ll often find your emotions have subsided.

5. Automate some investment tasks

Automating investment steps could mean things keep ticking along without you having to do anything, so there’s less chance of you being tempted to make changes.

For example, if your strategy includes depositing money into an investment account each month, you might set up a standing order for this to happen automatically.

Contact us

If you’d like our support when investing, or to understand whether investing could form part of your wider financial plan, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

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

The value of your investments (and any income from them) 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.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

In February 2026, ongoing uncertainty around trade tariffs and concerns about the impact of AI adoption on business profits affected the markets. Read on to discover some of the factors that may have affected your investment portfolio.

Markets reached record highs but were affected by AI concerns and trade tariffs

The FTSE 100, an index of the largest companies listed on the London Stock Exchange, was off to a great start in February – it closed at a record high of 10,341 points on 2 February, with a range of sectors performing well, including retailers, banks, airlines, and hospitality.

Similarly, Asian markets reported a welcome uptick on 3 February. Japan’s Nikkei index reached a record high after closing almost 4% higher than its opening level. In addition, India’s Sensex index was up 2.8% after the country struck a trade deal with the US.

However, on 4 February, AI fears affected investors.

Worries that the adoption of AI would harm software and data companies led to a sell-off in European and Asia-Pacific markets. However, the CEO of Nvidia, a leading AI company, Jensen Huang, dismissed the concerns, stating they were “illogical”.

Worries around AI intensified on 11 February when California-based firm Altruist Corp launched an AI service that it said could help advisers create personalised tax strategies. The announcement led to shares dipping for wealth managers, insurance firms, and price comparison sites.

On 12 February, the FTSE 100 reached another record high as it surpassed 10,500 points for the first time. This time it was lifted by shares in Schroders soaring by almost 30% in the first hours of trading after the asset management firm accepted a takeover offer from US investor Nuveen.

On 16 February, the BBC reported that the UK government was weighing up increasing defence spending at a faster pace than expected. The government previously set a target of spending 2.5% of economic output on defence by 2027, rising to 3% by the next parliament. The news led to defence stocks rising, including Babcock (2.5%), Melrose (2.2%), and BAE Systems (1.3%).

US trade tariffs have affected businesses and markets globally throughout 2025 and into 2026. On 20 February, the US Supreme Court ruled against the president’s economic policy of global tariffs, stating that Donald Trump had exceeded his authority by invoking emergency powers to impose them.

Following the announcement, the US Customs and Border Protection agency said it would stop collecting tariffs imposed under the International Emergency Economic Powers Act from Tuesday, 24 February.

This led to market volatility as investors and businesses assessed what the announcement would mean for them.

Further uncertainty followed on 24 February when Trump’s new global tariff was introduced. The new tariff is being applied under the 1974 Trade Act, which allows the president to impose a charge for 150 days without congressional approval. The changing situation places pressure on businesses exporting to the US.

On 28 February, US-Israeli strikes on Iran triggered fresh geopolitical uncertainty, which is likely to affect stock markets in March 2026 and potentially beyond.

UK

Inflation in the UK fell to 3% in the 12 months to January 2026, according to the Office for National Statistics (ONS). Prime Minister Keir Starmer said the fall would “ease the burden on people”.

Despite the inflation dip, the Bank of England chose to hold its base interest rate. However, it’s expected that a rate cut will happen in the coming months as inflation stabilises to support the economy.

Official GDP data suggests the UK economy grew by 0.1% in December 2025, and real annual GDP per capita grew following a period of no growth in the previous year. Chancellor Rachel Reeves commented that she expects stronger economic growth in 2026.

The UK posted its largest budget surplus since monthly records began in 1993. According to the ONS, the January surplus was £30.4 billion, compared to an expected £24 billion, which provided a boost to the chancellor ahead of the Spring Statement set to be delivered in March.

Readings from various S&P Global Purchasing Managers’ Indices (PMI) – which measure economic health based on surveys of purchasing managers – were positive.

• The manufacturing PMI hit a 17-month high with a reading of 51.8, surpassing the 50 mark that indicates growth. The PMI reported high sales volumes to Europe, the US, China, and several emerging markets.
• The construction sector posted a PMI reading of 46.4 in January. While the figure indicates contraction, it is an improvement on previous months and could signal that the worst of the downturn is over.
• The service sector PMI reading was 53.7. This is the fastest pace of growth recorded in almost two years.

Overall, the PMI data could support the chancellor’s assertions that economic growth will improve in 2026.

Europe

Figures from Eurostat show inflation across the eurozone fell to 1.7% in the 12 months to January 2026, taking it below the European Central Bank’s (ECB) 2% target.

The ECB opted to hold interest rates as inflation stabilised.

Economic data suggest the eurozone continues to face challenges. S&P Global’s manufacturing PMI recorded a reading of 49.5 in January, just below the 50 mark that indicates growth.

In addition, figures released by Eurostat show industrial production was down by 1.4% in December when compared to the previous month in the eurozone, and by 0.8% across the EU. The largest monthly decreases were recorded in Slovakia (-4.9%), Germany (-2.9%), and Spain (-2.6%).

