Before the Year Ends: Key Financial Steps for a Confident 2026 December 16, 2025
As 2025 draws to a close, many of us naturally begin to reflect on the year thus far. Our milestones, the challenges we faced, and whether we achieved our set goals. Apart from that, this period is also a perfect time to take stock of our financial health.
While taking a financial inventory may sound daunting, it does not have to be complicated. Think of it as a simple checklist or review that helps set the tone for a more confident 2026.
1. Review Your Policies & Protection Needs
With the upcoming changes to Integrated Shield Plan (IP) riders, which were announced on 27 Nov 25, you may face higher out-of-pocket medical expenses in the future1. This is because new riders will no longer be able to cover the minimum deductible (the initial amount you must pay before insurance kicks in).
While the cost of new riders is expected to decrease, these changes make it a good time to review your policies and make sure your needs are adequately met. Healthcare is, unfortunately, one of the largest and most unpredictable financial commitments we face; thus, it helps to start setting aside some funds for emergencies.
2. Strengthen Your Savings
Have you taken that first step in opening a higher-interest-bearing account, or are you still keeping most of your funds in a basic savings account? Many banks today offer significantly higher interest rates when you meet certain criteria, like salary crediting into specific account types. This is a simple and low-effort way to let your savings grow a little faster.
Beyond that, you may also consider short-term instruments like T-bills or fixed deposits to further strengthen your savings. However, as we are currently in a period of declining interest rates, relying solely on these options may no longer be sufficient.
This is a good time to review your holdings and consider diversifying into other alternatives that can offer you more.
3. Do Not Invest On Impulse
Gold and equities continue to be a popular choice among investors, but not everyone is comfortable with volatility and the risks that come with it.
Nevertheless, they remain valuable instruments when managed effectively, and there are strategies you can use to help mitigate volatility and make your journey smoother.
One approach you can consider is Dollar-Cost Averaging (DCA), where you invest a fixed amount at regular intervals, regardless of the market price of an asset. Over time, this helps to cushion the impact of price volatility and, as the name suggests, averages out your entry cost.
You can also consider building a diversified and balanced portfolio. While gold is trending at the moment, it is rarely wise to rely too heavily on a single asset. It is much safer to spread your investments rather than putting them all in one basket. Doing so makes your portfolio more resilient to market turbulence.
Lastly, always keep yourself anchored by establishing realistic, long-term goals. Consistent and disciplined effort often matters more than timing the market. Avoid chasing trends or investing on impulse. Sustainable growth is cultivated over time; Rome wasn’t built in a day.
4. Attaining Your Retirement Goals
A comfortable retirement is something we all hope for, whether you are only beginning to plan for it or you are already approaching that milestone. The year-end is always a perfect moment to pause, reflect, and evaluate your retirement preparedness.
You can start by estimating how much monthly income you will realistically need in retirement. From there, assess whether your current and future income streams can sustain that lifestyle. Income streams can come from many avenues, but the most common and reliable ones will typically include:
- CPF Lifelong Income For the Elderly (CPF LIFE) payouts
- Dividends from your Investments
- Retirement / Savings Income
Ideally, these income streams would be your perpetual sources, a stable and reliable form of income you have cultivated over the years. Always remember that retirement is not only about how much you save but also about ensuring your savings are structured to last for your entire lifetime. With factors such as rising inflation and healthcare costs, failing to make your income streams resilient is tantamount to risking financial insecurity in retirement.
Start Today!
Planning and organising your finances is an ongoing process, not a one-time task. A simple year-end review can give you the clarity and renewed motivation you need to step into 2026 with confidence.
Whether it’s reviewing your policy coverage, adjusting your savings strategies, or strengthening your investment approach, any small step you take will help you move closer to your dream retirement. You don’t need to tackle everything at once; you just need to start.
If you’re unsure where to begin or would like a second opinion on your current plans, we’re always happy to help. Best wishes, and may 2026 bring you clarity, progress, and confidence in your financial journey.
Contributor:
Claudia Tan
Financial Services Director
Phillip Securities Pte Ltd (A member of PhillipCapital)
https://bit.ly/TTPclaudia
References:
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About the author
Claudia Tan
Financial Services Director
Claudia is an award-winning Financial Services Director with over 20 years of practical experience in the Financial Advisory industry. She is currently managing a team and servicing a group of clients by providing solutions, like Stock and Unit Trusts investment. As a veteran in the financial industry, Claudia has also published multiple wealth advisory articles.
Equipped with qualifications from the Society of Trust and Estate Practitioners, Claudia is constantly helping her clients to look beyond legacy planning. Her knowledge and experience have helped many understand the importance of wealth management and the need for financial planning at every stage of life, providing a sense of financial security that lasts even beyond their current generation.
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