How to prepare financially for life's biggest milestones, from marriage and children to retirement.
Marriage is a romantic milestone, but it's also one of the most significant financial events of your life. Combining finances — or deciding to keep them separate — requires open discussion about income, debts, savings goals, and spending habits. Many couples find that having this conversation before the wedding prevents misunderstandings later.
From a practical perspective, marriage opens up several financial planning opportunities. Married couples can transfer unused personal allowance to a spouse (Marriage Allowance), potentially saving up to £252 per year. Inheritance between spouses is exempt from inheritance tax, and unused IHT nil-rate bands can be transferred to a surviving spouse.
This is also a good time to review protection needs. If your partner depends on your income, life insurance and income protection become important. Similarly, updating your will to reflect your new marital status ensures your wishes are respected. A financial adviser can help you create a joint financial plan that works for both partners.
Having children transforms your financial priorities. The cost of raising a child to age 18 in the UK is estimated at over £150,000 — and that's before university. While you don't need to save this entire amount upfront, planning for the increased costs of childcare, larger housing, and future education expenses is essential.
Protection planning becomes critical when you have children. If something happened to you or your partner, would the surviving family be able to maintain their standard of living? Life insurance, income protection, and critical illness cover should all be reviewed and updated to reflect your family's needs.
Starting to save for your children's future early can make a huge difference thanks to compound growth. A Junior ISA allows up to £9,000 per year in tax-free savings or investments. Even small regular contributions can grow into a meaningful sum by the time your child turns 18. A financial adviser can help you balance saving for your children's future with your own retirement planning.
Changing careers — whether voluntarily or through redundancy — is one of the most financially disruptive events you can experience. If you're made redundant, the first £30,000 of your redundancy payment is tax-free, but amounts above this threshold are taxed as income. Understanding the tax treatment can help you maximise what you keep.
Before making a career change, build an emergency fund covering at least 3–6 months of essential expenses. If you're considering a period of retraining or starting your own business, you may need even more runway. A financial adviser can help you model different scenarios and determine whether your savings can support the transition.
Don't forget about your pension when changing jobs. Many people leave small pension pots with former employers and forget about them. Consolidating these into a single plan can reduce charges and make management easier. However, always check for valuable benefits (like guaranteed annuity rates) before transferring. A pension specialist can help you make the right decision.
Buying your first home is typically the largest financial commitment you'll ever make. Beyond saving for a deposit (usually 5–20% of the property value), you need to budget for stamp duty, solicitor fees, survey costs, and moving expenses. These additional costs typically add £5,000–£15,000 to the total.
If you're aged 18–39, a Lifetime ISA can help you save for your deposit with a 25% government bonus on up to £4,000 per year. The Help to Buy equity loan scheme has now closed, but shared ownership schemes and First Homes discounts may be available in your area.
Getting the right mortgage is crucial — even small differences in interest rates can cost thousands over the term of a mortgage. A financial adviser can help you coordinate your deposit strategy with mortgage planning, ensuring you buy at the right time and on the best terms. They can also refer you to specialist mortgage brokers through Nesto's matching service.
Retirement planning should ideally begin decades before you actually retire, but the final 5–10 years are when the most critical decisions are made. How and when you access your pension, whether you choose drawdown or an annuity, and how you structure your retirement income are decisions that can affect your financial comfort for 20–30 years.
Start by getting a clear picture of your retirement income. Add up your state pension entitlement (check at gov.uk/check-state-pension), all private and workplace pensions, savings and investments, and any other income sources. Then model your expected retirement expenses, remembering that some costs decrease (commuting, work clothes) while others increase (healthcare, leisure, heating).
The gap between your expected income and expenses is what your retirement plan needs to bridge. A financial adviser can model different scenarios — retiring at different ages, using different drawdown strategies, incorporating different levels of market performance — to help you make an informed decision about when and how to retire.
Receiving an inheritance can be both emotionally complex and financially significant. The temptation to spend it quickly or park it in a low-interest savings account should be resisted until you've had time to consider the best approach. There's no urgency to invest immediately — taking a few months to plan is perfectly sensible.
Inheritance tax may have been paid on the estate before you received your inheritance, but there may still be tax implications depending on how you invest or use the money. Capital gains tax, income tax on investment returns, and IHT on your own estate all need to be considered. A financial adviser can help you structure the inheritance tax-efficiently.
If the inheritance is large enough to significantly change your financial position, a comprehensive financial review is worthwhile. This ensures the inherited money is integrated into your overall financial plan rather than treated as a separate pot. An adviser can recommend the right balance between investing for growth, providing income, and maintaining accessibility.
Divorce is covered in detail in our dedicated divorce financial guide, but the key point bears repeating: getting independent financial advice during a divorce is one of the most valuable things you can do. The financial decisions made during separation affect your financial security for decades to come.
A financial adviser can help you understand the value of all marital assets (including pensions, which are often the second-largest asset after the home), model different settlement scenarios, and ensure you emerge from the divorce with a workable financial plan. Many solicitors recommend their clients get independent financial advice alongside legal counsel.
After the divorce is finalised, the focus shifts to rebuilding. Updating your will, pension nominations, insurance policies, and overall financial plan for your new circumstances is essential. A financial adviser can help you create a fresh start with a clear plan for the future.
The common thread through all of these life changes is complexity. Each involves multiple financial decisions that interact with each other, and the consequences of getting them wrong can be severe and long-lasting. While you can manage some basic financial planning on your own, the stakes increase significantly during major life transitions.
Professional financial advice is particularly valuable during times of change because an adviser brings objectivity, expertise, and a comprehensive perspective that's hard to achieve when you're emotionally invested in the outcome. They can see the whole picture when you might be focused on just one part.
Whatever life change you're facing, Nesto can match you with a qualified, FCA-regulated financial adviser who has experience with your specific situation. Get matched for free in under two minutes — no obligation, no pressure. The earlier you get advice, the more value it can add.
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