However, the Sentix index, which measures investor morale, increased for the third consecutive month in the eurozone, which could suggest investors feel optimistic.

US

Inflation in the US fell by more than expected to 2.4% in the 12 months to January 2026. The news could mean the Federal Reserve is more likely to consider a cut to its interest rates in the coming months.

The Bureau of Economic Analysis reported economic growth of around 0.35% in the final three months of 2025, and an annualised rate of 1.4%, below the estimated 2.5%.

Figures from the Bureau of Labour Statistics indicate that US employers are feeling confident. In January, businesses hired 130,000 more workers, which was stronger than expected after the White House warned the number could fall because of its deportation program.

While positive, the Guardian noted that these figures may be revised downwards. Indeed, in 2025, the total new jobs for the year were revised significantly downwards to 181,000 from the initially reported 584,000.

Asia

Japan just avoided a technical recession – defined as two consecutive quarters of economic contraction. After the economy contracted by 0.7% in the third quarter of 2025, GDP figures showed weak growth of 0.1% in the following quarter. The news led to Japanese investment markets dipping, including the Nikkei 225 index (-0.24%) and the broader Topix index (-0.8%).

While China’s GDP was significantly higher at 4.5% in the final quarter of 2025, it was weaker than in previous years, partly due to trade frictions with the US. However, the country did hit its official 5% annual target.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

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

The value of your investments (and any income from them) 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.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Just over three months after her lengthy Autumn Budget, chancellor Rachel Reeves has addressed the House of Commons and delivered the government’s 2026 Spring Statement.

Ahead of the Statement, Reeves reinforced the government’s commitment to “one fiscal event, one Budget, a year”. So, it will come as a relief to many, including business owners, that the Spring Statement included no additional tax-raising measures. Furthermore, no changes to pensions or Individual Savings Accounts (ISAs) were announced.

Reeves also said that household disposable income is set to grow at twice the rate that was forecast in the Autumn Budget – leaving the average person £1,000 better off each year by the next election.

That being said, previous announcements, including changes to the tax regime, remain in place, and may affect personal finances and business owners in 2026/27 and beyond.

Reeves gave an overview of the Office for Budget Responsibility’s (OBR) economic forecast for the years to come. Notably, the OBR’s forecasts and the Statement as a whole made no mention of the potential economic impact of the unfolding situation in the Middle East, which may contribute to increased oil and gas prices that could prove inflationary and cause stock market volatility.

The chancellor confirmed the changes announced in the 2024 and 2025 Budgets

In an effort to reduce speculation and prevent a chop-and-change approach, the chancellor confirmed that key tax measures, announced in the Autumn Budgets of 2024 and 2025, will remain in place.

Among the key changes that have been reconfirmed and will affect personal finances are:

• Inheritance Tax (IHT) will be levied on most unused pension benefits from April 2027. It’s estimated that this change will result in an additional 10,500 estates being liable for IHT in 2027/28. This will contribute to a predicted rise in IHT receipts to £15 billion by 2030.
• Tax on income earned from property will rise by two percentage points from April 2027, increasing tax liability for landlords.
• There will also be a two percentage point increase in the basic and higher rates of Dividend Tax from April 2026, which may affect business owners and investors.
• Key tax thresholds, including those for Income Tax and the IHT nil-rate bands, will remain frozen until April 2031.

The lack of any tax-raising measures in the Spring Statement will be welcome news for many people. However, the previously announced changes could mean a review would still be beneficial.

The Office for Budget Responsibility has updated its forecasts for GDP growth, inflation, and house prices

The OBR has updated its real-terms GDP forecast every year between 2026 and 2029 when compared to the estimates it made in the 2025 Autumn Budget. The organisation now expects the economy to grow by:

• 2026 – 1.1% (a decrease of 0.3%)
• 2027 – 1.6% (unchanged)
• 2028 – 1.6% (an increase of 0.1%)
• 2029 – 1.5% (unchanged)

The OBR expects inflation to be at or around the Bank of England’s (BoE) 2% target over the next five years. Inflation easing would improve household spending power, which, in turn, could provide a boost for the economy and businesses. Indeed, real household disposable income is expected to grow by between 0.6% and 0.9% each year until 2030.

The BoE has already cut its base interest rate several times since the current government formed in July 2024, as inflationary pressures eased. If the OBR’s forecast is accurate, the BoE is likely to make additional cuts, which would reduce the cost of borrowing for households and businesses.

The OBR expects unemployment to rise from 4.75% in 2025 to a peak of 5.33% in 2026, driven by weaker demand for labour. After peaking in 2026, unemployment is expected to fall to 4.1% in 2030.

It also forecasts that house prices will rise by between 2.4% and 2.9% each year between 2026 and 2030.

The government reinforced its ongoing commitment to two key fiscal rules

In her speech, the chancellor confirmed the two fiscal rules set out in the Budget:

• Stability rule – Not to borrow money to fund day-to-day public spending by the end of this parliament (2029/30).
• Investment rule – To reduce government debt as a share of national income by 2029/30.

