Understanding how often a financial plan should be reviewed is a bit like planning a road trip.

You’ve got your destination in sight (your financial goals), you’ve planned out your route (your financial plan), but to ensure you stay on track, you need to make regular pit stops to check your progress and adjust your course if necessary.

A good financial plan is essential to make sure you’re on the way to your long-term goals. But how often should a financial plan be reviewed?


Plotting the course: the importance of regular financial reviews

Your financial plan is a dynamic, evolving roadmap to your financial goals.

It’s not something you set and forget.

On the contrary, it needs to adapt as your personal circumstances, financial landscape, and goals change.

Regular reviews ensure your financial plan is keeping up with you, helping you navigate through the ebbs and flows of life.

Missing these check-ins is like driving with an outdated map. You might still reach your destination, but it may take longer and be more stressful than necessary.


Finding your pit stop: how often should a financial plan be reviewed?

But just how often should a financial plan be reviewed?

As a rule of thumb, an annual check-in is a good starting point. It provides an opportunity to review the previous year’s financial progress, reassess your goals and make necessary adjustments.

However, remember that financial planning isn’t one-size-fits-all. The frequency of reviews can vary depending on personal circumstances. If you’re going through significant life changes, you might need to review your financial plan more often.


Landmarks on your financial journey: major life events that warrant a review

There are several key life events that can significantly affect your financial situation and therefore should trigger a review.

Life is unpredictable, and the road to financial security can be bumpy. These checkpoints allow you to reassess your financial plan, making sure it’s aligned with your changing life and goals.

Career changes

Career changes often come with significant shifts in income and financial responsibilities.

Landing a promotion with a generous raise or taking a leap of faith to start your own business alters your financial landscape. With increased income, you may find new opportunities to invest, save, or reduce debts faster.

Conversely, starting a new business might involve financial risks and uncertainties that need to be factored into your plan.

Each career shift necessitates a fresh look at your financial plan. This could involve adjusting your budget, re-evaluating your investment strategies, and re-thinking your retirement planning.

Regular reviews ensure your financial plan aligns with your career trajectory and provides a roadmap for navigating these changes.

Family changes

Major life events like marriage, childbirth, or a child starting university significantly alter your financial picture.

A new addition to the family might require you to reassess your insurance coverage or set up a new college savings plan.

Marriage might involve merging finances, updating wills, or planning for a shared financial future.

When a child starts university, it often comes with significant expenses that need to be factored into your budget.

On the other hand, when kids move out or start their careers, you may find yourself with more disposable income that could be redirected towards your retirement savings.

Regular reviews allow you to adapt your financial plan to your family’s evolving needs and goals, ensuring you’re well-prepared for these life transitions.


As you approach retirement, your financial focus typically shifts from accumulating wealth to generating a stable retirement income.

This transition demands careful planning and adjustments to your financial strategy.

You might need to rebalance your investment portfolio, focusing more on income-generating assets and less on high-risk investments.

It’s also crucial to factor in healthcare costs, potential long-term care needs, and estate planning into your retirement strategy.

Regular reviews leading up to and throughout retirement ensure your financial plan is equipped to support your desired lifestyle and provide for your needs in this new phase of life.


Health is often a wildcard in financial planning.

A significant change in health, such as a serious illness or injury, can bring unexpected expenses that could derail your financial goals.

It could affect your ability to earn income, require costly medical care, or necessitate changes in your living situation.

Adjustments in your insurance coverage, savings plans, or emergency fund might be needed to safeguard your financial stability. Regular reviews allow you to adapt your financial plan to these changes, ensuring you have the necessary provisions in place to navigate health uncertainties without jeopardising your financial well-being.

Regular reviews also provide an opportunity to consider health-related estate planning needs, such as powers of attorney or advance health care directives, providing peace of mind for you and your loved ones.


Estate planning: securing your legacy

Regular reviews of your financial plan also provide an opportunity to consider your estate planning needs.

Are your will and beneficiaries up-to-date?

Are your assets structured in a way that minimises potential estate taxes?

Do you have a plan for your business in case something happens to you?

Regular check-ins help ensure your estate planning aligns with your current wishes and legal requirements.


Your trusted co-pilot: the role of a professional financial planner

While it’s possible to navigate your financial journey alone, having an experienced co-pilot can make the journey less stressful and more productive.

That’s where our financial planners in Perth come into play. We offer the expertise to help you maintain and update your financial plan, taking into account the ever-changing landscape of your life and the financial world.

Our team is skilled in understanding complex financial scenarios and providing tailored advice to meet your evolving financial goals. We’re here to take the burden off your shoulders and guide you through your financial journey, one review at a time.


Final stop: financial peace of mind

In the journey of life, a well-crafted and regularly reviewed financial plan can offer the reassurance of knowing you’re on track towards your financial goals.

It gives you the confidence to face financial decisions and transitions head-on. It’s not just about the destination, but also the peace of mind throughout the journey.

Take the first step towards financial peace of mind today. Schedule a consultation with the experienced financial planners at GSK Insurance.

We’re here to guide you at every turn, helping ensure your financial plan serves your evolving needs and goals.

July 26, 2023

By Graham Knight

Founder and Managing Director of GSK Insurance (established in 1981). Graham draws upon more than 50 years’ experience in the insurance industry, working in both insurance and broking across various private, public and government sectors in Australia.

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