Let 2026 be the year you plan your future

For many, January offers a natural moment to reset. 

It’s an opportunity to step back and think clearly about how your finances can work for you, not just in the months ahead, but in the years to come. Understanding where you are now and what to do next can bring real reassurance, even amid life’s unpredictability.

A financial plan isn’t about ambitious resolutions that don’t make it past mid-January. It is about a handful of sensible decisions that, taken consistently over time, add up to meaningful results. 

Pension planning  

Recent years have brought a significant amount of change to the pensions landscape. These changes promote pension coverage and create opportunity to build additional tax-free retirement savings in a more robust regulatory environment.

From New Years Day, the Standard Fund Threshold (SFT) has increased by €200,000 to €2.2 million. Further annual increases are planned until the SFT reaches €2.8 million in 2029.

In addition to this, April 2026 brings an end to the executive/self-administered pension structure and impacted individuals will need to move to another structure if not already done so.

These changes, along with recent pension manual updates, should prompt reviews of existing pension structures to ensure consistency and co-ordination of your retirement planning with your retirement goals. 

Refine your investment strategy 

One of the key conclusions from Our Wealth in Ireland Report is that whilst there have been significant increases to wealth in Ireland, that is principally attributable to appreciation in property values, and we believe that there is scope for many people to invest more appropriately.

At one end, excess cash is retained in deposits which are typically yielding next to nothing. Whilst on the other extreme, money can be invested in concentrated portfolios, such as property or single stocks which can expose you to inappropriate risk.  As we have seen as recently as April 2025, single stock holdings can be subject to sudden and dramatic reductions in value.

Our approach encourages you to start by identifying your financial objectives and then building a portfolio to give you the best chance of achieving these goals. This may involve utilising liquid instruments to meet short-term needs and growth-oriented diversified portfolios for longer-term aspirations, provided you have sufficient time to manage market volatility. There is never a perfect time to start, however adopting a structured planning approach to articulate your financial objectives is the best first step. 

Investment undertaking tax 

The tax rate on Irish domiciled and equivalent offshore funds in addition to life assurance products has fallen from 41% to 38% with effect from 1st January 2026. 

While this is a modest yet meaningful change, it is hopefully the first step towards aligning Ireland’s complex fund exit tax regime with CGT principles by matching the rate (33%) and abolishing the eight-year deemed disposal rule. 

In a positive update following the announcement of October’s Budget, the Government’s Funds Sector 2030 Implementation Plan was published which signalled that a broader review is underway. In addition, the Government has committed to publishing a strategy early this year to simplify Ireland’s tax framework to support investment, in line with the EU’s Savings and Investments Union.

This would indicate that some of the complexity surrounding funds should be removed and the tax rate brought into alignment with CGT and DIRT rates. This is a welcome development. 

Ultimately however, it is important that these changes, along with any potential future developments, do not distract from your core investment objectives. For instance, while the signals are positive, any planned adjustments to better align your portfolio with your financial objectives should not be delayed due to anticipated changes, the implementation and timing of which is not certain. 

Estate planning

Through our financial planning process, our first step is to earmark and segregate the assets which are required to support your lifetime needs. Only then, and in conjunction with your own intentions, do we explore options for any excess wealth.  

As part of your New Year’s checklist, ensuring your will is up to date should be top of your agenda. The relevant lifetime thresholds are €400,000 from parent to child/ step-child, €40,000 from other family members and €20,000 from anyone else. 

If there is surplus wealth and lifetime gifting is a priority for you, the benefit of the annual small gift exemption (€3,000 per year to as many beneficiaries as you wish, without impacting their CAT threshold) should not be underestimated, particularly when done over a number of years.  

For larger amounts, how can this wealth grow in your children’s names to reduce their inheritance bill down the road? Lending is commonly used in this regard, while a family partnership can be an effective structure if maintaining control is important. 

We understand that estate planning can be complex, everyone’s situation is different, and a bespoke solution (such as a trust, or an insurance policy) may be appropriate. Our team of tax, pension and protection specialists can assist you in this regard.

For some families, developing a strategy around their philanthropic giving is an important issue for 2026. If you want to develop a long-term giving strategy, a charitable foundation can help you and your family achieve these goals. We can help in this regard through the Dawson Charitable Foundation Structure (DCFS).

Conclusion 

The new year offers an opportunity to take a look at your financial situation holistically. 

Through the Davy Financial Planning process, we gather all relevant information such as your income sources and assets and present this to you in an easy-to-understand and digestible format. Alongside this, we outline a number of measurable goals and action points to ensure that you stay on track to meet your financial goals, both throughout 2026 and beyond.  We understand that circumstances change over time, and our financial plans are designed to evolve as you do. 

Life is better with a plan. Let us help you on your financial planning journey.