5 Money Moves to Make Before 2025 Ends
Only days left in 2025. Here are the tax-saving, wealth-building moves you need to make before the year resets—with calculators to run your numbers.
The clock is ticking. While the UK tax year runs until April 5th, December 31st still matters for your finances. Here are five moves to make before 2025 ends.
1. Max Out Your Pension (The 62% Tax Trap Escape)
If you earn between £100,000 and £125,140, you're in the "tax trap"—losing £1 of personal allowance for every £2 earned above £100K. That's an effective 62% marginal tax rate.
The fix: Pension contributions reduce your taxable income.
| Scenario | Taxable Income | Effective Saving |
|---|---|---|
| £110K, no pension | £110,000 | - |
| £110K, £10K pension | £100,000 | £6,200 back in your pocket |
Even if you're not in the trap, every £1,000 into your pension costs you just £600-£800 depending on your tax band.
2025/26 Annual Allowance: £60,000 (or 100% of earnings if lower)
Calculate your take-home with pension adjustments →
2. Deploy Your Christmas Bonus Wisely
If you're receiving a Christmas bonus, don't let it sit in a current account earning nothing. Decide now:
| Option | Why It Works |
|---|---|
| Pension via salary sacrifice | 40-62% effective return (tax + NI savings) |
| Overpay mortgage | Guaranteed return at your mortgage rate |
| Clear credit card | 20%+ guaranteed return |
| ISA investment | Tax-free growth forever |
| Emergency fund | Sleep better at night |
The worst option? Spending it without a plan.
3. Review Your 2025 Financial Performance
Before setting 2026 goals, understand what happened this year:
- Net worth change - Did you gain or lose ground?
- Savings rate - What percentage of income did you save?
- Debt movement - Are you paying down or piling up?
- Investment returns - How did your portfolio perform?
Use our calculators to run the numbers:
<div style="margin: 1.5rem 0; padding: 1.5rem; background: linear-gradient(to right, #f0f9ff, #eff6ff); border: 2px solid #bfdbfe; border-radius: 0.75rem;"> <a href="/uk/calculators/fire" style="text-decoration: none; color: inherit; display: block;"> <div style="display: flex; align-items: flex-start; gap: 1rem;"> <span style="font-size: 2.5rem;">🔥</span> <div style="flex: 1;"> <h4 style="margin: 0 0 0.5rem 0; font-size: 1.125rem; font-weight: 600; color: #1f2937;"> FIRE Calculator → </h4> <p style="margin: 0; font-size: 0.875rem; color: #4b5563;"> Calculate your path to Financial Independence and Retire Early with savings projections </p> </div> </div> </a> </div>4. Set Up Your 2026 Automations
January is too late. Set these up now so they're ready from day one:
Increase pension contributions - Contact HR or adjust your portal settings. Even 1% more compounds massively over time.
Standing orders to savings - Pay yourself first, automatically, on payday.
Direct debits for investing - Regular investing beats market timing. Set up monthly contributions to your ISA.
Debt overpayments - Add a recurring overpayment to your mortgage or loan.
The best financial decision is one you only make once, then forget about.
5. Use The Holiday Quiet Period
Between Christmas and New Year, while everyone else is watching TV, you've got time to:
- Switch energy providers - Check comparison sites
- Review subscriptions - Cancel what you don't use
- Check your credit report - Free via Experian, Equifax, or ClearScore
- Research next year's ISA - Best rates and platforms
- Plan major purchases - Sales are best in January
One focused hour now can save hundreds in 2026.
The Before-2025-Ends Checklist
| Action | Time Needed | Potential Value |
|---|---|---|
| Pension contribution check | 10 mins | Thousands in tax relief |
| Bonus allocation decision | 15 mins | Compound growth |
| 2025 financial review | 30 mins | Clarity for planning |
| Set up 2026 automations | 20 mins | Behavioural success |
| Quiet period research | 1 hour | Hundreds saved |
Run Your Numbers
- UK Salary Calculator - See pension and tax impacts
- Investment Returns Calculator - Project your growth
- Debt Payoff Calculator - Plan your debt attack
- FIRE Calculator - Track financial independence
The Bottom Line
You don't need a complete financial overhaul. Five focused moves before midnight on December 31st can set you up for a significantly better 2026.
The best time to sort your finances was years ago. The second best time is the next 10 days.