Financial wellbeing challenge: a handy checklist for your annual review

A regular financial review is crucial to ensure you’re staying on track with your goals and making sound decisions for your future. Conducting an annual review not only helps you evaluate your current financial situation but also empowers you to make adjustments that will enhance your financial wellbeing. By using this comprehensive checklist, you’ll gain clarity on your progress, identify areas for improvement, and create a solid plan for the year ahead, all while improving your overall financial health and security.

Financial wellbeing and your annual review 

Financial wellbeing comes from the confidence that you can handle whatever the future brings. This sense of security reduces stress and allows you to make decisions with clarity, both short and long term. When you’re financially stable, you can focus on what matters most—personal growth, relationships, and enjoying life—without constant worry.

An annual financial review is essential to assess your situation, set new goals, and adjust strategies. Regular reviews keep you on track, highlight areas for improvement, and ensure your plan aligns with your long-term objectives.

Not sure what to include in your review? We’ve created a comprehensive checklist to help you stay on top of everything, giving you peace of mind for the year ahead. 

An essential checklist for your annual review

These are the 10 key areas to consider during your annual financial review.

1. Income and expenses

Financial well-being begins with a clear and detailed understanding of your income and expenses. Reviewing these regularly ensures your spending aligns with your goals and helps you identify areas to save or adjust. Tracking all income sources and categorising your expenses will help you to uncover opportunities to cut unnecessary costs, prepare for irregular expenses, and boost your savings or investments.

Questions to consider in your annual review:

• Has your income changed this year (e.g., raises, bonuses, or new income streams)?
• Are there expenses you can reduce or eliminate?
• Are you consistently spending less than you earn?
• Have you any upcoming big purchases you haven’t accounted for?
• Are there ways to increase your income or improve cash flow?

2. Debt and loans

Debt can easily derail your financial planning, so an annual review of your debts is crucial to ensure you’re on track with repayments. It will also help you to identify opportunities to reduce interest costs or pay off balances faster which will positively impact your long-term financial plan.

Questions to consider in your annual review:

• Have your total debts increased or decreased this year?
• Are you paying more than the minimum on high-interest debts?
• Can you consolidate or refinance loans to lower interest rates?
• Are there debts that can be paid off entirely to free up cash flow?
• Do you have a clear repayment plan for all outstanding loans?

3. Emergency Fund

An emergency fund is essential to provide financial security during unexpected events, such as job loss or accident. Reviewing it annually ensures it’s adequately funded and accessible when needed.

Questions to consider in your annual review:

• Do you have 3–6 months’ worth of essential expenses saved in your emergency fund?
• Have you needed to dip into your emergency fund, and have you replenished it?
• Is your emergency fund easily accessible in a high-interest savings account?
• Are you consistently contributing to your fund to keep it growing?
• Do you need to adjust the target amount based on changes in your expenses or lifestyle?

4. Savings and investments

Regularly reviewing your savings and investments ensures they align with your goals and risk tolerance. It’s an opportunity to evaluate your progress, adjust contributions, and maximise returns, keeping you on track for both short-term needs and long-term growth.

Questions to consider in your annual review:

• Have you met your savings goals for this year?
• Are your investment choices aligned with your risk tolerance and goals?
• Have you reviewed your portfolio for performance and diversification?
• Are you taking advantage of tax-efficient savings options, such as retirement accounts?

5. Life insurance

Life insurance is important because it provides financial security and peace of mind to your loved ones in the event of your passing. It helps cover essential expenses like mortgage payments, daily living costs, or education, ensuring your family’s stability during a difficult time. Additionally, it can serve as a long-term investment or a way to leave a legacy for future generations.

An annual review ensures your policies still meet your needs and provide sufficient coverage for your current circumstances.

Questions to consider in your annual review:

• Has your family situation changed this year (e.g., marriage, children, or dependents) requiring policies to be updated?
• Does your current coverage adequately protect your loved ones from financial hardship?
• Have your income or financial obligations (e.g., mortgage, debts, or future expenses) increased, requiring an adjustment to your policy?
• Are there new financial goals or legacy plans that your life insurance should support?
• Would critical illness cover be a useful addition to life insurance?

6. Health insurance

Health is wealth. Protect yours and that of your family with the most comprehensive coverage that you can afford and ensure that it is fit for purpose in your annual review.

Questions to consider in your annual review:

• Have you or your family experienced any major health changes or diagnoses this year?
• Does your current plan cover the healthcare providers and treatments you expect to use?
• Are your premiums, deductibles, and out-of-pocket costs still affordable based on your budget?
• Are there new benefits or supplemental coverage options available that could enhance your plan?

7. Retirement planning

If you want a retirement which enables you to maintain your lifestyle and financial independence in later years, you need to plan ahead. Reviewing your retirement savings annually helps you track progress and make adjustments as needed to stay on course.

Questions to consider in your annual review:

• Are you contributing enough to your retirement accounts to meet your future goals?
• Have you reviewed your pension plans or employer-provided retirement benefits?
• Is your retirement portfolio balanced and aligned with your time horizon and risk tolerance?
• Are you taking full advantage of tax benefits for retirement savings?
• Have your retirement goals or timeline changed, requiring updates to your plan?

8. Tax planning

Tax planning is important, particularly for expatriates who often have cross-border considerations that complicate the situation. You should make sure you’re taking advantage of available deductions, credits, and strategies to minimise your tax burden. An annual review helps you identify opportunities to save.

Questions to consider in your annual review:

• Have you reviewed your tax deductions and credits for potential savings?
• Are you maximising contributions to tax-advantaged accounts like retirement or health savings accounts?
• Have there been any life changes (e.g., marriage, dependents, property purchases) affecting your tax situation?
• Are you keeping track of deductible expenses for business or work-related costs?
• Do you need to adjust your tax withholding or estimated payments for the year ahead?

9. Estate Planning

Estate planning ensures your assets are distributed according to your wishes and provides financial security for your loved ones. Regularly reviewing your plans helps you stay prepared for the future.

Questions to consider in your annual review:

• Do you have an up-to-date will, and does it reflect your current wishes?
• Have you designated beneficiaries for all relevant accounts and policies?
• Do you have a power of attorney and healthcare directive in place?
• Have you reviewed your estate plan for changes in laws or personal circumstances?
• Is your plan structured to minimise taxes and legal complications for your heirs?

10. Getting professional help

Seeking professional help is essential because financial planning is complex, and even small mistakes can have a significant long-term impact.

Our professional financial advisers can provide expert insights, help you navigate changing regulations, and ensure your strategies align with your goals. They can also identify opportunities you might overlook and offer personalised solutions to optimise your financial wellbeing.

To gain peace of mind and be sure that you have a rock-solid financial plan fit for the year ahead, make an appointment for an annual review with one of our team across Asia.