What do you need to know when going through a big life change?

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We look at the types of life events that can impact your finances – and explore a few things you can do to help manage your money when faced with big changes. 

Starting a new job

Check your tax band

If your salary or wage has changed, you might need to pay more (or less) income tax than you did previously. So it’s worth making sure you know which tax band and rates apply to you. You can learn more about income tax in our article.

If you find you’re a higher- or additional-rate taxpayer, it’s worth reading our tax relief article. This can help you understand if you’re eligible to claim pension tax relief back from the government.

Keep an eye on old pension plans

Your new employer will usually set a pension plan up for you. So if you’ve got older plans from previous jobs, make sure you know where they are. And be sure that all your pension providers – past and present – have up to date contact details for you. If you’re a Standard Life customer, you can update your details by logging into your online account (you can register if you haven’t already), or via our app. 

Getting married

Update your pension beneficiaries

Pension plans aren’t usually covered by a will. If you have the option to do so, you may want to name your spouse or partner as a ‘beneficiary’ on your pension plan (beneficiaries are the people or charities you want your pension savings to go to when you die). Although your provider isn’t legally bound by your wishes, they’ll take them into account. 

You can usually name beneficiaries online or via your provider’s app, or you may need to fill out a beneficiary nomination form.

Having children or expecting new additions to the family

See what benefits you can get

If you have or are expecting children, why not check what benefits you might be entitled to?

For example, Child Benefit can give a two-child family around £2,250 per year. But if you or your partner earn £60,000 or more yearly, the ‘High Income Child Benefit Tax Charge’ applies. This means you’ll need to pay some, or all, of the benefit back in the form of income tax. Do consider claiming Child Benefit anyway, as it can help you get credits towards your State Pension. From summer, you can report your child benefit payments and have the charge deducted from your pay automatically via your tax code, rather than needing to fill in a tax return. You can find out more on GOV.UK.

Consider ways of saving for, and supporting, children or grandchildren

If you’re a parent or guardian, you might be thinking about ways to help your child save for the future. MoneyHelper has information about your options, including things like Junior Individual Savings Accounts. You may be able to look into some of these options if you’re a grandparent, too. 

Some people like to give financial gifts to children and grandchildren to treat them, help them prepare for the future, or support them with their own big moments (like going to university). And did you know that financial gifts can also potentially lower future Inheritance Tax bills? But there are rules around gifting, so it’s worth getting familiar with them. 

Dealing with divorce or separation

Understand how your pension savings might be split

A pension plan can be one of the biggest assets involved in a divorce or the end of a civil partnership. There are a few different ways that your pension savings might be divided between you and your ex. You can read more in Divorce and your pension – what you need to know.

 If your relationship has come to an end, remember to review your pension beneficiaries and change them if they no longer line up with your wishes.

Review your power of attorney

‘Power of attorney’ is a legal document that lets someone make decisions – including financial ones – on your behalf. If your ex was appointed your ‘attorney’, this will usually end once you divorce or your civil partnership ends. But it’s worth reviewing the document to check there isn’t a clause in there that overrides this. If that’s the case, you could look into changing your power of attorney. Or if your ex is your attorney and you’ve separated (but haven’t divorced or ended a civil partnership), you might want to change it.

You can check MoneyHelper for details on how you could change your power of attorney, if that’s right for you. The process will depend on your circumstances and where you live in the UK.

Remember to tell your pension providers and other providers if changes are made to your power of attorney.

Retiring

Have a plan

When it comes to retirement, you should try to make your money last as long as you need it to. So one of our top tips is: make sure you have a plan. When planning, it’s important to understand things like how much money you’ll need, how you’ll take your pension savings, and how much you’ll get from the State Pension. Learn more about what to think about on MoneyHelper.

Dealing with death

Know what might happen to pension plans and other assets

Different taxes can apply to someone’s ‘estate’ (their money, property and possessions) after they die, including Inheritance Tax (IHT). MoneyHelper has useful information about the taxes that might apply after a person dies.

Pension plans aren’t currently counted as part of your ‘estate’, meaning they’re not subject to IHT – though this is set to change from 2027. If you’d like to know more about passing on a pension plan, you can take a look at How can you help your pension savings go to the right people? 

If you need to tell us that someone has died, you can write to us or fill out a simple online form. Our website has more information about the process and can also point you in the direction of bereavement support.
 

The information here is based on our understanding in April 2025 and shouldn’t be taken as financial advice.

A pension is an investment. Its value can go down as well as up and could be worth less than was paid in.

Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.

From April 2027, the government have announced their intention to include unused pension savings when calculating the value of estates and could be subject to inheritance tax. The full details of how this will work are still to be confirmed.