In the fast-paced and ever-changing landscape of personal finance, maintaining a robust financial plan is essential. However, crafting a comprehensive financial plan is only the first step. Equally important, if not more so, is the regular review and adjustment of this plan. The need to periodically revisit and revise your financial strategy cannot be overstated, and here are several compelling reasons why.

Adapting to Life Changes

Life is full of unexpected events and transitions. Whether it’s a new job, marriage, the birth of a child, buying a home, or retirement, significant life events can dramatically impact your financial situation. Regularly reviewing your financial plan ensures that it remains aligned with your current circumstances and future goals. For example, a promotion might increase your disposable income, allowing for higher savings or investment contributions, while the birth of a child might necessitate adjustments in your budget to accommodate new expenses.

Maintaining Tax Efficiency

Tax laws and regulations are subject to change, and these changes can significantly impact your financial plan. For example, new tax rates become effective 1 July 2024 and will provide a cashflow boost for most people. Regular reviews allow you to stay informed about new tax laws, make necessary adjustments to optimise tax efficiency. For instance, determining what actions you can take before 30 June to create tax-effective investment strategies.

Taking timely Opportunities

With tax and superannuation regulation changes, there is usually a limited window of opportunity to act. For example, if you are eligible to access an unused superannuation concessional cap from 2018/19, you only have this financial year to either ‘use it or lose it’. Additionally, changes in superannuation contribution caps from 1 July 2024 can increase the amount you can direct towards tax-free retirement savings. Changes to current regulations should all influence your financial strategy. Staying proactive in this regard can help you minimise your tax liability and maximise your retirement savings.

Responding to Market Conditions

The financial markets are inherently volatile. Economic downturns, inflation, changes in interest rates, and market fluctuations can all affect your investments and overall financial health. By reviewing your financial plan regularly, you can make timely adjustments to your investment portfolio, ensuring it remains diversified and aligned with your long-term objectives. Proactive adjustments can help mitigate risks and capitalise on emerging opportunities.

Reviewing your risk profile

Your risk profile determines how much risk (or volatility) you’re willing to accept. Your attitude to risk will be influenced by your financial situation, family considerations, time horizon and even your personality. This means your attitude to risk can change over time. All investments carry some risk. But if market volatility has caused you to reassess the way you feel about risk, it’s important to consider any necessary changes to your financial plan.

Tracking Progress Towards Goals

Regular reviews allow you to track your progress towards your financial goals. Whether you’re saving for a down payment on a house, planning for retirement, or building an emergency fund, periodic check-ins enable you to measure your progress and make necessary adjustments. If you’re falling short of your targets, a review can help you identify the reasons and implement corrective measures. Conversely, if you’re ahead of schedule, you might decide to reduce the level of investment risk you have; set more ambitious goals; or allocate resources to other priorities.

Ensuring Financial Discipline

A financial plan is only effective if you stick to it. Regular reviews reinforce financial discipline by keeping you accountable. They provide an opportunity to revisit your budget, spending habits, and saving patterns, ensuring that you’re staying on track. This ongoing accountability can help prevent the gradual drift away from your financial goals that can occur over time due to complacency or changing circumstances.

Incorporating New Financial Knowledge

The world of finance is continually evolving, with new products, services, and strategies emerging regularly. Keeping abreast of these developments and integrating them into your financial plan can enhance your financial wellbeing. Regular reviews provide an opportunity to incorporate new financial knowledge and strategies, such as tax-efficient investing, new insurance products, or innovative saving techniques, ensuring your plan remains up-to-date and effective.

Preparing for the Unexpected

Life is unpredictable, and unexpected events such as job loss, illness, or natural disasters can have significant financial implications. Regularly reviewing your financial plan helps ensure you have adequate contingency plans in place. This might include maintaining a sufficient emergency fund, having appropriate insurance coverage, and ensuring that your estate planning documents are up to date. For instance, are you underinsured because things moved on since you commenced a policy? Or are you paying too much for excessive or inappropriate insurance cover? Are your insurance and superannuation beneficiaries up to date, and is your will and estate planning strategy still appropriate? Being prepared for the unexpected can provide peace of mind and financial stability during challenging times.


Regularly reviewing your financial plan is not just a recommended practice; it is a necessity. It ensures that your financial strategy remains relevant and effective in the face of life changes, market dynamics, and evolving financial knowledge. By committing to periodic reviews, you can stay on track towards achieving your financial goals, optimize tax efficiency, maintain financial discipline, and prepare for the unexpected. Remember, a financial plan is a living document that should evolve with you, and regular reviews are the key to keeping it robust and aligned with your aspirations.

Next Steps

As you work towards financial independence and a prosperous retirement, it’s essential to have reliable experts guiding you. This is where Retirewise steps in.

Our team of certified financial advisors is committed to helping you make decisions that boost your retirement funds. Book a no-cost strategy session with our advisors today. We’ll discuss your objectives, review your financial situation, and present strategies to fast-track your journey to a fulfilling retirement.

Click below to arrange your strategy session with Retirewise Australia and make your retirement vision come true.

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