Addressing the stability rule first, although the cost of borrowing has risen during this period of heightened uncertainty, the chancellor vowed that the steps taken in the Statement will restore its headroom.

Turning next to the investment rule, Reeves also stated that this commitment will be met two years early, with net financial debt predicted to be 82.9% of GDP in 2025/26.

4 key Spring Statement measures

1. Boosting defence spending

At a time of growing worldwide tension, the chancellor announced increases to defence spending, aimed at making the UK a “defence industrial superpower”. Defence spending is set to reach 3.5% of GDP by 2035.

Defence innovation will include harnessing AI and drones, creating employment opportunities for engineers in the devolved nations, while a previously announced Defence Growth Board is also being created to support £400 million for defence innovation.

2. Tackling youth unemployment

The chancellor reconfirmed her commitment to getting those in Britain who can work into work. She stated that 1 in 8 young people is currently not in employment, education, or training.

The chancellor confirmed that reforms to the welfare system will produce welfare savings of £4.8 billion between 2026 and the end of the forecast period (2029/30).

3. Increasing property revenue

Previously announced property planning reforms will go ahead.

The reforms are expected to increase real levels of GDP by 0.2%, the equivalent of £6.8 billion for the economy, by 2029/30. Over 10 years, this is expected to increase to 0.4% of GDP (£15 billion). Reeves said this represents the biggest growth forecast for a policy with no fiscal cost.

4. Making government more efficient

The abolition of NHS England was announced back in March 2025 as part of wider efforts to increase NHS efficiency and productivity, and to cut spending. These measures will also include reducing costly agency outsourcing.

More widely, Reeves confirmed the £3.25 billion of investment in a new “transformation fund” that will drive modernisation across the public sector through digital reform and the adoption of AI. It’s hoped that these changes will result in a “leaner” and more efficient public sector.

After announcing a raft of changes in the Autumn Budget, the Spring Statement acts as a fiscal pitstop, upholding the government’s commitment to one significant fiscal event a year.

Please note

All information is from the chancellor’s speech, the gov.uk website, the Spring Statement press release and the Autumn Budget documents published by HM Treasury.

The content of this Spring Statement summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice.

While we believe this interpretation to be correct, it cannot be guaranteed, and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement. 

The Financial Conduct Authority does not regulate tax planning.

The value of your investments (and any income from them) 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.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

On 5 April 2026, the current tax year will end, and the new one will start the following day. Making a note of the deadline in your calendar could help you make the most of tax breaks as part of your financial plan.

Here’s why the start of a new tax year might matter to you.

1. 5 April 2026 may be your last opportunity to use 2025/26 allowances

When a tax year ends, many allowances reset. Consequently, the coming weeks might be your last chance to use some of them.

For example, you can add up to £20,000 into ISAs in 2025/26. ISAs provide a tax-efficient way to save or invest, which might reduce your overall tax liability. You cannot carry forward your unused ISA allowance, so 5 April 2026 might be your last opportunity to use the 2025/26 allowance.

In some cases, you are able to carry forward unused allowances, but they still have a date by which you must use them.

The annual exemption allows you to pass on up to £3,000 without worrying that it may be included in your estate when calculating Inheritance Tax (IHT). So, if your estate could be liable for IHT, it may provide a valuable way to pass on some of your wealth now.

You can carry forward any unused allowance for one tax year. As a result, this may be your last chance to use your 2024/25 allowance if you haven’t already done so.

Arranging a meeting with your financial planner can help you understand how you’ve used allowances and exemptions so far this year. It could also identify other opportunities that may make sense as part of your wider financial plan.

2. You can make a tax-efficient strategy for 2026/27

Planning how you’ll use allowances and exemptions throughout the year, rather than waiting until the deadline approaches, might be useful.

The pension Annual Allowance is the maximum amount you can contribute to your pension during the tax year while still receiving tax relief without incurring an additional charge. It covers contributions made by you, your employer, and any third parties. You can only claim tax relief up to 100% of your annual earnings.

For the 2026/27 tax year, the pension Annual Allowance is £60,000 for most people.

Deciding how much you want to contribute in 2026/27, and making monthly contributions, could be easier to manage than discovering a shortfall at the end of the tax year and needing to contribute an additional lump sum.

It’s also important to note that some allowances and tax rates will change in the new tax year.

For instance, from 6 April 2026, the basic and higher rates of Dividend Tax will both increase by two percentage points, which may affect business owners and investors. Being aware of these changes could influence the financial decisions you make now.

In some cases, you might benefit from looking even further ahead.

The ISA allowance is set to change for under-65s on 6 April 2027. While adults will still have a £20,000 ISA allowance, only £12,000 can be placed in a Cash ISA each tax year, with the remaining £8,000 reserved for investments. You’ll still be able to contribute the full ISA allowance into an investment account if you choose to.

With this in mind, you might change how you use your ISA allowance in 2026/27.

Contact us if you have questions about your tax strategy

It can be difficult to keep up with tax changes and understand what they mean for you. If you have any questions about your tax strategy for the current tax year and beyond, please get in touch. We can help you make the most of allowances and exemptions to improve your tax efficiency.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

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

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate tax planning.